Property remains one of the best long-term investments and if you can subsidise the cost through a rental income, even better, but when deciding on where to buy your investment property, you will need to consider a number of factors to ensure the best possible returns.
So says Cobus Odendaal, CEO of Lew Geffen Sotheby’s International Realty in Johannesburg and Randburg, adding that when home hunting, tenants and buyers tend to look for the neighbourhood that appeals most to them, however, when shopping for an investment, there are certain criteria to factor into the equation.
In Johannesburg, there has been a noticeable uptick in enquiries, sales activity, and show houses, with a number of potential buyers now more comfortable committing to paper, notes Rupert Finnemore, PGP Gauteng Regional Executive.
“With improved consumer confidence and general improvement in sentiment, we expect to see more buyers coming into the market - it is after all, still a buyers’ market with good deals to be had,” says Finnemore.
Johannesburg South, and in particular the suburbs of Oakdene, Winchester Hills and Mulbarton, is a popular choice for first-time home buyers. The South offers various reasonably priced housing options in the form of townhouse complexes, lifestyle estates, and new developments, says Nadia Aucamp, Broker/Manager for Remax All Stars.
Townhouse complexes in Winchester Hills provide purchasers seeking a lower cost option with good value for their funds with single bedroom units being offered from R 450 000 upwards.
“Oakdene offers several trendy lifestyle estates that provide options to first-time buyers who are looking for something more than just a traditional complex. Apartments in such lifestyle estates start from R550 000 for a single-bedroom apartment,” says Aucamp.
She says Mulbarton is home to the new hip and upmarket Thaba Eco Village. This development is appealing to young first-time buyers as it is centrally located, and the purchaser price includes transfer fees – which are often difficult for first-time buyers to raise. One-bedroom units are currently selling for just R900 000 in this new development.
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Alberton
Alberton tends to be slightly more expensive than Johannesburg South and first-time buyers looking for an affordable home tend to consider suburbs such as Albertsdal and Sky City, notes Aucamp.
“Meyersig and Leopard’s Rest are top choices for buyers who are looking for a property in Albertsdal and offer great value for money. Savvy buyers in this suburb will be able to find a three-bedroom cluster from R 1.4 million. There are furthermore various sectional title complexes with prices starting at R520 000 for smaller units.”
Sky City is a new affordable development and offers the convenience of the Sky City Mall. Units in this exciting new development start from just below R400 000 for a single-bedroom unit.
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Two of the most popular areas in Germiston with affordable housing options are Union and Elsiehof. New developments are being built and with The Reef Shopping Centre being within walking distance of most complexes it is a good option for first-time buyers. Base one-bedroom units in these suburbs are available from R380 000, says Aucamp.
“The lifestyle estate Stone Arch in Castleview is and has for a long time been a favourite amongst first-time buyers. The estate provides an array of options to choose from with buyers being spoilt for choice between anything from one-bedroom units to much larger freestanding units. Unit in the estate starts from R490 000.”
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Edenvale is home to a substantial number of new developments and lifestyle estates in the Greenstone and Greenstone Hill areas.
Developments in this area are in high demand amongst first-time buyers who often are seeking to take advantage of included extras such as large kitchen appliances and alike when purchasing a property. A buyer can expect to buy in the region of R550 000 for a single bedroom and R700 000 for a two-bedroom unit in a good complex in this area, says Aucamp.
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*Property24 Listings Data Disclaimer: The trends detailed in this article are based on Property24 listings, current at the time of publishing, and property transfer data supplied by Deeds offices, which typically take 3-4 months to reflect. Suburbs are listed according to Property24's geographical database. In some areas this will include both commercial and residential properties. The age demographic data of buyers, sellers and stable owners is determined over a six-month period. These Property Values should not be used as a substitute for independent professional advice and is subject to Property24.com Terms and Conditions.
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