Competition among the banks for new home loan business is making it easier for first-time buyers to obtain finance.
The current financial crisis in which South Africans find themselves in presents a unique opportunity for millennials and first-time buyers who might now be able to find their dream home at a price they can finally afford. As an additional incentive, at just 7%, interest rates are at the lowest level, this makes it easier for first-time buyers to afford the repayments on their home finance.
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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.
Here are some of Gauteng suburbs first-time buyers can invest in:
1. Protea Glen in Soweto from R400 000
Protea Glen is an excellent choice for its affordability and amenities and offers great value compared to suburbs in the Johannesburg South region.
Up to 40% of buyers in the Protea Glen area are first-time buyers according to Khosi Sibiya and Phindile Mphahlele, managing directors for Seeff Soweto. The popular price band is R400 000 to R700 000.
2. Weltevreden Park, Allens Nek and Olivedale in Randburg from R500 000
Randburg offers a vast range of affordable suburbs for first-time buyers according to Duane Butler, general manager for Seeff Randburg.
Areas such as Weltevreden Park, Allens Nek and Olivedale are currently a top choice for first-time buyers as they offer access to great schools and amenities. You also have easy access to the highway and several main arterials. Prices start from just R500 000 for sectional title properties making it attractive for first-time buyers.
3. Glen Austin and Noordwyk in Midrand from R400 000
Midrand offers great value for those working in Johannesburg, Sandton, Midrand or Pretoria as it offers easy access to the N1 and M1 highway interchanges.
Charles Vining, MD for Seeff Sandton and Midrand says that with prices from just R400 000 in Glen Austin it is no surprise that young buyers comprise about 40% of the market. Noordwyk is another popular choice offering townhouses and houses from just R700 000 to R800 000.
4. Paulshof, Douglasdale and Lonehill from R600 000
Due to the fact that most buyers are now working from home, they are looking at areas like Paulshof, which offers them the same size properties for much less than for instance in the Sandton area where they previously use to work at their offices, explains Abby Goodford, Broker/Owner of RE/MAX One Hundred.
"We have many young professionals wanting to move into more affluent areas and are drawn to well-managed lifestyle complexes with easy access to the highway and main routes, great choice of shopping centers and restaurants. The Northern suburbs are often viewed as aspirational and seen to hold value.”
Vining says further that there is a broad choice of suburbs where first-time buyers can buy in right now. Apartments and small townhouses in the R600 000 to R800 000 price band in areas such as Paulshof, Douglasdale and Lonehill are popular.
Townhouses in the R700 000 to R900 000 range are popular in suburbs such as Buccleuch, Douglasdale, Sunninghill, Broadacres and Paulshof. Sectional title property is also drawing interest from buy-to-let investors given the high demand for rental accommodation near the Sandton CBD.
5. Fourways from R600 000
Goodford says buyers in Fourways area are mainly young professionals, both single and professional couples. "Many buyers in our market are also looking at paying a monthly bond instalment plus rates or levies that will cost them less than paying a monthly rental they normally would pay."
“There is a mixed bag of sellers. Some sellers are desperate owing to financials reasons, but a lot are also emigrating and there are a lot of older people who are downscaling. Some sellers are investors that cannot obtain the rental income that the market previously offered and would rather take their money and invest it elsewhere.”
Here you can find properties anywhere between R600 000 to R750 000, a popular price band among first time buyers who are looking for one-bedroom apartments, and R800 000 to R900 for first-time buyers who are looking for two-bedroom apartments.
6. Mondeor and Ormonde from R600 000
Mondeor and Ormonde are two top class areas for first-time buyers given that they offer very accessible pricing. Both suburbs offer affordable choices whether you are looking to buy or to rent, close to all routes leading to the city centre.
Kerrie Oates, manager for Seeff Glenanda says these suburbs are well established and part of the popular southern suburbs of Johannesburg, highly sought-after for the family houses and great family lifestyle. The areas offer excellent access to the main N1 that encircles Johannesburg with easy access to various industrial and business areas for work purposes.
Ormondo offers a choice of sectional title, freehold and estate living, and prices range from just R600 000 to R1.5 million. The suburb is close to all amenities, schools and more. Mondeor is well-established and offers various schools, churches, mosques, a police station, shopping centres and medical centres. Properties are very accessibly priced, ranging from R800 000 to R3 million.
7. Boksburg, Benoni and Germiston on the East Rand from R450 000
The low to middle-class neighbourhoods on the East such as Boksburg, Benoni and Germiston are popular for their affordability and great lifestyle says Terry Swart, national general manager for Seeff.
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These areas are particularly well suited to first-time buyers and those looking for affordable sectional title properties and homes. There is a vast choice of properties, from basic entry-level apartments to luxury family houses with large gardens and swimming pools.
Buyers are spoilt for choice in terms of areas as most offer excellent access to childcare, schools and many amenities including medical, shopping, sport and recreation, places of worship, government services and excellent transport networks. They are also well-positioned for work and small business opportunities given the substantial economic opportunities on the East Rand including many commercial and industrial areas and SA’s largest international airport.
These areas offer excellent price points with sectional title property from around R450 000 and houses from R800 000.
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