That's the news from Kim Pascoe, principal of the local Chas Everitt International branch, who notes that the spate of activity is due to the fact that while banks are still granting 100% bonds for homes costing R300k and less, interest rates have gone down, making the repayments more affordable.
"Most of the homes in Kamagugu fall into this category and buyers – especially young couples with steady jobs – are making the most of the situation in anticipation of property values going up when the property market turns.
"There is a growing appreciation of property as an investment and in many cases these young people are now also finding that the repayment on a home of their own would be less than paying rent to someone else."
Mike Judd, manager for RE/MAX Nelspruit, says Kamagugu is appealing to a cross-section of buyers. "We get the odd investor who buys there and then rents the property to the locals. Black people of all ages and especially government employees comprise the bulk of the buyers in Kamagugu and they are generally buying nice houses with swimming pools and double garages."
Meanwhile, Nelspruit's retirement property sector is also thriving, says Pascoe. "Demand for retirement accommodation in Nelspruit has spiked in recent years with a large number of retirees from large cities in Gauteng and elsewhere seeking a more relaxed lifestyle in a pleasant climate.
However, Judd says retirees are generally still few and far between because of the high prices of property in Nelspruit. "We occasionally see a few retirees from Joburg and they prefer semi-detached properties with gardens in secure complexes that hover around the R1m mark."
He says flats between R500k and R600k are generally selling well in Nelspruit. "The affordability factor is still a big issue, as is security. People will only buy a townhouse if it is in a very secure complex. Houses in the R1m range are generally in a good condition and also quite popular, but these are unfortunately quite rare." - Eugene Brink
For more information contact Kim Pascoe on 013 750 0284 or click here to visit the website.
Readers' Comments
Have a comment about this article? Email us now..
Looking for a new home?
To find a property to buy, visit Find a Property and view listings of properties in all areas. Check out Property Reports and get an affordable online report on actual sold prices of properties in your area.
Property News
Click here for more property news articles.
Need a blog?
Start your own blog with a free blog from 24.com.
Print
