While first time home buying activity remains under pressure across the whole country – the most activity in this segment is currently taking place in Gauteng.<\/p>\n
This is according to FNB’s latest Estate Agent survey, which found that Cape Town\u2019s first time buyer percentage\u00a0(first time buying expressed as a percentage of total home buying)\u00a0has averaged a low 8.02%, compared to Johannesburg\u2019s 28.62% and Tshwane\u2019s 24.3%.<\/p>\n
These first time buyer estimates in the two Gauteng metros for 2017 reflect a relatively affordable and price realistic Gauteng residential market, stated the report.<\/p>\n
Seeff\u2019s estate agents in Gauteng\u2019s major metros agreed, and found that the most active price range in first time buyer activity range from R700,000 to R1.5 million.<\/p>\n
They named the following areas as some of the most favourable suburbs that first time buyers should invest in.<\/p>\n
Northriding<\/strong><\/p>\n Although first time home buyers have many options when it comes to affordable property and entry level homes in Randburg, Northriding is currently the epicentre of first time home buyer activity and affordable middle-income development where one bedroom townhouses are priced from R700,000, said Seeff.<\/p>\n \u201cDevelopers have targeted Northriding for a number of reasons, including the availability of open land, its central and convenient location and the proximity of lifestyle amenities”, it said.<\/p>\n The estate agency also noticed a micro trend in Randburg\u2019s more established suburbs (inside the ring road) of smaller developers taking advantage of the lack of affordable opportunities for first time home buyers to create profitable conversions.<\/p>\n “With an average price range of R1.8 million to R2.3 million for freehold property in these suburbs, we now see a new phenomenon of smaller, three to four unit developments being created from single family homes in areas with flexible zoning which often incorporate the existing structure as one of the units or a part of several,” it said.<\/p>\n Midrand, Sunninghill, Paulshof & Barbeque Downs<\/strong><\/p>\n Most northern Johannesburg and Midrand suburbs offer great options for first time buyers, working either in Johannesburg, Sandton, Midrand or Pretoria as they offer easy access to the N1 and M1 highway interchanges, which makes travelling North or South easy.<\/p>\n \u201cOne or two bedroom apartments can be bought in Midrand from R750,000 to R800,000 and two or three bedroom apartments can be found in Sunninghill, Paulshof and lesser-known Barbeque Downs at prices under R1,250,000,” said Seeff.<\/p>\n Hurlyvale, Highway Gardens, Eastleigh and Illiondale in the Edenvale area<\/strong><\/p>\n Sectional title units in Greenstone Hill, Dowerglen and Edenglen are good first time buys priced between R650,000 and R1.4 million.<\/p>\n \u201cA couple of years ago suburbs like Marais Steyn Park in the Edenvale area offered great value as well as some areas in Bedfordview and the more established estates in Greenstone such as Thorn Valley, Bush Willow Park and Waterstone Park.<\/p>\n “However, although still good investments they are now beyond the reach of most first time buyers,\u201d Seeff said.<\/p>\n If price is not an issue, Seeff said that buyers looking to obtain their first property should look at investing anywhere in Modderfontein (Lakeside and Thorn Hill Estate) or Linbro Park as both these areas promise to grow immensely.<\/p>\n Alveda Park, Kibler Park & Mayfield Park<\/strong><\/p>\n The most popular price range in these suburbs for first time home buyers is between R650,000 \u2013 R950,000, but go up to R1.250 million.<\/p>\n \u201cA few years ago first time buyers looking in the R450,000 \u2013 R550,000 price range could still find an entry level home in Alveda park, but this is no longer the case,” said Seeff<\/p>\n “At present we are marketing three bedroom, two bathroom townhouses with granite tops for R825,000 in Kibler Park and small three bedroom homes in Alveda Park for R770,000 so there are good opportunities available.”<\/p>\n Winchester Hills, Ridgeway & Ormonde<\/strong><\/p>\n These areas offer opportunities in the R600,000 \u2013 R900,000 price range.<\/p>\n \u201cFirst time home buyers are especially interested in two bedroom townhouses that can be found in these suburbs at an affordable price.<\/p>\n “A few years ago Mulbarton and Mondeor were popular amongst first time buyers, but property prices here have escalated and these suburbs are generally no longer affordable for first time buyers.\u201d<\/p>\n Northern areas in Bosksburg, Ravenswood, Bardene & Everleigh<\/strong><\/p>\n These suburbs all offer lock up and go property ranging from R700,000 to R1.5 million and are located close to shopping centres and highways.<\/p>\n \u201cIn addition to these suburbs, first time buyers should also keep a close eye on property in Sunward Park, Parkrand and Rynfield in Benoni as there is a lot of new development taking place where there are no costs to the client except for bond costs, obviously making it very attractive to first time home buyers,\u201d said Seeff.<\/p>\n Areas close to the Centurion Gautrein Station<\/strong><\/p>\n First time home buyers in Centurion can find lock up and go units in newish complexes that are located close to important roads and the Gautrein stattion for between R700,000 – R1.5 million.<\/p>\n \u201cAreas like Celtisdal, Eco Park Estate, Heuwelsig Estate and Kosmosdal are also attractive options to first time home buyers and are more affordable than the older areas,” the property group said.<\/p>\n Mahube Valley, some areas in Doornpoort and Capital Park<\/strong><\/p>\n First time home buyers in this area are generally looking for homes with at least two bedrooms, one bathroom and a lock up garage.<\/p>\n \u201cProperty matching these criteria can be picked up for between R600,000 and R1.1 million in the above areas and it is sometimes even possible to find three bedrooms in the same price range. That is of course always a bonus,” said Seeff.<\/p>\n “While property in suburbs like Montana Park, Magalieskruin and some areas in Doornpoort were accessible to first time buyers not too long ago, this is generally not the case anymore.”<\/p>\n
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