With property prices subdued after a long period of slow growth, banks eager to offer finance, and interest rates at historic lows, there has seldom been a better time to get a foot on the property ladder.<\/p>\n
However, not all of us can afford the ‘bargains’ on offer in South Africa\u2019s property hotspots.<\/p>\n
Are there still opportunities available for those with a little less to spend?<\/p>\n
According to David Jacobs, Gauteng regional manager for the Rawson Property Group, the answer to that question is yes. He said the key lies in finding a currently undervalued suburb that is about to explode into the next ‘place to be’.<\/p>\n
Convenient location<\/strong><\/p>\n There\u2019s a reason \u201clocation, location, location\u201d is the mantra of real estate agents worldwide. In today\u2019s busy world, a shorter commute or easy access to amenities like schools, shops and restaurants can dramatically affect the appeal \u2013 and growth prospects \u2013 of a particular neighbourhood.<\/p>\n While properties close to well-established CBDs, school networks, and social hubs are likely to cost a pretty penny, Jacobs said satellite hubs are popping up all over the place where buyers can still find real bargains.<\/p>\n \u201cThe idea is to look for a place that may not have been convenient in the past, but thanks to new developments are suddenly more accessible or within much easier reach of desirable new amenities,\u201d he said.<\/p>\n Improvements to public transport facilities<\/strong><\/p>\n One of the more telling signs of a neighbourhood on the rise is improvements to its public transport facilities. Jacobs said new transport hubs, or the redevelopment of old ones, almost invariably breathes new life into a neighbourhood.<\/p>\n \u201cA huge number of South Africans rely on public transport to get around,\u201d he said. \u201cThat makes homes within easy reach of transport hubs \u2013 particularly those with clean, safe facilities \u2013 very attractive. Those same transport hubs also attract stores and other businesses whose staff may find it convenient to live in the area, driving up demand and property prices.\u201d<\/p>\n New construction<\/strong><\/p>\n A lot of new construction is another good indicator of a neighbourhood on the cusp of becoming a hotspot, said Jacobs.\u201cDevelopers never begin a new project without doing due diligence to be sure there is enough demand and growth prospects in the area to justify construction,\u201d he said.<\/p>\n \u201cIf one or more major developers are active in a neighbourhood, you can bet your bottom dollar that property prices there are on the rise.\u201d<\/p>\n Redevelopment of old suburbs<\/strong><\/p>\n It\u2019s not just new construction that indicates good growth prospects in a neighbourhood. Jacobs said the redevelopment of older buildings is also a good sign.<\/p>\n \u201cWe tend to see this in older, more run-down areas close to CBDs which have suffered from a bit of urban decay, and are now being reinvented as vibrant, modern, mixed-use neighbourhoods,\u201d he said.<\/p>\n \u201cYou\u2019ll often find old factories or warehouses being turned into trendy apartments, offices and boutique shops. Hip restaurants, cafes, and bakeries also make their way into the neighbourhood.\u201d<\/p>\n Other opportunities<\/strong><\/p>\n Sometimes, bargains can be found in well-established areas. Jacobs said price pressure on larger properties has led to subdivision in heritage areas, giving buyers a chance to get into sought-after suburbs more affordably and still benefit from their excellent growth.<\/p>\n \u201cOver 70% of our buyers at the moment are first-timers on the market,\u201d he said, \u201cbut not all of them are looking for entry-level properties. Thankfully, if you know what to look out for, there are opportunities in every price range.”<\/p>\n
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