Selected properties under R1.5-million are now significantly more affordable to buy than rent, offering first-time homeowners an unprecedented opportunity to get into the property market, says global property expert, Toni Enderli.
Enderli says the lowest interest rates in 50 years combined with transfer duty relief, higher loan rate approval and attractive entry-level offerings -- such as Cape Town’s Ihlathi gated community where units start from R699 999 -- have prompted soaring levels of buoyancy in this price bracket.
“This is the best time in decades to buy into the affordable housing market,” said Enderli, adding: “Buying or investing in this sector is now far more affordable than renting. For example, bond repayments on Ihlathi units start from about R5 500 compared to R7 500 a month to rent – a saving of over 30 percent.”
Enderli, who heads up Realtor of Excellence, and who is based between Switzerland and SA, said 80 percent of all properties sold in 2020 were under R1.5-million, adding that this pricing range currently offered up to 10% annual growth.
Enderli explained that demand was so high that Ihlathi’s first phase (102 units) had sold out within months of launching last year, with similar demand expected for the next 98 units now available in phase two. Occupation is from June this year.
One-bedroom units in this Green Building council-certified, eco-friendly development start at R699 999; two bedrooms from R799 999 and three-bedroom duplexes from R1 249 999, he said.
Enderli added that Ihlathi was the ninth entry-level gated community in Parklands by International Housing Solutions (IHS), a global private equity fund focussed on affordable housing. Ihlathi (forest or green space), is located on a green-belt in Parklands – one of the fastest growing and best positioned Cape Town suburbs.
IHS’s SA MD, Rob Wesselo, said demand in Parklands is at an all-time high because it is only 20km from the CBD with easy access to amenities such as schools, a new international university, malls, MyCiti bus routes, work opportunities and an extensive coastline.“
Additionally, Ihlathi offers attractive ’green’ features including solar PV geysers, up to 20% saving on energy and water, fibre ready internet and 24hr security. It’s one of the most attractive properties in the country right now which is why it’s selling so fast.”