Three affordable Winelands developments for investors

Three affordable Winelands developments for investors

Artist’s impression of La Vie Estate in Paarl where flats are priced from R510 000.

According to Lightstone figures from the fourth quarter of 2018, the market continues to shift beyond the reach of entry-level buyers and in favour of middle-income buyers.

Just 25.6% of bonds were priced between R400 000 and R800,000; 24.9% of home transfers were priced between R800 000 and R1.5 million; 15% were between R1.5m and R3m; and transactions over R3m accounted for 5% of all bond registrations in the fourth quarter.

“For investors, the safer price brackets are those in which the highest number of transactions are recorded, as this increases the odds that the property will sell fast if the need arises. The more expensive the property, the longer owners can expect to have homes on the market when selling,” says Adrian Goslett, regional director and chief executive of RE/MAX of Southern Africa.

“For investors who would prefer the security of having a faster turnover time, I would advise buying properties around the R1.5m price point.”

However, if you find yourself in the Western Cape, properties such as these are often difficult to find – especially if you are hoping to buy in sought-after suburbs. Aware of the increasing demand for affordable housing within desirable suburbs, developers have taken up various projects in Paarl and Stellenbosch to deliver to this market.

The three new developments are listed with RE/MAX Oaktree, all of which are designed for the affordable housing market and Goslett believes offer great investment potential for buyers.

The La Vie Estate in Paarl is in a new growth node in Paarl, which meets the needs of an area experiencing accommodation shortages. The first three blocks are complete and various tenants and first home buyers have already occupied the units, with uninterrupted mountain views, dedicated parking facilities, and access control with 24-hour manned security. There are 269 flats available, priced from R510 000. Sizes range between 24m² and 42m².

The 17 on Cluver building consists of 26 secure student units within the Green Route of Stellenbosch University and is patrolled by campus security. Features include communal areas with an equipped kitchen, a furnished lounge, a dining room and an outdoor pool and braai area. Each unit is fitted with a three-quarter bed, a microwave oven, a bar fridge, and a study unit with a chair. These 19m² apartments are for sale from R1.58m.

Homes at Mountain Crest Private Estate are in a top-performing property asset class – under R2m – in a desirable investment location with easy access to the N1. With 24-hour security, each of the 105 homes on offer has mountain views, a garage and additional parking area. Levies are around R1 200 a month and rates around R600. The two or three-bedroom homes range in size from 127.5 m2 and 165.3m2 and are ideal for smaller families.