Why investing in the affordable property market is a good move

Why investing in the affordable property market is a good move

Affordable homes like this one built by MSP in Glenway Estate are priced at from R519 900.

There are many millions of people in South Africa who still need to take their first step onto the property ladder, and most will be looking at the affordable market priced between R350 000 and R650 000.

Multi Spectrum Property (MSP) director of sales and marketing, David Britz, says: “We know that savvy young professionals are the driving force behind the affordable housing market, with family buyers also playing a role. Our advice is that there is never a wrong time to invest in property if you buy from an accredited source. The affordable market offers you the chance to get into the property market and start growing the value of your investment.”

He says buyers need to make sure the development company they are buying from is registered with the National Home Builders Registration Council (NHBRC) and has actual showhouses that they can go and see to assess the quality of the workmanship and finishes.

“Make sure you are getting good value and good quality. Don’t buy a cheaper home from a questionable source – you are sure to have lots of problems down the line. The bottom line is – do your homework.”

MSP has many affordable developments on offer, mainly in Gauteng. For example, in Pretoria there are Kirkney Village, Orchards and Glenway Estate.

Located just 10km from Pretoria’s CBD, Kirkney Village and Kirkney Estate are becoming very popular suburbs in Pretoria West and are ideal for those who work in Pretoria CBD, Pretoria North, and even Soshanguve or Hartbeespoort Dam.

“Kirkney is growing rapidly with new extensions launching soon, and a private school opened this year. Freestanding individually walled homes with two bedrooms, one bathroom and a carport are available in Kirkney Estate from R689 900. Another option if you need time to get your finances in order is to rent a home in the estate for a year or two at R5 500 a month and buy there later,” says Britz.

Orchards is in Pretoria North and offers freestanding homes with individually walled gardens from only R679 900.

Glenway Estate is on the north eastern side of Pretoria in Mamelodi. Britz says this quiet, suburban environment is the ideal neighbourhood for couples, families and single people, with homes priced from R519 900.

“In all cases, to apply you will need three months’ proof of income, a clear copy of your ID and a completed expression of interest for the sales team to assess your affordability and submit your deal to the bank for a home loan. The prices given include VAT, transfer fees and bond registration fees.

“Property prices increase every year, which means that the sooner you buy, the sooner you can benefit from growth in the value of your investment. Our figures for Orchards, Kirkney Village and Glenway Estate show that a home bought in Orchards in 2014 for R395 000 is now worth R679 900 – a remarkable growth of 72.13%.

“A home bought in Kirkney Village in 2014 for R495 000 is now worth R619 900, which is 25.23% growth. In Glenway Estate a home bought for R476 000 just two years ago when this development started is now worth R579 900 – growth of 21.80%.”

MSP has many other developments available, which can be seen at www.msp.property.

“Do your homework and then invest in the housing market as soon as possible. If you are spending your hard-earned money paying rent, you are paying someone else’s bond,” says Britz.

“With buyer demand and investment potential in the affordable housing market expected to continue growing over the next few years, homes in this sector are certain to continue to offer investors impressive yields.”