Selected properties under R1.5-million are now 25 percent cheaper to buy than rent and offer a 10% return on investment, says global property expert, Toni Enderli.
Enderli says the lowest interest rates in 50 years combined with transfer duty relief, higher loan rate approvals and attractive entry-level offerings translate into a saving of up to 25 percent in selected entry-level properties where units start from under R700 000.
“This is the best time in decades to buy into the affordable housing market,” said Enderli, adding: “Tenants can now easily become owners with bond repayments at secure developments like Cape Town’s Ihlathi gated community starting from R5 500 compared to R7 500 a month to rent.”
Enderli, who heads up Realtor of Excellence and who studies property trends in SA and Europe, said 80 percent of all homes sold in 2020 were under R1.5-million. He said demand was so high that Ihlathi’s first phase (102 units) had sold out within months, with similar demand for the next 98 units available in phase two. Occupation is from June, 2021.
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.
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), is located on a green-belt in Parklands – one of SA’s fastest growing and best positioned suburbs.
IHS’s SA MD, Rob Wesselo, said demand in Parklands has soared because it is 20km from the CBD and close to all amenities like 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.”
*Article sourced from SA Property Insider*