Neighbourhood 24 FEBRUARY 2019
PROPERTY & LIFESTYLE
Hot property Despite challenging times, the real estate market in certain areas in Pretoria is alive and thriving, page 2
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PROPERTY FOCUS: TOP SUBURBS
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Neighbourhood
Property focus
Best in show Property experts share their views on what they regard as Pretoria’s best performing suburbs in terms of popularity, demand, value for money and returns WORDS: BETSIE LOOCK-VAN DER MERWE IMAGES: RENE WALKER, ZUNIQUE LOTTERING & SHUTTERSTOCK
FAERIE GLEN
WATERKLOOF
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ost property specialists are optimistic that property prices and sales in South Africa will recover after the general elections in May this year. The current suggestion is that real-estate buyers who take the plunge now and buy while prices are still suppressed will be rewarded with growth in value in the second half of the year. That gives a possible answer to the question of when to buy. To answer the question of where to buy in Pretoria, several property experts share their views and experience with readers.
Pretoria East In the popular eastern suburbs of the Jacaranda City, the leafy suburb of Faerie Glen where – according to Pam Golding Properties’ Pretoria regional executive Retha Schutte – 66% of sales are sectional title, is seen as being affordable and offering value for money. “Average prices start from R1,23m to R2m.” Seeff’s MD in Pretoria East Gerhard van der Linde concurs and points out that “even though Faerie Glen is close PUBLISHED BY TIMES MEDIA PROPERTY PUBLISHING 1st Floor, Block H, Sable Square cnr Bosmansdam and Ratanga roads Milnerton, Cape Town
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to the focus development Menlyn Maine, it’s still a peaceful and quiet neighbourhood. The suburb offers affordable property options that are not easily attainable in adjacent suburbs”. Both Schutte and Van der Linde list Moreleta Park as a popular affordable option as well. Says Van der Linde, “The suburb offers a lot to first-time buyers and is considered a great stepping stone for newcomers who wish to establish themselves as real-estate owners.” According to Schutte, 64% of sales in this neighbourhood, seen as one of Pretoria’s largest, are sectional title. “Average prices start from R1,2m to R2,18m with affordability being the driver for demand. The oversupply of property stock on the market is driving prices down.”
Aspirational Schutte describes the suburbs below as not only tops but as more favourable and aspirational than other Pretoria East suburbs. First on her list is Waterkloof Ridge in Pretoria’s Old East (90% full title sales) with an average price starting
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24 FEBRUARY 2019
Neighbourhood
PROPERTY NEWS
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TRENDING Mooikloof Equestrian Estate, The Hills (an eco-estate with wildlife), and other suburbs in Pretoria East that offer farm-style living within reach of the town centre, are proving to be popular options in this region.
NEW HUB Both Menlo Park and Brooklyn in the Old East are highly sought-after because of their location and proximity to the new Menlyn Hub and the University of Pretoria.
STARTING UP IN THE EAST The relatively new suburb of Equestria appeals to start-up families and mostly comprises lock-up-and-go security estates and a location offering easy access to highways, main roads and comprehensive amenities. SILVER LAKES
from R3,925mn to R20m. “This is a well-located area with huge demand that exceeds available supply.” Silver Lakes on the far eastern outskirts of the city (98% full title sales) currently reaches an average price of between R2,95m and R12m. “It offers a secure lifestyle with golf facilities, a private school and great value for money.” Back to Waterkloof (97% full title sales), one of the oldest and most prestigious suburbs in Pretoria, Schutte says with average prices starting from R3,925m to R45m, this is an aspirational area and well situated. Demand exceeds supply in this suburb.”
Centurion According to Steve van Wyk, Seeff’s MD in Centurion, the following are the suburbs to consider when buying property in the greater Centurion area. Midstream Estate is favourably located on a stretch of beautiful countryside between Centurion and Midrand and is made up of several stylish upmarket
residential estates suiting the needs of a variety of property owners, from first-time buyers to well-established high-income residents and retirees. “The estate has everything (schools, churches, shops, and a hospital, among others) and offers property in a wide price range. The security factor is a major drawcard.” He also mentions the affluent Centurion Golf Estate in the heart of Centurion. “This is a well-established estate – ranked as one of the top-five most secure estates in the country – and is close to all amenities.” Residents still preferring a traditional, spacious property could consider a freehold property or plot in Wierda Park in the west of Centurion, says Van Wyk. “It’s an established suburb close to many good schools and it offers good returns.” Equally so does Lyttelton in central Centurion, while Rooihuiskraal to the southwest is a popular established middle-income suburb central to all amenities. Highveld in the busy core of Centurion is a newer development, located centrally and offering good returns.
MIDSTREAM
“This neighbourhood boasts low crime rates, access to highways, good schools and amenities, and is predicted to become even more sought-after in future,” says Van Wyk.
Pretoria North East This area northeast of the Magaliesberg mountain range alongside the wellknown Sefako Magkato (previously Zambesi Drive) still offers wellpriced, established properties with lush gardens and a lovely climate. According to Adrian Goslett, regional director and CEO, RE/MAX of Southern Africa, “Sinoville has experienced steady growth over the last year, climbing from a median price of R1,45m for a freehold property in 2017 to R1,599m for a freehold property in 2018. Interestingly, Lightstone’s figures reflect a drop in the total number of registrations in this area from 169 recorded transactions in 2017 to 126 recorded transactions in 2018.”
According to our own statistics for the year, the highest number of registered sales completed in 2018 were recorded in and around the suburbs of Constantia Park in Pretoria East, Sinoville, Faerie Glen, Mooikloof, and Arcadia ADRIAN GOSLETT, REGIONAL DIRECTOR AND CEO, RE/MAX OF SOUTHERN AFRICA
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PROPERTY NEWS
24 FEBRUARY 2019
Neighbourhood
Bond basics
For first-time buyers – or those who have been out of the property market for some time – here are the back-to-basics steps to securing a home loan WORDS: ANNE SCHAUFFER
IMAGE: SHUTTERSTOCK
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hen you feel you’re in a position to afford to buy a home and need a home loan, the smartest move you can make is become prequalified – in other words, before you head out to find your new home, find out what size loan you qualify for. It’s very disappointing to find your perfect home and not qualify for that size loan.
How to get prequalified
The wonderful thing today are the online tools available to assess whether you’re eligible for a home loan and what size. Look for instance at ooba’s home loan affordability calculators on its website. It’s important that you put in accurate figures to get an accurate outcome – this tool is an indicator, not a guarantee, and you’ll have to supply all the required documentation – salary slips and so on – to secure your loan when the time comes to make a formal application. If you don’t want to be prequalified online but prefer to go into your bank’s home loan department, of course you can do that and they’ll explain everything to you, including the additional fees which you’ll have to pay, like transfer costs.
Rhys Dyer of bond originators ooba explains the criteria which banks use to award home loans. “Banks assess affordability and credit profile first when it comes to bond applications. Affordability is now based on net disposable income, which for many means access to less credit. A good credit score is all-important. Banks also look at your current financial situation, whether or not it might change in the next few years, as well as the stability of your income.”
A good credit score
You need a good credit score to be approved for a home loan. Dyer says, “Every year, ask for your credit score from a credit bureau, or use an online tool like ooba’s bond indicator so you always know what your status is when it comes to assessing your financial risk to a potential lender. Your credit score will be determined by issues like how well you manage your debt, how many accounts you have, and how long you’ve had them for, among others.
Is it possible to get a 100% home loan?
It is, but once again, it’ll be about affordability – it’ll depend on whether you can afford the monthly repayments on the amount for which
you’re applying. For those who don’t have a deposit, but have a good credit rating, it’s definitely worth applying.
The interest rate
It’s important to negotiate the interest that the bank will charge you for the money you’re borrowing – if you work through a bond originator, they will, for no charge, take your home loan application, and present it to a number of different banks. That way, if you’re granted a loan by a few of them, you’ll be able to choose the best deal for you. Is it better to opt for a fixed or variable interest rate? According to Dyer, “If you’re working to a tight monthly budget and can afford to, it might be wise to fix your interest rate even though they’re usually higher than variable rates. Before buying a property, “stress test your budget to ensure you’ll still be able to meet your bond repayments if rates start to rise”.
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Going, going, gone! BidX1 makes it possible for everyone to buy basically any type of property by means of an online auction in real time – from your cellphone IMAGE: SUPPLIED
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e spoke to BidX1 South Africa’s CEO: auctions and sales MC du Toit to shed some light on online auctions. Q: What is the difference between an online auction and a traditional auction? A: Our auctions take place fully online and in real time. Every bid placed during the sale of a property is logged and displayed in real time and this record, along with the sale price, can be viewed publicly on our website both historically and at the time of the auction. So you can say that fundamentally the lead-up to the auction is the same, but in our case the transactions happen online and the process is more transparent and fair. Q: What makes the BidX1 online model so successful? A: The BidX1 platform is fully transparent, creating trust for both buyers and sellers. All bidders are required to register and complete an identification process and place a deposit prior to participating in our auctions. Legal documents are
available for inspection on our online portal prior to auction. With every bid being displayed in real time, along with the final sale price, buyers are assured that they are competing against other genuine parties who have completed the same process as themselves. They can see competing bids as they come in and accurately assess demand for the property. And they know that whoever is the successful buyer will instantly enter a legally binding contract once the lot is sold as BidX1 exchanges contracts on their behalf immediately. Q: What about convenience? A: Our auctions allow everyone to bid from anywhere in the world, and yet you still have direct contact and a wealth of information from the auctioneer. Our platform is designed to assist buyers and sellers from the start of the process right through to the conclusion of the sale. Over 40% of our auction transactions are being conducted via a handheld device. Q: Don’t you lose the personal touch with online auctions? A: No, because although advanced technology has allowed us to enhance
the experience of buying and selling property, it has not changed the fundamental role and personal involvement, advice and guidance of the property professional. Apart from access to us and detailed information on properties for sale prior to auction, buyers for the first time have full access to the auctioneer during the auction process. Buyers can contact us while bidding if they need any assistance or have questions. Q: What kind of properties will you be auctioning in South Africa? A: BidX1 South Africa will offer a full spectrum of properties from residential to commercial, retail, industrial and agricultural property and investment portfolios. Q: Do these auctions achieve realistic prices? A: The online auction market is seeing increasing levels of interest from buyers and sellers alike and has become a respected method of transacting, achieving market-related prices, and free of any suspensive conditions. Going forward we anticipate this trend to increase.
Q: Any advice to those buying online for the first time? A: Firstly, buyers must engage with the auctioneer and conduct a full due diligence prior to the day of the auction. We have property experts who will be able to answer any questions buyers may have, ranging from price up to the most technical aspects of any property. Secondly, buyers must register in time to make sure they have all the necessary documentation in place before the auction. And finally, we have a support team that will take all bidders through the bidding process with examples of what will happen when bidding starts, so buyers will be able to run through a bidding simulation before the auction. Q: How do you register to bid? A: Whether you want to register to bid or sell your property, go to bit.ly/2Dztajv and follow the easy step-by-step process. Q: When is your first auction? A: Our first multiple auction is on 10 April this year and the catalogue of properties to be auctioned will be launched in early March.
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AGENTS ARE EXPERT PROBLEM SOLVERS
Negotiating is a tricky business and contracts can be problematic. Are you familiar with legalities or how to ensure that a contract protects you? Registered estate agents are licensed professionals with experience of moving transactions forward smoothly.
Another good reason why you should use an estate agent
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