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Small & affordable homes for under R1 million

Posted  March 5, 2018

Affordable properties in South Africa’s leading cities are a better investment than more expensive homes.  

If you are in the market for your first or new home, it’s worth keeping your investment affordable and your property small. In the current South African market, smaller, affordable properties - especially townhouses and apartment blocks - tend to appreciate faster. This means that if you sell in a few years’ time, you’ll get a greater return than if you had bought a bigger, free-standing property.

The statistics bear this out. According to the FNB Estate Agent Survey, homes with an average price of R583 858 grew in value from 7.1% year on year in the third quarter of 2017 to 7.6% year on year in the fourth quarter. Over the same period, homes with an average price of R2.355 million decreased from 5.6% to 5.1% growth year on year.

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The reason that these more affordable properties tend to hold their value better is that there are more people entering the market and re-purchasing in the market at this level. In addition, smaller homes are generally more popular because they are easier – and cheaper – to maintain. Security it another benefit, as these homes are often located in complexes.

Smaller homes are generally more popular because they are easier – and cheaper – to maintain.

As an added bonus, buyers pay no transfer duty on homes under R900 000, so if you can get an offer accepted on a property beneath that threshold, you’ll save yourself a whole lot of money.

For all these reasons, small, affordable homes in complexes are the way to go. We took a look at what a buyer can get for under R1 million in apartment and townhouse complexes in South Africa’s leading metropolises. We looked at properties with a minimum of two bedrooms so that they have the flexibility to cater to a buyer’s changing needs.

Johannesburg – R870 000 This two-bedroom home nestled in central Corlett Gardens is tiled throughout, with granite tops in the kitchen and a small private garden. As an added bonus, this complex is pet friendly.

https://www.property24.com/for-sale/corlett-gardens/johannesburg/gauteng/5272/106020097

Cape Town – R895 000 This two-bedroom, one-bathroom, first-floor apartment in Kenilworth comes with two parking bays, a complex pool and 24-hour security. It’s five minutes from Kenilworth Centre, and close to the motorway.

https://www.property24.com/for-sale/kenilworth/cape-town/western-cape/8669/106021412

Durban – R950 000 This three-bedroom townhouse in Clare Estate in Durban has 24-hour security and is close to all transport and amenities. It has a large balcony and access to a separate laundry area.

https://www.property24.com/for-sale/clare-estate/durban/kwazulu-natal/6185/106054917

Pietermaritzburg – R960 000 This beautifully styled, three-bedroom, ground-floor apartment is situated in a landmark building. It’s close to town for a busy professional seeking a lock-up-and-go lifestyle, surrounded by gorgeous gardens.

 

https://www.property24.com/for-sale/wembley/pietermaritzburg/kwazulu-natal/5555/104833993

Bloemfontein – R657 000 This neat townhouse in Langenhovenpark already has a tenant, so it makes a great investment property. It is situated in a safe complex and has two bedrooms, an open-plan living area, a neat kitchen with a scullery, and a small private garden.

https://www.property24.com/for-sale/langenhovenpark/bloemfontein/free-state/9735/106017623

Port Elizabeth – R699 000 This lovely, double-storey face brick unit in a well maintained complex is walking distance from primary schools and shops. It has three-bedrooms with built in cupboards, a spacious open-plan lounge and a garden off the kitchen.

https://www.property24.com/for-sale/bluewater-bay/port-elizabeth/eastern-cape/7202/106052634

East London – R995 000 This newly renovated two-bedroom, two-bathroom apartment in Beacon Bay overlooks the valley from a private balcony. The secure Triple Point Moya Estate has a communal swimming pool, laundry and playground.

https://www.property24.com/for-sale/beacon-bay/east-london/eastern-cape/6628/106047002

So there you have it - a selection of smaller, affordable properties in complexes. Homes like these will likely appreciate in value faster than bigger, free-standing properties.

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