Step 1 : Why buy now ? kids ’ education , or overseas family vacation , or buy more real estate with sizeable deposits and create even more income , without negatively affecting their current cash flow . You might be thinking this sounds like a pipe-dream , but it is possible and can be a reality .
“ If you don ’ t change direction , you are going to end up where you are headed ”.
Property has always been one of the safest investments and remains a market with resilience . People will always need a place to live and if they can ’ t buy , they have to rent – which offers some measure of security in terms of a property investment holding steady in volatile times . Real estate investing is not gambling , it ’ s not a quick buck or a scheme to make money overnight . It ’ s a process and it takes time with certain fundamentals being non-negotiable like cash flow , positive cash flow . Cash flow is like oxygen . If you have it , you don ’ t think about it too much . However , cut the supply and all of a sudden it becomes the only thing that occupies your mind .
Here ’ s some wisdom from the Late Jim Rohn :
“ Don ’ t let your learning lead to knowledge . Let your learning lead to action .”
Five years from now when people ask you how you recovered so well since 2020 , it will be what you actually did that will determine where you are , not what you intended to do . Buy cash flow positive properties now . With the low interest rate , it ’ s the perfect time to start investing , if you haven ’ t already . If you ’ re unsure of where to start , contact me , I have many years ’ experience and specialize in Investment Opportunities .
You can also check out an example of a cash flow positive property : The Base Apartments . Click the link more information , it could be a lucrative click for your future .
Sources Ryan van Heerden , Ryan ’ s Realty
Here ’ s my best advice , having survived ( only just ) the Global Financial Crisis of 2009 , which now seems more like a stroll in the park compared to the 2020 Covid chaos . Buy cash flow positive real estate that has the potential for capital growth , and you can survive just about any downturn or future crisis .
FIRST-TIME INVESTOR 9
Step 3: Finding your Property & Location
Step 3: Finding your Property & Location
Millennial Property Buyers
Piling into Top Gauteng
Suburbs
Millennial buyers are piling into the property market
despite the belief that they would rather rent. This is no
surprise, says Samuel Seeff, chairman of the Seeff Property
Group, we are in the “perfect storm” for young home buyers
who are using the benefits of buying right now and taking
the property market by storm.
Seeff’s first-home buyer areas, especially in the main urban
areas, all report a surge in buying activity over the last three
months, largely driven by the under-35 years olds.
The transfer duty saving on properties below R1 million and
favourable mortgage lending conditions, with some banks
still granting full loans, combined with the low interest rate
means that Millennial buyers can get into a property or
suburb, which they might not have been able to afford a
year ago, says Seeff.
Tiaan Pretorius, a property consultant with Seeff Centurion
says that any step onto the property ladder is a step in the
right direction. Your first property may become part of your
future property portfolio or can be sold for a deposit on
your next property.
The great news for starter buyers is that South Africa’s
powerhouse, Gauteng, remains the top choice for affordable
properties with the R450 000 to R1.2 million range picking
up the bulk of activity currently. Most areas offer access to
good transport networks and a host of amenities including
access to shops, banks, schools and more.
The most popular areas include:
Protea Glen in Soweto from R400 000
Up to 40% of buyers in the Protea Glen area are Millennials
according to Khosi Sibiya and Phindile Mphahlele,
managing directors for Seeff Soweto. The popular price
band is R400
000 to R700
000 for first-time buyers.
Protea Glen is an excellent choice for its affordability and
amenities and offers great value compared to suburbs in
the Johannesburg South region.
Weltevreden Park, Allens Nek and Olivedale
in Randburg from R500 000
Randburg offers a vast range of affordable suburbs
according to Duane Butler, Seeff licensee for the area. Areas
such as Weltevreden Park, Allens Nek and Olivedale are
currently a top choice for Millennial buyers as they offer
access to great schools and amenities. You also have easy
access to the highway and several main arterials. Prices start
from just R500 000 for sectional title properties making it
attractive for first-time buyers.
Glen Austin and Noordwyk in Midrand from R400 000
Midrand offers great value for those working in
16 FIRST-TIME INVESTOR
Johannesburg, Sandton, Midrand or Pretoria as it offers
easy access to the N1 and M1 highway interchanges. With
prices from just R400 000 in Glen Austin it is no surprise that
Millennials comprise about 40% of the market. Noordwyk
is another popular choice offering townhouses and houses
from just R700 000 to R800 000.
Paulshof, Douglasdale and Lonehill in Sandton from
R600 000-R800 000
Charles Vining, MD at Seeff Sandton says that apartments
are especially ideal for first time buyers and there is a
broad choice of suburbs where they can buy in right
now. Apartments and small townhouses in the R600 000
to R800
000 price band in areas such as Paulshof,
Douglasdale and Lonehill are popular. Townhouses in the
R700 000 to R900 000 range are popular in suburbs such
as Buccleuch, Douglasdale, Sunninghill, Broadacres and
Paulshof. Sectional title property is also drawing interest
from buy-to-let investors given the high demand for rental
accommodation near the Sandton CBD.
Centurion West, The Reeds and Die Hoewes in Centurion
from R500 000
Tiaan Pretorius from Seeff Centurion says that first time
buyers have increased and are active in the R700 000
to R1 million range if buying on their own and up to
R1.8m if buying jointly. Centurion is an attractive area for
affordability with many units close to major highways,
the Gautrain Station and all facilities in Centurion City.
Popular suburbs include Centurion West, The Reeds and
Die Hoewes. The latter for example offers 6 300 sectional
title units priced from just R545 000 with about 30% of the
market comprising of Millennial buyers.
How to Choose Between
Two Homes
In life, we are often faced with the challenge of having to make a difficult decision and we often wish that we had additional
guidance to point us in the right direction. One of these tough decisions is having to choose between two properties that
you are interested in. Choosing one is harder than it seems, especially if you are a first-time home buyer because you have
little experience to go on. There is also the sense of urgency because you don’t want to waste too much time trying to
decide in case both homes are snatched out from under you.
If you have reached the point where you have assessed both properties and still happen to have difficulty deciding,
consider these factors:
What is the price point of both properties?
One of the very first things to consider is the price point of both homes. If one house is well within
budget and the other is at the top of your price range, then it’s to be assumed that the decision
process should be easy. However, often first-time home buyers are torn because the house at the
top of their budget is slightly more upmarket or bigger. Ultimately, it’s your decision, but it could
be safer to have a smaller bond and money in your bank account for day-to-day living, emergency
expenses and savings.
Location is everything
Location is often the deal breaker, especially if one house has a shorter commute to work
or is closer to other desirable amenities. But if both are similar distance-wise, then consider
the quality of the neighbourhoods in each location. Neighbourhood quality can be an
indicator of appreciation and market value. Ask your real estate agent for sales figures in
each neighbourhood over the last few years to see which is increasing in value.
More conveniences
Knowing what is convenient for you could be
the decision maker between two properties.
Whether you are moving by yourself, or with
your family, there will be certain conveniences
that make a difference and can improve
your family life. Look for those conveniences with each
property you are indecisive about. Be it proximity to shopping
malls, sports facilities, school districts, a range of amenities
or any other factors – whichever house stacks up as the better
choice could be ‘’the one’’ for you.
Have a second(or third home viewing)
Sunnyside, Equestria and Moreleta Park in Pretoria East
from R500 000
Equestria and Moreleta Park are ideal steppingstone
neighbourhoods for newcomers who wish to establish
themselves as real estate owners and may at a later stage
upgrade to more expensive property, says Gerhard van der
Linde, MD for Seeff Pretoria East. Another popular area is
Sunnyside which offers a great location and some 8 474
sectional title units priced from as low as R350 000. By now one property should be standing out more than the other on
your pros and cons list. But it’s important to see each property at least a
few more times. Something may spring out at you that you didn’t notice
before and that might be the deciding factor. Try to visit at different times of
the day so you see the home in a different light each time. Additionally, do a
drive-by in the morning or evening during rush hour to see if there’s traffic build up.
Van der Linde reminds young buyers that they should start
their homebuying journey by getting a pre-approval done
so that they can buy with confidence. It saves a lot of time,
especially in this market where you want to take advantage
of the favourable conditions as quickly as possible. A property may seem perfect at the time, but its appeal can diminish as the years go by.
Keep the next five to ten years in mind when you are looking to purchase. Will your family
be expanding? Will your children have moved out of the house by then? Are rooms large
enough for your family? Is there a garden and lawn for the younger kids and pets to play
in?
Sources Seeff Property Group Buying a home is a major life investment for most people and should only happen
once you are completely at ease with your choice. At the end of the day, you have to
make a decision that’s right for you and your family.
Think of the future
FIRST-TIME INVESTOR 17