Fast take-up on affordable properties
Category News
The fact that within four days of the listing for sale of 62 affordable residential properties granted to Alexander Swart Properties by a major corporate investor, 35 offers had been received indicates very clearly that there is a huge demand for homes at this price level, says Rowan Alexander, Director of Alexander Swart.
In this case all the properties are in the R685 000 to R789 000 bracket. The prime demand, says Alexander, comes from would-be home owners who are aware that at today's interest rates their chances of owning their own homes are better than ever-but such low cost homes, he says, are also attractive to buy-to-let investors.
"It is," he says, "a recognized fact that tenants at this level tend to pay their rents before their other commitments because they value highly being in properties which in most cases are a step up on their previous accommodation."
Alexander Swart, says Alexander, recognise that at such low price levels a fairly high percentage of potential buyers, almost all planning to buy with bonds, may not meet the criteria required by the banks-but ,he says, the large numbers of applicants will probably ensure a full sell out before the end of June. In this price bracket, he adds, the husband and wife would normally be expected to have a combined monthly income of about R20 000.
"My advice to buyers, especially those in this sort of situation where there in competition to get offers in fast, is, firstly to check their credit ratings and get their credit records sorted out if these are in any way blemished-this can usually be done by negotiation with the creditor. Secondly they should liaise with a bond originator before they start house hunting to find out exactly what size bond is likely to be made available to them and on what conditions. Once they know this they will be in a far stronger position to put in an offer, negotiate a price and be accepted. If they do not take these preliminary steps they may well find themselves seriously wanting a home that they subsequently find they cannot afford and ending up bitterly disappointed."
The success of Alexander Swart's sales campaign, shows yet again, says Alexander, how strong they are in the Northern Suburbs middle and lower middle price brackets.
"As you would expect, on our team we have specialists in a wide range of properties, including top of the range homes, but I think it is an accepted fact that those ASP agents serving the truly affordable sector i.e. homes priced below R1,2 million-Rubin Adams, Peter Roberts, Marlon Money and Cameron Worship-are the undisputed front runners in their field."
The award of these 62 properties to Alexander Swart and many previous "packages" granted to his agency,, says Alexander, indicates that ASP's declared intention, made several years ago, of providing a competent, all-in-one marketing service to the big corporate investors and developers has borne fruit.
"I think we have made a name for being able to publicise and shift property fast -as is absolutely necessary if one seeks to satisfy the big names in our industry," he said.
For further information, please contact Rowan Alexander by email : rowan@asproperties.co.za or by cellphone : 082 581 3116
Author: Rowan Alexander
