Demand for affordable property remains strong

The current low interest rates and the banks’ decision to provide 100% home loans, for properties below the R1,5 million mark, available to first time homebuyers and buyers/households earning less than R15,000 per month, has boosted the demand for affordable property at the Bardale Village Development, a security lifestyle village, in Kuils River close to Zevenwacht Mall.

Phase Two at Bardale Village, offering new 423 homes, was launched recently, with the construction of 22 homes.

“They were sold within a week,” said Peter Jones, Group General Manager of IPD (Integrated Property Development (Pty) Ltd). “Since then we have been selling on average two homes per week and as a result of the new lending policies and low interest rates, it seems likely that this will increase to three or four per week.”

The first 22 new homes, said Jones, are already complete and will be occupied shortly and work has started on a further 19 with completion due in early July 2010.

Jones said that the size of the loan applicants’ combined gross salaries is not as important as their payment and credit profile. There has to be a monthly net surplus, a significant difference between net income after tax and the family’s expenses.

“We observed that since the National Credit Act was introduced in 2007, more consumers have been living within their means, have paid off their personal debt and have maintained exemplary payment profiles, resulting in high credit scores and higher interest rate concessions,” said Jones.

“It is, therefore, possible for any couple earning R10,000 or R15,000 and managing their expenditure to qualify for a home loan and buy a property for their family at Bardale Village.”

Standard Bank, Nedbank, ABSA and FNB, said Jones, have to date had an equal share of home loans at Bardale Village, said Jones.

The homes available in Phase Two range from one bedroom to three bedrooms and the selling prices are now pitched from R369 990 to R532 990. Further information on pricing, unit sizes, layouts and plans can be obtained by going to

The homes here, said Jones, have Cape Bo-Kaap styles with flat roofs, central gables and “the sort of finishes not normally found in this price range”. All, he said, are exceptional value for money. The finishes include built-in cupboards in main bedrooms, solid wood countertops and built-in cupboards in the kitchen, fully tiled bathrooms with showers and baths, en-suite bathrooms in the bigger homes and backyard walls. The front gardens have roll-on lawns, street numbers and postboxes, as well as an indigenous tree planted in the front garden. All homes are linked to a landscaped recreational public open space with playgrounds and jungle gyms.

Jones said that the developers had made significant changes since the completion of Phase One (which had 516 units, all now sold) and these have markedly improved the finishes of the homes. For example, there are now aluminium framed windows and small but significant changes have improved the interior layouts.

One of the main advantages of purchasing a home at Bardale Village is that the developer is financing the construction of the homes themselves. The home buyer therefore avoids the risk of paying interim interest on a building loan from their financial institution during the construction process.

“This means that there is a fairly short delay between the time the buyer pays his deposit and takes transfer and buyers do not have to deal with the building contractors and municipalities – they buy a completed home ready for occupation.

“We have found that our preferred builders are performing to very high standards. We believe that this is because we have built up relationships with builders who understand our product and are allocated only 20 to 30 homes which they can handle efficiently and on time,” said Jones.

Investors, commented Michael Bauer, Managing Director of IHPC (Pty) Ltd, the exclusive selling agents of Bardale Village, are getting returns of 0,85% per month (i.e. ± 10% per annum) from day one in the first year. The reason for this, he said, is that the quality of these homes, the lack of supply and the rental demand for homes in this area enables them to achieve rentals of R3,200 to R4,500 per month.

“This, of course, is a far higher return than the average residential property investment currently yields,” said Bauer.

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