Upmarket tenants are turning into buyers
Tenants in Silver Lakes, one of Pretoria’s prime residential estates, are increasingly opting to buy homes of their own.
Linda Bodenstein of RealNet Silver Lakes says the trend has been noticeable since last year and that several tenants in the estate have bought homes this year.
“Silver Lakes is one of the most popular lifestyle estates in the city because of the high security, the golf course – one of the top 40 in the country – and convivial club house, as well as the setting, which includes a series of lakes. Several antelope roam the estate and water birds are prolific,” she says.
The estate, which was established about 15 years ago, has also earned an enviable reputation as one of the best-managed estates in the country. Bodenstein says the homeowners’ association is extremely active and capable. “The association basically acts as a mini-municipality and manages all aspects of upkeep, including maintaining the roads.”
She adds that there is a strong rental component. “Many investors have bought multiple units through the years and currently about 60% of the homes in the estate are tenanted. Rental units have drawn residents looking for a safe and secure lifestyle and we have seen a strong inflow from surrounding areas such as Waterkloof and Lynnwood because of mounting security concerns in the suburbs.
“However, increasing numbers of these tenants are now opting to buy their own homes and settle permanently in the estate.”
Rentals range from around R12 000pm for smaller duet units to R50 000pm for luxury homes on the golf course. The latter category mainly caters for executives of international corporations working in the capital city on contract.
Sale prices for full-title duets start at around R1,7m and Bodenstein says these units are popular among younger buyers. Sectional title townhouses are rarely offered for sale and are usually snapped up quickly. Prices average R1,4m.
House prices range between R1,7m and R10m with most sales currently taking place in the R3,5m range.
Article from: Realnet