In the area 1 – Pretoria - Moot

Moot buyers choose older homes

Homebuyers in Pretoria’s Moot areas are shunning new developments in favour of pre-owned homes that are more affordable.

That’s the news from Anton van der Walt, principal of the local Chas Everitt International franchise who says buyers are making direct comparisons between the old and new stock in the suburbs that make up the area.

“The price gap between the two sectors has increased dramatically, with building cost increases having pushed the price of new units to between R8000 and R10 000/sqm while older homes sell for between R4000 and R6000/sqm.

“Add to this the fact that many of the older homes have been extensively renovated and had good security systems installed, and it is no surprise that buyers are going for the cheaper option,” he says.

“A number of planned developments have consequently been put on hold now until the market turns upwards once more and rising demand ensures that the price of older homes catches up to that of newly-built units”.

Meanwhile, bargain hunters are prolific, says Van der Walt. “The majority of prospective buyers have done their homework and many are coming in with very low cash offers.

“Investors in particular are entering the market with unrealistic proposals, looking to make a killing while the market is working in their favour. On the other end of the spectrum we have sellers who are looking to make a profit though selling their own properties at 2007 prices, but purchase at bargain prices.”

He says there are bargains to be had in the Moot suburbs, where houses are being sold for between R450 000 to R600 000, but that such properties are unusually quite run down. For R150 000 more, buyers can purchase a spacious family home in good condition.

“And overall, the Moot is faring relatively well in terms of sales. Quality homes in the R700 000 to R900 000 bracket are selling steadily and rental properties are in high demand, although asking prices in this sector have been capped given the current constraints on disposable income. Most rentals now fall into the R3500pm to R6000pm bracket.”

Article by: www.chaseveritt.com