Stilfontein now a target for investors

Demand for rental properties in and around Klerksdorp has created opportunities for buy-to-let investors, and old mine houses in Stilfontein, about 15km away, are being targeted.

Wesley Lamprecht of the local Aida estate office says prices for the Stilfontein mine houses start at around R250 000, compared to about R550 000 for family units in the older areas of Klerksdorp. Landlords of Stilfontein properties are thus in a position to offer lower rents, which are actively sought by new residents who have been transferred to the area.

“Rentals for three-bedroom homes in Stilfontein range between R2400 and R3500pm, compared to rentals of between R3500 and R9000pm in Klerksdorp,” he says.

“There is currently quite a bit of movement in the market, since local Spoornet employees have been transferred to other towns and cities, while there is an inflow of Senwes Co-operation employees from rural branches to the co-op’s head offices in Klerksdorp.

“However, purchase demand is lagging supply at the moment because most new residents prefer to rent before they buy, while those who have been transferred to other towns are keen to sell as soon as possible. The pressure to sell, in tandem with other economic factors, has depressed selling prices, which creates investment opportunities for those who have cash or access to credit.”

Many sellers, Lamprecht adds, are prepared to sell at break-even prices. Most Klerksdorp properties are priced within the R600 000 to R1,2m range and they typically have three bedrooms, a study, three living areas and a swimming pool.

The top end of the market, where units in estate developments are marketed at up to R4m, is quiet at the moment, while new townhouse developments have also tapered off. Townhouses are priced at between R600 000 and R1,1m with rentals for two-bedroom units ranging between R3500 and R4500pm. Three bedroom townhouses are being rented out for as much as R6000pm, depending on the extras they offer.

Article by: www.aida.co.za