Top Gauteng suburbs for millennials and first-time buyers

Top Gauteng suburbs for millennials and first-time buyers

Category Hotspots

It’s the “perfect storm” for young homebuyers, says Samuel Seeff, chairman of the Seeff Property Group. There is a rare window of opportunity not seen for over a decade and purchasing conditions could hardly be more favourable.

Properties below R1 million carry no transfer duty and qualifying buyers can get bonds of up to 105% to assist with transfer costs. The March and April interest rate cuts have shaved another 2% from the bond rate and you can now save over R1 000 per month on a R1 million home loan.

Combined with the flat price growth, this means that millennial buyers can get into a property or suburb which they might not have been able to afford a year ago.

Tiaan Pretorius, a property consultant with Seeff Centurion says that any step onto the property ladder is a step in the right direction. Your first property may become part of your future property portfolio or can be sold for a deposit on your next property.

The great news for starter buyers is that South Africa’s powerhouse, Gauteng remains the top choice for affordable properties in the R450 000 to R1.2 million range. Most areas offer access to good transport networks and a host of amenities including access to shops, banks, schools and more.

Here’s where you should start your home buying journey according to Seeff:

Protea Glen in Soweto from R400 000
Up to 40% of buyers in the Protea Glen area are millennials according to Khosi Sibiya and Phindile Mphahlele, managing directors for Seeff Soweto. The popular price band is R400 000 to R700 000 for first time buyers. Protea Glen is an excellent choice for its affordability and amenities and offers great value compared to suburbs in the Johannesburg South region.

Weltevreden Park, Allens Nek and Olivedale in Randburg from R500 000
Randburg offers a vast range of affordable suburbs according to Duane Butler, Seeff licensee for the area. Areas such as Weltevreden Park, Allens Nek and Olivedale are excellent choices for millennial buyers and offer access to great schools and amenities. You also have easy access to the highway and several main arterials. With prices from just R500 000 for sectional title properties, there’s a broad choice for young buyers.

Glen Austin and Noordwyk in Midrand from R400 000
Midrand offers great value for those working in Johannesburg, Sandton, Midrand or Pretoria as it offers easy access to the N1 and M1 highway interchanges. With prices from just R400 000 in Glen Austin it is no surprise that millennials comprise about 40% of the market. Noordwyk is another popular choice offering townhouses and houses from just R700 000 to R800 000.

Paulshof, Douglasdale and Lonehill in Sandton from R600 000-R800 000
Charles Vining, MD at Seeff Sandton says that apartments are especially ideal for first time buyers and there is a broad choice of suburbs. You can for example find apartments and small townhouses from R600 000 to R800 000 in areas such as Paulshof, Douglasdale and Lonehill. Townhouses in the R700 000 to R900 000 range are popular in suburbs such as Buccleuch, Douglasdale, Sunninghill, Broadacres and Paulshof. Sectional title properties are also ideal buy-to-let investments, thus providing long-term investment potential.

Centurion West, The Reeds and Die Hoewes in Centurion from R500 000
Tiaan Pretorius from Seeff Centurion says that first time buyers have increased over the last 18 months and are active in the R700 000 to R1 million range if buying on their own and up to R1.8m if buying jointly. Centurion is an attractive area for affordability with many units close to major highways, the Gautrain Station and all facilities in Centurion. Ideal suburbs include Centurion West, The Reeds and Die Hoewes. The latter for example offers 6 300 sectional title units priced from just R545 000 and about 30% of the market comprises of millennial buyers.

Sunnyside, Equestria and Moreleta Park in Pretoria East from R500 000
Equestria and Moreleta Park are ideal steppingstone neighbourhoods for newcomers who wish to establish themselves as real estate owners and may at a later stage upgrade to more expensive property, says Gerhard van der Linde, MD for Seeff Pretoria East. Another popular area is Sunnyside which offers a great location and some 8 474 sectional title units priced from as low as R350 000.

Van der Linde reminds young buyers that they should start their homebuying journey by getting a pre-approval done so that they can buy with confidence. Be sure to also do your research in terms of the ideal area and always work with an area agent to ensure that you invest in the right property.

Photograph enclosed:
Pretoria East – Equestria – R2.295m for a large 3-bed family home in a popular full title estate in Equestria close to the Grove Mall, Wilgers hospital and all major routes.
https://www.seeff.com/results/residential/for-sale/pretoria/equestria/house/63767/

Author: Gina Meintjes