More property buyers looking for 'homes for life'

Many young couples are now seeking to buy homes that will provide room for their families to grow without having to move - and without having to pay transfer duty, bond registration, legal fees and other moving costs over and over again.

Tjaart van der Walt, CEO of the RealNet estate agency group, says: "There is definitely a school of thought now that says homeowners should not move too often but rather stay put, pay off their home loans and build up their equity, and in keeping with this, family-size homes in older suburbs are regaining popularity.

"We are seeing many young executives and professionals who might previously have preferred a lock-up-and-go apartment in the city or a home in a country estate now looking instead for fixer-upper houses in established areas, even if these are a bit big for their current needs."

The idea, he says, is basically to spend money over time on renovating these properties and increasing their value to boost the owners' equity, instead of spending it on moving repeatedly to accommodate a growing family - or perhaps even ageing parents.

But property transaction costs, Van der Walt notes, are definitely not the only drivers of this trend. "Many buyers are conscious of the opportunity they have right now to acquire 'tomorrow's accommodation today' while prices are still relatively low, and even more importantly, while low interest rates make it easier for creditworthy borrowers to qualify for home loans."

"There is also the fact that buyers are increasingly value conscious, and that newly-built homes are still some 20% more expensive, meter for meter, than pre-owned homes.

"Proximity to places of work and the prospect of less time spent commuting is another consideration for many who are once again choosing to live in the older suburbs, while others are influenced by the need for a property with space to accommodate a home office or business that will be easily accessible for clients."

Meanwhile, he says, security seems to be less of an issue than previously in property buying decisions. "Reports of crimes being committed within security villages and estates have shown that there are not always guarantees even within such complexes, and consumers have also realised that it is not that difficult or costly to make individual suburban homes very secure."

Posted at 10:33AM Jul 26, 2010 by Editor in Residential  |