It’s a buyer’s market under R1.5 million
PUBLISHED 18 APR 2020
2020 is without doubt off to a rocky start in countries around the globe with concerns of the Coronavirus (Covid-19) spread, a lockdown and a supressed economy, but this won’t last forever, and here in Cape Town the residential property market is perfect for first-time buyers.
After years of high prices, owning a Cape Town has finally become affordable again.
With plenty of housing stock available and fewer buyers around, those who are keen to invest in the Mother City this year can expect excellent value for money. This is especially true of homes in the sub-R1.5 million category.
Homes under R1.5 million are a buyer’s dream
The Cape Town property market is a great place to be a buyer right now - especially when it comes to properties on the market at under R1.5 million.
With bond approvals remaining high and banks offering incentives to first-time buyers, the sub-R1.5 million price bracket is seeing an increasing number of sales.
There is excellent value for money to be found at this price point, from apartments in the trendy Southern Suburbs to starter homes in areas like Parklands.
Sellers are becoming increasingly open minded as to the offers they will consider. This gives savvy buyers the chance to secure properties that may have been on the market for several hundred thousand Rand more just a few years ago.
Changes to transfer duty spur buyers on
The appeal of a Cape Town home priced around R1 million or just above has been further enhanced by the changes to the transfer duty tax announced by Tito Mboweni in the 2020 Budget Speech.
Transfer duty will no longer apply to properties sold for R1 million or less, and homes with a selling price of between R1 million and R 1.375 million will attract a duty of just 3%.
This much-needed relief for home buyers is expected to produce even more interest in the Mother City’s residential property market. Now could be the ideal time to view and purchase a Cape Town home at once in a decade prices.
If you would like to view our portfolio of competitively priced, comfortable Cape Town homes, contact the Cape Realty team today.
Image Credit: https://pixabay.com/photos/apartment-accommodation-flat-loft-406901/