Property Investment – Smaller Houses offering Greater Returns
High Returns and Low Operating Costs
Recent statistics released by FNB identify that smaller homes offer great property investment when compared to medium and larger sized homes.
This was determined by comparing the rate of price appreciation amongst different sized properties.
These statistics emphasise the increasing popularity of smaller houses among South African home buyers, chosen not just for their affordability, but also as a solid property investment.
Results of the report, based off statistics from the second quarter of the year, reveal that small home prices increased at a rate of 12.5% a year (compared to 12.4% a year in the first quarter).
Subsequently, medium home prices were climbing at a rate of 6.6% (down from 7.5% in the first quarter) while large home prices increased by 4.6% a year (up from 1.4% in the previous quarter).
Quarterly reports released by other financial institutions further echoed the year-on-year increase trend.
Small Homes Rising in Popularity
The increasing demand for small, affordable housing by South Africans has helped shape these homes as top class property investment options.
The fact that these properties have much lower upkeep and operating costs makes them ideal for both first time home buyers and seasoned homeowners alike.
In the wake of a tough economic climate, many repeat homebuyers have started to downsize their living, further elevating the demand for smaller homes.
First Time Home Buyers Demand
The majority of first time home buyers choose smaller properties as their first step towards breaking the constraints of rent and cementing their financial security in the form of smart investments.
There’s also been a slight slowdown seen in new housing delivery over the past few years, further increasing the demand and emphasising the investment opportunity available.
Having a clear understanding of your affordability is important to becoming a successful homeowner.
The Bardale Village affordability calculator can aid you in finding your perfect home.
The property convenience of smaller homes is another factor that has helped shape their popularity.
Developments are typically located within close proximity to both business and public transport hubs, while still being financially viable for many South Africans.
This rise in popularity has also seen an increase in homebuyers opting to buy within gated living estates. This brings with it a number of added benefits, such as increased security and the advantage of a lock up and go lifestyle.
Future Property Investment
According to property investment experts, South Africans who buy smaller homes can expect much better returns on their investment both currently and for the foreseeable future.
Climbing the property ladder no longer has to do with buying bigger homes, but rather buying homes that hold the best possible value.
Affordable Housing at Bardale Village
With an extensive selection of houses for sale in Kuilsriver area, Bardale Village is serious about making affordable housing accessible to every South African.
Make the smart property investment choice – Apply at Bardale Village today!
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