3 things buyers and tenants will look for in 2019
Category Residential Property News
3 things buyers and tenants will look for in 2019 30 Jan 2019 Housing trends are forever changing. While shaggy carpets and pink porcelain bath tubs might have made a property highly sought after in the 1960s, this kind of property would be a tricky sell in 2019. Goslett says the ever-rising cost of living and looming threat of national electrical outages provide more prudent reasons for why homes with self-sustainable features are likely to become increasingly attractive in 2019. "Those who want to purchase real estate in the hopes of flipping and reselling for a profit, or simply to generate a secure stream of rental income, should keep an eye on current market-related trends to ensure that the property they purchase will be in high demand in the years ahead," explains Regional Director and CEO of RE/MAX of Southern Africa, Adrian Goslett. To help buyers choose such a property, Goslett predicts some of the trends that will come to dominate the 2019 real estate market: 1. Increased demand for sectional titles According to Lightstone Property, Goslett says the South African Deeds Office recorded a 3.6% drop in the number of freehold properties sold in the fourth quarter of 2018, and a substantial 8.1% increase in the number of sectional title units sold. This reveals a considerable shift in the market away from freehold titles and towards sectional title living, he notes. "Often more affordable than freehold properties, sectional titles also offer better lock-up and go possibilities than freehold properties. With many placing increased value on the ability to travel, and with many appealing new sectional title developments emerging all over the country, it is understandable why these kinds of homes are becoming increasingly popular." 2. Sustainable eco-friendly housing The Western Cape's water crisis last year shone a spotlight onto sustainability and environmentally responsible ways of living, says Goslett. "For those less concerned about the effect they're having on the environment, the ever-rising cost of living and looming threat of national electrical outages provide more prudent reasons for why homes with self-sustainable features are likely to become increasingly attractive in 2019." 3. Homes with rental or sharing potential "Another trend which has been emerging is the growing demand for homes that are able to accommodate beyond just the nuclear family unit," says Goslett. "With property prices shifting beyond the reach of entry-level buyers and in favour of the middle-income buyer, many are choosing to live with family members or to sublet rooms in order to cover the rent or the bond repayment amounts." Two or three bedroom homes with en-suite bathrooms and possibly separate entry points or garden cottages should therefore do well in the 2019 market, he says. Finally However, Goslett adds that consulting with a reputable real estate professional will still be the surest way of purchasing a property with solid investment potential. "It is part of a real estate professional's job to know which suburbs are performing well and which are better avoided in the current market," he says and investors would do well to work through an estate agent to ensure higher returns.