Latest news with #GrantSmee
IOL News
25-06-2025
- Business
- IOL News
Your guide to buying property: tips for first-time buyers
Discover the challenges and opportunities for first-time homebuyers in the Western Cape. With insights from industry experts, learn about affordable areas, creative strategies, and the growing appeal of the region for both local and international buyers. Image: Todd Goodman The Western Cape continues to be one of South Africa's most desirable regions for property investment, luring interest from both local and international buyers. Yet for many first-time homebuyers—especially those eyeing Cape Town—the dream of homeownership can feel increasingly out of reach. According to ooba Home Loans' latest oobarometer, the average purchase price in the Western Cape during Q1 2025 stood at a staggering R2.33 million, significantly above the national average of R1.66 million. Nevertheless, activity among entry-level buyers has not waned—proof that creative solutions and alternative strategies are helping many take that important first step onto the property ladder. 'We're seeing many young professionals and investors gravitating towards the Western Cape for its lifestyle, infrastructure, and perceived safety, but affordability in the metro remains a challenge, especially for those trying to enter the market for the first time,' explains Grant Smee, CEO of Only Realty Property Group. Despite the province's high price point, Lightstone data shows that 40% of housing stock in the Western Cape is priced under R750,000. However, most of these properties are concentrated in smaller towns and rural areas. 'Investment properties are also in high demand, with the Western Cape recording a year-on-year increase of 0.5% to reach 12.9% in the first quarter [ooba Home Loans]. There is a growing trend of first-time homebuyers purchasing in the Boland and Overberg regions in smaller, outlying towns,' says Smee. 'These areas offer a more balanced lifestyle and slightly more accessible pricing, while still benefiting from the broader Western Cape infrastructure.' Within Cape Town, many new buyers are opting for micro-apartments and sectional title units in high-density, mixed-use developments. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad loading 'These offer security and lifestyle perks like on-site retail, communal workspaces, and gyms,' Smee adds. The province's magnetic global appeal hasn't gone unnoticed. While the local market wrestles with affordability, foreign investors are entering at the higher end. 'According to Lightstone data, the province leads in luxury price bands, with international homebuyers accounting for over 40% of purchases above R10 million, around 25% in the R5 to R10 million range and approximately 15% in the R3 to R5 million bracket,' says Smee. 'Compared to global cities, the Western Cape offers strong value. For instance, the average price of a home in one of the region's upmarket suburbs sells for around R10 million. To purchase an apartment in London, with considerably less living space, homebuyers will pay upwards of R12 million.' This sentiment is echoed internationally. The Australian Property Investor recently reported that South Africans pay around R17,000 per square metre for a median-priced home, compared to R113,000 in Australia. While Cape Town remains a prime property hotspot, buyers are expanding their search. 'The Western Cape's so-called 'Zoom' towns – so-called for their remote working appeal – include Pringle Bay, Betty's Bay, Kleinmond, Malmesbury, Hermanus, and Gansbaai,' says Smee. 'These areas provide easier entry points for buyers and remain within comfortable reach of Cape Town.' Beyond the Western Cape, other provinces offer compelling options. 'Mpumalanga, for instance, is currently leading the pack when it comes to home loan applications from first-time buyers [ooba Home Loans]. Nelspruit, in particular, is booming with new estate developments that offer a secure, lock-up-and-go lifestyle, community atmosphere, and budget-friendly pricing.' Gauteng continues to draw buyers seeking well-established infrastructure. 'Popular nodes like Waterfall, Bryanston, and Hyde Park are drawing interest from buyers seeking well-established infrastructure and upscale living,' Smee adds. KwaZulu-Natal's North Coast has emerged as an investment beacon. 'Over the past decade, this region has experienced massive growth, with estate developments, excellent schools, security, and community-driven living making it an increasingly worthwhile investment.' The Eastern Cape is also gaining ground, with towns like Jeffreys Bay and Kenton-on-Sea growing in popularity among short-term rental investors. 'These regions combine access to economic centres with a strong lifestyle appeal, without the Cape Town price tag,' Smee explains. 'For buyers willing to expand their horizons beyond the Western Cape, there are standout opportunities, many in secure estates or fast-growing nodes. And with many of these areas doubling as holiday destinations, they open the door to 'rentvestment' opportunities, whether for short-term letting or longer-term leasing.' Smee advises that while buying in the Western Cape might require more strategy and patience, the long-term rewards make it worthwhile. 'For homebuyers determined to get a foothold in the Western Cape property market, there are many options available. This investment is well worth it too as the average growth of property in the province is around 7.4%.' Top tips include: Enter into a joint home loan : Co-buying with a friend, partner or sibling can boost affordability and borrowing power. Save smart and plan long-term : Set clear savings goals and budget realistically for transfer and attorney fees. Start on the outskirts : Neighbourhoods just outside key metro areas often offer more accessible prices and are poised for growth. Buy a fixer-upper : Properties in need of a bit of work can often be negotiated at lower prices and renovated over time. Buy-to-let as a stepping stone : Purchase an investment property in a growing node while renting where you live. 'The Western Cape is a great place to invest, but it could require a bit more creativity and long-term thinking for first-time homebuyers to make it work. Alternatively, if the Western Cape doesn't meet your criteria, regions like the Eastern Cape, KwaZulu-Natal, and Mpumalanga have potential. It's not about compromising your goals, but rather being strategic,' says Smee. PERSONAL FINANCE
The Citizen
23-06-2025
- Business
- The Citizen
Tips for first-time homebuyers to get a foot on the property ladder
Tips for first-time homebuyers to get a foot on the property ladder The Western Cape remains one of South Africa's most sought-after regions for property investment, attracting strong interest from both local and international homebuyers. However, for first-time homebuyers, especially those looking at Cape Town, homeownership is a challenge as the province records the highest average purchase price. Still, data reveals that activity in the entry-level market persists, suggesting that many homebuyers are finding creative ways to get a foot on the property ladder. According to the latest oobarometer data from ooba Home Loans, the Western Cape's average purchase price in Q1 2025 was R2.33m – well above the national average of R1.66m. Yet, the province continues to draw first-time homebuyers, with the demand for property in the region showing no signs of slowing. 'We're seeing many young professionals and investors gravitating towards the Western Cape for its lifestyle, infrastructure and perceived safety, but affordability in the metro remains a challenge, especially for those trying to enter the market for the first time,' explains Grant Smee, CEO of Only Realty Property Group. Who Is Buying in the Western Cape, and Where? Lightstone data shows that 40% of the Western Cape's housing stock is priced under R750,000, and while appearing to be a more accessible price point, most of these properties can be found in smaller towns and rural areas. 'Investment properties are also in high demand, with the Western Cape recording a year-on-year increase of 0.5% to reach 12.9% in the first quarter [ooba Home Loans]. There is a growing trend of first-time homebuyers purchasing in the Boland and Overberg regions in smaller, outlying towns,' says Smee. 'These areas offer a more balanced lifestyle and slightly more accessible pricing, while still benefiting from the broader Western Cape infrastructure.' He says entry-level homebuyers investing in Cape Town's CBD are also increasingly choosing more affordable micro-apartments and sectional title units in high-density, mixed-use developments: 'These offer security and lifestyle perks like on-site retail, communal workspaces and gyms.' Attracting Foreign Investors Meanwhile, the Western Cape remains a top choice for foreign homebuyers, with its global appeal and in-demand lifestyle at comparatively more affordable prices than elsewhere. However, Smee notes they're investing in a higher price bracket. 'According to Lightstone data, the province leads in luxury price bands, with international homebuyers accounting for over 40% of purchases above R10m, around 25% in the R5m to R10m range and approximately 15% in the R3m to R5m bracket.' He adds: 'Compared to global cities, the Western Cape offers strong value. For instance, the average price of a home in one of the region's upmarket suburbs sells for around R10m. To purchase an apartment in London – with considerably less living space – homebuyers will pay upwards of R12m.' The Australian Property Investor also highlighted South Africa's comparatively low housing prices, with South Africans paying around R17,000 per square metre for a median-priced home, compared to Australia's R113,000 for the equivalent. Alternatives for First-Time Buyers Smee notes that while the Western Cape remains a strong performer in the property market, savvy buyers are increasingly exploring outlying regions that offer better value for money than central Cape Town. Areas such as the West Coast, the Garden Route, and the northern and southern suburbs present attractive alternatives. 'The Western Cape's so-called 'Zoom' towns – so-called for their remote working appeal—include Pringle Bay, Betty's Bay, Kleinmond, Malmesbury, Hermanus, and Gansbaai,' he explains. 'These areas provide easier entry points for buyers and remain within comfortable reach of Cape Town.' However, he adds that excellent opportunities exist beyond the Western Cape as well. 'Mpumalanga, for instance, is currently leading the pack when it comes to home loan applications from first-time buyers [ooba Home Loans]. Nelspruit, in particular, is booming with new estate developments that offer a secure, lock-up-and-go lifestyle, community atmosphere, and budget-friendly pricing.' Gauteng also continues to hold strong appeal. 'Popular nodes like Waterfall, Bryanston, and Hyde Park are drawing interest from buyers seeking well-established infrastructure and upscale living,' he says. Meanwhile, KwaZulu-Natal's North Coast – most notably Umhlanga, Ballito and Salt Rock – has become a magnet for investment. 'Over the past decade, this region has experienced massive growth, with estate developments, excellent schools, security, and community-driven living making it an increasingly worthwhile investment,' he adds. The Eastern Cape is quietly gaining momentum, too. Towns like Kenton-on-Sea and Jeffreys Bay are becoming hotspots for short-term rental investors, thanks to their appealing lifestyle offerings and growing popularity. 'These regions combine access to economic centres with strong lifestyle appeal, without the Cape Town price tag,' Smee explains. 'For buyers willing to expand their horizons beyond the Western Cape, there are standout opportunities, many in secure estates or fast-growing nodes. And with many of these areas doubling as holiday destinations, they open the door to 'reinvestment' opportunities, whether for short-term letting or longer-term leasing.' Practical Tips for Accessing the Market 'For homebuyers determined to get a foothold in the Western Cape property market, there are many options available,' he notes. 'This investment is well worth it too as the average growth of property in the province is around 7.4%.' He shares his top tips for those wanting to get a foot on the property ladder as follows: Enter into a joint home loan: Co-buying with a friend, partner or sibling can boost affordability and borrowing power. Co-buying with a friend, partner or sibling can boost affordability and borrowing power. Save smart and plan long-term: Set clear savings goals and budget realistically for transfer and attorney fees. Set clear savings goals and budget realistically for transfer and attorney fees. Start on the outskirts: Neighbourhoods just outside key metro areas often offer more accessible prices and are poised for growth. Neighbourhoods just outside key metro areas often offer more accessible prices and are poised for growth. Buy a fixer-upper: Properties in need of a bit of work can often be negotiated at lower prices and renovated over time. Properties in need of a bit of work can often be negotiated at lower prices and renovated over time. Buy-to-let as a stepping stone: Purchase an investment property in a growing node while renting where you live. 'The Western Cape is a great place to invest, but it could require a bit more creativity and long-term thinking for first-time homebuyers to make it work. Alternatively, if the Western Cape doesn't meet your criteria, regions like the Eastern Cape, KwaZulu-Natal and Mpumalanga have potential. It's not about compromising your goals, but rather being strategic,' says Smee. Issued by Jess Gois
The Citizen
01-05-2025
- Business
- The Citizen
From wedding bells to doorbells
The growing momentum of a global homeownership trend dubbed 'houses before spouses' has seen more young homebuyers choosing to purchase a home prior to getting married or buying jointly with a spouse or partner. This same trend has been mirrored in South Africa where, according to ooba Home Loans, the number of property purchases made with a spouse has dropped from 34% to 27% over the past decade. At the same time, the share of first-time homebuyers without dependents has increased to 64%. While some buyers still opt for joint purchases, many are turning to an alternative co-ownership model as Grant Smee, CEO of Only Realty Property Group explains: 'It's becoming increasingly apparent that, to navigate the financial challenges of homeownership, many Gen Z and millennial buyers are choosing to co-own property with friends or family, rather than relying on the financial security of a spouse.' Smee adds that first-time buyers, who are opting to purchase properties alone, are also getting older – a trend driven largely by economic uncertainty, high unemployment rates and financial instability. When it comes to 'houses before spouses' in the global context, the US leads the charge with single women owning approximately 2.72 million more homes than single men (New York Post). In the UK, solo households now make up a third of all households, according to the Urban Institute. Similarly, in Australia, the trend is gaining traction among younger generations. Houses Before Spouses Still Trending Locally – Especially in Gauteng & Amongst Women Smee notes that, for many, owning a home remains one of life's most significant achievements: 'For younger buyers, homeownership is still seen as a major aspiration – particularly in a challenging economic environment where saving for a deposit, securing a home loan, and ultimately purchasing a property are far from easy. That's why, more often than not, it takes precedence over other traditional life milestones.' Data presented by FNB indicates that buyers earning between R3,500 and R29,600 per month – referred to as the 'affordable housing segment' – are increasingly purchase homes collectively to manage high interest rates and rising costs. 'This segment saw 47% of home loans issued in Gauteng over the past four years, 18% issued in the Western Cape (despite having the highest property prices in the country overall), and 12% issued in KwaZulu Natal – as per Standard Bank's most recent data.' Women are in strong support of the 'houses before spouses' trend, with Lightstone data in July '24 reflecting that women own nearly 60% of South Africa's residential housing stock. 'Female first-time buyers now outnumber their male counterparts, with the majority being single or divorced.' Tips for Navigating the Joint Ownership Journey As the trend continues to grow in popularity, Smee believes that more millennials and Gen Zs – in particular – will choose to purchase jointly. 'Housing affordability remains a challenge and this is where joint homeownership comes in. It also helps to minimise and spread risk across the parties entering the agreement, however, buyers must understand the legal, financial and practical implications.' He unpacks these as follows: Managing Financial Risks A major risk of joint ownership is that if one owner stops contributing financially, the remaining owners must cover their share to avoid legal and financial consequences. 'This is why a well-drafted co-ownership agreement is essential,' says Smee. 'It should outline how costs are divided and establish solutions for non-payment, such as a buyout clause or forced sale options.' What Happens In the Case of Death In the event of a co-owner's death, their share does not automatically transfer to the surviving owners. 'The share becomes part of the deceased's estate and is distributed according to their will or intestate succession laws,' explains Smee. 'Meanwhile, the remaining bondholders remain jointly liable for loan repayments until the estate is settled and ownership is transferred.' Smee advises co-owners to maintain up-to-date wills to avoid legal complications. Exiting the Agreement If disputes arise over selling the property – such as one owner wanting to sell while others do not – an owner can apply to the court for an order to force a sale, known as actio communi dividundo. 'A co-owner could also attempt to sell their share without the consent of the others, which may introduce an unknown third party into the arrangement,' Smee cautions. 'A buyout agreement can help prevent such conflicts by ensuring that remaining owners have the first option to purchase the departing party's share.' If all owners agree to sell, the property is sold, and proceeds are divided according to ownership percentages. The Importance of a Co-Ownership Agreement A formal co-ownership agreement should outline: Ownership rights and obligations Procedures for selling or transferring shares Recourse for non-payment Looking ahead, Smee believes that Gen Zs in particular will change the way in which property is viewed, purchased and ultimately, used. 'While millennials have been largely responsible for driving this trend, I suspect that Gen Zs will transform the homeownership landscape in years to come. Whether it's through joint or single homeownership, we do anticipate it to be an exciting time.' Issued by Jess Gois
Zawya
31-01-2025
- Business
- Zawya
Will lower interest rates drive buy-to-let investment in South Africa?
Despite economic headwinds and high inflation, South Africa's rental market showed resilience throughout 2024. However, a quick succession of interest-rate cuts has many speculating about whether more tenants will finally make the move to homeownership. '2024 was another big year for South Africa's property rental market, with all major regions registering positive growth,' shares Grant Smee, chief executive officer of Only Realty Property Group, pointing to June 2024 when rental growth outpaced inflation for the first time in nearly five years, increasing by 5.2% year-on-year. 'The country's most expensive province, the Western Cape, saw a rental growth rate of 9.7%, narrowly outperformed by the country's front runner, the North West by just 0.1%. Conversely, Gauteng and KwaZulu Natal registered some of the lowest growth rates.' StatsSA's Household Survey revealed a notable increase in the percentage of households opting to rent, climbing from 17.7% in 2020 to 23.9% in 2022. Building on this trend, TPN reported a slowdown in rental escalations to 4.29% in Q2 2024, further reinforcing the growing shift toward renting. 'Rental properties provide flexibility, lower overhead costs and give tenants access to areas and homes that might otherwise be unaffordable if purchased. This is especially true in gated estates, where monthly levies can reach tens of thousands of rands,' explains Smee. Will rate cuts impact the performance of the buoyant rental market? 'While the rate cuts coming into play are notable, we are still a long way off the multi-decade lows of 2020,' he says. 'In addition, many potential homebuyers are grappling with the high cost of living and reduced savings.' Smee adds that financial stability and savings are two important considerations for any lender approving a home loan. 'There is also generally a requirement to put down a deposit and without ample savings, this is not always possible.' He does, however, add that for those with some liquidity, lowered interest rates may draw in buy-to-let investors who have been waiting in the wings. 'Buy-to-let investors are on the rise – particularly in the Western Cape – where there is high demand. For those who have been waiting, now is a good time to secure a property that covers the bills and can potentially yield additional income,' says Smee. 'It's also an opportune time for investors wanting to expand their portfolios and for property owners wanting to upscale.' Overall, Smee believes that the advantages of interest-rate cuts far outweigh any potential downfalls. 'While areas privy to high levels of rental property vacancies such as Gauteng may feel the impact more than others, it will certainly offer some benefits too.' Smee highlights one potential drawback of the current climate for tenants, saying: 'For those who own a home, the benefits of rate cuts are immediate. For tenants on the other hand, the financial benefits will most likely not be felt at all.' Tips to go from renting to buying: For those looking to capitalise on a year of interest-rate cuts, Smee offers four tips: - Know your credit score: Your credit score tells the bank whether you can repay your debts on time and - without a good credit score - you will not be approved for a home loan. A number over 610 is generally acceptable and nothing less will suffice. - Research: Once you know your credit score and what you can afford, get to know what's available. Set some alerts so that you have an idea of property prices in your desired area (and within your range of requirements) and become more knowledgeable on the market. Understanding the market will provide you with better leverage in a case where you may need to negotiate. - Start saving: Home loans are expensive and paying them down quickly will make you more financially resilient in times of high interest rates. Remember, interest rates do fluctuate so you need to understand best- and worst-case scenarios when it comes to your repayments. I recommend that potential buyers set up a separate account for savings, preferably a fixed, interest-earning account. This way, you can't touch the money and it starts to grow as it earns interest. I would also advise that you set up an automatic debit order so that it becomes routine. All rights reserved. © 2022. Provided by SyndiGate Media Inc.
