Property market behind in townships

By Staff Writer
Despite South Africa's property market stabilising in metropolitan areas, the housing market in townships is lagging behind.

According to First National Bank's (FNB) township house-price index, in the fourth quarter of 2009 township house prices were down by 6.6% compared to the previous year and 2.9% on the third quarter of the same year. The index is based on transactions registered at the deeds office.

Here are some more facts:

  •  The average price of a township house is down from R268 021 in the fourth quarter of 2008 to R250 255 in 2009.
  • In contrast, the price of homes in more urban areas has increased by 0.1% compared to the third quarter of 2009 and the average price of a house in metropolitan areas is around R856 060.
  • The market's weak performance in townships is a vast contrast to that a few years ago when this market achieved growth of 38.1% in the fourth quarter of 2006.

Most people consider property to be a stable and good investment. Whether you are a first-time buyer looking to obtain your first home loan or whether you are remortgaging, it is always best to seek professional advice and shop around for the best deals. Buying a home is a big and life-changing decision.

If you already own a home and you are currently renting out your property, or you are considering doing so during the 2010 Soccer World Cup, one of your biggest concerns should be tenants wreaking havoc. Make sure you have the right type of insurance in order to save yourself some trouble just in case a football hooligan decide to take out his team's loss out on your couch.

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