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.

Recent Articles

Featured Register your customary marriage or lose the right to inherit estate

December is that time of the year when we will see at least one suitor sending his uncles to negotiate the price of his future wife. Lobola, as the bride price is known, has always been an important element of the African marriage.

Read more

Changing from one medical scheme to another - effortlessly

It is coming up to the end of the year and you might be looking to change medical schemes, or options within a scheme in preparation for the new year. While you don’t necessarily have to wait for year-end to do so, providers often recommend it.

Read more

Your guide to financially surviving Christmas

There are a few times each year where you need to dig deeper into your pocket and spend more money such as birthdays, anniversaries, and the Christmas period. Whether you celebrate this religious holiday or not, the festive period - depending on how you choose to spend it - means increased travelling, buying of gifts, entertaining, and eating out at restaurants.


Read more

Trump, Trump and a little bit of South Africa

What a November we had, with the rand staging one of its best months and closing below the R14.00 level. To be honest, this looked like quite a far-fetched possibility at one stage during the month. It seems that the tide has changed a little, even though it might be short lived since the US dollar bulls are not so sure of their case anymore.

Read more

Sign Up

To our weekly newsletter for advice you can bank on

Deals

Free iCollege Scholarship

Price: R600
When: Until 16 May 2019
Where: Nationwide

Telkom December Big Deal

Price: R459 pm
When: Until 31 December
Where: Nationwide

Money Savvy Kids Giveaway

Price: R450
When: 8 December
Where: Johannesburg (Milpark)