Posted by: pathetic | 2004/10/20

What is happening to this country

One of those days when you are fighting inside with everything. I live in Cape town. I was planning on buying a place next year, and was very excited about it. Unfortunately when I looked at what was available i couldnt believe it. I was told that houses that were R350 000 a year ago(I was going to purchase then) is now going for R550 000 - R700 000 in the Northern Suburbs. These are 2 bedroom houses. How is this possible, doesnt the Government look after it people. On 90% of the sites which sell property, South Africa is catering for the overseas market and every price is in Euros and Pounds. As a first time buyer, i cannot believe this Country. What will happen one day when I have a child, will they even be able to live in this Place.

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Our users say:
Posted by: Nuffing | 2004/10/21

We bought for R320k just over 5 years ago, and just sold for R980K!!!! In Cape Town Southern Subs...

We have improved the place, but it still needs work.

We have bought in Rondebosch now for R1,76M

Property is the best investment you can make! Especially in Cape Town where there is always more demand than supply...

Reply to Nuffing
Posted by: Annie | 2004/10/20

This is the reason my me and my b/friend left South Africa and moved to the UK for 6 years. We have already bought 4 small houses in Cape Town. Thats great but to live away from friends and family sux! I hope South Africa does not end up like the rest of Africa. Like Zimbabwe etc.

Reply to Annie
Posted by: Jenna | 2004/10/20

Hi First Timer

Don't kick yourself for not buying earlier. The way I see it, a person buys a home when and if they are ready. Some people were ready earlier than others. So hang in there, your time will come.

Reply to Jenna
Posted by: BEE | 2004/10/20

Price increases are good for us home-owners, obviously not for first time buyers. Bought in Pretoria 5 years ago for R270 000 and was recently offered R710 000! Not bad, but very scary. I wouldn't consider paying that sort of money for this house!

Reply to BEE
Posted by: First Timer.. | 2004/10/20

Thanks for advice guys, was going to wait until Feb/March anyway and see what happens. Kicking myself though, had the opportunity to buy a few years back in a developing area and decided no to. Oh well no use crying over it hey..

Reply to First Timer..
Posted by: Estate Agent 2 | 2004/10/20

I also see that they say if you buy below 2.2 mil you are of low income and above 4.2 then you are rich ?

Reply to Estate Agent 2
Posted by: Estate Agent | 2004/10/20

Inside info is that it's already dropping so stick around a while you are going to get a bargain March / April next year..

Reply to Estate Agent
Posted by: Mindful | 2004/10/20

Dear First timer,

I studied in this direction. We were taught that while the interest rates are low, property prices increase, and similarly when they're high, property prices decrease. I wouldn't base any huge decisions on this - it's more to do with monthly payments. The higher the interest rate, the higher you have to payback. And then homeowners find themselves thinking it would be more economical to sell. Similarly, when interest rates are lower, the monthly payments are lower, making it a renters market, and thus prices go up. It's just a guideline though (and I don't think I explained it very well!)...don't make huge decisions based on that though.

Reply to Mindful
Posted by: First timer.. | 2004/10/20

I was looking to buy next year for the first time but geez the prices are ridiculous..I'm single so no dual income, went to look at a bachelor pad, nothing special, like a studio apartment and they wanted 400k!!! Do you think the prices will drop or just carry on getting even worse, the bubble has to burst sometime doesn't it?

Reply to First timer..
Posted by: Chelle | 2004/10/20

It's what happens when you become a global player. We can't reap the benefits and then be protected by the downfalls. Housing in SA has always been relatively cheap. I must add that I live in area that is not being sought after by foreigners, but the prices in the area have escalated by almost 50% over the last 2.5 years. I bought just in the nick of time.
I'm not sure that the government can do anything to control house prices to a great extent - it's already subsiding low income housing, are we now expecting this net to be expanded?
It would mean more taxes and then more complaints about what is the government doing with the money.
Not that I don't sympathise with those who are having difficulty - I really do. I count myself lucky, but blaming the government for everything is getting a bit tiring in my opinion.

Reply to Chelle
Posted by: Mindful | 2004/10/20

I'm one of the lucky ones... I bought 2 years ago - a 2-bedroom townhouse with lockup garage and own garden for R252k. (Pretoria) 6 months ago I was offered R350k for the place! My friend just bought herself a 1-bedroom flat for R400k. Another friend recently made an offer for a 2-bedroom house for R700k and was rejected. It's really getting out of hand now!

Reply to Mindful
Posted by: Star | 2004/10/20

Agree with you, an ex-colleague just sold her 1-bedroomed flat for R180 000. She bought it sometime in 2002 for R122 000. I was shocked!!! and of course she was over the moon! Also in Cape Town.

Reply to Star
Posted by: A | 2004/10/20

Also Capetonian and let me tell you if we hadnt bought last year Nov we would NEVER have been able to keep up with the prices this year. We basically dove head first into into it - not knowing whether we were doing the right thing - but hell, thank goodness we did!! I feel for you because I know how scary it was for us.

Start small - at least you will have one step in the property market.

Reply to A
Posted by: Paul | 2004/10/20

Im with you its sick

Reply to Paul
Posted by: Shaun | 2004/10/20

Too true!!! Housing & accommodation prices have climbed so steeply recently that its scary. I wonder what we as actual residents of this lovely country can do about this if anything at all? It is worrying to know that we as residents don't reap the real benefits!!!


Reply to Shaun
Posted by: Jenna | 2004/10/20

I could not agree with you more. It is truly sickening. It seems that there is no hope of purchasing a decent home unless you are stinking rich.

Reply to Jenna

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