Thrifty Thorn­ton’s home prices hit the roof

Weekend Argus (Saturday Edition) - - PROPERTY -

PROP­ERTY prices have soared over the past year in the af­ford­able Cape Town sub­urb of Thorn­ton, says Linette Smith of Jawitz Prop­er­ties Pinelands.

“At this time last year, en­try level homes were priced be­tween R850 000 and R950 000, but this price point has in­creased to R1.1 mil­lion. Homes that sold for R1.1m last year are now priced at R1.3m.

“A re­cent sale shows that in just one year R200 000 can be added to the price tag of a prop­erty. We sold a home ex­actly a year ago for R1.05m and we’ve just resold that same prop­erty for R1.25m. Val­ues are in­creas­ing quickly,” Smith says.

She says prop­er­ties that come on the mar­ket barely make it to be­ing ad­ver­tised. Buy­ers on the books are snap­ping up stock as soon as it be­comes avail­able, even com­pet­ing against each other. This con­trib­utes to the price hikes.

Thorn­ton has al­ways been an af­ford­able sub­urb and is al­most seen as a gate­way into the south­ern sub­urbs of Cape Town such as Pinelands. Buy­ers don’t al­ways live there for the long term and it’s re­mark­able to see, with prices in­creas­ing so quickly, the re­turns on in­vest­ment they’re achiev­ing.

Smith says town­houses are among the best in­vest­ments as they at­tract the most in­ter­est from ten­ants. Rentals for a twobed­roomed town­house can be be­tween R5 500 and R6 800 a month.

She says some of the prop­er­ties in Thorn­ton are in need of ren­o­va­tion and al­though there are buy­ers in the mar­ket for fixer-up­pers, th­ese homes don’t com­mand high prices as the ceil­ing for the mar­ket is about R1.5m, and buy­ers should be wary to over-cap­i­talise.

“If buy­ers do up­grade their homes quite a bit, they will need to wait at least five years to make it worth­while to sell.

“Sell­ers in Thorn­ton do best if their prop­er­ties are well­main­tained, but they don’t have to have ev­ery mod­ern con­ve­nience.

“Th­ese prop­er­ties are 65 years old, most of them have been re­vamped over the years, and buy­ers here are gen­er­ally look­ing to move straight in with­out hav­ing to do re­pair work.”

Thorn­ton of­fers value for money where the av­er­age plot is 600m2, and it is in a con­ve­nient lo­ca­tion, close to the ar­te­rial roads that pro­vide quick ac­cess to the CBD and the air­port. It has its own small train sta­tion and re­cently, the face of Thorn­ton has been im­proved.

“There’s been some up­grad­ing, the area looks good and the av­er­age prices are demon­strat­ing that Thorn­ton is a good place to in­vest,” Smith says.

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