Parow area a hot res­i­den­tial mar­ket for the up­wardly mo­bile

Weekend Argus (Saturday Edition) - - PROPERTY -

THE PAROW Val­ley and Parow res­i­den­tial mar­ket i s still at­trac­tive to large num­bers of up­wardly mo­bile mid­dle-class res­i­dents – and a few down­scalers – who can­not af­ford most of the south and cen­tral Cape Penin­sula home prices, ac­cord­ing to Alvin Suk­lall, the Raw­son Prop­erty Group’s fran­chisee for Parow Val­ley and the sur­round­ing ar­eas.

“Al­though the area has its fair share of R1 mil­lion to R1.3m prop­er­ties, most homes here are sell­ing for be­tween R750 000 and R950 000 and this is seen by many peo­ple as af­ford­able.

Fur­ther­more, prices in the area have shown a ten­dency to be sta­ble de­spite the quite se­vere dips of 2008/2009 and much of 2012.

“A home we re­cently val­ued at just over R1m was bought in 2002 for R330 000.”

He said the rel­a­tive sta­bil­ity of home prices had had one re­gret­table ef­fect: there was still a ten­dency among large num­bers of sell­ers to over­price their prop­er­ties. Re­cently, he said, he gave a val­u­a­tion of R700 000 on a home, for which the owner then re­fused to ac­cept a sales price be­low R950 000. He said this kind of sit­u­a­tion hap­pened quite of­ten in ar­eas where most homes were priced be­low R1m and this al­ways pro­vided the agent with dif­fi­cul­ties.

“An even big­ger chal­lenge than per­suad­ing clients to ac­cept the val­u­a­tion, is that po­ten­tial buy­ers do re­quire a fair amount of ‘fi­nan­cial ed­u­ca­tion’. All too of­ten, they are un­aware of the Na­tional Credit Act and the im­pact it has had on banks grant­ing bonds. They are of­ten also un­aware that in most cases de­posits will be re­quired and very of­ten, too, they don’t re­alise that a pur­chase of this kind in­volves ex­tra costs.

“With many of the buy­ers who come to us, it soon be­comes ob­vi­ous that they have no de­posit at all and ex­pect 100 per­cent or even 110 per­cent loans, which checks on their credit rat­ings by the banks will au­to­mat­i­cally rule out.”

Be­cause so many po­ten­tial buy­ers can’t get home loans, the de­mand for rental prop­er­ties in Parow Val­ley and Parow is at an all-time high. This is why Suk­lall’s fran­chise has diver­si­fied into the rental mar­ket. He said a typ­i­cal three-bed­roomed home would prob­a­bly rent for be­tween R5 500 to R6 000 here and a two- bed­roomed flat for around R4 500.

Suk­lall said that ad­ja­cent sub­urbs such as Elsies River, Ravens­mead, Val­halla Park and Bon­te­heuwel had all proved to be good step­ping stones on the move up to Parow and Parow Val­ley, and homes there could be val­ued from R200 000 to R500 000.

● Call Alvin Suk­lall on 083 3 0 1 7 1 0 9 o r e - mail p a r ow val­ley@raw­son­prop­er­

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