Average house costs R924 800

On a another note wouldn't it be a more cost effective option to buy just and stand and build your own house on it?
 
Jase said:
Eastern Suburbs of PTA
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See...there's the problem... nah, kidding, don't know where that is... :p

I'm from Cape Town, but I've been looking around Jozi, I'm starting to think the general rule should be that Cape Town is way over priced.
 
air said:
Hey All

In terms of the average price, it can be a tad misleading I think. It depends on the number of houses sold in what price bracket. If you sell more houses in the upper end, you averages will track higher.
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Not misleading at all
The Absa House Price Index is based on the total purchase price of houses in the 80m²-400m² size category, valued at R2.7m or less (including improvements), in respect of which loan applications were approved by Absa.
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Quite precise I think.
Not to long ago it was R750K, then R800K now this. It is a reflection of the actual sales within the above category and the trend is constant.
Home owners want their bond rates separate from the 'now climbing' interest rates, this will be a turbo boost and accelerate this value growth even further.
Will have to wait and see how it all pans out.
 
Elf1nDrak3 said:
On a another note wouldn't it be a more cost effective option to buy just and stand and build your own house on it?
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I believe you are looking at about R5k/sq metre, and then you have to deal with builders, who rate lower than lawyers, panelbeaters and used-car salesmen in my book.
 
xrapidx said:
See...there's the problem... nah, kidding, don't know where that is... :p

I'm from Cape Town, but I've been looking around Jozi, I'm starting to think the general rule should be that Cape Town is way over priced.
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Ahh, now there is there problem!:D You are too spoilt. I sold my place in Durbanville for double what I paid for it and that was over a 2.5yr period.
CT has priced itself out of the average Joe's pocket TBH.

But to really comment on the average price of houses I would say that places in the average middle class areas of Gauteng the going rate would be from 1mil to 1.6m or so.
 
Jase said:
Ahh, now there is there problem!:D You are too spoilt. I sold my place in Durbanville for double what I paid for it and that was over a 2.5yr period.
CT has priced itself out of the average Joe's pocket TBH.

But to really comment on the average price of houses I would say that places in the average middle class areas of Gauteng the going rate would be from 1mil to 1.6m or so.
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Exactly... now what single person can afford that? I earn a good salary, and could make the bond payment, but would be screwed if the interest rate went up even half a percent on a 100% bond of that amount.
 
hrm well cape town is expensive.. but i think its everything in SA that is messed up. i reckon there needs to be a serious correction someday cause i doubt it will auto fix itself, what people earn and what things cost don't make any sense in SA unless u earn serious cash or work overseas.
 
Ye tawt bout this, the only way for me to buy a house is to marry someone earning the same as me!:o
 
Tito Mboweni might have something here:

http://www.fin24.co.za/articles/eco...px?Nav=ns&lvl2=econ&ArticleID=1518-25_2007387

Look at:

"Mboweni said South Africa had an inflation targeting framework where the central bank targeted inflation directly, but it was measured on CPIX - consumer price inflation minus mortgage costs."

And then

"But maybe we didn't think through this thing very well at the beginning ... because whenever we implement monetary policy changes the first impact is on mortgages and we ... within that we should investigate the possibility of approaching the mortgage interest rates ... so that (the mortgage system) becomes independent of the volatility of prime interest rates."

and

"Noting that there were "so many people" with no assets or property who now wanted to get into the South African property market, he said the volatility of interest rates "is not of assistance to them at all"

In other words "ooops, we made a mistake". This is what I have been moaning about for ages.
 
Jase said:
Tito Mboweni might have something here:

http://www.fin24.co.za/articles/eco...px?Nav=ns&lvl2=econ&ArticleID=1518-25_2007387

Look at:

"Mboweni said South Africa had an inflation targeting framework where the central bank targeted inflation directly, but it was measured on CPIX - consumer price inflation minus mortgage costs."

And then

"But maybe we didn't think through this thing very well at the beginning ... because whenever we implement monetary policy changes the first impact is on mortgages and we ... within that we should investigate the possibility of approaching the mortgage interest rates ... so that (the mortgage system) becomes independent of the volatility of prime interest rates."

and

"Noting that there were "so many people" with no assets or property who now wanted to get into the South African property market, he said the volatility of interest rates "is not of assistance to them at all"

In other words "ooops, we made a mistake". This is what I have been moaning about for ages.
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But this is good for us, all those rich punks that bought houses might not be able to afford them now so the auction houses must be packed!!
 
JK8 said:

But this is good for us, all those rich punks that bought houses might not be able to afford them now so the auction houses must be packed!!
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And the person who will be able to afford them is the next richest person ....
 
How do you start a poll thread? I want to know what everyone earn's anonymously... should be interesting to see how many can/can't afford a home.
 
My brother applied for a 550k home loan... he only qualified for 120k... I offerred to cover the rest... I can do 1.6m...but like i said, I'm screwed if the interest rate changes... .5 basis points is a lot/pm on that amount.
 
Its quite sad that I wish i started working 4 years earlier(woulda been in std.7 then) because then i would have been able to get a house just before the property boom.

Ive been working now since 2001 and steadily getting paid better and better and only now am i starting to feel like im earning a decent salary(bout R11k a month). The chances for me to get a new house is almost none existant. The best i can qualify for is about R280k :( so that kinda rules out any houses nowadays.

Honestly the last time i saw a house that was affordable for my salary it was in khayelitsha :(
 
I think a good idea would be to buy a cheaper house in a smaller town that is experiencing a property boom. Keep it for argument's sake for a few months and then sell with profit. Buy the next one and the next, and before you know you'll have a sizable deposit to put down on your own house. Just make sure about average rentals etc. in that town so that you won't loose out.
The other option is to generate a second income to increase your chances to qualify for a bond.
 
I taught I wasted 60k on a piece of land, I bought it because I read a book bout investing in property, all that sand and grass is now worth 700k!!!:eek::eek::eek:

:)

Wish I knew where the next best piece of earth is!:confused:
 
JK8 said:
I taught I wasted 60k on a piece of land, I bought it because I read a book bout investing in property, all that sand and grass is now worth 700k!!!:eek::eek::eek:

:)

Wish I knew where the next best piece of earth is!:confused:
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I rekon Mars or the moon...
 
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