Escalating interest rates, the more stringent demands of the National Credit Act and the increase in property values may have made it more difficult for first-time buyers to enter the property market.

But, says Pam Golding Properties’ MD for the Western Cape Mick Joyce, there are still numerous affordable options... even in Cape Town, where property prices have probably seen the biggest gains in the past few years.

So what options exist for first-time buyers in the market? There are actually plenty scattered all over the Cape Town metropolitan area. According to Joyce, it is still possible to obtain homes from around R450 000 to R650 000 or up to R1.2-million (probably more appropriate for dual income households in the first-time buyer's market).

Southern Suburb offers

This is especially achievable if there is familial support for the buyer — for example, parents assisting with the deposit on a home.

"In the Southern Suburbs, extremely affordable options can be found in Southfield, Wetton and Rondebosch East, where two-bedroomed homes can be bought from as little as R650 000," Joyce says.

Parts of Plumstead as well as Diep River offer three-bedroomed homes from around R900 000 upwards, which are proving popular with young couples and young families, due to the proximity to good schools.

Meanwhile larger families can opt for three- or four-bedroomed homes in Rondebosch East, Crawford, Lansdowne and Kenwyn, priced from R1-million to R1.2-million.

Newlywed-choices

Another popular area with first-time buyers is Observatory and its neighbouring Woodstock, where young newlyweds as well as investors are finding homes priced from R720 000 to R1-million — usually partly-renovated and semi-detached, with off-street parking and two bedrooms.

Professionals working at the new office parks at Black River Parkway may opt for three-bedroomed homes with garages or off-street parking, at up to R1.2-million.

Also in the Southern Suburbs, a variety of sectional title options are available in popular leafy suburbs such as Rondebosch, Newlands, Claremont and Upper Kenilworth, as well as lower Tokai, Plumstead and Wynberg. These range from older bachelor flats at R450 000 to new three-bedroomed units for up to R1.2-million.

The Atlantic Seaboard and South Peninsula tend to be out of reach of first-time buyers, due to their typically high prices. However one exception exists: Hout Bay. Here a handful of properties can be obtained for around R1.2-million. These tend to be new sectional title developments of around 50m², situated in the suburb’s central Valley area.

Buying in Goodwood

The Northern Suburbs of Cape Town also offer a number of opportunities to get an affordable home; especially for those working at the many companies which have migrated to this area in the last few years.

Flats can be obtained in Parow for as little as R370 000 (one-bed) to R650 000 for a townhouse or R950 000 for a three-bedroomed house.

Similarly flats in Goodwood range from R400 000 upwards, while a two-bedroomed home will cost around R700 000. Kraaifontein has similar price ranges, while in Edgemead, a small two-bedroomed house can be bought for R825 000.

Higher up the scale, townhouses can be obtained in popular Boston and Oakdale from around R750 000, while in Stellenridge, Bloemhof and Ridgeworth, entry level prices are at R950 000 for smaller homes.

Kuils River opportunities

Uitzicht offers three-bedroomed freestanding homes for around R1-million to R1.2-million. Another popular up-and-coming area is Kuils River, where a number of middle income buyers have already found three- and four-bedroomed homes for R1.2-million, as well as units in several new security estates.

Other options can be found along the Western Seaboard and its surrounding suburbs. Maitland and Rugby offer one-bedroomed flats from R390 000 up to four-bedroomed homes for R950 000, while in Phoenix and Brooklyn, two-bedroomed houses can be obtained for R420 000, ranging up to R750 000 for three-bedrooms.

In Parklands and Sunningdale, options for first-time buyers include two-bedroomed flats from R500 000 or free-standing homes from R900 000. Meanwhile in Summer Greens, a three-bedroomed house can be purchased for R580 000. The area is particularly popular with civil servants, police officers and members of Parliament, with its close proximity to bus routes being a key factor.

Close to schools

"The demand for affordable housing continues to be a major issue," says Joyce, "with areas close to work opportunities and schooling being most popular of all and as a result more valuable. The difficulty facing many buyers is that their first home is not necessarily located in their first-choice area due to affordability.

"However, with their earning potential, the improvement of many suburbs and investment into their new homes over time, these buyers will realise appreciation that will afford a move to their desired location in future."

Joyce says current buyers will continue to upgrade as their incomes increase, while new buyers will move up into the market as more employment opportunities continue to create new potential homeowners.