Consumers in the upper income groups may be scaling down and buying less expensive homes, but those in the lower income groups continue to pay more for their properties, according to the latest statistics from BetterBond, SA’s biggest bond originator.
Its CEO, Rudi Botha, says the figures show the average home purchase price paid has declined over the last 12 months in all income categories above R35 000 a month, the biggest decrease (2,4%) being among individuals who earn between R35 000 and R40 000 a month.
He says: “We believe there are two reasons for this, the first being that sellers are more willing to negotiate price at the moment. The second reason is the mounting cost of operating and maintaining a home, thanks to rising property taxes, municipal service charges and security fees. Many higher-end homeowners are trying to contain this now by down-scaling to smaller properties.”
Meanwhile, the average home purchase price paid has increased over the last 12 months in all income categories between R15 000 and R35 000 a month, with the biggest increase (8,6%) occurring among individuals who earn between R15 000 a R20 000 a month.
Botha says this pattern reflects the preference that lower income buyers have for homes in new developments, where above-inflation increases in building input costs continue to drive up prices, but their maintenance costs over the first few years of home ownership are likely to be minimal.
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