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12.5% of houses bought in 2016 were second homes

benguela-cove-homes-and-mountainsThe number of second properties owned by individuals is estimated at 16.2% of all properties identified using deeds office data – and growth is currently near to zero.

This is according to John Loos, household sector strategist at FNB, who said secondary properties included those for buy-to-let purposes as well as for use by relatives, leisure purposes and other non-primary residence motives.

“In the FNB Estate Agent Survey, too, we have witnessed a slight annual decline in the estimated percentage of homes believed to be bought for secondary purposes, from a multi-year high of 13.3% of total home buying in 2014 to 12.5% in 2016,” he said.

hometimes@pixelbaste.com

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  • Martin 17th January 2017

    One of the reasons for the decline in 2nd home purchases are that the entry level market 1st time buyers are increasing and the available new development entry units are overprized (as usual).
    More reasons in the decline of 2nd or more purchases are.
    – Credit Act
    – Unwise spending on liabilities (no extra money to invest)
    – No investment culture
    – Investing in stocks etc.
    – Political instability
    – Decline in employment
    – Bad real estate investment experience (lack of property investment knowledge)
    – More competition for business owners resulting in a decline on the bottom line
    – BAD DEVELOPMENTS
    – No real value for the unsofisticated buyer/investor

    0% Growth is only achieved (on capital value) on average if there are -15% to + 25% Growth areas. More – 2% units than +16% units ofcourse, but your average will mathematically mean 0%.

    BUT There is more to the wealth creators equation correct?
    – Dont buy R10 property for R10
    – Rental income
    – Ways to increase value
    – etc….

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