Middle income properties dominate market

price.
This market holds the most diverse properties in terms of both preference and price.
Some properties can be as low as US$45 000 with land sizes as small as 500 square metres while other properties can be priced as high as US$120 000 with land sizes in excess of two acres.
I know that most will easily become confused as to what can qualify for high-density (low-income) housing or low-density or high-income housing.
It will not be remiss to unequivocally state that in this particular market, there are properties that deserve to be on either side of the income spectrum.
With such a diverse spectrum within one market the absorption rate is affected when it comes to consistency, so many variables affect the rate at which the properties are purchased in this market.
It is generally accepted that this year the economy has experienced liquidity constraints whose ripple effects were felt in every facet of real estate sector.
It is, however, worth noting that the absorption rate in some areas remained stable, in others it increased while in other areas it actually reflected the true economic conditions affecting other industries through slow absorption.
This mixed bag of absorption is premised on a few variables.
The most common being the preference of business to move into these middle income areas for utilisation as offices or work premises.
The proliferation of starter or new indigenous business plus the deterrent prices of properties located in the central business district has influenced this.
This heightens the demand of those properties that are located in proximity to essential services, example major roads, schools or shopping complexes.
The availability of mortgage finance by building societies and companies also affect the movements of properties within this particular market.
It is preferred more than the high-density areas because most properties in middle income areas have title deeds.
It is a prerequisite for financial institutions to only bond immovable properties with full title as they offer the best security. It is also an added advantage that properties within these areas offer a benefit or facade of security plus esteem in the society.
An investor who invested in these areas before 2011, will be pleased with the average price increases experienced in these areas since the same period last year.
Some areas that have experienced notable increases include Old Malborough, Malbereign and Strathaven.
Different reasons may be attributed for this with Malborough for instance being the attraction due to its stand sizes, Strathaven because of its proximity to business areas and Malbereign being a built up area that offers value retention.
The price increases have not been limited to just the stated areas, but have been experienced generally in the whole market.
It therefore remains that this bracket of the market remains ideal for investment as it offers not only value retention but a possibility of recouping benefits from investment. It still maintains a high demand when it comes to rental property.