What you can get in Mbombela (Nelspruit) for the average first-time buyer home loan

Buyers may be facing a tough economic climate, with high interest rates and the general cost of living on the increase. But that hasn't slowed down market activity and the thirst for homeownership. According to Rhys Dyer, CEO of ooba Group, there was an 8% increase in home loan application volumes in Q1 2024 compared to Q4 2023. 

If you're among the many South Africans eager to take that first step onto the property ladder, this could be your golden opportunity. There are positive signs on the horizon and the right area like Mbombela (Nelspruit) can ideally cover the average first-time buyer home loan.

Affordable Mbombela properties up for sale

According to data from Standard Bank, the average loan value approved for all first-time buyers in the past three years stands at R975,000. This is good news for those eyeing up property in Mbombela. In late 2023, Property24 found house prices were at an average of just over R1,090m, and R745,000 for sectional title properties. With its temperate climate, economic opportunities, and world-class amenities in healthcare, shopping, schooling, and entertainment, the area also boasts plenty of appeal for first-time buyers. 

Here are examples of beautiful properties under R975,000 you can find in Mbombela:

• One-bedroom apartment in West Acres Ext 24: This ground-floor unit includes a small study, making it the perfect home for a student or work-from-home professional. It has a modern, open-plan layout and is close to Ilanga Mall, popular schools, and other amenities for convenient living. Price: R480,000.
   
• One-bedroom sectional title in Sonheuwel: This home's 'hot' location makes it a standout. It lies within walking distance to the CBD and The Village Shopping Centre and driving distance to Mbombela's top schools. The spacious property features its own balcony with scenic views of the cityscape. Price: R540,600.
   
• Two-bedroom apartment in Nelspruit Ext 29: Located in the sought-after Lockwood Estate, this complex home is an entertainer's dream. It has an open plan kitchen and living area, which leads onto a balcony with a built-in braai. Price: R800,000. 

Now's the time to buy property

Dyer says home loan providers are doing their part to create a favourable environment for home buyers in light of the challenging property market. By offering attractive discounts to prime, prospective homeowners can have a welcome relief from high interest rates and monthly instalments. 

Besides the better rate discounts, many home loan providers are also relaxing terms and conditions to make home financing more accessible. Standard Bank, for example, registered home loans that were made up of nearly 50% first-time buyers. The bank also qualifies first-time buyers for up to 108% of the purchase price subject to risk assessment offers. This can help cover upfront costs like bond registration and transfer fees, making it easier to get the keys to that dream home. 

Also on the positive side, industry experts predict interest rate cuts and a downward cycle later this year. If buyers get their foot in the door now and secure a property, they can make a good investment before house prices start increasing. At present, it is a buyer's market in many parts of Mbombela, giving savvy buyers their choice of properties at very competitive pricing.

Make Mbombela your home sweet home

Mbombela's property market is ripe with opportunities for buyers, especially first-time homeowners. With property prices still relatively affordable compared to other major South African cities, now is the perfect time to invest. Kellaprince Properties is committed to guiding you through this exciting journey. Our experienced team is dedicated to helping first-time buyers, from finding the perfect property to securing the best home loan. Reach out for assistance today.