Finding the right investment property
Category Property Advice
Cape Town is a hotspot for keen property investors, as it consistently ranks among the world's most desirable destinations. That makes finding the right investment property in Cape Town all the more tricky. You're spoilt for choice, and must be ready for the competition.
Choose your property investment goal
Before you begin your Cape Town investment property search, you must settle on your investment goal. Are you looking to invest in a property that will bring you additional income? Alternatively, you may be looking for a property that increases in value over time. Perhaps, you may even be looking to buy now, so you can retire in your investment property later. Whatever your property investment goal may be, setting it down helps you begin to plan towards achieving it.
Determine your risk tolerance
Choosing an investment property does come with a set of risks. If you invest in a property that's located in an area that goes through some level of upheaval, you may find your property decreasing in value. Economic volatility, and property market fluctuations, will also play a role. Determining your risk tolerance is closely linked to your property investment goal. Once you know how much you're willing to risk, you can begin to drill down to some details.
Carefully choose your location
Your property investment goal will be closely linked to your location choice. When you're choosing your investment property's ideal location, consider the following factors too:
- Proximity to amenities: Cape Town's suburbs are well laid out, giving residents relatively easy access to shops, hospitals, and public transportation. No two neighbourhoods are the same though, so carefully consider amenities and facilities as you begin to settle on your ideal location
- Security: No matter whether it's mountainside or in the city bowl, security is a key deciding factor for your investment property. An active neighbourhood watch, for example, is a good thing to have when you're looking to invest in a property.
Select your property type and size
The Cape Town property landscape is a mixed bag of mansions, apartments, townhouses, comfortable family homes, and more. Once you know your ideal location, you should easily be able to find the right type and size of investment property.
Begin your property search
Now that you know where to start looking, you can define your search criteria a little more by looking at:
- Your investment property budget: Whether you're looking to buy an investment property with all cash, or have been pre-approved for a bond, your investment property budget will define what you're optimally looking for
- The condition of the property: Are you willing to invest more money into a fixer-upper, or are you looking for a property that is ready to go?
- The property's facilities: Energy efficient properties, and properties who have alternatives to relying upon municipal utilities, like water and electricity, are considered essential nowadays
Close the deal
Once you've found the right investment property, you're going to need the right advice. That's where Knight Frank steps in. We help you navigate the legal complexities, the negotiations and, of course, closing the deal on your investment property.
Author: Knight Frank
