The best time to invest in property is NOW!
Category Property Advice
Why do people buy property as an investment? Some prefer to diversify their investment portfolios by adding on property, while others may require additional income generated through buy-to-rent properties. According to Stats SA, the country's economy is lingering around a technical recession since September. This does not forecast well for the local property sector, however this does become the best time to invest in property.
This recession generally translates into a "buyer's market" making it a great investment period. Commonly used to describe real estate markets, a buyer's market exists when supply exceeds demand, giving purchasers an advantage over sellers in price negotiations. In contrast, the seller's market sees demand exceeding supply and owners have an advantage over buyers in price negotiations.
Susan Turner, Managing Director of Knight Frank shares some insight on what buyers should take note of when deciding if a property is a good buy. "Location, location, location! If your budget allows it, try going for a smaller property in a better location". If the buyer is interested in an investment property they should consider: "What is the likely rental and then minus any levies. This will provide the yield. Generally a net of 4% and upwards is the norm." When considering a property as an investment, buyers will need to: "Make sure there are no special levies in the pipeline if you are buying sectional title. See what the neighbours are like? Is there secure parking? Can you rent it out short and long term?"
Turner also highlights two great investment opportunities. "Green Point is very successful for investment properties, especially in buildings that you can short term let in (i.e Airbnb)." Real estate in Green Point consists predominantly of modern mid-rise apartment blocks and restored Victorian-style homes, with balconies and trellises. It is a popular residential destination for a younger market of homeowner often working in the area. This vibrant suburb is also very close to the city centre, Long Street, Company Gardens and the fantastic amenities and activities that can be found here. Green Point attractions include: Green Point Market, Atlantic Seaboard Beaches, Green Point Stadium, and Signal Hill.
2 Bedroom Apartment For Sale in Green Point - R4 495 000
The beautifully renovated, third floor, two bedroom apartment with balcony and covered parking with 24-hour security is ideal as an Airbnb investment or easy living home. It features an open plan designer kitchen, is pet friendly, and has reverse cycle air-conditioning (hot/cool) in the living/dining area.
"Claremont is yielding very well for clients as it acts as a hub for the Southern Suburbs." says Lisa Connellan, Sales Manager. Cape Town is only a short 20-minute drive away when following the M3 and is also accessible via the Metrorail. Claremont is divided into Upper and Lower Claremont and as the name suggests, the Upper Claremont is home to pricier properties and boasts a cosmopolitan feel.
1 Bedroom Flat For Sale in Claremont - R1 650 000
The north-facing apartment, is located on the top (9th) floor. The kitchen features well-designed maplewood veneer with hardstone tops and includes an undercounter oven, hob and extractor, washing machine, dishwasher, tumble dryer, fridge/freezer and microwave. The kitchen flows to the large living room. The bedroom, with built in cupboards, has an en-suite bathroom, a vanity unit and toilet. A balcony is accessed through a sliding door leading from the living area and offers views over the swimming pool.
If you are looking for the perfect property to invest in, Knight Frank is the leader in real estate investment in South Africa. Contact us for more information on the local real estate transaction and how to secure your next investment.
Author: Knight Frank
