The big question: what sort of property to buy?

The uncertain economic climate has prospective homebuyers and investors queuing for advice about the best investment opportunities.

"The biggest question on buyers and investors' minds today is what sort of property they should buy," says Martin Schultheiss, CEO of the Harcourts Africa property group.

"They weigh the benefits of older properties against those of units in new developments, urban against suburban units, and rural homes against units in golf estates. But the simple answer is that the situation changes all the time.

"For instance, in the current market there is no doubt that the biggest growth in value is at the bottom end of the market due to the number of people migrating to a better lifestyle. But less than five years ago, golf estates yielded returns of 30% or more and investment in leisure was one of the best choices you could make.

"However, there is a golden rule in property investments that serious investors and keen homebuyers should heed, namely, property returns are not about when or what you buy or sell, but how long you are prepared to stay in the market."

Schultheiss adds that local investors had become accustomed to making returns of up to 30% in the relatively short space of 18 months. "Now that this figure has dropped significantly there has been much talk about property being a 'bad' investment.

"However, we firmly believe that property remains a sound investment that will yield good returns for those investors who are prepared to stay in the market over the medium to longer term, with the time that you remain in the market determining the returns you finally make," he says.

"For instance, if you ask an elderly couple still living in their first home, they will probably tell you that they bought the property for R25 000 - which was a huge sum in those days - but that the current value is close to R1m, in today's money."


  Comment on this Article

  Please login to post comments

Post to my facebook wall
Characters remaining

    Latest Property News
    • 23 Nov 2017
      If you are looking to sell your home in today’s real estate market, there are certain things that you need to include both inside and outside your house. Today’s generation of home buyers is looking toward a more eco-friendly, energy and water conscious home, and if your house stands out then you are more likely to be able to sell it.
    • 22 Nov 2017
      Most people know of the Community Schemes Ombud Service (CSOS) and that levies must to paid to fund its operations. In this article the experts at Paddocks will address some of the issues that are causing confusion.
    • 22 Nov 2017
      While sales have noticeably slowed in most sectors in most Cape town suburbs, the security estate sector in Constantiaberg has bucked the trend by remaining buoyant, with sales by August this year already surpassing total sales in 2016.
    • 22 Nov 2017
      The end of the year is fast approaching, and so are all the travellers, tourists and holidaymakers. For those who live near or own a property in a holiday-hotspot, the festive season also brings with it an abundance of short-term rental opportunities. Its a great way for property owners to make a few extra rand for their own holidays or to put towards their savings.
    • 21 Nov 2017
      The buying process is over, and the moving truck has delivered your household goods to your new property. Now it’s time to unpack and turn your new house into a home.
    • 21 Nov 2017
      When an offer to purchase a property is signed by both buyer and seller, this constitutes a binding agreement or “Deed of Sale” between the two parties. However, in most cases the “standard contract” might not be enough to cover all the specifics pertaining to the sale. The agreement may require some additions or alterations to clauses, which needs an expert hand in the drafting of such
    • 21 Nov 2017
      As more and more South Africans look to invest in property abroad, Spain is offering them one of the best deals in global real estate.
    • 20 Nov 2017
      Since 2012, sectional title complexes have been leading the South African property market, not only in terms of price growth, but sales volumes as well. Remaining relatively strong, even in the face of 2017’s political and economic turmoil, experts say this market segment could offer valuable insight into South Africans’ property purchase priorities.
    Subscribe to the MyProperty Newsletter

    Last Name  
    Email Address  
    Email Frequency
    Share this Page

    For Sale Property
    Rental Property
    More Options
    Connect with us