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 Feb 2018
      RE/MAX Property Associates’ Table View Office, which services property buyers and sellers along the Table Bay coastline and surrounds, has recently sold a home in Woodbridge Island for R11 million – the highest price paid for any home in the sought-after security complex.
    • 23 Feb 2018
      Choosing to invest in an overseas property can be daunting. But as more and more investors recognise the value of a diversified portfolio that includes property outside of their own country of residence, international property investment is growing in popularity.
    • 23 Feb 2018
      The positive change in South Africa’s political landscape is paving the way for an upswing in the local property market.
    • 22 Feb 2018
      An excellent credit score is one of the most priceless assets a potential home buyer can have. This tool has the power to secure favorable mortgage and refinancing rate, influencing everything from the size of the loan repayment to the interest rate on the home loan.
    • 22 Feb 2018
      What do you do if you love your home’s location and the area, but the home no longer fits your growing family’s needs? Do you stay and renovate your existing home or find a home that meets your developing criteria?
    • 22 Feb 2018
      While every owner wants to sell their property at the best possible price, overpricing a home can be the kiss of death for a sale.
    • 21 Feb 2018
      Given the hand they were dealt, government has performed a delicate balancing act which it is hoped will serve to reignite confidence in investment in South Africa, regain our global credibility and satisfy the credit ratings agencies, says Dr Andrew Golding, chief executive of the Pam Golding Property group.
    • 21 Feb 2018
      The real estate mantra, ‘location, location, location’ remains a strong market influence regardless of the prevailing economy, with suburbs like Rondebosch enjoying the buffering benefit of being ideally situated.
    Subscribe to the MyProperty Newsletter

    Last Name  
    Email Address  
    Email Frequency
    Share this Page

    For Sale Property
    Rental Property
    More Options
    Connect with us