select
|

Avoid a World Cup property ‘own goal’

Property investors must avoid being caught up in the hysteria of the Soccer World Cup as the kick off draws ever nearer.
 
Colleen Gray, CEO of the CENTURY 21 property group, says there are unfounded expectations that the event will be an unlimited money-spinner for landlords.
    
“Press reports of homes on the market to World Cup visitors for exorbitant rentals have only fuelled these expectations, but ‘killings’ such as this are bound to be few and far between.
 
“Nevertheless investors continue to be lured by what can only be called market hysteria aided and abetted by ads along the lines of ‘Fantastic World Cup Opportunity’ and so on.”
 
She says that sensibly, short-term Soccer World Cup opportunism should not be the main driver for a property buying decision. The long-term financial viability of the property, post World Cup, has to come into the equation.
 
“In this respect, it’s relevant to quote an analysis by the German Institute for Economic Research (DIW), which found that the German property market would indeed benefit from its exposure to their World Cup, but only in the long term.
 
“The report implied that visitors to Germany would be exposed to local property opportunities and that this would ultimately lead to buying decisions.
 
“And I would expect to see a similar scenario here, particularly in terms of Cape Town and Durban, where property is world class and exceptionally good value in terms of Sterling and Euros for example. This would apply selectively, however.”
 
Gray says that this may all appear to be self evident, but that many property buying decisions are being taken now for the wrong reasons.
 
 “There has also been controversy surrounding the fees the FIFA organisation is asking for participation in their accommodation booking programme, which would reduce available profits to any investor/speculator, and recent media comment by the insurance industry have also warned property owners about the soccer hooligan risk.
    
“On the other hand there are right reasons for using the World Cup as a springboard for sensible property investments. For example, an apartment close to one of the new stadiums could well have a World Cup ‘afterlife’. It’s a question of doing your homework and applying common sense business principles.”
 
ISSUED BY
CENTURY 21 SOUTH AFRICA


  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 23 Jan 2018
      Many people only start thinking about home-ownership when they are ready to “settle down” or start a family, which is why first-time buyers these days are generally in their mid-30s, compared to those in the previous generation who were usually in their mid-20s.
    • 22 Jan 2018
      Moving away from the city to a country or coastal town and a slower-paced life is a frequent new-year resolution for South Africans, but thorough research should be done before you break free from the hustle and bustle, because making the wrong move could turn out to be a very expensive mistake, and even more stressful for you and your family than staying in the “big smoke”.
    • 22 Jan 2018
      Cape Town is home to many breathtaking and historic homes, but House Invermark designed in 1969 by South African architect Gilbert Colyn, with inspiration from two modernist icons: the Glass House by Phillip Johnson and Farnsworth House by Ludwig Mies van der Rohe is in a class of its own.
    • 22 Jan 2018
      2017 was a challenging year for the South African property market in general, despite small pockets of thriving activity in areas like the Western Cape. As we head into 2018, Tony Clarke, Managing Director of the Rawson Property Group, casts his eye forward to property trends and market influences that could make their impact felt in the New Year.
    • 19 Jan 2018
      Extending from Randfontein in the west to Roodepoort in the east and including the towns of Krugersdorp and Magaliesburg, the West Rand has a plethora of property available to residents who choose to make this unique area their home.
    • 19 Jan 2018
      When it comes to financial planning, doing the work to ensure you’re prepared for unexpected emergencies is just as important as ticking off your other goals and New Year’s resolutions. The beginning of the year is also the perfect time to review your various insurance policies.
    • 19 Jan 2018
      No surprises at the first Monetary Policy Committee of 2018, as Reserve Bank Governor, Lesetja Kganyago, announced that the interest rates would stay at their current levels.
    • 18 Jan 2018
      The Southern Suburbs make up some of the most popular residential areas in Cape Town, comprising charming groups of suburbs which lie to the south-east of the slopes of Table Mountain. It is seen as the city's most expensive residential neighbourhoods with a choice of various private schools, upmarket eateries, wine estates, beautiful homes and trendy apartments.
        
    X
    Subscribe to the MyProperty Newsletter

    Name  
    Last Name  
    Email Address  
    Email Frequency
    select
    X
    Share this Page

       
    For Sale Property
    Rental Property
    More Options
    About
    Connect with us
    FEEDBACK