Solid investment potential in Somerset West

Encircled by mountains with hills covered in vineyards, the Cape Town suburb of Somerset West makes an ideal hometown for those who appreciate the scenic beauty, wine and fruit, good food and sense of history, says Lee Siebert, Broker/Owner of RE/MAX Helderberg, which operates in Somerset West and surrounding suburbs.

Named after the British Governor, Lord Charles Somerset, in 1819, the town has grown over the years to become a modern village that has managed to retain its old world charm. “Somerset West is considered to be the commercial and residential capital of the Helderberg Basin and offers residents excellent educational institutions as well as golf courses, sport clubs, cycling, running, mountain biking, hiking tracks and the Helderberg Nature Reserve for sports and nature lovers,” says Siebert.

While around 85% of property sales transactions handled by RE/MAX Helderberg over the past year have been to permanent residents, Somerset West also makes for an ideal investment property location, according to Siebert who says that over the past year approximately 15% of properties have been purchased as buy-to-let investments.

Security is becoming ever more important to residents here, as is the cost of upkeep and maintenance. This is reflected by the fact that 60% of all properties sold in the last year by RE/MAX Helderberg have been in residential estates.

“While some property investors in our area are purchasing homes that need renovations, most are purchasing smaller, newer properties that tenants can take occupation of immediately,” says Siebert. “Most investors would also rather purchase multiple cheaper properties as opposed to one more expensive property.”

Dispensing sound advice to investors, Siebert says that any buyer should make sure they are purchasing a property from a reputable source. “Buyers should also make sure that the price they are paying is in line with other sales prices achieved in the area. Location is another essential factor that remains as important as always, meaning that it is always better to buy the smallest or cheapest property in the best area possible.”

Adrian Goslett, CEO of RE/MAX of Southern Africa, says that a good property investment can only be assured if a buyer has done all the necessary homework and comparisons and is sure that the investment they are making is worth the financial commitment they are laying down to acquire it.

RE/MAX Helderberg currently a good investment opportunity available at the Somerset Lofts development. On the market for R729 000 including VAT, Siebert says that these two-bedroom units, which are close to amenities, make for the perfect investment or starter home. The units also offer a full bathroom, an open plan kitchen with granite tops and built-in hob, oven and extractor, a single secure carport and beautiful mountain views.

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