select
|

Finding the best opportunity in today’s market

Aspects such as price correction following the boom period coupled with interest rate levels that were last seen over 39 years ago, mean that many property investment opportunities have presented themselves in the current market, says Adrian Goslett, CEO of RE/MAX of Southern Africa.

However, he says that property buyers should still be patient, selective and focus on quality. “It may be tempting for buyers to jump at every opportunity that comes their way, however it is important that they do not rush into any decision, but rather choose the properties that will provide them with the highest return on their investment,” says Goslett.  He cautions buyers not to assume that a property is a bargain simply because we are currently in a buyers’ market. “Even distressed properties are listed at current market value,” he says, reminding consumers that property purchases should always be treated as a long-term investment.

Whenever possible, property buyers should learn as much as they can about the environment they are trading in, consult various experts and make use of professional, reputable and knowledgeable estate agents to assist them in the sales process.

Goslett advises that with any property investment, location of the property as well as the type of property and amenities that surround it will have a bearing on the appreciation in the future, which will in turn affect the long-term return on investment. Goslett says that there are a few other aspects that buyers should consider when weighing up their investment prospects in the current market. These are:

Proximity to business and transport

Properties located close to business or transport nodes, or within walking distances of the country’s much-improved public transport networks will become increasingly sought-after as the congestion on South African roads continues to increase and more people move closer to their place of business to avoid time-consuming and expensive commutes.

Green Features

Properties with environmentally-friendly features should also be considered as the country’s electricity costs are expected to increase at a minimum rate of 25% per year. These homes will cost less to run and appeal to the growing number of environmentally conscience buyers entering the market.  Statistics point to the fact that homes with green features will fetch a higher price when sold than those homes without.

Security Features

South African home buyers are among the most security conscious people in the world, which is why properties within secure estates and those with state-of-the-art security systems are generally sought-after and have a greater return on investment. This is evident in the premium paid for homes in secure estates.

Rental Property

While conditions are ideal for investors with access to finance, many consumers are still struggling with bond approval and are forced to continue renting. This has led to greater opportunity within the buy-to-let market as demand for rentals continues to gain momentum. An investor will have the benefit of a tenant assisting them with the monthly bond repayment as well as the benefit of owning an asset that is appreciating in value.
“Finding the best opportunity in the market and making a good property investment is all about selecting the right property with good prospects for future capital appreciation.” concludes Goslett.  



  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
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.
        
    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