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
Characters remaining

    Latest Property News
    • 24 Nov 2017
      Demand for secure estate living in Hout Bay has risen sharply in recent years, precipitating a spike in development with estate homes now accounting for 20.24% of the property landscape with the launch of an exclusive new gated development on 26 November adding 20 more units to the existing 1250 estate homes.
    • 24 Nov 2017
      There are some things that money can’t buy – spectacular views from Mouille Point to the V&A Waterfront and a trendy and lively neighbourhood that encapsulates the very best of the Cape Town lifestyle.
    • 24 Nov 2017
      Tshwane’s four-bedroom Mayoral mansion, nestled among ambassadorial residences in the upmarket suburb of Muckleneuk, fetched R5.1 million after spirited bidding at High Street Auctions’ final sale of the year.
    • 23 Nov 2017
      Reserve Bank Governor, Lesetja Kganyago, said that the Monetary Policy Committee had once again decided to let the interest rates remain unchanged with the repo rate at 6.75%, and the prime lending rate at 10.25%.
    • 23 Nov 2017
      As the holiday season approaches, most of us are counting the days until that year-end bonus hits our account. There’s nothing quite like a little bank balance booster to get us in the holiday spirit.
    • 23 Nov 2017
      The Adelphi Centre (now entitled “ARTEM") in Sea Point, Cape Town, is being extensively renovated, and once complete will offer an ultra-luxurious galleria style shopping centre unlike any other seen on the Atlantic Seaboard or in Cape Town.
    • 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.
    Subscribe to the MyProperty Newsletter

    Last Name  
    Email Address  
    Email Frequency
    Share this Page

    For Sale Property
    Rental Property
    More Options
    Connect with us