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.  

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