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Cape Town suburb 'a good investment option'

South Africa property investors are being attracted to one Cape Town suburb thanks to strong demand from renters and low real estate prices.

According to BizCommunity, Muizenberg rental properties are offering returns of between seven and eight per cent, making them popular among buy-to-let investors.

Prices of real estate in the area are also relatively low, with around 80 per cent of homes sold for below R1.2 million (£85,000), meaning landlords are able to generate healthy returns even after expenses - which can account for around 20 per cent of returns - are factored in.

Those who are investing in Muizenberg are no longer the casual buyers who took advantage of the property boom that occurred between 2005 and 2007, many of whom did not have a long-term strategy for their purchase, the news source noted.

Cape Town also offers opportunities for commercial property investors, with Gaye Corbett of Tintswalo Property Group recently telling Bizcommunity that she is optimistic about performance in the city and other areas such as Johannesburg

(Property Showrooms).



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