Buying with investment in mind

If you are buying property for investment purposes and capital gain then choose a good area and location, and look for property that provides good value for money, advises a Wakefields media release.

However, property prices have risen faster than rentals, and although rentals are increasing they are unlikely to cover the repayments on a 100% bond. If possible one should always put down a big enough deposit (25% or more) to reduce the monthly bond payments. Wakefields looks at areas that offer the entry level homeowner and investors a choice of options and range of prices.

Berea/Morningside and surrounds - If you want to get into this market these are the entry level prices.
Bachelor flats: from R300 000
Duplexes: from R795 000
Houses: from R850 000 (In general selling prices are around R1, 8m)

Why live here: The area is a favourite with home owners and property investors as it has excellent infrastructure and amenities, the Musgrave and Windermere Shopping Centres, a variety of exclusive restaurants, the vibey Florida Road, a choice of some of province’s top hospitals, the world renowned Mitchell Park and Botanical Gardens, a selection of both private and government schools, the Institute of Technology and more.

Glenwood and surrounds – If you want to get into this market these are the entry level prices.
Bachelor flats: from R300 000
Duplexes: from R700 000
Houses: from R750 000 (In general selling prices are around R1, 4 m)

Why live here: South of Berea Road the suburbs of Glenwood, Glenmore, Carrington Heights and Umbilo offer a selection of good schools, the University of KwaZulu-Natal, the Davenport and Berea Shopping Centres, the vibe of Davenport Road. It is close to the CBD, beach and has good bus transport.

Victoria Embankment/Esplanade
Flats
Bachelor: from R300 000
One bedroom: from R400 000
Why live here: On the edge of the CBD it has exceptional harbour views and there are proposals to create a waterfront here. Rental accommodation is in demand.

South Beach
Flats
Bachelor: from R300 000
One bedroom: from R400 000
Why live here: It has excellent surfing beaches, Addington Hospital, hotels and restaurants, is close to the CBD and u’Shaka Marine World.

North Beach
Flats
Bachelor: from R400 000
One bedroom: from R500 000
Why live here: It has easy access to the CBD, north coast highway, is close to Suncoast Casino and the beach.

CBD
Flats
Bachelor: from R250 000
One bedroom: from R300 000

Why live here: The city is undergoing a renewal and its value is still to be realised. The beach is on its doorstep. It is ideal for people who work in the city providing all ones shopping needs so negating the need for private transport. Investors obtain an 8% to 9% return on rentals. However more expensive properties do not attract higher rentals. A flat sold for R350 000 could attract a rental of between R2 500 and R2 800.
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