“He who hesitates is lost” ……This has never been more evident than in the sectional title market in the Southern Suburbs of Cape Town recently. Shortages in accommodation have pushed rental income to record highs. Developers are focusing on older buildings, where the units can be sectionalized and sold off to the rising demand.
Banks happily lending to first time buyers are also cashing in creating a vibrant market in this sector.
The Harcourts Maynard Burgoyne team, together with developers Sandak-Lewin Trust, have been instrumental in driving this trend very successfully. Over an 18 month period 4 older buildings have been revamped and brought to market with approx 85 units sold. Previously run down and multi tenanted, these blocks have undergone a complete change. Mostly now owner occupied with new body corporates up and running, these buildings have completely enhanced the areas surrounding them.
Once evicted the informal tenants plaguing these areas together with the associated crime moves on, and local residents can look forward to a much improved lifestyle. Successfully sold out are :
Buildings that housed crime and drug lords together with their entire associated infrastructure are now clean functioning entities with happy owners reaping the rewards of what may have seemed a dubious purchase initially.
Investors and first buyers who boldly plunged in … sometimes buying units sight unseen …. are now seeing a 30% capital gain on their properties. A hard working Harcourts team has provided a full service – from selling to supervising evictions and alterations as and when needed. Bonds through Ooba from all major banks have facilitated the process creating a hassle free buying experience for most.
There’s a lesson herein, The right time to buy is always right now.
- While there are dozens of blocks that can still be developed like this the real opportunities are rare and require a strong heart and bold action . . .
- Get yourself pre-qualified.
- Look at the big picture and don’t get lost in the detail.
- Buy from reputable agents and developers.
- Be patient .. it’s an 18 to 24 month investment that pays handsome rewards.
For the lucky few who have made their homes in these buildings the property market is the best it’s ever been. Most are now looking to purchase more and we at Harcourts are happy to help as and where we can.
If you own a residential building and would like to investigate the possibility of selling it, feel free to contact Mark Lewis at our Constantiaberg office on 021 712 0225, 072 356 5022 or firstname.lastname@example.org
This article is a general information sheet and should not be used or relied on as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Errors and omission excepted. (E&OE)