According to Lightstone Property’s September newsletter, house price inflation in the Western Cape is currently 6.21% which is well above the national average of 3.23%. As one of the highest priced provinces in the country, entering the real estate market within the Western Cape can be challenging, especially for first-time buyers.
Best way to enter this investment market
Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa, advises buyers who are struggling to enter the local housing market to look at developing neighbourhoods and new developments to get more value for money and to find more affordable opportunities.
Lana Groenewald, Broker/Manager of RE/MAX Unlimited in Brackenfell explains that in an area that is developing such as Brackenfell, Vredekloof and surrounds, there are many opportunities to invest in rental properties at a low buy-in price.
“Average homes in the area can cost between R1 650 00 to R3 500 000. We also have beautiful luxury homes in our area selling at R3 500 000 and in our security estates, prices can climb as high as R6 500 000. The apartments price at R850 000 to R1 350 000,” Groenewald states.
“Rental prices are between R6 500 to R9000 for an apartment, depending on the size, and houses are rented from R12 500 to R22 000. Now is the time to invest in these markets before prices climb.”
“Currently, we definitely have more buyers than sellers and are experiencing a seller’s market. Our areas are very popular among Afrikaans-speaking buyers as well as English-speaking buyers who often relocate from Durban. Vredekloof developments, Greystone Village development at Haasendal Estate, and the developing Birgundy in Brackenfell are very popular semigration destinations.”
“Because property values in the Western Cape are far higher than the other provinces in South Africa, most of our new clients will first rent a property to find their feet in Cape Town and put their furniture in storage for a while and then only purchase a property in the area they want to live as a family,” she explains.
As a final piece of advice, Groenewald says, “Any property that you can purchase now at a good price, go for it. Our country’s real estate market, particularly in the Western Cape, has proven itself to generate a good return on investment. Property is your best investment. The more property you can own, the more revenue you can receive. If you want to make money you have to spend money. In my opinion, property is the best asset to do it.”
Echoing these sentiments, Goslett explains that buyers who make wise investment decisions can climb the property ladder over time. “Because property is an appreciating asset, it is possible to get a foot in the door with a starter home and over time, this will put homeowners in a better position to afford their forever home. Get in touch with a local property practitioner to start exploring your options today,” Goslett concludes.
Writer: Kayla Ferguson
