Southfield and similar areas offer excellent investment opportunities

With estate agents throughout the Greater Cape Town area often saying their area has bucked the trend and resisted price falls better than most, who is an investor to believe and where might he get a rental covering 50 to 60% of his bond?

Asked this question recently, Lanice Steward, MD of Anne Porter Knight Frank, said that for “real action”, investors are still looking to the lower priced properties and, she added, these have generally resisted price falls better than higher priced properties.

“Southfield and Diep River,” said Steward, “are the sort of areas people should now be looking at for low cost homes that give a good return. Anne Porter Knight Frank currently has a number of properties priced close to R1 million in the affordable areas and any one of these would make a sound investment.”

One Southfield home currently on the market at R1,25 million, said Steward, has been refurbished throughout. It is in spick-and-span condition and has attractive ochre façades. It is particularly well protected against intruders. The home has a main house with a spacious main bedroom, built in cupboards, strip wooden floors, two additional bedrooms, a newly equipped, refurbished kitchen, a family room with its own WC – and, on top of all this, a separate flat with two bedrooms and the same high standard of finishes.

“This makes it an ideal opportunity for dual living at an affordable price,” said Steward.

“Supposing you were to rent the two sections of the house separately,” said Steward, “you could probably earn a monthly income of R3 000 to R4 000. This is fairly typical of the good value that many lower priced Southern Suburbs homes now offer – but prices here will rise before long, so now is a good time to buy.”

Supplied by: