Don’t buy a Bed & Breakfast

Don’t buy a Bed & Breakfast if you want to make money out of the 2010 Soccer world Cup, warns Neville Schaefer, Chairman of national residential letting company Trafalgar.

“You will make money from the types of property that make you money without a world cup – only more so,” he adds. “So don’t run around looking for a short term pot of gold.

“There will be hundreds of thousands of fans for a few short weeks, most of them happy to accept the most basic accommodation and spend their money on tickets and drinks. Then they’ll be gone.”

He says smart investors will realise that it’s the growing awareness of South Africa in the run up to the world cup that provides the opportunity.

“Right now, the world cup sponsors are promoting the event and South Africa around the world,” notes Schaefer. “They are getting into the TV rooms of people in obscure places who know nothing about our country. By the time the cup is won, millions of people will know all about us.”

He says investors are already looking for property opportunities in anticipation of South Africa finally being known by ordinary people around the world. “They expect tourism, and immigration to soar as a result of the promotion over the next decade. This will push property prices and rents up, mainly in the cities and on the coast.

“If you’re already investing don’t change your current policy just for 2010, it will tend to boost whatever you’re doing now. If you haven’t invested in property, start doing so in anticipation of returns above trend.”

 

Article by: Cape Business News - www.cbn.co.za