Is buying an apartment a good investment?

[ChocolateBadger]

Like those 2/3 bedroom apartments that are littered around midrand?

Lets say I have 1m budget and looking to move to jozi in the near future. Everyone says buy, don't rent because then you playing off their bond. Are those little apartments worth it and do they hold up as a property investment? If so, what are good areas too look at? I'm self employed so work location is not an issue. I've been looking at Fourways/Lonehill/North Riding/Paulshof....any good?

 

[Skywalker786]

Like those 2/3 bedroom apartments that are littered around midrand?

Lets say I have 1m budget and looking to move to jozi in the near future. Everyone says buy, don't rent because then you playing off their bond. Are those little apartments worth it and do they hold up as a property investment? If so, what are good areas too look at? I'm self employed so work location is not an issue. I've been looking at Fourways/Lonehill/North Riding/Paulshof....any good?

Property is by far the best investment you can make. The residential market is definitely showing signs of positive movement. Driven by low interest rates and a definite shortage of stock. Interest rates are relatively stable expect an increase of +- 1% in the next year.

If you are buying to rent, take into account the rental prices in that specific area or complex. As you may need to off set rental vs levy etc.

You have chose brilliant areas by the way

 

[Jakes147]

Like those 2/3 bedroom apartments that are littered around midrand?

Lets say I have 1m budget and looking to move to jozi in the near future. Everyone says buy, don't rent because then you playing off their bond. Are those little apartments worth it and do they hold up as a property investment? If so, what are good areas too look at? I'm self employed so work location is not an issue. I've been looking at Fourways/Lonehill/North Riding/Paulshof....any good?

Move one suburb further to Sunninghill, Great access to the rest of Joburg and PTA. All those subburbs that you mentioned are nightmares when it comes to traffic.

 

[adam1234]

look at waterfall too, lots of development in that area

 

[ChocolateBadger]

Property is by far the best investment you can make. The residential market is definitely showing signs of positive movement. Driven by low interest rates and a definite shortage of stock. Interest rates are relatively stable expect an increase of +- 1% in the next year.

If you are buying to rent, take into account the rental prices in that specific area or complex. As you may need to off set rental vs levy etc.

You have chose brilliant areas by the way

Positive Feedback, thanks. I'm also looking into these new developments that at planned to be finished at the end of the year. They seem to go for cheaper. The levys on some places though are a bit steep.

Move one suburb further to Sunninghill, Great access to the rest of Joburg and PTA. All those subburbs that you mentioned are nightmares when it comes to traffic.

I will add that too the list too, thanks.

 

[ArchieChoke]

Like those 2/3 bedroom apartments that are littered around midrand?

Lets say I have 1m budget and looking to move to jozi in the near future. Everyone says buy, don't rent because then you playing off their bond. Are those little apartments worth it and do they hold up as a property investment? If so, what are good areas too look at? I'm self employed so work location is not an issue. I've been looking at Fourways/Lonehill/North Riding/Paulshof....any good?

Out of experience for (

Like those 2/3 bedroom apartments that are littered around midrand?

), I put my flat up for rent, within 2 days had 15 people interested in viewing. End of the week had a tenant in by sunday.

Just put funds away for repairs, for some odd reason the place always gets trashed after tenants move out.

Oh and stay away from Galencia property, when i went to sign docs, in the boardroom there was a photo of the business owner shaking hands with cANCer leader Jacob Zuma.

Well well that shoulda been a photo of a stern warning. I literally had to replace/fix alot of stuff. Also suprise bills cause of Sh*tty COJ (City of Johannesburgs) account system. Only got my taxes after 3 years with interest. Then they didnt charge sewage(YAY surpise bills).

 

[Pho3nix]

Move one suburb further to Sunninghill, Great access to the rest of Joburg and PTA. All those subburbs that you mentioned are nightmares when it comes to traffic.

Isn't Sunninghill equally bad traffic wise and closer to the Buccleuch ; which I've heard has experienced an uptake crime-wise.

 

[Jakes147]

Isn't Sunninghill equally bad traffic wise and closer to the Buccleuch ; which I've heard has experienced an uptake crime-wise.

If you live in Sunninghill you are traveling against the traffic most of the time. Crime is also also very low compared to other parts of Joburg due to a very active community.

http://www.property24.com/articles/why-sunninghill-homes-are-in-demand/14769

 

[chrisc]

1 - Must be a good suburb
2 - Not too heavy on the rates and levies
3 - Find out how efficient the managing agents and body corporate are
4 - Find out a history of sales in that building
5 - See if you can get a garage with it and if the garage has electricity
6 - If there is security, it is well designed

 

[ChocolateBadger]

There's not so much to choose from in Sunninghill at a glance on property24. But I'll contact an agent and see if I can get more meat out of this search. I'm rather fond of loft apartments though, I like the idea of the lounge above the kitchen but I guess that's my own taste.

Just a word to these estate agents who take photos to put on these property sites. Please take a basics in photography course. I swear, a fuzzy blackberry photo of the corner of the room doesn't tell me much, nor does it entice me to investigate further.

 

[TofuMofu]

There's not so much to choose from in Sunninghill at a glance on property24. But I'll contact an agent and see if I can get more meat out of this search. I'm rather fond of loft apartments though, I like the idea of the lounge above the kitchen but I guess that's my own taste.

Just a word to these estate agents who take photos to put on these property sites. Please take a basics in photography course. I swear, a fuzzy blackberry photo of the corner of the room doesn't tell me much, nor does it entice me to investigate further.

With you on the photo thing. I'm also looking for an apartment and some of the photos are just idiotic. Like the ones with the bed in...I want to see the room, not the bed god dammit!

 

[SauRoNZA]

If you can pay the bond off in <10 years then it's a good deal.

If you are simply going to pay it back over 20 years like the bank expects you to the loss in interest without even mentioning maintenance costs over time will be bettered by just investing the money alternatively.

 

[ChocolateBadger]

If you can pay the bond off in <10 years then it's a good deal.

If you are simply going to pay it back over 20 years like the bank expects you to the loss in interest without even mentioning maintenance costs over time will be bettered by just investing the money alternatively.

Hmmm so 1m with an optimistic 9% for 10 years...looking at about +- R12500 pm then say + R2200 pm Levy & Rates...This is looking expensive for an apartment but I guess that's the price you pay for those areas.

But at the end of the day I'm looking to purchase property to live in joburg but as tempting renting is, I'm not sure if I want to pay around R8k pm for a roof over my head that I won't get anything for.

 

[Hamster]

Hmmm so 1m with an optimistic 9% for 10 years...looking at about +- R12500 pm then say + R2200 pm Levy & Rates...This is looking expensive for an apartment but I guess that's the price you pay for those areas.

But at the end of the day I'm looking to purchase property to live in joburg but as tempting renting is, I'm not sure if I want to pay around R8k pm for a roof over my head that I won't get anything for.

Well if you rent at R8k and put the difference (R6700)pm away into an investment vehicle like a simple ETF you'll make a bucket load of money and have the freedom to move around JHB until you know exactly where you want to settle.

Fourways, Lonehill, Douglasdale and the like are sort of "center" to JHB if you consider the Westrand (to which you have minimal traffic). Sunninghill is not bad if you need to travel to Midrand but the Westrand is now 30km away. All depends on where you are going to work and how long you are going to work there for. Nothing (not even a very nice house) will make up for bad traffic. Bad traffic will consume you and make you miserable.

 

[Jakes147]

Fourways, Lonehill, Douglasdale is not bad if you need to travel to Midrand but the Eastrand is now 30km away.

 

[Hamster]

Fourways, Lonehill, Douglasdale is not bad if you need to travel to Midrand but the Eastrand is now 30km away.

Exactly. The Fourways area is a nightmare if you have to travel East :/



Actually, I dunno why anybody would want to buy in JHB. All you want to do here is make money and get out. Who wants to be tied down here with a house anyway



Seriously though, I live in Douglasdale btw and the place I rent is very nice, but I cannot think of one place I would want to buy - except Westcliff and the like of course

 

[dunkyd]

The Matrix. Great place !

 

[ChocolateBadger]

Exactly. The Fourways area is a nightmare if you have to travel East :/



Actually, I dunno why anybody would want to buy in JHB. All you want to do here is make money and get out. Who wants to be tied down here with a house anyway

I may get office space in midrand but that's another thread. But living in PE is mind numbingly boring as hell. I'm looking for something new and a little excitement and I've always enjoyed my visits to Joburg so I think its a nice place. I'm not even bothering with CT.

 

[Hamster]

I may get office space in midrand but that's another thread. But living in PE is mind numbingly boring as hell. I'm looking for something new and a little excitement and I've always enjoyed my visits to Joburg so I think its a nice place. I'm not even bothering with CT.

I grew up and studied in George, moved to PE for two years (hated my life near the end) and then moved to JHB start 2010. So far I have enjoyed it here (save the insane traffic I had for two of those years). No plans to move away just yet but really not sticking around for retirement

 

[PapercutPrincess]

There's not so much to choose from in Sunninghill at a glance on property24. But I'll contact an agent and see if I can get more meat out of this search. I'm rather fond of loft apartments though, I like the idea of the lounge above the kitchen but I guess that's my own taste.

Just a word to these estate agents who take photos to put on these property sites. Please take a basics in photography course. I swear, a fuzzy blackberry photo of the corner of the room doesn't tell me much, nor does it entice me to investigate further.

+1

Or they could hire a photographer, even a student photographer, to take decent photos.