Property Investment Advice

gorillapower

Active Member
Joined
Jun 29, 2008
Messages
34
Hi All,

Wondering if anyone out there has a take on this development on the West Coast, Western Cape?
* https://paternosterestate.harcourts.co.za/
* https://www.property24.com/new-deve...rn-cape/paternoster-private-estate/16685/3119

Im looking at this as investment property with the ability for personal use from time to time. My concern is the number of units going up will saturate the area making it hard to get a high occupancy rate? Would it be fair to assume these units would fetch less than the more sought after rentals closer to the beach?

Assuming, obviously, that that tourism returns to some sort of normalcy within the next couple of years, it otherwise looks good value at R11,500.00 p/m2 to build.

Anyone with a take, thoughts, comments?
 
Last edited:

Mordecai

Member
Joined
Aug 4, 2013
Messages
23
Crime is a problem in Paternoster. Rented a home there for a weekend and all our stuff got stolen. House had burglar bars and a alarm but the managed to still break in and steal everything. Police officer told us that this is unfortunately a regular occurrence. Be sure that the estate has proper security and access control.
 

Grubscrew

Expert Member
Joined
Sep 15, 2008
Messages
2,739
At R12k per month, what do you expect you returns to be. Go on airbnb and see what you can rent a place for and do a calculation on 30% occupancy during the year and see if it is worth for you. Remember to add rates and taxes etc.
 

RonSwanson

Executive Member
Joined
May 21, 2018
Messages
7,883
holiday property is relatively more risk than the a normal buy to let flat

and Langebaan is not far off from that location, and that area is not exactly in high demand
Risk of what exactly?
 

maumau

Honorary Master
Joined
Aug 13, 2009
Messages
18,091
At R12k per month, what do you expect you returns to be. Go on airbnb and see what you can rent a place for and do a calculation on 30% occupancy during the year and see if it is worth for you. Remember to add rates and taxes etc.

Stunning insight :thumbsup:
 

saturnz

Honorary Master
Joined
May 3, 2005
Messages
17,311
Risk of what exactly?

well letting for starters, and then there is the issue of not really making a significant return on capital because of a lack of demand for whatever reason, I mean it is in the middle of nowhere

have you got a point?
 

Jaws677

Expert Member
Joined
Dec 3, 2009
Messages
1,160
At R12k per month, what do you expect you returns to be. Go on airbnb and see what you can rent a place for and do a calculation on 30% occupancy during the year and see if it is worth for you. Remember to add rates and taxes etc.
You should consider a career in real estate. Plumbing is not your calling
 

RonSwanson

Executive Member
Joined
May 21, 2018
Messages
7,883
well letting for starters, and then there is the issue of not really making a significant return on capital because of a lack of demand for whatever reason, I mean it is in the middle of nowhere

have you got a point?
Yes, thank you. Not all are familiar with the area, and you make some good points, so I appreciate your patience with me.
How would it compare with, say, Nature's Valley in the EC for 1. Investment and 2. to stay permanently?
 

gorillapower

Active Member
Joined
Jun 29, 2008
Messages
34
Paternoster is a no go.


Crime infested hell hole, nothing like it was.


If you want that kind of living, look at dwaskersbos
Very sad to hear. Yeah i was used to go when i was younger and have a family friend who lives there, so when I saw this development, it looked like a great fit.

Ah Dwarskersbos, yes have driven past it on the way to Eilands baai before, it always looked like it was pumping. Will take a look.
 

gorillapower

Active Member
Joined
Jun 29, 2008
Messages
34
At R12k per month, what do you expect you returns to be. Go on airbnb and see what you can rent a place for and do a calculation on 30% occupancy during the year and see if it is worth for you. Remember to add rates and taxes etc.

I have already got some calculations which includes all of the above, ill send them on shortly.
 
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