SA property market: Where dreams come to die

[biometrics]

The number of houses for sale on Property24 in Cape Town has increased by 13% from January to June.

 

[rietrot]

For real bargains people need to be desperate to sell. I don't think we are quite there yet in the higher income brackets. People would rather wait it out than take a big lose. I'm sure there are some bargains, but also quite a few bargain hunters.

 

[surface]

It’s about getting paid while doing almost nothing.

Except when you have to do maintenance and incur heavy costs at times. I have had reasonable run with 1 rental unit but I very much doubt if I would invest in one more.

 

[Priapus]

High rental prices seem to be the norm. Next year the place we are renting from, will increase its rent, by 10%. At the price point, I am not sure I will still stay there. But when I look around, there isn't much better, for less. So, I'l probably end up staying where I am, until I can afford to buy a place.

 

[FlashSA]

We sold our house finally after having it on the market since January. Transfer goes through end of next month.

While we originally intended buying a bigger home when we put ours on the market, Zuma's antics since January have scared me off taking on an extra R3k a month in bond + extra rates etc.

We have found a bargain of a 3 bedroom townhouse rental which includes everything - even a monitored alarm! I will be paying the same rental figure as my bond is now, so I get to bank what I currently pay for rates+insurance+alarm every month and add it to interest income from proceeds of current house sale. We intend renting and saving until the country and economy settles down and we feel more comfortable to take on a bigger bond.

I can't help feeling the property market has not seen the worst yet. i see many financially stressed sellers still to come...

 

[Basil959]

I have invested / financed a flat in KZN, had it for about four years and it's all going well.. Who knows what will happen here, maybe things will go belly up, but then we'll go to the dollar which means my rental income will be in dollars.. well maybe..?

I am actually looking to buy another flat, but after a resent trip to WC I was thinking I should be "diversifying" into another region.. Who knows what could happen here in KZN...

From what I see prices are crazy in the WC City bowl, but at least it looks like its a "safe investment" with a rental demand... Someone suggested Fish Hook was good value for money?

 

[Hosehead]

From what I see prices are crazy in the WC City bowl, but at least it looks like its a "safe investment" with a rental demand... Someone suggested Fish Hook was good value for money?

There's no such thing as a safe property investment
Challenges ahead include no water or rationed water and serious infrastructure issues.- ie traffic . The recession is yet to bite and shake us like rag dolls - but it will and layoffs usually follow . I don't know how far government is from curtailing foreign ownership but should it happen prices will adjust downwards and there's the zar hovering in a range that could go from bad to worse at a moments notice.
So many factors at play all guaranteeing anything but a safe property investment
But I might just be the only pessimist in the room.

 

[supersunbird]

There's no such thing as a safe property investment
Challenges ahead include no water or rationed water and serious infrastructure issues.- ie traffic . The recession is yet to bite and shake us like rag dolls - but it will and layoffs usually follow . I don't know how far government is from curtailing foreign ownership but should it happen prices will adjust downwards and there's the zar hovering in a range that could go from bad to worse at a moments notice.
So many factors at play all guaranteeing anything but a safe property investment
But I might just be the only pessimist in the room.

Nah, count me in.

 

[Lupus]

Yup and the pricing of housing is actually going up, we put our place up in April, wanting to try get a bigger place. The bigger places we have been looking at have actually gone up, also noticed a massive trend in Realtors not being able to take decent photos.

 

[WaxLyrical]

20 years ago anyone in their 20's with an average salary could score a bond on a decent property in most areas for under R1 bar

Now, those properties are worth over 2 million and many are in the same condition.
Your bond is R20 000 and young professionals only start out with that salary.

 

[surface]

Yup and the pricing of housing is actually going up, we put our place up in April, wanting to try get a bigger place. The bigger places we have been looking at have actually gone up, also noticed a massive trend in Realtors not being able to take decent photos.

Hasn't your house price gone up by similar % as the next property you are looking for?

 

[Lupus]

Hasn't your house price gone up by similar % as the next property you are looking for?

Actually no it's not

 

[surface]

Actually no it's not

Sorry to hear that. looks like property agents in your area are less greedier than other areas then..

 

[Lupus]

Sorry to hear that. looks like property agents in your area are less greedier than other areas then..

Seems so