It may come as a surprise to many, says Mike Abrahamse, franchise principal for the Rawson Property Group at Blaauwberg, that it is still possible to buy a sectional title unit for under R300,000 in Parklands and Table View – and to cover one’s monthly bond payments, even on a 100% bond, from day one.
“Two bedroom homes here,” said Abrahamse, “are still coming onto the market at around R330,000 and renting for R3,000 per month. Admittedly there are not many of them, but there are still a few opportunities. Other sectional title units can be bought for just above R400,000 and will give a rent close to R4,000 per month. Seventeen properties in the Greater Table View area are currently listed at under R450,000.”
Asked to give specific examples of good buy-to-let opportunities now on his stock list, Abrahamse mentioned:
· An upper level sectional title unit in a two storey complex. This home is now priced at R300,000 and is delivering a rent of R3,000 per month.
· A two bedroom unit in Parklands priced at R420,000 and renting at ± R4,000 per month.
In both cases the units are in security complexes and very well protected against intruders with burglar bars and safety doors.
Rents at the lower end of the scale, said Abrahamse, continue to rise at 6 to 8% per annum and many landlords are not aware of this and are, in fact, losing out on the returns they could be getting. Capital values, he added, are once again doubling every five to six years and this trend, he is convinced, is set to continue.
Abrahamse said that he would be buying in the lower price ranges of Parklands and Table View now if he was not already heavily committed with other property in the area.
“Having operated for 15 years here,” he said, “I can say, without any hesitation, that probably no area in Greater Cape Town has given better rental returns and capital appreciation than Parklands and Table View. Now, however, is the time to buy because demand is on the increase and none of these excellent bargains will be available for much longer. Buy-to-let investors are moving in here fast and, so long as they appoint a good rental agent, can be assured of very satisfactory returns.”