Property still a good investment
WHAT BUYERS WANT: PROPERTIES WHICH CAN ATTRACT GOOD QUALITY TENANTS
Informed investors are buying close to business districts for development.
Despite changes in overall market conditions in South Africa, property still represents an excellent investment for those who understand market trends and capitalise on markets shifts.
So says Park Village Auctions’ Jaco du Toit, who adds that buying trends currently show that informed investors are actively buying properties close to business districts. These they intend developing into high density apartments that are conveniently situated near the workplace to reduce transport costs for tenants. Simultaneously, high returns are what investors are looking for with properties that have the potential to attract good quality tenants, as well as properties with existing “stable” tenants, which are much sought-after.
“This goes to show that good investment properties will always sell well, no matter the prevailing market conditions. Some of our recent listings are receiving a high number of good quality bids which shows that the property investor market is still active and buoyant. This is especially true of good properties, in the right areas that are being marketed at reasonable prices. In our experience, these have a good chance of being sold quickly,” says Jaco.
He continues that property auctions represent a good opportunity for investors to buy reasonably priced properties. This is due to the nature of the sale of the property which usually becomes available due to bank repossessions, winding up of estates, or where sellers need to conclude sales quickly, without lengthy sales lead times. Thus, the properties usually fetch true market re- lated prices and allow investors to earn returns on their investments more quickly.
In addition to properties, Park Village Auctions also has a wide range of investment cars, agricultural and industrial equipment ready to go under the hammer. Investors, especially, are advised to keep an eye out for two exciting auctions that will be finalised in the next three weeks.