Investment Property for Sale
Is it worth looking at investment property for sale in South Africa?
South Africa has always offered a lot of value for money. We have a beautiful country with numerous incredible holiday spots, and breathtaking natural scenery and wildlife. We have resources aplenty, and even more local talent to turn these resources into gold. And, then there is the booming real estate market, which has consistently offered rich returns for those who like to dabble in this side of business. If this interests you, where do you start when looking for an investment property for sale in South Africa, and is this still a viable option at this stage?
The answer to this question is not that simple. Yes, the South African property market offers great investment opportunities, with many well-priced properties for sale at any given time. However, whether these are right for you wholly depends on what type of returns you are looking for.
Do you want to earn a return on your investment property by putting it up for sale at a profit or by renting it out? The returns on these investments are very different, and so are the types of properties you will be looking at. Furthermore, if you are looking at making a profit by putting your investment property up for sale, are you looking at a long-term endeavour or a quick turnaround strategy?
Buying a place to rent out is a great way to establish a regular monthly income. However, you have to keep certain factors in mind:
- Is there a healthy rental market in the area you are looking to buy?
- Can you earn a rental income that surpasses the amount you are paying for the real estate?
- Have you factored in expenses such as management, maintenance, and taxes?
Selling – long term
Many investments are made with the aim of earning large returns in the long run. Maybe you want an investment property now that you can make available for sale years down the line when the value has increased significantly? In that case, you want to pay attention to the price growth of other properties in the area, as well as development opportunities for the area.
Selling – short term
Are you unable to wait decades for your investment property to turn a profit? Do you want to put it up for sale in a couple of months and reap the rewards you can? This is entirely possible and plausible, but it also means more work. This is usually achieved by buying real estate that needs some care, reparations, or improvements. Once again, make sure that the effort you put into the property does not eat up all the profit you potentially stand to make.
The types of investment properties for sale
As the name suggests, these properties are specifically meant to be lived in. Great opportunities for investors can usually be found in new developments, and areas close to schools and universities, as well as residential areas that have reliable public transport.
These could be office buildings or parks, shopfronts, factories, or any other location that is zoned to be used for business purposes.
Some properties combine residential and commercial spaces, or are zoned to be used for either purpose. In such a case, an astute investor will carefully investigate which option delivers the highest returns for the lowest investment (whether it be time, money, or effort).
Contact the experts – Fine & Country South Africa
If you are in the process of looking for the best possible investment property for sale, get in touch with one of the expert agents at Fine & Country South Africa. We are an established and trusted real estate agency that operates nationwide. Our experienced team will help you find the perfect property, while also answering any questions you may have.