Atlantic Seaboard investment properties enjoy local and international exposure
At Fine & Country South Africa, we are always at pains to emphasise one particular and very important aspect of property selection to all our clients, because this issue applies to all property acquisitions, investment or for own occupation, irrespective of type or area.
It is that of location. This is despite the fact that the market on which we focus is exclusively the upper end – luxury properties, which are seldom encountered in areas that are not generally regarded as being occupied by folks that are equally well-heeled.
On the odd occasion that one does find a luxurious property that seems almost out of place because it’s located in a less affluent suburb, this usually means that the owner has over-capitalised his or her property. It fails to have the investment value that it should possess because it is situated in the “wrong” area. Such a home usually stands out from its neighbours, since it is completely unlike them in every way; it’s obvious that a great deal of money has been spent here.
If one were able to move the dwelling to a location that is commensurate with the actual amount of money spent on the property, inclusive of its expensive improvements, it would probably be worth a small fortune and be an excellent investment. Instead, the owner has wasted their money; they cannot get back what was spent, let alone show a meaningful profit when selling.
Other factors and the Atlantic Seaboard
Nonetheless, factors other than location or area also determine the investment value and capital growth potential of upmarket properties in South Africa. Some of the following factors are typically relevant, whilst being especially applicable to the highly desirable Atlantic Seaboard. Here are a few:
- Popularity and demand, as well as supply – a sought-after area versus the number of possible properties – investment opportunities – that exist there. If, for any reason, many people would love to live in a specific place, but the availability of properties is limited, prices will in all likelihood increase by a greater percentage and more rapidly than the average of those elsewhere. Basically, this is the law of supply and demand at work. When demand outstrips supply, the price escalates in response to these circumstances, which greatly enhances investment values.
- Cape Town, its elite, select suburbs and in particular, those situated along the Atlantic Seaboard, are perfect illustrations of this principal. Even though the Atlantic Seaboard encompasses an extensive portion of the Cape coastline, it is nonetheless finite. The dwindling supply or availability of such seaboard properties serves to increase prices on any vacant undeveloped land, as well as the prices and investment worth of existing properties, which come onto the market for resale.
- Proximity to the waters of the Atlantic Ocean is a huge drawcard. One can almost guarantee that beachside and ocean-fronting homes along the Atlantic Seaboard will retain their desirability for an unlimited time, certainly well into the future, likewise their investment value. It’s virtually a case of “we all want to live there, but only a few of us are able to do so”.
- Investing in property on the Atlantic Seaboard, equates to investing in sensational natural beauty combined with breathtaking views.
- Many parts of South Africa, including the Cape Town area, are increasingly popular with visitors and property investors from abroad. For some time and at present, in early 2018, currency exchange rates favour purchasers from abroad, further increasing the already stiff competition for prime Atlantic Seaboard property acquisition.
Whether buying or selling luxurious Atlantic Seaboard investment properties, Fine & Country South Africa is the obvious choice of agencies to assist you with your property transactions in this prime market sector. With more than 300 locations worldwide and award-winning marketing campaigns, we offer buyers and sellers an extensive network of bona fide prospects that maximise their exposure, locally and abroad – a recipe for successful property investments.