Brand new three bedroom homes with a single garage and garden, situated two blocks from the beach, in strand !!!
REDUCED FROM R529 000.
The builder has 3 houses that he needs to sell fast!
This is in a complex of seven houses so there are three houses still available. Which means that if the four existing owners bought at R529 000 they just took a R94 000 haircut and as interest rates increase they will be paying more and more for an asset declining in value. Should any of those owners decide they wish to sell they'll be competing against the developer who can afford to cut prices further.
Selling owners versus developers is going to become a more common occurrence. Developments like The Rockwell (a personal favourite of ours) still has as of 30 April 2008 twenty units for sale direct from the developer, that is when they aren't trying to rent them out. Who do you think has more room to negotiate prices? The developer or people trying to resale their "investment" apartment?
4 comments:
I went to the Rockwell to purchase one of their flats and was not impressed. The finishings are poor, the kitchens have practically non existent storage and the bedrooms are very small. Those flats are well overpriced. I am not surprised that 20 flats are still for sale and the people who have bought are going to find that their asset is losing value rapidly and what they paid for was really too much
Thanks for the feedback!
I have found that the South African mentality is not to reduce the price of your property and expect a fool to buy it at the price you ask for.
Well i think developers and homeowners who have to sell are in for a rude awakening. They will have to drop their prices by at least 30%.
Foreign investors are at the moment trying to sell also their properties in Camps Bay but without luck. Foreign investors are pulling out of South Africa.
Estate agents should be sued for their lies when they tell you "this property is a very good investment, you will never loose money". What do they know? They only want to earn a commission
To anonymous above; that is a sweeping and completely ridiculous comment. If you are going to make that kind of comment at least try to back it up with something concrete.
Contrary to your statement, foreign ownership (in my experience) remains strong on the Atlantic Seaboard, and property prices continue to grow (at a slightly more moderate rate, but still in the region of 10%).
If you talk to any agent in Camps Bay you will find that a lack of sellers is actually their primary concern, and foreign investors are not actually "trying to sell also their properties in Camps Bay but without luck."
The only person who should be sued is any buyer who makes a large investment based on the word of any party with a vested interest in the transaction (as the agent certainly does). But if he going to be that stupid he will get his dues in any case.
Having said that, I agree with CT Bubble that returns on property investment have dropped in CT, and on the whole property prices must move in line with affordability.
I do believe that the Atlantic Seaboard can be said to make a special case. In an area as limited (and beautiful) as that, supply and demand is a much bigger factor than rental return. Consider Monaco, Malibu, Fisher Island, St Tropez or any other premium property market. Very few can be said to offer any reasonable return on rentals, but they still retain and grow capital value (if the demand increases).
What we don't need is uninformed and unfounded comments left all over the web.
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