The worst investment in Hout Bay is still for sale! We last saw it back in October 2008 and the asking price of R6 000 000 still hasn't changed. And with the rent locked in at R28 500 for five years (seriously what idiot land lord negotiated that lease agreement), unless you put down over R3.8 million as a deposit, you'll only be losing a couple hundred thousand a year.
04 February 2009
Suprise! Worst Investment In Hout Bay Still On The Market
The worst investment in Hout Bay is still for sale! We last saw it back in October 2008 and the asking price of R6 000 000 still hasn't changed. And with the rent locked in at R28 500 for five years (seriously what idiot land lord negotiated that lease agreement), unless you put down over R3.8 million as a deposit, you'll only be losing a couple hundred thousand a year.
Subscribe to:
Post Comments (Atom)
7 comments:
Priceless....
Have a look at this "U.S. Housing Slump Has ‘Just Begun,’ Says Forecaster Talbott"
http://www.bloomberg.com/apps/news?pid=20601088&sid=a8mdg7z0u7Dw&refer=home
...one of the better articles I've read lately on explaining the basics behind asset deflation.
I did an excercise with a friend who is doing an owner-builder job on his place. Working through the BOQ (bill of qunatities) the one thing that became glaringly obvious is just how much builders and developers are marking up the materials and labour they employ. Up to 80% above the breakeven costs.
My friend got several quotes to build his 4 bed home (approx 280 sqm) with a double garage, sunken wine cellar and pool and they all came in at +R6500 per sqm. Nor a single one of them was prepared to show a BOQ and there's the rub. In SA we don't ask for a BOQ so we get fleeced. Anyway, my buddy went and drew up his own BOQ and came in at R2950 per sqm (and he didn't mess around with quality either, he went for the good stuff). That's a total building cost of around R826,000.
After 4 months of building with a team he picked himself, he is almost done and it looks like he is going to come in under budget.
The only downside is that he paid top dollar for the land at R1100 per sqm. But he doesn't mind since he paid less than half of what he thought he would for the whole project.
The devil is really in the details. Until SAfricans demand transparency from builders/developers they will keep getting fleeced. It boggles me why people are so militant about the price of bread and petrol but they don't even think about the largest cap expenditure they will make in their entire lives?
I write the whole previous post and forget to make my point...
The point is: That 3.5 bar place in Sunset Beach? Keep it. Even if I paid a staggering R1500 per sqm for the 800 sqm of land and owner-build a 280 sqm house (which is pretty big) for R826,000, I still come in at 2 bars.
The fact is obvious: If you demand transparency and if you take control of the costs, then you can buy and build for at least 30% below average going market price (without paying less than the current market prices for land).
Don't take my word for it, go do the excercise, you will be surprised.
I am not really sure, I think this 28000 is a very decent Rent for this kind of home. I really do not believe that you can achieve any higher Rent. Also when I look at this picture, is this really just the left side of this Townhouse ? The I have to say even this Tenant is nuts to pay 28000 Rand per month.
regards,
wolf
you have to remember that estate agents in houtbay make the owners believe their properties are worth at least 30% more of the normal price, even for renting.
and properties do not sell anymore and people haggle with the rent too. the estate agents just seem to mislead people. A friend of mine after looking to buy in Houtbay became so disappointed with the state of houses that she bought in Constantia instead.
yes and one of the worst estate agents in hout bay are Lola Kramer estate agents, I would seriously advise any buyers to stay clear from this agency, because they will lie to you just to make a sale.
moss
It is so important for estate agents to be professional and have good customer service. I was really impressed with this company. Thats how I got some ideas about Paphos Property For Sale
Hi,
yes and one of the worst estate agents in Gordons Bay estate agents, I would seriously advise any buyers to stay clear from this agency, because they will try to you just to make a sale.
Property for sale Gordons Bay
Post a Comment