This house was R6.9 million in Feb and is now priced R4.9 million. That's 29 percent in one fell swoop, but perhaps still not enough - interesting to see if this place moves even at this "cheap" price. I doubt it, as this looks like one of those classic Old SA hellholes, a sort of central hotel thing on a busy road in the sandblasted misery of the Strand.
03 March 2009
Big Price Drops In Strand
Reader Bean Counter writes:
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4 comments:
The Strand/Gordons Bay area must be, apart from Langebaan, the worst area to have property on the Cape Coast.
Scores of upcountry buyers bought overpriced second / holiday homes here only to have to sell at huge discounts when the economy went pear shaped.
The rental return is dismal even at these distressed prices so god knows what return they were achieving in the boom times?
I have a friend, a estate agent nogal, who bought a plot at the golf course in Langebaan for R275K in 2006. now he is trying to sell for R225K and there is no takers. To make matters worse, there is a monthly levy and a penalty charged monthly for not building within the time frame stipulated...ouch!!!
Perhaps when doing these price drop comparisons, one should try and find out what the property was bought for by the current owner.
Properties will go down but then will go up again, same as for shares or gold.
So if someone has money and does not want to put his/her eggs in the same basket, it is good to have a couple of properties, some shares and some gold.
I do not think people are making a bad investment when they buy a second property if they look for long term investment.
Nowadays, looking at Europe and in the USA if you leave your money in the bank you can lose everything, your pension is halved or less so at the end of the day to have something in "stone" seems to be a better investment
With the exception of Gold I don't think your money is safe anywhere right now - maybe in Euros under your bed?
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