A look at the Cape Town property market.
The Mirage : Will this 16 story monstrosity ever be built? Starting from 1.6 million ZAR for 40 sq meters studios that will totally destroy the unique village character of the village.The developers are surely going to loose a fortune on this development.I am taking bets that this site is destined to remain a very expensive open=air parking lot.
Throughout the property boom, there was a substantial increase in the 'well-off' areas. I'm referring to those that have money, but are not excessively wealthy. Small to medium business owners, former sports heroes etc. It seems that property attracting high levies, formally bought by these people, are the ones suffering the most and are now the least attractive. If you bought an apartment in your average block, the complex won't take too much of a hit if a few units go unsold. If you bought in a golf estate whereby the very value of your property is partially driven by the solvency of your neighbors, what happens then? What happens if your complex cannot afford the 24x7 security guard at the front desk? Or maintenance of the lifts? Maybe these are the biggest hit housing in the bubble pop in South Africa. Most of the residential property owned in SA is by your average salaried middle class who, lets be honest, are a far cry away from America's sub-primers. I'm just going to say that my money will never be anywhere near a golf estate or upmarket sectional title block. That risk I'm just not willing to take. Not everyone who owns at Pinnical Point is super wealthy and it seems they might just have taken a huge knock. Atlantic Beach in Melkbos is not looking too rosy either.
on the other end of the inner cbd housing scale, movements are afoot.http://www.iolproperty.co.za/roller/news/entry/cape_town_s_senator_parkold link, but haven't seen it hear yet.
My congratulations go to Moneyweb for pulling the estate agent mouthpiece Realestateweb and putting it under the Moneyweb section. This move has already produced vastly more informed and realistic pieces such as the one below. For all of you that thought the banks were doing swimmingly here it is:Nedbank home loans detoxed
I know a oke who sells upmarket leg cream to salons and he makes over R100k per monthHe would NEVER buy into The MirageJust so you know ...
http://www.pamgolding.co.za/propertydetail.aspx?propertyid=315422&search=%2fproperty-search%2fsouth-africa%2fwestern-cape%2fcape-town-metropolitan%2fcity-bowl%2fdevils-peak%2fhouses%2ffor-sale%2f1.aspx%3flocations%3d2117%26sortorder%3dpricedescendingSeriously - rates and taxes are R2520; rent R4000 a month; price with transfer costs R1.345million that is a return of 1.3% - I feel like I am taking crazy pills!
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