21 August 2006

Rent Disparity

Here are a few ads posted in the Independent Group Classifieds:

CAMPS BAY Beautiful seaview, lux fully furn, 3 bedrms all en suite,
study, large kitchen, pool, R18 000. Avail imm. Phone 072 392 6794 (CAPE
ARGUS - 21/08/2006)

CAMPS BAY:3 bedrooms, bic, carpeted, small quiet & secure building. Suit
mature couple, R4 560. Garage R400. Permanent Trust 4259790 / 4254747,
a/h 072 369 8054 (CAPE ARGUS - 21/08/2006)

Century City The Island Club 2 bed units at R4500 p/m. 3 Beds at R6000
p/m, available at this award winning development. Gym, indoor pool and
outdoor pool available for exclsaive use of residents. Contact Claire on
5513354 or 0825606481. (CAPE ARGUS - 21/08/2006)

Century City Villa Italia and Bougain Villas 2 bed units at R4000 p/m. 3
Beds at R5500- R6000 p/m. Gym and heated pool facilities available at
Villa Italia. Clubhouse and braai facilities available at Bougain
Villas. Close proximity to Canal Walk and all other amenities offered at
Century City. Contact Michelle on 5513354 or 0833436805. (CAPE ARGUS -
21/08/2006)


Now notice that second Camps Bay listing. 3 Bedrooms for R4900. Now look at the first. I'm not sure if a pool and a nice view is worth an extra R13 000 a month.

Also look at the bottom two ads made up of 2 and 3 bed units in Century City for between 4000 and R6000 a month.

So a 3 bedroom apartment in Century city for R6000 where the closest attraction is a giant gaudy shopping center and huge junk food court and where it takes 40 minutes to get through the traffic to town. Or R4900 for a 3 bedroomed place in Camps where one of the best beaches in the world is just down the road, lined with loads of restaurants and town a 10 minute drive away.

Decisions... decisions..

4 comments:

Anonymous said...

Funny how no capies actually comment on your blog. Too embarassed?

Anonymous said...

Not embarassed - just terrified out of our minds. Too busy making our assets liquid (selling our parents to glue factories) to spend our time on blogs.

CT Bubble said...

Mal, are they actually cash flow positive on the rents or are they betting on appreciation and plan to sell in the short term (say in less than 4)?

CT Bubble said...

Hmm... usually those guys buying plots on the the west coast aren't planning to rent them. They're building and then selling straight away (I know a guy at my work doing the same thing).