Vredehoek: Not Selling? Time To Raise The Price!

Reader KS writes:

This apartment has been on the market for at least a year at R1495000. Now it's asking price is R1535000. I guess when things aren't selling the logical plan of action is to raise the price R40 Gs.

Me thinks someone is trying to recoup some bond payments...

Saturday Open Thread - Other Cities

It's the Saturday open thread. This week's topic: What's happening in other cities? We're CT focused but if you're a reader in Jozi/Durbs/Bloom/PE let us know what's up!

Dear Agents: Please Try Harder - Woodstock

Modern Townhouse - Brand New

And from the ad:

BRAND NEW! Never been on the market.

Maybe it's never been on the market before because it hasn't been completed yet!

A New Blog To Follow

House Price South Africa

Some great graphs and insights on property and population growth.

Orangerie: You Just Lost A LOT Of Money

Back in 2008 you could buy off plan a 2 bed/2 bath 120m2 duplex at The Orangerie for between R3 100 000 and R3 500 000. Today you can pick one up for R2 650 000.

That's at least a R400 000 drop in capital value not to mention the potentially hundreds of thousands of Rands in bond payments.

And the scary thing is a couple months ago a similar unit was on the market for R2 300 000!

Update: A reader just sent me a link to the latest (dated 3 Jan 2011) price list for the Orangerie

Here's how the prices compare:

Unit	Initial Price	Jan 2011 Price
AG 3	R3,31,2000	R2,850,000
AG 9	R3,445,000	R2,850,000
AG 10	R3,275,000	R2,850,000
BG 3	R3,289,000	R2,850,000
BG 4	R3,312,000	R2,850,000
BG 13	R3,346,000	R2,850,000

If you bought off plan back in 2008 I hope you negotiated your purchase price down. Waaaaay down. Also good luck selling your unit in the near future while it competes with unsold developer stock.

Saturday Open Thread: Marcus Holds Repo Rate Steady

It's the Saturday open thread. This week's topic - The Reserve Bank held the repo rate steady. How long will they do so?

Saturday Open Thread: Asking Price Drops

This is the Saturday Open Thread! This weeks topic: After yesterdays R40m to R23m price drop post what's the biggest asking price drop you've seen?

For us it was this post when we saw an asking price drop R800 000 from R3.7m to R2.9m.

Biggest Asking Drop Ever?

REDUCED FROM R40M TO R 23,5M TO SELL IMMEDIATELY

That is if you believed it was worth 40 bar in the first place.

But if it's true... R17m off? 42% of the asking price? Yikes!

Saturday Open Thread

It's the Saturday Open Thread!

Saturday Open Thread: Nuwe Jaar!

It's the first open thread for 2011. Predictions anyone?

Rent Vs Buy: Tamboerskloof - An 'Asset' Shouldn't Cost You R9K/Month

So you're thinking of buying an investment property? How about this 3 bed apartment in sunny Tamboerskloof on the market for a mere R1 690 000 and luckily it's renting for R7 000/month till November 2011. Or rather it's renting for R7 000/month gross, take away rates and levies of R1100/month the net rental income is R5 900/month.

Now with a purchase price R1 690 000 your monthly payment on a 100% bond is R15 205/month (and that's with 30 year record low interest rates) and the difference between rental and bond payment is R9305/month, over 1.5 times the net rental. Added to that the transfer costs are R120 000, nearly 2 years (20 months to be exact) of net rental income!!!

Here's the yield and cash flow graphs:

Right so if you put down the entire R1.69 million you can look forward to a max ROI of 4.19%, a ROI you'd get if you dumped all your money into a transmission account. To break even on cashflow a deposit of over a R1 000 000 is needed. Even putting down a hefty 50% deposit still requires 1.21% capital appreciation to not lose any money.

Christmas Open Thread

It's Christmas and time for the Saturday Open Thread.

Dear Agents: Please Try Harder - Claremont

If you're selling a house with a pool, please make sure the picture you post of said pool actually looks like a pool and not a mosquito ridden swamp:

Stunning!

Camps Bay: Nothing Says Class Like a Chrome Pole

So I'm busy trawling through the latest property releases on the market and come across this stately Cape Dutch style mansion in Camps Bay (asking price only 25 bar).

That's it on the left, looks pretty classy eh? It looks refined, stately. Dare I say it looks decidedly old money in the middle of noveau riche Camps Bay. Any minute you expect a dude with a monocle to come sauntering out in a tweed jacket saying things like 'Pip pip cheerio' and 'Good help are so hard to find these days'.

And then I came across this picture:



Now unless my eyes are deceiving me in my old age, that is a stripper pole mounted on a fully mirrored base, conveniently placed in front of another massive mirror...

What the Frikkadel!?!?

Here's a tip to any potential buyers: take a portable UV lamp with you when you check out the place because it suddenly doesn't seem so classy anymore...

Dear Agents: Please Try Harder

Here's an ad for a 2 bed apartment somewhere in the City Bowl on sale for R699 000. Now the place looks pretty crap but that's besides the point. Let's look at the ad copy:

2 bedrooms, both with parquet floors and built-in-cupboards. Living room opens onto balcony with wonderful city, harbour views. Tiled kitchen, bathroom and living room. Currently tenanted until end of Dec 09. Perfect for 2010 rentals!

Notice that last two sentences that I highlighted? This place has been on Gumtree for at least a year but the ad has not changed. Is the flat still tenanted? Who knows! Who cares! That attention to detail on the agents part plus the fantastic photos in the ad just compels me to make an offer!

Saturday Open Thread: Kinders Van Die Wind..

It's the Saturday Open Thread! This weeks topic: Windiest suburb in Cape Town?

Milnerton? Vredehoek? Grassy Park?

Sea Point: 2 Years = R40 000 Appreciation

In Feb 2009 this 2 bed/90m2 apartment was asking R1 150 000. Just under 2 years later a 2/3 bed/110m2 apartment in the same block has an asking price of R1 195 000. That 1.5%/year capital appreciation is about what you'd earn with your money in a transmission account (and no levies!).

Saturday Open Thread

Like sands through the hourglass these are the Saturday Open Threads of our lives.

Bad Architecture: Sea Point

Regular Sea Point reader JP sent in a link to this monstrosity:


JP writes:

This... thing... is on the market for a cool 5 mil. And nothing says Espana (or is it Italia... I don't even think the building knows) than that sheet metal automated gate.

Remember folks: Bad architecture is a crime against your eyes.

Saturday Open Thread

It's the Saturday Open thread!