Tips for buying property in Cape Town
Cape Town, the Mother City, iKapa or Die Kaap, whatever you choose to call it, the sprawling metropolis at the southernmost tip of Africa is undeniably a world treasure.
Renowned for its idyllic panoramas, beautiful landmarks and cosmopolitan lifestyle, Cape Town has come to be considered an urban paradise, captivating thousands of tourists each year thanks to all it has to offer.
For many, the idea of living permanently in such ethereal surroundings is a dream, particularly as the Mother City boasts incredible amenities and world-renowned schools and universities.
There is a perception that affording property in Cape Town is beyond the means of most people, but that is largely influenced by the many stories about multimillion rand properties being sold in the sought-after areas of Llandudno, Clifton and Camps Bay.
Cape Town is so much more than these precincts, and indeed there are houses in many suburbs that won’t break the bank, particularly if you pursue the home loan option.
Particularly with South Africa’s economy being in a fairly precarious state, there are many deals to be had, provided you keep the following in mind:
Distance
While Cape Town is not nearly as big as Johannesburg, getting to and from work can be problematic is you live a fair distance from the workplace. Traffic congestion is notorious in the Mother City, particularly if travelling from the north to the city centre or southern suburbs in the morning. This is why, particularly in the past decade, property prices have soared in the City Bowl and areas like Sea Point and Green Point. The convenience of being closer to work, with most employers choosing to set up shop in the CBD, invariably causes prices to be higher.
Accordingly, it stands to reason to look at areas that are close enough to the City Bowl so traffic will not be much of a factor but far enough away to place you in a lower price bracket. Pinelands and Observatory are worth investigating for these purposes.
Gentrification
There are areas in Cape Town that are undergoing massive gentrification, but the financial impact of this process is still to be felt; that is, for now properties in these areas remain well priced. As such, houses in Woodstock and Zonnebloem are an excellent buy. Many of the homes are old but beautifully structured, and are perfect fixer-uppers. The key is to get in on the ground level, because it won’t be long before these houses will be among the most prized in Cape Town. With so many young tech and new media businesses establishing in the area, it is becoming something of a local “Silicon Valley”, a reputation that will definitely sway property prices skywards.
Renting options
Particularly the fraught state of the economy, many homeowners are offering rooms or garden cottages for rent on their properties. In Cape Town, there is even more reason to explore this option. According to statistics from the Tenant Profile Network, which vets tenants for rental properties in Africa, tenants in the Western Cape pay their rent on time more than in any other South African province. With property such a sought-after commodity in Cape Town, that is especially good news. Earning extra income from rentals is then more or less guaranteed.