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BRIEF: To find a property that would give a high consistent rental yield, appreciate strongly in value and be a place for future holidays. The property had to have a sea view.
AREA: Atlantic Seaboard (Sea Point, Clifton, Bantry and Hout Bay).
BUDGET: Between 3 and 6 million Rand.
OPTIONS PROPOSED: Homes in private estates, off plan apartments, penthouse apartments.
Our client had always wanted to buy a property in Cape Town and contacted Space after a friend had used our services earlier in the year. With the exchange rate nicely stacked in his favour at just shy of R15 to the GBP, he came over for a long weekend in August, giving us just three days to complete all the viewings required.
We advised our client to consider private estate homes in Hout Bay as we knew that for this budget, he could secure a large family home, which would always be in demand for the long term market. For the rest of the Atlantic Seaboard, we sourced some exceptional off plan and existing penthouses.
The apartments which matched his brief of two bedrooms all had superb sea-views in Clifton and Bantry as well as Sea Point. Sea Point offered a lot more space for the budget. We also short-listed the best private estate homes in Hout Bay.
Due to the strong demand for property in private estates and the ongoing lack of homes for sale, we had to draw on our knowledge of the market and many contacts to source the chosen property. We found our client a four bedroom home (all ensuite with designer bathrooms) with sea-views and a large wrap-around deck offering 180 degree views of the beautiful mountains. bay and valley of Hout Bay. The feel is very contemporary with double volume ceiling heights, open plan living and floor to ceiling windows. This house has plenty of room for entertaining and a small splash pool.
The chosen property matches two very important criteria for the rental market. Firstly it is situated in an excellent, upmarket private estate. We have noticed a huge shift in demand for this style of property from both South Africans (local and from Johannesburg) and foreigners, and believe it offers both excellent value and good capital appreciation potential based on what is currently happening in this market; secondly it has four bedrooms with a great open plan entertainment area. Amazingly, in a country with such big houses, there are very few rental houses available with four or more bedrooms.
The Kenrock estate is a relatively new estate in Hout Bay but has recently gained a reputation of being one of the top three estates within this coastal town. Rental property here fetches between R20,000 and R32,000 per month depending on the location, size and level of finish. This house can be marketed at R25,000 per month in 2007.
Space negotiated a final purchase price of 7.5% below the asking price, giving the client an investment with strong rental potential for just over 5 million Rand including all tax.
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