According to real estate agents Alexander Swart Property, Brackenfell and its surrounding areas are reporting a steady rise (estimated at at least 20% per annum) among investors, rather than owner occupiers.
“With the banks now tightening up on the mortgage loan criteria, the demand for rental properties is increasing month by month and the returns available to investors in rented residential property have seldom been as good as they are right now,” said Alexander Swart’s Jason Blight.
“In most of Cape Town’s Northern Suburbs any property priced below R1.5 million is likely to be a good buy-to-let prospect and apartments in the R700,000 to R900,000 bracket are especially worth considering for investment purposes,” he said.
“In these property categories the buyer can usually qualify for a 90% bond and will usually find that his rentals will come close to covering his monthly bond repayments — in many cases they cover them right from the outset.”
This means that the the investor will be getting all the benefits of a fast appreciating property asset (currently growing in value at 10.2% per annum) at little or no cost to himself, said Blight.
“And two or three years later his rent increases are likely to ensure that he is also earning an income from the property while continuing to pay it off,” he said.