15 MEI NEW DEVELOPMENT: Devmark is set to launch an exclusive new retire ment facility in Paarl, called Manor House. In its 23year history Dev mark Property Group has become wellknown for developing some of the Western Cape’s most soughtafter retirement fa cilities, including Helder berg Manor and Heritage Manor in Somerset West. Manor House is located on Hospital Street in Paarl and is inspired by country house living. It offers 36 luxury living units set on three floors, including convenient un derground parking and direct access by lift. The accommodation available at Manor House includes studio apartments of 34m², which are priced from R695 000, and one bedroom apartments ranging in size between 44m² and 63m², which are priced from R935 000.
PROPERTY:ONLY 3% GROWTH EXPECTED IN NEXT FIVE YEARS
Renting a better short term investment DALEEN FOUCHÉ The profitability of property as a short term investment has declined according to property economist, Erwin Rhode. Rhode says his most recent findings suggest that short term investment in property will not produce spectacular capital growth, adding that renting a property may, in the short term, save the consumer money.
Rhode estimates that over the next five years, only 3% growth can be expected for property investment. He says this, coupled with inflation at 6%, will produce stunted short term growth. In a case study, Rhode looked at three scenarios to find out which scenario would be the most profitable in the short term. In the first scenario a property is bought with cash, in the second, the property is being rented and in the third scenario the property is bought with a 100% bond.
He says the first two scenarios had the best results. He concludes that the only way a short term investment in property is profitable, is if it is bought in cash. The reasons for the stunted short term growth, according to Rhode, includes the fact that banks have strict lending criteria and do not give 100% loans for property worth more than R600 000. A second reason is the extreme financial pressure under which consumers find themselves. But local estate agent and princi-
pal of Helderberg RE/MAX, Lee Siebert, argues that for the majority of potential home owners, property is a long term investment. She agrees that for the short term investor, buying property in cash is the best option, but adds that the average buyer is looking for a long term investment. Siebert says before the implementation of the National Credit Act in 2007, it was easier for the consumer to get their bond approved. She says now, people, especially first time buyers, seem to move away
from borrowing money from the bank and instead approach family members for financing Carl Nagel, residential team manager at Rose McFall Properties, says because the supply of property is very limited in Somerset West, he would recommend that consumers rather look at buying a property instead of renting. “Property has always been a good investment.” He says renting a property in Helderberg especially, has become very expensive.
STELLENBOSCH R4 699 000 _________________
STELLENBOSCH R3 995 000 _________________
> BEDROOMS 5 > BATHROOMS 5 > POOL
> BEDROOMS 5 > BATHROOMS 4 + 2 > GARAGES 2
Enchanting double story with old world charm. Perfectly positioned near town centre.
Prime property for the extended family. Easy flowing living areas and breathtaking views.
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Cornette 082 569 9160 www.annabasson.co.za
Marí 082 927 3248 T:+27 21 887 4740
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