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Should I invest in a Braamfontein bachelor pad?

Braamfontein Nelson Mandela bridge

Q

Hi there. I am interested in investing in a bachelor apartment in Braamfontein. It would be a cash purchase. Could you share some insight into rental prices for an apartment like this in the area as well as property value growth rates? Thank you – Karen

A

Hi Karen, the rent in Braamfontein, for this development, seems to fluctuate between R5,000 and R5,500 per month.

It is difficult to provide information on the growth rate of properties in the area without conducting in-depth research. I would however recommend that you take the growth in value, of the property, into your own hands.

What I mean by this is that you invest in a property that you can add value to. The market is forever fluctuating and will never be in your control. The value of the property, however, is something you can control if you purchase a neglected property in a well-maintained, and popular area. Once you have repainted, and fixed it up, you will be able to rent it out for more than your monthly bond payment.

You mentioned that you would like to pay for the property in cash. I would suggest that you take a bond, and have your renters pay for your property. First rule of investing – use other people’s money*.


A look at the tax implications of selling an investment property


In summary, you are looking for a property of which you can increase the value with little effort. This will allow you to rent it out for more than your combined expenses.

The property you are considering is ideally located near Wits University, the Johannesburg City Council, and the Gautrain Park Station. The development also seems to be well-maintained. From your question, I gather that you are focused on the middle-income market, which is ideal. The vacancy rates for this market are very low.

You are welcome to contact me if you would like to discuss this opportunity in more detail.

*Please note that I am not a registered financial adviser.


Got a property investment question? Email mariette@hometimes.co.za and we’ll be sure to assist


Property investment consulting

Who is  Annette de Kock?

Annette de Kock

Annette is the founder and lead consultant at Property Investment Consulting.  She holds a degree in Town and Regional Planning from the University of Pretoria and has been working in the property development industry since 2010. With a background in Town and Regional Planning and Development Economics, Annette specialises in land-use management, market-demand analyses, high-level financial modelling, property development facilitation, and real estate investment scoping analyses. Her expertise lies in retail and residential developments.

She has gained experience through personal investments and facilitating the compilation of numerous property development opportunities in South Africa and abroad; conducting market-demand analyses, scoping investigations, and financial modelling exercises as prerequisites for the compilation of bankable business plans to be presented to financiers and developers.

 

Trusted Tenant - #TenantPower

ungerermariette@gmail.com

Mariette Steynberg is a qualified economist with a post-graduate diploma in financial planning. She has enjoyed working on holistic financial plans for clients in various stages of life, as well as a development economist assessing the socioeconomic impacts of new developments. When she is not working, Mariette enjoys parenting her quirky, delightful toddler girl. Cloth diapering, Eskimo kisses and the importance of reading to your child are all causes close to her heart. Mariette is passionate about financial education and hopes to use the experience she has gained to share knowledge with HomeTimes’ readership. Her goal is to provide information that is implementable by everyone.

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