Brackenfell Apartments Exactly Right For Today's Buy-to-let Investor.
Category News
There are few better investments right now in the Cape Town residential property market than sectional title apartments in Brackenfell, says Jason Blight, last year's winner of the Alexander Swart Property Brand Ambassador award and this year the most successful agent in the company thus far. What's more, he says, savvy investors realize this: of the 295 sales of such apartments (out of a total of 4045) in Brackenfell in the last 12 months over 65%, he estimates, have been to buy-to-let investors, with 171 priced in the R800 000 to R1,5 million bracket.
"The average price of ST apartments in this particular bracket," says Blight, "was R1 088 000, which is very definitely in the affordable range for the middle bracket investor, and of course, many first-time owner buyers. Nevertheless, this price represents a big increase in those of two or three years ago and the reasons for this are easily identifiable: rental returns in this price range have been as high as 10,2% annually (with an average of 6,5%) while capital values have risen by about 9% annually in the last three years.
These figures, he adds, go a long way to explaining just why this market has been so attractive to investors and why it is favored by younger buyers. According to the analysts Lightstone, 44% of recent buyers have been 18 to 35 years old and the current trend is still towards young buyers.
"If you buy a typical two-bedroom apartment in Brackenfell for around R1 million, you can easily achieve a rent of R8500 per month, while still seeing very significant capital growth year on year."
One of the big advantages of residential stock in the Brackenfell area, says Blight, is that much of it is new or relatively new. The whole precinct has a fresh "like new" look about it and this is enhanced by new commercial and retail buildings in the central areas. This is exemplified by the new Brick and Board development, Fountain Views, where Alexander Swart is 90% sold out on the apartments, with an average value of R1, 3 million.
Blight himself has been selling anything up to seven homes per month in Brackenfell and nearby suburbs and this he says, is since Brackenfell now "sells itself." There is no need to recap too fully on its advantages to most buyers. At the same time, says Rowan Alexander, Director of Alexander Swart, very few agents put in the long hours Blight does. Maintaining his position at the top of the Alexander Swart agents' log calls for a seven days a week commitment and a willingness to work repeatedly after normal business hours, as well as a readiness to give good service and have a positive mindset. "As our Brand Ambassador, Jason lives out all the values that we endeavor to inculcate in our agents," he says.
For further information contact Rowan Alexander on cell phone 082 581 3116 or by email: rowan@asproperty.co.za or Jason Blight on cell phone 082 619 4464 or by email: jason@asproperty.co.za
Author: Independent Author
