Cape Town's traditional 30 to 40 year property cycles can make the purchase of older homes pofitable

The Greater Cape Town property market continues to be healthy and to see ongoing price rises despite fluctuations in business confidence and other negative factors.  Certain suburbs right now offer particularly good buy opportunities because they are in that stage of the traditional 30 to 40 year property cycle where vacant land in their areas is practically non-existent and large scale rebuilding and refurbishment of existing properties is transforming the neighbourhood and adding value to many homes.  In addition, attractive new developments on their borders may also be enhancing the appeal of these longer established precincts.

This was said recently by Rowan Alexander, Director of Alexander Swart Property.

“In such suburbs,” said Alexander, “it is possible to buy older homes well below the prevailing market prices for the area because  they need to be upgraded. Our experience in helping buyers to find such homes has shown that  the buying and upgrading process can be less expensive than buying a new home  and can result in a home that has a great deal of charm because it reflects the owner’s personality.”

Asked to identify such areas in the Northern Suburbs of Cape Town (where his agency is most active), Alexander listed Morgenster Heights, Eden Park and Bracken Heights in the Brackenfell area and Kenridge, Durbanville Hills, Stellenberg, Eversdal and Valmary Park in Durbanville  while in Kraaifontein Alexander said that Bonnie Brae and Bonny Brook also offer good buy- to- upgrade opportunities.

“There will always be home buyers who insist on having a pristine, new modern house.  However, often the more economical choice is to seek out the areas undergoing transition and buy an older home which can then be improved as and when the new owners have the time and money," said Alexander.

"Finally", Alexander added, " when considering whether  purchasing a new or used home for  renovation, purchasers have, as always, to bear in mind the factors which influence all property deals i.e. timing, affordability, convenience and, in some cases, alternative accommodation possibilities in the area, all of which could  prove challenging and could influence their decisions. However if these factors fall into place, older homes offer great capital appreciation opportunities."

For further information contact Rowan Alexander on cell phone number 082 581 3116 or by email rowan@asproperty.co.za.