By Clinton Forlee (Group Director)
One of the main requirements for any property investor when looking for property investment opportunities is potential Capital Appreciation on the property. Will the value go up or will it go down, or just stay the same? This would be important if ever the investment be sold or refinanced for additional equity which will enable one to further one’s investment portfolio.
Factors affecting this are too numerous to mention. However, aspects such as rental demand and sustainability, property trends and commercial activity in the area will certainly affect the change in value of the property investment.
The developer of Mountain View Villas in Maitland Cape Town announced a price increase – effective 1 December 2015. This meant that Bachelor Units was increased to R 389,900 and R 399,900. One Bedroom Units were be increased to R469,900 and R 479,900. This represents a 23-26% growth in their values since the beginning of last year. This is due to huge demand from tenants, as well as those wanting to buy into this particular development, and the developer is making adjustments to the pricing accordingly.
For investors who have already purchased in this development, this means that they have seen a substantial growth in their investment before the end of last year. This news has resulted that of our clients who have already purchased here have decided to purchase additional units.
If you wish to take advantage of this opportunity before the next adjustment, make sure that you contact us as soon as possible.