Buying property for investment purposes isn’t done on a whim. It takes foresight and thought. You’ll take into account your personal goals, financial objectives, preferences and lifestyle. But objective points of comparison also apply to making the right decision. Here are three of the most important ones. No prizes for guessing the first of them.
You’ve heard it countless times, but location is key, whether you’re buying a place for yourself, or to rent out. Pick out the key parts of the puzzle by looking at the property’s location in relation to main roads and thoroughfares, and the impact of peak traffic on getting to and from the place. Proximity is also important. How easy is it to access shops and essential services, such as hospitals, doctors, pharmacies, pre-schools, schools and after-care facilities? Place yourself in the shoes of the person you’d like to rent to, and think carefully about what they’d need in order to enjoy life.
2. Transport access
Environmental awareness is growing worldwide and younger generations are leading the charge against climate change. If you’re investing in property today, you have to think about the requirements of this demographic and their preference for non-motorised transport like push-scooters (pictured above), public transport and ride-hailing services. Many opt not to own a vehicle at all, so access to transport services is crucial, as is a choice of different types of transport.
In the case of Harbour Arch, it’s not only the location that’s easy to get to – just a few hundred metres from access points to the N1 and N2 highways – but there will be dedicated pick-up and drop-off points for public transport and ride-hailing services. The main MyCiti bus station at the Civic Centre is a short walk away, which includes a very affordable and reliable airport shuttle that departs every half hour. These are small but significant factors that matter to prospective tenants, and therefore enhance your rental prospects and improve the investment potential of your property.
There are two facets to infrastructure – the property itself, and its surroundings. In both cases maintenance is required and given how little time there is, an investment where you don’t have to worry about upkeep is highly desirable.
This is one of the reasons why so many people are moving away from freestanding homes, and opting for apartment buildings and larger developments like mixed-use schemes and lifestyle estates. It’s also why large numbers of investors are buying off-plan, because not only does a brand-new place require little or no maintenance, but whatever is required, is taken care of.
In Cape Town, one of the most popular off-plan purchases of recent times, was the first phase of the Amdec Group’s R15 billion Harbour Arch mixed-use development. It’s a great example of new infrastructure being built within an existing framework, underpinned by a city that has a reputation for operational excellence.