Although he has, he says, 'grown a little weary' of the current trend among estate agencies to claim that their area is bucking the trend and resisting price falls better than most, he himself cannot resist at this point in the property cycle giving one piece of advice, says Tony Clarke, Managing Director of Rawson Properties.
'Have a good look at the small Cape coastal properties,' said Clarke. 'Right now there are many incredibly good bargains to be had here'
The current low prices, he said, have often come about as a result of cash-strapped people deciding that they must for the next few years do without a holiday home or that they should defer their retirement /opting out plans.
'Obviously all coastal properties have been affected but those in truly rural areas like Bettys Bay, Kleinmond, Gansbaai, Port Owen and Saldanha have seen prices drop more radically than the better established areas such as Hermanus. (Rawson Properties has just sold a new franchise in Vredenburg/Saldanha to Quinton and Yvette Dawson.)
Clarke said that anyone buying in the small coastal areas should make absolutely certain that he can find a tenant. On that basis, he said, such an investment four to eight years from now could turn out to be very profitable.
'I believe that the potential of our small coastal areas is still to be realised. Although it could take five years for the major western economies to recover fully and obviously this will effect our property market, the local property industry is clawing its way back month by month and by mid-2010 values should reach 2001/2004 levels in real terms'
Clarke said that SA has shown itself to be capable of avoiding the full scale recession now ruining confidence in the USA, UK and Europe.
'This is good news for property investors because even a moderate, smallish growth rate is always reflected in the property sector'
