The Rawson Property Group’s philosophy that it is very definitely worth their while to foster franchises in less affluent areas has proved particularly valid since the onset of the downturn, says Tony Clarke, Managing Director of the Group – and, right now, it is these franchises that are achieving regular sales while agents in the more upmarket precincts struggle. This is especially true in the small suburb of Macassar, sited just off the N2 on the approach freeway from Cape Town to Somerset West and Strand.
Now just 42 years old, Macassar was founded by local authorities with the support of the nearby AECI/Denel enterprise and it has, says Adelaide Wildschut, Rawson Properties’ franchisee for the area, always had a delightful, calm, village atmosphere and a lively communal spirit. Today, she says, it has some 4,500 homes and along with surrounding areas such as Firgrove and Croydon, is able to support a large new Shoprite retail centre, two secondary and four primary schools, sports fields and several churches. Being only 8 km from Somerset Mall, many of the residents actually work there.
Wildschut and her husband Francois have lived in Macassar for 37 years (when they moved in there were only four streets in the village) and they are, therefore, totally integrated with the community, among whom they are recognized as leaders.
Wildschut began her career with the Rawson Property Group as an agent in Somerset West 17 years ago and developed the Macassar area on her own before buying it as an independent franchise from the Group in 2001.
Since then, year in year out, she has almost invariably taken trophies in the Rawson Property Group for the number of sales achieved - one year she, in fact, finished second in the national line up. (With Macassar prices being so eminently affordable, she could never, however, feature strongly on turnover statistics). Today, with two agents on her staff, she is achieving four to five sales per month and she reckons her team is responsible for 70% of the sales in Macassar and adjacent areas.
The extraordinary thing about Macassar, says Clarke, is that despite its highly convenient position, its low crime rate, its excellent facilities and its other attractions; prices here have always been very decidedly in the lower brackets. It is, in fact, possible to buy a three bedroom, one bathroom freestanding home at Macassar for as little as R350,000 and even the best do not usually sell above R660,000. Prices in Firgrove are much the same and although in Southfork they can go up to R900,000, even here sales prices are still eminently affordable.
Of the many people hoping to buy in Macassar, says Wildschut, about 40% are disqualified in their bond applications on account of tarnished credit records. Even very small lapses or late payments in chain store and other accounts can – and do - disqualify buyers for life and, although Rawson Properties can advise them on how to re-instate themselves with the credit bureau, many, in fact, simply reconcile themselves, tragically, to being tenants for ever.
This is one of the factors which have helped boost the Macassar rental market, which is now doing so well, says Wildschut, that she has set up a separate operation, run by Natasha Apollis, to rent and manage properties in her area. Macassar, she says, is one of the few precincts where a buy-to-let investor can, from day one, achieve returns of around 10%. For example, a home bought at R230,000 will rent out at R2,100 per month – and Rawson Finance are often able to help applicants in the correct income brackets to get a 100% bond. Wildschut has even been able to achieve rentals of R2,000 per month on repossessed homes selling for as little as R200,000.
“This,” she says, “is therefore the perfect investors’ market, especially if, as at Rawson Properties, your agent is in the position to carry out a thorough tenant screening process.”
Over the last year, adds Wildschut, prices in Macassar have shown marginal increases, but, she predicts, that the situation is likely to change within the next 12 months and more significant rises are almost inevitable by the end of 2013. Right now, therefore, is the time to buy and, as already indicated, there are bargains to be had which will almost certainly never be repeated again.
