When seasoned investors start buying up market properties in an area, said Errol King, the Rawson Property Group’s franchisee for Muizenberg, it is a good indication that the market has taken off — such has been the case recently in Muizenberg and its surrounding areas.
For example, he said, one is able to buy two bedroom homes, either freestanding or semi-detached, in the R600,000 to R700,000 range and achieve rentals of up to R6,000 per month. There are also large three bedroom flats in older buildings for similar prices and rentals within close proximity to all amenities.
“In the lower bracket we recently sold a two bedroom flat in Costa da Gama, in the Capricorn area,” said King, “for R320,000. What all of these homes have in common, is that they rent out at a price which, percentage wise, is a better than an average return.”
The second category of housing that is an especially good prospect, he said, is sectional title apartments, of which there are some 1,800 in Muizenberg and the surrounds which are available from R320,000 to as much as R1,9 million, but they are, in his view, ideal for retirees and young owner-occupiers, who form the vast bulk of his buyers here today.
“I do realise,” said King, “that some of the sectional title developments have been criticised for imposing levies that, to an outsider, appear very high. However, such schemes are ideal for people with fixed incomes, including retirees, because, except in a few cases where an unforeseen special levy becomes payable, the owner knows exactly what his monthly fees will be in advance and can budget accordingly.”
We have sold many flats, said King, to owners who have sold their properties in other Southern Suburbs areas, like Kenilworth, Claremont and Rondebosch, where levies are almost double those of Muizenberg.
“Most complexes in Muizenberg” he said, “have excellent security with many of their entrances being manned 24 hours a day. For busy or older people who may be away several weekends a year, such units offer the ideal lifestyle.”
On-going upgrades in Muizenberg, added King, are also bringing about an influx of new buyers. The new life given to Muizenberg station’s elegant Edwardian buildings, the boardwalk to St James, the revamp of some major apartment blocks and the upgrading of the Lakeside retail complex, where Pick n Pay has now moved in are just a few of the examples of the many successful projects which have been completed in the area. There is now also a proliferation of CCTV cameras, carefully monitored by a security company and a very thorough upgrade of the Checkers store in the heart of Muizenberg. Also noteworthy, said King, is the continuing refurbishment of the historic Muizenberg Village, which is slowly transforming the whole area. Further initiatives not yet announced, he said, will continue to enhance Muizenberg’s reputation and appeal.
Has there been any sign of the often predicted upgrade in sales and prices at Muizenberg as yet? This year, says King, his small, four-man team has time and again found that they were able at last to sell stock that previously had stuck on their list – and the number of buy-to-let buyers has doubled in the last 18 months to roughly one in every 13 buyers.
The Rawson Muizenberg franchise also has a rental portfolio, added King, of 160 units and this is still growing steadily.
