Anyone able to identify trends in the Cape Town residential sector will, says Tanya Jovanovski, Rawson Auctions Western Cape franchisee, be aware that Wynberg’s popularity as a reasonably priced precinct, in which to rent an apartment, has in the last decade “rocketed”.
“The reasons for this,” she said, “are not difficult to understand – Wynberg is reasonably close to the CBD, has attractive apartments and is served by well-established schools which have good academic and sporting track records.”
These factors, coupled with adequate advertising and promotion, ensured that when on 24th May she put a 102m² three bedroom unit (no 31) in the three storey Plaza Hill complex up for auction, she was able to achieve the “highly satisfactory” price of R880 000.
The rental income on such a unit, said Jovanovski, is R6 000 and the owner has to pay a R852 monthly levy. His return, making allowance for other costs is, therefore, in the region of 6,8% which is good as an initial rental.
Jovanovski said Rawson Auctions have clients who bought 30 months ago and who already achieve 10% return on low cost apartments.
“Although this is often contested,” said Jovanovski, “I am a firm believer that in today’s volatile economic scene property of this kind should be the preferred safe haven, one which the Rawson Property Group directors have repeatedly advocated.”
