Buy out of the box

Here's a look at some of these property investment opportunities, as selected by the experts.

No man’s land

How about investing in the Karoo? It may sound ludicrous; yet if you do your homework on what land is available in the area, you open up a number of money-making prospects. How?

For one, you could invest in an affordable vacant stand, which also allows you the option of building the way you want.

"Right now is a good time to consider property in the Karoo as plots are still available priced under R50 000, and up to R100 000," says Karoo area principal Wayne Rubidge.

You can even still buy a large plot of 3000m² with a borehole — and possibly even a windmill — with scenic Karoo views for under R50 000. Depending on the average property price in each town, plots can be acquired for as little as R30 000. The more exclusive, ideally situated plots could be priced up to R200 000, he says.

Which are the most attractive Karoo towns for property investment. Check out potential plots or properties for sale in the towns of Philipstown, Loxton, Prince Albert, Nieu Bethesda or Lady Grey. Or just go to www.karooproperty.co.za.

Low-income areas

Christo Smeda could not afford to fork out the cash for a place in central Cape Town, where he lives and rents, and thus taking advice from friends, he bought in Cloetesville outside of Stellenbosch.

"I heard that you could get a reasonable return on your investment, and you don't have to pay huge amounts per month for your property, so I decided to invest."

Smeda paid R270 000 for the property with the added bonus of tenants already occupying the property. Although he has to pay R700 into the property each month, over and above what the tenants put in, the area is moving up, and similar houses in the area are now selling for R500 000.

"The nice thing is that because the price is so low, you can buy lots of small houses which builds your property portfolio. Any area around a main hub of activity is a good investment. One of the reasons we bought in Cloetesville was because it's close to the university (of Stellenbosch), and there will always be a demand in the area. We are currently looking for other areas where we think we can make a profit."

One hour’s drive

With the 2010 World Cup on its way it will pay to invest in property just outside of city centres, due to the huge demand for accommodation. Also, increasing numbers of families who are tired of the 24-hour city rush are moving to the outskirts, where their children can still play in a big garden, and go to schools in the vicinity. Think areas like Magaliesburg, Amanzimtoti, Pretoria East and Paarl.

In Pretoria’s New East, incorporating Fairy Glen and Moreleta Park, new development have created an entry-level market, as well as rental market. The Centurion area, between Midrand and Pretoria, has also taken off due to its close proximity to both centres. Entry-level homes in these areas can still be found for between R500 000 and R700 000.

Paarl, approximately a 50 minute drive from Cape Town, is another good option where you can still find a bargain.

"There has been a steady demand for properties in Paarl thoughout the year with enquiries coming from Cape Town, the Northern suburbs, Gauteng and even from a number of foreign buyers," says Annien Borg of Pam Golding properties in the Boland Overberg area.

"Paarl hosts some of the best schools in the country and more buyers are attracted by the academic and sporting opportunities the schools in the area offer, as well as the relaxed lifestyle in the country aspect. Because of the close proximity to Cape Town and other major Boland towns they can still commute to work.

"Residential property in Paarl ranges from R350 000 to R1.2-million for an apartment, while residential homes in town range between R800 000 for a small family home up to R5.5-million for a magnificent home set in park-like gardens high against Paarl mountain."

Because of the short supply of vacant land in town, house prices are still growing steadily. The average house price is around R1.2-million compared to last year's R950 000, adds Borg.

Little by little by the sea

We all know that coastal property is extremely pricey and the entry-level for any beachfront property is definitely out of the average Joe’s reach. So why not look for a coastal town that is not as busy as the likes of Hermanus or Plettenberg Bay.

Furthermore, think of buying into a sectional title development, or via fractional ownership. With sectional title you could place your property in a rental pool for short-periods and still get to visit when you want to go on holiday.

With fractional ownership you would get a certain amount of time per year in which you can visit — or alternatively rent out. Some schemes also have exchange programmes whereby you could exchange your time at your seaside home for one in Mauritius, the Kruger National Park or even further afield depending on the scheme.

Already a sought-after holiday destination, Port Alfred has a number of exciting new residential projects coming on stream and the region is also set to feel the benefits of the Eastern Cape’s economic escalation.

Warwick Heny, of RE/MAX Kowie in Port Alfred notes that "properties are more affordable than those on the Garden Route, which offer similar amenities and natural beauty", and Port Alfred’s proximity to Rhodes University and the schools of Grahamstown, makes it a wise investment.

You could also invest in an upcoming area, where prices have already escalated, and rent the property out for a huge sum during season.

The West Coast town of Langebaan is a good example, having become extremely popular for holiday homes, particularly those along the beachfront, with access to the lagoon.

PGP’s area manager Stephanie Wynne Cole says there is a good mix of buyers who utilise these homes for their own family holidays, and those who capitalise on the buy-to-let market, where rentals of around R1600 to R2500 per day can be achieved.