Wednesday, March 13, 2013
Bargain Properties For Sale in Bloemfontein
Are there still bargain properties for sale in Bloemfontein?
This would mainly depend on your definition of a bargain! So where do we begin? What is a bargain property? If you ask a long-term investor, the definition would be a property that paid itself in terms of rental income or at the least where the rental pay more that 70% of the premium. If the question were asked of a person looking for normal residential home, it would most probably be that the property is bought for less than 10% of the average selling price in a specific area for an average house.
In terms of those conditions - the answer is yes - there are bargain properties available in Bloemfontein. If you are of opinion that a bargain property should be something were the purchase price is 20% of the average price in pristine condition, then I would have bought it, or any agent or attorney where it would have crossed our paths. You will not find it! Not because we have indeed bought it, but because it would does not exists. And for buying such a property, we as estate agents are not allowed to purchase property unless we declare our profession and we have to act within a prescribed manner - thus at that price we would advise the client that the asking price is wrong and supply an accurate valuation - a price according to the urgency of the seller.
How should you search for bargain properties in the market, if you are an investor, you should determine what type of investor you will be? An investor who is looking for capital growth vs good investment return in terms of rental income. Both is not normally on the table. Buy to Let market normally is the latter with a lower growth rate as it is dependent on the rental income achievable in an area. Thus before you inform your agent that you are looking for an investment property, you should decide what type of investor you will be. This will influence the type of property you will investigate.
Apart from that you need to decide if you are going to invest in full title properties vs sectional title, and you should be aware of the various pitfalls both of these property has to offer. You should also make sure that you understand the rental statistics of the area as to when rental become normally available and when purchasing a property that has a tenant is not always the correct method as those properties are normally less maintain than the average. You should also be aware that certain Sellers will sell a property because the tenant just isn't nice and they rather make the difficult tenant the next owners problem.
Various excellent investment units and bargain properties exists in the market, but they are not clearly visible, but with the knowledge of a dedicated property agent, you will be able to purchase the correct bargain according to your needs.
The best advice I could offer came from a very old varsity friend -- " a bargain is only a bargain if you have the money to buy the bargain" -- thus don't just buy because it is a bargain, buy with passion but also with knowledge!
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