Sa: btl buyers discover brakpan

Investors are discovering the exciting income-generating potential of Brakpan in South Africa, according to one company...

According to Johan Barnard, principal of leading local agency Homenet, properties in the town offer great value for money. "Freehold homes in the older parts of the town are typically generously proportioned and include three bedrooms, a bathroom, kitchen and living room and are priced between R300 000 and R400 000.

"Buyers are renovating these properties and then letting them out for between R3000 and R5000pm. Demand for this type of rental has boomed and vacant stock is thin on the ground."

Sales activity increasing

He also says that sales activity overall is increasing once more. "Enquiries are coming in daily and an optimistic mood is palpable throughout the market thanks largely to lower fuel prices and the latest interest rate drop.

"Evidence of an upswing usually manifests in the lower end of the market first and that's what's happening now. Many who were on the fence are now committing to purchases, particularly in Brakpan Central, Dalpark Six and Eleven where bargains aplenty can be had."

Emerging sector

On the other hand, Barnard says there is still too much over-priced property on the market and that cluster sales have stalled somewhat.

On the whole, though, he is positive about Brakpan's prospects. A new mixed-use node is currently being constructed on the periphery of the town to cater to the emerging sector, and a number of other residential and commercial developments planned for the near future will no doubt add impetus to the local market

Source: www.myproperty.co.za