Everything you need to know about luxury property investments in South Africa
Category News
The South African property market offers luxurious properties at prices that are nominal when compared to the cost of similar properties in other countries across the globe. In the words of Hayley Vann-Herbert, Southern Suburbs Sales Manager for Jawitz Properties, "South Africa has beautiful homes in stunning settings, which have drawn increasing interest from overseas buyers in the era of digital nomadism that we have entered." Drawing from her years of expertise, Vann-Herbert provides advice and guidelines for those considering a luxury property purchase.
Foreign investment activity on the rise
Statistics show that foreigners are showing a keen interest in various parts of Cape Town. For example, in January 2023, four foreigners purchased properties in Camps Bay, with the foreign investment totalling R54 900 000. In February, foreign investment in Camps Bay rose to R90 850 000 and in March, an additional R62 350 000 was invested in the area by two buyers, one from Germany and one from the Netherlands. International buyers with an interest in Cape Town hail from various parts of the world, including Europe, the United Kingdom and other parts of Africa.
The first quarter of 2023 has seen foreign investment in various parts of the Mother City, including Bantry Bay, Camps Bay and the City Bowl, as well as various parts of the Southern Suburbs and Western Seaboard.
Advice for those considering a luxury property purchase
2023 is proving to be a great time to buy in the luxury market, with stunning properties available at good price points. "For those willing to invest further in improvements, there are even more great options available," points out Vann Herbert.
When considering a luxury property purchase, Vann-Herbert emphasises the importance of understanding the true value of the property and making sure that you are paying fair market value. "Do your due diligence," she urges, "and get a thorough inspection of the property done to ensure that there are no defects that the seller may not have been aware of and thus not included in the disclosure documentation. Vann-Herbert adds that buyers should also look at what is happening in the area. "Be aware of any new developments taking place and take a look at recent property sales in the area," she encourages.
Buying a luxury apartment - or any other sectional title property - is a decision to be entered into carefully, and Vann-Herbert reminds buyers of the importance of looking over the building's financial statements and at how the building is run. "You should ask for a full set of the rules, so that you're aware of any unusual rules that may exist. If any such rule will affect your decision to purchase, you'll want to know about it as early as possible," advises Vann-Herbert. "For example, you'll need to know if there are any heritage overlays, height restrictions or servitudes."
Local and international investors often have different factors closest to heart when choosing a luxury property. "Local investors understand the market and can be more price sensitive," shares Vann-Herbert. "Foreign investors, on the other hand, are looking for affordability and greater yields and returns than what they could get on a real estate investment in their home country."
Why partner with Jawitz?
Choosing the property practitioner who you work with to make a luxury property investment can be unsettling. Vann-Herbert points out that Jawitz Properties' Luxury Portfolio has true international reach. "Sources such as Unique Homes magazine and the Wall Street Journal have ranked our Luxury Portfolio as listing the most expensive properties, having the best associates and being comprised of the most influential leaders in luxury real estate."
For more information about luxury property investments and assistance in finding the right property for your investment portfolio, contact Jawitz Properties today.
Author: Jawitz Properties
