“We need to accept that the tough conditions in the property market are likely to prevail for the next few years, and instead of placing all our faith in possible future upturns, we can look to the lessons of the past twelve months to operate more effectively in the current climate,” says Mike Greeff, CEO of Greeff Properties an Affiliate of Christie’s International Real Estate.
 
1. Flexibility is key for sellers.
Impulsive and cash-carrying buyers are thin on the ground and banks remain cautious about lending. They’re also taking much longer to approve loans, so properties are staying on the market for extended periods.  Sellers who can’t or won’t budge on price need to be able to sit tight for much longer.

2. Buy with a long term view.
“Recalibrate your mindset, this is not the time to make a quick buck,” says Greeff, adding that investors should have a long-term plan mapped out before they get into the property market.

3. Do your homework.
Buying a home is more often than not fraught with emotion, which can skew your judgment. The  following questions can help to keep the focus: Can you afford it? Is the location of value to you in terms of its accessibility to amenities such as schools, shops, your place of work, public transport? Is the location going to add to resale value? Tried and tested locations can ensure that the property performs as an investment in spite of market dips.  
 
4. Security sells.
Gated estates are holding and increasing in value all the time.

5. Calculate before you renovate.
The current market conditions make it far too easy to overcapitalise on a renovation. If you’re not seasoned in the game of renovation for resale, seek help from someone who is before you embark on any changes. Kitchens, bathrooms and state-of-the-art security are always value adders.

6. Avoid high risk decisions.
Greeff likens entering the current property market without some kind of financial buffer to sky diving without a parachute for the sheer thrill. “Having a fall back position allows you to make unhurried cool headed decisions, if you haven’t got a safety net, then it’s wise to put your energies into saving which will give you more leverage in turbulent times,”  says Greeff.

7. If you can’t sell, then rent out a secondary property.
There’s an increasing demand for residential and commercial space to rent in Cape Town and costs incurred by the landlord can be offset against tax payable on the rental income.

8. Be an impeccable landlord.
Keeping good tenants is your key to long-term investment returns – a high turnover of tenants can be costly.

9. Checking references.
Don’t leave any stone unturned when you check tenants’ references. “Make use of a reputable letting agent who will carry out all the required checks on your behalf – the benefits far outweigh the agency fee which is tax deductible from your rental income anyway,” says Greeff.

10. There’s still a chance for buyers to grab a bargain
“The buyers market is largely prevailing, and is likely to do so for another couple of years. If you can afford to buy, then get in now, particularly in the lower to middle priced brackets,” advises Greeff, adding that the super high priced market has largely remained bullet-proof with prices holding their own.  

By Hedi Lampert Kemper