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Lessons from a Bad Property Investment

I could have and I should have...
I could have and I should have...

It's not often that we look back on a decision and pinpoint it as a glaring mistake, yet that's the unfortunate reality for many who venture into the world of property investment. Such is my experience with a set of properties in Gauteng, acquired back in 2005. An investment that should've flourished only dimmed with time, leading me to sell one particular two-bedroom apartment in October 2023 for R225,000, despite its initial purchase price of R460,000.

So, What Went Wrong?

Before delving into the missteps, it's crucial to understand the fundamental criteria for a successful long term buy-to-let property:

  1. High Commercial and Economic Activity: An area should be bustling with commercial and economic prospects that show no sign of waning.

  2. Accessibility: Easy access to work, schools, and major routes is vital.

  3. Political and Social Climate: Awareness of local political climate and crime rates can greatly influence an investment.

  4. Robust Rental and Property Management: Partnering with a dependable management team is non-negotiable.

  5. Developer's Reputation: The track record and financial standing of a developer can make or break an investment.

When I reflect on my enthusiasm back in 2005, it's evident that I was far too trusting and didn't probe deep enough.

High Commercial Activity: I banked on hearsay regarding a major company shifting to the area. Investing based on a single factor is akin to placing all your eggs in one basket; should that basket break, the aftermath is disastrous.

Accessibility: My property was tucked away on the outskirts with limited connectivity to the major city. Such a location significantly restricts the pool of potential tenants.

Political and Social Climate: The area's stagnation led to unemployment and associated social challenges. Astonishingly, I overlooked crime rates entirely, leaving me unaware of its current status.

Rental and Property Management: Opting to "hope for the best" rather than conducting thorough research on rental and property management companies was a grave misstep.

Developer's Reputation: I had blind faith in the developers, assuming that all involved in property had my interests at heart. A risky and naive presumption.

While these errors proved costly, they provided invaluable insights.

The Haasendal Estate Difference

Contrastingly, Haasendal Estate's The Links and Silverviews apartments stand as paragons of investment opportunities, seamlessly meeting all the aforementioned criteria. Located in the booming Northern Suburbs of Cape Town, they are nestled in an area known for thriving commercial and economic activity, boasting accessibility, a stable political climate, and the support of reputable developers and property managers.

The bottom line? Not all property investments are created equal. My Gauteng experience was an arduous lesson, but it underscored the importance of meticulous research and due diligence. For those seeking a sound investment, I urge you to consider Haasendal Estate. Luxury Apartments start from under a million rand, with 3-bedroom double garage free standing homes ranging from R2.4 mil up to R4 million. Contact Christo Booysen at 082 494 9255 for more details on this remarkable estate that offers an abundance of amenities at your fingertips.

snapshots of Haasendal Estate
snapshots of Haasendal Estate

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