Whether you are buying to rent, or buying a new home for yourself, flats are excellent and affordable investments.
Where you would struggle to find a three bedroom house in a nice neighbourhood for anything under R1,2 million, you could easily find very nice flats for sale for just over R700 000. This could almost half your monthly payment.
First time buyers would therefore find that flats for sale are much more affordable than a house, and because it is smaller and more compact, maintenance will also be cheaper.
In many instances you might find it easier to rent out a flat than a house. This is partly because flats are usually smaller and therefore easier to maintain than a house. It would also be slightly cheaper than renting a house with a huge garden.
While hunting for flats for sale, remember to watch out for a few things. Most importantly you have to find out what the levies are in the specific complex that you are buying. Levies are not necessarily a bad thing. Amongst others, it pays for the general maintenance and improvement of the complex. A neat, safe and tidy complex is a pleasure to live in, and will also add to the value of your property should you want to sell later on. It will also make the property much more attractive to potential tenants. However, levies can sometimes be ridiculously high without offering much in return.
Other things to look out for include the following:
- Is the complex situated in a good neighbourhood?
- How safe is the complex and the specific flat that you are looking at?
- Who are your neighbours? You don’t want to live right next door to a 24-hour student party!
- How old is the complex? Older buildings usually need more maintenance.