Foreign Property Ownership not behind Price Hikes

A closer look at overseas buyers and what effect they have on the market.

Cape Town, South Africa – 14 June 2007 – While we have to accept that overseas buyers can definitely afford to splash out on luxury homes in South Africa more than most South Africans, we also need to understand that they are not the reason behind the recent property increases and they do, in fact, have a positive influence on the South African economy.

The property industry undertook some research to determine the actual extent of foreign purchases and just what affect they are having on property prices around the country. In a recent submission to the Department of Land Affairs, the Institute of Estate Agents of South Africa (IEASA) and the Residential Property Prices Report (RPPR) expanded on some basic research. The result? The debate about ‘foreign purchasers keeping South Africans out of the property market’ is nothing but an urban legend.

Joshua Raisun of Apartments and Homes International Realtors ( you can view the international realtors website at http://www.internationalrealtors.co.za ) said that the general feeling among South Africans is that overseas investors are purchasing all our properties, this is in fact not true. He explained that if you take into account last quarter along the Atlantic Seaboard, R42 Million was sold to overseas investors. This may not sound a lot but it only accounts for 4 properties out of 87.

With property prices constantly on the increase, you may find it difficult to find the right house for you at the right price. Below are 6 Tips you should consider when buying a home:

1. Don't stress — Find a 'fixer-upper' at an affordable price.
2. Find a good buy - A good buy is one that would equate to being between 20 and 25 percent less than the final selling price once renovated.
3. Up-and-coming areas - Consider areas that are being upgraded rather than traditionally sought-after suburbs which are usually a lot more expensive.
4. What's your budget? - Set a budget, preferably with the help of someone who knows how to cost out renovations.
5. ‘Cosmetic’ over ‘structural’ - Invariably, rundown properties are less expensive than their well-maintained counterparts in the same suburb. The trick is to find a property in an up-and-coming area that requires a cosmetic make-over rather than major structural work.
6. Don't think too big - Avoid major renovations as they are costly and you may end up over-extending yourself when you don't have the means or the know-how.

Apartments and Homes International Realtors have been operating along the Atlantic Seaboard for over 19 years and have thus gained invaluble experience concerning the area. After operating for so long out of the same office, they have now relocated to 176C Main Road, Sea Point where they hope to continue providing the very best service to their clients.

Contact Apartments and Homes International Realtors for more information on property in South Africa. Direct line: 021 439 4126 Email: info@capeholidays.co.za. Other helpful information regarding this press release can be found at: http://www.internationalrealtors.co.za

For More Information Contact:
International Realtors
Tel: 021 556 9009
Email: irho@mweb.co.za
Web: http://www.internationalrealtors.co.za

This release was published on openPR.