Property prices are dropping

Properties are a good investment in the long term. However, for this investment you need to have a certain 'investment horizon'. In other words the time to recover from dips in the market.

Since 2008 prices of properties in South-Africa have dropped. Inflation, rising costs of fuel, food, electricity and the household debt levels are responsible for this.

I have noticed the changes here in the area. For example the Moditlo Game Reserve, where one could buy a 1 hectare full title deed stand for R450,000 in 2008, now prices come closer to R250,000! So property prices are dropping and this means opportunities for buyers: as you can
do really good deals now. I believe this is a good time to invest in a property.

There are however also strongholds, of which Olifants West in the Balule Nature Reserve is a good example. This is a highly sought-after area in Big-5, where you can still own 21 hectares of land claim free wilderness, close to Hoedspruit (the entrance gate is only ten minutes from town) and incorporated in the Greater Kruger Park.

Here the prices have risen, first strongly from 2000-2008, and the more gradually since 2008. So, if we consider the current market: is it a good choice to buy in the Olifants West? Again, if your investment horizon is long enough then yes. Also, if you want to enjoy living in a Big-5 area this is a good choice.

Properties have shown to be a good –long time- investment, and the really nice thing is that you can enjoy living in your own house. Remember that your investment will pay itself out once you have sold the property with a profit.

Regards from the bush,
Corné van Dongen.
Property Consultant Century21 Wildlife Properties Hoedspruit.