Should Investors Consider Houses for Sale in Mitchells Plain?
I’m often asked by investors whether the houses that are for sale in Mitchells Plain could be considered as good an investment as those in more affluent areas. While Mitchells Plain may have started out as a ‘coloured township’ in the ’70’s, it has radically evolved over the last 4 decades and unless you are aware of the changes and developments of the area you could very easily miss out on some great investments.
You see, in the past the area had a stigma attached to it. It was considered dangerous and you were considered less fortunate if you lived in the area. However, many young people who were born and raised in so-called better areas that their parents ‘upgraded’ to over the years have began to move back to Mitchells plain and swoop up the houses for sale in the area. The chief reason for this is affordability. You can get great value for money. This naturally attracts many young families who could afford far less in the areas they grew up in. Therefore the 1.8million people residing there are from all walks of life, race and culture.
What most people do not realize it that there over 10 sub areas within Mitchells plain and property in these sub-areas vary largely. You can find a houses that sell for as little as R160,000 in one area and as much as R650,000 in another area. Obviously where the property prices are low, the area is not as desirable and vice versa.
Investors often overlook Mitchells Plain properties as good rental investment. Ironically, it’s probably one of the most lucrative investments you can make if you buy at the right price and in the right sub-area.
It is possible to buy a house in Michells Plain in a sought after sub-area for between R300,000 and R380,000. This property can then be let for between R3,000 -R3,500 per month which, depending on what interest rate the bank gives you, may cover your total bond installment. In most cases the rental income would cover at least 90% of your bond repayment, which is uncommon for more affluent areas where investors easily subsidise their rental properties for up to five years to get the same break-even point where rental income covers the bond repayments.
So, investors, next time you consider buying houses to let, you may want to consider the treasures of Mitchells Plain.