Why I invested in Camps Bay, South Africa

Why I invested in Camps Bay, South Africa

In May 2022, my husband and I invested in a house in Camps Bay. It was a 1940s home, with plans that dated back to when there was a tram between the beach and the base of the mountain.


Is it because of the beach?

Well, yes and no.


Cape Town is one of the most beautiful locations on Earth, and it is surrounded by ocean. Being close to the beach is a plus, but not the only or most important reason.


When making a financial decision this big, these are the points we considered.

  • What was the potential for capital growth of this property in the short term. For sure it would increase in the long term (all things equal), but would this give me capital appreciation sooner.
  • What was the potential to get high cashflow, to fund my investment and to grow my cash so I could further invest.
  • What was the future of this area expected to be?
  • How much control did I have over this property.

These are all important considerations to me because when I invest, I want both high capital appreciation (shorter term), and I want to pay my monthly expenses related to the property AND I want to earn sufficient cash flow from it.


Very often I find people investing in property, but their rental income barely covers their investment, and the property does not appreciate well enough.


The potential for capital appreciation is very important. People are under the misconception that property will ALWAYS appreciate, but this is not the case.


Some areas appreciate and others stay stagnant, or only appreciate after decades. You need to know when you want the capital appreciation to occur by.


Camps Bay, being on the Atlantic Seaboard, is in one of the most sought after areas on Earth, and it therefore appreciates far higher than most areas (ignoring the temporary drop in prices during the lockdown).


The future of Camps Bay also looks good. With Table Mountain sitting above it, and because of lots of investment in it being the optimal tourist destination, the outlook for Camps Bay gives me confidence in investing here.


And lastly, I wanted control over the property. Whilst I do own sectional title (I don't own the land, only a portion of the building), my preference is to own the land. Think the McDonalds strategy of owning land across the world, because land is what appreciates.


If I control the property, changes to the property are under my control. I say how the exterior should look and I control when I do renovations or fix things. I also control the rules of the property.

Ultimately...

I invested because this property is absolutely amazing, being 500m from the ocean, and ocean views from every floor.


When it is renovated, it will be an entertainer's paradise.

Would you want to stay there?

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