Beaufort West has always carried the stigma of a “drive through” town on your way to better places like CapeTown. But this one horse town is fast becoming the central hub of economic activity in the Great Karoo.
Beaufort West was recently identified as the best place for the development of new uranium mines by Uranium One, Western Uranium and Signet Mining. And this means an influx of workers to the area. 2007 and 2008 witnessed large and unique opportunities for private investors to benefit from the growth prospects for this Karoo town. But, it doesn’t stop there…According to Property Invest, residential property in Beaufort West always traded at much lower levels than its neighbouring peers Graaf-Reinet andOutshoorn. Even though the N1Highway turned Beaufort West into a popular stop over for drivers travelling between Johannesburg and Cape Town, the tourism industry was always overshadowed by the attractions in other towns. Accordingly, residential property prices in Beaufort West are driven by local economic factors and the tourism industry has had very littleimpact.
Residential property investors are now enjoying healthy, long-term rental returns, in a market where the demandfor quality rental property is booming. No property investor would’ve touched Beaufort West with a barge pole fiveyears ago and many investors haven’t caught onto the excellent market yet. This is just one of the reasons this little town is the perfect place for future growth and investment.
Prime property in Beaufort West is still very affordable and you should easily find good value formoney. A standard house in Beaufort West can be up to R100,000 cheaper than a similar house in Graaf-Reinet.
Quality rental properties are steadily decreasing resulting in a huge demand for excellent rentals.
Economic growth is taking off and spending power within the community’s increasing as mining developments continue to flourish.
There’s a massive influx of qualified people and their families moving into the town.
New businesses are thriving, delivering support services to the mines.
Rural property’s becoming increasingly popular as a lifestyle orinvestment alternative.
What makes now a good time to invest in Beaufort West property? Timing is everything. 2009 is going to be a bumper year for this booming town. Mining operations are coming online and the fact that Tito Mboweni dropped the interest rates yet again is definitely playing into investors’ favour. Massive drops in residential property values might soon be the case in the overheated urban market, but prices inrural areas, such as the Karoo, are still in an upward growth trend and showing no sign of slowing down.
“Though Karoo properties have shown excellent returns over the last five years, the prices haven’t gone over the top as they have in Cape Town, the wine lands and most coastal areas," says Elaine Hurford of Pam Golding Properties.
The Karoo attracts an entirely different sector of buyers. Most buy with cash and often purchase properties for retirement or as second homes. So, if you’re looking for a long-term investment opportunity that’s showing promising growth, good value and even a retirement or holiday home option, this area may be a worthwhile option.
As published in issue 81 of