Like many things in life, the economy ebbs and flows in cycles, and it’s worth paying attention to because economic shifts affect everything from jobs to interest rates and stock markets. In challenging times such as the ones in which we find ourselves, it’s tempting to step away from spending money, especially on big ticket items like property, to wait for the outlook to improve. However, investors with a long-term horizon would be better served by looking at the bigger picture.

By purchasing property in the region of a trough in the economic cycle, like we are currently seeing, you could set yourself up to capitalise once the economy picks up… and it always does. It’s important to look further ahead than the immediate future because property investment is rarely a short game – you need to stay in it in order to reap meaningful rewards. But if you choose carefully and make sure you purchase from a reputable developer, you could benefit greatly.

It’s important to clarify in your own mind, why you are thinking of investing in property. There are usually two main reasons – purchasing a place to stay, or buying something that you would like to rent out. In both instances, a sectional title apartment as opposed to a freestanding house, is the property type that probably makes the most sense in terms of investment.

1. Relative affordability

While the top end of apartment price tags can be in the many millions, and outstrip the selling prices of houses, there are some great deals to be had, especially when purchasing off plan as there are no transfer fees, for example. And not only is a brand-new apartment fantastic to live in yourself, but of course it also attracts premium tenants, compared with older less modern units. Even if all you can afford is a small unit, this could work in your favour, as these are often more popular on the rental market, again due to affordability.

2. Demographics

Apartment living appeals to a broad swathe of people – not only young singles starting out in their careers, but also regular business travellers, young families, parents who are scaling down after their children have left home, older couples and more. The point is: whether you want to rent it out in the short term, or resell it in the long term, an apartment is a great buy because it appeals to so many different kinds of people.

3. Developer

The third why in which an apartment can make for a sound investment, is when it comes with the backing of a good developer. Choose carefully because not all developers operate along the same scrupulous lines, but if you go with a strong track record and good reputation, you stand a fair chance of investment success. Something else to look out for is a developer that retains ownership and management of their developments after construction is complete. This means they have a vested interest in the success of the scheme in the long term and offers another safeguard in terms of your investment.

The Amdec Group, developers of One on Whiteley at Melrose Arch, retains ownership of all their large-scale projects. Their team of passionate professionals look after every aspect of the daily running of this award-winning precinct. Please contact Tersia Taljaard on 087 897 0222 or email tersiat@amdec.co.za to discuss opportunities at Melrose Arch, or any other of the Amdec Group’s developments.