Johannesburg - Owners are keeping their investment properties empty until the
World Cup soccer tournament in 2010, said Seef Properties on
Wednesday.
"I am increasingly being asked by owners to withhold their
investment property to ensure availability during the World Cup,"
Jules Arnott of Seef Properties said in a statement.
Arnott said that Match, the Fifa-endorsed ticketing and
accommodation booking agents for VIPs, sponsors and media to the
World Cup, did not cater for the marketing of non-graded
residential accommodation for the average fan.
He said there was "a huge demand" for beds predicted (65 000 in
some cities on peak nights), especially in central areas with easy
access to the Greenpoint stadium in Cape Town.
The number of beds available in graded accommodation
establishments could probably not cater for the huge number of
people expected into the country.
"It would certainly make sense to market your property for rent
during the Football World Cup," Arnott said.
"It's a once in a lifetime opportunity and excluding peak
holiday seasons when we accommodate our regular clients visiting
from overseas, and paying on favourable currency rates, most
homeowners will not see rental amounts like this being achieved,
even in peak holiday seasons."
He said last month a home in Camps Bay had been listed that
would be let out for R90 000 per day.
Arnott said property owners should take into account various
considerations.
"If your investment property is already fully furnished and
suitably equipped then it certainly makes good sense to market the
property for the winter months at peak summer rates.
"However, and this is highly relevant, if this means turning
down a longer term rental offer, the likelihood is you may be out
of pocket in the long run," he said.
This could see the property standing vacant in the run-up to the
tournament, and again afterwards during the notoriously quiet
winter months.
"This will more than wipe out any expected windfalls from the
tournament."
Arnott said his recommendation in this case would be to remain
open-minded to both long and short term rental opportunities.
"If your investment property is currently unfurnished then it
will almost certainly be prudent to keep it this way."
Arnott said to fully furnish and equip a one bed apartment cost
in the region of R100 000.
"You need to ask yourself how long it will take to recoup this
outlay.
"Furthermore, taking into account the current lack of
unfurnished apartments and the oversupply of furnished apartments,
I fully expect to see a glut of furnished properties standing empty
later next year."
Arnott said an unfurnished property should stay that way,
"albeit at a slightly lower but steady and predictable overall
monthly rate".
- Sapa