If you have been thinking about buying investment property in the Cape Town CBD, the Bo Kaap may just be an area worth considering. Famous for its brightly coloured cottages, steep cobbled streets and rich Malay culture, this area has seen a number of major changes over the years. As urban improvement strategies continue to revive areas within the Inner City and its surrounding neighbourhoods, opportunities for investment become more available. The Bo Kaap is a well-known area for tourism within the Mother City, making this an excellent area for short term rental property.
What do you need to know about investing in this area, and what else should you keep in mind when buying investment property in Bo Kaap? Let’s take a look…
Thinking About Buying Investment Property in Bo Kaap?
While the area is largely residential, it is ideally primed for the short term market. The reasons for this are multi-fold, ranging from the proximity to major attractions within the City Centre, to the area’s famous brightly hued cottages, the museums, spice market and vibrant Cape Malay culture, the views of Table Mountain and the easy access to major roads. It is for this reason that many real estate brokers and property sellers are positioning Bo Kaap properties as ‘Airbnb ready’. That means that you can often find fully furnished cottages and apartments on the market that are already set for holiday rental.
In order to make the most from an investment in this area, consider the following when buying investment property in Bo Kaap:
- The Bo Kaap lies on the edge of the City Centre, between Tamboerskloof and De Waterkant. Amazingly, the area managed to largely escape the forced evictions of the apartheid era. Many families who live in Bo Kaap have been in their homes for hundreds of years, with entire generations sharing the cottages. The Cape Malay heritage can easily be seen in the style and design of the houses, as well as the presence of many mosques, an amazing spice market (Atlas Trading), an authentic Cape Malay restaurant (Bo Kaap Kombuis) and a strong community spirit.
- Properties range in value depending on the condition, size and location. You could easily find smaller cottages or apartments in the lower price spectrum, while larger, renovated properties fall within a higher price range. In order to preserve the charm of the area, renovations are limited to certain changes that enhance properties. Many upgraded properties feature gleaming wooden floors, modern kitchens and fresh coats of paint that make them ideal for holiday homes. Because accommodation in this area is in high demand, the value of short term rentals here makes it an excellent investment choice.
- Many properties are semi-detached, while there are also a number of apartments and larger free-standing properties found here. You will need to be fully sure of any regulations that apply to short term rentals when renting out property to travellers. Due to the area being largely residential, certain requirements may be needed in order to rent out your property on a short term basis. For your convenience, you will find a wealth of information relating to the legal aspects of short term rental management in our blog post on laws that apply to holiday rentals.
- The Bo Kaap is popular among business and leisure travel markets. This is great news for investors, as it means that you have a choice of markets to target. For business travel, the area is conveniently close to both the CBD and the Foreshore, with the Cape Town International Convention Centre (CTICC) located a short drive away. For the leisure markets, the area is popular among singles, couples, families and honeymooners wanting to be in an interesting, central area that is still a bit away from the hustle and bustle of the city.
- The area is generally safe and stress-free. Like anywhere else in the world, some precautions may be required to give your guests peace of mind. The simplest and most effective way to keep your guests happy during their stay is to consider holiday rental property management solutions. Finding the right property manager who is able to not only manage your property on a day to day basis, but also provide guest concierge services, booking calendar management and even assist you in marketing your property will be invaluable to your investment. You can also make simple changes to your property, such as installing an alarm system.
Do you currently have property in this area? Totalstay will help you get the most from your investment, whether you are buying investment property in Bo Kaap or you already own a cottage or apartment. Our holiday rental management strategies are designed to provide consistent growth, with a full service approach that is tailored around your unique needs. To learn more about what we offer, simply contact us today.