Liza Wright, area specialist for Homenet Mercantile, says according to deeds office figures about 3% of all property sold in East London is in the Cambridge and Cambridge West areas, and adds that there is steady demand because the areas offer a wide range of properties and are centrally located and close to good schools, shopping centres, and other amenities."The distinct difference between Cambridge and other centrally located suburbs is that by comparison its properties are more affordable, even though prices have increased in line with other parts of East London.
"Prices in Cambridge and Cambridge West now start at about R550k and go up to around R950k, with the occasional home selling for over R1m. However, most buyers who could afford a home over R1m would probably choose another area."
There is currently a certain amount of new development taking place in Cambridge and Cambridge West, but only where there is vacant land, and Wright says there are only small pockets available.
"Small townhouse developments are starting to pop up in the area, but these are only financially viable for buyers if the developer is able to purchase the land at a reasonable price. Meanwhile subdivision of large plots is an emerging trend."
She cautions that while it is obviously still possible to purchase older properties in Cambridge, fix them up and resell for a profit, buyers need to be careful to secure the home initially at a good price.
"They should then make sure that the renovations are not too extensive so that the eventual resale price will be market-related and within the ceiling price for Cambridge."
Wright says renovating buyers must also take into account the "hidden costs" of buying and selling again quickly, including transfer and bond costs, commission to the agent to resell, bond cancellation costs, and capital gains tax, as well as bond repayments while the property is being renovated and marketed.
Image: This is a prime example of a beautifully renovated home in Cambridge, East London.
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