Location Location Location

Property can make you wealthy. I saw it a few years ago. Experienced it, even.

My wife and I bought a townhouse in an up and coming neighborhood in Cape Town, right below the University of Cape Town, with secure parking, next to the training center for doctors, and near a trendy area known for its night life.

We bought a brand new unit in this security estate for what would today be approximately $34,000. We sold two years later for what would be about $64,000 to a doctor in residence. A nice profit.

Why am I talking about property when so many people have gone and are going into foreclosure?

Because now is a good time to buy property. Wherever you are. Property here in Cape Town hasn’t slid, but it certainly has plateaued, and the exchange rate against the rand is the most favorable it’s been in years. And yes, I know an ethical real estate agent here in Cape Town that I can refer you to.

It’s also to make a point about property. If you have a place that is near where people want or need to be, you won’t have a problem renting it out or selling it. That’s why you want to pay heed to the oldest tenet of real estate. It’s all about location. If you buy somewhere and it’s a good location, you will almost assuredly make a good return on your investment, even in uncertain times.

Oh, and know your market. Because of endemic crime in South Africa, the fact our property was in a security estate helped Also, it was in a neighborhood that was not easily accessible, making crime in the area less prolific.

Yet perhaps this is what actually sealed the deal: our buyer liked living near where he worked.

(Originally published at The Creating Wealth Blog on 12/30/08)