This prime Cape Town land is on sale for R200 000

Finding a plot in Cape Town for R500 000, let alone R200 000, is rare.

Once in a blue moon, an unbelievable property becomes available.

This is one of those instances.

Yet, attached to the unbelievable price is a huge caveat.

R200 000 Land on Auction

Four plots have an opening bid of R200 000 and no reserve.

The plots will be auctioned on 17 September and range from 379 square metres to 415 square metres.

But there’s a catch: each plot has been affected by a landslide.

In some instances, the homes previously erected on these parcels will need to be demolished.

Buyers will need to prepare for building costs and the steep insurance increases associated with buying this kind of land.

The listings suggest the body corporate will cover the cost of reinforcing the barriers on the four sloped plots.

But will that be enough?

According to a study published on ScienceDirect, 22% of landslide areas will experience at least 3 such events in 30 years.

Buyers should prepare for that.

If another landslide occurs, the home a buyer builds could be difficult to sell.

Insurance may not pay out because of the history.

Homeowners could also struggle to benefit from an area’s favourable property trends. They will need to disclose the landslide to any potential buyers.

De Tijger Property

Yet these plots will still draw significant interest.

All are in an estate in De Tijger.

Other properties on elevated plots are listed for R5.25 million.

A home on the same street as the affected plots sold for R2.7 million in July.

Beyond the estate, the average sale price in the area is R3 million.

So, getting land for sale closer to R200 000 is rare.

However, buyers may spend more depending on the auction action.

Buying at Auction

A no-reserve auction is enticing, especially with a starting bid of R200 000.

However, the eventual sale price is subject to confirmation and additional fees.

If a buyer wins the auction, they’ll pay a 2.5% deposit and a 10% auctioneer’s fee immediately.

They must pay the balance when the property transfers into their name.

Anyone interested in participating has to pay a refundable R50 000 deposit.

First-time buyers and novice bargain-hunters may want to sit this one out.