When you’re looking into investing in property for the sake of long-term wealth accumulation, choosing the best property investment type is a key step. As a property investor in South Africa, you are spoilt for choice!
In partnering with IGrow, you have some property type choices to make. These include choosing from apartments in security complexes, houses in security complexes and freestanding homes. Each property type offers unique benefits that depend on community setup, lifestyle, location and your specific financial goals.
With the variety of property investment types available, how do you choose what works best for your portfolio?
In this blog post, we’ll look into the pros and cons of each property type for both, investors and tenants. You will then be able to decide which is the best type of property to invest in. Suburb choice will also be explored in our quest to find you the best property investment deal!
Why does property type matter?
The property investment type you choose to invest in, affects your ROI. Are you looking for good rental output and tenant appeal, or are you focusing on long-term appreciation? At IGrow Wealth Investments, our team have vast experience in finding top-performing apartments in secure complexes, houses in secure complexes, or freestanding homes. The choice of property type is based on your profile as a property investor.
Figuring out which property investment type is the best choice will affect your rental profit margin or capital growth. You should decide on an investment strategy, together with our property investment specialist, that is a hybrid strategy that caters to both rental returns and capital growth.
1. Apartments situated in security complexes
Apartments found within security complexes are an attractive option for beginner and seasoned investors. These properties are affordable, easy to look after, and offer excellent rental yield and ROI.
Tenants, particularly working professionals and students, enjoy the wonderful amenities on offer. These can include: gyms, yoga studios, swimming pools, braai areas and clubhouses, co-working spaces, on-site cafes and creches, communal green walkways, and even running or walking trails. The 24/7 security available in these complexes is highly sought-after by tenants.
Apartments do have limited space and slightly slower capital appreciation than a house. Yet, flats or apartments are still considered one of the best type of properties to invest in. Investors need to follow Body Corporate rules, which may hinder specific architectural customisation. This would only be the case if the apartment block is built to a specific set of guidelines.
That is why buying off-plan can be a winning idea. Certain off-plan developments allow you to customise your property according to your aesthetic and design requirements. View one of our recent blog posts on the benefits of buying off-plan and the current off-plan properties we have available at IGrow: 6 Steps to Purchasing Off-plan Properties.
2. Houses in Security Complexes
Houses in security developments have the privacy of a freestanding home combined with the bonus of 24/7 security and a community living space. These are usually full-title or sectional-title properties. They appeal to families looking for a secure lifestyle. These residents usually want access to green areas or garden spaces, children’s recreational areas, and for young families, it’s ideal to have an on-site creche or schools and shopping centres within the vicinity of the complex.
From an investor’s perspective, houses offer more room than apartments and also secure a longer-term tenant. This property investment type encompasses a great balance between appreciation and rental income. This type of property investment suits a mid-tier investor, looking for growth of their property portfolio or even increased passive income potential from renting out the house in a secure complex.
IGrow Wealth Investments offers well-researched, prime investment opportunities in the form of houses in security complexes. Our team seeks out high-value and high-return houses, ideal for investors seeking property portfolio expansion in a secure setup.
3. Freestanding Houses
Freestanding houses offer residents the most independence. For investors, you can renovate or expand the property, should you wish to. Homes such as these usually have bigger plots, large volumes of living and garden space. They attract long-term tenants like families who value privacy and less restrictive complex rules.
Freestanding homes often have stronger capital appreciation than sectional-title units. They are a powerful tool to build long-term wealth accumulation.
On the downside, freestanding homes have no shared or communal services. Communal maintenance, upkeep, and 24/7 security found within a security complex are unfortunately not part of a freestanding property’s perks, and this can be costly and time consuming to keep up, making your investment less hands-free.
As an investor, you can choose to invest in a security alarm and property perimeter beam system. This will be tied to a local neighbourhood watch security company. Choose a security company that does regular driven patrols of the area. There may even be monitored CCTV cameras in the suburb too. Look out for areas with strong neighbourhood watch reputations and great security. These are drawcards for tenants.
Because of the higher cost point of freestanding homes, these are usually handled by IGrow Real Estate International, who are also integrated with IGrow Rentals for tenant and property management, as well as IGrow Home Loans, IGrow Trusts and IGrow Accounting and Tax Services.
View IGrow Real Estate International for freestanding homes for sale.
Prime suburbs to invest in
Regardless of the type of property investment you choose, location is critical. Some suburbs deliver higher rental outputs, while other suburbs deliver guaranteed strong appreciation. Ideally, you would like to have both benefits.
Based on market research and investor performance, the following areas are some of the best areas, in which to buy at the moment.
Sandton & Rosebank (Johannesburg)
These are prime areas for executive apartments with high rental yields and consistent appreciation.
Circa Illovo in Sandton, Johannesburg, offers studio and one-bedroom apartments from R814,490. This prime location is close to business hubs and offers both luxury and convenience. Complex perks include co-working spaces, a cinema area, games and recreation room, a gym, a swimming pool, and braai pods. It is also an Edge-certified Green building.
This means the building meets certain energy-efficiency measures and offers lower utility bills for tenants. Read more about EDGE-buildings IGrow offers and the perks for both tenants and investors in a recent blog post: IGrow Edge building Certification for Eco-Conscious Investors and Tenants.
Park Central in Rosebank, Johannesburg, offers 2-bedroom luxury apartment units starting from R 3 150 000. Rosebank is a strong business hub, and is also only 5km from Sandton. It has a great mall with the famous Rooftaop Market, and is just over 1km away from a Gautrain station. The luxury allure comes in the form of a gym, gourmet kitchen facility, neighbourhood greenbelt, storage facilities and a rooftop terrace, swimming pool and slow lounge.
Pretoria East, West and North
These suburbs are blooming with new developments. This area is perfect for tenants seeking conveniently accessible apartments found within security complexes.
True North in Sinoville, Pretoria, offers ideal one and two-bedroom apartments from R685 900. The complex is walking distance to a variety of local schools, Sinoville Shopping Centre, and medical facilities and a convenient commute to the University of Pretoria.
Woodlands Lane in Pretoria East offers apartments priced from just R999 000. The complex has a community feel with open spaces, a clubhouse, communal swimming pool and braai areas for residents to enjoy together. This complex offers a sought-after retreat from busy city life. This is an off-plan development option (you can buy directly from the developer) with occupation from 2026. These units are found in a high capital growth node.
Coming soon are apartments in Pretoria West (Due West) where there is a great increase in demand for affordable, secure apartments close to the city centre and good schools.
Mowbray (Southern Suburbs, Cape Town)
The Kingsley in the Southern Suburbs is conveniently located in Mowbray, only 750m from UCT main campus. The designer studio apartments on offer are priced from R1 199 000. This complex presents an excellent investment opportunity, as this area is highly sought-after by UCT university students and professionals working nearby, with Amazon headquarters only 2km away. There is also easy access to major highways. Good local restaurants can be found nearby and the popular Cavendish Square Mall is a 5km drive away. Contact IGrow Real Estate International to learn more about this and other excellent Cape Town properties.
Parklands (Northern Suburbs, Cape Town)
Parklands is a hotspot for affordable security estate apartments situated near the beach and transport hubs. This offers an idyllic lifestyle for tenants.
The Residence in Parklands North, Cape Town, offers units priced from R1,135,000 for 2-bedroom apartments. This complex is also EDGE-Certified.
These apartments are fully tenanted, offering immediate rental returns and financial security. The utility bills will also be lower, given that the units are all energy-efficient and built according to Green Building Standards in South Africa. They appeal to an eco-conscious tenant and investor. View our recent blog post that explores the perks of this investment opportunity at the EDGE-certified The Residence complex: Prime Buy-to-let Units in Investment Property Security Complexes in Cape Town.
Somerset West (Cape Town)
Popular houses in security estates in this area offer excellent capital growth and long-term demand.
Summer View Estate in Somerset West offers stunning double-storey houses from R2, 537, 485 in a secure estate. This complex is situated on a farm-style estate. There are dams and parks within the development, and kids’ feeding areas to feed the farm animals.
Jogging trails and a gym are available for tenants who enjoy their fitness routines. There is also access to a clubhouse and an on-site restaurant. Residents have preferential entry for their children to attend Mountainview Creche. This development offers a wonderful farm lifestyle and luxury, modern, and comfortable homes.
| Property Type Comparison |
| Property Type | Pros | Cons |
| Apartments in Complexes | Affordable, safe, excellent tenant demand, minimal maintenance | Limited space, body corporate rules, and slightly slower appreciation |
| Houses in Complexes | Private, family-friendly, safe, extra space, good rental & resale value | Higher entry price than apartments. Higher maintenance costs |
| Freestanding Houses | Offers the most space and privacy, a good option for capital growth, full ownership control | Higher maintenance, security is the owner’s responsibility, higher cost, lack of communal spaces & community lifestyle |
This table illustrates the pros and cons of apartments and houses in security complexes and freestanding houses. We will explore in more detail.
Which Is the Best Type of Property to Invest In?
Finding the best type of property for your investments should match your financial goals. If you are a novice investor, apartments are the smart choice.
If you are looking for strong rental demand and low-risk properties, houses in security complexes are both secure and scalable.
For the highest long-term capital growth, freestanding homes are a good bet.
At IGrow, we offer all of the property types we have discussed. With the IGrow team at your side, we will help you choose the best investment property type based on our strategic guidance, your budget and needs as an investor.
Why should you partner with IGrow Wealth Investments?
We are not just about selling rental properties. We offer you end-to-end investment options based on property market research, mentorship, and our excellent property management services.
Whether you are looking to invest in a modern, or a safe and convenient apartment in Rosebank, Johannesburg, or even a family home in Somerset West with an incredible farm life set-up, IGrow Wealth Investments will guide you on your property journey.
IGrow offers the perks of:
- Below-market prices
- Certain already tenanted units offering immediate rental income
- Excellent strategic, legal and financial support
- Security complexes (with a choice of apartments and houses) and freestanding house options
- Nationwide opportunities in South Africa in high-demand suburbs
Conclusion
Finding the answer to the best investment property type is no easy feat! It requires guidance, goal setting and strategic planning, which we offer you at IGrow. We help you match your strategy to the most appropriate investment property type, according to your needs. We offer premium properties in top-performing suburbs.
Book a consultation with an IGrow property investment specialist today. Allow us to help you build for your future, one wise property move at a time!
