A consistent performer is what you need when financial markets are unsteady.

For first time investors looking to build a portfolio on bricks and mortar, South African property offers real growth prospects. And none more so than the revived commercial hubs near the inner cities with their consistently appreciating property values.

Offering huge potential in the medium sector of the residential market, areas such as Maitland in Cape Town are showing real returns of 10.4% after inflation.

Capitalizing on this growth are Meggar Property Brokers, developers of some of Maitland’s burgeoning apartment blocks. Particularly for the first time investor, these properties offer excellent returns in an area with a high demand for rental accommodation. But what fuels this need?

“The almost 0% vacancies in residential properties in the area is most likely due to their proximity to the city and N1 or N2 routes as well as their accessibility to public transport’, says David Rebe, Director of Meggar Property Brokers.

Coupled with the fact that certain nodes of Maitland have been apportioned to the Urban Development zone, it is no surprise that the area features as one of the country’s leading residential areas to invest in.

FNB property economist John Loos says that South Africa’s ongoing property boom is making a significant contribution in upgrading previously less favoured areas. He says that as the more illustrious addresses in former upmarket suburbs have become increasingly overpriced, the search for value will continue to shift to lower price suburbs.

So what should a first time investor be looking for in the current market?

Having been involved in the property game for the past six years, Rebe says that first time investors wanting to build a property portfolio should be careful not to overextend themselves.

"By investing in a property at R500 000.00 and below they are managing the risk of having exposure to the bank. They should also try investing in an area with good capital growth potential. An area like Maitland, coming from a low cost base, has that potential. It would be prudent to invest in an area with high rental demand."

"Lastly for people new to the property game, they should look towards utilising the skills of those in the business to manage their units and collect their rentals. You need people with the expertise and knowledge to vet tenants and collect rentals on time."

It is this expertise that Meggar Property Brokers offers first time investors. Their latest development, The Highlands, will be a fully managed solution offering buyers a 2-year low risk investment with their 1 or 2 bedroom or bachelor units priced from R299 000.00 to R519 00.00.

With a conservative forecast of 15% growth over the next 2 years, bearing in mind a looming decline in interest rates and the economic growth driven by the 2010 World Cup, investors will have to contribute approximately R10 000.00 in the first year plus the initial 5% deposit of R25 000.00 to see a return of R80 000.00.

Compare this to a bachelor apartment in Sea Point, where you would have to spend R1million to achieve the same rental as a R500 000.00 property unit in Maitland.

Property agents concur that Maitland is showing all the signs of an area preparing itself for a Renaissance offering value, diversity and potential. For astute investors the opportunities for good returns lie in the higher density apartment investments and in a clever choice of regional growth areas.

The fortunes of many property moguls have been built on the talent of recognizing potential. And with a volatile stock exchange, property still offers the strategic investor a better return with less risk right now.