There is a house in Knysna Central that I have been watching closely. It sold some years ago and was financed by a hundred percent bond for an amount of two and a half million. Its almost got business rights. But not quite. There are complications. That is in addition to the complications most buyers bring to the table.

Measuring the value of a commercial property is a lot easier than trying to do  the same in the residential market. When it comes to the home,  it is usually the wife who buys. She makes all the important decisions and there is no predicting what can happen. Much like the weather but if its office space you are looking at, all you have to do is calculate the rate of return you  expect, ask yourself whether its achievable and there you have your price.

That property with its two and a half million rand bond is not even worth five hundred thousand in today’s market.

So what happened to the missing two million?

One might well ask and if you are planning on buying property in Knysna or worse still a retirement business make sure you speak to someone who is going to give you the sort of advice you don’t want to hear. Peter Dijkstra runs Knysna Properties for Sale. He runs a concierge service and if you are looking for the other side of the story he does not leave anything out.