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SA Rental Property Demand Draws Investor Attention
Demand for property to rent is experiencing a high, according to Harcourts S. A. CEO Richard Gray, with entry level property prices of R400,000 being out of the reach of many young professionals on the Western Cape.
With middle class consumers paying from R750 000 to R1.6m for a family home, demand for property to rent is receiving attention from investors says Gray. "With interest rates remaining solidly low, mortgages are extraordinarily cost-effective and landlords who can afford a family home in a good area are discovering they can pay their investment off in 10 to 15 years on a property to lease, in opposition to 20 to 30 years. "
Gray comments that price is a huge issue, though not the only issue, "Many families with good incomes are in the market for property to rent for several reasons, work mobility is a good reason and also , the want to get close to a good school is a different reason why folks look for property to rent."
According to Gray, a common family could have their own rental properties, and choose to rent rather than own their own family home. Irrespective of the reason that people are having a look at property to lease, Gray claims that there are is a big demand for property to rent and that many of the tenants are in higher income bracket with stable employment.
"Landlords favour a tenant with stable employment and assorted social connections within a community, when talking of property to rent Harcourts has found that there is very rarely an issue with renters of middle income family houses. "
Harcourts South Africa offers a full property to rent service, from finding acceptable rental properties for financiers and landlords to purchase , matching tenants with the right property to hire, and a full rental service whereby the speculators pass over the day by day administration issues to Harcourts.
Gray points towards the Cape West Coast as an example where speculators are presently grabbing property to lease thanks to the industrial development section (IDZ) at Saldanha being given the green light, "Over the next 20 years it is predicted that there will be an in-flow of young qualified folk hunting for higher density housing units due to employment opportunities stemming from the IDZ. "
Gray claims the existing residential housing stock is also at capacity and there are chances for investors who are providing property to hire in the way of family property near the IDZ,"In the short term quality properties across the sector will experience demand pressure, which is going to have an effect on price," concludes Gray.
With middle class consumers paying from R750 000 to R1.6m for a family home, demand for property to rent is receiving attention from investors says Gray. "With interest rates remaining solidly low, mortgages are extraordinarily cost-effective and landlords who can afford a family home in a good area are discovering they can pay their investment off in 10 to 15 years on a property to lease, in opposition to 20 to 30 years. "
Gray comments that price is a huge issue, though not the only issue, "Many families with good incomes are in the market for property to rent for several reasons, work mobility is a good reason and also , the want to get close to a good school is a different reason why folks look for property to rent."
According to Gray, a common family could have their own rental properties, and choose to rent rather than own their own family home. Irrespective of the reason that people are having a look at property to lease, Gray claims that there are is a big demand for property to rent and that many of the tenants are in higher income bracket with stable employment.
"Landlords favour a tenant with stable employment and assorted social connections within a community, when talking of property to rent Harcourts has found that there is very rarely an issue with renters of middle income family houses. "
Harcourts South Africa offers a full property to rent service, from finding acceptable rental properties for financiers and landlords to purchase , matching tenants with the right property to hire, and a full rental service whereby the speculators pass over the day by day administration issues to Harcourts.
Gray points towards the Cape West Coast as an example where speculators are presently grabbing property to lease thanks to the industrial development section (IDZ) at Saldanha being given the green light, "Over the next 20 years it is predicted that there will be an in-flow of young qualified folk hunting for higher density housing units due to employment opportunities stemming from the IDZ. "
Gray claims the existing residential housing stock is also at capacity and there are chances for investors who are providing property to hire in the way of family property near the IDZ,"In the short term quality properties across the sector will experience demand pressure, which is going to have an effect on price," concludes Gray.
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Harcourts SA offer property for sale, property to rent,homes for sale, commercial leasing, rural property sales, lifestyle property and business for sale right across S. A..
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