SA Rental Property Demand Attracts Investment 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 reach of many young professionals on the Western Cape.
With middle class customers paying from R750 000 to R1.6m for a family home, demand for property to rent is receiving attention from investors claims Gray. "With interest rates remaining consistently low, mortgages are very cheap 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 hire, in contrast to 20 to 30 years. "
Gray comments that price is a big issue, although 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 desire to get close to a good school is one more reason why folks look for property to rent."
According to Gray, a normal family might have their own rental properties, and choose to lease rather than own their own family home. No matter what the reason that people are having a look at property to hire, Gray says that there are is a large 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 various social connections within a community, when it comes to property to hire Harcourts has found that there is very rarely an issue with of middle earnings family property. "
Harcourts SA offers a full property to rent service, from finding acceptable rental properties for investors and landlords to purchase , matching tenants with the right property to lease, and a full rental service whereby the speculators hand over the day to day administration issues to Harcourts.
Gray points towards the Cape West Coast as an example where backers are presently getting property to rent because of the commercial development area (IDZ) at Saldanha being given the green light, "Over the next 20 years it is predicted that there will be an inflow of young qualified people looking for higher density housing units due to employment opportunities arising from the IDZ. "
Gray says that the existing residential housing stock is also at capacity and there are opportunities for backers who are offering property to rent in the way of family houses close to the IDZ,"In the short term quality properties across the sector will experience demand pressure, which is going to have an impact on price," concludes Gray.
With middle class customers paying from R750 000 to R1.6m for a family home, demand for property to rent is receiving attention from investors claims Gray. "With interest rates remaining consistently low, mortgages are very cheap 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 hire, in contrast to 20 to 30 years. "
Gray comments that price is a big issue, although 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 desire to get close to a good school is one more reason why folks look for property to rent."
According to Gray, a normal family might have their own rental properties, and choose to lease rather than own their own family home. No matter what the reason that people are having a look at property to hire, Gray says that there are is a large 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 various social connections within a community, when it comes to property to hire Harcourts has found that there is very rarely an issue with of middle earnings family property. "
Harcourts SA offers a full property to rent service, from finding acceptable rental properties for investors and landlords to purchase , matching tenants with the right property to lease, and a full rental service whereby the speculators hand over the day to day administration issues to Harcourts.
Gray points towards the Cape West Coast as an example where backers are presently getting property to rent because of the commercial development area (IDZ) at Saldanha being given the green light, "Over the next 20 years it is predicted that there will be an inflow of young qualified people looking for higher density housing units due to employment opportunities arising from the IDZ. "
Gray says that the existing residential housing stock is also at capacity and there are opportunities for backers who are offering property to rent in the way of family houses close to the IDZ,"In the short term quality properties across the sector will experience demand pressure, which is going to have an impact on price," concludes Gray.
About the Author:
Harcourts S. A. offer property for sale, property to rent,homes for sale, commercial leasing, rural property sales, lifestyle real estate and business for sale right across South Africa.
posted by Vittoria @ March 28, 2014
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