Demand for property to rent is experiencing a high, according to Harcourts South Africa 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 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 rates remaining regularly low, mortgages are awfully cost-effective and who can afford a family home in a good area are finding that they can pay their investment off in 10 to 15 years on a property to lease, in contrast to 20 to 30 years. "
Gray comments that cost is a huge issue, though not the only issue, "Many families with good incomes are in the market for property to rent for a variety of reasons, work mobility is a good reason and also , the need to be near a good school is one more reason why folk look for property to rent."
According to Gray, a common family may have their own rental properties, and make a choice to rent rather than own their own family home. Whatever the reason that people are looking at property to lease, Gray announces that there are is a large demand for property to rent and that many of the tenants are in higher earnings bracket with stable employment.
"Landlords favour a tenant with stable employment and various social connections within a community, when it comes down to property to lease Harcourts has found that there is never with of middle income family houses. "
Harcourts S. A. offers a full property to hire service, from finding appropriate rental properties for investors and landlords to purchase , matching tenants with the right property to lease, and a full rental service whereby the investors relinquish the daily administration issues to Harcourts.
Gray points towards the Cape West Coast as an example where investors are at present buying up property to hire due to the industrial development zone (IDZ) at Saldanha being given the green light, "Over the next 20 years it is anticipated that there will be an influx of young qualified folks searching for higher density housing units due to employment opportunities arising from the IDZ. "
Gray says the existing residential housing stock is also at capacity and there are chances for backers who are providing property to hire in the way of family homes close to the IDZ,"In the short term quality properties across the sector will experience demand pressure, which is going to have a repercussion 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 rates remaining regularly low, mortgages are awfully cost-effective and who can afford a family home in a good area are finding that they can pay their investment off in 10 to 15 years on a property to lease, in contrast to 20 to 30 years. "
Gray comments that cost is a huge issue, though not the only issue, "Many families with good incomes are in the market for property to rent for a variety of reasons, work mobility is a good reason and also , the need to be near a good school is one more reason why folk look for property to rent."
According to Gray, a common family may have their own rental properties, and make a choice to rent rather than own their own family home. Whatever the reason that people are looking at property to lease, Gray announces that there are is a large demand for property to rent and that many of the tenants are in higher earnings bracket with stable employment.
"Landlords favour a tenant with stable employment and various social connections within a community, when it comes down to property to lease Harcourts has found that there is never with of middle income family houses. "
Harcourts S. A. offers a full property to hire service, from finding appropriate rental properties for investors and landlords to purchase , matching tenants with the right property to lease, and a full rental service whereby the investors relinquish the daily administration issues to Harcourts.
Gray points towards the Cape West Coast as an example where investors are at present buying up property to hire due to the industrial development zone (IDZ) at Saldanha being given the green light, "Over the next 20 years it is anticipated that there will be an influx of young qualified folks searching for higher density housing units due to employment opportunities arising from the IDZ. "
Gray says the existing residential housing stock is also at capacity and there are chances for backers who are providing property to hire in the way of family homes close to the IDZ,"In the short term quality properties across the sector will experience demand pressure, which is going to have a repercussion 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.
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