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 beyond reach of many young execs 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 stockholders asserts Gray. "With interest rates remaining consistently low, mortgages are very cheap 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 rent, in contrast to 20 to 30 years. "
Gray comments that price is an enormous 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 desire to be near a good school is another reason why folk look for property to rent."
According to Gray, a typical family could have their own rental properties, and elect to lease rather than own their own family home. No matter what the reason that folks are taking a look at property to lease, Gray says that there are is a huge 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 diverse social connections within a community, when it comes to property to lease Harcourts has found that there is only occasionally an issue with tenants of middle income family property. "
Harcourts SA 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 rent, and a full rental service whereby the investors hand over the day by day administration issues to Harcourts.
Gray points towards the Cape West Coast as an example where speculators are presently buying up property to rent thanks to the economic development area (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 folk hunting for higher density housing units due to employment opportunities coming from the IDZ. "
Gray says the existing residential housing stock is also at capacity and there are possibilities for investors who are supplying property to lease 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 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 stockholders asserts Gray. "With interest rates remaining consistently low, mortgages are very cheap 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 rent, in contrast to 20 to 30 years. "
Gray comments that price is an enormous 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 desire to be near a good school is another reason why folk look for property to rent."
According to Gray, a typical family could have their own rental properties, and elect to lease rather than own their own family home. No matter what the reason that folks are taking a look at property to lease, Gray says that there are is a huge 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 diverse social connections within a community, when it comes to property to lease Harcourts has found that there is only occasionally an issue with tenants of middle income family property. "
Harcourts SA 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 rent, and a full rental service whereby the investors hand over the day by day administration issues to Harcourts.
Gray points towards the Cape West Coast as an example where speculators are presently buying up property to rent thanks to the economic development area (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 folk hunting for higher density housing units due to employment opportunities coming from the IDZ. "
Gray says the existing residential housing stock is also at capacity and there are possibilities for investors who are supplying property to lease 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 an effect on price," concludes Gray.
About the Author:
Harcourts South Africa offer property for sale, property to rent,homes for sale, commercial leasing, rural property sales, lifestyle real-estate and business for sale right across SA.
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