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 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 investors says Gray. "With IRs remaining consistently low, mortgages are very cost-effective and landlords who can afford a family home in a good area are discovering that 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 an enormous issue, though not the only issue, "Many families with good incomes are in the market for property to lease for many reasons, work mobility is a good reason and also , the desire to be near a good school is one more reason why people look for property to rent."
According to Gray, a typical family may have their own rental properties, and elect to hire rather than own their own family home. Irrespective of the reason that folk are having a look at property to hire, 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 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 homes. "
Harcourts SA offers a full property to lease service, from finding suitable rental properties for financiers and landlords to purchase , matching tenants with the right property to hire, and a full rental service whereby the stockholders relinquish the day by day administration issues to Harcourts.
Gray points towards the Cape West Coast as an example where investors are presently getting property to rent 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 inflow of young qualified folks hunting 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 stockholders who are supplying property to rent in the way of family property 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 IRs remaining consistently low, mortgages are very cost-effective and landlords who can afford a family home in a good area are discovering that 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 an enormous issue, though not the only issue, "Many families with good incomes are in the market for property to lease for many reasons, work mobility is a good reason and also , the desire to be near a good school is one more reason why people look for property to rent."
According to Gray, a typical family may have their own rental properties, and elect to hire rather than own their own family home. Irrespective of the reason that folk are having a look at property to hire, 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 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 homes. "
Harcourts SA offers a full property to lease service, from finding suitable rental properties for financiers and landlords to purchase , matching tenants with the right property to hire, and a full rental service whereby the stockholders relinquish the day by day administration issues to Harcourts.
Gray points towards the Cape West Coast as an example where investors are presently getting property to rent 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 inflow of young qualified folks hunting 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 stockholders who are supplying property to rent in the way of family property 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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