Demand for property to rent is experiencing a high, according to Harcourts SA CEO Richard Gray, with entry level property prices of R400,000 being beyond reach of many young pros 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 financiers asserts Gray. "With IRs remaining solidly low, mortgages are awfully affordable 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 affordability is a big issue, but not the only issue, "Many families with good incomes are in the market for property to hire for many reasons, work mobility is a good reason and also the desire to be close to a good school is another reason why folks look for property to rent."
According to Gray, a normal family could have their own rental properties, and make a choice to hire rather than own their own family home. Irrespective of the reason that folk are looking at property to lease, Gray says that there are is a big 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 talking of property to rent Harcourts has found that there is very rarely a problem with tenants of middle earnings family houses. "
Harcourts South Africa offers a full property to rent service, from finding appropriate rental properties for speculators and landlords to purchase , matching tenants with the right property to hire, and a full rental service whereby the stockholders hand over the day by day administration issues to Harcourts.
Gray points towards the Cape West Coast as an example where speculators are at present grabbing property to lease because of the industrial 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 folk hunting for higher density housing units due to employment opportunities coming 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 rent in the way of family property in the proximity of 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 financiers asserts Gray. "With IRs remaining solidly low, mortgages are awfully affordable 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 affordability is a big issue, but not the only issue, "Many families with good incomes are in the market for property to hire for many reasons, work mobility is a good reason and also the desire to be close to a good school is another reason why folks look for property to rent."
According to Gray, a normal family could have their own rental properties, and make a choice to hire rather than own their own family home. Irrespective of the reason that folk are looking at property to lease, Gray says that there are is a big 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 talking of property to rent Harcourts has found that there is very rarely a problem with tenants of middle earnings family houses. "
Harcourts South Africa offers a full property to rent service, from finding appropriate rental properties for speculators and landlords to purchase , matching tenants with the right property to hire, and a full rental service whereby the stockholders hand over the day by day administration issues to Harcourts.
Gray points towards the Cape West Coast as an example where speculators are at present grabbing property to lease because of the industrial 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 folk hunting for higher density housing units due to employment opportunities coming 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 rent in the way of family property in the proximity of 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.