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 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 stockholders asserts Gray. "With interest rates remaining regularly low, mortgages are extraordinarily cheap and 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 lease, 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 need to be close to a good school is one more reason why folk 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 announces that there are is a huge demand for property to rent and that many of the tenants are in higher revenue bracket with stable employment.
"Landlords favour a tenant with stable employment and diverse social connections within a community, when it comes to property to rent Harcourts has found that there is never a problem with renters of middle income family homes. "
Harcourts SA offers a full property to hire service, from finding suitable rental properties for speculators and landlords to purchase , matching tenants with the right property to rent, and a full rental service whereby the investors pass over the daily administration issues to Harcourts.
Gray points towards the Cape West Coast as an example where investors are at present grabbing property to lease because of the commercial 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 people hunting for higher density housing units due to employment opportunities coming from the IDZ. "
Gray says that the existing residential housing stock is also at capacity and there are possibilities 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 stockholders asserts Gray. "With interest rates remaining regularly low, mortgages are extraordinarily cheap and 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 lease, 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 need to be close to a good school is one more reason why folk 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 announces that there are is a huge demand for property to rent and that many of the tenants are in higher revenue bracket with stable employment.
"Landlords favour a tenant with stable employment and diverse social connections within a community, when it comes to property to rent Harcourts has found that there is never a problem with renters of middle income family homes. "
Harcourts SA offers a full property to hire service, from finding suitable rental properties for speculators and landlords to purchase , matching tenants with the right property to rent, and a full rental service whereby the investors pass over the daily administration issues to Harcourts.
Gray points towards the Cape West Coast as an example where investors are at present grabbing property to lease because of the commercial 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 people hunting for higher density housing units due to employment opportunities coming from the IDZ. "
Gray says that the existing residential housing stock is also at capacity and there are possibilities 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 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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