MASTER INVESTOR
The Finance Linked Individual Subsidy Programme ( FLISP ) provides an opportunity for first-time buyers in the ' affordable or gap ' market , i . e . those who earn between R3 501 and R22 000 per month , to take advantage of these market conditions .
" South Africa appeals as an extended-stay destination to those who can work remotely ."
“ Individuals in these salary bands generally find it hard to qualify for housing finance ; their income is regarded as low for a home loan ( mortgage or pension / provident backed loan ), but too high to qualify for the government ' free-house ' subsidy scheme . It ’ s the first step in building a property portfolio .
A development that meets this criteria : Pioneer Valley
What Local Demands can Property Investors Tap into ?
Ongoing Demand for Student Accommodation & “ Zoom Towns ” According to Statistics South Africa ’ s 2020 mid-year population projections , about 28,6 % of the population is aged younger than 15 years . That is almost ⅓ of our population ( more than 17 million people ) who still need to finish school and , for those who are able , to complete their tertiary education .
8 JULY 2021 SA Real Estate Investor Magazine
The demand for student housing is already staggering and predictions place the current shortfall at more than 500 000 beds ; this is predicted to grow to 781000 beds by 2025 . If you live near a university or other tertiary institution / s , look at opportunities to meet this need .
A development that meets this criteria : The Edge
The “ semigration ” trend offers another opportunity . Many South Africans have moved temporarily / permanently from cities like Johannesburg in order to remote-work from smaller towns . Coastal towns are seeing good growth rates in property prices and the shortage of cheaper rental properties in many of them offers interesting investment possibilities .
A Rental Market Under Pressure In its Vacancy Report 2021 Q2 , TPN reports that “ Nationally , vacancy rates have stabilised at 13.15 %, a demand rating at 53.01 confirms that tenants are still in the market but in reduced numbers , and a supply rating of 68.76 means that landlords are competing for this limited tenant attention ”.
Payprop , in its Q1 2021 Rental Index , reports that “ since January 2020 , the repo rate has been lowered by 3 percentage points to its lowest level in decades , prompting many tenants to buy their first homes . This exodus of more creditworthy tenants from the