40 REI MAGAZINE JULY
Short-Term Rentals ( Airbnb ) Short-term rentals , particularly through platforms like Airbnb , present an exciting and high yielding income stream . Most hosts manage just one property , often starting with a garden cottage or a previous long-term rental property to enhance their returns .
Airbnb reports that South Africa has around 65,000 short-term rental listings , with an average occupancy of 55 % and an annual income of R131,000 . These rentals are predominantly leisure-oriented , located in the Western Cape and KZN coastal regions , though a significant number also exists cater to business travelers in South Africa ’ s CBDs .
Student Accommodation The demand for student accommodation is substantial , with a shortfall of over 500,000 beds annually . Rates for student housing range from
R2,000 per month for shared rooms to R7,000 for private rooms .
Investors in this sector focus on providing reliable WiFi , good security , communal spaces , and convenient transport access , meeting the needs of tertiary education students .
Flipping properties ‘ Flipping properties ’ involves buying , renovating , and selling homes for profit . Success in this strategy hinges on a thorough understanding of renovation costs , efficient project management , and timely market re-entry .
While flipping can yield significant returns , it carries risks such as unexpected expenses and delays that can erode profits . This strategy is not for the faint-hearted but offers substantial rewards for those who master it .
The South African property market , with its unique challenges and diverse opportunities , is a fertile ground for astute investors .