Real Estate Investor Magazine South Africa February 2016 | Page 37

historically held their value well, as opposed to buying
a larger home in an area where home values may be
less stable.”
“Fortunately, there are a myriad property purchase
opportunities in Gauteng and there are large numbers
of excellent apartments and sectional title homes
available for the first time buyer. We also note that
many of today’s estates and upmarket mixed-use
developments are including a sectional title component
which makes them more accessible to the first-time
buyer or younger professional.”

The buy to rent investment

“People often decide to keep their original property as
an investment when they move on to a bigger, family
home. This can provide them not only with capital
growth over time, but also good rental returns, which
may assist them to settle their bond. Some investors go
on to purchase a number of properties from which they
derive a regular income.”

The rental option

“As noted above, the rental option remains an
alternative to those who are not able to afford to
purchase a home. It should be noted that, in the short
term at least, renting a home is cheaper than buying, as
the renter does not have to invest in deposits, transfer
duties, bond repayments and other costs. The owner is
also usually responsible for rates and taxes, insuring the
property, as well as maintenance and repairs.”
“Others appreciate the greater flexibility that renting
may infer; it being easier to give notice on a lease rather
than sell a home in order to relocate. This makes the
rental option more appealing to contract workers who
find they often need to relocate or those who wish to
defer making a major financial commitment at their
particular stage in life.
“Renting may also be the preferred option for people
who have relocated to a new city or to expats who are
ret \