Real Estate Investor Magazine South Africa March/April 2019 | Page 62

INVESTMENT INTELLIGENCE
DECIDING
BETWEEN RENTAL
INVESTMENT
MARKETS
For property investors, there are certain markets which
promise a higher probability of secure rental returns than
others. According to Regional Director and CEO of
RE/MAX of Southern Africa, Adrian Goslett, student
accommodation, lock-up-and-go sectional titles within
central business districts, and holiday markets are just a few
of these kinds of options savvy real estate investors have
available to them.
‘Each of these markets have their own unique drawcards
and corresponding downsides. Ultimately, it is up to the
investor to decide upon which of these markets is best
suited for their risk appetite,’ Goslett explains.
To help investors decide which market is more appealing
to their purchasing criteria, Goslett explains the various
pros and cons of each market: for those who would like to tap into the foreign market.
Properties located in sought-after tourist spots are less
affected by the volatility of the Rand and offer the potential
for higher returns than any other market. However, as with
any investment, the higher the return, the higher the risk.
During off-peak seasons, properties in these markets have a
much higher potential to stand vacant for periods of time.’
‘Best suited for those who are flexible regarding the lease
term, holiday markets offer great investment potential ‘There will always be a market for working professionals
who are looking for easy access to the CBD. Investors will
Holiday Markets
60
FEBRUARY/MARCH 2019 SA Real Estate Investor Magazine
Student Markets
‘Demand in these areas will always be high, but there is
also a high turnover rate in terms of tenants. What’s more,
it is advisable to hire somebody to manage the property
on an investor’s behalf to ensure that the property is well-
maintained, as the risk for damage and neglect increases
when leasing to students.’
Business District Markets