PROPERTY INVESTING
Of course , interest rates , while rising , are still low and , according to ABSA projections , will only reach pre-pandemic levels in 2023 or 2024 . If your calculations and research have identified a good buy-to-let proposition , now is a good time to purchase , says Stevens .
“ Beneath the national figures on tenant numbers lie significant variations from region to region , town to town , even street to street .”
The work-from-home and semigration trends continue , also driving demand for rental properties . In terms of semigration , FNB reports that “ relocation within SA has increased from 8 % in quarter 1 of 2020 to 13 % in quarter 2 of 2022 , in line with the changing housing preferences due to [ the work-from-home ] trend . Internal data shows that the semigration trend is largely driven by the relocation path from GP to the neighbouring North West province ( Hartbeespoort ) as well as coastal towns in the Western Cape ( Hermanus , Mosselbay , George , Cape Town ) and KZN ( mainly Ballito )”.
Chris Schoombee , investor relations manager at Just Property Zululand , says there is money to be made now from buy-tolet properties purchased at the right price , in an area that offers in-demand amenities . “ Demand drives the expected rental yield , so it is also important to understand ( a ) what local tenants are looking for and are willing and able to pay and ( b ) what other properties are in the market that you are competing against ,” he adds .
Stevens concurs . “ Prospective investors should consult with property practitioners who are
62 OCT 2022 SA Real Estate Investor Magazine