TIPS FOR BUY-TO-LET SUCCESS
Buy the type of property that is most “lettable”
Two-bedroom houses and flats are ever popular and
appeal to the widest range of potential tenants,
especially those who are finding it tough to get on to
the property ladder. Avoid large family homes, which
appeal to fewer potential tenants.
Don’t restrict yourself to your own immediate
area
Don’t restrict yourself to your own immediate area but
research others nearby, where the rental yields may be
markedly better.
Make sure the area has a healthy market for
tenants
Convenience is a useful factor. Being within walking
distance of shops, railway stations, the town centre and
so on will ensure that your property is high on the list
of desirable places to live for tenants.
Using a mortgage makes your money work
harder
based on the total value of the property and
not on the amount paid out to date. The gain
on the investment is made on money that is,
in reality, not yet his. By way of contrast stock
exchange shares and money market products
usually require full payment upfront – and are
more subject to fluctuations.
Buy-to-let properties almost always give
satisfactory capital growth in the long term
because housing, being a primary human need,
is always in demand and there are usually stock
shortages. This is an asset class, which, although
affected by economic swings, tends to be more
resilient than others. Over any 10-year period
in South Africa’s history, a minimum growth of
at least 45% has been achieved.
Over a long term period, buy-to-let is by far
one of the safest asset classes and is capable of
giving the investor excellent returns.
www.reimag.co.za
Whether to go interest-only or repayment is a personal
decision, but a rental income high enough to cover a
repayment mortgage is a good indicator that you are
getting things right. Take out a fixed rate if you are
uncomfortable about the chances of interest rates
rising, although you will pay a premium.
JUST PROPERTY Let’s open doors
Issued by Reale Activation
Contact Drew Hook
Tel: +27 21 761 38 48
On behalf of Just Property
Contact Jean Botha
Tel +27 41581 6471
Visit www.just.property
About Just Property
Just Propertyis a professional services company offering
a full spectrum of property services in residential and
commercial sales, letting and rental management, new
developments and investor education across the country
since 2001. With over 102 franchise offices in 3 countries,
we draw on our extensive local and global industry
experience to assist you to purchase and manage property
in South Africa.
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