Demand for property to rent is experiencing a high, according to Harcourts S. A. CEO Richard Gray, with entry level property prices of R400,000 being beyond reach of many young execs on the Western Cape.
With middle class buyers paying from R750 000 to R1.6m for a family home, demand for property to rent is receiving attention from stockholders claims Gray. “With interest rates remaining regularly low, mortgages are awfully cheap and who can afford a family home in a good area are finding that they can pay their investment off in 10 to 15 years on a property to lease, in opposition to 20 to 30 years. “
Gray comments that price is an enormous issue, although not the only issue, “Many families with good incomes are in the market for property to lease for many reasons, work mobility is a good reason and also the desire to be close to a good school is another reason why people look for property to rent.”
According to Gray, a normal family could have their own rental properties, and elect to lease rather than own their own family home. Irrespective of the reason that folks are having a look at property to hire, Gray announces that there are is a huge demand for property to rent and that many of the tenants are in higher income bracket with stable employment.
“Landlords favour a tenant with stable employment and various social connections within a community, when talking of property to lease Harcourts has found that there is never an issue with tenants of middle income family property. “
Harcourts S. A. offers a full property to lease service, from finding acceptable rental properties for speculators and landlords to purchase , matching tenants with the right property to lease, and a full rental service whereby the stockholders relinquish the day to day administration issues to Harcourts.
Gray points towards the Cape West Coast as an example where investors are at present buying up property to lease because of the economic development area (IDZ) at Saldanha being given the green light, “Over the next 20 years it is predicted that there will be an influx of young qualified people searching for higher density housing units due to employment opportunities stemming from the IDZ. “
Gray claims the existing residential housing stock is also at capacity and there are chances for investors who are providing property to rent in the way of family houses in the proximity of the IDZ,”In the short term quality properties across the sector will experience demand pressure, which is going to have an impact on price,” concludes Gray.
Harcourts South Africa offer property for sale, property to rent,homes for sale, commercial leasing, rural property sales, lifestyle real estate and business for sale right across South Africa.