“Firstly, an investor is by assumption an absent owner/landlord and not an owner occupier. There is a difference between a homeowner with a freestanding home who decides to rent out their home, and an investor who, from the outset, makes purely a financial investment and has no emotional attachment to their purchase.
As to the size or configuration of properties to invest in, I recommend either a two-bedroom apartment of 50sqm or more with a minimum of one parking bay and/or a three-bedroom freestanding home of around 120sqm with a double garage of about 36sqm, as these two offerings are never vacant. If you are a cash buyer and invest in the kind of units outlined above and have a longer-term outlook, you will have a monthly return and undoubtedly a good capital return.
The further away from the beach, the lower the purchase price and the more affordable the rent. Areas that stand out as providing a good balance between the two are Sunningdale, Royal Ascot and Century City. These are newer areas and in many cases offer a secure living environment. Added to this, due to sewerage infrastructure requirements that need to be addressed, no new development applications on the Western Seaboard will receive approval for construction prior to 2026. All this means that we are heading for an inventory shortage, making this the right time to invest.Many investors who live in close proximity to their investment place their own tenants and manage their own leases.
Modern technology enables us to create photograph folders for each home, which can be shared with the landlord and the tenant, and which is a good reference when the tenant moves out. Landlords should also not renew a lease without re-qualifying a tenant at a financial level. If there is one thing Covid and the current financial climate clearly demonstrates is that an individual’s income can change overnight through no fault of the individual, but puts into question their ability to service their rental commitment.
Business Business Latest News, Business Business Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: BusinessTechSA - 🏆 24. / 61 Read more »
Source: BusinessTechSA - 🏆 24. / 61 Read more »