Cape Town’s property market is South Africa’s highest growth region. With high demand areas placed all along the city. There are a plethora of buy to rent opportunities if you partner with a rental specialist that knows their market well.
There are a few fundamental guidelines you need to follow when you’re thinking of investing in a buy to let opportunity.
I cannot stress enough how important it is to identify and choose a rental agent with a footprint and track record in the region you wish to buy. Their understanding of the local market and ability to identify trends will be influential when you make your decision.
Secondly, educate yourself on the market. Browse digital property portals to gauge the activity in the area. This crucial insight might open up new areas you hadn’t previously considered as well as lower your expectations of a suburb you thought was more active. In addition read articles online about the property market and see what experts are saying. They do know the market much better than you do.
Then, it is important to lay out a budget. Engage with your agent and bond originator on all the costs involved and compare that to your financial status. There is a fine line that investment properties aimed at letting are gauged against and you don’t want to get yourself into a situation where if you have no tenants, you cannot cover the bond costs. Ensure all the small little added costs are calculated too, as you will usually be responsible for covering those.
Lastly, shop around thoroughly. Often buyers of investment properties are so excited they miss small things like poor maintenance on the home, location to amenities and schools as well as demographic targets. If your investment property is nearby a school and is not equipped for family living you largely reduce the pool of prospective tenants.
Take all of these points into consideration and consult with experts and you’ll be far more at ease and in control when you finally decide to invest.
Harcourts Dunn Rentals