South Africans who cannot afford to buy their dream home are buying entry level house (+/- ZAR 1 mill) and are renting them out instead.
It translates to people who may not be able to afford to buy in the areas where they live and work, but are determined to become property owners anyway. By seeking out less expensive areas with a promising future and buying homes there they may then let to others.”
In other words, they are often becoming landlords themselves while remaining tenants – which is a new take on the buy-to-let model where one generally finds that the investors own their primary residences.”
Rentvestment is generally taking place in bigger urban centres and especially in Cape Town and Johannesburg, where these investors will often rent a high-end property in an upmarket area or estate to live in, and then buy up flats and townhouses in less expensive areas where rental demand is high and the achievable rentals will almost cover their bond repayments and other monthly costs such as levies as well as rates and taxes.
In Hoedspruit we are seeing rentvestors who need to live in the city for work reasons choosing to rent smaller, convenient apartments there and buy bigger properties here where they go for weekends or holidays and may eventually live permanently.
Another trend is to check out niche markets like student accommodation, or storage units, or even Airbnb units.
It is enabling increasing numbers of resourceful South Africans to have the best of both worlds, by living where they choose while investing for their financial future elsewhere, and is expected to play an increasingly important role in the market, especially among first-time buyers.
A new development in the Hoedspruit Wildlife Estate has seen numerous rentvestor purchases with some buyers making more than 1 purchase. To view the houses for sale in this development please follow the link provided.
The Village development within the Hoedspruit Wildlife Estate
Alternatively speak to one of our sales agents directly on 015 793 0793
Mo - Fridays 08:30am - 16:30pm
Sat 09:00am - 12:00pm
