Everything a buy-to-let investor needs to know in 2020
There can be no doubt that despite the economic challenges currently being faced in South Africa, the real estate market still offers opportunities for those looking to grow their wealth. Buying property with the intention of letting it out is still an extremely savvy option for investors in 2020 and beyond. So, with loads of properties available to rent in suburbs around South Africa, what will make your investment a hot property? The trick is to think like a prospective tenant and ensure that your property is better able to meet their needs than other properties in the same area in a similar price bracket.
With remote working and freelancing becoming a way of life for an ever-increasing number of South Africans, growth is bound to be seen in residential hubs from which it is easy to work. Access to data and high-speed internet is top of the priorities list for these individuals and families when they are in the market for a new home, so it's important to make savvy choices about the areas that you choose to invest in. Before you buy a property with the intention of renting it out, ensure that the property meets all requirements in terms of good cellphone signal and fibre availability.
Millennials - that's people born between 1981 and 1996 - have shown themselves to be Generation Rent, with many shying away from committing to an investment in real estate. When a typical millennial is looking for their next home, their attention will be drawn by features such as entertainment areas, sophisticated fittings and a lock-up-and-go lifestyle. By choosing a buy-to-let property that ticks these checkboxes, you can ensure that your investment is seen as hot property.
When choosing a property to invest in with the intention of letting it out, it's worth considering the type of factors which will appeal to a prospective tenant. Pet-friendliness, for example, can be a huge draw card, even if only one small pet is allowed. Secure parking is virtually non-negotiable, and your investment will be seen as particularly hot property if it's in a block of flats which offers visitors' parking as well as two parking bays for your unit.
With the interest rate currently being favourable, the time has never been better to undertake renovations and maintenance to investment properties — whether the property is a new investment or one that you have owned for some time. In a market where tenants can sometimes be spoilt for choice, apartments and houses that look sleek and modern are likely to be snapped up faster than those with dated features.
To furnish or not to furnish? That is one of the many questions that needs to be answered by a buy-to-let investor before advertising a home as available to rent. In the higher price brackets, in which tenants tend to be regularly travelling between cities — or living in one city and working in another — furnished properties tend to be seen as hot property. Similarly, if you plan to market your property to students, having it furnished or partially furnished will be to your advantage when looking for tenants. In average price brackets — in which families are looking for a place to call home — unfurnished tends to be preferred, because such families have furniture of their own.
There are many factors to consider when entering the buy-to-rent market. The team from Jawitz Properties are well informed about every corner of South Africa, so help is always at hand when it comes to the decisions about what to buy and where to buy it.
Contact the team and let us help you on the journey to becoming an owner of hot property.
Author: Jawitz Website