Buying Property to Rent

With the property market being in the state it is at present, many people are opting to rent property rather than buying due to fluctuating interest rates and the increasing cost of living. With the current rental market so buoyant, if you can afford to invest, now is the perfect time to buy a property to rent out.

Property management firms are showing record tenancy levels for their rental properties, illustrating that there is a larger, more prosperous rental market out there. This means that investment properties and second homes are easier to let.

When seeking to invest in property with the view to renting it out you should make sure that you find the best area in which to buy the property. Speaking to letting agents and estate agents is a good way to get an idea about where you should be looking to find the best property for your budget.

Once you have spoken to letting agents and estate agents, you can get down to viewing some actual properties. This will give you a good indication of the current market as well as what kind of property you can expect for your budget. It is always recommended that you consult a financial advisor so that you can get an idea of the various mortgage options that are available.

When buying property to rent you also need to decide whether you are going to manage the property yourself or whether you are going to hire a letting agent to do this for you.

If you are investing in property to rent and decide to furnish it you should ensure you purchase the right kind of furniture and try and not allow your own personal taste to influence your decisions too much. Keep furnishings simple and neutral.

It is also imperative you make sure the tenants have the proper contract and that they understand what the entailments of the contract are.

Rent Out Instead of Selling

Often homeowners are too quick to head to the nearest estate agent and crush their original asking prices out of desperation to escape the financial burden or rising interest rates on their properties. However, sometimes it is actually best to rent out the property instead of selling.

This will alleviate some of the pressure from the bond repayments and also protect your investment. After all, it is well known that over the long-term property has proven to be a lucrative investment. Sitting tight and seeing out the current dip in the market by letting your home could prove to be far more beneficial than selling for a price that is significantly less than it should be.

Student Rentals are a Safe Investment

Property experts vow that there is indeed one recession-proof property investment in South Africa; this being student accommodation.

The overall need for rental units in close proximity to campuses is increasing as student numbers grow every year. A lot of universities are battling to build extra student residences which means that students are having to look to the private sector for accommodation.

In terms of securing the investment, you should bear in mind that the rent for student accommodation per square meter is higher than other residential units. It is also easier to find a student tenant as at the end of each academic year a lot of institutions compile free property listings which are distributed.

It is recommended that you should look to invest in property to rent in close proximity to the campus due to the fact that rates are higher in such areas.

Experts state that at present Johannesburg, Pretoria, and Witwatersrand are showing considerable growth with Potchefstoom also indicating prospects. When investing in property to rent to students, investors need to choose property that needs minor or no maintenance at all.

The summer holiday in December is an ideal time to do maintenance in and around the property as the majority of students will not be using the accommodation during this period.

Author Bio:
Leapfrog Property Group is an innovative, first-of-its-kind South African real estate business model, offering you the very best in investment property in South Africa.

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