There is a major surge in investment in buy-to-let properties across South Africa, with the Western Cape leading the pack. "We're seeing a 15 year high in national investment applications, which rose to 11.8 percent of all applications by the last quarter of 2023," says Renier Kriek, Managing Director at Sentinel Homes, who bought his first investment property at 19 and has been investing in residential property ever since. Usually, this figure is around 5 percent. Kriek is quoting recent ooba Home Loans market data which also puts investment applications in the Western Cape at a whopping 28.2 percent of total applications. "The housing demand in the province is enormous and property investors are obviously taking note," says Kriek. Investors, not home buyers Home buyers are hesitant to buy right now due to uncertainty around the upcoming election, as well as the rising cost of living caused by inflation and high interest rates. This could mean current data may be skewed by their lower participation, making investment applications appear greater as a percentage. Even so, it also indicates that property investors remain confident, active in the market, and resilient regardless of economic pressures. Property investment may also be seen as more secure in the current uncertain political climate. Why is property investment vibrant? One reason is the ongoing trend of semigration, with South Africans flocking to areas offering better infrastructure and service delivery. This is especially true of the Western Cape where new property development lags the influx of semigrants. Many coming to the province now rent while searching for a new home or while theirs is being built. Another reason is the return of tourists to Cape Town, still one of the top holiday destinations in the world. Investors are already snapping up prime properties they can rent out as short-term leases and holiday accommodations. The increased demand for rentals and improving performance in rental properties, including lower vacancies and tenant defaults, is driving the wave of buy-to-let investment applications. Tips for investors So, if people are serious about investment buying, does Sentinel Homes have any tips for them? "Indeed, we do," says Kriek.
New and experienced investors alike can benefit from Krieks advice. ENDS MEDIA CONTACT: Idele Prinsloo, [email protected], 082 573 9219, www.atthatpoint.co.za For more information on Sentinel Homes please visit: Website: www.sentinelhomes.co.za Facebook: Sentinel Home
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