Semigration to the North Coast fuelling rental demand, says Seeff
Category Rentals
The fact that Ballito's permanent population has more than doubled from 12 000 to 30 000 in just over a decade, has created a big rental demand in this coastal town.
Mark Johnson, Seeff's Licensee for the North Coast, says even though the rental market here is buoyant, stock is a major issue - especially with regard to property in gated communities priced from R8 000 to R18 000 per month.
"We had quite a bit of new stock at the end of 2018 due to new developments, but properties that were priced right for the market were snatched up quickly".
Johnson continues that the North Coast has been earmarked for massive residential, commercial and resort development estimated at around R76 billion that will bring even more people to the area.
"While we expect more stock to come onto the market in the medium term, rental demand is predicted to increase even further as a result of the growth in the area."
Johnson says families are semigrating to Ballito for the lifestyle by the dozens - many of whom are still working in other provinces and need to commute to work weekly. Regular commuting is made possible by the King Shaka International Airport that is around a 20 minute drive from Ballito.
"Many of them choose to rent while deciding where to settle".
Johnson says investor buyers who purchase investment properties in the lower end of the market enjoy better return on investment than buyers who invest in the top end.
"We are a growing market and this makes it a fairly safe purchase for an investor. There is also good capital growth to be had when investors buy smart - regardless of the price bracket."
Johnson concludes that like in many other areas in the country, tenants in Ballito are prepared to pay a premium to live in property within gated communities - sometimes up to between 25% and 40%.
"If you would like to let your investment property, we recommend a managed lease agreement by a reputable company.
While there would be little cost difference to the landlord, professional agencies are experts on all the challenges associated with rental management."
Picture : This three bedroom home in Palm Lakes estate is to let for R18 000 per month.
Author: Tanya Van Buuren
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