The recent decline in the Rand and uncertainty about the direction of South Africa’s economy has done very little damage to the market for residential properties in Johannesburg North – in fact, demand for properties to rent and buy in Africa’s financial hub is expected to increase in 2016.
We take a look with Jawitz Properties, South Africa’s premier real estate company, at the positive trend in Johannesburg North properties, which are becoming increasingly popular as buy-to-rent investments.
Johannesburg North Property – popular in any economy
Recent developments in the local economy have many experts predicting gloom and doom scenarios – yet the property market in Johannesburg tells a different story. Demand for residential property remains high in Johannesburg North, especially in the premier suburbs surrounding Sandton. Property investors appear to be shrugging off the current difficulties, with their eyes firmly on the future – this bodes well for the value of residential properties in the medium-to-long term.
It would seem that properties to rent in Johannesburg North is also being driven by short supply of housing stock in the city. Since the financial crisis of 2008, South African banks have tightened their lending requirements and as a result, fewer property developments were able to secure financing over the past seven years.
In Johannesburg, where an oversupply of property had become a cause for concern in the mid-2000s, the scales have tipped in the opposite direction. Despite it being a seller’s market, discerning buyers have shown their willingness to invest by purchasing homes and apartments at market price, with properties changing hands quickly and existing owners being hesitant to sell.
Several mega-developments are underway in the greater Johannesburg region, and although they may ease the supply of housing in years to come, premium property in Johannesburg North is likely to keep climbing in value if the current trend continues.
What makes Johannesburg North the ideal buy-to-rent location?
In previous years, many South Africans chose to invest in buy-to-rent properties in the country’s coastal region – particularly in the Western Cape. However, as property prices in Cape Town and the surrounding province have been driven ever-higher by foreign investment, there may be better value to be found in Johannesburg North.
The supply of reliable, long-term tenants is steady in Johannesburg, which still experiences a high level of urbanisation and is home to new residents from across South Africa and beyond our borders. In comparison to a coastal property which may experience periods of vacancy in the winter months, a permanent tenant in Johannesburg North provides a reliable monthly income which the property owner can use to cover the cost of a bond, municipal charges or other expenses related to the property.
The affordability of Johannesburg North rental properties and the ease of securing a tenant also makes them an ideal investment for people approaching retirement.
A diverse offering of locations and property types
Johannesburg North has an interesting history, with old and new suburbs overlapping each other on the main routes between Sandton, Rosebank, Randburg, Midrand and the historical CBD. Perhaps for this reason, the variety of properties in the north of Johannesburg is huge.
From ultra-modern Manhattan-style living in the Sandton CBD to stately homes in Houghton and Westcliff and the trendy chic atmosphere of Rosebank – to name just a few – property investors and their tenants can choose to live in a variety of unique areas.
Johannesburg North suburbs are known for having their own unique atmosphere and community spirit, with excellent schools, food and craft markets, and well-known shopping malls providing residents with ample places to relax and enjoy the city’s leisure activities.
Finding the ideal property in a seller’s market
Discerning buyers need not fear a seller’s market – they simply need to prepare for a different type of negotiating process. With demand high and fewer properties on the market, sellers are likely to hold firm on their asking prices, but there are always exceptions to the rule.
It may also make sense to purchase a property at market value, provided that your rental income will give you a good return on investment. With the current spike in property prices, the value of the property may also increase substantially over the next few years.
If you would like to invest in Johannesburg North property, let us introduce you to a new type of real estate experience. Passion, professionalism and personalised service are the foundation of the Jawitz Properties Promise – our commitment to finding you the best possible properties to rent in Johannesburg North.
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