Buy-to-let investors target Brits property

In contrast to many areas in the country where the buy-to-let market is in the doldrums, this market is flourishing in the Northwest town of Brits.
Good returns on rental property thanks to strong demand among mine contractors are luring local cash investors, says Amelda Smit of the local RealNet office.
 “We started noticing in the last quarter of 2009 that local residents were cashing in other investments and using the proceeds to buy investment property. They regard rental income as a better return on their investment and the trend shows no sign of levelling off thanks to continued strong demand in the rental sector.”
Rental apartments are sought-after by the many contractors working on six to 12-month contracts at the mines surrounding Brits. Bachelor units at monthly rentals of between R1500 and R2000 are in high demand, Smit says, but stock is very scarce at the moment. Two-bedroom apartments are rented out at around R3000 per month and investors regard this as a healthy return on a purchase price of around R400 000.
In the residential market, she says, three-bedroom family homes are also in better demand than last year and buyers are active at around the R800 000 mark.
The demand for game farms in the area of between 50 and 500ha has also increased dramatically since the end of last year. Smit says buyers from Johannesburg and Pretoria are in the market for weekend retreats but that little stock is available in their target range of between R2m and R8m.
“Unfortunately farms that do come on to the market are usually priced at between R15m and R20m, more than double the top price that retreat buyers are willing to pay,” she says.
Issued by RealNet

  Comment on this Article

  Please login to post comments

Post to my facebook wall
Characters remaining

    Latest Property News
    • 17 Nov 2017
      FWJK has announced the launch of its latest residential brand, the Lil’ Apple, which will be launched simultaneously in two developments in Cape Town and Umhlanga totaling 600 apartments. The Lil’ Apple is set to be a brand of FWJK’s New York style apartments which will be rolled out nationally.
    • 17 Nov 2017
      It’s been a tumultuous year on many fronts, with socio-political uncertainty setting the tone for much of South Africa’s economic activity yet despite this and seemingly counter-intuitively, the residential property market has held up well.
    • 17 Nov 2017
      The EAAB (the Estate Agency Affairs Board) recently claimed that around 50,000 illegal estate agents could currently be operating illegally.
    • 16 Nov 2017
      Penthouses are synonymous with New York – characterised by high-rise living that is decidedly luxurious and spacious. While exclusivity comes at a price, you can still create a “penthouse” look and feel in your existing apartment or even the upstairs bedroom of a double storey house with some clever design changes and styling touches.
    • 16 Nov 2017
      The area has long been popular with kite surfers and, with escalating property prices in Cape Town itself, is increasingly in demand with home owners who work in town, but are looking to invest in more affordable properties.
    • 16 Nov 2017
      Cape Town’s popularity as a world-class tourist destination has resulted in a spike in the number of homes available for holiday lets and fuelled investor demand for sectional title units with short term rental potential.
    • 15 Nov 2017
      Sappi, one of South Africa’s oldest global companies and a leading global supplier of sustainable woodfibre products, has moved its global and regional headquarters to a new site on the corner of Oxford and 14th Avenue in Rosebank.
    • 15 Nov 2017
      There’s an old saying in real estate that you should seek to make a profit when you buy, not only when you sell – and a large part of succeeding at that endeavour is buying a home in an area with desirable features that will enhance the resale value of your property.
    Subscribe to the MyProperty Newsletter

    Last Name  
    Email Address  
    Email Frequency
    Share this Page

    For Sale Property
    Rental Property
    More Options
    Connect with us