select
|

Great returns on offer in Mbombela’s hot rental market

Ongoing commercial and industrial development in the bustling city of Mbombela has created a shortage of quality homes for sale and to let – and excellent opportunities for residential property investors.
 
“Investors with cash can currently make between 9 and 11 percent annual return on their properties here,” says Juan Botha, principal of the local RealNet franchise, “which is certainly better than they would get on cash in the bank. What is more, strict bank lending criteria are keeping property prices down, so investors can obtain excellent value for money now.”
 
Residential rentals in the city, he says, are running at between R6000 and R9000 a month for three-bedroom family homes, and between R8000 and R12 000 a month for upmarket houses.
 
“There is also huge demand for lock-up-and-go homes in secure complexes. Two-bedroom townhouses are letting for around R5000 a month and three-bedroom units for up to R7000 a month, while full-title clusters can rent for up to R11 000 or R12 000 a month.”
 
Most of the demand, says Botha, is coming from employees of the new manufacturing, retail and business enterprises in the growing city, where many national companies are now establishing regional offices.
 
“The Kruger Mpumalanga International airport just outside Mbombela and the city’s strategic location on the route to Maputo means it is increasingly being seen as a gateway to Africa and the rest of the world, and this is encouraging the establishment of many new businesses, too.
 
“As a result, the residential market is very active and energetic, and sales are going well now in the lower price range of R400 000 to R700 000. We are also seeing rising demand at R1,5m and above.
 
“But many in the middle-income group are still struggling under big debt burdens and there is a reluctance to borrow in this sector, as well as the reluctance by the banks to lend, and this is what is really driving our rental market.”
 
And, he says, with experts predicting that interest rates must start to rise again soon, the situation is expected to remain positive for investors for quite some time.
 
ISSUED BY REALNET


  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 23 Nov 2017
      Reserve Bank Governor, Lesetja Kganyago, said that the Monetary Policy Committee had once again decided to let the interest rates remain unchanged with the repo rate at 6.75%, and the prime lending rate at 10.25%.
    • 23 Nov 2017
      As the holiday season approaches, most of us are counting the days until that year-end bonus hits our account. There’s nothing quite like a little bank balance booster to get us in the holiday spirit.
    • 23 Nov 2017
      The Adelphi Centre (now entitled “ARTEM") in Sea Point, Cape Town, is being extensively renovated, and once complete will offer an ultra-luxurious galleria style shopping centre unlike any other seen on the Atlantic Seaboard or in Cape Town.
    • 23 Nov 2017
      If you are looking to sell your home in today’s real estate market, there are certain things that you need to include both inside and outside your house. Today’s generation of home buyers is looking toward a more eco-friendly, energy and water conscious home, and if your house stands out then you are more likely to be able to sell it.
    • 22 Nov 2017
      Most people know of the Community Schemes Ombud Service (CSOS) and that levies must to paid to fund its operations. In this article the experts at Paddocks will address some of the issues that are causing confusion.
    • 22 Nov 2017
      While sales have noticeably slowed in most sectors in most Cape town suburbs, the security estate sector in Constantiaberg has bucked the trend by remaining buoyant, with sales by August this year already surpassing total sales in 2016.
    • 22 Nov 2017
      The end of the year is fast approaching, and so are all the travellers, tourists and holidaymakers. For those who live near or own a property in a holiday-hotspot, the festive season also brings with it an abundance of short-term rental opportunities. Its a great way for property owners to make a few extra rand for their own holidays or to put towards their savings.
    • 21 Nov 2017
      The buying process is over, and the moving truck has delivered your household goods to your new property. Now it’s time to unpack and turn your new house into a home.
        
    X
    Subscribe to the MyProperty Newsletter

    Name  
    Last Name  
    Email Address  
    Email Frequency
    select
    X
    Share this Page

       
    For Sale Property
    Rental Property
    More Options
    About
    Connect with us
    FEEDBACK