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Lack of service capacity boosts Brits rentals

 



There are simply no municipal services such as water and electricity supply available for any new property developments in Brits, and this is putting upward pressure on rentals in the North West town, and boosting sales of cheaper properties.



“Due to increased mining activity around Brits, we have been experiencing high demand for homes to let here for some time,” says Amelda Scheepers, co-owner of the local RealNet franchise.



“And now there is a marked shortage, with no relief in sight because no new stock of flats or townhouses is able to be built.”



As a result, she says, tenants in Brits can now expect to pay at least R4000pm for a two-bedroom flat and about R6000pm for a three-bedroom sectional title townhouse, so it is no surprise really that many people are deciding to buy their own homes rather than renting.



“These potential buyers are especially targeting three-bedroom family homes at around the R800 000-mark, which puts their monthly bond repayment at some R6500 if they pay a 10% deposit.



“What is more, an increasing number of applicants are able to qualify for home loans, because they have taken the trouble to pay down their debts and clean up their credit records over the past couple of years. We also pre-qualify all our buyers and are even getting a few 100% bonds now.”



In addition, Scheepers says, her agency is handling a rising number of buy-to-let transactions, as investors see the potential in the town’s tight rental market.



“But those who want to get in on the action will need to move fast, because the stock of cheaper flats and houses suitable for letting is also becoming depleted and prices can be expected to start rising soon.”



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