The buy-to-let market on the Bluff in Durban has gathered momentum in recent months as investors take advantage of strong rental demand.
So says Wondera Erasmus, principal of leading local agency Homenet Brighton Beach, who notes that strict bank lending protocols, while putting a dampener on sales, have given rise to a strong rental market.
"And buy-to-let investors have picked up on this trend and are now purchasing flats to lease out, at prices starting from R500 000.
Typically, these flats are fairly basic, with one or two bedrooms, an open-plan kitchen/ living area and a bathroom, and the rent charged ranges between R3500 and R6000 a month and more, she says.
Also driving rental demand in the area is the presence of an Engen refinery and a number of construction companies working on 2010 initiatives. Both the refinery and the companies require accommodation for a number of their contract workers and senior staff.
"The construction companies typically rent generously proportioned homes with four or five bedrooms for its staff, at between R10 000 and R20 000 a month. What is more, the B&B market is also thriving thanks to the large number of contract workers and retail staff that fly in and out of Durban on a regular basis."
According to Erasmus, visitors to Durban and residents alike prefer to stay on the Bluff as it offers all the amenities and facilities necessary without all the congestion and noise of Durban. "The Bluff offers a pleasant way of life and people gravitate towards that. The Gateway shopping centre is just around the corner as is the airport, the beach and a number of good schools and hospitals.
"The area is also popular with overseas buyers who usually splurge on the expensive beachfront homes and spend six months at a time in residence. Properties on the beachfront typically cost around R3m, while ordinary freehold properties in the area sell from R750 000 and two-bedroom townhouses from R700 000."
ISSUED BY HOMENET