{"id":716982,"date":"2023-09-09T17:00:00","date_gmt":"2023-09-09T15:00:00","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=716982"},"modified":"2023-09-09T17:04:46","modified_gmt":"2023-09-09T15:04:46","slug":"these-are-the-best-areas-for-buy-to-let-properties-in-south-africa","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/property\/716982\/these-are-the-best-areas-for-buy-to-let-properties-in-south-africa\/","title":{"rendered":"These are some of the best areas for buy-to-let property investments in South Africa"},"content":{"rendered":"\n

The rental market in South Africa is booming, and Seeff Property Group has named the best areas for investors looking to get a piece of the pie. <\/p>\n\n\n\n

ooba Home Loans said that buy-to-let investments now make up 10% of all bond applications, which also appear to be on the up. <\/p>\n\n\n\n

Although the Cape is seen as the centre of property investment in South Africa, Seeff said that there are several other urban areas where there is a growing influx of people looking for rental accommodation. <\/p>\n\n\n\n

John O\u2019Reilly, a rentals agent with Seeff Randburg, said that the Johannesburg area is proving to be incredibly popular, with multiple opportunities for buy-to-let investors with apartments, townhouses and free-standing homes highly desired by renters.<\/p>\n\n\n\n

With one and two-bedroom apartments in the R 800,000 to R1.5 million bracket and freestanding properties between the R1.2 million to R2.5 million range, the gross rental yield in the Randburg area is between 8% and 12%. <\/p>\n\n\n\n

Investors must, however, do their homework and factor in costs, including levies, rates, taxes and possible maintenance costs. Location is also a crucial factor, O\u2019Reilly said. <\/p>\n\n\n\n

Centurion is also proving to be a good rental market, with Tiaan Pretorius from Seeff Centurion saying that two and three-bedroomed units in sectional title complexes are in huge demand due to their low price offering of R750,000. <\/p>\n\n\n\n

Net yields in Centurion also range from 6% to 7% per annum for newly purchased properties, with some areas even breaking the 10% range. <\/p>\n\n\n\n

Net yields range from 6% to 7% per annum for newly purchased properties, with a few areas breaking the 10% range over a few years.<\/p>\n\n\n\n

Cape Town’s Century City is also seeing huge demand in its rental market, with there being a large percentage of apartments owned by rental investors. <\/p>\n\n\n\n

To maximize your rental return, it is important to explore properties within the price range of R1.85 million in Century City, where one can anticipate a monthly rental income of approximately R13,500.<\/p>\n\n\n\n

In terms of yield, investors can expect an average of around 5%, depending on the budget and if they are keen to keep expenses down. <\/p>\n\n\n\n

In KwaZulu-Natal, Richards Bay has also been noted as popular for buy-to-let investors, with sectional titles in the R700,000 to R1.2 million offering the best return. <\/p>\n\n\n\n

Catherine Chetty, rentals administrator for Seeff Richards Bay, said that customers who ensure that a rental covers more than 75% of their bond are getting a good return. <\/p>\n\n\n\n

According to Ms Chetty, investing in buy-to-let real estate allows you to generate monthly cash flow through rental payments made by tenants, and as real estate is a tangible asset, its value continues to increase.<\/p>\n\n\n\n

Thus, the longer you keep a property, the higher your return is likely to be.<\/p>\n\n\n\n

Below are some properties on the market in these hotspots: <\/p>\n\n\n\n

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