ESTATE of affairs

Sungula Nkabinde shares property investment tips for the current market

- Sungula Nkabinde

There’s something very attractive about investing in property. For one, property is a tangible asset that can provide a reliable and steady income stream. And if you invest wisely, property can appreciate in value over time, providing an excellent return on investment. Despite the difficult economic landscape, Harcourts South

Africa CEO Richard Gray believes the buy-to-let rentals market is set for a great year, with South Africa at the top of its interest rate cycle.

“Rentals took a big knock during the low-interest rate cycle as many tenants moved to become home owners. This has definitely swung back to a more normal position and saw our property management numbers increase again throughout 2022,” says Gray.

“We expect the rental sector to continue growing this year as investors buy more properties. The ‘middle market’ is strong and resilient, but I am concerned the top-end market will continue to be slow and impacted by political and economic uncertainty. The lower-priced end of the market is very sensitive to the poor economic conditions and will probably only improve once we see better economic growth and job creation.”

While an element of luck is involved when it comes to finding a great tenant, for example, successful property investment is about doing your due diligence.

That means finding out what properties in the area have sold for – not what the asking prices are because those can make sellers gullible to believing inflated valuations of their property. Similarly, buyers should research the property developers they are considering buying from and get references for the estate agents in that area.