Since the lockdown there’s obviously been many issues around rentals and tenants not being able to afford rent due to job losses. But, there’s also been an interest effect on the price of property and rental rates.
Aden gives the team a hypothetical example of rent vs buying and with the lower interest rate how some could in essence buy property instead of renting.
Call out for listeners who’ve found rental bargains or have bought property due to the above mentioned.
Some interesting info on this topic:
- A total of 3.7 million households live in rented accommodations, with 3 million households renting formal housing including houses, flats, apartments, clusters, townhouses or semi-detached dwellings, a backyard house, flat or room, granny flat or servant’s quarters.
- The credit bureau said that the Western Cape currently has an acceptable vacancy rate of 9% while the more affordable Northern Suburbs reflect a low 5.1% vacancy rate. However, the luxury end of the market, represented by the Atlantic Seaboard, has a 25% vacancy rate.
- In fact a few days ago, iol.co.za reported that one in four properties – a direct result of the coronavirus pandemic that has kept overseas visitors and investors away.
- On the commercial property side: the FNB Commercial Property Broker Survey surveys a sample of commercial property brokers in the six metros. The survey was done in November 2020, before the second wave of Covid-19 infections. Forty-four percent of them perceived companies to be re-evaluating their office space needs, and in many instances downscaling, thus a key factor influencing their near-term expectations of market activity in this segment. Only 2 percent of brokers pointed to stock constraints, while a greater 12percent pointed to an oversupply of stock.