Pretoria a hotspot for property investors

While there is certainly a growing demand for rental property all over the country, it is still very important for buy-to-let investors to do their homework before investing in this type of property.

This two bedroom, one bathroom flat for sale in Lynwood Manor in Pretoria includes one undercover parking bay. It is on the market for R875 000 - click here to view.

This is according to Samuel Seeff, Seeff’s Chairman, who says it is especially important that buy-to-let investors equip themselves with specific knowledge of the price bands of rental properties that are most in demand to eliminate the risk of ending up with a vacant property.

“Owning a buy-to-let property also demands time and effort, and factors like consistent maintenance needs to be taken into account. Properties that are in a good condition ensure better tenants at higher rentals, and also have a lower risk of being untenanted,” he says.

“Yields may not always perform according to plan as they fluctuate depending on the market. As an investor it is important to keep long-term goals in mind when times are tough.”

Seeff says buy-to-let investors should consult agents regarding monthly costs such as levies, rates and taxes and other special fees that may be payable in future.

“Unless you are in the rental business, you would be best advised to work with a credible rental agent before leaping into investing,” he says.

This two bedroom, one bathroom flat selling in Silverton in Pretoria is situated in a complex with a pool. It is on sale for R450 000 - click here to view.

The high rental demand across Pretoria and Centurion is fueling the buy-to-let market here.

Seeff says in Pretoria East there is a large demand for rental housing, coinciding with a shortage of suitable properties. While all types of properties are in demand, he says the lower priced properties have the more certain occupancy.

Prices of rental units in Pretoria East have crept up steadily, increasing the returns of investors, but at the same time putting renters under pressure.

Rentals in Pretoria East are fetching prices from R5 000 per month up to R66 000 per month for corporate rentals in guarded estates in suburbs like Waterkloof, Woodhill and Mooikloof.

While the Pretoria North market is currently an investor’s dream, the safest investment would be to buy where a monthly bond repayment is around R4 500, says Seeff. These properties can fetch a monthly rental of between R5 000 and R5 500.