Joburg CBD flat rentals surge

05 Aug 2010

The Johannesburg inner city appears to be the only market in South Africa still offering buy-to-let investors a growing income stream.

That’s true for bachelor flats in particular, with latest figures from property economists Rode & Associates showing that average rentals for bachelor units in the Johannesburg inner city rose a whopping 34, 6% in the year to second quarter 2010.






That brought the average rental for a standard bachelor unit in the Johannesburg inner city to R2,675/month. That means it now costs more to rent a flat in Hillbrow than in Randburg. According to Rode & Associates tenants are currently paying an average R2,650/month to rent a bachelor flat in Randburg’s Ferndale and Fontainebleau. Click to read more

RentSure - Great News

Rentsure is one of the greatest companies to hit the CBD. We are in the process of working with Rentsure. One of there requirements is that your tenant signs a debit order. We are still sorting that issue out with our bank. Once our banking items are fixed we will be partnering with them and offering this insurance to our landlords.

New life in to Braamfontein

Braamfontein has been a part of Johannesburg since 1886, the year the city was established. Back then, Braamfontein was a farm where people lived and worked, and there was a strong sense of community.
Situated north of the city centre, over time the area developed into an important commercial and economic node of Johannesburg, housing a vibrant business district, the seat of local government and various educational institutions and business corporations.
Then, between the late 1980s and early 2000s, the area went through a period of urban decay causing an exodus of institutions and businesses to more affluent areas. It became degraded and run down, but was fortunate in that its vacancy rates remained some of the lowest in the inner city, even during the worst of these times.
In 2002, the Johannesburg Development Agency (JDA) and the City council embarked on a R13-million regeneration programme for the area, realising how important the location and function of Braamfontein was to the local economy.
Since then, the JDA has spent more than R55-million on the precinct, renewing the area as a centre of business, entertainment and education.
There has also been significant private sector investment in the precinct, with almost R4-billion spent by investors and developers over the last seven years, resulting in rental rates and land values increasing, and vacancy rates dropping below 10 percent.
Braamfontein remains the fourth-largest node for office space in the city of Johannesburg and is home to a number of South African-based multinational corporations as well as one of the country’s premier educational institutions, the University of the Witwatersrand.
It is on a par with other prime office nodes such as Sandton and Melrose Arch. The area, of more than 428 000m2, is now a mixed-use node consisting not only of A- and B-grade office space, but also with a strong residential component, offering both loft and executive-style apartments and budget accommodation.
Today, the success of this regeneration project can be seen in the beautiful tree-lined streetscapes, public art, and safe, well-lit open spaces. The area has become a vibrant social space again, with coffee shops and small restaurants offering daytime entertainment; and at night the precinct is quiet, safe and clean, the result of its active city improvement district, which ensures quality urban management, safety and marketing remain in place.

CBD Buy-to-let

A question from one of our landlords!


"Hey Guys, I want to build a portfolio of buy-to-lets, how do I know what area is best to invest in to achieve my goal?

"Our reply:Great question, the first thing you have to understand is that before investing in any area, you HAVE to do your research!!!
Its simple: We've found that the most important factors in researching an area can be answered if youask yourself these 3 questions:
1- What type of tenant am I looking for?
2- What type of property would my tenantideally like to live in?
3- In what area will I find that type ofproperty?

All these 3 factors (Tenant, Property& Area)must be looked at together to assess whether the area is good for investing in Buy-To-Let's. When deciding what type of person you are looking to rent to - create a profile for them:

For example, ask yourself if they are young professionals, students, or if you want to rent to families. Once you've decided WHO you'll be renting to, look at the needs and wants of that type of person. If you decide to rent to students, they'll want to be close to their university... The best way to find out about this is actually chatting to people who represent your 'target tenant'. Find out what features your tenant values most and if they are prepared to pay extra for any of them. At this point, you should have a fairly clear idea of WHAT you'll be renting and it'll be time to look at WHERE you'll find the type of property you're looking for. Go back to the profile you've made for yout 'target tenant'and find out which area supplies all the attributes you're looking for. Consider things like the transport connections in the area, the local amenities, how are the schools in the area you're looking at, what is the quality of the local environment, how are the employment opportunities and how relevant are all these factors to your target tenant. Remember: these 3 attributes are inter-related and must be looked at together when assessing whether there is rental demand in aparticular location. Now, the next question you need to answer is:
Can you make any money or does Buy-To-Let financially stack-up in that area?

The CBD is Fast becoming a hot spot for Buy-To-Let investors