2020 South Africa Rental Market Prediction (It’s Booming)
“The housing market is crashing.”
“You won’t be able to find investors.”
“COVID-19 is going to make real estate investment impossible.”
These are all myths I heard this year about real estate investment. And I’m happy to tell you they’re just that- myths.
Despite popular belief- even predictions by so-called real estate “experts”- I have acquired new investors, facilitated several property transactions and made tens of thousands of rands since the coronavirus came to South Africa. Business has been booming.
And I’m not the only one!
TPN, South Africa’s leading credit bureau specialising in the property market, recently released a comprehensive rental analysis report for Gauteng. Their report found that:
37% of South Africans rent
The average purchase price of both sectional title and full title properties has been steadily increasing since 2009
67% of renters pay on time
The amount of full title properties on the market has remained steady at 40,000 since 2015
The amount of investment properties has stayed the same since 2009
The average ROI for sectional title property has remained at 11% since 2015
Rental prices for properties with less than 2 bedrooms has steadily increased since 2018 (which is why one-bedroom apartments are the best investment)
These statistics were further proven to be true when Michelle Dickens, Managing Director and Co-Founder of TPN, gave a presentation at our recent Virtual Real Estate Summit. If you missed the summit, you can still get lifetime access to the amazing content by purchasing an Advance or Premium pass here!
In her talk, Michelle showed how to use TPN’s online tenant monitoring system and property analytics portal to show that:
For the entire year of 2020, renters have scored an A, B, or C rating on their system, meaning they are quality renters in good standing paying on time
During lockdown, investors were able to take on more high quality tenants
Properties in Gauteng have a 2% higher gross yield than those in the Western Cape
So what does this tell us?
It tells us that the real estate industry is consistent, resilient and a fantastic industry to invest in.
The major rental market predictions for South Africa in 2020 include:
The market will remain a buyer’s market
Millennials are interested in buy-to-let properties
House price inflation will remain below 1%
Demand for sectional title living will increase
The cost of rent will continue to increase
Demand will skyrocket for properties below R2 million
Technology will continue to help investors make informed and successful investments
If you take only one thing away from this article, let it be this: Don’t listen to the haters. The real estate industry is booming. TPN’s stats speak for themselves!
You can start a career in real estate investment today- yes, during a pandemic!- and profit. All you need is sound strategy, mentorship and the determination to achieve financial freedom.
If you’re looking to begin your real estate investment career- or make your existing investment portfolio more profitable- you’re in the right place. For more information on how to invest in real estate with no money down, download my FREE ebook! To learn more about property investment, you can read through my blog or contact me for a 1:1 consultation.
If you’re ready to take the next step in your real estate investment journey, I would love to help. I have created a no-nonsense course that can help you go from beginner to profitable real estate investor in the next 90 days. Click HERE to find out more!
Interested in learning about how to invest in real estate with no money down? Grab your copy of my ebook How to Invest in Real Estate with No Money HERE! I am giving it away for FRE