Updated: Dec 30, 2020
Now is the time to invest in real estate. The proof is overwhelming. Last week, Realtor.com’s Weekly Housing Market Update reported that:
Median listing prices have seen double-digit growth for the last 17 consecutive weeks. Last week, they grew 13.5% over this time last year.
Houses are selling 14 days faster now than they were this time last year.
New listings decreased 7%
What does this mean? That it’s a real estate investor’s time to shine! House prices are rising and they are selling faster, which means there is an increased buyer demand. However, there are less new listings which means there is an opportunity for investors to make moves matching waiting buyers to new properties.
But where should you invest? This is the question every real estate investor is grappling with right now and luckily, we have the answers. In this article, we analysed TPN Credit Bureau’s Q3 Vacancy Survey and their Q1 and Q3 Residential Rental Monitor Reports. TPN is the only South African credit bureau that specialises in the property market.
We pulled data from these reports to find the top 4 real estate investment hotspots in South Africa for 2021:
We are so happy that Gauteng made the list as one of the top real estate investment hotspots in South Africa- but we’re not surprised. Gauteng is our home, but it’s also where we have been investing for years, so we know that it’s rich with opportunities for new investors.
The country’s rental market and good standing rates took a hit in Q2 because of COVID-19, but Gauteng is one of the only provinces that saw an improvement in good standing rates in Q3. Their rates rose from 71.1% to 71.85%. While Gauteng’s good standing rates are still sitting below other provinces, their rates are rising while provinces with higher rates- namely the Western Cape- are slightly declining.
North Coast of Kwazulu Natal
The north coast of KZN is a fantastic place to invest right now, according to both BusinessTech and TPN.
According to TPN’s Vacancy Survey in Q3 of 2020, KZN has one of the strongest rental markets with a score of 46. The national average is 41 and while COVID-19 created weaker rental markets in most provinces, KZN’s has remained steady since Q2.
Additionally, KZN’s good standing rate improved in Q3 jumping from 70.83% in Q2 to 73.55% this quarter.
Additionally, Blackburn has one of the best lockdown good standing rates in the country, according to TPN’s Residential Rental Monitor Q1 Report. Blackburn’s rate is sitting at 86%, while the national average is 74.5%.
The Western Cape can be a good place to invest in real estate, if you know where to invest. Some areas- such as those closer to Cape Town- are struggling. However, areas farther away from major cities are thriving.
Source: TPN's 2020 Q1 Residential Rental Monitor Report
In fact, 4 towns in the Western Cape had the highest lockdown good standing rates in the country. Stellenbosch ranked at 93%, Macassar at 91% and Wellington at 88% and Durbanville at 86%. The Western Cape’s vacancy rate is also sitting at 10%- well below the national average of 11.39%.
Estate Living recently conducted a poll asking respondents which province is the best for property investment. 38% said the Western Cape, 32% said KZN, 26% said Gauteng and 2% said the Eastern Cape.
Surprisingly, the stats prove that the Eastern Cape is the best place in the entire country to invest in real estate right now for 3 reasons:
It is the only province where rental market strength increased in Q3. Their rank is currently at 54, which is above equilibrium at 50. This is great news for investors because more demand than supply creates an investment opportunity.
It has one of the best vacancy rates in the country at 10.4% compared to the national average of 11.39%. Low vacancy rates mean that investors are profiting consistently.
It has one of the best good standing rates in the country at 80%. Grahamstown also ranked as the highest lockdown good standing rate in the country at 91%.
Source: TPN's 2020 Q3 Residential Rental Monitor Report
There are so many profitable places in South Africa to invest in real estate right now. If you’re struggling with how to get started, here are 4 actionable steps you can take:
1. Learn how to invest in real estate with no money down:
2. Educate yourself on real estate investment:
Our blog has dozens of posts all about real estate investment for beginners. Take a look at some of our most popular articles: The First 5 Steps to Becoming a Real Estate Investor and Real Estate Investing 101: How to Find Investors.
3. Find out what kind of investor you are:
Take this free 10-minute survey to find out what kind of investor you are and start getting matched with properties that fit your criteria.
4. Take a course on real estate investment from the pros:
Back in September, I hosted South Africa’s largest online real estate investment summit. Dozens of real estate investment experts, PropTech owners, property coaches and property managers hosted sessions on topics ranging from structuring your investment portfolio to building a recession-proof real estate investment business. You can get access to all of those sessions here for only R3038!
2021 can be the year that you break away from your 9-5, find financial freedom and start a career that you’re truly passionate about. I can help! Take one of these easy steps today to jumpstart your investment career. This is going to be your year!
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 FREE! In it, I reveal my proven strategy to building wealth through real estate investment without spending my own money. This strategy includes several of the income streams I created without paying any money down.
So- are you ready to start building wealth through real estate? If the answer is “yes,” then it’s time you followed these steps:
1. Register for my upcoming live stream
2. Download my ebook
3. Join our Program
4. Watch our previous Live Stream on the YouTube Channel.
5. Join our Facebook Community to plug into a mastermind of like-minded individuals.
6. Book a FREE Mentorship Call with me