Best rental investments in South Africa is a Cape Town Property
Best rental investments in South Africa is a Cape Town Property
The current property market is extremely favorable to Cape Town Property investments and should be of interest to those who especially want a choice lifestyle along with their investment.
The Western Cape is the second most popular tourist destination in South Africa after Gauteng. It has seen a 7.9% growth with 383,309 tourists arriving in the first quarter of 2010. Total Foreign Direct Spend has also increased with a share of 19.6% where the province itself has done 5.5 Billion Rands. Of the Western Cape Hout Bay stands third in rank for hotel bookings which make it also very hot. This translates into a very lucrative apartment rental and Hout Bay property market.
If you are thinking of investing in a Cape Town Property for rental then you should know that experts consider growth in this sector will continue with an average rate between 20-25% and thus offers a very good return per investment.
As a location it is very good and with its tourist population promises a great monthly rental income and future capital gain. There are several good letting agents in the area that you can use to administer yourCape Town Property for you at 15-20 percent of your gross income.
Managing your own first Cape Town property should be looked at as internship for becoming a landlord. While on the job you will learn ho to look after day-to-day operations, get to know the local rental scene and become experienced in appraising potential tenants faster.
Investors who already have fulltime jobs might find that they neither have the time or inclination of self managing their Cape Town property. One of the things that you must seriously figure out before getting into it is if you are the sort of person who would be a good landlord.
If you still want to invest in the Cape Town property boom there are of course professional caretakers and letting agencies who can be involved. These agencies will either take on the entire job for a fee but will usually be open to a form of job sharing if you don't want to totally stay of from your investment. If the in flow of cash form your retail property is significant why not think of keeping a manger in situ. He can take care of daily upkeep, repairs, show the rental to prospective tenants and so forth.
This is definitely an option if you live far away.
If you have a large rental with multi unit buildings you might still prefer the agency who can take on all management duties and save you the bother of screening, collecting and if need be evicting tenants. There are various ways to figure out a payment scheme for your management agency. It can be a flat fee taken monthly, or a percentage of the rental fee. Expert suggest that a percentage based fee acts as an incentive for the agency to collect the rent timely and prevents the fee from becoming to steep in case the market crashes.
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