Property Is Your Best Investment due to tenant activity

Whether a rental or sales agent, you should not be too concerned despite the recent interest rate hikes.
Recent stats revealed that residential tenants are paying their rentals despite facing economic challenges exacerbated by load shedding and higher fuel prices.
Consumers consider rental payments the second most crucial budget credit priority, second only to mortgage or bond repayments.
This is a vital statistic for property practitioners active in the rental industry. The number of tenants in good standing with their monthly rental obligations improved from 80.78% in the first quarter to 82.22% in the second quarter.
The strongest commitment is firstly in the R7 000 to R12 000 and secondly in the R12 000 to R25 000 rental brackets. This shows a solid commitment to paying their rent on time, with 88% and 87%, respectively.
Although tenants paying between R3 000 and R7 000 – a rental bracket which makes up more than half the market – have not yet recovered to pre-pandemic levels and show a commitment of 82.8%. This shows that property is your best investment.
Interestingly, the worst bracket is above R25 000, with a noticeable deterioration in repayment commitment to 77.38%.

As interest rates now return to ‘normal levels, it is still a suitable time to buy, and long-term views on investments should now be applied
On the home loan front, applicants will continue to benefit from attractive interest rate discounts – spurred on by healthy competition among the banks, longer home loan repayment periods and the more realistic pricing of homes for sale.
Investment and holiday homes at a record high: The percentage of applications for investment/rental purchases continues to rise, reaching a high of almost 8% in August 2022 – the highest level since late 2009.

≈ ≈ Marsha

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