The property rental market in Blaauwberg has for a year or more experienced a shortage of stock, but despite this rentals in the area remain competitive and people are taking advantage of reasonably priced rents to live in attractive homes or apartments that they could not afford to buy, says Karina Burger, Rawson Properties' Blaauwberg letting agent. At the end of 2006 Burger took the group's prizes for both the number of units let and for fees earned. She was the victor not only in the final quarter but also in the annual competition.
Bill Rawson, Chairman of Rawson Properties, has said that these awards reflect the strength of the Blaauwberg rental market as well as the long hours put in and the commitment shown by Burger, who often remains on duty until after 7 pm and works alternate Saturdays.
"Despite negative comments in the press about the buy-to-rent market," said Burger recently, "the vast majority of the 90 apartments that I manage and the 120 for which I am responsible for finding tenants (but do not manage) are owned by investors, most of whom are content to settle for a 5% or 6% rental return because they are getting a 10%to 15% capital growth per annum - a rate well above the average for Cape Town or indeed South Africa."
Rawson Properties, said Burger, charge 7% of the monthly rent for unmanaged and 12% for managed properties. When a property is managed Burger will visit it regularly to ensure that it is being properly looked after and will organise the necessary maintenance. Rentals for apartments, said Burger, are now between R2,800 and R4,500 per month (the latter for a two bedroom apartment on the beachfront), while homes are renting from R4,500 to R15,000 (again for a beachfront property).
'These prices are well below those of Camps Bay, Clifton, Fresnaye and similar areas, which is why we have so many young people moving here," said Burger. 'What is more, the rapid development of the Blaauwberg area is transforming its image. It is likely to show some of the fastest value appreciations in the Greater Cape Town area'
Asked for her advice on an investment in residential property, Burger recommended buying two or three units in the lower price range rather than one in the R1 million plus bracket.
"The return will be better on the lower cost units and the effect of going one or two months without a tenant, if and when this happens, will be less serious."
Burger said that she now receives over 50 enquiries per day for rental property and if she had more stock could be renting out at least 50 more units.
"It looks very much as if the demand for rental accommodation here will remain strong because the attractions of the beach are now increasingly complemented by sophisticated sports clubs, shopping malls, restaurants and disco clubs. The area is alive by night and has a fresh, young ambience."
For further information contact Karina Burger on 021 557 5514 or 083 320 0590.
