The Paarl residential rental market, says Lizette Joubert, the Rawson franchisee for the area, is faring surprisingly well right now. Her franchise, which is still growing its rental portfolio, has been fielding enquiries at the rate of 20 to 30 per week and demand shows no signs of slowing down.
One of the reasons for this, she said, is that Paarl has an increasingly active business hub and is able to attract residents from a 50km or wider radius: they may be working in Stellenbosch, Somerset West, Bellville or even Cape Town. On moving to Paarl they often rent for a year or two while examining the market.
Others, she says, are renting so that they can free up capital for alternative channels such as their businesses or even buy-to-let properties.
'This can make good financial sense,' said Joubert, 'we can provide a tenant with a R2 or R3 million home on which they might pay only R10 000 to R15 000 monthly rental. If they bought with a 10 or 20% deposit, they might be paying R20 000 to R30 000 on their bond'
'Obviously,' therefore, renting right now gives those setting out in life or re-establishing themselves in a new career, a chance to save and to build a nest egg '“ which may or may not eventually go into a home.
Joubert has also said that the 5 to 6% returns on the residential rental stock available right now are satisfactory to many investors disillusioned with their JSE investments and they have been building their portfolios while prices and interest rates are low.
For further information contact Lizette Joubert on 021 872 8385 or email paarl@rawsonproperties.com.
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