The homework behind an investment home
Category Market News
My Money Matters | Written by Matthew Edwards
23 May 2018
Buying a property is usually the first big investment in one’s life. Whether you intend to live in it, utilise it as an income generating asset, or a combination thereof, you really need to be sure to do your due diligence before signing on the dotted line. So, in seeking a true expert opinion on all things property investment, we spoke with Michelle Dickens, Managing Director of TPN, Africa’s largest credit bureau for rental properties and one of Absa Home Loan’s strategic partners.
TPN has been collecting and collating tenant data through their propriety software since 1999, constantly adding to the most comprehensive tenant database on the continent, and providing fast, easy and objective tenant vetting for landlords and rental agents. And, as any seasoned property investor will tell you, finding a reliable tenant is often the factor that determines the success of your investment.
According to Michelle, whether you’re looking to buy a property to live in or let, your criteria should remain the same. Tenants and homeowners want the same things: safety, security, transport links, access to services and other considerations; with the location and property type emerging as blanket factors in determining a good investment property.
“Smaller, secure properties in urban areas with good transport access could be considered ideal investment properties for any investor.” Michelle states, “Our data indicates that the highest tenant demand is for properties in the R3000 –R7000 monthly rent bracket, whilst the R7000 - R12 000 rent bracket sees the best performing tenants for rent collection, and the lowest vacancy rates are also seen in the R3000 - R7000 bracket. We can also determine that sectional title units, outperform full title properties, and smaller units outperform bigger units. So, this paints a picture of the preferred property type investors should be looking at.”
ARTICLE COURESTY ABSA BLOG
Author: Matthew Edwards
