Joburg Inner City And The Prospect For Property Investors
Category Advice
The CEO of Aengus Property Holdings, Richard Rubin, believes that when compared to the traditional, as well as suburban investments that had dominated the property cycle, those who are keen on managing their rental property investment can generate returns that can very well exceed expectations. He has no doubt in his mind that the conditions of the market in the inner city of Johannesburg (including areas such as Berea, Yeoville, Braamfontein, and Hillbrow) will have a positive effect on the prospects of investment in the area.
Demand for housing is promising owing to a number of large, and well established employers in the centre of the city who have devoted themselves to the benefit of the area. The provision of home accommodation however that caters to the needs as well as way of life of the rising middle-class income is limited.
Those having a monthly income that is from R7 500 to R12 000 are targets of these developments.
The subsidiary of Aengus’ rental management has received 1500 applications from the prospective tenants within a month of completing 223 Fashion Loft Apartments, located on the junction of Pritchard Street and Delvers Street in the Fashion District situated in Downtown Jozi.
Aengus owns and manages over 3000 apartments in the inner city as well as boasts net rental returns for investors measuring up to 10,5%. The mandatory in-house screening for tenants, rental collections as well as maintenance is partially responsible for the monetary achievement of the investment.
The move that had been made more than a year back to ensure that some of the units are available for sectional title investors is something that gave the other property investors accessibility to look into the benefits of continuing management and control. The policies have been put into effect over 6 years when Aengus has been in operation in the development of the inner city and the rental market. Investors have even accepted the offer of purchasing units that range between R220 000 and about R600 000.
Aengus guarantees the investors a pedestal rental for 24 months. This means that income risk for the investor decreases.
Since the apartments are all fully furnished with white products and plasma TVs, tenants would not have to spend their disposable income on furnishing their apartment. On the contrary they could use their income to pay rent.
Author: IMAGINE Properties