There is one recession-proof property investment in South Africa that experts swear by – student accommodation.
According to Berry Everitt of Chas Everitt International, the demand for rental units near campuses is growing as student numbers increase year-on-year. Everitt stated that universities are struggling to build additional student residences which means that student are relying on the private sector for housing.
To secure your investment, Everitt said that rent for student accommodation per square meter is higher than residential units. To find a student tenant is also easier with many institutions compiling free property listings, which are distributed at the end of each academic year.
Everitt advised that one should look to invest in property close to the campus, as rates are higher in these areas. At the moment Pretoria, Johannesburg and Witwatersrand are showing growth with Potchefstoom also pointing to potential. Everitt advised to keep an eye out for Pietermaritzburg where numbers are expected to grow.
However, Everitt warned, investors need to carefully select property that needs little or no maintenance. Look for robust surfaces that are easy to replace and implement a breakage cost paid by the tenants.
Use December summer holiday to do maintenance in and around the property for most students will not use the accommodation then.
(This article is courtesy of IOL)
Rent property in South Africa
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1 comment:
Being a student and living away from home for the first time in life is a great change.Searching accommodation its very very difficult.I had that experience.So horrible thing.We were roaming for one whole day.
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