High Yielding Property Investments For Property Investors In Hillbrow
One of the pints of unanimous agreement between the property experts in South Africa is that the properties of northern suburban regions are capable of better returns if a long term commitment can be achieved. If you require good returns on your investment property, in the rental sector, especially residential property like flats, there are better choices than merely the affluent CBD corners of Johannesburg since there are always hidden diamonds in the ‘no go’ areas like Berea, Yeoville, Braamfontein, and Hillbrow.
An investor in these regions will require adapting to a distinct style of management so as to make sure that decent returns are generated due to the high risk factors. Property economists like the CBD based Francois Viruly from Viruly Consulting believes that best returns on home based properties can be obtained, although these are not determined by conventional property management companies. The approach that is required is different out here. The northern suburban regions are the place of contracts, whereas Hillbrow focuses on people.
If you purchase a flat in Hillbrow for R50000 and receive a rent of R3000 every month, it is a good prospect. Property managers know the inns and outs of the game as rental defaults in regions such as Hillbrow are pretty high.
The functionality of the region remains the same as it has played a significant role for first time investors in the property market of the country, as well as those not related to the system. Earlier, Hillbrow was the first port of call for immigrants from Europe, which is a trend now being maintained by people from other parts of Africa. Property subsidies are not available to foreigners, which is why they rent. Hillbrow is a potential stop for them being close to the CBD and job opportunities.
Hillbrow has potential from the investors’ point of view more than other areas. The apt investor looks into the micro locations of the city which offers attractive returns. Investors do not usually sell off their flats in Hillbrow since they generate attractive returns. In that case, you need to get the help of a management agency which will help you play the game well. Yeoville is also an upcoming destination offering higher returns. Flats and blocks are acquired in Yeoville and Berea which promise initial yields of about 25% to 30%.
Getting rentals requires the investor to put in hard work and regular management. Short term gains from capital are minimal, although the government efforts to clean up the Johannesburg CBD bodes well for medium and long term projects in the CBD and neighboring areas. In Yeoville, you can pick a flat of 4 units for R100000. Although the nature of the business is pretty lonely, you need to be committed for long term gains.
Author: IMAGINE Properties