February brings with it the National Budget Speech, and in the leadup to this crucial moment, property investors and real estate role players are getting ready to roll with any punches that might be thrown. The past two years have been tumultuous at best, and although there is a general cause for optimism there are various factors to consider going into 2022.
Here are a few key forecasts by Pearl Scheltema, CEO of rental management agency, Fitzanne Estates, sectional title expert, specialist property manager, property administration professional, and trustee management trainer.
“The real estate industry is a lot like a gearbox – the various ‘cogs’ in the system all have an influence on one another. As such, the behaviour of South African property buyers, renters, and sectional title owners will all have an impact on one another,” Scheltema explains.
The rental market will stabilise (to a certain extent)
“As I mentioned, one aspect of the real estate industry has an impact on the other, and this is especially true when it comes to buying and renting,” Scheltema explains.
At the end of 2021, there were a variety of articles in different publications talking about an excess of rental apartments on the market, due to the fact that many prior lessees were now buying properties themselves.
“This meant that the remaining renters in the market were in a position to negotiate with landlords and their rental management agency in terms of monthly rent, repairs to properties, etc. As such, rental rates dropped quite a bit last year. Now, at the start of the new year, landlords and the rental management agency who have had to deal with a lot in preceding years due to defaulting renters, empty properties, etc. are trying to raise rental rates again to make sense of their finances.
“However, it is still nowhere near the mark where we were two years ago. As such, renters currently have access to wonderful, well-maintained spaces at around 30% less than what they would have paid two years ago,” she reiterates.
However, over the course of the last year, Scheltema’s experience has been that most landlords had at least some opportunity to recover financially and look at making necessary repairs and upgrades to their rental spaces. Many were able to catch up on bank repayments and get their properties in better condition.
“As such, the demands of renters are not quite as prominent as last year this time, although reasonable landlords, of course, still take it into account.”
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With such a complex time ahead, it’s essential to focus on what can be controlled. Keep informed and surround yourself with a competent, knowledgeable rental management agency that can guide and support you no matter where the market takes us.
Read more:
New Property Practitioners Act now in full swing
#Budget2022: What should we be expecting in the real estate industry? Part 1 Sales
#Budget2022: What should we be expecting in the real estate industry? Part 3 Sectional Title Schemes
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Media contact: Cathlen Fourie, +27 82 222 9198, marketing@fitzanne.co.za https://www.fitzanne.co.za/
More about Fitzanne Estates
Fitzanne Estates (Pty) Ltd is a Property Management Company that can sufficiently administer your property investment to the benefit of the Landlord, the Body Corporate, and the NPC – Non-Profit Company. Services include Letting, Sectional Title Management, Full Title Management (NPC – Non-Profit Company) and Sales.
Website: https://www.fitzanne.co.za/
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