Just bought a R3 million 2 bed flat and thinking of renting it out for R15000 or so a month?? You might want to reconsider. Business Report writes:
The top end of the residential letting market, with monthly rentals of R12 000 a month or more, is showing signs of financial distress.
Payment trends deteriorated significantly in this rental bracket in the fourth quarter of last year, with the number of tenants who made no payment towards their monthly rental increasing to 21 percent from 12 percent in the previous quarter, according to the latest rental payment monitor compiled by TPN Credit Bureau.
In addition, the percentage of tenants in good standing in the R12 000 plus rental bracket decreased by 8 percentage points to 64 percent between the third and fourth quarters.
Original Post on Cape Town Property Bubble: Rentals In Trouble At The Top End
