Rentals a key reason for property investment

higher amount of money at a later stage from the sale of a property, the investor might want to benefit substantially from the rental accrued from the investment in property for subsistence or otherwise.

It becomes critical to be fully conversant with properties that bring about the best return to the satisfaction of the investor.
The ideal situation is that if the property is rented, the rentals accrued monthly should repay the owner their initial purchase price of the property in 10 years.
In calculating whether the investment will give the adequate rental return, it is best to calculate the cost price against the areas average rental price, without ignoring particular features on property that may increase its rental value.

The average rental amount once found must then be calculated against the 10-year recommended period of return.
If the property can recoup the money in less years, it becomes a worthy investment if not, then one should consider other options.
When considering rental investment, one cannot ignore the type of tenant in which one intends to attract for the identified property.

All properties have their ideal tenants who give the best return on the investment.
In terms of rental advantage, the central business district will always have commercial property attractiveness because of the sheer number of people from across the country that converge daily to conduct business.

In some instances the fair rentals achievable do justify the high price tags on some buildings.
Some areas, notably Eastlea, Belvedere, Avondale and Milton Park, have benefited tremendously from their proximity to the central business district.
Although the property prices remain considerably lower than those in most affluent areas within our country, some of the properties within these areas are achieving competitive or even higher rental return than the more expensive properties.

The reason for this is their commercial appeal. Some businesses especially consultancy firms are opting for these areas in order to save their clients from paying parking fees.
Properties within these catchments have an appealing rental investment return.

If the commercial property is positioned in a location where it attracts the affluent, then for that very reason it can just be as competitive in its rental appeal as a commercial property located in a high-density area and benefits from economies of scale.

The main job will be to get the best tenant that will be able to fully exploit the affluent market while paying competitive rentals that benefit the investor. Sam Levy’s Village is a good case study
Flats and secure clusters offer a lock and go option that make them very good investment options.
This is because one can attain the same or more rental value from a flat compared to a house while having paid less to buy the flat.

Our economic challenges have made flats even more attractive because tenants now consider in their assessment, availability of electricity, water and proximity to the CBD, which reduces transport cost.

In addition, the floats are more convenient due to their close proximity to hospitals, schools and much more.
As most flats in and around the CBD offer most of these services, the demand for them on the market has increased significantly resulting in higher rental returns.

However, there are shortcomings to these flats, as one has to consider whether the same rentals can be achievable in five to 10 years given the need to constantly carry out repairs due to the high turnover of tenants.

Since flats do not offer the ideal family set-up, most tenants are young, single, in school or very mobile.
They do not offer the cushion for a long and dependable tenancy, with an increased risk of default in rental or utility payments that can adversely affect the investment targets.
These are just a few property investment realities one must consider when opting to buy a property that brings a good rental return.