The world is changing fast and to keep up you need local knowledge with global context.
With Gross Domestic Product off a cliff, businesses brought to a standstill and at least 3m jobs lost in the second quarter, it’s not surprising that small property investors are taking strain.
At least two in every 10 tenants in the Western Cape did not pay their rent in that period; in Gauteng and KwaZulu-Natal, the number of defaulting tenants goes up to 30%. And, many of those who paid were late.
Landlords can’t expect to recoup lost income any time soon. The TPM Rental Monitor, which undertakes regular surveys of the residential property sector, underscores that increases are unlikely for most as excessive construction activity catches up with demand. About 10% of buy-to-lets are apparently standing empty.
A reminder to diversify across asset classes – and geographies. Our guests at the BizNews Finance Friday webinar have been explaining how. Register once to secure your place each week, here.
PS: For inspiration from a 45-year-old global South African on how to make money – and grow a successful international restaurant chain – from scratch, download The Alec Hogg Show: Tasha’s story – in conversation with founder of a growing global empire.
Cyril Ramaphosa: The Audio Biography
Listen to the story of Cyril Ramaphosa's rise to presidential power, narrated by our very own Alec Hogg.