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.
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