Why the flat rental growth is good news for SA landlords
The PayProp Rental Index reveals second quarter growth, measured year-on-year, of 3.86%, a similar number to the growth rate measured in Q1 2019.
PayProp’s Johette Smuts says that adding a moving average trendline highlights longer-term trends. In this case, it shows good news for landlords - rental growth remained steady over the last quarter, and is not trending downward anymore.
Long term insights
“Flat growth started in 2018 and 2019, so it’s easy to forget that we had higher-than-inflation rental growth for much of 2017,” says Smuts. “In that year, the average growth rate over 12 months was 6.45%, compared to inflation of 5.3%. Before that, in 2016, rental growth was much more in line with inflation.”
For the last two years, however, Smuts says inflation has been outpacing rental growth rates, even though the rate of growth in consumer prices has dipped over previous years.
Retirement property: Working with the capital you’ve got
Discussions around retirement typically revolve around having the required funds to live comfortably once a person stops working. This ‘income for retirement’ is what most of us save up for during the bulk of our lives.
But what happens when it becomes time to decumulate that wealth?
Arthur Case, Brand Marketing Director at Evergreen Retirement Holdings, says more must be done to highlight investment strategies around this critical aspect.
Decumulation refers to the stage in your life when you start drawing retirement income from your portfolio. But one of the key concerns for any person approaching retirement is whether there is enough saved, especially given how life expectancy has increased over the years.
Self-employed? Must-knows when applying for a home loan
The laborious bond application process is even more painstaking for the self-employed, and it’s critical that these buyers take the time beforehand to familiarise themselves with exactly what is required and the criteria to be met as applications can easily be delayed, or even declined, due to simple omissions or errors.
This is according to Herculene Visser, Area Specialist in Tokai for Lew Geffen Sotheby’s International Realty, who says that banks are more cautious about granting loans to self-employed home buyers and they usually require deposits of up to 20% as well as more documentation than salaried buyers, who only need their salary advice and copies of their last three months’ bank statements.
Visser says it’s not only important to ensure that all the required information is included, but also that it’s comprehensive without any omissions and in the format required by the lending institution.