Parklands rents for managed property are beginning to rise steadily. This is good news for property investors who bought property to rent in Parklands, Tableview and Blouberg areas.
The national index shows a rise of 6.9 percent in a period of just less than nine months ending in March 2010. This is high compared to annual 9 percent. This is a good indication to property investors because it means that their return on investment (RIO) is improving. The drop experienced was as a result of recession experienced by all markets.
Parklands still remains the suburb preferred by most developers who build buy to rent property stock.
The age of Parklands counts the most as most buyers preferred new developments because of the price but also due to the fact that it attracts most tenants who are looking for a safe area to rent. The Bus Rapid Transit (BRT) project that is nearing its completion stage is the most convincing factor for most tenants and buyers because it means that traffic congestion will improve drastically.
The BRT offers more than one advantages to both developers and home buyers. During peak hours it takes about an hour to move from Parklands to Cape Town which is a distance that takes only 15 minutes if there is no traffic. The BRT will offer commuters quicker mode of transport which will save then time and fuel cost.
Presently about 35 percent of property owners are black owners who bought properties in Parklands because it still remain the most preferred suburb to black buyers because of a number of factors. One of them is its low levels of crime. This counts a lot because most of buyers are people coming from Gauteng and KZN who do not want to risk their families. They are also very cautious because they know that they will want to sell their property at some stage.