Buying a house to rent it out remains an excellent way to build wealth. With careful research, you can find a property that ticks all the right boxes. And being in the right area will also make your venture all the easier. According to Cobus Coetzee, Property Practitioner at Century 21 Rustenburg, Northam in Limpopo holds great potential for your property portfolio.
Background on Northam
Northam is a fast-growing town, lying roughly 30 minutes away from Thabazimbi and 65 minutes from Rustenburg. With the presence of platinum and chrome in the vicinity, the town plays a significant role in South Africa's mining industry.
If you're looking for quintessential bushveld living or a weekend wildlife retreat, Northam is the perfect place to visit. There is a range of game farms, lodges, and guest houses dotting the area's ruggedly beautiful terrain. Animal spottings are common, and you can expect to see kudu, blue wildebeest, giraffe, impala, blesbuck, zebra, nyala, jackal, and lots of bird species. While the area offers a welcome escape from big city living, it is less than an hour from tourist attractions like the Sun City Resort and the Pilanesberg National Park.
Within the town, there are plenty of amenities for comfortable living. Northam has popular fast-food restaurants like Wimpy, KFC, and Chicken Licken. Schools in the area include Krause Primary School, Northam Primary School, and Roosevelt Academy. Northam Plaza, the area's local shopping centre, provides easy access to daily essentials.
Why invest in Northam?
Besides being well established and a tourist hotspot, Northam is a buy-to-let paradise for a savvy investor.
"Platinum mines in the area are expanding and developing constantly," says Coetzee. "We have three main players in the mining industry here namely, Northam Platinum, Siyanda Bakgatla Platinum Mine, and Anglo American Platinum. "As these mines expand and develop, new employees are appointed and they all need housing."
"Investors can take advantage of this by providing much-needed accommodation. Mining businesses plan development and sustainability in some cases up to 50 years in advance and that creates job security and town sustainability which in turn create investment security.
"Generally, ROI of between 8-10% can be expected on rental properties. Our expectation is that this percentage will stay stable and in some cases, depending on the property, can increase. Mine contracting companies also rent larger houses for employees to share and, in these cases, return percentages are higher."
Northam's best buy-to-let properties
Coetzee says investors should consider properties that meet the needs and lifestyles of renters.
"Generally two-bedroom, low-maintenance properties are in high demand. These properties are rented by employees who work during the week and return 'home' during weekends. You'll find Northam residents are made up of people from all over South Africa."
There are scores of properties for sale in Northam that are ready to meet the needs of tenants. Coetzee also highlights the availability of vacant land in the area that can be turned into valuable housing for workers.
Advice for Northam buy-to-let investors
The area holds a wealth of opportunities for buy-to-let investors. However, Coetzee says it's smart to take a conservative approach and not expect property to make you rich overnight.
"Property is a long-term investment that will deliver returns over a period of time. Do your homework, speak to professionals like us, and don't just buy blindly. Northam is expanding greatly, and the future of the town and the industry is looking really promising. Therefore, if you buy the right property now, your investment will always grow," he notes.
Partner with buy-to-let experts
According to Coetzee, having the backing of experienced property practitioners can help you make a sound buy-to-let investment. Century 21 Rustenburg is the go-to choice in the Limpopo town to help you achieve your goals.
"Our property practitioners are knowledgeable about the marketing techniques ideally suited for buyer's and sellers' needs," points out Coetzee. "We are always monitoring results that keep the purchase or sale of a property on track. Plus, our model is based on being agent-centric, ensuring our team gives you their best at all times. We understand that if any franchisee is going to succeed, his/her team needs to feel proud, motivated, and well trained."
To get started, view Northam's properties for sale and contact Century 21 South Africa's local property practitioners in the area to identify your next buy-to-let opportunity.