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Gross rental yields are the gross annual income, which is expressed as a percentage of the property purchase price. This is what a landlord expects as return on the real estate investment, before maintenance fees, taxes and other costs. The Global Property Guide published South Africa’s gross rental returns and listed it at 3.88%. These figures are based on the Global Property Guides’ own proprietary in-house research.

However, it is worth noting that only resale houses and apartments are included in that research. Yields for newly built properties aren’t included. Compared with other countries, Tanzania reached 8.57% and Gambia 5.94%. South African property investors should prepare for rental yields of new properties to be lower than the gross rental yields released by the Global Property Guide. By doing so, you won’t be unpleasantly surprised, or make unrealistic expectations.

More Details Released On Properties Included In Global Property Guide’s Research

The properties included in Global Property Guide’s research were in excellent condition, with good facilities. They had also been redecorated or refurbished within the past five years. This is again an important distinction to make, in order to ensure transparency.

Keep in mind that South Africa doesn’t publish official house price statistics. However, ABSA Group releases good house price data, and they also have a monthly house price index as well as quarterly property projections. The Reserve Bank of Africa and First National Bank also make general economic statistics available.

One of the best ways to ensure you receive the best returns on your real estate investment is to partner with a seasoned property management firm. These professionals are best equipped to help your property perform optimally. They also remove the hassle of managing the property and dealing with tenants, and take care of every aspect of the tenancy on your behalf.

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