Capitalising on the Potch student market
Potchefstroom is home to one of the eighteen universities in South Africa and experiences and influx of thousands of students every year. For local property investors looking for a decent return on their money, this city remains an excellent alternative to student hotspots Joburg or Cape Town.
Capitalising on the Potch student market
As the home of five tertiary institutions, including the North West University, the College of Education, and the Technical College, Potchefstroom attracts hordes of prospective students each year. Together, these institutions have over 100 000 full time students enrolled in various study fields yet can only place less than half in on-campus accommodation.
Like any other academic town, the demand for student housing outstrips the supply of campus accommodation and the availability of private rental stock. This means that at the start of each year, a high number of queries for property to rent surfaces, giving buy-to-let investors the promise of strong rental yields. However, the property they buy can only be profitable if investors make the right move on their purchase.
The student checklist
Students often put convenience at the top of their list when looking for rental accommodation. They want a flat or house close to the university and in a safe and secure complex. They also want to be able to walk to the supermarket to buy their groceries or to access the local library. If investors choose to buy in an area further away from campus, a fantastic transport link to campus and to lifestyle amenities are necessities.
The benefit of investing in student accommodation
The strong demand for student housing enables landlords to ask the premium when renting out their property. Another benefit is that the student rental market is usually the least sensitive to economic downturn as the demand will always be there. Property owners are therefore always guaranteed of a rental income.
Those looking to diversify their portfolio and find an investment with optimal returns would benefit greatly from this high-demand opportunity, however, it’s wise to research and understand the specific market first before diving in.
