Statistics show an increase in the migration to Gauteng. Is this a new trend? Not according to latest statistics!
Statistics by Standard Bank show figures from the 2000's being "normal". But let's look at the implications if there is indeed a migration to Gauteng. Is this due to a higher cost of living in coastal towns, or is it because Gauteng has better employment prospects than coastal towns?
Speaking from personal experience, it is beneficial to a certain degree to accept a transfer to a coastal town. Because the employment market at the coast is lower, income is also lower and eventually you will be in line with salary trends at the coast. It is then time to revise your income again and relocate back to Gauteng if needed.
When looking at statistics it is clear why there will always be a demand for Gauteng as a residential property investment. According to Steve Barker, head of Standard Bank Home Loans "There has been above average increase in building activity within the province". This is a good indicator on the prospects Gauteng can offer.
The statistics from the Deeds Offices in Gauteng show that at least half of the deeds registered country wide were in Gauteng.
According to Standard Bank RPV statistics, rental income from flats in Cape Town and KZN are significantly higher than in Gauteng. These figures by RPV show that rental income inflation was at 4.6% year-on-year as of July 2013. This compared to figures of 4.9-5.0% in the Western Cape and KZN over the same period. The question is if these figures include Gauteng investors investing in holiday property to let. With the interest rate being a stabilising factor in the property market and higher income from Gauteng residents, this is a statistic that should be reflected separately.
37% of the Gauteng population opt to rent rather than own. Taken into account is the high population density figures recorded in Gauteng compared to other provinces. Due to the high population density figures, higher unemployment figures will also be evident in Gauteng which could relate to this 37% of the population renting rather than owning.
Now is still the time to own property in Gauteng, with financial institutions offering 100% bonds and lower interest rates.
Should you consider investing in property, Myroof consultants are available to assist you in your decision.