The decline in the number of first-time home buyers has made the rental option more attractive, but people looking for homes to let are limited by affordability, say estate agents.

Mon 21, 07, 2008

The decline in the number of first-time home buyers has made the rental option more attractive, but people looking for homes to let are limited by affordability, say estate agents.

The FNB Residential Rental Barometer for the second quarter of 2008, released yesterday, showed a decline in activity from a rating of 8.4 to 7.6 . Agents who were polled for the national index said only 59 percent of rental properties on their books were snapped up in less than a month, compared with the 75 percent take-up recorded in the first quarter of the year — a 16 percent decline in activity.

The main reasons given for slowed activity was a 7.43 rating of landlords asking high rentals, and a 6.73 rating for the letting market being a tenants market.

But, compared to owning your own home and paying off a new 100 percent mortgage loan, and having to contend with maintenance costs and facing the risk of the decline in house prices, renting still seems to be the better option for some consumers, said FNB.

FNB Home Loans property strategist John Loos said the latest rating was strong, and indicated a broadly strengthening trend in residential rentals, which is expected to last over two years.

Loos said the index confirmed the almost disappearance of first-time buyers, who were either choosing to stay with their parents longer, or were already absorbed in the rental market and waiting for a favourable buyer market.

‘‘Although landlords want to push up their rentals because of increased demand, tenants also have affordability and inflationary pressures that may limit their ability to meet higher monthly rentals,” said Loos.

Please send me more details for 3 bedroom apartment with 2 bathrooms....with property ref: Dawn 165.

Is it ground floor? I need one bedroom on the ground floor as my father is in a wheelchair. Many thanks.

==================================================

Submission Date: 7/21/2008 9:41:34 AM