Township Micro Flats: Kasi Economy Sees a Boom in Affordable Property
- Township economies have seen an increase in the availability of affordable rental accommodation with many of these dwelling able to support a small middle-class family
- The affordable units come with all the necessary amenities with space for a bed, a cupboard and a table and fully furnished with a sink and shower
- Mzansi's young entrepreneurs have cleverly seen a gap in the rental market and it's expected these dwellings will result in massive returns for the owners
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Local township economies are seeing a boom in the real estate market with many recent property developers choosing to invest in affordable micro-flats.
Source: Twitter
Affordable housing
The low-cost rental apartments are targeted at young families and professionals, hoping to make a new start in these fully re-furbished kasi dwellings. Their earnings range from about R3 500 to R15 000.
The stunning units often have space for a bed, a cupboard and a table, including a bathroom with a toilet, sink and shower. Each unit also has it's own geyser and an electricity meter box.
Young property developers have certainly seen a gap in the township market and it's expected these affordable living quarters will bring back great returns.
Kasi economy
On the subject, the voice of the township hustlers, @KasiEconomy, had this to say:
"A new generation of property entrepreneurs is emerging in the townships.They've seen a gap in the property market for low-cost rental apartments & have seized the opportunity by developing properties & then offering affordable rental units."
"The units are mostly servicing gap market dwellers - those who earn between R3 500 and R15 000 a month. It is estimated that about 3.5 million households fall into this market. These households include young families, recent graduates & single professionals." they added.
Returns on investment
The units are expected to make incredible profits for their owners, with a new study by the Nedbank Urban Real Estate Research Unit revealing these dwellings could make as much as twice the returns of a similar property in the CBD.
Those individuals that go into this sector of property development are completely normal, working on average 9-to-5 workdays and have little to no building experience, proving it's a venture any true hustler could make a success of.
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South African earnings as compared to the world
In some other business stories, Briefly News previously reported that new data from global property consultancy group Knight Frank shows how much South Africans need to earn to be considered part of the worlds wealthiest 0.01%.
Believe it or not, as of December 2020 there were 44 605 dollar millionaires living in South Africa. The property group anticipates that number will grow to as many as 63 400 by the year 2025.
The consultancy group predicts that the global population of people whose nett wealth exceeds $30 million or more will grow by 27% over the next five years, while the number of millionaires is predicted to rise by 41%.
The group also looked at the wealth required to be in the top 0.1%.
The US tops the list with over $25 million required, followed by Monaco, with $22.2 million, with Switzerland trailing in third ($16.6 million). In South Africa, the magic number is $1.6 million – a little over R22 million.
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Source: Briefly News
