In fact, research into the provision of affordable housing in the so-called gap market in South Africa shows that it also brings with it improved welfare and social cohesion.
As an property investor, what makes the Affordable Housing market so attractive?
In general, property investment opportunities are found in place where there is a dislocation, or some market inefficiency.
In South Africa, our apartheid history created a strong barrier to homeownership.
While, on the positive side, we have growing middle class which is leading to increased demand for housing.
What is needed at present are more well-located, high quality housing at the right price.
Strong Demand For Gap Housing
The affordable housing sector is the only sector of the property market that currently has considerably more demand than supply.
There is a 600 000 housing unit shortage in this sector, and that number grows by about 40 000 units per year.
The supply of new housing solutions is struggling to keep up with this fast growing demand. A perfect situation for any property investor.
What Is The Affordable (Gap) Housing Market?
The gap – or affordable market - refers to people who earn too much to qualify for government-subsidised housing but not enough to qualify for home loans from the major banks.
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