RENTAL flats and townhouses have generally delivered humdrum returns for investors over the past few years on the back of muted growth in both house prices and rentals. Industry figures show that annual rental growth has slowed from around 10% two to three years ago to an average 6% currently.However, now could be a good time for income chasers — cash buyers in particular — to enter the market. Rental returns on buy-to-let properties are expected to rise steadily over the next three years.FNB property strategist John Loos believes renting will become a more attractive option relative to buying as long as interest rates are rising, because higher rates will place home ownership further out of reach for many.Loos, like most other property economists, expects house price growth to slow markedly this year, to an average 4.8%, down from 6% in 2015. He believes the market will come under further pressure next year, with a likely house price increase of only 3.1% for both 2017 and 2018. “H...
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