Berea

Berea sits on the ridge directly above the CBD, a mature, tree-lined suburb of grand older homes, many long since subdivided into flats, and one of the densest clusters of respected schools in the country. It has been a default address for Durban's middle and professional classes for a century, and that legacy shows in its settled, slightly genteel character and its deep, diverse community. For investors Berea is an income play. Entry prices are among the lowest of the desirable suburbs, tenant demand from families, professionals and students is constant, and gross yields are high (the headline ~13% on a small 1-bed compresses to a still-strong ~8.6% net). The catch is the building stock: much of it is ageing sectional title, so scrutinise the body corporate, levies and reserve funds carefully. Capital growth is slow, Berea rewards the rent roll, not the resale.

Berea in Durban, KwaZulu-Natal, South Africa