SA Investment Properties

Since the rise to democracy in the 1990s, South Africa has increasingly made its mark on the international investment market, offering some attractive SA investment properties. Although interest rates have risen since the property power hour of 2004, investors can now take advantage of lower property prices.

Investing in property has become a popular long-term investment option because of the relative risk-free investment environment. Nowadays, many investors are choosing property over shares and stocks for long-term investment, and other have recognized the advantage of the property market as an alternative to pension schemes.

Investment property can serve as property to let or as a second home for prospective buyers. With South Africa’s peninsula shape and coastal stretches, there are many beautiful locations for prime property investment opportunities. There are many advantages of investing in South African property, as you can use the rent from your tenants to cover the bond, or have an exquisite holiday home to escape to.

 

What about foreign investment?

With its growing internal market conditions, South Africa presents favourable terms for foreign property investors. The International Property Investment Network (IPIN) allows members of the network to take a look at selected South African properties on the market. The IPIN works with a network of property developers, real estate agents and landowners to forge connections and contacts and find the best options for potential property buyers.

The network can also help property investors who wish to invest in a joint property development venture with other relevant parties. The South Africa investment research section on the IPIN website provides further reasons why South Africa makes hot property, including both favourable climate and lifestyle. Foreign investors will also find that newly regenerated areas and city projects can offer excellent returns. Compared with the rest of the world, investment property is still cheaper in South Africa than it is in other parts of the world.

 

Why South Africa?

With a great number of both cultural and natural factors to choose South Africa as a property investment option, a more appropriate question would be: “Why not South Africa”?

SA investment properties can boast the following cultural and natural advantages:

  • The large size and peninsula shape of the country means that there is a long coastline offering itself to property development and investment opportunities.
  • The diversity of climate and landscape means that property developers are able to choose a particular setting that they enjoy for their property investment purposes.
  • South Africa has some of the best year round climactic conditions in the world, making the country a great holiday destination, no matter the season. It also means that there are a number of outdoor activities that can be enjoyed among the diverse landscape.
  • With a diverse population, South Africa is home to a number of different cultural groups, the interesting influences of which can be seen countrywide.
  • Many regions in South African are home to wildlife parks, where you have the opportunity to seeing indigenous animals in their natural habitats.
  • There are 11 official languages in South Africa, but many people can speak English as a second language. Property transactions will be conducted in English, removing any language barrier issues.

 

Investing in South African property also has a number of economic advantages.

  • With the low exchange rate between the South African currency (Rand) and other major currencies such as the Dollar, the Sterling and the Euro, property purchasers are able to take advantage if this exchange rate and get more for their money.
  • Taxation breaks of as high as 20% are offered for real estate developers and for renovation projects, developers can take a rent tax break of 20% for 5 years.
  • Even amid unfavourable worldwide economic conditions, the property market in many areas is continually growing in the developing country.
  • In terms of commercial property, the South African market is performing better than the commercial property market in many developed Western countries.
  • In some areas there is a shortage of housing, meaning that rental properties are in demand.
  • Because the majority of South Africans are not high earning, there is less competition in the property market between buyers.

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  1. Property Investment Strategies for South Africans