Buying South African property Investments. Investment in property offers relative stability. Ten reasons to invest in property in South Africa! Investing in the stock market can often bring forth great returns, but it is also unstable. and there is always a possibility that you will loose a lot of your capital. Experts suggest, that you balance your investment portfolio. Choose a relative stable option. In South Africa, the property market is just one of those lucrative options.
Property Investment Shortage In South Africa
South Africa’s turbulent political past, has left the country with a shortage of housing. The government has made solving this problem a high priority. This focus on housing, will result in a long-term structural growth potential. Within the South African property market people are migrating to better neighbourhoods. More expensive homes are set to continue for a long time to come.
Property cycles in South Africa
Many people dream of having their own property. The added sense of security and comfort of a continuous growing asset that goes with it. When young people leave school, they first enter the working world. They then enter the property cycle through renting a flat. Then buying one, selling it off and then buying a small house or townhouse. Over the years they become more financial secure and will be able to invest in their own dream property. They are likely to sell this home once they reach retirement, to move back into a smaller house or townhouse. The high demand for property in South Africa means that an astute investor will benefit. This benifit will continue throughout the property cycle and bound to provide high returns.
Stable vs unstable world
The effects of 9/11 echoing throughout the globe, everyone is aware of extremist attacks. This can have a profound negative effect on the economies and stock markets. In particular on those countries affected. Terrorism is a global problem. When it comes to South Africa, experts are of the opinion that the country remains one of the least affected. This balanced position is proving the catalyst for property investment interest from abroad. The increase in foreign investment is stimulating an already active economy.
High property rentals rate
Interest rate hikes and inflation, has caused a number of people choosing to rent rather than to buy. This means that the buy-to-let market has become a popular property investment option. Around the country and particularly in the bigger cities this has become the trend. Renting a property out will also help you to pay off your bond, while the value of the home increases.
Top holiday investment destination in the world
Throughout the world, people put South Africa on top of the list as a prime holiday destination. The country is home to a picturesque landscape, diverse with natural beauty. There is a location to suit any taste. From azure blue sea and sandy white beaches, to lush green winelands set in the mountains. Extensive nature reserves and game parks with abundant wildlife. The country boasts the sought after ‘Big Five’ and hundreds of bird species. As well as the ultimate whale watching and shark diving experiences. Many visitors flock to South African shores. They take advantage of the excellent climate and endless natural beauty… why not make this country their permanent home buying South African property Investments.
Favourable exchange rate
Are you earning pounds, dollars or euros? Then you are leap years ahead of locals when it comes to the affordability of property in South Africa. More and more foreigners are seeing South Africa as the ideal property investment location. Particularly in light of the favourable exchange rate. As well as the fact that the economy is the second strongest on the African continent. Even if you don’t earn foreign currency, you are bound to yield excellent returns.
Investment perk | no tax on property purchases
The good news is that there is no VAT payable on property purchases in South Africa. Yet, the seller is generally liable for agent’s fees that incur a percentage of VAT. There is also no stamp duty on property purchases in this country. This means that buyers are sure to enjoy the added benefits. Another drawcard as a prime investment location? There is that no inheritance tax is on property. All the more reason for buying South African property Investments.
Tax breaks on property development
Real estate developers have tax breaks of up to 20%. Another 20% tax break on rental is available for renovation projects. Commercial property market in South Africa is currently outperforming markets in many Western countries. Even with the global economy experiencing difficulties. Commercial property development market in South Africa is booming. All due to, buying South African property Investments.
High investment growth potential
Due to the shortage of housing, the government’s has a high priority to reduce this problem. This means that the country has a high growth potential. The growth also stimulates the development of a strong middle class. This tendansy provides an increase in the demand for homes. Figures in the housing market of the Western Cape, is showing a steady growth of 13.9%. Other metropolitan areas are growing at an annual rate of 15.6%. As we all know, a steady increas translates, into high returns on a long term investment basis.
The information in this article is by courtesy of: www.propertyshowrooms.com