There are a number of reasons why South Africa is such a sought after destination: Could it be because of the beautiful and diverse landscape or the fact that it is the economic hub of Africa. It might even be a combination of the two, but one thing is for sure – it is definitely not hard to come up with 10 reasons to invest in this beautiful country.
1. Property investment offers relative stability
This means that you are more likely to get return on your investment in South Africa than, let say, the stock market for instance. It is also the perfect place to balance your investment portfolio by choosing a stable option.
2. Property cycles in South Africa
The dream of having ones own home is something you will find in every country. In South Africa young people strive to move out of their flats or apartments into homes as they become more financially secure. This means that there will always be a high demand for property in South Africa and astute investors benefits throughout the cycle as their investment is bound to have a high return.
3. Property shortage in South Africa
The Rainbow Nation’s trouble past has left the country with a shortage of good housing. As the government makes it a high priority to solve the problem, the country will experience a long-term structural growth potential as more and more people migrate to better neighbourhoods.
4. High property rentals rate
A series of interest rate hikes has urge people to rent as oppose to buying. The rent-to-buy market has become a popular investment throughout the years because one can pay off a good part of your bond with the rental income you receive.
5. Stable vs unstable world
The looming global recession has urged some investors to look at a wider spectrum of property and a lot of them has chosen South Africa. The country is also one of the least affected places when it comes to extremist activities.
6. Favourable exchange rate
If you are earning dollars, pounds or euros then buying property in South Africa would be a lot cheaper than for the local citizens and the strong economy will ensure that you earn great long-term returns.
7. Top holiday destination
South Africa is a prime holiday destinations – from the soulful city of Cape Town to the Kruger National Park and everything in between. I can’t see why anyone wouldn’t want to make this home!
8. High growth potential
Property figures in South Africa is showing steady growth and that translate into high returns on long-term investments.
9. Tax breaks on property development
Real estate developers are given tax breaks of up to 20% while another 20% tax break on rental is available for renovation projects.
10. No tax on property purchases
There is no VAT payable on property purchases in South Africa. The seller is however responsible for agent’s fees that include a percentage of VAT. There is also not stamp duty on purchased property and no inheritance tax.