South African Property Market
Africa property market – South Africa
South Africa has seen its share of ups and downs, however, for the past several years the South Africa property market has seen more prosperity than anything else. This sunny outlook has been, in large part, influenced by the favorable tax incentives that the South African government has instituted in a big push to revitalize the real estate markets in sixteen South African cities including such troubled spots as Johannesburg.The South African property market has seen tremendous growth in the coastal regions including places such as Cape Town where plush golf courses line the shores. However, the cities have been where property values have stagnated and struggled due to a number of factors. However, with the new tax incentives places such as Johannesburg have seen prices of real estate in the inner city triple with more increases expected ahead of the 2010 Soccer World Cup which is to be held in South Africa. Although the tripling of prices in places like Johannesburg is significant, the inner cities remain among the more affordable real estate markets in South Africa. The suburbs and the coastal regions are out-priced for ordinary folks and even the investor or second home market seems to be saturated. In fact, after speculators and second home owners turned a tidy profit with the recovery of the Rand, some investors are now wary of further investments in South African property believing that most of the profits have already been made. Other analysts, however, are still optimistic about the prospects of the South African real estate sector. South Africa is one of the few places in the African continent that offers such a spectacular and diverse landscape. It is the only place where travelers and tourists can experience a genuine African safari, play a around of gold at a unique world-class facility and delight their palates with the smooth vintages produced in South Africa’s wine country. Those who enjoy snorkeling can dive off the coast while sun-worshippers will certainly thrill to the fabulous weather. The South Africa property market is simply profiting from the splendors that its natural landscape and ideal placement offer. The real estate sector continues to be robust despite a predicted worldwide softening of the property markets. As long as the South African government continues to support the revitalization of its cities then the short to mid-term prospects for the South African property market will be very good.

Courtesy of http://www.investorsprovident.com

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The reason for this is simple. Those who wanted to get on the property market (i.e. first time buyers) are unable to do so and remain in their rental properties until they can buy. This creates fewer properties on the rental market available and in its own way is creating a shortage which pushes rent up.

There are some exceptions to this. For example, the Docklands, which for many years have been saturated with rental properties. This is because docklands is having its worst sales and lettings in many many years. The reason for this is that the owner occupier v tenants ratio is 25% to 75%.

In other areas such as Isling ton and West London, the lettings market is booming and tenants have been known to literally get into fisticuffs with each competing tenant fighting for the properties.

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It is of our opinion that investment is good at the moment. This is because if you have the funds, you can pick up a property and that the actual yield has risen not due to the cost of the properties, but because rents have actually gone up!!

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According to a leading web based property blog aboutproperty.co.uk the leading cause was the mortage rate increases in the private rented sector where average rents rose four per cent in the first quarter of 2008, new figures from buy-to-let specialist Paragon show.

Over the last six months rents rose 12 per cent to an annual figure of £12,041.

The rising rents put further pressure on first-time buyers locked out of the mortgage market by the credit crunch until they can raise sizable deposits.

A third of landlords now report tenant demand is expanding rapidly – the highest level in nearly four years – as first-time buyers delay stepping onto the property ladder.

Some 58 per cent of landlords said demand was stable and strong.

Rising rents have masked the effects of falling house prices for landlords – with yields remaining stable at 6.3 per cent for the third consecutive month.

What does this mean for you? As we have the means because we have seasoned buy-to-let professionals (0207 740 1770 ) who can advise you on your investment portfolio.

To find out please call one of our executive consultants on 0207 740 1770 to see you on how you maximise your profit by continuing your investment curve

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Average property prices are still reasonably low, but are sure to rise – making quick action necessary.

With the latest interest rate rise,the South African reserve bank has taken an opposite tack to the one taken by the Bank
of England’s monetary policy committee. By increasing the interest rate to rates not seen for many years in an attempt to hold back the oil
induced inflation, South Africa’s Tito Mboweni is showing the steadfast commitment to a stable and low inflation based economy.

The South African market, although affected by the international US inspired market slump has been well prepared with their introduction of the FICA financial credit act almost a year ago. This had the immediate effect of cooling of the overheated South African economy and acted as a buffer so the US slump did not have as an immediate an effect as it did in the UK, the US and EU.

The locals might not think so but for investors this has a two fold benefit, lower house prices and better long term investment potential when the FIFA world cup comes around and by to let schemes really kick on for the short term haul.

Speak to ChaseDevonshire today about your profit potential in the international acquisitions market, we can help you to acquire some real gems.

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Those who sold property in the Iberian nation between March 2004 and December 2006 could be in line for a share of a £37 million rebate, after an error in the country’s tax code was discovered.

However, under European Community Treaty rules on discrimination the discrepancy in tax rates is illegal.
As such Brits were charged an additional £37 million, around £11,000 per sale – to which they are now entitled a rebate.
“This tax trap is thought to have affected hundreds of thousands of people across Europe and in the UK,” said Spanish lawyer Emilio Alvarez.[1]

If you think this might have happened to you between March 2004 and December 2006  then give us a call or email we have the right expertise to help you with your international property requirements.

[1] This article is courtesy of the well respected industry web site about property

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