July 19, 2010
South Africa was almost a virgin ground for investments as we know them until 1990. After that almost epic date, the government had continuously tried to attract foreign investors and had released advantageous policies for property investors in South Africa. The country is a strong touristic attraction being one of the safest in Africa and has a good infrastructure, which continues to grow. Until 2004, the real estate market was growing exponentially and it still is even if it slowed down a little because of the higher interest rates. This year property investment has a big pull again as the World Cup has attracted a lot of eyes and other types of investment.
There are other advantages also: the low exchange rate between the Rand and other world currencies, steady growth of the house market (about 15% a year), a low offer of housing, a tax break of about 20% on rental for five years, other taxation breaks and the fact that the country seems to become safer, although the white people are now a little “on the run”. All these have made private equity funds and venture capital funds to break their usual rule, which said that they would not invest in far away countries and push some money around in this exotic place. The place is not that far as there are four major airports that have frequent connections to cities all around the world and especially Europe.
Investors have rushed to buy property in places like Muizenberg or the Western Cape where the return on investments are just amazing. Moreover, despite the fact that about nine languages are official in South Africa, English is used everywhere making it easy for foreign investors.
If you are looking for someone to invest in property in South Africa, you have a lot of advantages to present and get them interested.
Click here to find foreign investors who are willing to invest in South Africa.