As a foreign buyer you will most certainly appreciate the versatility of the property market in South Africa. There are a range of options available such as town house developments, secure apartment blocks and lifestyle centres, free-standing homes, vacant land and a number of properties that have been converted into beautiful living spaces.
Buying property in South Africa has become increasingly popular for a multitude of reasons; one of the many reasons is the fact that South Africa has been a major tourist destination for many years. Due to this fact, South Africa now occupies one of the chief positions as a holiday destination, ultimately boosting the real estate industry.
Furthermore, a significant point that warrants mentioning and is a pivotal factor in terms of buying property in South Africa is that the affordability of the real estate options is far superior to that of most other countries.
Property wise, South Africa is appealing to investors due to its reasonable buy-in prices. Despite the fact that property prices do vary to a large extent, by international standards they are still considerably low.
For instance, the prices in Cape Town can be significantly higher than many other locations, however, the prices decrease substantially as one moves away from larger urban areas. Strand for instance, located approximately an hour and half from Cape Town, is an up and coming holiday destination where a three-bedroom home cost less than a one-bedroom flat in Cape Town.
In Durban, Berea is a suburb close to the city which is significantly higher in price than other locations, however the suburb of Glenwood is a little more economical, yet still very nice, and just as close to the city.
In Johannesburg, properties for sale in the south are generally cheaper than properties in the north of Johannesburg where one finds the upmarket suburb of Sandton for instance.
The prices of property in South Africa are so diverse, property investment is plausible for individuals with differing budgets. Buyers who have a variety of investment strategies in mind find this extremely appealing.
The most common property investment strategy is when you buy a property and rent it out with the intention of making capital gains or income returns through renovations. The idea is to make money by adding value to the property through improvements.
There is also a short-term fast-cash property investment strategy where one buys a property and then sells it again before title is transferred. Although, this can be risky in the current economic climate which has seen a slow down in property sales.
Wraps (vendor financing) is a property investment strategy where you buy a property and then sell it on ‘vendor’s terms’ and receive regular payments rather than a lump sum settlement payout.
Exchange Rates and Justly Low Cost of Living
South African exchange rates are certainly favourable to investors from other countries. For other international investment hotspots the cost of living may be lower than that of South Africa, however, overall the cost of living in South Africa is still less than the majority of large European cities.
If you combine the cost of living with the current exchange rates, it becomes apparent why so many people are drawn to South Africa.
Proven Property Potential
Apart from the amazing lifestyle and climate South Africa has to offer, there are a multitude of advantages property investors can benefit from.
Numerous areas in South Africa will provide opportunities for lucrative investment for savvy investors. Commercial projects and present regeneration projects in places such as Woodstock and Muizenberg in the Western Cape are offering exceptional returns.