Interesting Facts about Investing in Real Estate in South Africa

 

Why Buy Real Estate in South Africa?

 

There are many reasons to buy real estate in South Africa. In this article, we'll discuss Investments, Tax incentives, Diversity, and Natural beauty. If you haven't yet decided where to invest, now is the time to begin. Listed below are some of the best reasons to invest in real estate in South Africa. But which one is best for you? Read on to find out which factors make South Africa the best place to invest in real estate. 

Orion Group has a few retail, industrial, office and hospitality real estate option to consider. Check out Orion's portfolio here.

 

Investments

One of the reasons why you should invest in South African real estate is the country's high growth potential. With an increasing middle class, the housing market is steadily growing at a rate of 13.9% and other metropolitan areas are registering steady growth of 15.6%. This steady growth translates into great returns in the long run. South African real estate also offers a good return on investment. Therefore, it is a great choice for both foreigners and locals.

 

Tax incentives

If you want to purchase real estate in South Africa, you can benefit from a range of government-imposed tax incentives. These incentives allow people to invest in properties that will generate revenue and potentially offset their national debt. However, there are some important things to keep in mind before buying property. Firstly, you must own at least five units in South Africa. A unit is defined as a self-contained apartment or building that is primarily used for residential purposes. A property that is used for trade purposes is not considered a residential unit.

 

Diversity

There are several ways to buy real estate in South Africa, but registering with a real estate agent is still a popular option. While there are several national estate agencies, you can also look up smaller regional ones using the yellow pages and white pages. Another option to buy real estate in South Africa is to build your own house. While this option is somewhat controversial, there are no government incentives for this method of buying real estate in South Africa. Nonetheless, land and existing properties are relatively affordable.

 

Infrastructure

The country's rapid growth has been accompanied by significant investments in public infrastructure, including roads and power. Infrastructure is an essential part of any metropolis, and in South Africa, this is no different. There are now more than 60 trains running between Johannesburg and Durban each day, up from just 20 a decade ago. Increased investment has accompanied the operational revival. In the next three years, more than R50 billion will be spent on new rolling stock and mineral and coal transport systems.

 

Price stability

In the context of the South African housing market, price stability is an important issue, particularly for the affluent. Inflation is a common factor that affects house prices, but there are also other factors that influence house prices. A new paper investigates the long-run impact of inflation on homeowner equity in South Africa. The research uses quarterly house price data on the consumer price index, excluding housing costs, to examine the relationship between house prices and inflation. Findings show that there is a high degree of cointegration between house prices and the consumer price index in South Africa.