Property for Investment in South Africa
South Africa offers outstanding property investment opportunities at excellent prices. Increasing numbers of foreign buyers are being drawn to it's sunny weather, stunning beauty, and modern infrastructure and facilities.
Over two million Brits are currently looking to buy abroad, and whilst many are looking at the traditional favorites such as Portugal, Florida and Spain, others are recognizing the benefits of emerging markets such as Croatia and South Africa where golf, skiing and sailing are acting as popular draws for potential buyers. More and more South Africans living and working in the UK and abroad are also are buying properties in South Africa with a view to returning home following positive media coverage of South Africa and the housing price boom.
South African property prices have seen remarkable growth in recent years, the best in the world according to The Economist's house price indices. It is particularly positive that this growth has been driven by domestic demand rather than foreign investment as it is more sustainable. South Africa is at an exciting stage of development, with confidence in the country running high both among citizens and in the international community - and SA property is seen as an excellent investment. Reasons for this include personal tax relief, lower property transfer duties, growth in household disposable income, low inflation and interest rates, strong domestic demand for housing, a rapidly growing middle class in previously disadvantaged communities, and continuing foreign demand. According to Mortgage SA, South Africa has one of the best deeds registration systems worldwide, with an exceptional degree of accuracy and of tenure being granted.
Since the start of 2005 South Africa has received a great deal of good press in the UK media. Holiday and homes abroad magazines have included extensive editorials on the property market in South Africa. There is a very positive sentiment that surrounds South Africa at the moment.
The latest Absa index of SA house prices reported strong growth, forecast to continue. South Africa's basic home loan rate is currently at 11%, the lowest since 1980, and is unlikely to rise dramatically over the next few years.
'Foreign buyers invest primarily as a result of lifestyle, climate, type and size of property and cost of living. But equally important is the interest rate environment, stability of exchange rates and consistent growth in property values. These are drawcards to foreign investors, and should also be seen as such by South Africans.'
Average house prices in South Africa's main centres, according to the Absa index, are as follows:
Cape Town - R699 275
Johannesburg - R635 123
Pretoria - R676 984
Bloemfontein - R494 449
Durban - R639 707
Port Elizabeth - R564 008
Population
South Africa has a population of 44.8 million people diversified into a wide variety of cultures, languages and religious beliefs.
Language
South Africa has 11 official languages with English being the most commonly spoken language in official and commercial public life.
Local time
GMT +1
Currency
South African rand
1 US Dollar = approximately 6.50 ZA Rand
1 GB Pound = approximately 11.40 ZA Rand
Government
South Africa is a constitutional democracy with a three-tier system of government and an independent judiciary.
Main cities
The legislative capital is Cape Town, the administrative capital is Pretoria, and the biggest city is Johannesburg.
Weather
A subtropical location, moderated by ocean on three sides of the country and the altitude of the interior plateau give rise to the warm temperate conditions so typical of South Africa and so popular with foreign visitors.
South Africa is famous for its sunshine. It's a relatively dry country, with an average annual rainfall of about 464mm. While the Western Cape gets most of its rainfall in winter, the rest of the country is generally a summer-rainfall region.
At the same time, temperatures in South Africa tend to be lower than in other countries at similar latitutes - such as Australia - due mainly to greater elevation above sea level.
Economy
South Africa has a world-class, modern infrastructure including a sophisticated transport system, low-cost and widely available energy, and sophisticated telecommunications facilities.
The economy displays a sophisticated financial and physical infrastructure, with one of the top 10 stock exchanges in the world.
The travel and tourism industry is a major contributor to the economy, accounting for 8.2% of GDP. Tourism is also South Africas third-largest foreign exchange earner and job creator.
South Africa is the world's biggest producer of gold and platinum and a leading producer of base metals and coal. It also has the fourth largest diamond industry in the world.
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