Why Invest In South Africa Property?

South Africa has the second strongest economy on the African continent. Apart from South Africa being a marvellous country in terms of standard of living and climate, today's overseas property investors will find many political and economic advantages through investing in the country. Commercial property has achieved substantial growth in past years and this trend looks set to continue with the government incentives now in place.

In certain select areas, many opportunities exist for lucrative returns from South African property. The key factors that make South Africa a sound investment region are listed below:

• South Africa is a country of sunshine and beautiful beaches, among many other attractions, and the government is committed to building a strong tourist industry.
• South Africa's political past has left a shortage of property and this factor has created long-term growth potential in the property market.
• Foreigners are actively encouraged to invest in South African property and there are no restrictions on ownership.
• A relatively stable democracy, South Africa is keen to encourage all types of investment.
• A growing economy focussed on developing a strong middle class provides an increasing demand for homes.
• Substantial taxation breaks of up to 20% are on offer for real estate developers.
• The 2010 World Cup in South Africa is fuelling a demand for rental properties.
• A 20% tax break on rental for five years is available for renovation projects.
• The housing property market is showing steady growth of about 13.9% in the Western Cape and 15.6 % in metropolitan areas.
• The commercial property market is out performing markets in many Western countries.
• The favourable exchange rate with major world currencies makes properties very affordable. (Typically in April 2007, 1 GBP = 14.14 ZAR and 1 EUR = 9.5 ZAR)
• No inheritance tax adds to the country's attraction as an investment location.
• A strongly regulated property purchase system creates investor confidence in the market.
• All transactions and documentation are written in English with a transparent transfer system.
• No stamp duty is an added benefit for property purchasers in South Africa.
• No VAT is incurred for property purchase, although sellers will pay agents' fees that are subject to VAT.