Reasons to Invest in the South African Property Market

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Reasons to Invest in the South African Property Market

South Africa is the economic motor of the African continent and has what is arguably one of the most beautiful and diversified natural landscapes in the world, making it an attractive target for property investors.

But what are the specific reasons why the South African property market is such an attractive target for investors? Why is it such a great alternative to stock market investments?

Stability
The property market offers a greater stability than the stock market. Although the profits may not be as high, the risks are far lower. The chances of losing a large portion of your capital are much less with property.

The South African property market in particular has a relatively balanced global position and is less exposed to extremist actions than other regions in the world.

Property Shortages
South Africa has a shortage of good housing, but the government has made addressing this problem a high priority. In time, this will lead to long term growth potential in the sector. Migration is also set to increase, adding to the demand for good quality housing.

Property Cycles
Most people dream of owning their own home and begin by purchasing a small house or apartment. As families grow, they move to larger houses until retirement approaches, when they begin to look at selling up and downsizing to a smaller property again. This cycle leads to an ever present demand for all types of housing, providing opportunities and benefits to the property investor.

Top Holiday Destination
South Africa is a top global holiday destination, with travellers lured by the excellent climate, exotic wildlife and exciting landscapes. Holidaymakers need accommodation for their visits and after, these visitors make the country their new permanent homes after sampling the delights of the country.

The tourism rental and buying market offer opportunities to property investors.

Strong Economy
South Africa has a relatively strong economy, the second strongest on the continent, even as a local, you can gain advantages from this strength to obtain excellent long term returns from property investments.

High Growth Potential
In addition to the government commitment to addressing the housing shortage in South Africa, the country has a high middle class development, driving an increasing demand for homes. The housing market across the country shows steady growth rates of up to 15%, particularly in metropolitan areas, which translates into excellent returns for potential property investors.

 

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