Investing in property within South Africa is still a sound option for serious investors. The following points highlight the reasons why you should invest in property and in particular South African property.
Property Is a Relatively Stable Investment Option
Although stock market related investments can at times bring forth very big returns, it is also very unstable and there is the possibility that you can lose a portion of your capital. It is advisable that you balance your investment portfolio with a relatively stable option such as what is available in the South African property market.
Shortage of Property in South Africa
South Africa’s political past has left the country with a shortage of good housing and the South African government has made fixing the housing problem a high priority. The housing policy of the South African government will lead to a long term structural growth potential within the South African property market with migration to better neighborhoods and better property set to continue for a long time.
Property Cycles in South Africa
Most people long to have their own property and the sense of security and comfort of having a growing asset that goes with it. As young people leave school and start to work they enter the property cycle through renting a flat, buying a flat, selling a flat and then buying a small house or townhouse. As they become more financially secure they will invest in their dream property which they are likely to sell when they go in retirement in order to move into a smaller house or townhouse. A South African property investor benefits through out the property cycle due the ever present demand for property in South Africa.
South African Property Market is Relatively Stable in an Unstable World
Globally many countries have become targets of extremists with terrorist attacks having negative effects on the economies and stock markets of the countries affected. South Africa has a relatively balanced position within global opinion and is one of the countries least effected by extremist activities. This position of balance is causing a lot of investors abroad to start looking at South Africa for property investment opportunities.
Rental Property in South Africa
Obtain a South African home loan and invest in property which you then rent out. The rental from the tenant will help you pay off your bond and the value of the property will keep on increasing.