Press Release Summary = Buy-to-let investors considering extending their global portfolio may be interested to read that one expert has described South Africa\'s property market as \"booming\".
Press Release Body = Buy-to-let investors considering extending their global portfolio may be interested to read that one expert has described South Africa\'s property market as \"booming\".
The country is set to hold the 2010 World Cup - a fact that has led one analyst to comment on how the property market will perform in the short and medium-term. Emma Cleghorn, a partner at SA Options, said today that the marketplace is currently experiencing rising levels of growth and expects this figure to hit 15 per cent between now and the end of 2008, which would be a near 100 per cent rise on current levels.
Although Ms Cleghorn did acknowledge that there has been some negative media coverage on how the tournament could affect the buoyancy of South Africa\'s property, she also states that the market will remain stable, adding that despite the fact it has experienced some fluctuation, it \"is definitely on the rise again\".
For investors who are considering South Africa as a viable option, the partner has also provided information that could help those looking to build their portfolio get the most of a South African buy-to-let.
She states that short-term investors are \"making more money\" on low cost housing - explaining that many people \"are buying two bedroom duplexes or town houses and keeping them for two years and then selling them on\".
For buy-to-let investors looking to take advantage of the holiday let market, South Africa\'s official tourism website highlights a range of areas that visitors could be keen to visit.
These include provinces such as Western Cape - which is described as one of South Africa\'s \"premier tourist attractions\" and Mpumalanga in the north-east of the country which the tourist website claims is popular with both international and local tourists.
On a wider scale, it was announced at the World Economic Forum last year in Cape Town that over $100 million was to be pumped into the newly formed Investment Climate Facility (ICF) in order to make Africa more attractive option to potential investors.
Commenting on the continent as a possible opportunity, Omari Issa, the chief executive of the ICF, told Voice of America: \"You look at Africa. It\'s full of resources, full of potential. The issue really has to do with just releasing that potential, making sure that potential is appreciated and is channelled correctly.\"
However, Ms Cleghorn does warn those who are tempted by the South African market against using taking out a mortgage. Drawing attention the current interest rate of 12.5 per cent, the director argues that \"if you are planning on paying cash for the property its not really that much of an issue but if you are planning on mortgaging the property and renting it out, our rental income you are looking at about 0.5 per cent of the value of the property so you would be lucky if you are covering half of what your mortgage repayments are\".
The partner adds that buying off plan could be the best option.
2022
