Property in South Africa has become so popular that buyers are not settling for just one property. The South African property market is experiencing a five year boom and it has seen a significant increase in first time buyers.
Recent reports and observations of the South African real estate market indicate that many South Africans are buying property for investment. The trend appears to show that home buyers are accumulating second, third and fourth properties in the region. Standard Bank figures in October 2006 show that nearly to 12% of all residential property sales recorded at the Deeds Office are going to buyers who already own at least one property. Standard Bank senior economist Elna Moolman states that investor participation in the housing market could be even higher if one strips out properties bought by the same people but registered in the name of different entities, such as companies or trusts’
How to invest a million Rand
Finance24.com, South Africa’s largest weekly finance publication asked the top property players in South Africa where they'd put their money in 2007. Dr Andrew Golding - CE of the Pam Golding Property group suggests not putting all your eggs in one basket. Golding lives in Constantia, Cape Town, and owns a beachfront holiday home in Kommetjie, 30 minutes' drive from his primary home. He's also invested in a rental apartment in central London and has a long-term tenant in place. When asked what he’d do with R1m he suggested that he would invest in top-end fractional ownership properties for their "excellent" capital growth prospects. Golding says in SA he'd buy into a fractional property at Arabella Golf Estate near Hermanus and internationally he'd invest in central London in a fractional development.
Moneycorp market reports on South African Rand
TTT Moneycorp foreign currency specialists have a significant influence throughout the UK foreign exchange industry. The company report that the strength of the South African economy was highlighted by another good performance in retail sales. At 8.8 per cent, year on year growth to October was not as spectacular as the 13.5 per cent in the year to September but was still sufficiently strong to raise the question of whether the extra two percentage points on interest rates have done enough to curb consumers' enthusiasm. With inflation expected to continue rising through the first half of next year the question now is whether the Reserve Bank will take rates any higher in February.
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