JD Property are now involved with property investments in South Africa & United Kingdom which offer all inclusive property solutions: a vehicle for property investors to streamline the process, reduce the challenges and facilitate effective property investment and development.
WHY INVEST IN SOUTH AFRICAN PROPERTY?
South Africa has the second strongest economy on the African continent. Below are some of the reasons that make South Africa a worthwhile investment area.
Unfortunately many people liken South Africa with its northern neighbour, Zimbabwe. However, unlike Zimbabwe, the South African government is outward looking and realises the great contribution foreign investors can make to the economy, taking proactive steps to encourage property purchasers to South Africa.
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.
WHY INVEST IN UNITED KINGDOM PROPERTY?
The UK market has consistently produced an attractive rate of return for investors. However although most professional people realise that they should invest in property to diversify their investment portfolio, they rarely have time to achieve this.
One of the interesting facts about the property market in the UK is the manner in which the buying process differs depending on whether you live in England, Wales or Scotland. The main difference is associated with the person who makes an offer for a particular property, and how this offer is received and acted upon. In England and Wales, a buyer would typically make their offer to an estate agent who has been retained on behalf of the vendor.
Rental Market
The market in rental properties is especially buoyant around major conurbations such as London, Manchester, Birmingham, Edinburgh and Glasgow. In these cities, many international business visitors are consistently in need of high quality homes for short-to-medium term lets.
Typically, these executives represent the computer, banking and financial services sectors, all of which rely on a transient population of senior managers to operate their businesses in and around Europe and the world. The standard of accommodation available for rent has improved in recent years, not just in the corporate market, but also in the provision of multi-occupational accommodation for students.
The United Kingdom is the most favoured inward investment location in Europe, attracting around 40 per cent of Japanese, US and Asian investment into the EU. The reasons for its popularity are many as it has a great deal to offer overseas clients such as fast and easy access to the EU single market, (the world's largest market with 380 million consumers), and an environment which allows businesses to prosper.