Lucrative Options For Investing In High Yielding Rental Property
Category Advice
Have you ever considered investing in the high yielding rental property market of South Africa? Well, this is one of the upcoming hotspots as far as the property sector is concerned. Experts and social commentators have been unanimous in their view that the newly initiated government plans are a healthy step in taking the country and its urban centres to new levels of investment, profit and overall development. New tax related incentives have been announced by the finance minister Trevor Manuel in his budget speech delivered in February. The aim is to suck in potential investors back to the cities and urban hubs.
There’s good news for rental property investors who are promised better returns on their investments. The new legislative initiatives seek to draw the business heads and realtors into the rental property investments segment of the market so that potential returns may be realized. First and foremost, they suggest that rental property is good business, owing to traveling tenants like workers and students who always have a high demand for these properties. Interested citizens and investors can even pout their money on rented properties. If you are planning to refurbish your property or are willing to set up new construction, you get a tax deduction.
These incentives have been acknowledged by the property sector, especially those who belong to the lower end market. Given the negative cycle that Johannesburg had been subject to initially, this is a measure that is seen as a positive step in clearing the path for better investments and opportunities. This is something that is also being agreed upon by property experts of property firms as they have opined that it will serve as a mode of better and greater investment to the urban areas which are fast falling to ruin.
The cities that are the chief focus are eThekwini, Ekurhuleni, Tshwane, Mafikeng, Polokwane, Buffalo City and Durban. There has even been a strong call to action made by the legislature, given the sorry state of some of the regions of the country which were suffering from lack of infrastructure and environmental decay. In order to make a success out of urban renewal, there has to be a scope for greater investment in terms of business to help the inner cities of the country regenerate. As an investor, if you are planning to pitch your money on the rental property market of South Africa, you need to focus on the security money that the tenant pays.
After the expiration of the lease of the investment property, the security money will be of use in case a unit needs repair. The property market deals with the pros and cons of the property equations that need to be sorted out before placing your money. Ensure the cash flow from your rental property by making arrangements accordingly. It is being expected that the application process will work according to the specifications of the legislation, the highlights of which include specially designated areas.
Author: IMAGINE Properties