Rental Property Is The New Mantra For Investment In South Africa
Category Advice
Rental property is a unique niche to invest in. It is approved of by all those who have lived in rented properties. In fact, investing in the rental property market can be high yielding since it is a potential source of multiplying your income. Investing in the low niche market of South Africa is a long term plan and is potentially strong in generating an impressive rate of annual return, which is around 9% or 10% a year. This can be compared to the returns obtained by investing in the stock market, although in this method, the risks involved are considerably lower.
If there is a profit made from the rental property, the capital gains tax is about 30% of your investment which is higher than your employment income. The new measures of tax relief that have been introduced by the government seek to develop and expand the horizons of the investors, especially in the lower rungs of the country’s property market. Property analysts have assumed that after the budget directives have been put into operation post February, the city centres will continue to boom as the urban concrete map will change. Investment methods have been made easy, and as far as the rental property market is concerned, it is an effective way of clearing the urban rot.
In case you are not sure about investing in the inner precincts of the city, this is the time to trigger your worries away. The state has initiated a new set of rules and laws that answer the growing needs of the investors who have so long focused their attention on the posh northern centres of the suburban regions. Talking about Johannesburg, property economists have predicted a rising trend among the investors to look into the hitherto untapped regions that belong characteristically to the lower investment property market niche. Investing in rental property helps groups of people such as workers and college students who tend to relocate.
While certain investors might prefer a month to month lease, others might go for long term agreements. Johannesburg had been a case in point, especially after the decade long ‘negative cycle’ of low returns on property investments. The government has initiated programs for turning the market, by making it more cost effective for making investments in. It has also been predicted that the city will grow constructively if the investors can be wooed back. The incentives also look at the lower target sections of the economy.
While the response is still awaited, experts and property geeks have racked their brains about the consequences of the property boom. The inner confines of the largest city of the country are being out forth to the lure of the investors. While the state initiated incentives may not be the answer to the dirt and crime of the city, they are definitely compensations for the various risks that are associated with the idea of operating business inside the city. Thanks to the directives, South African property is targeted to open the doors of opportunity to aspiring investors.
Author: IMAGINE Properties