The High Yielding Rental Property Market Of South Africa Is A Blessing For Investors
Category Advice
If you thought about investing in the property market of South Africa, there could be no better time than now. We’re saying this because government bodies have now taken a step forward, following years of neglect and dilapidation of property especially in the urban city hubs. The focus is now chiefly on developing the central part of the cities where the action is. For years, the city centres had been a den of crime and urban rot, and this is the time to make the change happen. With the local people as well as realty investors looking ahead to see the change, sociologists and property economists have also come together to agree that this is a change for the good.
Pauline Larson believes that the new incentives that have been taken up by the government, such as tax deductions of 20% for homeowners and builders who want to renovate their houses, and 20% deductions for owners who want to erect new residential or commercial establishments, are much in the way of progress and positive change. There is also good news for the latter category of homeowners who are constructing new properties, because other than the 20% write off, they are also entitled to a deduction of 5% each year for 16 years. Hence, the hoopla is all about new initiatives being taken and positive moves being made.
Property dealers who were so long sceptical about investing in the inner reaches of the city are now coming to the forefront to make worthwhile property investments. The inner regions of the city have been through a decade long negative cycle. The legislative measures seek to do away with the years long underdevelopment by making amendments in the property segment. What is expected is that it will be more cost effective to invest in the urban regions of cities like Johannesburg, Buffalo City and Durban and with the steady growth potential investors are surely to be wooed back.
What is expected of the legislation is that the newly introduced initiatives will eliminate a lot of risk factors that are associated with carrying out business in the inner parts of the city. The national treasury has earmarked the areas that require immediate attention and work will progress accordingly. A unique investment pocket is the rental property market that elucidates good yields. Hence, the time is ripe for property developers to identify the niche areas and invest accordingly.
Author: IMAGINE Properties