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Monday February 19th 2018

The Best Property Investments in South Africa

Notwithstanding the current global economic woes, South Africa remains crucially and positively positioned in the property investment arena and, according to a range of real estate experts, prime property remains undervalued.

With the recent democratic elections, deemed free and fair by the international community, as well as the hosting of the 2010 FIFA World Cup, South Africa presents both stability and a government that is committed to infrastructure spending, which should ensure an increase in property prices.

Expected property boom
Couple that with the expected boom in South Africa property prices in the next couple of years and it is easy to see why more and more international investors are purchasing select property at reasonable prices.

There are a range of astute property investments, for both local and international investors, that are expected to increase exponentially in value over time. These include

  1. Cape wine estates,
  2. bushveld game farms,
  3. Garden Route guest houses and villas, and
  4. the much vaunted Atlantic Seaboard real estate in Cape Town

Dedicated prime property companies are at hand to assist investors in their quest for the perfect opportunity, and when one considers that a 129ha wine and olive guest farm, resplendent with three dams and spring water from the surrounding mountains is up for grabs for a paltry €938 000 (R10.6 m), then it’s not too difficult to see why real estate gurus are flocking to the southern tip of Africa.

Potential to earn significant income

All of these investments have the potential to earn significant income, thereby easing the fiscal load on the buyer. Cape wine exports, for instance, have increased markedly since the economic meltdown, bucking the global trend primarily because of rand weakness.

Game farms have a number of ways of filling the coffers. Apart from traditional tourism, trophy hunting, game auctions, the sale of venison and wilderness events bring in significant amounts of money for the smart investor.

The Garden Route remains one of the most visited areas by international tourists and top flight self catering and B&B accommodation will always be sought after and a lucrative source of income.

Atlantic Seaboard – the cherry on the top
The cherry on the top as far as returns go, however, has to be Atlantic Seaboard property, comprising

  1. Clifton property
  2. Camps Bay property
  3. Hout Bay property
  4. Llandudno property Cape Town

All of these prime areas of Cape Town have panoramic views of both mountain and sea, easy access to some of the city’s foremost beaches and are close to the central business district and the entertainment strips of Camps Bay and Green Point.

All offer a range of accommodation, from upmarket luxury villas to penthouse apartments that command high daily or weekly rentals. Add that to the expected recovery of the property market in the not-so-distant future and the intelligent investor will be sitting on a veritable gold mine.

Consistent appreciation in value
Statistics reveal that the appreciation of Atlantic Seaboard property has continued unabated since South Africa’s emancipation in 1994, where the average price per unit was R667 888. In 1997 it had risen to R1 238 316 and in the last 3 months of 2008, 100 properties were sold at an average of close to R4m!

Cape Waterfront Estates specializes in the sale of exclusive properties on the Cape coastline, focusing on Hout Bay, Llandudno, Camps Bay, Bantry Bay, Bakoven and Clifton properties in Cape Town.

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