| Is this a good time to buy property in South Africa? | | | | Recently interest rates started dropping and further |
| Emphatically YES -- especially if you are an overseas | | | | reductions are expected. Experts are divided about |
| buyer who benefits from the relative weakness of | | | | when the property market will recover but are in |
| the South African rand against major currencies. | | | | agreement that in the medium to long term South |
| South Africa, with its beautiful scenery, wonderful | | | | African residential, commercial and agricultural |
| climate and appealing cities and towns offers | | | | property will continue to be a sound investment. |
| property buyers a wide selection of very desirable | | | | Some observers have cited political uncertainty as a |
| properties at prices that are a bargain compared with | | | | potential threat to the long term sustainability of the |
| equivalent properties in many parts of the developed | | | | South African property market. "What if South Africa |
| world. | | | | adopted Zimbabwe-style land seizure policies?" they |
| According to South African banks, average house | | | | ask. But there is no evidence to support such fears. |
| prices have declined by from 1,5% to 7% over the | | | | On the contrary, South Africa is among the top 25% |
| past year, making property prices even keener for | | | | of countries globally who boast a positive relationship |
| buyers with Euros, dollars or pounds. | | | | between the protection of property rights and the |
| Another bonus for foreign purchasers is that South | | | | country's well-being, according to the 2009 |
| African property ownership laws do not put any | | | | International Property Rights Index. The Index looks |
| significant obstacles in the way of non-residents who | | | | at the positive effects of a country's legal and |
| wish to buy real estate in South Africa. | | | | political environment, and recognition and |
| So, what is the catch? Are there sinister reasons for | | | | enforcement of physical and intellectual property |
| the relatively low property prices? Not at all. South | | | | rights. |
| Africa is a developing country and experts predict | | | | A savvy international businessman from Europe who |
| that the property market will grow for years to | | | | bought a game farm in South Africa last year, |
| come as a result of the strong demand for housing | | | | weighed up the attractive price of the land and a |
| by an increasing number of households and a rapidly | | | | range of risk scenarios before signing on the dotted |
| growing middle class. The current market dip follows | | | | line. He concluded that as an investment opportunity |
| the introduction of laws that severely tightened bank | | | | South African property offered one of the world's |
| lending, substantial interest hikes introduced to | | | | best tradeoffs between risk and price. |
| counter inflation, and the global credit crunch. | | | | |