Real Estate Investing In South Africa – Where To Start

Property funds offer viable alternatives for those looking to invest in real estate without buying. This way, there is no need to find ways to maintain the property or to have to deal with dodgy tenants. Real estate investing in South Africa offers investors some great returns. As a long-term investment, it’s important that investors don’t rush into the process. Trends shaping real estate investing in South Africa: Buy-to-let properties are quite profitable.

Thera has been increased demand for one-bedroom townhouses for rent. With the tough economic conditions, more affordable homes are in greater demand. There has also been more demand for sectional title properties. More development is being driven into inner city property. South African buyers are likely to be more attracted to sustainable homes. With higher electricity costs and a greater emphasis on green living these homes are likely to garner more interest. Areas with good internet connectivity are important. This means that areas with fibre connectivity are likely to gain more attention from individuals interested in real estate investing in South Africa. Complexes and Estates remain popular due to safety concerns and the security that they offer residents. Prices have risen fast in sought-after coastal regions. For better returns, real estate investing should be considered over a medium to long term. This typically means five to 10 of 15 years. What to keep in mind when considering real estate investing in South Africa:

• It’s key to start by setting a goal of building up a property portfolio.
• You need to diversify your portfolio, so invest in freehold and sectional title properties, along with small commercial units.
• Focus on income, which will enable you to buy elsewhere. Once you start earning income from the property, you can use it to buy even more property. Investing requires a persistent approach and you need to do the necessary research beforehand.