Where to invest in property in South Africa
Property investment in South Africa is an excellent long-term investment strategy and one of the best ways to start off your property portfolio. Investment properties are purchased with the intention of earning a return through the rental of the property, the future resale of the property or both.
Here we will take you through one of the most important considerations when buying property in South Africa – location. A great location can mean different things to different people, for example, someone who loves the city would be willing to pay more to live in Sandton, Johannesburg whereas someone who loves nature would easily consider Noordhoek, Western Cape a better location.
Objective factors of a ‘good location’ include:
Commercial development plans
Lot location (the actual position of the land)
Where to buy property in the Western Cape?
The Western Cape is home to a number of location gems when it comes to property investment. It has a strong housing market and average house price growth is on a positive trend.
Simon’s Town is known for its relaxed lifestyle and beautiful views. The area is currently undergoing commercial development and interest in the area continues to be on the rise.
Property in Simon’s Town is popular with buyers looking to invest away from the city whilst still enjoying the convenient amenities this quaint seaside village has to offer.
Property in Noordhoek has the best from mother nature, from majestic mountain views to lush greenery and striking ocean views. According to Property 24, property in Noordhoek has shown excellent value growth with the average sale price moving from R2.8 million in 2015 to R4.75 million in 2018.
Property value in the City Bowl has remained stable over the past decade and is a popular choice for both foreign and local investors. The contained suburbs are positioned well, boasting centrality and proximity to schools and transport.
Where to buy property in Gauteng?
Commonly referred to as South Africa’s ‘economic powerhouse’, Gauteng is host to a number of fantastic property investment areas and is a cosmopolitan-rich region boasting residents from all walks of life.
Sandton and surrounding areas are perfect for people travelling within the area for business purposes as a large number of corporate firms base their offices here. Bryanston and Lonehill, situated close to the main Sandton city area are popular residential suburbs where the property price range is broad enough to leave you spoilt for choice, from apartments and townhouses to freestanding houses.
Randburg’s popularity has been increasing due to the great convenience it provides residents. It has a number of shopping centres, healthcare facilities and offers a variety of attractions such as the Lion Park and Monte Casino.
Where to buy property in KwaZulu-Natal?
The Zulu Kingdom (KwaZulu- Natal) is famed for its beautiful beaches, cultural diversity and warm tropical weather. The housing market remains strong in KZN and is especially popular with people looking to invest in holiday-suitable property.
Well-known for its year-long holiday vibe, Umhlanga is an affluent residential and commercial area frequented by both local and foreign visitors. While frontline properties (those situated close to the beach) in Umhlanga tend to hold high values and impressive value growth they are often difficult to attain for regular buyers. Consider areas slightly further away from the beach, such as Umhlanga Ridge or Prestondale.
Another sought-after town in Kwazulu-Natal is Ballito which is situated about 40 kilometres north of Durban. Comprising of a number of secure, lifestyle estates the area is rich in amenities and tends to be a popular holiday choice for tourists and locals – perfect for a buy-to-let investment.
Once you’ve found a property in a desirable location, calculate your home loan affordability on the SA Home Loans website or contact the SA Home Loans team who will help you through the process of applying for a home loan.
Source: SA Home Loans
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