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Investing in South African PropertiesAbout South Africa At the tip of Africa lies “The place where two oceans meet': Cape Point where the lighthouse stands like a sentinel on the rocks and is lashed by strong winds and seas. Spreading northwards from this dramatic point, the hinterland of South Africa extends over an area of more than 1.2 million square metres bordered by 2,500 miles of coastline. On the eastern coast the warm current of the Indian Ocean sweeps down from the Tropics, bringing abundant rain and lush semi-tropical vegetation. Meanwhile to the west, the icy Atlantic Ocean with its Benguela current originating in Antarctica, pounds the coast. This cold current carries with it rich fish stocks but as it doesn't free its moisture, it accounts for the desert to be found on this side of South Africa. Inland, South Africa builds from the narrow coastal plain, through mountain ranges to a high central plateau. Here the vegetation varies from the semi-arid areas of the Karoo to the grasslands of the upper plains known as the Highveld. Johannesburg, the largest city in South Africa, is located here at a height of 1753 metres above sea level. Travel on beyond to the Lowveld and to Rudyard Kipling's “Great, grey, green greasy Limpopo river “ which forms the northern border with Zimbabwe. The earliest inhabitants of South Africa were the Khoikhoi and San people they met with. These were virtually wiped out by the settlers from the Dutch East India Company when they landed at the Cape in 1652. The survivors of the San moved to the more inhospitable desert areas of the country while the Khoikhoi were decimated by European diseases, while a few married into the Malay slave population and their culture was completely wiped out. The drive for land led settlers to push further inland and here they came into conflict with first the Xhosa people who lived on the east coast and, further north, the Zulus. Wars, enslavement and land occupation followed, much of it fuelled by the discovery of diamonds and gold. Both the Boers and the British fought the indigenous peoples in their quest for land and riches. The Boer War at the end of the nineteenth century led to South Africa becoming a British Colony. In 1933, a coalition government led by General Smuts gained independence from Britain while a delegation from the ANC was totally ignored. During the 1950's apartheid policies were made law and were ruthlessly applied until 1992 when the leader of the ANC, Nelson Mandela and other political prisoners were released and the process of democratisation began. The first full and free elections in South Africa were held in 1994 with Nelson Mandela and the ANC winning a clear majority. When Archbishop Desmond Tutu called South Africans the Rainbow Nation, his analogy was an apt description because the population of South Africa is extremely varied. Not only are there the various black peoples, Xhosa, Zulu, Sotho and Ndbele to name a few, but a thriving Asian population exists, along with white people from many European countries, as well as a mixed race community. A look at the eleven official languages gives an idea of the diversity in South Africa's population. Although English is the lingua franca and the first official language of the country, it is not the native tongue of many of its people. Travelling through the country, you are likely tol hear all of the following: Afrikaans, English, isiNdebele, isiXhosa, isiZulu, Sepedi, Sesotho, Setswana, siSwati, Tshivenda and Xitsonga. Many European languages including German, Greek and Portuguese are also spoken in minor communities. Today, South Africa is divided into nine provinces: * Eastern Cape, Northern Cape and Western Cape in the west and south. * Free State in the central region. * Limpopo and North West in the north and northwest. * KwaZulu-Natal in the eastern region. * Gauteng and Mpumalanga in the northeast. The South African climate is as diverse as its landscape and people. KwaZulu-Natal has a luxuriant subtropical vegetation and climate with year round warmth and summer rainfall. Down the coast to the Eastern Cape the climate is temperate, while in the Western Cape you will experience Mediterranean type weather and plant life. Inland the winters are dry with warm days and cold nights and the areas in the North near the Limpopo are tropical. Being in the southern hemisphere, the seasons are reversed and visitors from Europe can enjoy full summer when their home countries are in the grip of winter. No visit to South Africa would be complete without a trip to one of the many game reserves where you can see “The big five' - lions, rhinoceros, elephant, leopard and buffalo. However it would be a shame to limit your viewing to them as South Africa has a wealth of flora and fauna on offer. The Cape is justly proud of its floral kingdom where species well known to gardeners throughout the world originated. Numerous types of antelope roam through unexpected areas many elusive and difficult to spot. The dry, Cape West Coast blooms in years when there have been desert rains and the arid landscape is carpeted with flowers as far as the eye can see. Travel along the Garden Route through forests of yellow wood and stinkwood trees with moss hanging from branches like eerie ghosts; then wind though spectacular mountain passes to the shore where the oceans wash the long stretches of white sand. Here surfers from all corners of the world gather to enjoy the challenges offered by the enormous waves that sweep the coast. In all, South Africa is a traveller's dream, offering a variety of sights and a myriad of opportunities for sport and adventure. Information Required When Travelling to South Africa Visas: Visas are not required if you hold a valid passport from one of the following countries and you do not intend to stay more than 90 days: Andorra, Argentina, Australia, Austria, Belgium, Botswana, Brazil, Canada, Chile, Czech Republic, Denmark, Ecuador, Finland, France, Germany, Greece, Iceland, Israel, Italy, Jamaica, Japan, Liechtenstein, Luxemburg, Malta, Monaco, Netherlands, New Zealand, Norway, Paraguay, Portugal, San Marino, Singapore, Spain, St Vincent & the Grenadines, Sweden, Switzerland, United Kingdom Guernsey and Jersey, Isle of Man and Virgin Islands, Republic of Ireland. Vaccinations: Yellow Fever vaccination certificates are required for journeys starting in, or crossing the Yellow Fever belt of Africa and from South America. Time Zone: The South African Property Market The South African property market has a diversity of options for buyers to consider both in location and type. Homebuyers who are seeking a profitable investment as well as a second home are choosing from several carefully selected areas where the market is opening to tourism and other development areas. The World Cup in 2001, the optimistic state of the economy as well as the comparatively high price of housing for South Africans, ensure that buy-to-let investors find a strong market. Well-known areas such as the Western and Eastern Cape are where many purchasers are concentrating their interests. Recently the South Coast of KwaZulu Natal has come on stream as an exciting real estate area. Well-priced properties in all areas are still to be found, offering purchasers a highly developed infrastructure and an enviable lifestyle. It is clear that many South Africans living abroad still feel a connection to this country, and want to keep a foothold here by owning local property. “We identified some time ago that there was a market for high-quality, affordably-priced developments among buyers outside the country,” and specifically among expats who still see a possibility of returning at some point in the future. The Market: Cape and the World Cup Value for money remains a huge draw for property buyers in South Africa. Some caution has spread across the property market this summer following the hike in interest rates and possible further increases before the end of the year. As a result, investors are looking to the development market with a long-term view, safe in the knowledge that the country’s hosting of the 2010 World Cup should be a shot in the arm for the property market. Cape Town still has the strongest draw for investors. The Southern Suburbs comprise one of the most active development markets; Claremont, with it’s the Quadrant development (from R1,050 million – £77,000) and The Lofts in Tokai, are good examples. Further afield on the Southern Peninsula, lifestyle factors play a key role, with eco-estates such as Noordhoek’s Lake Michelle proving popular. More affordable developments can be found in the Northern Suburbs, where there are off-plan apartments and townhouses available, notably in areas of Brackenfell. The Western Seaboard of Cape Town has a selection of options ranging from entry-level properties through to exclusive seafront pads. The Garden Route and Eastern Cape are favourites for retirement or second-home destinations. Coastal towns that combine a fantastic way of life, great beaches and attractive property options include Mossel Bay, Knysna, Port Alfed, Jeffrey’s Bay and Plettenberg Bay. A further growth spot is the coastal stretch north of Durban in, where the resort of Umhlanga Rocks has developed into a trendy holiday spot. Only three hours north are a good selection of game reserves and the beautiful protected St Lucia wetlands. A similar distance away are the Drakensburg mountains, a draw for outdoors enthusiasts. South of Durban are the established resorts of Margate, Ramsgate and Port Edward but there is still room for growth here, namely at Shelly Beach where opportunities are arising through estates such as Bayhill and The Farm, helped along by the town’s new shopping centre. Property in South Africa update Despite a slight slowdown in price growth, South Africa still represents excellent value for money. With its Mediterranean climate and sophisticated social scene, Cape Town is the place to be seen, while the Garden Route offers a more tranquil existence and Durban's coastline is enjoying redevelopment South Africa Fact File Population: 44,200,000 South African Property News Unfortunately many people liken South Africa with its northern neighbour, Zimbabwe. However, unlike Zimbabwe, the South African government is outward looking and realises the great contribution foreign investors can make to the economy, taking proactive steps to encourage property purchasers to South Africa. Apart from South Africa being a marvellous country in terms of standard of living and climate, today's overseas property investors will find many political and economic advantages through investing in the country. Commercial property has achieved substantial growth in past years and this trend looks set to continue with the government incentives now in place. In certain select areas, many opportunities exist for lucrative returns from South African property. The key factors that make South Africa a sound investment region are listed below: * South Africa is a country of sunshine and beautiful beaches, among many other attractions, and the government is committed to building a strong tourist industry. Property prices in South Africa are on the increase, offering lucrative opportunities for property investors taking a long-term view of the market. These developments are indicative of the rising popularity of South Africa for foreign buyers, attracted by appealing investment opportunities in an emerging market. Many investors are beginning to set their sights further afield than in the past, prepared to look further abroad for lucrative deals. New reports from the Global Property Guide show that South Africa has seen year-on-year house price growth of 16.74 per cent in the first quarter of 2007, having risen steadily for seven years and reaching a peak at 30 per cent in 2004, Homesgofast.com reports. Similar positive growth has been evidenced in Australia which underwent something of a slowdown from 2004 to 2006. Year-on-year house prices were up by almost eight per cent in the first quarter of 2007 up from four per cent during the same period in 2006. Conversely, prices have seen a steady slowing in the US. Fractional ownership schemes in South Africa have made luxury housing available to a growing number, accoridng to Helium Report. Reasons to Buy Property in South Africa * South Africa's political past has left a shortage of property and this factor has created long-term growth potential in the property market. The International Property Investment Network (IPIN) was established to help property investors safely utilize overseas property as a wealth-building vehicle. increasing commuter traffic will create residential "hotspots" around South Africa's commercial and business hubs, according to a property strategist. John Loos of First National Bank said that as more vehicles took to the roads he expected homeowners to purchase close to their places of work or key transport routes. He told AllAfrica.com that currently 70,000 new vehicles were driving on the roads each year but he expected this to rise to a million a year within the next decade. According to Mr Loos, three highways in particular would boost property demand and prices: the Gautrain-M1 corridor between Pretoria and Braamfontein in Gauteng, the southern suburbs corridor in Cape Town and the Umhlanga-La Lucia Ridge corridor in KwaZulu-Natal. Locales such as Hatfield, Centurion, Midrand, Sandton, Marlboro, Rosebank and Braamfontein around the Gautrain-M1 corridor would attract property buyers, tenants and businesses, he added. Heath Adamson, sales and marketing director of International Property Solutions, said that the South African property market was experiencing increased growth of up to 18 per cent and investors could get more for their money than in Europe. ******************************************************************
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