Best Place to buy property at the moment

[lorgat94]

Where in South Africa would you suggest is the best place to invest in property right now, where market prices have a potential to increase and returns are around 10% p.a?

 

[dekana]

I would say Camps Bay in Cape Town.

Property prices off the hizzy there.

 

[GoB]

I would invest in rental properties under the UDZ tax incentive.
There were a couple of apartment buildings in Cape Town city center - even though they seem overpriced - on paper it seems like they would start paying themselves quite soon if bought on a loan.

From the limited reading I did, it seemed like one may offset:
- Year 1: 11% of the purchase price against taxable income - so about (11% at 40% tax rate) = 4.4%. That may get you close to no rental loss.
- Year 2-11: 4.4% of the purchase price = ~1.76%. Effectively a ~1.5% break on your loan interest.

I may be completely off base - I did not investigate properly since I won't be able to do this for some time.

 

[saturnz]

I would invest in rental properties under the UDZ tax incentive.

investment decisions should not be based on tax incentives, I used to be a major fan of the CBD and surrounding areas but even Belhar seems to be generating good growth these days, mostly as a result of student accommodation.

 

[GoB]

investment decisions should not be based on tax incentives, I used to be a major fan of the CBD and surrounding areas but even Belhar seems to be generating good growth these days, mostly as a result of student accommodation.

Why would a factor which affects the return - potentially doubling it - not be a consideration for an investment?

 

[Thor]

Sunning dale area, very up and coming.

 

[saturnz]

Why would a factor which affects the return - potentially doubling it - not be a consideration for an investment?

generally an investment decision should be based on merit and not incentives, if the decision is sound based on merit then the tax incentives is just an added bonus

yes there may be tax incentives for forking out R1.5m for a 50m2 flat in the CBD, but what about the capital growth? and the ability to secure decent rental yields over a protracted period

 

[NarrowBandFtw]

Sunning dale area, very up and coming.

:wtf: you talking about Parklands (aka Narclands / Little Nigeria) North?

I personally wouldn't risk it.