Learn how to Create Wealth through investing in property
Property speculation is defined as buying property to resell it at a profit and it is regarded as a trade under South Africa’s tax regime.
In order to make an informed purchasing decision, you need to know what the market-related selling prices and rentals are. Since it is very difficult to be an expert on all types of properties in all areas, it is usually a good idea to decide on a niche you will target.
In today’s world, convenience and peace of mind are key priorities for many home buyers. This makes sectional title living a desirable option, given that outside maintenance, insurance and sometimes water costs form part of the levy and are therefore taken care of.
Under South African common law, the general rule that applies when an agreement fails is that the parties must restore the status to the position they were in before the agreement was signed, unless both parties have agreed that there is an exception to this rule.
Cape Town areas will have to conform to a single system it is hoped that planning approval delays will be much reduced – after all, new homes are a necessity, as is a faster creation of work opportunities.
Every investor should have a long-term succession plan, and hopefully, it is the desire of all investors that their children should reap the rewards of their efforts. It is not a question of if, but when you should arrange you property affairs to ensure that you and your children achieve the maximum benefits.
If you can buy a low-risk property (low market cap rates) with a high return, you have found your deal of the decade.