Benefits of investing in residential estates
Category Newsletter
Benefits of investing in residential estates
There is still potential and value in investing in property in South Africa, particularly when it comes to residential estates, which are currently experiencing a boom in the local market.
February's FNB House Price Index 2019 fell marginally, ending at 3.7%, down from the 4% in January and the 3.9% average of 2018. According to FNB, the trend of house prices remains below CPI inflation, or losing value in real terms, is something that has continued since early 2016.
In spite of this, Lightstone forecasts a GDP growth of between 0.75% and 1.5%, and CPI ranging between 4% and 5% in 2019, raising their expectations for house price increasing over the coming months. This could be indicative of forward momentum in 2019.
Property in residential estates remains a reliable investment, providing buyers with meaningful extra value such as security, schools, green environment and quality of life. As a result of the safety and security, these estate homes generate a healthy return.
Many first-time buyers like to invest in off plan developments as there are no transfer fees applicable. It is imperative for buyers to be clear about what the price of the unit they have chosen includes and excludes.
Author: Prime Property Marketing
