Written By: Jacquelyn Annete García Vadnais
South Africa has been a coveted international destination for some time due to its incredible sights, friendly locals, and excellent climate. These factors have greatly been related to more expats wanting to stay in South Africa on a longer-term basis and eventually, invest in property there. One such place in South Africa that is an ideal place to invest is Cape Town, South Africa. Cape Town is full of fantastic sights, great culinary locales, and unique colonial roots. It is important to research real estate opportunities in Cape Town carefully to be sure you are getting the best possible fit for your particular financial circumstances. If you are considering investing in Cape Town, South Africa, consider the information below:
A Brief History of South Africa
South Africa has a diverse history that has influence from indigenous tribes in Africa along with European colonial heritage. In 1497 Vasco da Gama landed on what is South Africa today. Almost two centuries later in 1652, Jan van Riebeeck, who represented the Dutch East India Company, founded Cape Colony at Table Bay in modern day Cape Town. In 1795, British forces seized Cape Colony from the Netherlands. In 1934, The Union of South Africa Parliament enacted the Status of the Union Act, granting South Africans a sovereign independent state, and effectively ending all British authority over South Africa. Modern Day Cape Town is a city known for its extensive cultural history. There are churches, mosques, synagogues, architectural sights, museums and world-renowned cuisine. Additionally, the unique local languages and naturalistic beauty, such as the harbor, Table Mountain, and Cape Point are fascinating to experience. In 2014, Cape Town was named a World Design Destination by the World Design Organization, and one of the best places to visit in the world by both the New York Times, and The Daily Telegraph.
Important Aspects to Consider When Investing in Real Estate in Cape Town, South Africa
Proximity to Stunning Sights
Cape Town is a wonderful place to spend an extended period of time. There are stunning hikes, beaches, and weekend trips to enjoy from Cape Town. In particular, Cape Town is not far from some of South Africa’s best animal safaris and makes for a great place to visit for those looking to mix the ocean with the world-famous animal safaris. This creates a lot of activities for the residents. Since the climate is temperate year-round, Cape Town is an ideal place to call a first or second home.
Tourism
Cape Town has no shortage of tourists. In fact, tourists are ideal customers to rent apartments or homes from those that decide to invest in real estate in Cape Town. Cape Town’s tourism is something that is steady year-round due to the incredible climate and sights available for tourists to enjoy.
English Level
Since South Africa has former ties to Great Britain, English is widely spoken there. This makes conducting business, legal transactions, and getting around far easier for foreign investors who prefer to speak English. While there are several other tribal dialects spoken in South Africa, most citizens will have a high working knowledge of English, which is quite convenient for potential expats that would like to reside in Cape Town.
Price Inflation
Cape Town has experienced a boom recently due to the combination of its attractive lifestyle, excellent education system, and scenic delights. As a result, there has been a 10.35% increase in real estate prices in Cape Town in recent years. This is predicted to continue to increase, which is why Cape Town may be a suitable choice for investors looking to see substantial increases on the valuation of their real estate investments.
Currency Devaluation
The South African Rand (ZAR) has seen a substantial decrease in value against the US Dollar. For example, the South African Rand has fallen from US$ 1 = ZAR 6.76 in July of 2011, to US$ 1 = ZAR 13.12 in December of 2017. Due to this change in relationship between USD and ZAR, there is a potential there for real estate investors investing in USD to pay substantially less for properties than they did before 2017. For real estate investors that have savings in USD, it is worthwhile to factor this into your investment calculations to see which properties you may be able to invest in that you could not consider previously.
Proximity to Great Schools
There has been a recent trend for families from other countries in Africa such as: Zambia, Zimbabwe, Namibia, Botswana, Nigeria, Angola, Kenya, DRC, Gabon, Ghana, and Mozambique to acquire real estate in Cape Town to send their children to elite universities or private schools. These individuals also rent properties as well. This increased investment and rental activity is good for property values and potential rental yields for real estate investors.
Final Remarks on the Subject
Cape Town is one of the most beautiful places to visit in the world. It is no surprise that so many individuals want to spend more time there. For the global real estate investor, Cape Town presents a unique opportunity of a locale with year-round tourism that also presents the possibility of a second home in a spectacular place. The high level of English makes conducting business much simpler for foreign investors. The combination of the devaluation of the South African Rand and the strength of the United States Dollar makes for a window of opportunity to save a substantial amount of capital on real estate. In addition, the value of the real estate is increasing in Cape Town due to the elite education and high quality of life available there. When considering global real estate opportunities, it is highly recommended that you keep Cape Town in mind as it is a potential investment that could serve as a rental property and then a retirement home in the longer term for you to enjoy. It will be fascinating to see how the real estate market in Cape Town will prosper in the coming years.
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Jacquelyn Annete Garcia Vadnais is an Investment Consultant and field expert blogger for Barracuda Consulting.
Jacquelyn has a JD/MBA from Suffolk University, an LL.M in International Law from the University of Miami, and a B.A. from the George Washington University in International Affairs with a Concentration in International Politics. Jacquelyn speaks English, Spanish, French, and Portuguese and has lived in ten countries. Jacquelyn has done work for firms such as Boston Consulting Group and has worked with firms based in over ten countries in the fields of Real Estate, International Law, Expat Living, International Business, Forex Trading, and Travel. She has also volunteered her time and expertise at the Victims Rights Law Center based in Boston, MA.
Please leave your comments below. If you would like to subscribe to our newsletter, click here: https://tinyletter.com/barracuda-consulting. To purchase a full real estate report, or to access a complete suite of investment advisory services please contact us: https://www.barracuda-consulting.net/contact.
South Africa has been a coveted international destination for some time due to its incredible sights, friendly locals, and excellent climate. These factors have greatly been related to more expats wanting to stay in South Africa on a longer-term basis and eventually, invest in property there. One such place in South Africa that is an ideal place to invest is Cape Town, South Africa. Cape Town is full of fantastic sights, great culinary locales, and unique colonial roots. It is important to research real estate opportunities in Cape Town carefully to be sure you are getting the best possible fit for your particular financial circumstances. If you are considering investing in Cape Town, South Africa, consider the information below:
A Brief History of South Africa
South Africa has a diverse history that has influence from indigenous tribes in Africa along with European colonial heritage. In 1497 Vasco da Gama landed on what is South Africa today. Almost two centuries later in 1652, Jan van Riebeeck, who represented the Dutch East India Company, founded Cape Colony at Table Bay in modern day Cape Town. In 1795, British forces seized Cape Colony from the Netherlands. In 1934, The Union of South Africa Parliament enacted the Status of the Union Act, granting South Africans a sovereign independent state, and effectively ending all British authority over South Africa. Modern Day Cape Town is a city known for its extensive cultural history. There are churches, mosques, synagogues, architectural sights, museums and world-renowned cuisine. Additionally, the unique local languages and naturalistic beauty, such as the harbor, Table Mountain, and Cape Point are fascinating to experience. In 2014, Cape Town was named a World Design Destination by the World Design Organization, and one of the best places to visit in the world by both the New York Times, and The Daily Telegraph.
Important Aspects to Consider When Investing in Real Estate in Cape Town, South Africa
Proximity to Stunning Sights
Cape Town is a wonderful place to spend an extended period of time. There are stunning hikes, beaches, and weekend trips to enjoy from Cape Town. In particular, Cape Town is not far from some of South Africa’s best animal safaris and makes for a great place to visit for those looking to mix the ocean with the world-famous animal safaris. This creates a lot of activities for the residents. Since the climate is temperate year-round, Cape Town is an ideal place to call a first or second home.
Tourism
Cape Town has no shortage of tourists. In fact, tourists are ideal customers to rent apartments or homes from those that decide to invest in real estate in Cape Town. Cape Town’s tourism is something that is steady year-round due to the incredible climate and sights available for tourists to enjoy.
English Level
Since South Africa has former ties to Great Britain, English is widely spoken there. This makes conducting business, legal transactions, and getting around far easier for foreign investors who prefer to speak English. While there are several other tribal dialects spoken in South Africa, most citizens will have a high working knowledge of English, which is quite convenient for potential expats that would like to reside in Cape Town.
Price Inflation
Cape Town has experienced a boom recently due to the combination of its attractive lifestyle, excellent education system, and scenic delights. As a result, there has been a 10.35% increase in real estate prices in Cape Town in recent years. This is predicted to continue to increase, which is why Cape Town may be a suitable choice for investors looking to see substantial increases on the valuation of their real estate investments.
Currency Devaluation
The South African Rand (ZAR) has seen a substantial decrease in value against the US Dollar. For example, the South African Rand has fallen from US$ 1 = ZAR 6.76 in July of 2011, to US$ 1 = ZAR 13.12 in December of 2017. Due to this change in relationship between USD and ZAR, there is a potential there for real estate investors investing in USD to pay substantially less for properties than they did before 2017. For real estate investors that have savings in USD, it is worthwhile to factor this into your investment calculations to see which properties you may be able to invest in that you could not consider previously.
Proximity to Great Schools
There has been a recent trend for families from other countries in Africa such as: Zambia, Zimbabwe, Namibia, Botswana, Nigeria, Angola, Kenya, DRC, Gabon, Ghana, and Mozambique to acquire real estate in Cape Town to send their children to elite universities or private schools. These individuals also rent properties as well. This increased investment and rental activity is good for property values and potential rental yields for real estate investors.
Final Remarks on the Subject
Cape Town is one of the most beautiful places to visit in the world. It is no surprise that so many individuals want to spend more time there. For the global real estate investor, Cape Town presents a unique opportunity of a locale with year-round tourism that also presents the possibility of a second home in a spectacular place. The high level of English makes conducting business much simpler for foreign investors. The combination of the devaluation of the South African Rand and the strength of the United States Dollar makes for a window of opportunity to save a substantial amount of capital on real estate. In addition, the value of the real estate is increasing in Cape Town due to the elite education and high quality of life available there. When considering global real estate opportunities, it is highly recommended that you keep Cape Town in mind as it is a potential investment that could serve as a rental property and then a retirement home in the longer term for you to enjoy. It will be fascinating to see how the real estate market in Cape Town will prosper in the coming years.
--
Jacquelyn Annete Garcia Vadnais is an Investment Consultant and field expert blogger for Barracuda Consulting.
Jacquelyn has a JD/MBA from Suffolk University, an LL.M in International Law from the University of Miami, and a B.A. from the George Washington University in International Affairs with a Concentration in International Politics. Jacquelyn speaks English, Spanish, French, and Portuguese and has lived in ten countries. Jacquelyn has done work for firms such as Boston Consulting Group and has worked with firms based in over ten countries in the fields of Real Estate, International Law, Expat Living, International Business, Forex Trading, and Travel. She has also volunteered her time and expertise at the Victims Rights Law Center based in Boston, MA.
Please leave your comments below. If you would like to subscribe to our newsletter, click here: https://tinyletter.com/barracuda-consulting. To purchase a full real estate report, or to access a complete suite of investment advisory services please contact us: https://www.barracuda-consulting.net/contact.
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