Property News - December 2008
Welcome to our property investment newsletter, the aim of which is to keep you up to date and informed as to the most recent property trends.
This month we are excited to announce the launch of two new residential developments in the Durban CBD. Redforde House and Founders House are both perfectly located in the Urban Development Zone (UDZ) so investors can benefit from the 30% tax rebate that SARS is currently offering.
Where else can one buy a brand new fully renovated bachelor flat for only R240K and then get R72K back in the from of tax savings. For further information have a read through the 5th article in this months newsletter entitled: “Urban Development Zone (UDZ) Tax Incentives and Investment Opportunities”
Prices in the UK peaked in late 2007 and have fallen sharply since that point. Our forecast suggests that we are now at least half way through the process of price falls, with around 15% of an estimated 30% peak-to-trough decline already factored into prices.
The financial difficulties South African consumers are currently facing as a result of trends in domestic inflation, interest rates, real household disposable income, household debt and debt servicing, as well as the effect of the National Credit Act and the tightening of credit criteria by banks, have caused the housing market to cool off to levels not seen in many years.
It is now clear that no part of the world is likely to escape the credit crunch as property prices start to fall in more and more parts of the globe. Even though strong growth in 2007 means two thirds of the index is still showing an annual increase, prices in more than half of the countries fell in the third quarter of this year.
If you intend purchasing a home with the surety of owning it for more than three years, if you believe that interest rates have neared their peak and if you can scramble sufficient capital to commit, then now’s a near perfect time to land yourself into a profitable property ownership.
In line with many countries, South Africa has a number of urban areas that are suffering from urban decay, and in order to address this, governments internationally have increasingly utilised tax measures to support efforts aimed at regenerating these urban areas.