South African property giving good returns
This year will be a strong one for South African property companies, according to a local expert, and the country is also expected to provide good returns for overseas investors.
Ilan Kaplan, an analyst for South African company Madison Property Fund Managers, has claimed that the 2% interest rate rise the country has experienced in the last 8 months will be arrested, and that rates could actually fall by the end of the year, eProp reports.
Mr Kaplan asserts that a rate fall will be "favourable" for the performance of property companies but that even the recent 2% increase has been offset by rising rent prices.
The analyst also notes that investors from developed countries are able to yield returns of between 12% and 15% and that an increasing number of foreign investors are becoming aware of the opportunities in South African property.
"Even if the rand were to weaken by, say, 10%, average returns for overseas investors would still be above double digit in US Dollar terms - satisfactory by any standards," he added.
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