Real Estate Investor Magazine South Africa March 2015 | Page 7

INVESTOR TALK

Start your journey despite the shifting market

I

t is difficult to not to
ignore the government’s
latest uptake on
land reforms and foreign
ownership. Many investors,
property professionals, entrepreneurs and businessmen alike raised concern
over President Jacob Zuma’s
announcement during his
State of the Nation Address
regarding restrictions on foreign land ownership.
The
statement
raised
concern about the impact on
foreign land ownership of
property companies, game
farms as well as foreign
investments in hotels in South Africa. “Foreigners will
not be allowed to own land in South Africa,” Zuma said.
He added that foreigners would instead be eligible for
long-term leases. “In this regard, the Regulation of Land
Holdings Bill will be submitted to Parliament this year,”
he noted. If Zuma was a serious player in the international
real estate game his returns will be under pressure, if his
policy were to invest in one place.

FROM THE PUBLISHER

S

outh Africa is in for a
very interesting year
as we learn to solve
and deal with the myriad
of problems left behind
after reaching our 20-year
democratic milestone.
Land reform and foreign
ownership of real estate
have become hot topics. It
is, however, important to
note that foreign investment
makes up a small amount
of total residential property
sales in South Africa at only
3%. This is according to
Lightstone data, whereby only 2% of all annual purchases
were made by foreigners.
Consumers and economists are also waiting to hear
Finance Minister Nhlanhla Nene’s Budget Speech on
how much taxes we will have to pay this year, especially to
pay for Eskom’s R191 billion shortfall. But, where will all
this tax come from?

FROM THE COPY EDITOR

It is enough to reduce investor confidence, impede
much needed growth in the local economy and impact job
creation. “While nationally this is still a proposal; the fact
is that by its very nature it erodes foreign direct investment
appetite. Potential investors who may be weighing up
South Africa versus a number of other destinations will
simply choose to invest elsewhere,” comments Andrew
Golding of Pam Golding Properties.
For many years the British have invested successfully
offshore in stronger economies with the goal of
repatriating the wealth back to their own country, making
them far better off than trying to invest in one place
with limited opportunities. We just have to look at local
companies like Redefine, NEPI and Delta who all reap
the benefits of investing in offshore real estate assets to
boost their balance sheets. The same is true for other
offshore investors looking to give South Africans much
needed investment.
Thank goodness for magazines like REIM to help you
along and give you insider strategies and ideas to profit
from worldwide real estate investment.
Enjoy the read!

NEALE PETERSEN

EDITOR-IN-CHIEF

Both land reform policies and frequent load shedding
are a further deterrent to foreign investors looking to
invest in South African real estate.
Despite political instability and shifting market trends,
learn how to invest in real estate affordably and how to
make your investment long lasting.
The right mindset and attitude will go a long way in
helping you to benefit from your real estate investment
journey and reap the rewards.
In this edition, read about the psychology of investing
to gain insight and top tips on how to invest wisely in
real estate.
See Candice Schultz’s inspiring story about how real
estate can be your meal ticket to financial freedom.
Learn about how you can gain access to affordable
housing subsidies and see how real estate and
infrastructure in Urban Development Zones are changing
commercial districts.
Prosperous investing!

Megan Diener

copy Editor

“Land monopoly is not only monopoly, but it is by far the greatest of monopolies;
it is a perpetual monopoly, and it is the mother of all forms of monopoly.”
WINSTON CHURCHILL
www.reimag.co.za

March 2015 SA Real Estate Investor

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