According to the Southern Cape Property Guide of Week ending Thursday 30 August 2012, the following is applicable:
IF THE INVESTOR TAKES THE RIGHT ADVICE FROM A REPUTABLE PROPERTY GROUP, THEREFORE, HE CAN AVOID MOST RISKS AND SLEEP HAPPILY AT NIGHT
The South African Reserve Bank’s decision to reduce its repo rate by a further 0,5% will speed up the movement of capital from the money market – and cause investors to look harder for better returns elsewhere. This being the case, the logic of investing in property needs once more to be emphasised.
The simplest and easiest way to do this, is to invest in a JSE listed property fund. In 2011 these funds outperformed bonds, cash and other equities and are again doing so in 2012, despite the difficulties experienced by tenants. In 2011, average returns on a listed property were 8,8% and certain of the top performing funds achieved returns of 19% to 24%. Those investors wanting a more hands-on and potentially more profitable investment should consider investing either alone or with partners in commercial property.