|
|
South Africa: U.S. Entices Investors
 |
 |
|||||||||
|
||||||||||
|
|
|||||||||
|
||||||||||
Business Day (Johannesburg)
25 April 2008
Posted to the web 25 April 2008
Anna-Marie Smith
Johannesburg
HOUSE prices in the US this year have fallen to the lowest rate in 13 years, and drops in property prices in the US are reported to be the highest in the East Coasts' Miami, Florida and San Diego on the Californian West Coast, where annual declines of up to 15% were posted.
While the local market is experiencing its own decline, property professionals in SA are offering local buyers bargain purchases abroad, and property investments in the US where low interest rates lures buyers, is becoming popular with both European and local investors.
The three fold US situation of the weakened US dollar, reduced property prices and low interest rates, is Cape Property Developer Group 3 Properties' foot hold in their recent launch of two top quality developments, located in Tampa Bay in Florida to South African buyers.
Well known in the Western Cape property market for innovative energy saving developments, Group 3 Properties joined forces with US property developer Jeff Ricketts, and are currently marketing 258 luxury apartments, worth a total of $51,6m (about R412,8m), to local investors.
A US-based company formed by Chris Tapsell of Group 3 Properties and Ricketts to assist locals with the purchase and management of these properties has formulated a financial package that will enable local buyers to enjoy tax-deferred real estate investing and be part of corporate US.
Tampa Bay attracts millions of tourists every year because of its all-year-round summer season, sandy, white beaches, and close proximity to Disney World, Sea World, Universal Studios and other tourist attractions. It is also home to professional football, baseball and hockey teams.
Rapidly growing, Tampa Bay boasts a thriving economy and has become the technical and financial hub of the USA's South Eastern region.
Victoria Palms and Tuscano, the two new East Coast developments have been developed by Ricketts, one of the largest and most reputable condominium developers in the Tampa Bay area.
Ricketts credentials include a building contracting licence in Florida since 1978, and a structural engineering background.
Both developments offer luxurious living, with designer interiors, resort-style swimming pools, state-of-the-art gyms and other clubhouse facilities.
They are also close to the beach and have breathtaking water views, says Tapsell.
The newly built Tuscan-style Tuscano consists of 344 units, with only 70 remaining unsold.
The award-winning development for innovative design and environmental sensitivity, borders on a nature park offering residents an abundance of wildlife including birds, turtles and occasionally even a small alligator, according to Ricketts.
Victoria Palms is situated in the picturesque harbour town of Dunedin, providing day and night time entertainment. "The town offers a relaxed lifestyle -- bicycles are the preferred mode of transport there -- and will appeal to professionals, families, and young and old alike," says Tapsell.
Unit prices range from $129900 to $249000, approximately R1039200 to R1992000.
Tapsell says that South Africans enjoy a foreign investment allowance of R2m a person into any offshore investment, provided they have received tax clearance from the South African Revenue Service. Unit sizes vary from one-bedroom apartments with floor space of 110m' to three bedroom units measuring 150m. Smallest apartments feature two bathrooms, up to four bathrooms in the larger apartments. The financial package structured by Tapsell and Ricketts will enable South African investors to take ownership of their properties through a C-Corp, comparable to the local closed corporation, and manage investment as a US business. Ricketts says that the tax liability, as in taxes payable on real estate investments in the US can be minimised and deferred, as US tax laws allow investors to buy, then sell a property, and immediately reinvest their capital and profits into another property deal, without paying taxes on the profits generated.
Ricketts and Tapsell will offer a comprehensive service in assisting South African buyers from mortgage applications to opening the required USA bank accounts, through the newly formed management company.
This service will include management of rented apartments, ensuring the adherence to five-year contracts, with rentals covering all costs including mortgages.
|
Ricketts says units in both developments are ideally situated for renting to business people, due to the close proximity to the business centre and Tampa's international airport.
Tapsell judges both developments to be five-star quality by South African standards, and above average for the USA.
He also says that all units will come fully equipped with new appliances "in typically American style".
Rates are not that high if you paying in dollars.
| |||||||||||||||||||||||||||||
| |||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||
| Copyright © 2008 Business Day. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections -- or for permission to republish or make other authorized use of this material, click here. | |||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||
| Make allAfrica.com your home page | RSS Feed | |||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||
| Top | Site Guide | Who We Are | Advertising | Search | Subscribe | |||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||
| Questions or Comments? Contact us. Read our Privacy Statement. | |||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||
