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Whether it’s the temperate climate, untouched natural beauty or the feeling of being on a never-ending holiday retreat; more and more South Africans are looking to invest in the booming markets of Tropical Africa. 

With a slew of high-end residential developments in Mozambique, Mauritius and the Seychelles; countless investors (who have sufficiently recovered from the Global Financial Crisis of 2007/8) are looking further afield to get more bang for their buck. 

Of course it doesn’t take a market analyst to appreciate the aesthetical appeal of these ideal locations, but politics and local property bylaws have often proven to be the stumbling block. Mozambique has long been the destination of choice for boys’ fishing weekends and summer holidays filled with Rum & Raspberry cocktails, but it was only in 2005 that foreigners began to enjoy property ownership rights within resort developments. All land in Mozambique is under ownership of the government and requires the formation of a partnership with a Mozambique national, obtaining residency rights or purchasing a unit in a leisure-property project. Regardless, the State has committed to tax and import incentives that will translate into a respectable outlay. 

In contrast to the volatile history of Mozambique, Mauritius is known for its outstanding health & education infrastructure, fluency in English and a willingness to embrace foreign investment. Besides undergoing a rapid expansion of resort opportunities (pushing into sugarcane farms), 2004 saw legislative amendments that allowed foreign ownership of residential property; either through a Mauritian-registered business or trust, or in one’s personal capacity. Three decades of sustained economic growth and an investment-friendly regulatory regime make even the most cautious of visitors feel at home. 

This progressive market allows for residency permits to foreign buyers and his or her spouse & dependants; provided they acquire property worth a minimum of US$500 000. The fact that many Mauritian regions have broken ground on developing Golf Estates is testament to the fact that they not only seek short-term holiday makers, but those wishing to work and live on the island. 

Perhaps the most promising opportunity of all is the pristine island grouping of the Seychelles. Blessed with almost three decades of political stability and near on 100% employment rate, this environmentally conscious population (numbering less than 100 000) have welcomed investors from Italy, France, South Africa, Russia and the UK. What’s increasingly important to note is that the Seychelles government are sticklers for regulation and procedure; opening their doors to foreign ownership of property, provided you show them the money. Foreign applicants are required to deposit in excess of R2 million in foreign exchange into the Central Bank of the Seychelles, if they wish to acquire land.   

Granted, the growth of picture perfect destinations is matched only by the insistence of their regimes to bury potential land owners in regulation and administrative red tape. What is clear however is that the compounded benefits of sectional title property ownership are now advantageous within and beyond South African borders.     




Author Gated Estates
Published 17 Feb 2016 / Views -
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