Namibia, an enchanting and multifaceted nation, offers a haven of stability in both its political and economic landscapes. This makes it an ideal choice for those seeking opportunities in the real estate market.
South Africans, in particular, find themselves enticed by Namibia’s charm, given its near proximity, shared cultural affinities, and cost-effective property options.
There are so many compelling reasons that underscore the appeal of investing in Namibian real estate, illuminating the numerous advantages it presents:
– Strong rental demand: Namibia has a growing population and a thriving tourism industry, which means there is a high demand for rental properties.
– Capital appreciation: Property prices in Namibia have been rising steadily in recent years and are expected to continue to do so. According to The Brief, “Namibia’s property market has witnessed a staggering 1,258% surge in average housing prices between January 1990 and March 2023.”
And, “While the coastal and central house prices had diverged between 2016 and 2022, recent data from 1Q2023 indicates a narrowing gap, with coastal houses now the most expensive (averaging N$1.6m, followed by the central area (N$1.5m), the North (N$869,000), and the South (N$795,000).”
– Tax benefits: Namibia has several tax benefits for property investors, such as no capital gains tax or inheritance tax. According to Henley and Partners, “Foreign residents are generally only taxed on the income they generate in the country. What is more, tax rates are relatively competitive compared with many other emerging markets, particularly with neighbouring countries such as South Africa.
“The top rate of income tax in Namibia is a modest 37%, but perhaps most notably there are no capital gains-, estate-, gift-, inheritance-, or net wealth/worth taxes.”
– Lifestyle benefits: Namibia offers a high quality of life, with stunning scenery, friendly people, and a variety of outdoor activities to enjoy.
Helping South Africans navigate property investments
Schantal Teichmann has lived in Namibia her entire life. When she saw an opening for a company that could provide exclusive letting and administrative services, she started Just Property Windhoek in 2005 and later opened Just Property Swakopmund in 2021.
“My love for people motivated me to help people find and manage investments so that they could grow their wealth through property,” she says.
Here she answers questions that South Africans frequently ask her:
Why are South Africans buying property in Namibia?
South Africans are buying property in Namibia for several reasons, including:
Political and economic stability: Namibia is a politically and economically stable country, with a strong democracy and a growing economy.
Close proximity: Namibia is located just a short flight from South Africa, making it an ideal destination for holidays and second homes.
Similar culture: Namibia has a similar culture to South Africa, with a diverse population and a relaxed lifestyle.
Affordable property prices: Property prices in Namibia are generally more affordable than in South Africa, making it a good value-for-money investment.
Why Windhoek?
Windhoek is the capital of Namibia and the epicentre of all commercial trading. It is a modern and vibrant city with a lot to offer residents and visitors alike.
Windhoek is also a great place to invest in property. The city has a growing population and a strong economy, which is driving up demand for rental properties. Additionally, the Namibian government is investing heavily in infrastructure development in Windhoek, which is further boosting the property market.
How can South Africans buy property in Namibia?
If you are a South African interested in investing in property in Namibia, the process is relatively straightforward as long as the property in question doesn’t fall under the category of agricultural land.
You will need to obtain a non-resident buyer’s permit, which can be done through the Namibian Ministry of Home Affairs. Once you have your permit, you can start looking for properties and making offers.
South Africans can buy property in Namibia through several well-known estate agents and agencies in Namibia. These include Pam Golding Properties, Seeff Properties, Leapfrog Properties and Sotheby’s International Realty, among others.
At Just Property, we have two teams of experienced and knowledgeable agents who can help you find the perfect property for your investment needs, whether that be a home purchase, investment property, or rental property management services.
Whether you’re looking for property in Windhoek or Swakopmund let an agent know your criteria for a property investment. They will then send you a selection of suitable properties from which to choose. Once you have found a property that you are interested in, the agent will help you negotiate the best price and arrange the purchase.
Overall, property investment in Namibia is a wise choice for South Africans looking for a stable and profitable investment. With its strong rental demand, capital-appreciation potential, and tax benefits, Namibia offers several advantages for property investors.
Source : Zawya
