The fall in the rand value against the US Dollar, British Pound and Euro in the past few months has rekindled overseas interest in SA property.

According to Berry Everitt, managing director of Chas Everitt International Property Group, this has also raised the possibility of a significant boost to the local housing market.

He explains that since May, the value of the rand has shown a sharp decline that was bound to catch the attention of overseas investors, especially in the light of the economic distress in Europe.

People all over the world are searching for safe havens for investing and South Africa with its stable banking system and growing economy is increasingly perceived as a good option in this regard.

Legislation that provides temporary relief from VAT payments for residential property developers who lease units before intended sale has been welcomed.

"This change is communicated by section 18A of the VAT Act as inserted by the Taxation laws Amendment Bill of 2011, which allows for residential property developers to lease their units without being liable for VAT payments," says David Honeyball, tax partner at Grant Thornton Cape.

Residential property developers are subject to VAT on the sale of their units. Where developers are unable to sell their units and decide to find a tenant to rent the property in order to defray costs, currently VAT legislation provides that they are required to account for VAT output tax on the market value of the property as there is a change in use of the property.

South Africa, Turkey and Saudi Arabia are the markets with the most promising 10-year growth outlook, Bank of America Merrill Lynch says in a report on the long-term growth outlook for the EMEA countries - Europe, Middle East and Africa.

"Based on an analysis of growth determinants from demographics to leverage, we conclude that this decade Turkey, South Africa and Saudi Arabia will improve their growth performance," the bank says.

There are various kinds of property investment. Your home is an investment in that it provides you with rent-free accommodation. It may also yield a return in terms of increased value (a capital gain), although that gain may be difficult to realise unless you trade down or move to another region or country where property is cheaper.

Of course, if you buy property other than for your own regular use, e.g. a holiday home, you will be in a position to benefit from a more tangible return on your investment. There are four main categories of investment property: