Since the rand has seen a run-up of about 35% in the past year, relative to the dollar, I think it makes sense to move some funds into dollar-denominated assets as a hedge while you are in the US. I also read somewhere that the South Africa Real estate market was among the strongest in the world in 2009. SO, partly diversifying out of rand-denominated assets into dollars would seem prudent if you are planning to be in the US for a number of years.
Where you put that depends on your tiume horizon. If you are going to be in the US temporarily (e.g. 5 years or less) I would avoid buying property, unless it represents less than 25% or so of your net worth.
I would also avoid buying investment property anywhere unless you have lived in the area for a time and understand the subtleties of the neighborhoods in which you invest.
As for REITs. They have had a nice run over the past year. Dividend payouts are still above other investments, but I would not jump all-in on REITs at this point. Look for pull-backs and buy into them with small increments. I’ve held a couple REITs throughout the past decade (notably, Realty Income : O), and I have been happy with using that as a tool for balancing my portfolio and boosting my overall yield. Recently, I started tip-toeing back in using REZ (ETF for residential real estate) thinking that at some point the rental market will pick up with the economy (people that have moved back home or doubled up will find their own apt when they get back to work).
