select
|

SA on the radar again for overseas buyers

“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,” says Berry Everitt, MD of the Chas Everitt International property group.

“People all over the world are searching for safe havens for investing and SA with its stable banking system and growing economy is increasingly perceived as a good option in this regard, as is clearly reflected in the fact that at least 30% of the enquiries we’re receiving via our marketing websites now are from outside SA.

“Most of these are coming from the UK, the US, China and Germany, but we are also seeing interest among investors from many other European and Asian countries, as well as Russia and the Middle East.”

Overseas investors, he notes, generally don’t intend to live in SA full-time, “and certainly at the moment they are most interested in buy-to-let properties and second or holiday homes that they can acquire at good prices now and resell at a profit in the medium-term.

“And if SA handles their growing interest correctly, it has the potential to significantly improve the housing market countrywide, and boost the economy, by helping to mop up the extra supply of homes that is keeping the lid on prices.”

Indeed, one need only look to the US market to clearly see the potential positive effect, says Everitt. “Foreign investment in US property has jumped 24% in the past year to US$82bn, and now accounts for 8% of all home sales, according to the US National Association of Realtors (NAR).

“However in holiday destinations such as South Florida, international buyers account for 25% of the market and their interest has also been a real tonic for the local construction industry, with new home building showing a 20% rise in the three months to end-September.”

And similar effects are now being observed in other markets popular with foreign investors, including some like California and Arizona, which were particularly hard hit when the housing bubble burst, and in New York, where an estimated 15% of sales are now being made to international buyers, he says.

“In fact, so noticeable is the positive influence of international buyers that two senators are now even sponsoring new legislation that, if passed, would mean that foreigners who spent US$500 000 on residential real estate would automatically qualify for a coveted US visa.

“Now SA might not need to go that far, but we should certainly not be looking askance at overseas investment, or trying to discourage it in any way.”


  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 23 Feb 2018
      RE/MAX Property Associates’ Table View Office, which services property buyers and sellers along the Table Bay coastline and surrounds, has recently sold a home in Woodbridge Island for R11 million – the highest price paid for any home in the sought-after security complex.
    • 23 Feb 2018
      Choosing to invest in an overseas property can be daunting. But as more and more investors recognise the value of a diversified portfolio that includes property outside of their own country of residence, international property investment is growing in popularity.
    • 23 Feb 2018
      The positive change in South Africa’s political landscape is paving the way for an upswing in the local property market.
    • 22 Feb 2018
      An excellent credit score is one of the most priceless assets a potential home buyer can have. This tool has the power to secure favorable mortgage and refinancing rate, influencing everything from the size of the loan repayment to the interest rate on the home loan.
    • 22 Feb 2018
      What do you do if you love your home’s location and the area, but the home no longer fits your growing family’s needs? Do you stay and renovate your existing home or find a home that meets your developing criteria?
    • 22 Feb 2018
      While every owner wants to sell their property at the best possible price, overpricing a home can be the kiss of death for a sale.
    • 21 Feb 2018
      Given the hand they were dealt, government has performed a delicate balancing act which it is hoped will serve to reignite confidence in investment in South Africa, regain our global credibility and satisfy the credit ratings agencies, says Dr Andrew Golding, chief executive of the Pam Golding Property group.
    • 21 Feb 2018
      The real estate mantra, ‘location, location, location’ remains a strong market influence regardless of the prevailing economy, with suburbs like Rondebosch enjoying the buffering benefit of being ideally situated.
        
    X
    Subscribe to the MyProperty Newsletter

    Name  
    Last Name  
    Email Address  
    Email Frequency
    select
    X
    Share this Page

       
    For Sale Property
    Rental Property
    More Options
    About
    Connect with us
    FEEDBACK