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
    • 24 Nov 2017
      Demand for secure estate living in Hout Bay has risen sharply in recent years, precipitating a spike in development with estate homes now accounting for 20.24% of the property landscape with the launch of an exclusive new gated development on 26 November adding 20 more units to the existing 1250 estate homes.
    • 24 Nov 2017
      There are some things that money can’t buy – spectacular views from Mouille Point to the V&A Waterfront and a trendy and lively neighbourhood that encapsulates the very best of the Cape Town lifestyle.
    • 24 Nov 2017
      Tshwane’s four-bedroom Mayoral mansion, nestled among ambassadorial residences in the upmarket suburb of Muckleneuk, fetched R5.1 million after spirited bidding at High Street Auctions’ final sale of the year.
    • 23 Nov 2017
      Reserve Bank Governor, Lesetja Kganyago, said that the Monetary Policy Committee had once again decided to let the interest rates remain unchanged with the repo rate at 6.75%, and the prime lending rate at 10.25%.
    • 23 Nov 2017
      As the holiday season approaches, most of us are counting the days until that year-end bonus hits our account. There’s nothing quite like a little bank balance booster to get us in the holiday spirit.
    • 23 Nov 2017
      The Adelphi Centre (now entitled “ARTEM") in Sea Point, Cape Town, is being extensively renovated, and once complete will offer an ultra-luxurious galleria style shopping centre unlike any other seen on the Atlantic Seaboard or in Cape Town.
    • 23 Nov 2017
      If you are looking to sell your home in today’s real estate market, there are certain things that you need to include both inside and outside your house. Today’s generation of home buyers is looking toward a more eco-friendly, energy and water conscious home, and if your house stands out then you are more likely to be able to sell it.
    • 22 Nov 2017
      Most people know of the Community Schemes Ombud Service (CSOS) and that levies must to paid to fund its operations. In this article the experts at Paddocks will address some of the issues that are causing confusion.
        
    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