Exchange rates add 'increased value' to SA properties

Estate agents with overseas connections should promote the increased value that current foreign exchange rates offer overseas buyers in South Africa today, says Mike van Alphen of Rawson Finance.

Quoting Currencies Direct, a foreign exchange organisation , van Alphen said that a year ago one US dollar cost R7.50 and today it costs R9.00. A British pound would have cost around R12.00, today it is priced at R14.00 and the euro has appreciated even more markedly in relation to the rand today - by some 20%.

"The rand has, therefore, depreciated by 17 to 20% in less than one year," said van Alphen. "This, in effect, means that the property a buyer looked at last year can now be had at a remarkable discount, not only because of the current exchange rate but also because, if it is in the middle and upper bracket, its price escalation over the last year will have been either minimal or non-existent."

Van Alphen added that many middle and upper bracket homes have, in nominal terms, been discounted by 15 to 40% in the last three years. This again, he said, makes buying in South Africa now very attractive.

"It is," he said, "sometimes alleged that South Africa is less than friendly to foreign buyers. This is not the case: our organisation can and does get 50% bonds and these are regularly available to foreign buyers throughout the market, provided that they are not self-employed or in work that is considered 'risky'. However if they are retired they must be able to show that they have an assured income from reputable institutions - and since the easing off of the global crisis, this is usually not too difficult to prove."

  Comment on this Article

  Please login to post comments

Post to my facebook wall
Characters remaining

    Latest Property News
    • 19 Apr 2018
      The rental market is a cut-throat sector of the real estate market that waits for nobody. According to Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa, first-time renters need to be fully prepared before they even start the process of looking for a place to rent in order to avoid the disappointment of losing out on their ideal property.
    • 19 Apr 2018
      Choosing to buy your first home instead of continuing to rent is a big decision that will usually take some time to put into action, but the sooner you can save up a sizeable deposit, the closer you will be to reaching your goal.
    • 18 Apr 2018
      Selling your home is no small task and as you will quickly find out, there are a lot of misconceptions about the process. Gerhard van der Linde, Seeff's MD in Pretoria East lists the top 5 misconceptions when you are selling your home.
    • 18 Apr 2018
      The Cape Town municipality is now installing water-management devices at properties that have been non-compliant with the new level 5 water restrictions and there are talks of fines between R5,000 and R10,000 for households that use too much water.
    • 17 Apr 2018
      The recent interest rate cut has stoked the coals in the first-time buyer’s market. At least for the next two months until the next interest rate announcement, homeowners are guaranteed lower monthly instalments than in the previous quarter. But, is it wise to take out a 100% bond just to enter the property market while interest rates are low?
    • 17 Apr 2018
      By the end of 2017, very few housing markets remained unaffected by the mounting pressure of the prevailing economy and political climate but some fared better than others, especially sought-after, well-situated suburbs like Parktown North that tick the top boxes on buyer’s wish lists.
    • 17 Apr 2018
      With urbanisation at its peak and population density in major cities reaching frustrating levels is it any wonder that more South Africans are choosing to move away from the chaos to a quieter life?
    • 16 Apr 2018
      When you are selling your home, you will have potential buyers coming to view it. During these times, you will need to ensure that each room of your home is clean and beautifully decorated.
    Subscribe to the MyProperty Newsletter

    Last Name  
    Email Address  
    Email Frequency
    Share this Page

    For Sale Property
    Rental Property
    More Options
    Connect with us