select
|

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
  
2000
Characters remaining


    Latest Property News
    • 23 Jan 2018
      Many people only start thinking about home-ownership when they are ready to “settle down” or start a family, which is why first-time buyers these days are generally in their mid-30s, compared to those in the previous generation who were usually in their mid-20s.
    • 22 Jan 2018
      Moving away from the city to a country or coastal town and a slower-paced life is a frequent new-year resolution for South Africans, but thorough research should be done before you break free from the hustle and bustle, because making the wrong move could turn out to be a very expensive mistake, and even more stressful for you and your family than staying in the “big smoke”.
    • 22 Jan 2018
      Cape Town is home to many breathtaking and historic homes, but House Invermark designed in 1969 by South African architect Gilbert Colyn, with inspiration from two modernist icons: the Glass House by Phillip Johnson and Farnsworth House by Ludwig Mies van der Rohe is in a class of its own.
    • 22 Jan 2018
      2017 was a challenging year for the South African property market in general, despite small pockets of thriving activity in areas like the Western Cape. As we head into 2018, Tony Clarke, Managing Director of the Rawson Property Group, casts his eye forward to property trends and market influences that could make their impact felt in the New Year.
    • 19 Jan 2018
      Extending from Randfontein in the west to Roodepoort in the east and including the towns of Krugersdorp and Magaliesburg, the West Rand has a plethora of property available to residents who choose to make this unique area their home.
    • 19 Jan 2018
      When it comes to financial planning, doing the work to ensure you’re prepared for unexpected emergencies is just as important as ticking off your other goals and New Year’s resolutions. The beginning of the year is also the perfect time to review your various insurance policies.
    • 19 Jan 2018
      No surprises at the first Monetary Policy Committee of 2018, as Reserve Bank Governor, Lesetja Kganyago, announced that the interest rates would stay at their current levels.
    • 18 Jan 2018
      The Southern Suburbs make up some of the most popular residential areas in Cape Town, comprising charming groups of suburbs which lie to the south-east of the slopes of Table Mountain. It is seen as the city's most expensive residential neighbourhoods with a choice of various private schools, upmarket eateries, wine estates, beautiful homes and trendy apartments.
        
    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