The South African Rand is one of the worst performing currencies in the world.  Over the past two years the Rand lost more than 24% against a bench mark currency – the British Pound Sterling.  Over the same period inflation in South Africa has gone up from 4.9% to around 11.4%.

Between the deteriorating Rand and higher inflation, people have lost more than 40% of their Rand based wealth over the past two years. 
By investing in low risk offshore property, investors can diversify their property and investment portfolio. Firstly offshore and secondly in a different property class namely ‘Class A’ commercial.  Moreover everyone can now protect the wealth they have created by hedging some of their investments against the local currency.

Dubai is one of the most exciting and lucrative investment arenas the property market has seen in recent years. This fast growing city offers year round sunshine, outstanding leisure facilities and a growing economy that makes Dubai one of the most desirable investment centers on the global stage.  The 46% forecast increase in the population from approximately 1.5 million to over 2.2 million by 2010 and in tourism from 6 million to 15 million, promises a strong future demand for properties, specifically commercial, and excellent return on investments.

Dubai is one of the safest cities in the world and continues to attract companies, individuals and billions in foreign investments every year. The city is expected to maintain GDP growth at 11% per annum. The city also boasts world record wonders such as:
  •  the biggest airport
  •  the largest waterfront development
  •  the biggest entertainment park
  •  the largest mall
  •  the tallest tower
  •  the largest single phase development
  •  the only 7 star hotel in the world
  •  and the biggest man made marina
“Watching where the ‘big names’ invest is always a good indicator for the rest of us,” says JP Dippenaar, CEO of MaxVest. Donald Trump is constructing a tower on the trunk of Palm Jumeirah in Dubai and is just one example of international brands identifying with the potential of the city. South African investors may well consider following in their footsteps or get at least a ‘fraction’ of that stake.

Fractional Investments can be defined as the collective ownership of an asset, usually one with a high monetary value, such as offshore commercial property. “Our products allow new and sophisticated investors to structure and balance the capital growth and the income generated by their investment to suit their needs,” says JP Dippenaar. 
The product gives investors the choice of receiving high returns from the income or growth of the property investment or a combination of the two. This, for instance, presents the opportunity to avoid negative gearing from day one when investments are financed.
Investments start from £12,500 which is approximately R200,000 at R16 to £1. Innovative investment structures deliver yields of up to 15% and conservative projected capital growth in excess of 125% over five years. “This investment product simplifies offshore investments and makes it easy and accessible to everyone,” says Linda Erasmus, CEO of Fine & Country South Africa.

Investment into the first project closed on the 30th of June and was 30% over target at the time.  “The next project will launch on the 1st of August, and we are confident of even better results.  You can plan all you want, but ultimately the market decides what it wants.  A 30% over subscription is good enough indication for us that this is the product the market has been waiting for”, says JP Dippenaar.

Dippenaar concludes by saying that “MaxVest is pleased to have brought this product ‘home’. Investing in offshore property is no longer the painful process it once was. I believe Dubai is set to continue the trend of being a model modern city. With the many activities and events available to tourists, it is an unquestionable reality that the city’s property prices are positioned to soar well into the future,”

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