Young South Africans looking to buy property should consider investing in the UK. Not only is it a great way to earn solid returns in Pounds, but it also helps protect you from Rand depreciation. Our sister company, Sable, can help you start investing in the UK property market.
Protect yourself from a declining Rand
Since 2011, the Rand has devalued by more than 100% and, unfortunately, there are no signs of improvement in the medium-term. Considering current Rand volatility, moving a portion of your investment capital into more stable markets, like the UK property market, is a sensible decision.
The UK property market
The UK has a diverse and extensive property market which is experiencing a long period of growth in both size and value. There is a consistently high demand for property and, because of this, there are almost always new opportunities for investors. There is also an ever-increasing number of people looking to rent in the UK. Getting involved in a buy-to-let or similar investment will more than likely yield some solid returns over the next few years for investors.
In contrast to the UK, South African property market has lost around 30% of its value in hard currency terms. If you’re thinking of getting into property, you should perhaps consider looking beyond South Africa.
There is more to the UK than London
Most analysts agree that the London property market is fully priced right now. If you want to invest in property, don’t forget to look outside London. Keep an eye on places that will benefit from Government backed economic investments like those described in George Osborne’s “Northern Powerhouse” plan.
These cities could be sites of major growth, which could mean better than usual returns for investors who get in early enough.
Thinking of buying or getting into offshore property investment? We can guide you through the process and take care of all facets. Get in touch with us at rei@sableinternational.com or call+27 (0) 21 657 1570 (SA) or +44 (0) 78 438 00079 (UK)
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