STRATEGIES
5
Open foreign bank account and
move money offshore
It’s also worth remembering that many South
African banks like Absa, Standard Bank and Investec
have direct, or indirect, links with offshore banks and
could be able to assist you in setting up your account.
Once your account is set up, you can move your funds
offshore. But don’t feel you have to use your bank’s
transfer service. There are a number of professional
institutions offering money transfers at competitive
rates, so be sure to get the best deal. Even 20 cents
can add up to a big saving when you are transferring
a few million at a time.
6
Choose your offshore structure
There are three main investment structures
when investing offshore: direct ownership,
ownership through a trust, and ownership through a
company. Each structure has its particular drawback
and benefits, and since the subject is so diverse and
so specific to the individual, we strongly recommend
enlisting the help of an international tax advisor.
Whatever route you choose, be sure that the ongoing
costs of complicated structures are not more than
the potential saving you are making. For the average
investor who does not have the means to purchase a
large number of properties from the outset – simple
is often best.
7
Identify your property
Investing in property is exciting and fun, or
at least it should be. If you have all of the
facts and you don’t feel enthusiastic about a deal,
move on. It may not be for you, but it may be the
right fit for someone else. Be decisive: stand aside
and stay open for the next opportunity. If you are
serious about becoming wealthy in this business, you
will own these properties for many years to come, so
it would be a great start if you like them. The only
thing you should be concerned about is whether or
not someone is willing to pay you a fixed sum each
month to live in your property. If you catch yourself
discussing the finer details of the property rather
than the financial points of the deal, you are on
dangerous ground. Put your emotions aside, and get
into the habit of acting like a business owner.
8
Apply for a mortgage
they will be unable to obtain a mortgage. This could
not be further from the truth, and although you will
be required to produce quite a bit of paperwork to
prove your debt to income ratio, mortgages for
international clients are very common and pretty
straight forward. You may wish to chat to your
local bank like Absa or HSBC, who will be able to
assist you, or simply directly contact a UK mortgage
broker who specialises in dealing with South African
buyers. The product, Loan‐to‐value and interest rate
available will almost certainly be directly based on
your individual circumstances and will vary from one
investor to the next. Mortgages can take time, so be
sure to get the ball rolling as soon as possible.
9
Verify your title deed and complete
all documents from your solicitor
When entering into offshore property
investments, your choice of solicitor is crucial. Not
all solicitors are created equal, and the best ones are
worth their weight in gold when things go wrong.
Very simply, you will not be able to purchase or sell
properties without them. The first action you should
take is to forward payment to your solicitor to
commence local authority searches. These authority
searches can take time, so remember that the sooner
you initiate them, the better.
10
Get your property let
Having collected your keys you
should waste no time in preparing the
property for rental. Each day that now passes is a
day of precious rental lost, and the sooner you can
fill the property with paying tenants, the sooner you
can be on the road to achieving your financial goal
and your next investment property. Find a letting
agent who can help market your property to tenants
looking in the area. As with selecting a solicitor, you
should find an agent who inspires confidence and
who gets results. A great start is to look around the
area and find ‘Let by’ boards to see who is actively
filling houses. At the time of writing, the number one
online property portal is rightmove.co.uk. Not only
is this a great resource for your rental research, but
with a 42% share of the online market, if your agent
is not listed here you will undoubtedly be losing
out... be sure to check.
Many investors are often discouraged from
investing offshore because they believe that
www.reimag.co.za
Offshore Handbook 2016
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