UNITED KINGDOM opportunities increase within the towns themselves . Birmingham and Manchester have seen significant residential property growth .
However , the daunting exchange rate comes into play . How can I afford UK property when it ' s far from home and seems risky ? The answer lies partly in the Rand ' s depreciation against the Pound . In 2010 , the exchange rate was 11.2 Rand to the Pound , but today , it ' s 23.6 Rand to the Pound . The reality is , the Rand is likely to continue losing value against the Pound .
How do you start to invest in the UK ? Start with an off-plan apartment with a turnkey rental solution , backed by a cash reserve of 1 to 1.5 million Rand and South Africans can loan from UK banks covering up to 70 % of the property cost . This approach minimizes exchange rate concerns , as most of the investment is financed in Pounds with a bank in the UK , with the tenant covering the monthly bond repayments .
The apartment will be new , attract the right tenant profile , and offer a lock-and-go lifestyle . Now , let ' s crunch some numbers for a real comparison .
Property Prices Consider a 6.1 million Rand investment in Sea Point , South Africa , versus Chapmans Yard in Birmingham . Chapmans Yard offers 1 bedroom and 1 bathroom , while Sea Point offers 2 bedrooms and 2 bathrooms at the same price point .
Mortgage Bond and Transfer costs Let ’ s start with transfer and bond costs comparison :
Let ’ s consider a mortgage with a 70 % loan-tovalue ( LTV ) ratio for the property
SA Real Estate Investor Magazine SEPT / OCT 2023 130