Real Estate Investor Magazine South Africa April/May 2019 | Page 52

CYPRUS
Take the Sting out of your
Green Mamba’s bite
Poor property yields in South Africa have investors looking
abroad for better returns, and the bonus of a second passport.
W
ith markets in turmoil the world over, and South
tourist sectors. In some countries, a specific residential need is
Africans having to cope with the reality of capi-
also being addressed.
tal erosion for many years owing to our struggling
Many of the destinations that offer property investment
economy, more and more investors are now looking to diver-
opportunities come with an added benefit that has proven
sify with property investments abroad. A bonus for many is
popular among South Africans: residency or citizenship
the opportunity to acquire a second passport in the process, rights. These include countries in the European Union and
according to Latitude Consultancy, an investment immigra-
other regions - such as the Caribbean - that offer a far stronger
tion consultancy.
passport than South Africa's green mamba.
We’ve seen a slowing of the domestic property market
For example, a South African passport affords visa-free
throughout the country, including in Cape Town ⎼ evidenced
travel to approximately 100 countries compared to a St. Kitts
by the average rental
& Nevis passport which sits at over
increase for the country
150.
coming in at lower than the
Cyprus, Malta and Portugal are
inflation rate last year. The
well-known EU options for South
result? Buyers are starting
African investors, while there are also
a South African passport affords attractive options in North America
to look elsewhere for the
opportunity to protect their
the Caribbean. The Caribbean
visa-free travel to approximately and
capital and earn solid rental
Citizenship-by-Investment
100 countries compared to a St. programmes are offered by Antigua
income on their property
investments, according to
Barbuda, Dominica, Grenada, St
Kitts & Nevis passport which sits at &
Latitude Consultancy.
Kitts & Nevis and St Lucia. There
‘Many clients are looking
are also Residence-by-Investment
over 150.
for educational opportunities
programmes offered by highly sought
for their children and are
after countries such as Australia,
attracted to the European or
Germany, Canada and the United
North American residence
States.
programme options. Those looking for a passport for ease of
According to Woest, when looking at a Residence- or
travel and who wish to remain living in South Africa will want
Citizenship-by-Investment programme, a number of factors
to consider Citizenship-by-Investment programmes such as
should be considered, including:
those offered in the Caribbean, says Sandra Woest, Senior
•
Likelihood for capital security and appreciation
Director, Market Development Southern Africa, Latitude
•
Past and predicted future returns on property
Consultancy.
investments
‘As the majority of these programmes have a real estate
•
The local tax situation relating to an investor and the
component, they are perfect for those who want to diversify
returns on the investment, including inheritance and
their investment portfolio, see solid capital growth gains and
wealth taxes
earn rental income while providing greater security for their
•
Ease of travel provided by the passport of the particular
families.’
country
A number of countries offer attractive options for investors
•
Educational opportunities available to citizens
who have the means to purchase property in Euros or
•
The number of family members covered by the
Dollars and achieve currency diversification. Largely based
programme
on the returns that tourism brings, these property investment
•
The size of the investment required to qualify for a
options are in locations where international governments have
particular Residence- or Citizenship-by-Investment
partnered with the private sector to develop residential and
programme.
hotel accommodation that meets the growing demands of the
“
“
50
APRIL/MAY 2019 SA Real Estate Investor Magazine