Real Estate Investor Magazine South Africa February 2016

The UK remains the number one offshore investment destination for South Africans. With current Rand volatility, moving a portion of your investment capital into more stable markets, like the UK property market could be a prudent move. The UK property market The UK is experiencing a long period of sustainable growth in both size and value. The property market in the UK is also diverse and relatively liquid. Currently, there are an increasing number of people looking to rent in the UK. Investing in UK property will more than likely yield some solid returns over the next few years for investors In contrast, the South African property market, due to Rand depreciation, has lost around 30% of its value in hard currency terms. Thus, if you’re thinking of getting into property, you may want to 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. So, if you want to invest in property, don’t forget to look outside London. In particular, 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. UK property specialists: Select Property Group Select Property Group (SPG) uses Sable as a strategic partner in South Africa. SPG specialises in a variety of UK property solutions and has experience helping South Africans invest in UK real estate. Giles Beswick, SPG’s Director, had this to say about South Africans and the UK property market: “The British Pound has long been established as a hedge against fluctuating currencies – and the Rand is becoming increasingly volatile. Against a new backdrop that includes the fallout from the recent Fed interest rate rise, high-yielding property assets in the UK are looking increasingly attractive to South African investors. The UK’s highly developed and extensive product portfolio, from student property to real estate in an ever-expanding private rented sector, has helped cement Britain as South Africa’s largest booking centre for international property investment. Our UK investments have enabled many South Africans to generate annual ROI of 7% from rental yields alone.” www.reimag.co.za RESOURCES Sable Group FEBRUARY 2016 SA Real Estate Investor 61

Real Estate Investor Magazine South Africa February 2016 | Page 63