Real Estate Investor Magazine South Africa June 2015 | Page 59

stronger currencies, and more stable economic and
political environments whilst benefiting from low
interest rates for financing.
Locations in London still show particularly high
potential for strong returns. Population has just
surpassed its 1939 peak of 8.9-million, and is now
expected to reach some 11.3-million by 2050. The city
continues to wrestle with a housing shortfall that is
a long distance from meeting demand. 2014 Saw an
average price increase of 11.1% throughout the year.
Forecasts still point to growth of 22% in the years up
to 2019.
Australia is now one of the top three destinations for
Chinese investors and this has helped drive the Sydney
residential sector. The city continued to lead the
national property market with 13.1% annual growth
across all dwellings. Rental markets remained strong,
despite the high price growth, with typical yields at
4.5% in the same period.

LOAN-TO-VALUE (LTVS) RATIOS AND INTEREST
RATES:
• In the United Kingdom, mortgage LTVs were raised to 70%,
for conservative South Africans an LTV of 60%, will be
preferable with an interest rate circa 3.5 - 4.5%.
• In Australia, mortgage LTVs were raised to 80%, for
conservative South Africans an LTV of 70%, interest rate
circa 4.5 – 5.0%.

RESOURCES
deVere Investments South Africa (Pty) Ltd.
www.reimag.co.za

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