Real Estate Investor Magazine South Africa November 2015 | Page 64

INVESTING

Q&A with Giles Beswick
Securing a profitable property investment overseas

Real Estate Investor Magazine spoke to UK property expert and Select Property Group Director Giles
Beswick regarding what South African investors looking to acquire a rand-hedging asset abroad should
consider when making a property investment in the UK.
REIM: Giles, yourself and a team from Select Property
Group came over to Johannesburg in August to exhibit at
the 2015 MoneyExpo, and you’re back here again now.
What’s prompted the return to SA?
Giles Beswick: We’ve noticed a significant uplift
in interest in 2015 from South Africans looking to
purchase British real estate. As property values in
South Africa continue to struggle in real terms as a
result of the rand’s devaluation and high inflation,
investors have been enamoured by the UK market’s
diversity, stability and ability to not only drive strong
returns but, crucially, high returns in a strong currency
like the pound.
REIM: Of course, the economic advantages of moving
money to the UK are clear. But why property specifically?
What makes the UK property market so strong?
GB: Property prices have increased by 9% year-on-year
according to the latest figures, while buy-to-let investors
have seen their returns grown by 1,400% in the last 19
years. Quite simply, it’s an asset that has a proven track
record of growth. Crucially, too, the property market
can boast products that are resilient towards external
economic factors, such as student property which is the
UK’s number one asset. To give some context to the
strength of the UK student property market, as an asset
it achieved consistent returns for investors throughout
each year of the global recession, while alternative
assets such as bonds and equities floundered.
REIM: The UK is South Africa’s largest booking centre
for offshore investment, so clearly investing in Britain is
not something that’s new for many investors. But for those
that have never made an investment outside of the country,
what should they first consider with the UK market?
GB: It’s vital that one chooses the right product in the
right location. Carefully assess whether an investment
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NOVEMBER 2015 SA Real Estate Investor

can offer compelling supply and demand criteria. Is
there demand for this particular type of property in
this particular city? This approach will ensure that your
investment will have little trouble attracting tenants,
thus safeguarding your yields.
REIM: So where is the best place in the UK to invest?
Many international investors are traditionally drawn to
London, is this still the best market?
GB: London has an enviable track record of making
investors a lot of money; for example, those who bought
a property in the capital at the average price in 1995 of
£126,295 will have seen a return of £485,045 on their
investment in June 2015. However, the latest figures
suggest that London has hit an affordability ceiling.
Knight Frank recently noted a reduction in interest in
London property from key international communities,
as only the very rich can afford to purchase property in
the market.
REIM: So if London is seeing a decline in its growth cu