Real Estate Investor Magazine South Africa October/ November 2019 | Page 55

important to understand that with the EB-5 you don’t necessarily
purchase a property in the traditional sense,” says Bathurst. Hurst & Wills tips for sourcing investment
property
“You qualify for a Green Card if you invest $500,000 or more
into a regional centre real estate investment programme. What
this means is that you don’t actually own a title deed. You are in
a scheme, so you must be sure it’s a good one,” she says. “I often
advise clients to invest in property where you have control. This
is not the case here.”
In Europe, you can buy a passport for €280,000 up to €2
million that takes anything from a matter of months to 10
years to be issued. There are hidden warnings to look out for
in these programmes, like the length of stays required and the
future robustness of the program, says Bathurst. “The EU is also
looking negatively at the countries that are seemingly ‘selling’
passports without you having to actually naturalise,” she says. Research the basic economics of the country you’re
investing in.
Consider the property law of the country - are you
limited to what you can purchase?
Don’t go with the cheapest programme. €280,000
may seem like a bargain compared to €500,000, but
if it’s money down the drain it doesn’t make sense.
What is the property investment outline, is it
rentable? Is the location desirable? Will the local
market sustain your investment if the tourists leave?
“Portugal is our top destination for citizenship investment
property because by spending only €350,000 you can get a
good investment property and citizenship for your family with
an easy seven day stay requirement per annum. “Mauritius also offers residency to foreign nationals who
want to stay long term with an $500,000 investment in property
on the island. Successful applicants who stay in the country for
more than two years can also be granted citizenship,” she says.
Cyprus’ programme is very expense, at €2 million. “Although
there are lots of great property options, this is a very expensive
market and I don’t believe all the property being advertised
will be able to sustain its pricing,” she says. However, the
country has experienced 8 years of falling house prices and the
market is now gaining momentum with sales transactions and
construction activity rising strongly. Another up-side is that
you will get a passport quickly. However, from an investment
point of view, having “The bottom line is that the property investment must stack
up. In an ideal world you want a combination of getting the
residency you require, in the time-frame you require, through
an investment that earns you decent returns and offers you a
decent exit once you have your residency, if required,” she says.
€2 million tied up in an uncertain market is a risk. I would
advise caution and doing thorough research before buying,”
she says.
“While we don’t claim to be immigration experts, we do
work closely with them. We also personally visit our markets
to ensure that we are sourcing only the best property for you,”
says Bathurst. “This means that long after your passport arrives,
your property is still working for you, in line with your wider
wealth strategy and your family’s objectives.”
SOURCE Hurst & Wills
SA Real Estate Investor Magazine OCTOBER/NOVEMBER 2019
53