What Brexit means for South African Property Investors

Feb 20, 2019 | All, Industry, News

With the ‘Brexit uncertainty’, the buyer’s market in the United Kingdom is creating opportunities for savvy investors.

While UK property prices have flatlined in cities like London, they are still growing in other regions as investors look for yields and value for money.

So, what does this mean for South African investors looking to get involved in the buy-to-let market in the UK post-Brexit?

Investments for South Africans

The bigger and more immediate argument is that the Great British Pound (GBP) is weak, and so for international investors, there is an opportunity to buy property at an effective discount. As soon as any deal is finalised, the pound will bounce back and so there is a clear argument why people should do something as soon as possible.

Once the dust has settled post-Brexit, all indications are that the property market will gain momentum, which means now is the time to get into this investment class.

Prices start from around £50 000 (R880 000) and have gross yields of around 9%. These properties are all fully managed to make them ideal for offshore investors who want to own and enjoy good cash flows.

Prices start from around £50 000 (R880 000) and have gross yields of around 9%.

According to SA Commercial Prop News, “activity in the UK property sector has seen South African Investors conclude 29 deals with a combined value of R3.38 billion (£190m) in the past few years.” These deals were advised to South African investors by UK building and project consultancy, Paragon.

Look to the Future

Brexit chaos is battering the UK property market, but SA investors with an appetite for volatility are snapping up real estate in the country.

South Africans are moving away from the instability of the rand and seeking a hedge. Even with Brexit, sterling has settled, and in fact strengthened, as the outcome has already been costed into the currency.

Recent studies have revealed that by 2025 only 40% of Londoners will own their properties. In addition, it has been estimated that only 26% of those aged between 20 and 39 will be on the property ladder by this date. This trend is spreading nationwide in the UK.

So, if you decide to invest in the UK today, you could be a part of the 60%.

With the help of our highly effective scheduling team and legal team, at PropertyFox, you can be well-informed throughout your property journey. Contact us today and we’ll take it from there.

Related Articles

Types of Property Buyers

When it comes to selling property, you will be approached by various types of buyers. For a quick sale, it is important to understand the different types of buyers. To attract the right buyer, the marketing should focus on a specific type of buyer. Different features...

read more

Aircon VS Ceiling Fan

The summer heat can lead to desperate times and desperate measures. While we are on the verge of the end of summer, unpredictable weather conditions like heat should not get the better of you. Standing in front of an open fridge might seem like a good idea, but it’s...

read more

Stay Updated

Sign up for the PropertyFox Newsletter

We will never share your email with any third parties