Still time to buy in London
Why London property is still good for SA investors
SA property investors take a fresh look at the British capital, given the weaker pound and a dip in house prices
Savvy SA investors who bought a pied-à-terre in London eight years ago, in the aftermath of the global financial crisis, would have since seen a substantial 75% return on capital in sterling (see graph). In rand terms, investors would have doubled their money, given our currency’s depreciation against the British pound of roughly 25% in the eight years to the end of September. However, even if you had bought a London pad at the height of the global housing boom in the third quarter of 2007 before prices dipped in 2008/2009, your 10-year rand return would still have been a substantial 85%. The latter doesn’t take into account any income that you may have earned if you had put a tenant in your apartment.That raises the question: is it too late to enter the London housing market? It doesn’t seem so. Global real estate investment and advisory firm JLL believes the British capital remains a safe bet for high-net-worth South Africans looking for a hedge against ongoing political and econo...
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