Why EVERY South African should invest in offshore property today!

The idea of investing in an offshore property can be daunting to many and sometime feels a little out of reach…

However it could be closer than you think (And the benefits are certainly worth it)!

Here are 5 reasons why you should consider investing in offshore property:

1. Get the upper-hand This is arguably the most attractive and important part of investing in offshore real estate; leverage is power. Currently bond rates in South Africa range from 7-10%. We have been able to help our clients get a sub 1% rate in certain international market places. This means you will be able to lower your interest rate repayments, maintain your yield and capital appreciation, resulting in higher margins on your investments.

2. Diversify It is no secret that the key to risk management is diversification. This is why all great investment portfolios diversify their investments. We believe that by adding bricks and mortar in a range on international jurisdictions is a great way to diversify and help our clients to do so. International property markets can also offer consistent long term return if an informed investor is managing the investment; which is an area of expertise for us.

3. Stable Jurisdictions Investing offshore can significantly improve your returns as foreign property markets can offer much higher growth potential. Stable economies offer a high degree of infrastructure spend which offers regeneration opportunities to investors wanting to get in early, plus they work within a highly regulated environment which increases the protections on ownership and reduces the risks associated.

4. Generate Passive Income An investment on property gives you the ability to earn passive income in a hard currency. This will allow you to pay for the mortgage interest and repayments, thus increasing your equity stake in the property, increasing the value over time. In some cases we have been able to achieve a positive cash flow allowing our clients to dip into the rental income.

5. Have a Plan B Some investment properties (depending on the country) afford you the option of getting a second passport/citizenship. This makes the investment case that much stronger for a South African, making travel a lot easier as well as a number of other things (*link to 5 reasons why you need a plan b*)

Now that you know the benefits, find out how you can get started today by booking a free consultation with one of our specialists below.