The property market in the UK is showing excellent growth, while the real value of South African house prices is declining, making now the time to hedge your South African property investments by investing in the UK property market.
International property specialist and Hurst & Wills director Lisa Bathurst said with the slow growth at home it was a great time to diversify into offshore markets, creating a better global wealth strategy.
“South Africans are vulnerable at the moment,” said Bathurst. “As an emerging market, South Africa’s economy is impacted by external factors out of our control. Add to that the external debt, inflation and low employment figures and it seems likely that the negative growth will continue for the next two to three years.”
In July, the FNB Property Barometer showed that when corrected for inflation, SA residential properties had dropped in value. While year-on-year residential properties grew by 4.1percent, with the Consumer Price Index at 4.6percent, real property prices are decreasing.