The rand's positive reaction to the political changes of the past three months means that South Africans are in the best position in years to invest in property overseas, either directly or through listed property investments.
Lisa Bathurst, the chief executive of Hurst and Wills, independent overseas property investment professionals, says the property market in the United Kingdom is ripe for South African investment.
The UK market is Hurst and Wills’ top pick. “Northern UK cities such as Manchester and Liverpool are probably the best places to invest at the moment. Carefully chosen student developments in the UK are also offering great returns,” says Bathurst.
“The pound is devalued but is likely to strengthen as Brexit and trade negotiations become clearer. This, coupled with a stronger rand, makes properties effectively 25% cheaper than two years ago for South Africans,” she says.
“The UK has a worldwide reputation for reliability and profitability, and so Britain’s property market continually draws international investors and returns in British pounds, a currency long established as a rand hedge.”