Why should I invest in offshore property?
With an unpredictable political system and volatile currency, South Africans are increasingly looking to keep their money offshore. Whilst stocks have always offered attractive returns for investors, property is considered the most stable asset to compliment any wealth strategy.
At present, the South African economy accounts for less than a percent of global GDP, and order to benefit from global growth, it is important that South African’s invest in markets that are offering better growth. Owning property in hard currency is a sensible hedge against rand investments, and returns from property can usually provide both capital growth and an attractive monthly yield. It’s also an asset class that can easily be leveraged, and can usually be structured tax efficiently.
For some people, owning property overseas is not just about the returns, but may be as part of a life plan for themselves and their family. Some South Africans are investing in property to acquire residency, ensuring a plan B for their future or an overseas education for their children.
What is a buyers agent and do I need one?
Buyer’s agents are professionals acting exclusively on behalf of a property buyer, assisting the client throughout the entire purchasing process; from sourcing properties that correspond to the clients’ requirements to negotiating the best possible price and terms with the seller. We can often negotiate a better price than a private buyer could manage because they have local knowledge and networks.
Buying agents look at the different markets, keeping abreast to countries and areas offering the best returns. It is our job to know how the markets are performing, identifying the key markets to invest, as well as be aware of financial, tax and legal implications that may impact your decisions. We can preview properties on behalf of our clients, short-listing only the most suitable, saving you time and costly mistakes.
As an independent company, we work exclusively for the buyer. This allows us to offer the largest possible portfolio of properties, and give advice that best serves our clients’ interests.
Why is Hurst & Wills best positioned to assist?
Are Hurst & Wills an estate agency?
How does the process work with busy international clients?
What are the tax implications for non-residents purchasing property?
Each country has its own tax system, and the tax implications of any property purchase must be considered. Income Tax from rental income, and Capital Gains Tax are the most commonly levied taxes globally. We are not tax experts so always seek your own independent advice from your tax and accounting specialists. However, as a general rule, buying a property or two overseas is fairly simple from a tax point of view. South Africa has a double tax treaty with many countries, so you never pay too much tax. You may have to fill in a form at the tax services in that country, but this can often be done online or using one of our preferred partners who will charge you a nominal fee.
Download our country buyers guides to learn more
What is the process to fund a foreign property purchase?
Similarly, property overseas can be funded using money from South Africa. There are limits as to how much can be repatriated annually, though currently you can utilise your individual offshore allowances of up to R11 million (R10m foreign capital allowance and a R1 million discretionary allowance) per calendar year. There are also ways of obtaining a bond to maximise your investment, both locally and offshore, borrowing up to 75% at attractive interest onshore rates.
Hurst & Wills have finance partners who can quickly ascertain your options for leveraging our investments. Please get in touch to hear more.
Is Investing offshore only for those with Millions of Rands?
Are the property investments cash-only?
How does the exchange rate impact my investments?
Does your investment property portfolio offer the best returns available?
Do your properties qualify for the citizenship and residency programs?
We have an extensive portfolio of properties for residency programs, across the globe. We do not claim to be immigration experts, as we are a property advisory first and foremost. Our job is to make sure the property element of your investment stacks up. We carefully source properties that fit into the stringent criterias of citizenship programs across the globe, and have a good knowledge and understanding of the individual programs. We also partner with the best immigration, legal and tax partners to offer you access to the best experts.
What is the process of working with Hurst & Wills?
You’ll meet with one of our team, who will listen carefully to your requirements, your financial goals, family objectives, current portfolio and your wealth strategy. We can also do this meeting with your financial advisor if you so wish. Our next step is to present you with a carefully researched shortlist of properties for you to choose from. Once you have selected your property, we work with our local and foreign partners to guide you through every step of the process, negotiating price and terms on your behalf and seeing the sale through to completion
Whilst we encourage you to always seek your own financial and tax advice, we can consider this when suggesting your property plan. We can refer you to the best specialists and advise when to invest to take advantage of discretionary allowances, and the best foreign exchange rates, and most efficient tax planning.
We believe in lifelong clients, not on a one-off sale. We are committed to helping you build your international property portfolio, and can advise on a long-term strategy including diversification, resale and exit strategy.
I'm looking for something I don't see on your website, can you help?
Please note that this service is subject to minimum investments and professional sourcing fees will apply.
Student accommodation is very popular, but how do you deal with the tenants?
Will it be difficult to find tenants and maintain when I’m thousands of km away?
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