Your offshore property investment checklist:
Determine your objectives and the best strategy to meet them. Consider your budget, risk profile, timelines, family goals, tax strategy, comfort levels and investment preferences. These will help you form your own personal checklist when looking for the right investment.
The most important starting point is to do your research. Look at the micro and macro economics of the areas you are looking to invest in. Research the options, the returns, capital investment required and most importantly the supply and demand in that area. Use reputable companies to assist with your research, and make sure that you do your due-diligence on any projects and developers that you plan to engage with.
3. Moving funds offshore
Do you already have funds offshore? If so, do they require any notice to access? If you do not have funds offshore, you will have to apply for tax clearance. You should also look at the best ways to move your money, at the best possible rates. The rand is a volatile currency and can impact what you can afford offshore. Know the rates and look at using specialist FX brokers which usually offer more competitive exchange rates than your bank.
Look into how you plan to fund your offshore property investment. Is it a cash purchase or is there any leveraging options available? Borrowing offshore makes sense but is subject to strict criteria, so do your research and find out if this applies to you.
5. Arm yourself with expert advice and as many tips as you can.
Speak with independent advisors who can give unbiased information, and have local knowledge. Tax specialists, investment experts and your wealth manager may also be able to point you in the right direction and help to determine the best route forward inline with your own financial goals.