South Africans can buy properties in key UK cities such as “Manchester at a 15% discount” to what they could five weeks ago.
- The UK’s vote for Brexit has created a “solid opportunity” for South African investors to diversify their portfolios with British real estate
- Following the referendum result the pound fell to its lowest level for 31 years, meaning investors can buy assets in key cities such as Manchester at a “15% discount”
- With none of the key investment fundamentals changed, UK property offers a strong investment alternative in “an economic powerhouse”
It’s long been one of the country’s preferred international investments, and now South Africans are being encouraged to further consider buying UK property.
The result of the EU referendum created a degree of immediate economic uncertainty in Britain, resulting in the value of the pound falling to its lowest level for 31 years. This means that for any investor dealing in dollar-pegged currencies, assets in the UK just got considerably more affordable.
But while equities markets experienced immediate volatility following Brexit, the fundamentals that underpin the UK property market remain unchanged.
This presents a significant opportunity for South African investors to diversify their portfolios with British real estate. Speaking to MoneyWeb George Radford of IP Global was keen to outline the currency window of opportunity that’s just been created.
“Today, you can buy property in London or Manchester at a 15% discount to what you could five weeks ago [in US dollar against pound terms]. This has created a solid opportunity for South African investors to purchase UK property at reduced prices.”
Focusing on yields can deliver regular returns during the two-year process it will take the UK to negotiate its way out of the EU. Key cities such as Manchester, home to the country’s highest property investment yields, have gained a marked increase in interest from the global investor community following the vote on June 23rd.
It will be those investors that act now that will earn the highest levels of appreciation once all immediate uncertainty has lifted.
Speaking on June 28th, Andrew Rissik, Managing Director of Sable Group Forex and International Projects, underlined the strength of investing in the UK and the long-term growth potential of assets once Britain completes its exit from the single market.
He said: “I am certain, like always, the UK will adapt and flourish. So we will have a little wobble – nothing is forever. From a South African perspective, the UK still represents an economic powerhouse, with rule of law and a great democracy.”