We are often asked by South African FINWEEK to advise investors – read the article here

Wealthy South Africans have a penchant
for homes in the EU, investing into places
like Cyprus, Mauritius, Malta, Portugal and
Spain and even the Caribbean islands, many
of these purchases made within those
countries’ residency or citizenship schemes.
Minimum property purchase price
requirements within these residency
programmes range from €270 000 in Malta,
€300 000 in Cyprus and €500 000 in
Portugal and Spain.
Outside of residency and citizenship
programmes, the UK, and in particular
central London, has been the go-to
investment destination for those able to
afford the historically bloated prices.
But Brexit turmoil has changed that
somewhat. Rental yields in London are
now averaging around 1.5% to 2.5%,
significantly below the 5% to 7% generated
further to the north of the country.
Craig Illman, director of Propwealth, a
South African-run UK property investment
company, says a UK property can be
mortgaged as long as the value of the
property is over £80 000. Interest rates
range from 2% to 4%.
“Normally a minimum 30% deposit is
required for offshore buyers. And the more
cash put down, the better the interest rate,”
says Illman.
“In Liverpool, prices are low and yields
are high,” says Illman. “Here a one-bedroom
refurbished apartment starts at £55 000
with a 6% to 7% net yield.”
That price however requires a cash
purchase.
In prime central London a two-bedroom,
one-bathroom refurbished property will
generally come with a minimum price tag of
£555 000 and a yield around 1.5%, Illman
tells finweek.
Management fees on a buy-to-let
property, he says, are normally 10% plus
one month’s rental on the initial lease. ■