South African expatriates working in Britain returning to invest their foreign earnings in local property with a view to eventually resuming permanent residence.



The rand's deterioration in value against the British pound has given rise to the trend of South African expatriates working in Britain returning to invest their foreign earnings in local property with a view to eventually resuming permanent residence. Buyer profile indicates the trend being particular active among young South Africans who have temporarily relocated to Britain to pursue work opportunities or to travel. Fish Hoek-based principal Diane Garner who first experienced the trend late last year says numbers and seriousness of interest stepped up over the holiday period. In her experience all buyers were former Fish Hoek residents armed with good deposits and intent on utilising rental income to redeem the bond. Garner says South African banks are happy to advance bonds to foreign-based homeowners, providing the applicant can produce evidence of steady income, provides a good deposit and cedes the rental income to the lender. PA Homeloans manager Eastern Cape Michelle Scherer says the originator serviced three bonds, all with large deposits, on Eastern Cape homes to South Africans working overseas during the recent holidays. All three homes were being let. Gordon Battersby, Maxprop Franchising MD, says the trend is also apparent in Durban. Two South African women in their early twenties and employed as house cleaners in the Scilly Isles had saved enough to pay in cash for a Berea apartment over the holiday period. However the apartment is not for letting, but intended for one-month's holiday use by the new owners every three months. Battersby says the trend is being fanned by the desire of South African youths to explore and lack of job opportunity in the local workplace. Keeping up to date on local information on the property market he says has been made easy for expatriates with the advent of Internet property listings. Rodney Hayter - The Property Professional Online - January 2002