Why Are South African Property Investors Flocking to the UK?

August 7, 2020

Driven to look beyond their own borders by a volatile housing market and fluctuating currency, many South African property investors are setting their sights on the UK. So what is it about the UK buy-to-let sector that holds such appeal to investors from South Africa?

“Living in Cape Town has given me plenty of insight into why the UK is such an exciting prospect for South African property investors. There’s definitely a sense of comfort that comes from the similarities between the two countries’ systems, which means that many South African investors are currently looking to grow their wealth securely in the UK.”

Dale Anderson, Managing Director, Fabrik Invest

That sense of comfort and security is one of the UK’s key attractions. Despite Brexit and despite the COVID-19 pandemic, the UK offers a greater sense of political and financial stability and solidity than South Africa does at the moment. 

The UK is also home to a healthy property market with strong drivers for future growth. The country has been falling short of its new home construction targets for years. By not keeping pace with its growing population and the trend towards fewer people living in each household, the UK has an entrenched undersupply problem. This is excellent news from an investor’s standpoint.

“In 2019, there were 19.2 million families, an increase of 0.4% on the previous year, with a 6.8% increase over the decade from 2009 to 2019… The number of people living alone has increased by a fifth over the last 20 years.”

Office for National Statistics, Families and Households in the UK: 2019

Another attraction of UK buy-to-let is the substantial yields that investors can enjoy when they choose the right location in which to put their money into property. Liverpool tops the table when it comes to yields, with the Totally Money Buy-to-let Yield Map 2019/20 reporting returns of 10.0% for the city’s central, L1 postcode area. A further two Liverpool postcodes (L11 and L6) fall within the top ten areas, having delivered yields of 8.67% and 8.12% respectively. 

The ease with which South Africans can invest in the UK is another draw. Much of the property investment process is carried out online these days, although many investors still prefer to talk through their options in person – hence Fabrik Invest’s Cape Town office. 

Managed property solutions that mean no involvement (other than financial) for the buyer add further weight to the UK’s attractions. South African property investors can rest easy, knowing that their investment is being well looked after by a management company that specialises in doing everything from dealing with tenants to undertaking repairs. 

Finally, the choice of ways to invest that the UK offers appeals to many South Africans. Investors can choose to transact their business personally or do so through a UK limited company, if that better suits their financial needs.

The Roscoe is a prime example of the kind of UK property that South African investors are seeking. Located in the central L1 postcode district, the development provides contemporary one-bedroom apartments that are ideal for both students and young professionals. Just seven minutes’ walk from the University of Liverpool and Liverpool John Moores University, The Roscoe means students can easily get to class on foot, as well as being able to access the delights of the surrounding Ropewalks creative area and luxurious Georgian Quarter. Apartments at The Roscoe are available from £135,950, with a current offer of up to £5,000 off the asking price (limited time only). A net yield of 6% is guaranteed for two years.

For further details and to progress your property investment plans, contact the Fabrik Invest team by calling +44 20 8175 9891, emailing enquiries@fabrikpropertygroup.com or visiting www.fabrikinvest.com.

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Wayne Venter

International Business Development Manager

Wayne has been in the property industry for over 17 years. He started out selling residential properties in the northern suburbs of Sandton, South Africa, for one of the bigger real estate brands, before moving to a boutique, Johannesburg-based property developer. He worked at a senior level, specialising in residential developments on the north coast of KZN and various other areas of Northern Johannesburg.

Wayne moved to selling luxury, free standing homes and apartments in Sandton, Johannesburg in 2006, having joined the Country’s leading real estate brand and within six months was leading the team. In 2008, he began to focus exclusively on the luxury apartments in central Sandton, priced from approximately R2 million to R60 million. Over the years, he has also added commercial property sales and rentals to his repertoire, as well as building his own investment property portfolio between 2011 and 2018.

By 2018, realising where the South African property market was headed, he sold out of his investment property portfolio to de-risk and went looking for a real estate company to buy into. South Africa’s property market was extremely volatile at that time, so Wayne took the initiative and moved to London to work in property in the UK.

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Edward Snell

Senior Property Consultant

I live in Spanish countryside with my wife and our 11 rescue dogs.

Originally from Bedford, I have two sons, two step children & 6 grandchildren.

I have a keen interest in property investment and over the years have built up a personal portfolio for the purposes of rental income and capital growth.

I have over 20 years’ experience in property investment, both in the UK & overseas.

My other interests include animal welfare, football, motorsports, travel and music

My personality is of an even temperament and I enjoy the cut and thrust of doing deals.
I am happy and successful in what I do & take great pleasure in providing my clients with successful outcomes.

I’m a good team player but work well as an individual.

Daniel Harburn

Property Sales Consultant

Daniel had a passion for property from a young age so he began his working life by undertaking a plumbing apprenticeship for a large well known UK developer to pursue a career in construction. After qualifying he soon realised that building relationships was a preferred skill of his due to his loyal and trusting nature.

From then on Daniel launched his career in sales where he worked his way to to a high performing sales person at a creative media company. Part of Daniels success in accumulating clients over the last 10 years is put down to his diligence in customer experience.

Daniel has a keen interest in golf and also in keeping himself fit which is essential as he and his fiancé have 4 year old twins, Jacob and Sofia who keep them both on their toes.

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