Investing in UK buy-to-let property from South Africa

Can South Africans invest in UK property

Yes, it is also far easier than most of our South African clients expect. With nothing really stopping a South African investor, any more than it would prevent a UK citizen

 

Why Do South Africans invest in the UK

 

• Volatile currency – The Rand is a very volatile currency with bug swings that can occur on a daily basis. The UK pound is on the other hand typically seen as one of the most stable currencies in the world.

 

• Interest Rates – When you invest in South African property you can expect interest rates of 8%-10%. Whereas in the UK this can be around 4% currently, so less than half the interest. This makes investments in property far more cashflow positive.

 

• Commonwealth Law – Legal systems in the UK and South Africa are very similar which makes a lot of processes far easier when buying, selling investing, and doing business between the two countries

 

• Strong property market – It is no secret the UK property market is strong and has remained consistently strong in comparison to almost the whole world. This makes for a safer investment

 

How to invest In UK property from South Africa  

 

There are two ways to invest in UK property as a South African…

• You can buy property in your own name or through a UK limited company

UK limited company purchase

As a South African you will be able to setup a limited company in the UK. This opens your options with investments and is a far better way to invest in property. With a UK limited company, you will be able to…

• Get a Buy-to-let mortgage with a UK lender or bank
• Hold your property in the company for better tax efficiency

 

In your personal name

There really are no further benefits to investing in your own name and will likely have to be a cash purchase, which is why at Fabrik we point our international clients to setting up a limited company.

 

More tips to investing in UK property market

 

• Find a broker – a good well experienced broker will be able to guide you in the right direction on all fronts of the UK market and setting everything up. Acting as your middleman between lenders, advisors, vendors etc…

 

• Get a management and letting company – As you are likely not going to be around to manage the property in any way yourself, then it is worth paying for a good premium management company. They will take care of everything for you from letting your property to looking after it between and during occupancy. This will take the hassle away from you so you can just enjoy the rental income.

 

• Educate yourself – Get to know the market, prices and yields of different areas of the UK market. You may want high yields, or you may just want somewhere to park your cash. Different goals may mean investing in different cities of the UK.

 

• Lock in your exchange rate – As the Rand can be so volatile you don’t want to agree a deal one day and then when you got to transfer your money the exchange rate ha completely ruined your property purchase. So, make sure to get a good FX service or currency broker that will be able to lock in your agreed exchange rate.

 

If you are looking to invest in the UK contact us now and we can assist in all the above. Use our online chat form below or call us on or call  +44 (0) 20 8187 5648.