Guiding consumers since 2009

UK property looking good

By Staff Writer

By Xolile Bhengu

Local property investors have an opportunity to invest in the UK property market as values in the short term continue to drop — by as much as 20 percent.

The Broll Property Group said the UK property market had suffered some knocks in the past year.

Due to the impact of global market volatility on the British banking sector, there has been upside in property lending. This has made it more affordable for SA investors to access commercial property investments.

The company said the UK commercial property sector had gone through a significant slump, with capital values falling an average of 15 percent since June 2007.

David Adams, investment broker for Broll, said some UK properties, which had long strong tenancies, now had net incomes greater than the repayments on a property that is 100 percent financed.

He said unlike the UK, South Africa’s commercial property market had not been hit by the credit crunch, and many investors had built up significant equity in their portfolios, but investors had limited themselves to local opportunities.

“The diversification play of investing in UK property brings the advantage of investing in a property sector that has already seen a significant correction, and is attached to first world currency in a very stable country.

“The highest yields are typically in the industrial sectors outside of the South East (of the City), where 8 percent returns, and even 8.5 percent in some cases are achievable,” Adams said.

Catalyst Group agreed that the UK’s listed property — particularly in the last three to six months — was trading at a discount to net asset value.

Paul Duncan, investment manager for the Catalyst Group, said in the short term the volatility in the property market should remain, but long-term prospects in offshore investments were looking good.

Duncan said that developed markets such as the UK were well understood and trusted by investors across the globe.

“There is relatively more confidence from foreign investors in the UK as a transparent and well understood market, in which there is readily available information,” he said.

“Any investor must do research to ensure that the returns they expect will be worth the risk, and whether they will achieve the returns that they demand.”

Recent Articles

Featured How are you taxed on your retrenchment package?

Unemployment is one of the biggest problems in South Africa. The emergence of the Covid-19 pandemic has exacerbated the situation with a lot of companies retrenching their employees.  When retrenched, you’ll receive a retrenchment package, but do you know how much tax you’re liable for?

Car repossessed – don’t be taken for a ride

When the country is facing an economic downturn, chances are your finances will feel the pinch. This can lead you to make bad financial decisions such as skipping your vehicle payments. But every decision has consequences and if you don’t pay your instalment, the bank will repossess your car. But what can you do when this happens?

 

Why you should consider gap cover

Your medical aid should protect you from incurring large medical bills when you’re sick. But what if your plan doesn’t cover the full cost of your medical expenses? We got in touch with insurance experts to find out whether gap cover is worth having.

Debt relief - What is your bank offering?

Going through a financial crisis is stressful whether it be as a result of losing your job, being short-paid, having to fork out towards an emergency payment, or finding yourself in the midst of a global pandemic. This is especially taxing if you have a debt to service. It is against this backdrop that banks are increasingly offering payment holidays. Justmoney looks at the various debt relief options available to you from the big five banks.

Deals

Premier Hotel and Resorts Special For Senior Citizens

Price: Available on request
When: Daily
Where: Nationwide

The President hotel 10% discount for locals

Price: Available on request
When: Until 31 October 2020
Where: Cape Town

Get 40% off when you book your stay at Colosseum Hotel

Price: Available on request
When: Until 13 December
Where: Cape Town


Latest Guide

Guide to debt rehabilitation solutions