Do You Know How Much Foreign Capital Can Save You?
May 2nd, 2008 by Johan
You can save as much as 20% when you purchase a property, in Simon’s Town, today with foreign capital, compared to December 2007 because of the devaluated rand. Therefore, on a home of R3 million you get R600 000 in change. Nice.
Although the rand has recovered from the high R8 to the US dollar, the savings are still significant. Let’s look at a few currencies and the savings on a R3 million home.
If you purchase a Simon’s Town home today:
- With the American dollar you save 14% or get R420 000. Rand US Dollar Graph.
- With the British pound you save 10% or get R300 000. Rand British Pound Graph.
- With the Australian pound you save a whopping 20% or get R600 000. Rand Australian Dollar Graph.
- The Euro is not far behind the Australian dollar at 17% giving you R510 000. Rand Euro Graph.
Therefore this is a good time to purchase a Simon’s Town home if you have access to these currencies.
Ok. I know we don’t all have access to foreign currencies but looking at the current property market we know it’s not going anywhere soon and there are bargains to be found. And more will come on the market as Mr. Tito fights inflation.
Let’s consider all the South Africans in Australia. They can pick up a property in South Africa at a bargain because of the devaluated rand. In December you needed R5.8 to buy an Australian dollar today you need R7.22. (Turn this around: An Australian needed 0.172 dollars to buy a rand in December today they only need 0.139 dollars).
Let’s get them back as this is a good time to invest.
The high interest rate also helps foreign property buyers:
We have a foreign buyer who’s looking at buying a home and we noted that if he placed his money in trust until the transaction is processed he would not even need to fork out money for transfer duties because of the interest he would earn while the money is in trust.
All we need to do is get the word out to these foreign buyers who want to own property in South Africa – and what better place to consider than Simon’s Town.
Have Fun In Simon’s Town
Johan Horak
It’s great to have you back. Thanks.
