Key Post: Any experience of purchasing in South Africa

I have an opportunity to spend approx 60k Euro on a good property in SA in the Cape area.

Does anyone know of any reasons not to purchase there
besides the distance and the crime issues which were highlighted recently.

Re: Any experience of purchasing in South Africa

might be of interest.

Any experience of purchasing in South Africa

thanks for that Clubman.

Anyone any hands on experience ?

SA

Last time I was there (2001) all the white folks were trying to get out of the place.

Aren't you worried about the fact that some future government could simply decide to confiscate your property...as is happening in Zimbabwe?

It sounds nice and cheap when you see what you can get for your money, but its too risky in IMHO.

Re: SA

Aren't you worried about the fact that some future government could simply decide to confiscate your property...as is happening in Zimbabwe?

That's probably as likely to happen here in Ireland as it is in South Africa! :rolleyes

Any experience of purchasing in South Africa

Thanks for the comment Newbie but I dont think that will ever happen in SA

SA is a sophisticated country with huge potential in industry and particularly tourism.

If anyone has purchased over there can you let me know how it went.

Sth. Africa

Sean Quinn (builder) has advertised property in Capetown (Lagoon Beach) in Sunday's Tribune. 15, 000 euro quoted for 2 bed apartments!!

Sth. Africa

Sorry, I meant 150, 000 euro!

Capetown

Would you buy - sight unseen?

If you go there you'll soon see that 150K buys you a lot more than a 2 bed appartment.

I repeat. Buying in SA is about the riskiest venture you could make. Even just in terms of currency exposure.

Nice place for a fortnight....but I wouldn't wanna live there.

Re: Capetown

I will be discussing the merits and demerits of investing in South Africa on The Last Word at around 18.20 this evening

Brendan

Re: Capetown

Brendan
I listened in and thought you gave a very good practical account of the situation whereas the other guys were purely 'selling'.

Re: Capetown

Brendan

I missed this post so missed you on the radio.
What was the thrust of your arguement? Along the lines of the AAM guide?
I personally feel, having been twice, that South Africa (Cape Town) would be a good (if brave!) investment. Especially so if Aer Lingus decide to fly directly there.
OK - you are taking currency risk etc etc but I read somewhere that Cape Town is one of the 10 top tourist destinations in the world (and growing!). You can't spend money there either - things are so cheap. The government are well aware of this and are smart enough to realise that if they lose the tourist trade they lose huge income.

Re: Capetown

Brendan's main point was that this would be a very bad investment for most people, because of

- the need for an investor to do detailed research on the ground in SA before committing themselves and the virtual impossibility of an Irish investor doing that properly from an Irish base

- the logistical difficulties involved for an Irish-based person selling an SA property at some stage in the future.

- the difficulties in getting flights to SA. This was conceded by one of the guys selling the SA properties. Apparently SA flights ex the UK are packed out and it is difficult to get flights at short notice

- the volatility of the currency.

(note - this a rough summary of what Brendan said - dont take it as gospel)

Re: Capetown

Especially so if Aer Lingus decide to fly directly there.

Click to expand...

The real question is 'will Aer Lingus continue to fly there directly for the rest of your life (or until you sell your SA property'.

A lot of UK-residents who bought property in France near Ryanair destinations were badly stuck when Ryanair cancelled those routes - now their properties have become quite inaccessible.

Re: Capetown

Hi Rainyday

Your latter point may even be more relevant than you think. The French case you mention was actually to do with an area serviced by flights operated by another low-cost airline. When Ryanair bought out this airline they shut down the service. Why this may be relevant is because there is a strong chance that Aer Lingus might be sold or privatised in the next few years - any such change would surely entail a full review of flight services by the new owner.

Flights

Although flights may help out with accesabilty for you I dont think this would impact the price of the property.
I dont think comparing a certain remote town in france and Cape town is a fair comparison. Capetown will always be accessible from london!!

Re: Flights

Capetown will always be accessible from london!!

Click to expand...

Depends on your definition of accessible. The promoters of the scheme shot themselves in the foot by pointing out how difficult it was to get flights from London to Cape Town during the peak season at present.

Hello All,

I am from S.A. Cape Town.

Firstly, there are direct flights from Dublin that are reasonably priced. Slattery Sun operate the flights for around €850 return, depending on the time of year. If you choose not to fly with them, u can get flights from Dublin via Heathrow(B.A.&Virgin)/Frankfurt(Lufthansa)/Zurich(SwissAir) etc etc. to Cape Town or Johannesburg.

Secondly, there is no chance of property getting confiscated. U have to remember that the Goverment is a multi racial organisation operating in the interests of all its people.

Lastly, the Economy is very good in SA. Four years ago when I went home on Holiday, it was 12 Rand to the Euro, it is currently at about R7.30. Tourism is strong and it is a great place to go for a sunny holiday. There is a steady increase in the property values there, without the risk of the market collapsing.

A thought...if you did buy there, and the rand continues to strengthen (which they predict it will, remember the 2010 soccer world cup being there), you will already be making € apart from the prperty value increasing.

In case you are wondering, I did not flee here after a bunch of people chased me through the streets of Cape Town with machettis and daggers, I came here for some international work experience, the guinness and the great weather.