South Africans keen to buy property overseas currently have several major factors in their favour and now a leading real estate group is launching a new company specifically geared to help them make international property investments.

The company, Chas Everitt International Overseas Properties, is the first company in South Africa specifically geared to helping local investors tap into the worldwide trend towards second-home buying. It will be officially launched later this month at the Mount Nelson Hotel in Cape Town.

Investment in a second home abroad has become a well-established trend in Europe over the past 10 years and has been boosted by the enlargement of the European Union. Until recently, however, South Africans were largely denied the opportunity to buy homes abroad due to the low comparative value of the rand and the legal and financial restrictions on investing overseas.

“Now, though, our research shows that there are many South African investors very keen to pursue real estate opportunities in other countries,” says Berry Everitt, MD of the Chas Everitt International property group. “This interest has been accelerated by the cooling of the local market and resulting decline in returns as well as by a growing conviction that it is not wise to have all one’s investments, of any kind, in one country.

“What is more, there is an increasing awareness of the fact that the purchase of a property in another country can in some cases be a means, and certainly a strong assistance, to acquire residency in that country.”

One factor in favour of South Africans investing abroad, Everitt says, is the fact that many of them built up substantial equity in their own homes during the recent local property boom. “Another is that the boom also gave many South Africans an appetite for property investment, which they are now looking to satisfy beyond our borders — much as those who invest in equities have become accustomed to doing.”

Forex allowance for overseas investment will soon be increased.

Meanwhile, he notes, the US dollar is weaker in world terms and it is expected that the foreign exchange allowance for overseas investment by South Africans will soon be increased from the current R2-million per individual and R4-million per family, which will make it easier for locals to afford overseas properties.

Chas Everitt International Overseas Properties will focus on matching suitable properties to individual buyers, whether they are purchasing a ‘lifestyle’ property for their own use or an investment property where rental returns and capital growth are the dominant considerations.

Everitt says there are several ‘new’ markets that offer excellent opportunities such as Brazil, Argentina, selected Caribbean countries and countries in Eastern Europe. “There are also African countries that deserve attention including Egypt, Morocco and Mauritius. We will also offer Mediterranean properties in Spain, France, Bulgaria, Cyprus, Italy and Turkey through exclusive partnerships with high-profile regional property specialists.

“And our website, www.OverseasProperties.co.za , is already online with a growing selection of property investments and information.”