This afternoon I interviewed Haydn Ellwood of Yellow Capital, London UK.
UK property is a very attractive option to high net worth South Africans, in particular those sitting on cash in Isle of Man or Guernsey Bank Accounts earning no interest.
The UK property sector has fallen about 27% since it's high around 18 months ago and the property sector has since stabilized and has started to show signs of recovery. Interest rates being low at around 4 % and loosening up of capital markets start to benefit property buyers.
The Buy to Let market is extremely attractive in the UK because interest rates are so low and property rentals are in high demand. Investors could yield attrative income yields between 6-8% with escelations at 5%. Then in the next 3 - 5 years property prices in the UK could regain about 27% value.
A few years ago UK property was out of reach for most South Africans, but now with the strong Rand, the use of the 2 million allowance and gearing, South Africans can build a solid income stream in GBP and have an appreciating asset offshore.
Never before has it been so lucrative to invest in UK property. To book an appointment with Haydn Ellwood e-mail him at haydn@yellowcapital.co.uk
