Weak rand: Is it a good idea to invest in offshore property?

South Africans are eyeing opportunities in offshore property investments as the Rand weakens against major currencies, such as the British pound. With the Rand currently trading under 17 to the pound, many investors see this as an advantageous time to diversify their portfolios and explore international markets. George Radford, Africa Head at IP Global, shared his insights on the potential for South Africans to invest in property offshore, particularly in the UK and other emerging cities. Radford highlighted the significant appreciation of the Rand against the pound since January 2016, indicating a buying opportunity for South Africans looking to invest in the UK property market. Despite uncertainties surrounding Brexit, Radford expressed optimism in the UK economy, citing positive GDP growth and supportive monetary policies. He emphasized the structural under-supply of properties in the UK, with a shortfall of nearly 100,000 units annually, presenting potential opportunities for investors. IP Global focuses primarily on residential investments in the UK, with a strategic emphasis on regional cities like London, Manchester, and Liverpool. Radford emphasized the stability and individual ownership prospects of residential properties compared to commercial investments in uncertain market conditions. While industrial properties show promise due to the weak pound benefiting exports, IP Global remains committed to residential real estate. When questioned about alternative investment avenues like Real Estate Investment Trusts (REITs), Radford emphasized the tangible nature and direct ownership benefits of investing in physical assets through IP Global. He underscored the value of diversification and personal ownership that residential properties offer to investors, distinguishing them from traditional investment funds. Beyond the UK market, Radford pointed out emerging opportunities in other international cities such as Berlin, Hamburg, Vienna, Chicago, Toronto, Melbourne, Brisbane, and Cape Town. He highlighted the potential for growth and value in these cities, reflecting IP Global's diversified investment approach to cater to varying investor preferences and market dynamics. As South African and African investors consider offshore property investments, the current weakening of the Rand presents a compelling opportunity to explore international markets and secure stable assets in strategic locations. With expert insights from industry leaders like George Radford, investors can navigate the evolving landscape of global real estate and make informed decisions to enhance their investment portfolios.