Property News - May 2008
Welcome to our property investment newsletter, the aim of which is to keep you up to date and informed as to the most recent property trends.
This month, we are delighted to announce that our Diligence UK office has managed to secure some very well priced London apartments. Partially as a result of the current “credit crisis” we have negotiated to get 7 units, direct from the developer, at a discount of 45000 GBP per unit.
For anyone wishing to spread their exposure it is currently a good opportunty to get into the UK market with one of our buy-to-let property investment packages. If you are interested in one of these units then please contact us without delay. They all come with the option of offshore finance and full investment reports can be provided on request.
Price growth across the markets covered in the Knight Frank Global House Price Index fell in the final quarter of 2007 on a year on year basis. Globally, price inflation over the year was 8.2%, compared to 9.7% recorded in Q4 2006. Falling annual price inflation to the final quarter 2007 in markets such as Estonia, Ireland and Latvia have more than compensated for the continued strong performance seen in Bulgaria and the impressive rates of growth seen in Russia, Poland, Hong Kong and Singapore.
Today’s economic environment is one of rapid fluctuation -exchange rates, lending rates, inflation rates and economic confidence levels are ever changing. These factors have a major impact on the value of all assets. There is a constant need to determine the value of property for the purpose of financing, reporting to shareholders, cost accounting, mergers or takeovers through to rent determination and reviews, rates assessment, expropriations, arbitration and litigation.
Various vehicles exist for purchasers of immovable property. Transfer can be effected to a purchaser in his personal capacity (a natural person), a juristic entity (a trust, a company or close corporation) and the choice depends on the specific requirements of the purchaser. The most important factors to be considered by the purchaser when selecting a suitable registration entity are briefly discussed hereunder.
Many Portfolio Property Investment (PPI) clients are currently considering buying a residential property in the UK as an investment. Investing in a suitable property in a high growth area of Britain can be an excellent way to balance your SA property portfolio and build an asset base offshore.
The household sector came under increased financial pressure in recent times with fuel prices rising to record highs on the back of high international oil prices and rand exchange rate movements, CPI food price inflation increasing to above 15% y/y last month, and interest rates which were hiked again earlier in April as a result of these inflationary pressures.