Despite the tales of South Africans emigrating in their droves, figures actually show a steady decline in net migration rates in recent years and many expats are, in fact, returning to South Africa and investing their foreign earnings in property.
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“Over and above the wave of semigration to the Cape and the growing interest of high-nett-worth foreign investors, we’ve seen a notable increase in enquiries from expats”, say Stephan Thomas and David Burger, Secure Estate Specialists for Lew Geffen Sotheby’s International Realty.
“Many of these buyers left South Africa in their teens or in their early twenties, are now in their thirties and forties with families of their own and keen to return for a number of reasons, including lifestyle and the advantageous exchange rates that enable them to leverage their foreign-earned currency.
“Others are retirees looking to escape the harsh European winters to enjoy their golden years in a temperate climate where they can pursue outdoor leisure activities and their hard currency pensions will stretch that much further.”
One of the most significant drivers behind expats' return to South Africa is indeed the advantageous exchange rates that enable them to maximise the purchasing power of their foreign-earned currency.
“With currencies like the US dollar, British pound, and euro continually strengthening against the South African Rand, expatriates find themselves in a favourable position to invest in property and capitalise on attractive opportunities.”
Lifestyle is the other key driver and Cape Town’s Southern Suburbs are especially appealing as not only are most of the city’s best schools are located in the area, residents are spoilt for choice when it comes to leisure activities and sports facilities, from beautiful beaches nearby to golf courses and restaurants.
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And in a broader sense, expatriates are lured back by the country’s vibrant cultural scene, culinary diversity and rich heritage which offer a unique and enriching experience for returnees and their families.
“The other reality is that people living in the UK and Europe are becoming more miserable every day with wars on their doorstep, uncontrolled immigration and cost of living increases and, at the end of the day, we all aspire to a better lifestyle and will seek it out,” say Burger and Thomas
Another compelling drawcard is that buyers have a wide choice of property options, particularly in the secure estate sector.
“Estate properties are very popular with these buyers and estates in this area offer everything they need, including controlled access, first-class lifestyle amenities and a sense of community as well as property options to suit most budgets, although we find that our expat clients generally purchase within two price bands: R9 million to R18m and R25m plus.”
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Despite the country’s enduring economic and political challenges, South Africa still boasts pockets of resilience and growth potential and burgeoning sectors such as technology, renewable energy, and tourism offer ample opportunities for entrepreneurial ventures and career advancement.
“For many expats, reconnecting with their roots and embracing their cultural heritage is a compelling motivator for returning to South Africa,” say Burger and Thomas.
“And the sense of belonging, community, and identity they experience fosters a profound emotional connection, prompting them to rediscover and contribute to the nation's social fabric.”
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In an article published on 11 May 2023, Pam Naidu, Director of Sales and Marketing at Devmco Realty, shared some key learnings which every first-time buyer should know when deciding to purchase their dream home.
1. Location, location, location! Also known as the Three L’s:
There are three micro locations that define the actual location of a property on a macro level. If the property you want to purchase is in an estate for example, you may want to find out what area of the estate it sits in and what that actual area provides, such as a good sea views, etc.
2. Financial stability is important:
Get your credit card payments and debts in order.
3. Budget:
Establish a realistic budget to determine your affordability. Create a budget and try to stick to it so that you can enjoy the process and not put yourself under too much pressure.
4. Find a trustworthy real estate agent:
This is the person that will assist in picking out your potential home and exploring your new neighborhood and is also responsible for scheduling tours and negotiating important contracts on your behalf. Ensure that this is someone you trust, to have your best interests at heart.
5. Get approved:
Get a pre-approval letter before you start shopping! This will help you have realistic expectations on what you can afford.
6. Be mindful of transfer and closing costs:
First time buyers usually tend not to factor these costs in, and it comes as a huge surprise at the end. Doing your homework is a very vital part of house hunting.
Becoming a first-time homeowner can be an overwhelming experience and requires careful consideration of several factors. With the expert advice from Devmco Realty, first-time home buyers can make an informed decision and successfully unlock the door to their dream home.
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