LIO Global Expands As Investors Seek Offshore Property

Founder and CEO of the company, Nadia Read Thaele says given the local economic challenges and instability of the currency, investors are now actively seeking to diversify and expand their investment portfolios. 

International property offers an attractive option. Aside from the inherent capital value retention, these often come with solid rental yields and a currency hedge against the fluctuation of the Rand. For example, ten years ago, one British Pound would have sot you just R13. Today, it will cost you around R23 which equates to a 70% decline in the value of the Rand.

LIO Global has been in business as a leading provider of offshore investments linked to residency and citizenship to the South African market for close to a decade. Ms Read Thaele says the company has now found that clients are increasingly looking into offshore property as an in investment.

While key markets such as the UK and Mauritius are sought-after for own-use purposes, or the Airbnb market, there are many additional benefits. For example, by spreading the investment across different markets and asset classes, investors can mitigate against some of the risks while benefiting from stable returns.

Diversifying geographically also offers a hedge against political and economic uncertainties, especially in the South African context, providing a sense of security and stability. International property can provide a solid store of wealth in a major currency such as the British Pound Sterling or US Dollar.

South Africans are also increasingly attracted to the idea of owning a second home in a popular offshore destination. Additionally, international property investments can provide opportunities for their children’s education or for expanding their business interests into new markets.

Ms Read Thaele, however, cautions that international property markets can be fraught with challenges. There are also many nuances and legalities which need to be considered including issues around forex, financing, and tax. This makes the role of a local trusted company such as LIO Global a vital prerequisite. LIO International’s ethos is also that they only want to offer properties that they would and have personally invested in. 

Investment property options are carefully investigated and vetted by Sophie Gamborg, Head of the LIO International Property division. She has been a UK property investor for 20 years and has an extensive UK property network, having worked in the market for 15 years. The investment options offered are those where the numbers work and clients can make an informed decision, knowing that they are dealing with a tried and trusted local brand.

One of the most challenging aspects of investing in international destinations with the view to leveraging a rental return or rental income on your property is that South Africans are not always familiar with the particular destination. On top of that, there is the challenge of sourcing tenants, ensuring the rental rates are set correctly and keeping the property occupied and well maintained.

Again, she adds, the expertise provided by LIO Global for example is critical to ensure that the property not only maintains its value and can achieve and leverage maximum return on the investment, but to provide vital peace of mind to the investor. Investors want to purchase property that will give good rental yields and offer capital growth. LIO Global provides full details in terms of costs, figures and upfront documentation and requirements along with information about the area and market.

There are currently various exciting projects available for South Africans to invest in and in some instances the purchase price or the investment required starts at just £120,000. With access for South Africans to a UK mortgage of up to 70%, this makes buying in the UK much more accessible!

For more information, contact LIO International on 083 375 1078.