Weekend Argus (Saturday Edition)
Become a world citizen… if you’ve got the dosh
DREAMS of having an international passport could come true – if you have the money to invest in property around the world. The so-called “golden visa” is within reach for those with cash to spend on homes in select places.
Volatile politics, access to education, security threats and a desire to become a global citizen are factors driving South Africa citizens keen to acquire an international passport.
Nadia Read Thaele, partner and head of Seeff ’s international property division, says the proliferation of offshore buying signals a desire to become a citizen of the world, not simply property investment.
“Over the past years we’ve seen that stability, security and quality of life can change rapidly. Many imagine a passport is limited to the country in which you were born, but such limitations are disappearing as wealthy investors join the ranks of world citizens,” she says.
“Since 2016, we have more and more families investing in residence and citizenship to become part of the global community.”
Investing in offshore property also provides an ideal platform to diversify investments and benefit from international currencies such as the euro, pound and dollar.
Decisions in terms of choosing a lifestyle are likely to be foremost for families with cash to buy property overseas.
“Broadly speaking, there are about 20 countries offering programmes where the framework requires you to invest either in a business, government bonds or donation, or in property to obtain residency or citizenship,” says Lisa Bathurst, private clients, for Seeff International.
Most property- based programmes offer residency, not necessarily citizenship.
Since April 2015, South Afri- can residents’ foreign capital allowance increased from R4 million to R10m a person a year, or R20m a family unit.
At the same time, several investment havens have become available as countries renew international investment criteria. These include Spain, Portugal, Malta, Greece and Cyprus.
Bulgaria and Hungary offer residency and citizenship by investment in Europe through government bonds.
An emerging trend in the real estate survey conducted by PwC provides potential investors with a forecast of thereal estate industry in Europe. They look at where to invest, what to develop, which sectors offer the best prospects, and trends affecting real estate.
They also look at which cities and property sectors offer the best potential. It says it is positive about Germany as it offers a “haven in most scenarios, even if the Eurozone breaks up”. It says investment is not forecast to be limited to alpha cities and names Dublin as a likely attraction, thanks to a growing population and friendly residents.
“Today, it is not so much Europe’s big global gateways, but its smaller capitals and second- tier cities that are being highly ranked. Factors such as physical and social infrastructure, quality of life, diversity, forward- thinking municipal authorities, and sustainability have entered the equation; 77% of respondents say they are tailoring their real estate strategies to tie in with demographic and social changes.”