Rand favours offshore investing

Johannesburg - With the rand/dollar exchange rate the strongest it's been in over a year - at levels last seen in August 2008 - there is never a better time to be investing in offshore property than now, said Richard Epstein, project sales manager for Pam Golding Properties' International Projects division, on Thursday.

"Astute South African investors are capitalising on this and we've seen sales in Eden Island, the exclusive marina development in the Seychelles, increase substantially off the back of the stronger rand, with levels hovering around 7.40 rand to the US dollar," he said.

"In fact, as prices at Eden Island have not increased in over a year, from a South African buyer's perspective the same price property is obtainable at what is effectively a discount of 25% to 35%. And as the Seychelles is part of the Southern African Development Community states there's no limit to the amount of funds you can take offshore when it comes to investing in a holiday home."

In response to the demand from the South African market, the developers have released a further phase of a total of 18 luxury apartments, which comprise mainly two bedroom apartments, which have proven the most desired products sought by the local market, with prices starting at $345,000.

"At the current exchange rate this is exceptional value for money, particularly when you consider that in October 2008, when the rand/dollar exchange rate was 11.57, the same apartment would have set you back R3.99 million, whereas now the same apartment will cost R2.55m. Those who purchase now take advantage of the favourable exchange rate as the apartments will only be delivered in 12 months' time - and who knows what the exchange rate will be then," added Epstein.

- I-Net Bridge