Steering your investment ship

2016 lies ahead: a brand new year brimming with investment opportunities …

Diversification Into US Property

While diversification into different markets and vehicles has always been a wise idea, we’ve seen an increase in enquiries about our offshore investment products after the Rand’s unfortunate plummet related to unwise finance minister decisions by Government.

If your personal investment strategy for 2016, and beyond, is driving you to take a closer look at other markets, an interesting one to consider is the property market in Atlanta, Georgia, in the US.

YDL Property Investment has built up a successful network in Atlanta since 2012, where potential investors can capitalise on a solid seller’s market, low inventory of consumer properties and high demand.

Further, Atlanta is showing economic and population growth – it has the busiest passenger airport in the world and there is much job migration to the area, with the likes of Mercedes-Benz USA moving in and creating 600 jobs in July last year. According to Forbes.com, the area’s metro population is 5 626 000, job growth was 3.7% in 2014, and this continues on a positive trajectory. The city is in fact considered a top location for business and positions itself as a primary transportation hub of the southeastern US. Other national or international companies headquartered in metro Atlanta, include Coca-Cola, Home Depot, UPS, Delta Air Lines and CNN.

In the six or more years since the global economic slump of 2008 to 2009, US banks have loosened up on granting bonds to homebuyers. And according to co-founder Gary Keller of Keller Williams, currently the no 1 real estate company in the US, their markets are likely to remain strong until 2018, or even beyond. Additional intel from John Damiano, YDL’s Atlanta broker, is that ‘the Atlanta market looks set to grow at about six percent or so during 2016, based on a shortage of inventory and still large demand. Our office has, in fact, had the best start to the year since 2007’.

The YDL Strategy

YDL buys to renovate and sell on (what the US market calls ‘flipping’), as well as placing a focus on residential construction. This is typically accomplished over a six-to-12-month period, preceded by a detailed viability study of each property.

Investor equity is supplemented by finance from a lender in order to make the transactions more affordable for investors. For interest: investors are permitted to transfer up to R1m without a SARS tax clearance certificate, and a further R10m when such a certificate has been granted.

Deals of this nature give the investor the potential to reach solid returns. And let’s not forget the positives of having a portion of your portfolio invested in a first-world currency – a sensible hedge against the Rand weakening in the medium term.

YDL has the capacity on the ground to manage and to make the necessary day-to-day decisions concerning your investment. Personal relationships with local SA clients are highly valued and service excellence remains a top priority; as a consequence, many investors return to further expand their property portfolios in Atlanta.

Conclusion

YDL will cover outcomes from the Keller Williams ‘Vision’ presentation on US property outlooks in the very near future. Watch this space!

If you’re ready to invest in offshore property, call me on 011 465 7356 or email me at anton@ydl.co.za. I look forward to answering your questions.

Warm regards,
Anton