Great news for South African property investors - foreign allowance increased to R4-million.

Finance Minister Pravin Gordhan announced in the Medium Term Budget Policy Statement (MTBPS) that exchange control measures would be relaxed.

In what is called the biggest forex control relaxation in a decade, the minister doubled Individuals' foreign capital allowance from R2-million to R4-million, increased the single discretionary allowance from R500, 000 to R750, 000 and raised the ceiling for foreign corporate investment without specific central bank approval tenfold to R500-million.

With the ZAR still at a favourable level for outward investment this has created a limited window of opportunity for South African investors looking to move money offshore, especially for those who have already used their R2-million allowance but wish to take advantage of the strong ZAR.

This window will be limited however as most Forex experts agree that most of the measures announced, e.g. increasing the limits on off-shore investment, are apparently aimed at trying to weaken the ZAR.

Much of the ZAR strength in recent months stemmed from the sale of financial assets to foreigners who received a high yield on their investment locally. Considering the high interest rate in SA compared to other countries in the world (0.5% in the UK) it's not surprising that investors with a higher risk appetite would look at SA for good return on their cash.

Upper Holloway, London N19

Central London for under £230k!!!

A superb selection of 2 bed apartments in this fantastic new development a stone throw away from Archway tube station.

More...