Ian Burgoyne International Properties (IBI Properties) was formed in 2007 to identify, source and list properties outside southern Africa, in order to provide long-term investment and security for local residents. Regional insecurity, inflation and the erosion of law and order has brought the need for offshore, long-term financial security sharply into focus, and highlighted the opportunity to invest in property internationally.
Under current South African legislation (see Investing Offshore) each individual is entitled to invest up to R2 Million in their own capacity offshore. This creates an opportunity for investment and wealth-creation, but most importantly allows local residents to spread their risk. Offshore investment opportunities in shares, unit trusts and pension policies abound, but the uncertain global environment makes these investments equally uncertain.
BRICKS AND MORTAR
The IBI Property philosophy is to own bricks and mortar in a personal capacity, to ensure control of these investments. If a particular property investment is beyond individual means, it can be syndicated with other family members or friends, spreading the risk in the process. The rental-return on selected residential properties ranges from 3% to 5% internationally. But factoring capital growth in high performance areas like Australia can generate returns upward of 10% per annum. These levels of return are attractive in any language, but become all the more significant as a hedge against inflation and devaluation.
AUSTRALIA AND NEW ZEALAND
Managing a property offshore is obviously an issue. For this reason, there is an increasing trend towards investment in apartments or self-contained houses on small pieces of land. Australia currently offers some very attractive investment opportunities, but the rules of engagement in that market are that a non-resident can only purchase a property that has never been lived in. Not only does the property have to be new, but no more than 50% of new properties within a development can be purchased by non-residents. New Zealand is somewhat easier when it comes to house purchase, but high-maintenance properties should be avoided. These and other issues require the highest level of professional guidance and competence, which is precisely where the expertise of IBI Properties lies. Contact Ian Burgoyne - IBI Properties for market insight and sound investment advice, based on personal experience.
PROPERTY INVESTMENT – A PERSONAL VIEW
I am in my mid-fifties, but with life-expectancy now running into the nineties, I could have thirty years and more ahead of me. I have to ask myself where the world’s social security and pension systems will in even ten or twenty years time, as all the evidence suggests that these will collapse under the strain of increasing demand and leave the vulnerable high and dry. It is likely that these pressures will drive increased taxation of those working to pay for those that aren’t, and a reduction in, or even complete collapse, of the benefits we all hope to enjoy one day.
With this in mind, and a lot of evidence around me, I elected to look for personal security in real estate. To explore the options, my wife and I travelled around the world and came to the conclusion that residential property was the safest of these – in spite of the fact that rental-returns were lower than those on retail alternatives. I was recently tempted to buy some retail property in New Zealand, which was showing a 7% return. But on reflection, I began to think about the impact of the kind of on-line shopping that has already wrecked countless retail and service businesses. Industrial property investment is also attractive, with lower outgoing costs than retail, but can be quite specialized, but for some reason, shows little capital growth.
Banks also tend to be very conservative about lending on both retail and industrial property. By contrast, residential property will always be supported in the marketplace by Governments and Banks, as stability in this environment is central to socio-economic and political security. On a personal note, my view is that having a roof over your head is the fourth most important thing after air, water and food. So for all these reasons, we have settled on residential property investment as a first choice.
IAN BURGOYNE – A PROFILE
Born in the United Kingdom in 1951 and immigrated to Rhodesia (Zimbabwe) in 1953, where he was educated.
Served 5 years of Articles in Valuation, Estate Agency and Auctioneering with Trevor Dollar & Company, and admitted to the Estate Agents, Auctioneers and Valuers Institute of Rhodesia (Zimbabwe) in 1976 as an associate, later elevated to a Fellow of the Real Estate Institute of Zimbabwe and appointed to the panel of valuers to the Master of the High Court.
Established Ian Burgoyne Estate Agents in 1976, trading in real estate, auctioneering and valuation until 2003, when the business was relocated to South Africa. A highly successful commercial farmer, he was also involved in agricultural politics and served on numerous agricultural and private sector boards.
On arrival in South Africa, passed the Certificate of Estate Agency Examinations and initiated development of Broadacres Country Estate and, later Cresthaven Country Estate. ( see Featured Properties). Having lived through massive inflation and the erosion of personal safeguards – including pensions and share portfolios, Ian Burgoyne has developed rich personal experience of travelling the world to purchase property as an investment for long-term security. To share this experience and help others to reap the rewards of off-shore investment, he has now launched Ian Burgoyne International Properties.
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