Two Bits – 15 April 2016

Some of South Africa’s richest people are likely to own a Patek Phillipe watch, drive a Porsche or Ferrari and live in Ballito – or more specifically, Zimbali or Simbithi.
Some fascinating details of the spending habits of the super-rich are contained in a report just out. This stretch of coast from Umhlanga to Zinkwazi is still a long way behind Plett and Cape Town, but it is seen as the up and coming area by the new rich, according to the authors of a report on South Africa’s wealthy by an investment-tracking outfit called New World Wealth.
Plett can boast 260 multi-millionaires with second homes there and 120 homes valued at R20 million or more, the highest of any town in SA (outside of Johannesburg and Cape Town). Umhlanga and La Lucia boast 250 second homes for the mega-rich, while Ballito has 90, ahead of Paarl, Franschoek and Wilderness.
Zimbali tops the lists of estates with the most multi-millionaire permanent residents (30), while the top estates for super rich second homes include Zimbali with 60 multi-millionaires, second to Fancourt with 70, while Mount Edgecombe and Simbithi also feature with 10 each.
Collectables, especially art, wine and classic cars are an increasingly popular way for the wealthy of the world to store their loot. This also includes jewelry, stamps and super-luxury watches – those starting with a label of R150 000! The bling set spent nearly R500 million on super-luxury men’s watches in 2015, up from R150 million in 2007. The top brands are Patek Phillipe, Frank Muller, Brequet, Vacheron Constantin and, amongst yachties, Ulysse Nardin.
But yachts, private jets and new cars are a no no. They are thought unlikely to hold their value. Well, anyone who has driven a new car off the showroom floor and then tried to sell it a month later can tell you that!
In SA specifically, rare wild animals have become a popular investment. Some rare species, such as Buffalo, Roan Antelope and Sable Antelope, sell for over US$20,000 (R300 000) per animal.
South Africans have been cashing in big time with the fine art market, snapping up local art before the rest of the world wakes up. Leading artists include Irma Stern, Thomas Baines, JH Pierneef, Alexis Preller, Pieter Wenning, Gerard Sekoto, Maggie Laubser and Hugo Naude. The value of these artists has risen appreciably – an Irma Stern painting that sold for R300 000 in 1995 fetched over R30 million in 2011.
Cars are still the ultimate boy toy. For the man who has (almost) everything, how about a 1982 Porsche 956 Coupe at R150 million?
Pebble Beach Concours d’Elegance in California is the top market for collectible cars. What the rich will pay for a piece of classic tin will make your eyes bulge. Top prices paid last year were R197 million for a 1956 Ferrari 250 GT TDF Coupe, followed by the 1982 Porsche, then R128m for a 1959 Ferrari 250 GT Interim Coupe.
Top selling luxury cars in SA last year were Porsche, Maserati, Ferrari, Bentley, Aston Martin, Rolls Royce and Lamborghini. Don’t sell your old banger – stick it up on blocks and who knows what your grandchildren will get for it!
While it might be tres chic to have your own wine estate in the Cape, they are also apparently very good at making large fortunes disappear. But the Germans and Brits are flocking to own their own label and Cape Dutch mansion.
But not all has been rosy. Property prices dropped significantly, in dollar terms, and the rand lost a quarter of its value. More than 970 millionaires left our shores last year, heading mainly for the UK and Australia. They cited financial concerns, changing social dynamics, crime, their children’s education and fear of a relative contracting Aids/HIV as their reasons for leaving. A growing number of older emigrants, interestingly, are heading for Mauritius.
However, there is a growing swell of new wealthy, mainly brought about through BEE. As fast as some leave, others take their places. The authors of the report are optimistic that wealth will return over the next couple of years, and property prices will strengthen.
While the Cape is the destination of choice for foreign and local high wealth investment, the North Coast runs second. Three local towns feature in a number of “hot spots” identified by the country’s new wealthy – Zinkwazi, Umdloti and Salt Rock, notably the estates in the area, of which Dunkirk gets a mention. Stellenbosch and Franschoek are of course the most popular places in the Cape, and the new hot spots are identified as Keurbooms, Grayton and Tulbagh.
By the sounds of it, pretty soon the North Coast is going to be buzzing with many more yuppies walking around in those Nike Skins, trying to make out their perfect bums come from extreme sports when all they’re doing is shopping or having coffee. Oh yes, and yadda yadda on cellphones in their Range Rovers, on their way to picking up the kids from school.
Never mind, could be worse.

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When Bob found out he was going to inherit a fortune when his sickly father passed away, he decided he would need a woman to enjoy it with. The doctor told him that his dad didn’t have much longer to live, so one evening he went to a singles bar where he spotted the most beautiful woman he had ever seen.
Her natural beauty took his breath away. “I may look like just an ordinary man,” he said as he walked up to her, “but in just a week or two my father will die, and I’ll inherit R20 million.”
Impressed, the woman went home with him that evening.
Three days later, she became his stepmother!