Global property prices compared
The United Kingdom, Australia and United States have the reputation of being filled to the brim with amazing opportunities for expats. However, the picture may not look so rosy for those looking to enter the property market there. Here’s a quick snapshot of property prices in these areas and why it may be better for expats to rent first before they buy.
Global property prices compared
Every year hundreds of South Africans make the decision to pack up and leave the country. They do so for a variety of reasons — searching for a better quality of life, starting a new career, heading into retirement, joining family that has already moved there. Whatever drives them to make the leap to a new country, they have some important choices to make before booking their plane ticket – one of which is buying or renting a home overseas.
Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa, believes it’s better not to jump onto the property ladder just yet as property prices skyrocket in these countries, and it can be difficult to get the money together even if you have South African savings and are intending to sell your property.
Looking at the most popular countries for expats, you can expect to pay expect to pay a premium on everything from flats to starter homes. In Central London, the median price of a studio apartment (R5 million) is almost five times that of the average home price in South Africa, while things are just as pricey in Central Sydney, where homes come with an average price tag of R10 million.
In the United States, where homeownership is the cornerstone of the American Dream, expats will also fork out big money to live there. In San Francisco, it’s not uncommon to see an entry-level home listed for R23 million. In Los Angeles, they go for R7 million but in Florida’s popular cities, Miami and Orlando, the prices go easier on the pocket at an average R4 million and north of R3 million each.
If buying a home is within your means, you may get more bang for your buck if you buy away from the hotly contested locations such as city centres and major tourist attractions, but it’s still a good idea to rent first and familiarise yourself with the area before buying. This route can help prevent an expensive mistake.
