Investing in the GR :
Investing in the GR would generally be seen as a sound financial move.

The area is growing rapidly, property prices are escalating, the availability now of a wealth of products and services which were previously unavailable,combined with vastly improved healthcare and education facilities, beautiful scenery, and an excellent climate etc., all make it a great place to be.

There are however a lot of potential pitfalls, and GRI's wish is to present these to you on an ongoing basis through this and future publications- better preparing you for a potential move.

If you are from overseas and are looking at investing in a holiday home, particularly to escape cold European winters, or even at retiring here on a full-time basis, the GR offers many advantages to you.

Exchange rates, based on the strength of foreign currencies against the rand, and the availability of 50% bonds (to non SA Residents with the reqd. Reserve Bank approvals), give you the opportunity to buy or build your dream house here in SA, something which you might not have been able to realise in your own country.

Combined with the interest rate hikes of late, the advantage lies clearly with the overseas investor, and that is why so many are purchasing property in the Garden Route, particularly in Plettenberg Bay and Knysna. Not only does this bring direct foreign investment into the area, but more importantly it facilitates the best form of advertising for the region that there is, namely that of word of mouth, encouraging more overseas investment in the future.

As a South African your motivation to invest in the Garden Route needs to be closely considered. Is it to purchase a holiday home?, to retire?, to relocate and to offer your family a perceived improved quality of life? And then to buy or start a new business?

Purchasing any property is a question of affordability, both for you and the bank. There is no point in purchasing a holiday home (eg a 2nd home), if it puts unnecessary financial pressure upon you. The sooner you join the property bandwagon, the sooner you will see your investment start to grow, but this should be calculated carefully against your budget, forecasts on potentially higher interest rate hikes etc…

If you do not need the bank as a partner, then a Garden Route property purchase (whether a 1st or 2nd home) represents an excellent investment, but talk closely with your accountant on the implications of CGT, as this can become a major determining factor in how much to lay out.

2. As a place to retire the Garden Route represents one of the most sought after.
But whether you retire here (or somewhere else) you should try to have all your ducks in a row. It is a fact that only 1 in 10 people have properly planned and prepared for retirement, leaving the majority of retirees dependent on their families or having to continue working. An unfortunate situation created more often than not by extraordinary circumstances or emergencies which were unforeseen and could never have been planned for.

So if you are retiring to the Garden Route, try and be as financially organised as possible. Do you have 10 to 15 times your last annual salary tucked away in savings? Have you paid off the dreaded 20 yr bond and owe nothing? Have you paid off and cleared any other debts or loans eg vehicle finance, overdrafts, credit cards? etc…Be as debt free and asset strong as possible, purchase a property you can afford and live within your means.

Many people relocate here, but end up returning to where they came from, totally dismayed and disillusioned. The income potential here is generally much less than in any SA city, the job market is much smaller, the focus of business is totally different. So do your research properly. Be prepared to 'downscale' your lifestyle completely. Be flexible in what you are prepared to do for work. Reduce your expenses and establish a workable budget.

You may not necessarily start off here in a field where your specific area of experience may lie, and what is more impressive hard earned degrees may not be of much use to you here. But be patient and flexible, network wherever you can, carefully considering your options until you find your eventual niche in what is one of the most beautiful places on this Earth.