Amar asks: I am currently working abroad, and would like some advice on investments at my age. I have three bonds and am acquiring the fourth for a property in Cape Town for my daughter to attend University. I want to return to South Africa in five to seven years’ time. I am currently saving to free up the flat by next year June. I also have an RA in South Africa.
Maya replies: Cape Town-based financial adviser Gregg Sneddon recommends you accumulate assets outside of South Africa while you are working offshore.
Because you are taxed on rental income in South Africa, it would make sense to maintain some mortgages on the rental properties which can be offset with interest income.
Sneddon also says you should consider buying a property offshore as this will provide foreign income one day. Perhaps consider selling some of your South African properties so you have a balance between the two.
It would be a good idea to use this opportunity to sit down and draw up a financial plan for the next 10 years, especially around your retirement income and how these properties would provide income in later years.
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