Magnus Heystek explains why he’s avoiding SA property investments like a modern plague 

I sold all my properties in South Africa and now live happily in Mauritius. I still have some investments in South Africa, but will be getting out of this by end 2023 before the next election. I am still very sad when I see all the horrible news out of my ex home country. My children now live in Australia and Scotland . They have started new careers and their children are getting very good education. They are safe and happy. .

Thank you Magnus and Alec for another very interesting show. Always a good listen. I own one large home purchased in Somerset West which has rapidly appreciated in value since my semigration buy in 2019. Was thinking of purchasing a rental two-bedroom but now think Mauritius 🇲🇺 and Portugal 🇵🇹 will be a smarter move. Western Cape is still well run, but travel down from Johannesburg Pretoria via Durban Maritzburg towards East London and PE and it is surprisingly shocking to see the mess that South Africa is in. The ANC are so obviously clueless, riddled with cancerous corruption, and the cracks are showing left right and center….with gaping holes now emerging in infrastructure and investment too. Sad to see. Cry the Beloved Country 😢

I'm new to stock market /Crypto and would like to invest but I've go no idea on how to make good profits. Pls what's the best approach you'd recommend?

A dwelling is a liability not an investment thanks to the anc

Its vital the property you invest in, is well serviced. Once your municipality is corrupt and disfunctional then it follows that your property is going to be devalued. If the people in your area are voting for Another Night with Candles then you are definitely going to get Another Night with Candles !

Thank you, best interview. The writing was red all over the wall when municipalities started stealing the rates, hiking rates, rendering no service, crime and no services. Not to mention other factors. Property is rapidly becoming a liability no longer an asset. Only the few pockets of excellence still remain, WC is one of them. Totally dependent on proper management. Our Liberty investment gave me a good haircut. Will never go back there again.

Property agents are COLD calling me begging me to sell my little place in Cape Town. They say people are fleeing the ANC areas. It is the "Groot Trek" south.

Western cape is like the last cabin on the titanic

This guy is so logical and is straight talker ...Need to follow him

WC property has consistently increased in value, with large growth up to 2018 and slower more stabilised but still growing up to now.

Thanks for the truth ❣

This was my exact experience. I started my own Jo'burg residential property portfolio in the early 2000's, and until 2008 my returns were fantastic. Things took a dip in 2008 of course, but I expected things to bounce back eventually. They didn't, and from about 2015 my returns actually became worse and worse as the years went by. The Jo'burg city council tried to revalue my properties upwards for tax purposes, and I could prove that they actually haven't increased in value at all.

Excellent discussion.

What's going on in George? Is it true that the infrastructure is at maximum capacity and can't handle any more residential gated Estates. Heard this from a guy that claimed has access to this kind of information...? True or false.

What kind of property investments are you talking about? (1) Bricks and mortar or (2) stock exchange?

Body corporates are also playing a role in devaluation

Solution = #VoetsekANC

should have come to australia in the '80's like we did. massive wealth has been created thru owning aus property esp sydney

Magnus is a oracle and my advise to investors is to take his advise

Don’t forget Stanford , Pringle Bay , Kleinmond , Gansbaai and Pearly Beach if you mentioning Hermanus - ✅✅👌👌

What about buying under R1mil for rental investments

property is like everything else , the prices go up and down , if you buy at a low price you can make good money , if you buy when prices are high you are going to get burned , property is not a bad investment IF you know what you are doing

He hit the ball correct - municipalities taxes ,corruption ,inflation electricity water and the economy not growing. Hope thing can get better in the future but it s only HOPE!.

CapeXit - only 25% of tax from Western Cape comes back from central government....

I disagree that women buy with their hearts. I do numerous inspections for female property investors and they are making a boatload of money. You must know how and where to invest in property

If you have savings of R100k Do you gamble with R100k worth of stocks or do you put down 10% on a million rand property? If the property value increases by 1% my ROI is 10%

Memory serves when the bottom falls out economy must change to production not buying equity

Physical land property freedom of ownership will in South Aa will rapidly, substantially drop in this year's Heritage economic freedom index (and frankly for Fraser's in this and next year's indices for both).

What about the 3 Million arriving from the Eastern Cape demanding free accommodation ?

This is a blanket statement which is not true. The informed and clever property investors make a killing. I agree that to invest in funds is not clever. Simply because you cannot control your investment.

The WC is the only part of SA inc that is normal, roads without potholes etc not well run just normal, the rest is irreversibly ruined. Those that can are moving here no question. Every small town along the coast from Velddrift to Plett are being bombarded with buyers. As an owner of a few rental properties there are literally hundreds of tenants looking for property to rent. Property prices have gone up significantly and aren't slowing down. South Africans are moving to WC or leaving the ANC have pushed the population to the point of maximum pain and the people are voting with their feet. There is also a significant number of foreign buyers that push prices also I have 4 neighbours only one is SA rest German here for summer only. Like every African country 98% destroyed but the other 2% very lucrative.

This country is a glorified squatter camp. The government does not protect landowners on all fronts. The renters stay 2 months and duck. The amount we spend on crime prevention eats the profits. The roads and surrounding areas are rotting.

The rot and decay will eventually get to the Western Cape. It is inevitable as long as it is part of SA which it will always be.

Curious about value of Western cape properties? Especially Cape town and surrounds. Also, if you rent, how do you mitigate the ANC disaster wrt water and power? Add tanks and pumps and they add to the property at your cost. Connecting inverters/solar/generators to a house is also not an option as it isn’t your house. All good and well to say install removable systems but not always practical and cost effective at all. I feel like in SA you must almost have a house just to be able to avoid the ANC and live in a civilized manner….

Go ask the average renter if they getting a good deal on their rent?

Just to be clear, every time he says the property market/sector/business/growth is in shambles he is not refering to the DA run Western Cape.

THE SOLUTION The ANC doesn't fulfill its constitutional obligations. The ANC is far worse than just a "poor" government, it CHOOSES to break down and to destroy. That is why this action is warranted and needed. Most importantly the ANC incites hatred/violence against us when they say that we stole their land - I checked, we didn't. It is not reasonable to expect law abiding tax payers to continue with "the winner takes all principle" of a democracy to their own and the country's demise. Who says we HAVE to be part of this political dispensation? Nobody questions this. It is time to stop, think and QUESTION this. Nothing and nobody have the right to force us to be part of this self destructive political dispensation. Approach the courts - convince them that it would be in the best interest of the country as a whole if we control our own taxes (first goal). Justify our rejection of the current political dispensation (main goal). Alternatively we can just use the constitutional court as a platform where we inform the ANC and public of our decision to control our money and effectively start our own government. Give reasons and evidence for our decision. DIE OPLOSSING? Die enigste praktiese oplossing is om ons eie belasting (persoonlike, besigheids en brandstofheffings), munisipale fooie en betalings vir elektrisiteit self te beheer. (Our money under our control). Deur dit te doen kan ons die land feitlik oornag omdraai. Maar is dit haalbaar, hoe gaan ons dit reg kry? Ons het nie n keuse nie, ons moet dit doen. My voorstel is om die stelsel te verander deur n hofsaak in die konstitusionele hof. Dit is dalk net n beginpunt. Ons is GEREGTIG om die land om te draai. As dit is wat nodig is om die land om te draai (en dit is) dan moet die hof ons toelaat om ons belasting ens. te beheer. Dis tog ook vir die beswil v.d. land as n geheel. Hoekom nie? Die ANC het NIE DIE REG om ons te weerhou om die land om te draai nie. Dis die kruks van die beoogde saak in die konstitusionele hof. Indien die hof nie onomwonde in ons guns beslis nie wat heel moontlik is kan dit nog steeds susksesvol wees want dan het miljoene Blankes, Bruin en Indiers gehoor dat hulle GEREGTIG is om te doen wat die beste is vir hulle en SA as n geheel. Op die oomblik dink nie een van hulle so daaraan nie. Niks of niemand het die reg om ons te dwing om in n selfvernietigende politieke bedeling te bly nie ook nie die konstitusionele hof nie. So n hofsaak sal ook die besef tuisbring. Die ANC lieg as hulle sê ons het die grond gesteel - regsaksie teen die ANC As ons nie die grond gesteel het nie kan daar mos nie grondonteiening sonder vergoeding wees nie. Dis dan die rede waarom die ANC en EFF vra vir onteiening sonder vergoeding. Ons het grond by die Zoeloekoning gekoop. Daar was ander gevalle ook gewees, tewens Bennie van Zyl v.d. TLU se vir my dat daar 25 traktate was tussen die Voortrekkers en Swart stamme vir die koop van grond. Die Voortrekkers is bes moontlik die enigste groep mense in die geskiedenis wat nie grond met geweld af geneem het nie maar gekoop het! Die V.O.C. het ook maar hulle was nie n nasie nie. Die TLU het al in 2019 vir Ramaphosa gese dat hy en die ANC lieg as hulle sê ons het die grond gesteel. Die TLU het ook al R100 000 aan gebied vir enige iemand wat kan bewys dat ons die grond gesteel het maar niemand het nie. Ek het n ou onderhoud op RU-vid van John Vorster gesien (Firing line with William F. Buckley) net voor die '74 verkiesing waar hy sê dat die regering reeds in 1936 besluit het om 7.25 miljoen morge grond te koop en as ADDISIONELE grond te gee aan die tuislande. Tydens die onderhoud het hy gese dat daar reeds 7 miljoen morge gekoop was van Wit mense en dat dit al reeds aan die tuislande oorhandig was. As ons nie die grond gesteel het nie en ons betwis nie eens die ANC en EFF se leuen nie is ons sekerlik die grootste idiote in die geskiedenis! Kom ons vat die ANC hof toe. ANC waar is jou gedetaileerde lys van grond wat gesteel was? Ons kan grondonteiening sonder vergoeding nek om draai eens en vir altyd met so n hofsaak. Omdat ons nie vir die ANC en EFF se hulle lieg oor die grond nie dink almal al klaar dat ons die grond gesteel het. Deur ons stilswye kondoneer ons die leuenaars se leuen. Ons kan dit nie in hierdie geweldadige land bekostig nie. Hoeveel plaas aanvalle en haat is nie al deur hierdie leuen veroorsaak nie en hoeveel nog? Bennie van Zyl se vir my so n hofsaak sal omtrent R5m kos saam met litigasie want die ANC sal definitief apelleer. Die TLU het nie die fondse hiervoor nie. Om as n regering dit jou doelwit te maak om mense se grond by hulle te steel gebaseer op jou eie gefabriseerde leuen. Om mense se grond by hulle af te vat is gelykstaande aan n oorlogsverklaring. Die ANC breek die land ekonomies af as ook die samelewing, tewens die ANC hits rassehaat aan teen die Blankes as die sê ons het die grond gesteel. Hoe kan daar verwag word van ons om verder ons belasting te gee aan die ANC en belangriker om deur die ANC regeer te word? Wat sal n groep redelike persone doen onder hierdie omstandighede? Of eerder waarop is n minderheidsgroep in ons omstandighede GEREGTIG? Dit is eintlik die saak wat ek wil begin. Blankes sal baie meer as R5m gee vir hulle vryheid. Ek dink nie mense besef dit nie maar dit (die ANC se leuen oor die grond) kan DIE REDE wees wat n hof (insluitend die Wereldhof en VN) se uitspraak in ons guns swaai as ons besluit om ons self te distansieer van die huidige politieke bedeling. Bruin en Indier wil ook onder die ANC uit kom, ons staan nie alleen nie. Dis nie net n Swart en Wit kwessie nie. Dit gaan oor waardes, breek jy af of bou jy. Blankes bou, ons kan nie langer onder die afbrekende ANC regering aan gaan nie. Die ANC is DIE REDE vir die verval v.d. land. Daar is honderde indien nie duisende bewyse hiervoor wat in die konstitusionel hof voor gele kan word. Hoe kan ons hierdie saak verloor? Om Swartes titel regte te gee vir die grond waarop hulle bly in die ou tuislande sal die grootste welvaart skepping ooit in die land tot gevolg he. Hoe is dit moontlik dat die ANC en EFF nooit daaraan gedink het nie!? Die huidige stelsel waar grondeienaarskap onmoontlik is, is juis DIE REDE (histories en huidiglik) vir Swart armoede, Swart verstedeliking en plakkerskampe. Die ANC se hy is Swartes se "Liberator" maar hy lieg. Die ANC is Swartes se "Opressor".

Did Winde say where 99,000 newcomers to the Cape came from? Definitely not property investors.

Fingers crossed for a new GP cabinet…

Property values will go down as long as we have idiots as politicians. My property was rezoned for high density housing. 10 Years later bulk sevices was still not delivered by the useless Tshwane municipality. It is beyond their mental capacity. For that to increase in future is practically zero. Cobus🐳

Magnus is 100% correct. My family (reluctantly) left SA 2 years ago to return to the UK. I sold my UK house in 1982 and bought a house in Joberg with the proceeds. I upgraded my property with a pool and outbuildings during my time in SA. On selling my property in SA, I find that the amount I received, when converted into British pounds is now only 30% of the value of my original UK property I sold 40 years ago!!! Therefore my SA property declined by 70% when valued in REAL Money. The reasons are all those mentioned by Magnus and of course the devaluation of the SA Rand. In 1982 the rand was at R1,50 to the British Pound Compared to around R21 at present.

Got a property in Cape Town, in the school belt. My worry is, as the wealth continues to flood into the WC, so will people looking for jobs. Not even the DA can govern that well, when the city and surrounding area's are ballooning.

I always knew there was something about Liberty.

Property agents from Jeffreysbay are looking for houses .The Big Trek (move) to the south is going to increase exponentially in next 5 years.Sell and go of you own property up north.

Certainly not in the Western Cape - The demand for Property in the WC is growing by the minute - Most Agents don’t have enough stock to sell - The evidence of construction in the CBD speaks for itself !!

Pretoria and Johannesburg a cash cow for ANC councilors? DA been in power there all along.

We semi grated from Joburg in 2014/2015 and the money we lost selling our house in Randburg we have doubled back in cape town in 7 years. so much better for it but I hear what Magnus is saying in that a couple of years the WC could also slam on the brakes when the smart money is gone. Buyer beware.

Huge demand in the WC - Cape Town and the suburbs for freeholds. Actually increased recently. Possibly due to better governance, or unrest in KZN last year, or power outages not as bad here - or maybe even Covid - folk working from home. I guess as the rest of the country becomes more degraded, one city (in this case Cape Town) becomes richer. Seen it all over Africa

I agree that value of property is declining in 80% of South Africa..due to Swatters,Student Residents that are not controlled well South Africa is becoming unbearable to have peace, therefore properties are not an attractive investment currently.

This channel is fast becoming one of my favourite crypto channels, thanks guys!

Perhaps some smarter people than I can distill things down into simpler terms? Some other analysts (whom I've just read) currently claim that listed property has outperformed every other asset class in SA, with a slight dip in 2022, and three short-lived dips previously from 2002. Why such a massive disparity in analysis? How can they both be correct? If listed (and owned investment residential / other) property has been such a terrible investment as Magnus states, how is it that other analysts are coming up with such apparently disparate numbers? Personal experiences are one thing (we are having a good run, but clearly some others are not) but they do not and cannot indicate a "market average", basic win / lose, or trajectory of a market unless it is happening en masse? The average market (or sub-sectors of a market) numbers surely tell the truth, but the real question seems to be the interpretation of the same numbers??

Too many people with their heads in the sand. Its fact and reality! I may be wrong, but read somewhere about a year ago that Fourways Mall was under curatorship....?

Semigration places a huge amount of strain on limited resources, which the DA is NOT addressing with infrastructure spend such as new Dams/Reservoirs, new expansion of waste treatment facilities, no waste disposal incinerators, etc. The Western Cape needs new management, although I fear it is too late for this, but any party that commits to these crucial infrastructure projects will be better than the DA. imho.

WC is going to run out of water

Investing appropriately today can save you a whole lot of stress in the nearest future

And Emigration!

For WC semigration they must not just take the number of wealthy people moving!

Die Groot Trek reversed, who knew prior to 2009..

Southern Cape new growth area.

Ag die plek is moertoe . Of jy bly en koop n plek wetend dat jy geld gaan verloor of jy klim op n vliegtuig en toer . 😂 Maar eish dis nie maklik om net te toer nie. Dit vat baie geld and prepare yourself for big difficulties overseas . The grass is not so green on the other side. Believe me . 😅I did it . Difficult difficult difficult.

Zimbabwean

I grew up in a family where the question was always asked in passing - What would invest your money in - “A m3 of Concrete or a m3 of Gold” - And the conclusion was always “A m3 of Concrete” - I’ll leave it there - 😃😃✅✅👍👍👌👌 - Property will Never be a bad investment irrespective of the timing - !!

Semigration will never stop in cpt..never ever using his words

The prices for houses in Paarl is absurd high

Western cape property values are doing just fine.

You will own nothing and you will be happy

Loved it, funny observation, he looks just like white Tito Mbweni, except not as cocky 🤣

All the Cities he is speaking of were run by DA-headed coalitions... it seems we are separating their historic performance from current issues.

Not only our money its now our lives handed over too a 1% er mayor this should be of great concern,

A failed state; SA

Class action against directors of Accelerate Property Fund, many investors lost their pension monies investing in a property fund bought by Giorgio , now they want to give you some of their rubbish shares 😫

Shit I just bought a house.... lol

Wow Magnus, men are solely guided by their heads ? 😂

Where do u think the people will stay? There will always be a supply of tenants, if u chose location well.. The vast majority of people cannot afford to immigrate or semigrate. Basic human need, its not complicated.. I know people with profitable rentals in Zimbabwe to this day. But please continue the doom amd gloom. Nice and cheap properties poping up

Major residential properties in suburbs is becoming unbearable to live in and you can't get your value even if you sell

The property market will never improve,only when more people are employed moving into the middle class will the demand increase.Poverty is the enemy.

Aaahh...DUHHHHH

Moeny is slowly to WC,ill just buy Gold.

If you look at US, retail is also a major risk. Online shopping will result in the continued downward spiral of retail space.

All thanks to Squirrel and his goons.

The perennial bear… couldn’t have labelled him better! Listed property is but one portion of property investment. Magnus’s bias to you giving him your money and you not doing private residential investment stands out like a soar thumb

CAPE TOWN ... DUH

"They ask me why I write all of these negative articles" coz you are a permabear when it comes to SA.

The Western Cape is still in South Africa - Read this comment again in 48-60 months...

I disagree with Magnus about property investing in South Africa. There are still great Cashflow investment areas in South Africa, especially in the residential market. Magnus is largely referring to property investing for Capital Appreciation, which is far more risky than cash flow and that goes for any where in the world. I just don't think he is painting a true reflection on SA Property. I would like to see him in a debate with a property expert.

be warned, Western Cape is reaching its peak.

Most people dont understand how to make money with property...the secret is knowing what where to buy...if you sit with it for more than two years without selling it for a profit...its a dut !!!! Buy and selling...thats the se cret never try to pay off 5 houses...its going to bite you in the ass.

Tĥankyou . How can I move R1 mill . Twice in one yr.