What’s in a rate?

South Africa - foreign currency a great deal
South Africa – foreign currency a great deal

For those with foreign currency a great deal. For those holdings pounds, Euro’s and dollars (as well as most major currencies). Consider:

Buying a home

  • A 3 million rand home in May 2012 would have cost Euro 284,400, GBP 229,800 or USD 354,600
  • A 3 million rand home in May 2013 will cost Euro 250,800, GBP 212,400 or USD 324,000

Saving:

  • Nearly Euro 30,000
  • Nearly GBP 17,000
  • Nearly USD 30,600

Having an income from abroad

For those retiring in South Africa a similar effect happens with overseas pensions:

Pension income in May 2012 Pension Income in May 2013
20,000 Pounds sterling ZAR 260,000 ZAR 282,000
25,000 Euro’s ZAR 263,000 ZAR 299,000
30,000 Dollars ZAR 253,000 ZAR 277,000

Of course the other effect is that it makes it easier to meet the immigration requirements of R20,000 per month for retirement and R7.5 million for independent retired persons permits.