Just Back from South Africa and want to invest

[jpr792]

There is always much more in everything than what the eyes meet...

 

[Nyati]

Welcome to AH !

I would never do it. Sadly, the political situation can only get worse, it´s a question of time.

 

[Hogpatrol]

I know this is an old thread but though I would chime in on how just a couple months can change this whole game farm investment scenario.

Oddly enough, I've been on the receiving end of the opposite question of the OP, dis-investing, and was asked by more than one farm/game ranch owner what I would do if in their shoes. I told them I'd sell everything and either move to Australia or the U.S. With the unemployment situation in South Africa getting worse, rumblings of land confiscation, a small minority controlling 75% of the country's wealth and the country now being officially in recession, a better economy and an improvement in political stability is a ways off.
On top of that we now have State Department warnings about flying in to the country's main airport. Think this won't affect hunter numbers? Think again. I've had two prospects hot on going now getting cold feet after reading the reports of crime at O.R. Tambo and it wasn't their idea to reconsider. It was their spouses'.

 

[ArmyVet]

Hmm. Read the latest on murder rates in Mexico? Over 2200 for the Month of June. Don't see any resorts closing there.

 

[Hogpatrol]

Hmm. Read the latest on murder rates in Mexico? Over 2200 for the Month of June. Don't see any resorts closing there.

Most are drug gang related. That and Mexico has corned the market on loss leading tourism. You want cheap? Go to Mexico.

 

[Hank2211]

I have spent a reasonable amount of time in South Africa over the last 10 years, and I have gotten to know a fair number of people in the hunting and game ranching business. One common theme is that foreigners who invest in land or animals and are not on site are taken to the cleaners, time and again.

One example. I know a rancher/ph who hunted with a French client a few times. They got on well. The French client decided he wanted to invest in ranching sable. The PH would provide the land and the management, the Frenchman the money. Each would have their own herd of sable. The PH was regaling a friend of mine with the story of how the Frenchman's sable had no offspring that year, while all of his had twins. In another case where a herd was shared, offspring which the investor was told had died or never existed were sold and the proceeds pocketed.

You may have someone you trust '100%', but so did these people. Personally, when it comes to money, I find it best not to trust anyone 100%. I find I keep more friends that way. And more money.

 

[Philip Glass]

Don't invest in RSA! If you must "invest" in animals check out WildLife Partners in texas. You have a good chance of a return on the same animals and Zuma can't take the farm!
Otherwise buy a ranch in texas and do it yourself. I can consult on these matters if need be. I've stocked many ranches with exotic game and consulted with them to ensure success.
Regards
Philip

 

[BRICKBURN]

Here is a perfect example of the potential nightmare you could face.


https://www.africahunting.com/threads/sa-landowner-strips-four-farms-of-game.39596/

 

[BWH]

With all due respect.... go back & hunt to fulfill any pleasure. From investment side of things.... don't. If in love with real estate. Buy Texas..... i had a friend of a friend... literally... attended same "party's". He was making a shit ton of cash, had a few awesome safaris.... so he bought in, partnered up. Had naming rights.... a decade later. Even at the height of the African safari hunting excitement.... he lost his ass. Got a few free hints out of the deal. And this is a well known 5 star outfit.

 

[Hogpatrol]

Here's a scenario that's repeated so many times and been a failure. Couple goes on vacation to some far away place. Enjoys it immensely, decides to buy a "retirement" home there, retires, stays one season, they miss the kids, the grandkids, the rest of the family, their old friends, house goes up for sale, they move back to their old home area and more often than not, take a financial hit.

One of my relatives is in real estate in South Florida and has seen it so many times. Says number one rule of buying a retirement place of residence away from family and friends: RENT for ONE full calendar year, then decide. YMMV

 

[Philip Glass]

I have found out that having foreign investors has warded off the land reforms such as in Zimbabwe. I think RSA is worried about land reforms and if they have a number of foreign investors they could be shielded in the way Bube Valley Conservancy and others were.
Just a thought.
Philip

 

[tarbe]

3. While the political situation in South Africa has been one of the more stable in comparison to other countries, it has been deteriorating over the past few with Jacob Zuma seeming to take a position more like Zimbabwe's Robert Mugabe. Mugabe has been anything but friendly to land ownership to anyone white nor to anyone not affiliated with him even if they are black.

This is one thing i am paying close attention to and the manger reason i will be waiting to see what happens there

There is a reason the largest tax paying entity in South Africa (a company I happen to be employed by) is investing BILLIONS of dollars in the U. S. and not in their own back yard where they could directly employ South Africans.

Another thing I learned during the course of losing a million dollars...only invest directly in things you are an expert in.

Just my $0.02!

 

[Royal27]

Talking to Brian now at DSC. Very interesting!

 

[Hank2211]

Talking to Brian now at DSC. Very interesting!

Keep us apprised!