Reasons to invest in island homes hold water

Mauritius has long been a key focus for South Africans looking for an island home, because of its proximity to their home country. And they are not the only ones enamoured with island life. Mauritius ranks in the Top 5 Best Islands in Africa and the Indian Ocean, according to Condé Nast Traveller’s Reader’s Choice Awards 2020.

And, above and beyond the natural beauty of the destination, there are other substantial motivations for realising the island dream. Mauritius has attracted a steady number of HNWIs over the past decade, perhaps due to the ease of doing business in the country. Notably, Mauritius ranked first in Africa and thirteenth worldwide in the World Bank’s 2020 Doing Business Report. New World Wealth analyst Andrew Amoils says: “The country is now home to around 4,000 HNWIs (as at June 2020), compared to 2,500 HNWIs a decade ago.”

Mauritius is strategically located in the Indian Ocean on the Asia-Africa Growth Corridor (AAGC), providing access to Africa, Europe, Asia and Australia. The AAGC is a collaborative vision between India and Japan to promote development, connectivity and cooperation between Africa and Asia as part of a “liberal and value-based order.” It is designed to foster sustainable and innovative development, giving priority to development projects in health and pharmaceuticals, agriculture and agro-processing, disaster management and skill enhancement.

Safe space, happy place

The US Overseas Security Advisory Council rates Mauritius as one of the safest countries in the region for resident and visiting foreigners. And outside the fast-growing financial services and business sectors, people continue to search for stress-free living and better work-life balance. The World Happiness Report 2020 ranks Mauritius as the happiest country in Africa, according to citizens’ ratings of quality of life.

English is one of the island’s official languages; upmarket developments encourage social interaction through exclusive beach clubs and communal spaces; international schools and university campuses broaden the education offering; the healthcare system is well developed; and driving is on the left-hand side of the road. What’s not to love?

What’s more, Mauritius is multi-ethnic, multi-religious and multicultural so you’re spoilt for choice when it comes to cuisine. Outdoor enthusiasts, bird lovers, water-sports junkies, golfers, beachgoers, hikers, climbers, trail-runners, and cyclists have endless opportunities to keep fit and relaxed.

Into the future

If you’ve been sitting on the fence about whether to move permanently to Mauritius, this may be the time to do it. After all, the global financial crisis in 2008/09 actually pushed more buyers to Mauritius. Many investors were inspired to make the change with a view to spending their retirement years in a different environment.

Mauritius consumer prices may be higher than in South Africa, but the rate of inflation on the island has been lower over the past decade. In February/March 2020 it stood at 2.2% compared to South Africa’s 5.2%, which suggests the cost-of-living differential between the two countries is fast closing.

One of the major incentives to move to Mauritius, particularly for South Africans, is the tax regime. Mauritian tax residents are taxed only on their Mauritius-sourced income. Personal and corporate income tax is capped at 15%, and there is no inheritance tax or capital gains tax on properties purchased. significantly, there are no foreign exchange controls.

In addition, the entry point for permanent residency with property investment dropped by a whopping USD125,000 in the Mauritius 2020/2021 Budget. That means you get permanent residency for yourself, your spouse, your children up to the age of 24, and your dependant parents when you invest USD375,000 in property earmarked for foreign investment (subject to Economic Development Board (EBD) approval).

Why expats love living in the north

“South Africans are among the leading foreign buyers of property on the island,” says Tim Mertens, chairman of Sovereign Trust SA. “The most important thing is not to make life-changing decisions based on a friend’s recommendation. You have to take advice from the experts, who can unpack the various country and investment options available to you based on your specific needs. That way, you can end up unlocking a range of benefits you didn’t know were even possible.”

Setting up a business in Mauritius is quick and easy, and there’s already a sizeable community of South African expats in the north, making it familiar and easily accessible. Many have taken advantage of the EDB’s real estate development schemes devised to encourage foreign investment. Over time, the Property Development Scheme (PDS) has replaced the Integrated Resort Scheme and Real Estate Scheme, and allows the development of a mix of residences for sale to foreign nationals, citizens and members of the Mauritian diaspora.

The PDS provides for the following:

• The development of luxurious residential units on freehold land of at least 0.4220 hectare (1 arpent);
• The development of at least six residential properties of high standing;
• High-quality public spaces that help promote social interaction and a sense of community;
• High-class leisure, commercial amenities and facilities intended to enhance the residential units;
• Day-to-day management services to residents including security, maintenance, gardening, solid waste disposal and household services; and
• Social contribution in terms of social amenities, community development and other facilities for the benefit of the community.

Ki Resort is the only cosmopolitan, resort-style living environment in the north that is within the budget for permanent residency. Here you will also enjoy the type of services you’d get at an upmarket hotel and exclusive access to a stylish beach club.

Serenity Villas is one alternative if you want more exclusivity, featuring only 11 well-appointed, three- and four-bedroom homes on plots ranging from 1,000m² to 2,000m². The villas are positioned in a beautifully landscaped garden, just 600 metres from the 2Beach Club.

2Beach Residences in Pereybere has a more contemporary look with chic modern architecture featuring solid wood and black stone wall cladding as focal points. Spread across three blocks incorporating 24 two-bedroom residences, these are the perfect investment for short-term rental returns. What’s more, these homes are in walking distance to everything – restaurants, bars, beach and water sports, and more.

For pride of place at one of the last available beachfront locations in Mauritius, look no further than Casa Alegria. Here homeowners indulge in the best of seaside living, with direct access to Pereybere Beach and spectacular views of the Coin de Mire offshore island nature reserve. Indoors, the luxuriously appointed residences combine comfort and modernity. A private rooftop terrace ups the ante for penthouse owners.

For property investment opportunities, contact 2Futures consultants Rinie at +230 5817 75 or rb@2futures.com or Sandra at +230 5474 0302 or sc@2futures.com.