Super-rich put their money on SA

By contrast‚ high net worth individuals (HNWIs) with assets of at least $1-million have declined by 10% in the same period to 38 500 in 2015.

The report‚ published by New World Health in association with MasterCard‚ provides information on demographic trends and spending habits based on a sample of 1 800 local HNWIs.

“Insights and trends from the report emphasise that affluent consumer values are evolving from the material to the experiential‚ and this drives new and different expectations‚” said Mark Elliott‚ division president of MasterCard in South Africa.

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Andrew Amoils‚ head of research at New World Wealth‚ said UHNWIs were usually big business owners‚ while HNWIs had typically built their wealth through professional careers or owned a family business.

“While many HNWIs are choosing to leave South Africa and have most of their assets tied up in local property and equities‚ UHNWIs are staying … possibly because of their business interests in the country. The increase of this population can be attributed to the fact that they tend to hold more assets offshore‚ which acts as a currency hedge‚ and they are often involved in multiple businesses‚” said Amoils.

When it comes to the spending habits of the wealthy‚ classic cars‚ wine and art are popular. The most expensive car purchased by a South African collector last year was a 1960s Ferrari 250 GTO that went for R24-million. Other popular collectables include top-end men’s watches and rare wild animals.

The report says Plettenberg Bay is the most popular location for the super-wealthy to own a holiday residence‚ followed by Umhlanga‚ La Lucia and Knysna. Up and coming holiday home spots are Zinkwazi‚ Greyton‚ Tulbagh and Keurbooms.

- TMG Digital/The Times