Guide to buying abroad in South Africa
Over 30% of UK visitors to South Africa at some stage are said to return to make an investment in property.
Surrounded by the ocean on three sides to the west, south and east, South Africa owes a lot to its proximaty to the sea. Its growing trade in tourism makes the most of its 3,000 kilometers of coastline. Famous for its whale watching, seals and penguins South Africa is exciting and its growth in popularity with British people is on the increase.
Its wine growing Western Cape is vast and increadibly beautiful. The vineyards strech as far as the eye can see and with land in abundance, the strength of the pound and increasing efforts to improve the lives of Black South Africans, it has become a property hot spot.
Cape Town with its working port is an exciting city, in fact it has been voted as one of the most wished for holiday destinations. Flying time is roughly 11 hours to Cape Town with only a one or two hour time difference night flights are popular with travellers not wishing to suffer jet lag.
In South Africa private sales used to be an exception to the rule. Now more more companies are wishing to relocate their business in South Africa bringing with them employees.
The emergence of affordable property open to overseas investors has pushed the price up in some areas. Estate agents are paid by the vendor but will still have an ear open to offers much as in the UK. As with all property purchases you should seek professional legal advice to protect your interests. Your legal representative will receive around 1% of the value of the property.
Properties are usually advertised at a price which is around 10% above the price the vendor expects to achieve. If your offer is accepted you will need to put a down payment of around 10%. In most cases non-residents in South Africa will only be able to borrow a maximum of 50% of the purchase price.
The attorney will handle the transfer of the property and also secure the transfer of the payment. Registration takes 6 to 8 weeks" at the" Deeds Office" when a transfer duty will also be charged. The transfer duty will usually be around 5 and 8 per cent of the purchase price. This will ofcourse vary depending on the value of the property.
For more information click here where we detail lending criteria and buying in South Africa.
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