Buying Property In South Africa
Category General Property News
Foreign purchasing of South African houses is becoming increasingly popular. The country’s temperate climate and relative resistance to the recent economic downturn has made purchasing real estate in South Africa’s market more popular than ever.
Read on to find out why you should be buying property in South Africa and how to go about financing your purchase.
Why Buy Property In South Africa?
The South African property market’s greatest appeal to foreigners is usually the fantastic weather, unique landscape and leisure opportunities. Whether you’re buying a holiday home in Cape Town or a business crash pad in Sandton, buying property in South Africa holds great appeal.
More than ever, buying real estate in South Africa is more appealing because it represents a relatively stable investment platform. In comparison to Europe, South Africa has managed to insulate its markets fairly well against the effects of the recession due to a sound macroeconomic policy and its success in deterring national debt. This coupled with a steadily growing local market and predictions of a possible property boom in the next 5 years make buying property in South Africa a sensible decision.
Financing Your Purchase
Foreign nationals are able to apply for finance in South Africa with little red tape. However it is recommended that you seek the assistance of a reputable agency whose agents will be privy to information such as tax implications and applying for financial assistance. Lew Geffen Sotheby’s International Realty will appoint a mortgage originator for foreign buyers who will apply to all the major financial institutions in South Africa on their behalf to help secure a mortgage bond for your convenience.
Foreign nationals are able to borrow up to 50% of the purchase price, unless they have brought funds into South Africa on previous occasions. In this case they are able to borrow up to 100% of their South African investments which may be more than 50% of the purchase price. Loan approval is at the discretion of the South African Reserve Bank.
Foreign nationals do not have to open a South African bank account as funds can be directly transferred from an existing foreign account on the condition that an original letter of credibility from the foreign bank in question is obtained.
For more information about foreign purchases of South African property, please visit our FAQ's.