What foreign property investors should know about buying property in SA
Don’t be put off by recent confusion regarding foreign ownership of South African land. International buyers are able to purchase residential property for sale in Gauteng, and we have compiled some helpful tips so that you can approach the market in full confidence.
Navigating the South African property market can be a little daunting if you are a foreign investor looking at property for sale for the first time.
Recent uncertainty over whether or not there would be a ban on land being owned by foreigners had some worried, but that has since been clarified. This was summed up perfectly by the Global Property Guide as they stated, “Following plans to introduce a bill banning foreign ownership of land in South Africa, made public last year, the South African government has clarified that the ban will not apply to residential properties, but only to agricultural land.” This means that you can still secure property all across South Africa, with some incredible residential opportunities on offer in Gauteng.
Whether you want to start off small or snap up some high-value property in some of the stunning security estates, you will be spoilt for choice. However, it is important to note that as a foreigner, you need to be prepared to go through a bit of a process.
You can approach local lending banks and other registered financial institutions, but only half of the property price can be financed by them. The other half of the payment needs to be done in cash, or financed by a foreign bank. You can also transfer funds into a local bank account, with many opting to transfer their money into a trust account owned by the estate agency or a transferring attorney.
Always ensure that you approach an estate agency that has experience with handling purchases globally. They should be able to explain the entire process to you and ensure that matters are dealt with ethically and professionally at all times.
