PROPERTY NEWS - If you are a first-time international buyer and looking to invest in property for sale in Oudtshoorn, then there are some things you may need to understand before pushing ahead with the deal.
The South African property market is highly attractive to outside investors, with a major interest from Europe as well as increasing interest from buyers across Africa. At present, around 7% of land in South Africa is owned by foreigners, and although there was a little concern when it was revealed that there could be a ban on foreign land ownership in the country, the market remains open to investors.
The Global Property Guide cleared up matters by reporting, "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."
As a foreign buyer, there are some things that you need to consider though, especially when bringing in money from abroad.
Firstly, you able to deposit funds into a bank account in South Africa for your purchase, but funds are normally put into a trust account that belongs to the estate agent or transferring attorney. They will then deal with transfer duty and legal fees, and you should get a "deal receipt", which needs to be kept in the event that funds need to be repatriated. It is also possible for you to open a non-residential bank account from overseas, but it requires several documents.
When looking to get a bond, you can approach lending banks and other financial institutions, but you will only be able to borrow 50% of the property price. The other half of the payment must either be financed by a foreign bank or paid up using cash.
