| The benefits of investing in property in South Africa are numerous. You’ll already know about the enviable lifestyle, climate and stunning natural attractions but the country’s first-world infrastructure and growing emerging markets also create ideal investment opportunities. - Set yourself a realistic budget and stick to it. It's easy to get carried away by properties beyond your price range, but you'll only torture yourself by looking round them. We can help you work out an affordable budget before you start your search.
- Choose your agent wisely. Be sure that you only deal with reputable estate agents who are registered members of the Estate Agency Affairs Board. The Absa website has facility to search for an agent per area.
- Use the internet. There are many good sites offering property for sale in South Africa, so you can get a good idea of what's available and book appointments to view before you travel.
- Take your time. Unless you’re very familiar with the region you’ve chosen, it’s worth visiting the areas and properties you like more than once. Talk to the locals and really think about whether you'd be happy spending long periods of time there.
- You can also find out by using PropertySPI - a great new service from Property24.com that gives you all the “inside info” you need to be a successful property buyer, seller or investor.
(http://www.property24.com/Property24/Reportshop/Default.aspx) - Check that your view will still be there next year. You can find out if any planning applications have been made in the area by visiting the local authority in the area, or the local town planners. In order to expedite the process, it is recommended that a South African attorney is used.
- If you're planning on renting your home when you're not there, do some research to see how much similar properties are being rented for and think about whether you'd like an agent to look after it for you.
- Think about the practicalities of getting and living there, like how far it is from the airport or public transport. Can you get there all year round? Will access to your home be affected by adverse weather? How far is it to the nearest shop or supermarket? How close to emergency services and healthcare are you? This is especially important in rural areas. Think about how far away the doctor, hospital, police and fire stations are. If the nearest doctor is over 45 minutes away, would it worry you?
For non-residents buying in South Africa, the process can often be complex and time-consuming. Legislation, foreign exchange regulations and economic factors can all act as obstacles.
- Find out how much you can borrow
This is dependent on your income and the type of mortgage you want. Bear in mind the maximum 'loan-to-value' amount (in South Africa loans for the purchase of property cannot exceed 50% of the purchase price or valuation) and your other outgoings. It’s important that you don’t over-stretch yourself to make your mortgage payments. - Set your budget
Be realistic as you calculate all the costs involved. You'll have a variety of professional fees, taxes and charges to pay on top of the price of your property. Ask your attorney to clarify all costs, such as transfer and bond costs, local council deposits and occupational rent. Costs fluctuate so make sure you have an up-to-date breakdown to incorporate into your budget. - Know what you’re looking for
The first thing to decide is what you need and in which area. There are many types of property you can invest in (sectional title ownership, cluster developments, ‘off-plan’ etc). Speak to your attorney or estate agent to find out more about each property type. - Search for a property
This is the most exciting part of the buying process. Once you’ve decided what you’re after, and where, speak to friends and relatives about the area or make contact with people living in the chosen area. Find out about issues such as transport, schools and crime or security.
When it comes to finding a property, nothing beats actually going to a location to check it out in person. Once there you can browse through weekly property advertising supplements and other methods of property advertising, such as the Internet, in order to get a good idea of the homes available and the current asking prices in various areas. If you are visiting South Africa drive around areas of your choice to look for properties with "For Sale" signs.
Consider the proximity to your place of work, schools, shopping centres, medical facilities, police station, post office, your bank, public transport and other amenities that are important to you. Ask your estate agent about the profile of the suburb, average cost of houses in the area and the future potential of the suburb from an investment point of view- or click on PropertySPI. (http://www.property24.com/Property24/Reportshop/Default.aspx) - Carry out a price check
If you’ve been out of the country for a while you may need to refamiliarise yourself with property prices in South Africa. It's worth spending time doing some research on prices for comparable properties in the area where you want to buy. This will make sure you don't pay over the odds for your property. Unfortunately, some sellers assume that a buyer, particularly from overseas, may not know the local market and set an unreasonably high sale price - don't get caught out! With these matters dealt with, you're in a much better position to go ahead with the purchase once you've found your ideal property. The next steps for you are: - Negotiate a price
Now is the time to haggle! Negotiate until you reach a verbal and non-binding agreement with the seller about the sale price and what is included in that price (for example, fittings that may be left behind). At the moment, everything is informal and there's no need for money to change hands. - Sign a Deed of Sale
Now is the time to start to formalise the sale. The Deed of Sale normally takes the form of a document titled 'Offer to Purchase'. The document sets out, in detail, the terms and conditions of the sale. It is imperative that you understand and agree with its contents before signing, if not sure consult with an Attorney Once you have signed an Offer to Purchase, and it’s been accepted in writing by the seller, you are legally bound to the transaction. - 5-day cooling-off period
After signing an Offer to Purchase you have a 5-day 'cooling-off' period in which to withdraw and cancel the Offer to Purchase should you wish to. NB: This only applies to properties with a purchase value less than R250 000. Once the cooling-off period has lapsed, the Offer to Purchase will be a legally binding contract. - Pay a deposit
Once the sale has been negotiated, any deposit should be placed in either a registered estate agent’s trust account or an attorney’s trust account until transfer of ownership is completed. The deposit is likely to be the difference between the purchase price of the property and the amount of the loan. Any interest that is accrued will be paid back to you on written request. - Arrange your mortgage or alternative finance
Absa has a number of mortgages to help you buy in South Africa. Call us to find out more. - Arrange a valuation
With a mortgage from Absa, we will arrange a valuation of your property on your behalf as part of the application process. - Set up a local bank account
You'll need a bank account in South Africa during and after the buying process. Apart from the property itself, you'll need to pay professional fees, taxes and charges on the purchase and utility bills and local taxes once the property is yours. - Conveyancing Attorney
In South Africa, an attorney specialised in property and known as a conveyancer will be appointed to give effect to the transfer of property. The Seller can choose who they want to appoint as their conveyancing attorney. Although appointed by the Seller, the conveyancing attorney will oversee the whole property transaction, make sure all property taxes are paid and ensure that the sale is properly registered. - Completion
At last, completion day arrives! The final contract needs to be signed by you in the presence of a mandated authority in your country, before the SA conveyancer can proceed. Absa will nominate the authority. - Pay for the property and applicable taxes
At this point, you pay the remainder of the purchase price to the conveyancing attorney along with his fees and any other taxes due. - Title will be registered at the Deeds Registry
The very final step of the buying process is when the seller receives the funds for the sale of the property and the conveyancing attorney registers the Deed of Sale with the Deeds Registry (this could take up to 3 months). You are now officially a homeowner in South Africa- congratulations! | | | | | Looking to buy property in SA? |  | |  |  | |  | | | |  | | |
