Any foreigner can buy real estate in South Africa. This includes, unlike in Namibia, farms and agricultural land. Due to the favorable exchange rate, property in South Africa is affordable. For example, a house in a good area of Cape Town, with a swimming pool and a large garden, costs just over $250,000.
Apartments are offered for less than $100,000. In other areas, such as the KwaZulu-Natal province, it is even cheaper. The Cape region is the safest place to invest in property as there is still a strong influx of buyers from the Johannesburg area, keeping prices high. The Garden Route is also a growth area.
Real Estate Agents
The real estate market across the country is firmly in the hands of a few real estate agencies. Private sales are relatively rare. In South Africa, the agent is paid by the seller, so you can easily turn to an agency (see the real estate information page), if you are interested in buying a property. When signing a contract or a purchase offer, the agent will take care of the necessary legal procedures.
market survey
To get an idea of the market situation, one must take a critical look at the properties available in the preferred area. The big newspapers (eg Cape Argus) publish a large property section every weekend, where you can find almost every place for sale, advertised with photos. Many homes are “on show” on Sundays, which means you can view them without an appointment.
real estate prices
The property is usually advertised at a price that is 10-15 times higher than the price the seller hopes to achieve. You should keep that in mind and bid accordingly, if you are interested in buying something. If the seller accepts your offer, a down payment of 10 percent is usually required.
The property transfer is handled by a lawyer, who also ensures the transfer of the payment. Registration at the “Deed Office” takes 6-8 weeks. At that time, a transfer tax is charged, which ranges from 5 to 8 percent of the purchase amount, depending on the value of the property. The lawyer receives about 1 percent.
Property Financing
Be very careful if you are considering financing a home purchase with a bank loan. The local interest rate stands at approx. 13 percent at that time. European banks are very reluctant to finance property in South Africa, so payment in cash is often the only option.
Shopping at African Farm
Many people dream of having a farm in Africa. This dream can be fulfilled, but one, particularly a non-farmer, should not underestimate the problems that come with owning a farm. Without proper knowledge, such possession can become very expensive. In the Cape area, agricultural property, especially lucrative wine and fruit farms, has become very expensive.
An affordable option remains a farm in the Natal Midlands, below the Drakensberg, where a veritable paradise of forests, rivers, streams and lakes can be had on hundreds of acres for less than $300,000. Game farms, especially in Mpumalanga, are also interesting investment prospects.