Cross selling Lisbon Cape Town
South Africa still a sought after destination for investment and holiday homes
BY CAMILIA DU PLOOY
Sunny South Africa – A world in one country.
South Africa, a culture rich and adventure packed country on the southern most tip of the African continent, offers a world in one. With inland safari destinations such as the Kruger National Park, economic hubs like Johannesburg and business and leisure capitals such as Cape Town. “It's difficult to think that anyone would want to live or spend their holiday anywhere else. We are well known as Sunny South Africa – and this is a big factor which makes us so unique and sought-after” stated Wendy Williams, Sales Director of Engel & Völkers Southern Africa.
Whether you seek a cosmopolitan lifestyle or country living, the busy night life of the city, relaxation in the bushveld or have a love for the sound of waves crashing on rocks - every single one of us longs for a place to call home. Although locals are not the only ones enjoying the variety the country offers – it is an appealing choice for foreigners. These are all factors that one should look at when considering your investment options.
Today a large number of investors are actively-seeking opportunities for buying South African property as well as long-term leases for foreign investment or business expansion. Foreign buyers of prime residential property have made a welcome return to the South African market, lured by attractive homes at equally attractive prices, a wonderful climate and a currency which is very much in their favour. These buyers hail from across the globe although Europeans are prominent.
“The residential property market currently makes South Africa a haven for foreign purchasers. Many locals are finding themselves negotiating with foreigners as they have the ability to fund cash transactions which promises a quick and hassle free process. This is where the Engel & Völkers brand truly shines as our international footprint in 36 countries makes the connection between local and international seamless” informed Wendy.
There are no restrictions in respect of property ownership by non-residents, save for a prohibition on illegal aliens owning immovable property within South Africa. South Africa is reputed to have one of the best deeds registration systems worldwide with an exceptional degree of accuracy and security of tenure being guaranteed. Property can be owned individually, jointly in undivided shares or by an entity such as a company, close corporation or trust or a similar entity registered outside South Africa.
According to STTB Attorneys, non-residents will of course be subject to the same laws and regulations as South Africans and it is compliance with these stringent requirements that ensures the efficiency of the South African land registration system and security of tenure.
Should the non-resident not wish to purchase the property in his or her own name but rather in the name of an entity, such entity must be locally registered and meet the requirements inherent in registration of the chosen entity, such as the requirements of the Companies Act.
A substantial percentage of the current market being fuelled by foreign exchange. Willing investors or expats looking to buy a permanent holding or holiday home can expect to pay on average in South Africa - R950 000 which adds up to about 53 000 Euro for a small home (80m²-140m²), R2 million or 111 000 Euro for a medium-size home (141m²-220 m²) and for really extravagant and special homes of between R20 to R50 million, this amounts to a mere 1.1 million Euros.
Property in South Africa has always, and still remains a solid and secure investment with an expected return – so whether looking at purchasing to live or to invest, ensure that you have knowledgeable and reputable guidance to take the next step.