Shrewd Overseas Property Investors eyeing up South Africa
The 2010 World Cup is not that far away now and many investors are weighing up what impact this Global Event will have on South African property prices.
It has been a long while since an event of this type has been staged in a country where the economy is not as strong as the usual venues, so the question is what effect will the Global Media attention and the expected injection of £1.5 billion have on property?
In strong property markets there is always link between infrastructure investment and property values so on this basis alone the omens are looking good for surge in property prices as the World Cup bandwagon begins to gather momentum from 2009. Take a look at property for sale in South Africa
Add in the potential to cash in the on the inevitable huge clamour for rental accommodation (just ask owners of Portuguese property what European championship did for their rentals!) it’s no wonder interest in South African property for sale is on the up. On the FIFA World Cup Web Site you can find details of the venues and the locations and our database has lots of useful information about all aspects of owning a property in South Africa
What’s the cost of buying a property in South Africa
Once the price has been agreed it usual to be asked to pay a 10% deposit and stage payments if the property is off plan and the final balance on transfer of your property in South Africa. Listed below is a short guide of some of the additional costs you should expect
1. Transfer costs, conveyance and lawyer's fees. Costs may vary between different lawyers. On average you should expect to pay between 1% - 2% of the purchase price to cover these fees.
2. Transfer Duty. Transfer duty is a tax determined by the government on transfer of ownership of property. The rates are
No duty up to R500, 000 (£35,512)
R500, 001 – R 1,000,000 (£71,024) rate of 5%
R1, 000,001 and over a rate of 8%.
All rates are on the based on the selling price of the property.
3. Stamp Duty. Stamp duty is approximately 0.2% of the mortgage amount
4. Capital Gains Tax (CGT). The first R1, 000,000 of any financial gain on the first property you own in South Africa is exempt from CGT. The proportion of any gain, included in taxable income, is 25% for an individual person and 50% for companies, businesses and family trusts. CGT applies to both residents and non-resident’s in South Africa for immovable property.
What's the process for buying a property in South Africa
Once a purchase price has been agreed a deposit is sometime required. This is normally around 10% of the purchase price.
The Transfer procedure.
The transfer procedure is done by a conveyancer or lawyer. The documents are lodged in the deed registry along with any existing mortgage bonds and the registration of new mortgage bonds. Upon registration all existing mortgages are cancelled with the registration of new mortgage bonds by the purchaser in favour of the bank granting financial assistance.
The purchaser is then registered as the new owner of the property, the purchase price is paid to the seller and all fees are paid.
All contracts must be in writing, signed by both parties. The contract is usually referred to as the Agreement of Sale or The Offer to Purchase.
Getting to your property in South Africa
Flight duration will vary from depending on where you flying from and the destination you
are flying to. It will take approximately 10-11 hours to fly form the UK to Cape Town. Cheap flights to South Africa
Useful Contacts in South Africa
British High Commission, Pretoria
Consular Section
Liberty Life Place
Block B
256 Glyn Street
Hatfield
Pretoria 0083
Postal Address:
PO Box 13611/13612
Hatfield, 0028
Telephone enquires:
Monday – Thursday
07:45 – 15:45
Local Time Friday
07:45 – 13:00
Local Time Monday – Thursday
05:45 – 13:45 GMT
Friday – 05:45 – 11:00
Visa Section:
Tel: 012 421 7082
Fax: 012 421 7888
Passport Section:
Tel: 012 421 7801
Fax: 012 421 7877
Website: http://www.britain.org.za
British Consulate General, Cape Town
15 th floor Southern life centre
Riebeck Street
Cape Town 8001
Postal Address:
British Consulate-General
PO Box 500
Cape Town 8000
Consular/passport enquiries:
Tel: 021 405 2400
Fax: 021 405 2449
Defra
Customer contact unit
Eastbury house
30-34 Albert embankment
London
SE1 7TL
Tel: 08459 33 55 77
Email: helpline@defra.gsi.gov.uk
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Type of Article: Local Information in South Africa, Property Buying Information in South Africa
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Location: Property in South Africa