Whether you’re a retiree, traveler or just want to settle down somewhere away from home, there are many places around the world that can accommodate your desires. South Africa is one of those places, as its rife with properties that are waiting to transform into your next home.
Although it’s easy to say that you want to buy a home in South Africa, the process isn’t as easy as you think. Though, anyone can buy a home in South Africa as long as they take the time to research the process.
What you should know… before buying a home in South Africa
According to some resources, buying a home in South Africa is ‘similar to that of buying a home in the United Kingdom, though with some distinct differences.’
When people do end up closing an offer on a home, they can’t end the contract without losing their associated deposit. Despite that, there are no known restrictions on foreigners owning properties in the country, as long as they don’t have a criminal record.
No matter where you live in the world, it’s best to have a home warranty so your appliances and other valuables are covered. There are many more reasons as to why you need one, but this is a key reason.
If you’re planning on buying a home in South Africa, it’s important to have some kind of legal adviser on hand to assist with the process. In most cases, a legal professional who specializes in foreign property transactions will provide you the help you need.
Any transfer and/or mortgage documents that you have can be signed at a South African embassy; alternatively, you can also get those documents signed in the offices of a notary public. In cases where VAT is involved, it’s only applicable to sellers who are VAT vendors; when it isn’t, transfer duties often apply instead.
As for the costs, you will have to decide how much you’re willing to put down as your deposit and as your monthly bond repayments. Most people accomplish this by subtracting a portion of their expenses from their monthly income.
Banks and other financial institutions will also grant bonds that have a repayment no more than about a quarter (25 percent) of your total monthly salary. You also need to take the transfer duty and conveyancing fees into consideration when dealing with your property’s expected costs.
Before you take care of all of the legalities, it’s important to find the property that you want to purchase. It’s always a great idea to visit potential properties that you’re able to visit, particularly if you want to ‘get a feel’ for the area that said properties may reside. It doesn’t hurt to do a little online research about your choice properties, either.