South Africa’s exchange rate and luxury housing in breath-taking locations is an ideal situation for foreigners who are interested in property investments!
They can invest in the South African property market individually or jointly, or by acquiring shares in a company that is the registered owner of a property.
All foreigners must invest one rand in the country for every rand they need to borrow. The amount foreigners or non-residents can borrow is limited to 50% of the purchase price. Approval is required by the exchange control authorities, and this depends on being able to prove the introduction to South Africa an amount equivalent to the bond amount borrowed.
Banks will only fund 50% of the purchase value of the property for non-residents. So foreign investors will either need to provide a 50% deposit, or pay cash and introduce the full amount into South Africa via the Reserve Bank to a designated bank account (which will usually be the trust account of the transferring attorneys) with a registered South African bank.
Although purchasing property in another country is a great investment it can feel like a daunting task if you are not sure what needs to be done. This is why you need an experienced Bond Originator who knows the market and has the tools and contacts to get the job done.
For more information please WhatsApp Martin Young on 082 447 3463 or info@selectabond.co.za