Did you know that the festive periods in one of the busiest in the real estate industry in South Africa?
Many many foreigners decide to take the plunge and purchase a holiday home, permanent residence or an investment property.
We have asked Marco Garuti from SAHomeBuyers for his top 5 tips on buying a property in South Africa.
- Know your residency status – this may seem a strange tip for people looking to buy property but its of little use to own a property and then discover you cannot move into it as you do not qualify for a permit. You can take a free one minute eligibility test here.
- Get someone on your side – estate agents sell property and work for the seller – it is the sellers interests they have at heart and it is the seller who pays them. Buyers consultants work only for the prospective buyer, they should not represent sellers at all nor offer a selling service. For buyers this means impartial advice, legal assistance and lower prices.
- Know the areas – we have all heard of location, location, location and in South Africa it is perhaps even more pertinent. Take the time to discover and learn about all the areas that may be a possibility for you.
- Work out your total budget and barter – its not just the property price but the associated costs you need to know. Transfer duty is not cheap in South Africa and needs to be taken into account. If you are seeking finance know what you can borrow and the costs before committing to a purchase. The South African property market is not as depressed as many other countries but there are bargains to be had. Proper research and negotiation can result in huge savings.
- Do not sign offer to purchase documents without legal assistance – South Africa has a unique selling system which is seller biased. Offer to purchases are legally binding, usually without cooling off periods and are often completed with only the sellers representative for ‘help’. Once signed you are committed so ensure you get professional guidance from an expert who is representing you and your interests.