South Africa is a good place to find a cheap property with many available on the market. The African housing market boasts a wide range of quality, comfortable homes that will give you good value for money. Here are some tips to buying a property in the Republic of South Africa.
Rent a property first
South Africa has seen many of its property prices drop considerably over the last few years thanks to the global recession. This has made buying a property an attractive opportunity as you will get more for your money than you would in the UK. Renting is also extremely cheap compared to the UK and it’s a good idea to rent whilst you search for your dream home. A fully furnished two bedroom apartment may cost about $500 to rent per month in one of the larger cities.
Use local knowledge
As with most locations an estate agent is an extremely useful resource to employ to help you find a new home. An agent is the best way to get up to date and accurate pricing data in an area. For help with dealing with any tax issues you should a lawyer, they will save you a lot of confusion and hassle.
Costs to budget for
Once you have found your new home you will have to pay a couple of extra costs to finalise any deal.
Typically these are:
Transfer Duties – A government levied tax. Above R330, 001 will result in a fee of R7, 000 plus 8% of the value over the R330, 000 thresholds.
Transfer Costs – These costs are created by the solicitors and are typically 2% of the property’s value.
Rent your UK property
Before moving to South Africa you should consider whether it would be worth renting out your home in the UK. If you have the funds to purchase a South African property without having to sell your UK home then renting it out is the way to go. Your home in the UK will generate a good source of income every month easing your cash worries in your new country.