Bond amount: Establish the amount of the monthly repayment you can afford. For a fast and easy loan process, it’s advisable to have these items available when you are ready to complete your application: It’s worth remembering that the more information you have ready before you apply, the quicker your bond will be approved. While details of the main national estate agencies are below, you can find smaller, local agencies by looking in the white pages or yellow pages. Article by listed Attorney: Nanika Prinsloo. Here is a home buyer’s guide that provides advice to help make the home-buying experience as easy and problem free as possible. Bond approval: Not only has banking changed dramatically in past years, the new credit act has made it more difficult to get bonds approved, so get good advice and assistance with regard to home loans and bond finance. You can also find real estate agents that specialize selling in a particular area or focused on foreign buyers. Subscribe. Should you buy property in South Africa? This may be troubling for homeowners; however, these conditions are perfect when you’re looking to buy a property in South Africa. Read about insurance in South Africa. As a foreign buyer, you’ll typically need a deposit of at least 50% of the purchase price of the property if you are a non-resident. If you are self-employed then you will need a letter from an accounting officer confirming your income, or a statement of your assets and liabilities, Copies of the company’s financial statements. Several tax exemptions are available, however. South Africa’s Deed Registries are known to be on a high-standard and is said to be one of the best deeds registration systems in the world. In South Africa, lenders typically approve applications based on a predetermined set of requirements. The Estate Agent is involved exten-sively whilst choosing a property and concluding a Deed of You then must submit identification documents to the Deeds Registry so you can be officially registered as the new owner. What are the legal requirements to get a mortgage in South Africa as a foreigner? This then goes to the seller for approval. While the seller usually gets to choose the conveyancer, the buyer pays their fees. The housing problem in South Africa hit crisis levels, and although there are plans to aid the current situation through government intervention, there are still countless people living in abject poverty. Start with their Bond Calculator, then use the ooba Home Loans Bond Indicator to determine what you can afford. According to data from the 2017 General Household Survey (released June 2018), 53.5% of households own their own home. If you do not have the full amount, you need to know who will finance your project. South Africa has one of the best Deeds Registries Systems in the world, which makes it very safe to purchase and sell property in this country. What is a good credit score if you want to buy a house? Your credit score is a big number above your head that tells a potential lender how much of a risk you are. The more supporting documents you have at the ready, the smoother – and quicker – your bond application process will be. This is particularly the case in more popular areas such as Cape Town, Pretoria, Durban, and Johannesburg. Foreigners, resident or not, can legally buy property in South Africa, and apply for a mortgage. Read a detailed explanation of these costs in our blog article. If you intend to stay in your South African property, you’ll need to apply for a visa, depending on your country of origin, the purpose of your visit and how long you plan to stay. You can make more informed decisions about buying a property when you know how old it is, what it last sold for, and how it compares to similar properties in the same or different areas. With the Rand (ZAR) devaluing in recent years, it’s now significantly cheaper than it was for foreign currency buyers to purchase homes in South Africa. Find property in South Africa with Rightmove.co.uk - the UK's number one property website. Unlike some countries, there are no government incentives for people building their own home. Speaking of the home loan application process, ooba Home Loans offers a range of tools that can make the home buying process easier. Buyers guide Property developer … While the bill does contain restrictions on what type of South African property foreigners can own, the focus is on agricultural land. As part of the home buying process, you’ll also need to take out building insurance. How to buy property without a home loan It is important that there is more than one way to go about purchasing a property in South Africa, you even have options when it … If you choose to build your own home, in addition to buying a plot of land (either from a house builder or privately), you must appoint an architect to design the property and a builder to turn your plans into reality. Most mortgage products in South Africa don’t come with early redemption penalties. The housing market in South Africa, however, is currently experiencing a tough time. Foreigners may purchase and own property in South Africa without any restrictions as they are subject to the same laws as South African nationals. Buying a house is a big financial commitment, and can be a lengthy exercise. As with buying in South Africa, fees can be high. They sometimes base the amount they lend on their valuation, rather than the purchase price. However, once you’ve begun the home loan application process, your ooba Home Loans finance expert will advise you of all the documentation required for your particular situation. A traditional method of sourcing properties is registering your preferences with as many agents in the area as possible and hoping that they are diligent enough to find you the right home. The chances are that it won’t impact most investors looking to buy a holiday home in South Africa, or a retreat to retire. If you are looking for your dream property in South Africa, you have come to the right place! Article summary. Here’s a brief overview of the advantages and disadvantages which need to be considered when deciding whether to build or buy a house. Transfer cost: Do not forget to include the costs of transfer duty tax and conveyancing fees that are normally payable by the buyer. Individual banks will set their own terms, as well as needing to work within the legal requirements of the South African Reserve Bank. CERTIFICATES REQUIRED FROM PROPERTY SELLERS. Some banks will require you to set up a South African bank account so your mortgage payments can be debited, although this is not always the necessary as payments can be arranged from an international bank in some cases. You can find a listing of housing services and real estate agents in South Africa. The relatively low cost of property compared to many western European countries has made buying in South Africa an appealing option. Taxes depend on the price range of your property. How to find houses for sale in South Africa. You will need to provide a salary slip (not older than two months), or a letter from your employer with a breakdown of your salary and deductions. Here are some things to consider to ensure your property purchase in South Africa is secure in all of the following aspects. 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