For you to buy a house in South Africa as a foreigner then you need to know all it takes. As they say, “knowledge is power”, knowing what to be done saves you a lot of time and unnecessary expenses. This article is written to help you with all that you need to know to buy a property in South Africa as a foreigner.
As a foreigner, buying houses and properties for sale in South Africa has no restrictions although lower mortgage limits typically apply. Due to the devaluation of the Rand, you may buy a property cheaply in South Africa, with few additional fees. However, mortgage options top out for non-resident buyers at just 50% of the property purchase price.
Furthermore, before you finally decide to buy a property in South Africa as a foreigner, there are some certain researches that need to be done to ensure you get the right property suitable for you.
- Hire an Estate Agent
Usually, it is easier to get properties or houses on sale through real estate agents. If you want to buy a property in South Africa as a foreigner then you should employ the services of an agent as they tend to have a vast knowledge of properties and houses on sale/lease.
- Determine the Affordability of the Property
Affordability has a lot to do with the price/cost of the property you want to buy. Consider your income and what you can afford before you decide on the property to go for.
Check that the location of the property is safe and secure and it is something that suits the purpose. If you are buying a property for a company then consider a location that meets the company status and description. If it is a residential property then you will have to go according to your liking in background and environment.
- Assess your Credit Record
If you will be buying the property on loan then you should check your credit score. This enables the bank to determine how much of a risk you are. Infact, it is the highest factor that determines your chances of home loan approval. If your credit score is above 600, you have a better chance of getting a loan.
How to buy Property in South Africa as a Foreigner
Also, ensure you get the necessary documents relevant for you to be eligible to buy a property in South Africa. These documents must be legit and authentic.
Documents Required to Buy Property in South Africa
- A copy of your ID document.
- Your Passport
- A copy of the offer to purchase containing both the seller and purchaser’s details and signatures.
- Proof of income.
- Six months’ worth of bank statements.
After you have successfully found a property/house suitable for you and that meets your requirements, the next step is to follow the instructions below:
- Make an Offer to Purchase
If you have gotten your finances in check and found the property of your choice, proceed to make an offer to purchase.The offer to purchase is a binding agreement between you and the seller that stipulates the terms and conditions for the sale of the property. The agreement states that you will be unable to withdraw without incurring significant penalties (unless the seller fails to fulfill a clause in the agreement).
- Arrange For Property Inspection
The offer to purchase should include a requirement for inspection of the property. This is your opportunity to discover any latent defects in the property. It’s important to be aware of what your rights are when it comes to this issue. The seller will also receive a copy of the report, and it’s up to you whether to request that necessary repairs be made.
After a successful inspection is completed, the next step is to make payment. If you are making a payment via loan and bond, then make the necessary applications to enable you pay for your property.
- Title deed registration
Once the bond has been transferred or payment made, the title deed is registered in your name at the Deeds Office. This confirms your ownership of the property.
If the payment of the property was made with a loan, the bank will keep the title deed until you have paid off the home loan, although you can request copies of the deed from the Deeds Office at any time.
The Title Deed registration process usually takes around 2 — 3 weeks or more depending on bottlenecks that may arise in the process.