Real Estate Prices
Property is usually advertised at a price which lies 10 to 15 above the price the seller expects to achieve. You must keep that in mind and make an offer accordingly, if you are interested in buying something. If the seller accepts your offer, a down-payment of 10 % is typically required. The transfer of the property is handled by an attorney (conveyancer), who also secures the transfer of the payment. Registration at the "Deeds Office" takes 6 to 8 weeks. When transfer is effected, a transfer duty is charged, between 5 and 8 per cent of the purchase sum, depending on the value of the property. The attorney receives about 1 per cent.
Financing of Property
Be very careful if you are considering financing a house purchase with a bank-loan. The local interest rate stands at approx. 13 per cent at the moment. European banks are very reluctant to finance properties in South Africa, so cash payment is usually the only option.
Buying a Farm
Many people dream of owning a farm in Africa. This dream can be fulfilled, but one - particularly a non-farmer - should not underestimate the problems that go with owning an agricultural estate. Without the proper know-how, such a possession can become very costly. In the Cape area, agricultural estates, specially the lucrative wine and fruit farms, have become very expensive. An affordable option is still an estate in the Natal Midlands, below the Drakensberg, where one can acquire a true paradise with forest, river, streams and lakes on hundreds of hectares for less than $US 300,000. Game farms, especially in Mpumalanga, are interesting investment prospects as well.
