Foreign Investor Home Loan
Foreign Investors buying in South Africa (Non-SA Residents)
SO YOU’RE AN INVESTOR AND YOU’RE LOOKING TO PURCHASE SOME REAL ESTATE IN SOUTH AFRICA.
You’ve come to the right place. It’s not all doom and gloom, in fact it’s great! South Africa is one of the world’s emerging Real Estate markets in the world so why not invest in our country.
Here at Wizard Midrand we provide mortgage financing for people looking to invest in South Africa. Here’s a guide that we’ve put together to help you out. Fortunately for foreign investors purchasing real estate in South Africa, there are very few restrictions. Well, to be totally honest, there are 2: No financing will be provided to illegal immigrants & only 50% mortgage loans or financing will be provided to foreign investors by South African banks.
Your requirements are pretty simple. You need a registered bank account at a South African bank for all the monthly mortgage repayments and if you’re buying a property to reside in you need to apply for permanent citizenship.
Mortgage Loans for Foreign Investors
As I said previously the South African reserve bank will only provide mortgage financing up to the maximum amount that’s to be invested in the property. In other words 50% mortgage loans. This is subject to foreign exchange approval by the South African Reserve Bank but approvals are all done by the South African Banks (WIZARD DOES MORTGAGE FINANCING WILL ALL MAJOR BANKS IN SOUTH AFRICA). In your agreement of sale your it must stipulate the mortgage loan amount required plus the contract should also stipulate that the purchase should only proceed on condition that financing is provided by the banks.
NOTE: A deposit is not necessary for the purchase of a property but it recommended. Wizard do advise that the deposit money is given to the conveyancing attorney and put into a trust account so that interest can be accumulated on the amount. DO NOT GIVE THE MONEY TO THE REAL ESTATE AGENT.
Real Estate transfer and registration in South Africa is handled by conveyancing attorney’s. Wizard Midrand are in partnership with various conveyancing attorney’s and do get 25% discounts on attorney fees. For more information please contact us on +27 12 341 2223. All real estate transfers and registrations are done through the South African deeds office.
Mortgage Loan Transfer and Registration Costs
Mortgage loan registration costs are payable only once the real estate sale goes through. The buyer is responsible for payment of the mortgage transfer costs and registration of a new mortgage loan. Mortgage transfer costs include transfer duty, however transfer duty is only paid for mortgage loans over R500 000.00 (US Dollar to Rand Conversion is 7.1). Other mortgage fees include, conveyancing fees, posts and petties and sundries. See our affordability calculatorsto work out costs. For a breakdown and explanation of mortgage loan costs please see our Bond Registration Costspage.
Why Invest in South African Real Estate?
Safari Travel and Tourism
With some of the world’s top tourism destinations you’d be silly to miss out on this opportunity.
Offering Safari’s, Coastal Holidays, Mountainous Regions and Rural Locations at it’s best, South Africa is a place the place to live. Perfect Weather
Trust me when I say that South Africa is the perfect place to buy real estate. Whether you choose the subtle weather of Gauteng, or the Humid weather of Kwazulu-Natal, you won’t find a better place.