Property in South Africa is normally transacted through an Estate Agent who must be a registered member of the Estate Agents Board. Such membership provides protection to both buyer and seller as certain rights are guaranteed by a Fidelity Fund Certificate.

Transfer of Funds
Having concluded a successful offer to purchase, as a foreigner, you will need to provide the necessary payment from your source country. South African law dictates that all foreign exchange must be approved by the SA Reserve Bank.

As a "foreigner" or "non-resident", you may borrow a portion of the purchase price of the property in South Africa, the deposit having been brought into the country from source. The total amount borrowed against the purchase is at the discretion of a commercial bank, and is subject to normal credit approval criteria.

The approved "Bond account" would be serviced either from rentals received, or funded from source. In this regard, Angela’s Real estate is ideally situated to offer a full service management of the property, which includes rental and maintenance management.

Security of your investment
South African banking and financial institutions systems are at least as safe as any other banks in the western world, well established and dependable. Any transfer of funds through the correct institutions are secure, safe and guaranteed.

Repatriation of Funds
South African foreign exchange regulations are under review with the objective of deregulation to make it simpler for both the inflow and outflow of funds. The law states that funds invested by a non-resident may be repatriated at any time, including any capital gain, and this situation is highly unlikely to change as the South African authorities seek to encourage foreign investment.

"Transfer Duty" is a government tax and is applicable in every case excepting where the seller is registered for VAT, and the property is classifed as "stock in trade".  Transfer Duty is calculated on the following scale for "natural persons"

0% on the first R500 000 of the purchase price.

5% on R500 001 to R1 000 000.

and R25 000 plus 8% for properties over R1 million.

In the 2006/7 budget it was announced that a 2% reduction (from 10% down to 8%) in the flat transfer duty rate charged to companies and trusts.  This is necessary for investors who place their propeties in trust and company-related structures.