Real Estate & Currency Exchange News in South Africa from Propertyshowrooms.com

Foreign investors 'returning to South African property market'

Tue, 8 Nov 2011 00:00:00 GMT

International investors are increasingly considering the merits of buying a property in South Africa, it has been claimed.

Berry Everitt, managing director of international property group Chas Everitt, explained that a favourable exchange rate between the South African rand and major currencies such as the euro, US dollar and sterling has helped drive interest.

"Since May, the value of the rand has shown a sharp decline that was bound to catch the attention of overseas investors, especially in light of the economic distress in Europe," he stated.

Mr Everitt added that around 30 per cent of the enquiries received by his firm now come from foreign investors, with many people from the UK, China, Germany and the US contacting the company.

In terms of the assets being targeted, holiday homes and buy-to-let properties are the most popular among overseas buyers in South Africa, he noted.

However, the recent FNB Estate Agent Survey for the third quarter of 2011 found that domestic investors are less enamoured by the prospects offered by buy-to-let housing in the country.

According to the organisation, just eight per cent of transactions were made in this sector during this period, with more people concentrating on purchasing a primary residence.

Overseas buyers urged to seek advice

Fri, 26 Oct 2007 00:00:00 GMT

Overseas property buyers thinking of moving to the USA, South Africa or Australia should seek expert advice before they jump in with both feet.

The currency specialist HiFX warns that the process of moving abroad and settling into a new home can be hectic enough without the unnecessary hassle of confusing paperwork.

It says tax and legal systems can differ greatly from country to country and buyers should make sure they understand what they are signing up to before deciding to purchase.

Research from the company shows that South Africa is the most stressful country to move to thanks to unfamiliar legalities and complicated tax systems, followed closely by the USA and Australia.

Mark Bodega, director of HiFX, said: "Many of us don't fully understand the tax and legal systems in this country, however the same lack of knowledge as a foreign national abroad could lead to problems."

He said buyers should make the most of the assistance available from specialist tax advisors and legal experts to ensure the buying process goes as smoothly as possible.

Separate research from HiFX shows that the "gloomy" economic climate in the UK is causing 37 per cent of Brits to consider moving abroad.

But the firm warns those planning to relocate to foreign shores to keep in mind the effect that currency fluctuations can have on future wealth.