Homes Worldwide

Whether you’re looking to rent or buy, South Africa has a wide range of attractive properties at truly affordable prices.

The property market has been growing substantially in recent years, but Amalgamated Banks of South Africa (ABSA) have said that there is no “bubble” at the moment. It is important to shop around because some people have become  wise to the fact that foreigners have money, so they charge above market value.The Western Cape is slightly more expensive than most areas, but it is where most of the buying is going on.There are beautiful homes available, and the abundance of land means even the most modest property is impressive by British standards.

Renting
Renting is fairly straightforward and generally done through an agency. Expect to pay a deposit of two to three months’ rent, plus one month’s rent in advance.

Buying
Mortgages can be obtained in South Africa through a mortgage advisor. Interest rates are high (about 7 or 7.5 per cent), so it is best to borrow in England. It is also wise to use a currency specialist because the rand is volatile. As prices in South Africa remain fairly stable, this is likely to have a great effect on buying power. There has been talk of restricting foreign property buyers to maintain affordability for local residents, but this is unlikely to happen.The government is keen to increase foreign investment, and there is no proof that foreign property purchases are having an adverse effect.

Security
Property crime is prevalent. Most windows have burglar bars, and houses in wealthy areas have additional security such as alarms or electric fences, or are situated in gated communities.

Property tax
Property tax applies to anyone who owns a fixed property, and is based on the value of that property. South Africa has strict policies on the amount of capital that can be taken out of the country.

Taxes in South Africa
Whether you’re looking to rent or buy, South Africa has a wide range of attractive properties at truly affordable prices There are three main taxes that need to be taken into account for those planning to live and work in South Africa.

Income Tax
The income tax system is based on residency for a period of 185 days over three years, and you will be taxed on all income, whether it is internally earned or from abroad. The scale runs from 17% to 45%: R0 to R15,000: 17% of each R1 R100,000 +: R34,500 plus 45% of the amount over R100,000

Capital Gains Tax
Capital gains tax affects all investments, including shares, property and luxury items. The rate of tax depends on status, i.e. whether it is an individual, company or trust fund being taxed. Non-residents are exempt from paying capital gains tax, except in the case of property, which in all cases is taxed.

Donations Tax
Donations tax applies to donations or gifts in excess of R30,000 (about £2,600) per year at a rate of 20 per cent, unless the recipient is a registered public benefit organisation or a
non-government organisation run on a not-for-profit basis.