Sellers to benefit

It is now only a matter of weeks before South Africa is launched onto the world’s stage and becomes the flavour of the month to a global, televised audience of hundreds of millions of ardent football fans as the country hosts the greatest sporting spectical ever held on the continent.

Owen Dormehl, CEO of Dormehl Property Group South Africa says “The property market is about to receive a very meaningful bonus with the unprecendented, concentrated arrival of hundreds of thousands of foreign visitors to the country who have travelled to support their chosen teams and will experience firsthand the truly idealist way of life that we are privileged to enjoy. There will be prospective investors of South African real estate amongst the vast numbers of visitors, as well to some extent, in the huge number of television viewers around the world. To benefit from this enormous, all be it brief, international exposure sellers and agents will need to do some homework to ensure they are prepared for the international property buyer.

Typically these buyers are very astute and possess excellent IT skills. They will require pertinent and specific property information such as rates and taxes or levies, cost of insurance, transfer and registration costs and usually they will want to know the expected monthly rental return of the property that they are interested in, therefore it will be beneficial for sellers to obtain a written estimate of the market related rental from a reputable letting agency in their area. Generally speaking the most important points that these purchasers primarily look for are security, condition of the property, ease of maintaining the property from a distance, rental return and often the garden or grounds play an important role as these purchasers usually come from densely populated cities where space is at a premium”.

Robert Finlay, senior coveyancing partner with long standing Durban based law firm Meumann White says “Sellers need to remember that international foreign buyers will require cash for at least 50% of the purchase price of the property as they will only be entitled of a mortgage bond to a maximum of 50%. Foreign resident buyers will also need to provide conclusive proof of their overseas addresses, ideally by way of a utility bill pertaining to their home residences ensuring the transaction complies with all of the FICA regulations”.

Dormehl continues “These buyers benefit from the availability in South Africa of a good selection of well constructed homes which provide excellent value for money when compared to European prices along with our outstanding security of title via a central deeds registry office as well as the services of our first world bond originators who are able to assist them in obtaining South African mortgages. Agents also need to be prepared by ensuring that all of their web-based advertising displays prices in South African Rands, Sterling, Euros and US Dollars and they should gear themselves up for show-homes if their selling area is within 30 kilometers of one of the stadiums, especially over the periods of matches in their locality”.

Text supplied by Charles Alterskye: www.dpgprop.co.za