| There’s a new mood of optimism sweeping through the
global property market in the wake of the US election outcome, and it’s
generating renewed interest in SA real estate.
So says Berry Everitt, MD of the Chas Everitt International property
group, who notes that European buyers in particular are keen to invest
in SA property once more, thanks to the weakness of the rand against their
currencies and the relatively low prices.
“In addition, the SA market is in good shape and likely to recover
faster from the global economic meltdown than the major European markets
and the devastated US market, which means there are better prospects here
for capital growth.
“So it is really no surprise that over the past two months the number
of enquiries we have received from foreign buyers has increased substantially.”
This does not mean, though, that SA sellers will suddenly all find foreign
buyers knocking on their door. “For one thing, the German, Dutch,
Scandinavian and UK buyers who are interested in SA tend to target the
more expensive, lifestyle properties and for another, they generally only
get to know about those properties that are specifically marketed by real
estate companies with international marketing reach.”
There are also other factors, Everitt says, that sellers need to take
into account if they wish to target overseas buyers. “They should,
for example, be careful to pick an agent that will inspire confidence
in these potential buyers.
“People who don’t know our country or our customs and have
never before done any business here will want to be sure they are dealing
with a professional who will protect their interests. There may also be
language difficulties that need to be overcome.”
Agents who deal with foreign buyers also need to be well prepared to
discuss market dynamics and provide detailed information about price evolution
in the past 12 to 24 months, trends, forecasts for the next two to three
years and rental markets in specific areas, he says, as well as the legal
requirements and tax implications of making a property purchase in SA.
“In short, foreign buyers need to feel totally comfortable that
they are making a good investment decision and it is up to the agent facilitating
the transaction to give them that reassurance.”
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Newsletter:
3 February 2012 to 10 February 2012 - Krugersdorp, Gauteng, South Africa
