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The Cape Town property industry has been incredibly profitable and booming over the past few years. An offer to purchase in South Africa, is a legally binding, enforceable contract, but a 'cooling off period' will allow you can withdraw, with certain conditions attached.
Other costs involved in buying property in Cape Town and South Africa include transfer fees and transfer duty (according to set rates related to the purchase price), and mortgage bond registration fees (if relevant). Mortgage finance for overseas clients are based on a 50/50 structure - for every Rand in foreign currency brought into South Africa, an equal amount of borrowing will be allowed.
Foreigners living and working in Cape Town or South Africa can qualify for 50-90% mortgage loans. Completion of Form E is essential if you wish to register foreign currency brought into South Africa, so that you can take it out again at a later stage.
The seller pays the estate agent's commission - usually around 5% + vat. There has been some talk of limiting overseas ownership of title deeds to land, because of the effect that locals can no longer afford homes, and you should check the current status with a real estate agent.
For more detailed information on Cape Town property and real estate, we also highly recommend our new practical guide on Cape Town, which can be ordered here.
For Cape Town property / real estate inquiries, please click here.
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