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This is one place on the African continent where there has become a sudden awareness. Properties here are extremely cheap with good rental returns. The buying procedure here is simple – it can either be an outright purchase or through mortgage.
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Like buying in the UK or US, an investor does not need to provide any documentation while buying outright, unlike when taking a mortgage. For purchases with mortgage facilities, the investor makes an equity contribution of 50% of the purchase price of the property and the bank pays 50%.
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Requirements for taking a mortgage
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1.
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6 months bank statement-showing proof of fund. |
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2.
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6 months pay slip. |
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3.
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Letter showing employment while, if self employed certificate of incorporation. |
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4.
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Marriage certificate, if married. |
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5.
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A completed mortgage form |
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Here is an analysis of total cost of a property:
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2 Bedroom flat at Buccleuch (outright purchase)
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| Purchase price: |
R450, 000. |
| Approximate competition costs |
R11, 250 |
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Total
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R485, 950 |
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| Here also is an analysis of a mortgage purchase: |
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2 Bedroom flat at Morningside Manor
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| Purchase price |
R850, 000 |
| Your down payment |
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| 50% Equity: |
R425, 000 |
| Approximate transfer costs/ charges |
R18, 000 |
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Total
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R443, 000 |
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