Foreign exchange and purchasing property

​If you are a foreigner who has fallen in love with South Africa and wants to buy property, you will likely need to transfer Forex and convert it into Rand. As many foreign investors reside in countries with little or no exchange control regulations, South Africa’s regulations can quite seem daunting. Despite this, it is important to engage with and learn about them because failure to comply  when purchasing property means that an investor cannot send proceeds back out of the country if, and when, they sell.
 
To avoid these unnecessary issues, it’s important to deal with a knowledgeable Forex services provider to ensure that all requirements are met. Forex transfer service providers, such as ForexPeople, are key to maximising the value of the currency being invested in South Africa, and will ultimately save you money. Many non-residents find that while sending money into SA is relatively straightforward, getting it out again can be a very different story. This is where ForexPeople comes in!
 
We chatted to ForexPeople founder Rich Beddow to find out more. “Our friendly and experienced staff are committed to ensuring that customers receive the best possible service. The service is totally transparent with no direct monthly retainers or commissions. Just another reason why using a professional service is a non-negotiable.
 
ForexPeople’s smooth and efficient service offers:
 

• Preferable exchange rates and lower fees than banks
• Full compliance with local exchange control
• Archiving service of all documentation relating to the purchase
• ForexPeople also works with a specialist Attorney based in Cape Town who can assist in the negotiation and drafting of agreements for non resident investors, including:

• The sale and purchase of commercial and residential properties
• The sale and purchase of going concern enterprises such as farms or rental enterprises
• Leases
• Notarial deeds
• Structuring ownership
• Considerations of local borrowing as a hedge against volatile currency
• Expropriation concerns

 
Transferring Forex into SA is quick and easy, but must be done properly. Don’t let the love of your life pass you buy – in the property market that is. More than that, get it right the first time if you’re a foreigner buying in South Africa. In the excitement of buying that dream property, it’s easy to get things wrong but these mistakes can cost you later. Most offshore investors are cash buyers, and so the relatively high interest rates in SA which motivate many local property buyers to take out mortgages need not be a deterrent.
 
If you’re in the market to buy property in South Africa, call us on 021 801 3946 and let us help you through the process. Alternatively, visit our blog here for tips on how to take care of your property. Lastly, if you’re a foreigner, visit ForexPeople.co.za to find out more about how you can easily transfer Forex to buy your dream property in South Africa.