Investors Guide

An Investors Guide to South Africa
By: Karl Hopkins


Article Summary: Useful guide to South Africa providing essential property investment information, demographics and it's

history.

Commanding strategically important sea routes between the Atlantic and Indian Oceans, the Republic of South Africa is at the

southernmost tip of the African continent.

With a coastline of some 2,954 kilometres, it is bounded to the north by borders within Namibia, Botswana, Zimbabwe, and

Mozambique. To the north east is Swaziland, a small, landlocked kingdom surrounded by South Africa except for a short border

with Mozambique.

Also contained within South Africa's borders is the independent country Lesotho, formerly Basutoland.

With a land area of over 1.2m square kilometres, South Africa is larger than the combined area of Holland, Belgium, France,

Italy and Germany yet has a population of just 42.6m. It is comprised of nine provinces. Durban, the major sea port, is in

Kwa-Zulu Natal on the north east coast, Cape Town is in Western cape to the south west, and Port Elizabeth in Eastern Cape.

South Africa's two major international airports are in Cape Town and Johannesburg. The legislative capital is Cape Town, the

administrative capital is Pretoria, the judicial capital is Bloemfontein and the biggest city is Johannesburg.

The 'rainbow nation', it has a rich mixture of races and cultures with no less than 11 officially recognised languages,

including English, Afrikaans, and native African tongues.

Foreign and Commonwealth Office describes the geography as comprising a coastal strip of below 1,500 feet fringed by steep

mountain ranges, with a high plateau in the interior ranging up to 6,000 feet above sea level.

The coastline is swept by two major ocean currents - the warm south flowing Mozambique-Agulhas and the cold Benguela which

flows northwards along the west coast as far as southern Angola.

On the west coast, the cold Atlantic current creates arid scrubland terrain. Higher levels of rainfall on the central plateau

produce grassland. A continuous mountain range runs down the east coast warmed by the Indian Ocean giving a sub-tropical

climate. The north of the country has savannah-type vegetation, whilst the southern tip has a Mediterranean-type climate.

Once shunned because of its apartheid policy, the country is now an active player in international relations: hosting major

international sporting events, playing a full part in the UN and the Commonwealth, and having a significant stake in

international business.

But although a manufacturing country, with important mining (including gold and diamond, and also coal and minerals) and

finance services industries, South Africa also 'has an economy consisting of the very poor who eke out a living through

near-subsistence agriculture or the informal sector', says the Foreign Office.

Unemployment levels are officially almost 27 per cent but may in practice be as high as 40 per cent.

The Foreign Office warns that there are high levels of crime in the country, but that most occurs in townships and isolated

areas away from the normal tourist destinations. 'The standard of driving is variable and there are many fatal accidents'.

However, more than 460,000 Britons visit South Africa every year and most visits are trouble- free.

As in most places there remains 'an underlying threat from terrorism'. And although unlikely, attacks 'could be

indiscriminate, including in places frequented by expatriates and foreign travellers'.

British nationals visiting South Africa on holiday for less than 90 days do not require visas. After entry, extensions of

stay may be sought from the Department of Home Affairs. Visitors who overstay without authority may be fined, either on exit

or at the nearest South African mission on your return to the UK (or elsewhere).

Re-entry to South Africa will not be permitted until the fine has been paid in full.

Those who substantially over stay their visas may be arrested on departure and detained before appearing in court. In such

cases you may face a very substantial fine and then be deported at your own expense.

In all South Africa has 13 types of temporary and 11 types of permanent residence permits, including relative's permits,

business permits, and retired person's permits. Business permits are available for up to two years for people looking to

invest or set up their own business. Work permits can be obtained for up to three years while a permanent contract of

employment will support an application for permanent residence.


The Foreign Office warns that following a House of Lords decision, state pensions to UK residents in South Africa are not

increased annually in line with inflation but are frozen, either from the date the person first became entitled to a state

pension, or from the date that they left the UK, depending on which is the later.

There are no restrictions to foreigners purchasing in South Africa, although there has been talk of imposing such

restrictions at least on a temporary basis in the future as a way of curbing runaway house price inflation. Mortgages,

however, are generally restricted to 50 per cent of purchase price.

Purchasers can buy property as individuals or via companies. Written offers and deeds of sale are legally binding. Completion

follows when the title is formally transferred and registered with the land registry.

Article Source: http://www.upublish.info

About the Author:
Karl Hopkins
This and many other featured articles focusing on popular investment destinations from around the world can be found at

http://www.fly-2let.co.uk

Keywords: overseas property, buy to let, investment property, south africa, real estate