Estate Living Magazine Estate Living Issue 29 May | Page 57

Buying to let
Berry Everitt, MD of the Chas Everitt International Property group, says even without a
permanent residence permit, foreign investors are allowed to buy several apartments as
buy-to-let investments, either as tourist accommodation or as residences.
He says there is now an excellent selection of suitable apartments in desirable locations
that not only offer excellent value, but are also in high demand among both short-term and
long-term tenants.
“This type of investment doesn’t come with an automatic right of permanent residence in
Mauritius, but it does open up a relatively inexpensive avenue of offshore diversification for
South Africans, who have shown themselves to be very keen to own property on the island.
“In fact, our associates in Mauritius tell us that investor interest is so high in the wake of the
changes to the legislation that several new developments that had previously been on hold
for lack of buyers are now going ahead,” says Everitt.
On the other hand, the Invest Hotel Scheme (IHS) is available for buyers looking to invest
in a hybrid product between real-estate development and hotel property. Under the IHS,
hotels are allowed to sell villas, suites or rooms to individual buyers, enabling them to finance
refurbishment, reconstruction, alteration, conversion or upgrading their hotels.
The owner is allowed to occupy the unit bought for a maximum of 45 days in any period of
12 months, and has access to all the facilities of a new luxury resort hotel with amenities like
F&B, full-service spas, health and fitness centres, resort-style pools, sophisticated business
centres and maid service, as well as the promise of rental income.
Getting finance
Mauritian banks will make mortgage loans available to foreign investors, which is convenient
for South Africans who need financing because South African banks can not finance offshore
residential property. “The Mauritian banks,” Hudson explains, “offer finance of – typically – up
to 60% of purchase price over a bond term period of 15 years with interest rates of between
7% and 9%.” The credit assessment criteria are similar to those applied by South African
banks, ie the value of the property as security, and proof of income sufficient to service the
bond repayments.
“South Africans over the age of 18 have a foreign investment allowance of R10 million a
year, provided they have a tax clearance certificate from SARS, and the transfer of funds is
approved by the Reserve Bank,” says Everitt.
Forecasts show that property prices in Mauritius are expected to grow by 40% over the
next decade, and Mauritius offers secure ownership rights. And – hey – it’s a tropical beach
paradise, so you just can’t go wrong investing in this beautiful island destination.
Contact Estate Living for investment oppotunities and more information
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Estate Living and Mauritius Sotheby's International Reality
www.sothebysrealty.mu
www.estate-living.com | 57