Real Estate Investor Magazine South Africa December - January 2014 | Page 8

ASK THE EXPERTS
Converting A House

Q

Carol Reynolds
Pam Golding Properties
www.pamgolding.co.za

Julian Penter Asks:

Buying Offshore

Q

Andrew Rissik
Sable FX
www.sable-group.com

Tamlyn Kaschula Asks:

I want to convert a house into an office, what do
I need to do? Are there any laws that I need to
follow when doing this?

I want to buy property in Zimbabwe but I want
to take the loan out in SA as Zimbabwe lending
rates are high, how would the transfer of funds
work and how can I save on fees?

A

A

Carol Reynolds Answers:

There are municipal laws regarding off ice
conversions which need to be strictly adhered
to. Essentially, the first step in the process is
to ascertain what type of zoning applies to the
property. If the property is zoned residential,
then only a portion of the property can be used
as an office – usually 40m2 or the size of a large
single garage.
If the property has residential/office conversion
rights, then the municipality will allow the
change from residential to office, on the proviso
that the details of the zoning regulations are
complied with, for example, some off ice/
conversion properties allow a ma ximum
footprint of thirty percent, which means that
on a property/erf of 1000m2, the buildings will
need to be 300m2 and anything beyond this
amount will not be permitted for commercial
usage. In addition, there are other crucial
regulations regarding offices which do not
apply to normal residential properties.

Adrian Rissik Answers:

Sable can provide an easy and cost-effective method
to remit funds from South Africa to Zimbabwe. By
making use of an individual’s investment allowance
Sable can remit the funds to settle in Zimbabwe
in US dollars. This service is provided free of
charge; Sable will also take care of all tax clearance
certificates deemed necessary for the transaction.
Any South African citizen is able to send up to R5
million per calendar year as specified by the South
African Reserve Bank.
The real question to ask is whether the currency
risk on the investment will be worthwhile. Given
that the interest rates in SA are more favourable
than Zimbabwe, if one were to raise the funds
in Rands and convert to USD (given the current
trend of a weakening ZAR/USD relationship)
one would then have a dollar-backed asset
against a falling liability. This, however, is highly
unpredictable and influenced by a range of factors
from around the world. Recent trends would
highlight that the combination of Zimbabwe
interest and appreciation of USD would bring
enhanced returns over SA interest alone.

Developing

Q

JP Farinha
Property24
www.property24.co.za

Richard Church Asks:

What could you do with a 118 hectare property,
strategically situated in the Joburg municipality?
It is in the Rietfontein area. I own the property
and am not sure what to do/develop with regards
to this property.

A

JP Farinha Answers:

This is indeed quite a complex decision and one
which is very difficult to offer a clear answer to.
The best advice I could offer is to do detailed
research and carefully analyse the area to
determine your options. Factors to consider
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