Real Estate Investor Magazine South Africa November 2013 | Page 61

OFFSHORE
or similar in place. This will mean that the
development was inspected during building
and that you are covered by a warranty should
the developer / builder become insolvent
before the development is complete and a 10
year warranty against major defects after the
property is built.
Also look at the due diligence done on the
local area, if any. Are you buying in an area with
a high unemployment or crime rate? Are major
businesses moving into the area or closing up
shop? Look for a balanced, informed report
and not just a thinly disguised sales brochure
talking up the value of their own properties.

Could you explain how the buying
process works?
The biggest challenge you face as a South African
investor is the fact that the buying process in
other countries differs dramatically from the
process used in South Africa. Those who invest
in a foreign country for the first time often find
the process frustrating and confusing, mainly
because they try and apply the same principals
and structures they have learned from investing
in South Africa. It’s important that the agent
you are working with is fully aware of the buying
process and is able to describe it openly and
honestly with you. Even if you are already aware
of the ins and outs of the process, getting the
agent to explain it should reassure you of their
knowledge and experience.

And how you will help me
throughout?
You also need to be clear on just how far your
agent is prepared to support you. Different
agents offer different levels of service. Some
can’t do enough to help you and will assist
with every detail such as setting up your
bank account, setting up your tax structure,
securing lending and even help you f ind a
tenant. Others though are simply there to
market and sell a property and are likely to bid
you farewell once contracts has exchanged. As
long as you know from the start what level of
service to expect, there should be no problem.

Do you sell to many South Africans
and could I speak to a couple of
previous clients?
As with any business transaction, asking for
testimonials is always useful. Have an informal
chat to the client and establish if the agent
actually delivered the service as promised. Ask
www.reimag.co.za

the client to explain the whole process to you
in their own words and also if they would use
the agent again.

Do you own any offshore property
yourself?
Does the agent actually walk his or her
talk? It’s easy to have a detailed knowledge
of how things work and what makes a good
offshore investment. However, things change
dramatically when you practically apply such
theory and put your own money on the table.
It’s important that you work with someone
who has experienced this first-hand and who
can guide you through it confidently.

Just as you would when you buy property
in South Africa, you have a responsibility to
inform yourself and protect yourself when
buying property overseas. Be diligent in your
research, and utilise the questions above to
align yourself with a knowledgeable and
effective agent. With the right support you
will certainly be able to develop a profitable
offs