Real Estate Investor Magazine South Africa Real Estate Investor Magazine - August 2017 | Page 8

Q & A PROPERTY ADVICE Q I NORMAN RAAD, CEO OF BROLL AUCTIONS & SALES f you look back not so far in our history, i.e. to 1998, 2001 and 2009, at times when we also experienced economic slumps, those with the smart money were buying, looking for opportunities and making savvy property acquisitions - and today is no different. If you can buy and raise money for sound investments, later you will be able to look back and enjoy the profits of the challenges faced in today’s market. My advice is to focus on position and quality of the property when you are deciding to invest and you will be greatly rewarded. Every property has a value and the well positioned properties will only improve and become more in demand.  Admittedly, sometimes you may only be able to afford properties which are on the periphery of a high-demand area, but don’t stay out of the market. Rather divest of properties which are vacant and a cash burden and buy better properties now that will show resilience even through the next economic slump. Bear in mind that nothing lasts forever, including the bad times. Q T MICHAEL BAUER, MANAGING DIRECTOR OF SAPROPERTY.COM What advice can you give to commercial property investors in the current market? We have inquiries from foreigners wanting to rent, is this more complicated than renting to a local person and what is needed? here are increasing numbers of tenants who SAProperty.com deal with (particularly in the Cape and Gauteng areas) who are foreigners, and while it is fairly straightforward to formalise a lease with a foreign tenant, it has to be remembered that the person renting property must have a legal temporary residence permit or a permanent residence permit that has been approved by the Department of Home Affairs.  Foreigners living and working in South Africa are not regarded as non-residents by the SA Reserve Bank, but become residents for the time that their work permit is valid.  If they do not have a valid permit, however, and a landlord decides to rent to them anyway, it is aiding and abetting an illegal foreigner and is classified as a criminal offence, in terms of the Immigration Act.  The Immigration Act provides for various temporary residence permits to be issued to foreigners, such as a visitor’s permit; a work and entrepreneurial permit; or a retired person permit. If the person applying to rent a property has any of the these, they can legally rent (or buy) property in South Africa.  Landlords should ask for proof of the prospective tenant’s residency documentation before signing a lease. BUSINESS I FAMILY I PROPERTY We look after your interests Unit 12, Harfield Village Centre, 48 2nd Ave, Claremont, 7708 Mobile: [phone] Email: [email protected] www.duplessiscurran.co.za