I LOVE NEWS
Call me weird but I just love picking up the paper and finding a property related article, specifically a property related article that's worth blogging about.
Today's lucky winner is the Pretoria News.
Property in South Africa still open to foreign buyers
There's been alot of talk about adding restrictions on the foreign ownership of property in South Africa. According to the Pretoria News the reason there's been such escalations in the price of property is because of the foreign investmentors that have been pouring into S.A. over the last 5 years.
Is that true, partially, they bring money in, they're willing to pay more so property prices jump up! However, lets think a little about this, NCA being released, new credit laws, interest rate hikes, they're all BIG BIG BIG contributors to the property price escalations. Personally i think it's someone who's blaming foreigners for the average price of a house on the Pam Golding website sitting around the R1 500 000.00 mark :) *duck*
There have been some serious considerations though in terms of putting restrictions up:
- Long Term leasing of property versus outright sale of land
- A possible moratorium on sale of land to foreigners
- Th identification of instances where a prohibition on foreign ownership of land could be justified, such as national key points, water catchment areas, land along border lines and internal borders
- Special ministerial approval in cases where certain categories of land were considered for disposal, such as land earmarked for land reform, restitution or integrated human settlement
There are those that are of the belief that foreign investors are the people that have made this country the financial success story that it is today. BRING EM ON! WE WANT THEIR MONEY DAMMIT. STOP BEING SO ANAL. Let them spend their money in OUR country. In terms of loans and financing, foreign investors are already limited to a 50% loan.
What we should do is only provide loans to foreign investors if the property is over a certain value i.e. R5 000 000.00 and then still only give a 50% mortgage loan. This way half the money needs to be brought into South Africa and the other half can be financed by our banks. Either way don't shut them out, they're the people that bring the spark to SA...