Risks to consider in investment property rental. We welcome you to a new way of thinking about retirement, money and investing in property. It’s vital to ensure the property you’re buying is in a desirable place to keep its resale value rising. Failure to do so will result in the CIPC assuming that the company or close corporation is no longer doing business or is not intent on doing business in the near future. At the time when most people used this legal vehicle, it seemed like a wise decision as it saved transfer duties, it was easier to sell shares or membership and it was used to secure a legally sound investment. Get R1.5 million funding for your business in hours. Legislation protects non-paying tenants, so it’s difficult to vacate your premises if your occupants can no longer keep up with rental payments. In a CC, the owners of the company are referred to as members. This could have been avoided if you were legally compliant, Van Deventer explains. According to the firm, a company or close corporation may be referred for deregistration in the following circumstances: De Beer & Claassen emphasises that non-compliance with the submission of annual returns can accordingly lead to de-registration of a legal entity without consent of the members or directors of such a legal entity. Setting up a trust is also a fairly costly exercise. Zevenwacht Lifestyle Estate on the Stellenbosch Wine Route, has launched 10 independent living retirement apartments at the limited release price of R994 900 - with no transfer duties payable. Purchase an investment property “If you’ve thought of buying a property and renting it out, you’re on the right track. The estate agent requests a formal letter confirming details of your offer (which can also include prospective completion dates). Riaan van Deventer, Head of Real Estate at Engel & Völkers Southern Africa, urges all homeowners to whom this requirement would apply to take note: “Don't always presume your auditors will bring this to your attention or submit these annual returns. De Beer and Claassen earnestly advises homeowners to urgently check with the CIPC to ensure their company is still ‘alive’. By submitting your details via this online form, you agree to be contacted via email by the IGrow Group in relation to its property investment brands. How to buy property without a home loan It is important that there is more than one way to go about purchasing a property in South Africa, you even have options when it comes to the deposit. The documents required depend on your choice of lender and whether you’re buying the property as a private purchaser or as a company/close corporation or trust. However, it's not always easy to know what questions to ask. Property appreciation also warrants annual rental increases. It records all limitations on transferability and use of the property such as bonds and servitudes and is held by the Deeds Office. When buying a property in South Africa it pays to haggle over the price, even if you think it’s a bargain. Your personal data will be used to support your experience throughout this website, to manage access to your account, and for other purposes described in our privacy policy. Otherwise you may go to the effort of marketing the property, find a satisfied and qualified buyer, and at the stage when the transfer of the house should take place, only to then, establish that the property is not legally yours, as it has been de-registered and the transfer of property cannot take place. South Africa has one of the most sophisticated and accurate systems of property registration in the world. In South Africa, the Western Cape province continues to outperform all other areas, with Cape Town remaining the most lucrative city in … Buying property Seller pays for: The seller pays the agent’s commission, usually around 5%-6% of the selling price. Source: http://www.property24.com/articles/buying-property-in-a-company/20782. Once a trust is created, all assets are placed into the trust by either the trust founder donating the assets to the trust or the trust buying the assets. How to buy a car under your business’s name. Having a company car can be highly beneficial for your business. If you are looking to invest in property or starting your own buy-to-let portfolio and running it as a really profitable business, then you’ve come to the right place. “It gives an individual the opportunity to invest in a range of properties through the purchase of stock. 4. There are advantages and disadvantages to buying property in a trust and this is not a solution for everyone. Knowledge is power and asking your estate agent the right questions could save you a great deal of money and heartache in the long run.. How to get the ball rolling to start your own property business The first thing you need to consider when starting your own property business is the type of ownership to go with. What they lack is the basic information to guide them through the necessary steps to follow to accomplish this. Buying property through a company can be complicated! 18 questions to ask your estate agent that will save you a great deal of heartache and money in the long run. Van Deventer says that STBB attorneys explain these different arguments in detail on their website: The decision as to which entity to buy your property in is a complicated legal one, it is highly recommended that the purchaser consults an attorney prior to signing an agreement of sale in order to obtain expert advice. CT: +27 (0)21 979 2501PTA: +27 (0)12 943 0201Email: enquiries@igrow.co.za. Perhaps you made the decision to buy a property in the name of a company registered with the Companies and Intellectual Properties Commission (CIPC). If buying a property through your limited company is something you have been considering, it is important to look at your long term goals as an individual, and as a company. Please contact our Property24 Support Team for further assistance. Your ooba Home Loans finance expert will advise you on all the paperwork required for your particular circumstances. Receive property investment opportunities and investment news directly to your inbox. Substantial tax advantages can be gained by purchasing South African property through a company… Otherwise you may go to the effort of marketing the property, find a satisfied and qualified buyer, and at the stage when the transfer of the house should take place, only to then, establish that the property is not legally yours, as it has been de-registered and the transfer of property cannot take place. It will make things easier to manage. When deciding how to register your property, it is important to know what the differences are between buying in a company, trust or as a natural person, as well as the pros and cons of each option. Knowledge is power and asking your estate agent the right questions could save you a great deal of money and heartache in the long run.. 10 of the most frequently asked questions by foreigners buying property in South Africa. The downside of this method is that there is a higher rate of transfer duty and CGT payable than by individuals. A verification email is on its way to you. Visa requirements Things to consider when buying a property in South Africa. In certain instances, the purchaser is required to register as an entity in South Africa and, if the shares are owned by a non-resident, to appoint a public officer who is a South African resident. The IGrow team’s key objective is to help ordinary South Africans achieve financial freedom through property investing. Get in touch with a South Africa real estate agent who can help you find the home of your dreams in South Africa.. Not ready to buy yet? However, a very important, yet unfamiliar, requirement concerning properties registered in the name of a company has been highlighted by attorney firm De Beer & Claassen: “All companies and close corporations are required by law to submit their annual returns with the Companies and Intellectual Properties Commission (CIPC) within 30 days of the anniversary date of its incorporation. A Title Deed is assigned to every property. The chances are that it won’t impact most investors looking to buy a holiday home in South Africa, or a retreat to retire. If the CIPC believes that the company or close corporation has been inactive for 7 years or more. 5. Upon voluntary application by the company / close corporation itself. 7 sports cars you can buy in South Africa … De Beer and Claassen earnestly advises homeowners to urgently check with the CIPC to ensure their company is still 'alive'. The town of Queensburgh is experiencing huge demand from first-time buyers and young families particularly in Malvern and Escombe, with homes priced under R1m selling within days if not hours of listing. We strongly urge you to update to a. Jawitz Properties is one of South Africa’s oldest residential property companies. Do you want to know what it would be like to live it up in one of the most prestigious suburbs and estates in SA? Property buyers should preferably not buy a house or a flat in a company, except if they want to do property development. “While the cost of starting a trust can be significant, purchasing a property through a trust has certain advantages that many feel outweigh the cost,” says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa. Don’t put all your eggs in one basket Tel. Annual financial statements must also be submitted. The Act makes provision to apply for reinstatement of a company, however, this is a costly and time-consuming exercise and needs to be managed by an attorney. There are pros and cons to buying property in a trust so it is important to have a clear understanding of both before committing to this type of ownership.. 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