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South Africa: Buying an Old Home

Overview

In South Africa, the term ‘old home’ usually refers to a building that’s pre-war and possibly hundreds of years old, which either is in need of restoration and modernisation or has already been restored. If you want a property with abundant charm and character, a building for renovation or conversion, outbuildings or a large plot, you must usually buy an old property. Note, however, that if an old building is listed (preserved or protected by local or national statute) there may be limitations on its use and any changes you may wish to make to it.

South Africa has a fair amount of beautiful historic buildings, particularly from the 17th to 19th centuries, covering the whole spectrum from tiny village houses to rambling mansions. In some rural areas, it’s still possible to buy old properties for as little as R150,000 (£13,000), although you will need to carry out major renovation work, which will double or treble the price. Because the purchase price is often low, some foreign buyers believe they’re getting a wonderful bargain, without fully investigating the renovation costs.

Renovation or modernisation costs will invariably be higher than you imagined or planned. Taking on too large a task in terms of restoration is a common mistake among foreign buyers in all price brackets. If you’re planning to buy a property that needs restoration or renovation and you won’t be doing the work yourself, obtain an accurate estimate of the costs before signing a contract.

If the property is off the beaten track, you may need to include the cost of building or at least resurfacing a road so that heavy vehicles can reach the site. The cost of building the most basic road is at least R200 (£17) per metre.

In any case, it isn’t usually cheaper to buy and restore an old building than to buy a new one, and it can be much more expensive. If you buy and restore a property with the intention of selling it for a profit, you must take into account not only the initial price and the restoration costs, but also the fees and taxes included in the purchase, plus possibly capital gains tax. It’s often difficult to sell an old renovated property at a higher than average market price, irrespective of its added value.

Don’t buy a derelict property unless you have the courage, determination and money to overcome the many problems you will certainly face. Unless you’re prepared to wait until you can occupy it or are willing to live in a caravan for a long time while you work on it, it’s better to spend a bit more and buy something habitable but untidy than to buy a property that needs gutting before you can live in it.

On the other hand, old properties may provide better value than new homes, although you must check their quality and condition carefully. As with most things in life, you generally get what you pay for, so you shouldn’t expect a fully restored property for peanuts.

© Survival Books Limited 2005

“Buying a Home in South Africa” 1st Edition, Graeme Chesters.

Reproduced with the permission of Survival Books Limited.

Further information on this topic can be found in “Buying a Home in South Africa” 1st edition, by Graeme Chesters.

For extensive information about buying a property in South Africa, you can purchase this book at www.survivalbooks.net

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