South African Property bought by Expats

South African Property bought by Expats

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Expatriate South Africans are behind a rise in the number of online applications for mortgages, according to home loan facilitator MortgageSA.

MD Saul Geffen says there has been a marked increase in South Africans living abroad applying for home financing through the company’s Web site and call centres.

“Internationally, people have become very comfortable with buying things online through greater Web site security and the greater convenience of keystrokes over traffic jams and crowded shops.”

“And with the many excellent property Web sites showcasing South African property, increasing numbers of expats are comfortable buying property this way, then come to us for financing.”

He adds that the company receives dozens of enquiries a day – mainly from South Africans in London who plan to return to SA. Most buy in Cape Town and Johannesburg, but increasing numbers are buying in Durban.

Geffen says expatriates can typically secure up to 80% or 100% financing on a property, even though they work overseas.

“The client will provide us with their gross income earned overseas and we will do the calculation. Banks would typically lend an amount based on what the expat could earn in SA, which is often lower than what they would earn abroad.”

He says banks want to be assured that if expatriates return, they will be able to service the bond payments from their local income.

“We work with all the major banks and are normally able to find a great deal for the expat,”

Geffen says.

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