Your guide to investing in Namibian real estate as a foreigner
Category RealADVICE
Namibia is highly rated as an economy with great potential. With a booming property market and successful tourism sector, the country attracts those who value beautiful surroundings and long-term investments. With the average housing prices stable throughout the years, being part of the Namibian property market is a wise financial move. Here's our guide to expand your property portfolio in Namibia as a foreigner.
Making waves along the South Atlantic
A relatively small country, Namibia borders South Africa, Botswana, Zambia and Angola. However, Namibia has emerged as a standout country on this list, rich in diamonds, uranium and mineral resources. The capital city of Windhoek is often considered the most popular place for foreigners to visit and it's also where the majority of the nation's population enjoy working and living. If you are looking for a property to buy as a home for when you possibly relocate or retire, it would be good to know that Windhoek is the most affordable city in which to live.
Finding the right property
Once you have explored the country or a particular city in Namibia you favour, it's important to begin looking for the property you want with a reputable estate agency. Dealing with property experts who specialise in the Namibian market will be an advantage and help you get closer to ticking all the boxes off your checklist.
The process for purchasing property in Namibia is fairly straightforward for non-residents. As long as the property in question doesn't fall under the category of agricultural land most property ownerships are freehold. Negotiations are always conducted within the listed asking price in Namibian dollar and South Africa's rand is also accepted as a form of currency in keeping with the exchange rate.
The first thing you need to do as a potential buyer is to get a good conveyancer. You will be represented by them and they will interact with the real estate agent behind the listing. Your conveyancer will then execute a Deed of Transfer for the purchase and the exciting journey commences!
Dotting the i's and crossing the t's
Once you sign the Deed of Sale, buyers are expected to pay a 10% deposit to secure the deal. This is held in escrow by the estate agent and the balance can be paid once the transfer is registered or finalised. An added expense you need to consider is transfer costs. These will be paid directly to the conveyancer along with any outstanding legal fees and transfer duties. It is typically levied at a flat rate of 12% of the value of the property. If the buyer wishes to sell the property in the future, the title deed will read "non-resident" to ensure that the proceeds can be freely transferred out of the country. Identity documents are required by the seller and buyer, along with the original property title deed from the seller.
The final steps
If there happens to be any structural damage or defects to the property, the seller is obligated to declare it beforehand. Common law states that the seller will be liable for these faults even at the completion of the sale, with or without prior knowledge. It's important to iron these details out especially in terms of a foreign sale as it can prolong and complicate the process even further. When conducting an overseas property agreement, registration is usually completed in approximately 52 days.
Investing in property in Namibia is a decision that comes with the freedom to relocate, rent the place out or retire along the coast and sand dunes. Contact RealNet today to purchase your dream Namibian property.
Author: RealNet Properties
