How to invest in property in Johannesburg?

Authored by the expert who managed and guided the team behind the South Africa Property Pack

Yes, the analysis of Johannesburg's property market is included in our pack

Who is the author of this content?

THE AFRICANVESTOR

A team specialized in real estate investing in African countries

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Johannesburg. If you'd like to learn more about us, you can check our presentation page.

How this content was created 🔎📝

At The AfricanVestor, we explore the South African real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Johannesburg, Cape Town, and Pretoria. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

How easy is it compared to buying property in Western countries?

Buying property in Johannesburg is generally easier and more affordable than purchasing real estate in most Western countries.

Property prices in Johannesburg are significantly lower than major Western cities, offering favorable exchange rates for holders of USD, GBP, and EUR currencies. As of September 2025, foreign buyers face no stamp duty or VAT on property purchases, making the transaction costs substantially lower than countries like the UK or Australia.

The South African property market remains fully open to foreign buyers without any residency requirements, unlike countries such as New Zealand or certain Australian states that have implemented foreign buyer taxes or restrictions. The legal process involves less red tape compared to Western markets, with a typical transaction period of 8-12 weeks versus potentially longer timeframes in countries with more complex regulatory environments.

The main advantage lies in the straightforward nature of the process - there are fewer bureaucratic hurdles, lower overall transaction costs, and no need to establish local residency before purchasing. However, foreign buyers must still navigate FICA compliance requirements and banking procedures that require careful attention to documentation.

It's something we develop in our South Africa property pack.

What is the full step-by-step process to purchase a property in Johannesburg?

The property purchase process in Johannesburg follows 11 clearly defined steps that typically take 8-12 weeks to complete.

1. **Property Search**: Find suitable properties through licensed estate agents or online property portals like Property24 or Private Property2. **Offer to Purchase**: Submit a legally binding offer specifying price, conditions, and deposit requirements3. **Due Diligence**: Conduct property inspections and verify title deeds and any existing liens or encumbrances4. **FICA Compliance**: Provide all required identity, address verification, and source-of-funds documentation5. **Banking Setup**: Establish a South African bank account for fund transfers (mandatory for foreign buyers)6. **Finance Approval**: Apply for mortgage financing if required (maximum 50% loan-to-value for non-residents)7. **Fund Transfer**: Transfer purchase funds through an authorized dealer or bank with proper documentation8. **Conveyancer Appointment**: The seller appoints a qualified conveyancer to manage the legal transfer process9. **Document Signing**: Sign all transfer documents, which can be done remotely with proper notarization and authentication10. **Fee Payment**: Pay transfer duty, legal fees, deeds office registration costs, and other applicable charges11. **Registration**: Complete property transfer at the Deeds Office and receive the new title deed

Each step builds upon the previous one, and delays in any stage can extend the overall timeline. The conveyancing attorney coordinates most of these steps once appointed, making the process relatively streamlined for buyers.

As of September 2025, digital documentation and remote signing capabilities have made this process more efficient for international buyers, though local legal representation remains highly recommended.

Which parts of the process are mandatory and which are optional?

Several steps in the Johannesburg property purchase process are legally mandatory, while others are recommended but optional.

Mandatory Requirements:

- Submitting a legally binding offer to purchase- FICA compliance documentation and verification- South African bank account setup for international fund transfers- Appointment of a qualified conveyancing attorney- Signing of transfer documents with proper authentication- Payment of transfer duty, legal fees, and registration costs- Registration of the property transfer at the Deeds Office

Optional but Recommended Steps:

- Professional property survey and building inspection- Using a licensed estate agent (buyers can deal directly with sellers)- Obtaining mortgage financing (cash purchases are fully acceptable)- Title insurance or additional legal reviews- Independent property valuations

While property inspections are technically optional, skipping this step represents a significant risk, especially given South Africa's "voetstoots" (as-is) clause that's common in property sales. This clause means buyers accept properties in their current condition, making pre-purchase inspections crucial for identifying potential issues.

Foreign buyers often choose to work with estate agents for market knowledge and local expertise, but direct purchases from sellers are legally permissible and can save on commission fees.

What documents do I need to provide as a foreign buyer?

Foreign buyers must provide specific documentation to comply with South African banking and property regulations.

Essential Documents Required:

- Certified copy of valid passport (certified by notary public or authorized official)- Proof of residential address in home country (utility bills, bank statements, or municipal rates notices)- Evidence of source of funds (bank statements, employment contracts, investment portfolios, or business financials)- FICA-compliant identity verification documents- South African bank account details for fund transfers

Additional Documentation for Mortgage Applications:

- Income statements and tax returns for the past two years- Credit reports from home country- Employment verification letters- Asset and liability statements- Investment portfolio statements if applicable

All foreign documents must be properly authenticated and may require apostille certification depending on the buyer's country of origin. Documents not in English must be translated by sworn translators.

The FICA (Financial Intelligence Centre Act) compliance process is particularly stringent, requiring detailed verification of identity and proof that funds originate from legitimate sources. Banks typically require source-of-funds documentation going back several months to ensure compliance with anti-money laundering regulations.

As of September 2025, digital document submission is widely accepted, but original certified copies may still be required for final registration processes.

Can I buy property without being physically in South Africa?

Yes, foreign buyers can complete property purchases in Johannesburg entirely remotely without traveling to South Africa.

Remote property purchases are legally permissible and increasingly common, especially following digital transformation in the post-2020 period. Buyers can sign all necessary documents abroad through South African consulates, notary publics, or authorized legal representatives, provided proper authentication procedures are followed.

The key requirements for remote purchases include proper notarization of signatures, apostille certification of documents where applicable, and power of attorney arrangements if using local representatives. Video conferencing technology now allows buyers to participate in virtual property viewings and conduct due diligence remotely.

However, remote purchasing carries additional risks that buyers should carefully consider. Without physical property inspections, buyers rely entirely on professional surveys, photographs, and video tours to assess property condition. Local market knowledge becomes crucial, making qualified local representation even more important for remote buyers.

Banking procedures can also be more complex for remote buyers, as South African banks typically require in-person verification for new account openings, though some institutions now offer remote onboarding services for qualified international clients.

It's something we develop in our South Africa property pack.

Are real estate agents generally reliable in Johannesburg?

Real estate agents in Johannesburg operate under regulatory oversight, but reliability varies significantly between individual agents and agencies.

The Estate Agency Affairs Board (EAAB) regulates real estate professionals in South Africa, requiring agents to hold valid Fidelity Fund Certificates (FFC) and adhere to professional standards. Licensed agents must display their FFC numbers prominently, and buyers can verify agent credentials through the EAAB database.

Reputable agencies typically offer more reliable service, with established firms like Pam Golding Properties, Seeff, and RE/MAX maintaining consistent professional standards. These larger agencies often provide additional buyer protections, comprehensive market knowledge, and established relationships with conveyancers and other property professionals.

However, the industry includes independent agents with varying levels of experience and professionalism. Common reliability issues include inadequate property disclosure, pressure selling tactics, and insufficient market knowledge in specific neighborhoods or property types.

Foreign buyers should verify agent credentials, seek references from previous international clients, and ensure agents understand FICA compliance requirements for foreign transactions. Agents experienced in foreign buyer transactions typically provide more reliable service for international purchases, as they understand the additional documentation and procedural requirements.

Commission structures are generally transparent, with sellers typically paying 2-7% including VAT, though buyers should confirm fee arrangements upfront to avoid surprises.

Will the legal system protect me properly as a foreign investor?

South Africa's legal system provides robust property rights protections for foreign investors, with established mechanisms to ensure transaction security.

The South African property law system, based on Roman-Dutch law principles, offers strong legal protections for all property owners regardless of nationality. Foreign buyers enjoy the same property rights as South African citizens, including full ownership, rental rights, and resale capabilities without restrictions.

The Deeds Office system provides comprehensive property registration and title protection, with all transactions recorded in public registers. Conveyancing attorneys are qualified legal professionals who ensure transaction legality and buyer protection throughout the purchase process. The Attorneys Fidelity Fund provides additional protection against professional misconduct or fund misappropriation.

South African courts have jurisdiction over property disputes and maintain established precedents protecting foreign property rights. The legal system recognizes and enforces international arbitration agreements and provides mechanisms for cross-border legal enforcement.

However, foreign investors should understand that legal processes can be time-consuming, and local legal representation is essential for navigating complex disputes. Property-related crime, particularly in certain Johannesburg areas, represents a practical concern that legal protections cannot fully address, making location selection and security considerations crucial.

Contract law protections are comprehensive, but buyers must understand local terms like "voetstoots" clauses and ensure proper legal review of all purchase agreements before signing.

What are the common mistakes and pitfalls foreigners usually make?

Foreign property buyers in Johannesburg frequently encounter specific pitfalls that can be avoided with proper preparation and local knowledge.

Documentation and Compliance Errors:

- Inadequate FICA documentation leading to transaction delays- Failure to establish South African banking relationships early in the process- Insufficient source-of-funds verification causing regulatory complications- Poor understanding of apostille and document authentication requirements

Due Diligence Shortcomings:

- Skipping professional property inspections, especially given "voetstoots" sale conditions- Inadequate title deed verification and lien searches- Failure to investigate municipal service charges, rates, and special assessments- Insufficient neighborhood research regarding security, amenities, and future development

Financial Planning Mistakes:

- Underestimating total transaction costs beyond the purchase price- Poor currency exchange rate planning and timing- Inadequate understanding of ongoing property maintenance and management costs- Failure to budget for security upgrades and insurance requirements

Professional Service Selection:

- Choosing unverified or inexperienced conveyancing attorneys- Working with unlicensed or unreliable estate agents- Inadequate communication with service providers about foreign buyer requirements

The most costly mistakes typically involve rushed purchases without proper due diligence, particularly regarding property condition and neighborhood dynamics. Foreign buyers often underestimate the importance of local security considerations and may purchase in areas inappropriate for their risk tolerance or lifestyle requirements.

We did some research and made this infographic to help you quickly compare rental yields of the major cities in South Africa versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.

What precautions should I take before committing to a deal?

Essential precautions can protect foreign buyers from common risks and ensure successful property transactions in Johannesburg.

Property and Location Verification:

- Commission professional building and structural inspections- Verify municipal compliance certificates for electrical, plumbing, and building standards- Research neighborhood security statistics and speak with local residents- Investigate planned infrastructure developments that might affect property values- Confirm property boundaries match title deed descriptions

Professional Service Verification:

- Verify estate agent FFC credentials through the EAAB database- Confirm conveyancing attorney qualifications and professional standing- Seek references from previous international clients- Ensure all professionals understand foreign buyer compliance requirements

Financial and Legal Safeguards:

- Establish South African banking relationships before making offers- Prepare complete FICA documentation packages early in the process- Budget for all transaction costs, not just the purchase price- Review all contracts with qualified legal counsel before signing- Consider title insurance for additional protection against unforeseen title issues

Market Research and Timing:

- Research recent comparable sales in the target area- Understand local market conditions and timing factors- Consider seasonal variations in property availability and pricing- Plan currency exchange timing to minimize foreign exchange risks

The most important precaution is allowing sufficient time for proper due diligence rather than rushing into purchases based on limited information or high-pressure sales tactics.

How long does the entire buying process typically take?

The complete property purchase process in Johannesburg typically requires 8-12 weeks from initial offer to final registration.

Process Stage	Typical Duration	Key Activities
Property search and offer	1-4 weeks	Viewing properties, making offers, negotiating terms
Due diligence period	1-2 weeks	Property inspections, title verification, documentation review
FICA compliance and banking	1-2 weeks	Document verification, bank account setup, fund preparation
Mortgage application (if applicable)	2-4 weeks	Loan application, credit assessment, approval process
Conveyancing and documentation	2-3 weeks	Legal document preparation, signature authentication
Fund transfer and registration	1-2 weeks	International money transfer, deeds office registration
Total typical timeline	8-12 weeks	From accepted offer to property registration

Timeline variations depend on several factors including financing complexity, documentation completeness, and seasonal variations in deeds office processing. Cash purchases typically complete faster than financed purchases, potentially reducing the timeline to 6-8 weeks.

Foreign buyers may experience longer timelines due to additional documentation requirements, international fund transfer procedures, and authentication processes for remotely signed documents. Holiday periods and year-end processing backlogs at the deeds office can extend timelines by 1-2 weeks.

Expedited processing is possible for urgent transactions, though this may incur additional costs and requires all parties to prioritize the transaction completion.

What are all the taxes, costs, and fees involved, with a full breakdown?

Property purchase costs in Johannesburg include several mandatory fees and taxes that foreign buyers must budget for beyond the purchase price.

Cost Category	Amount/Rate	Details and Conditions
Transfer Duty	Progressive rates: 0% up to ZAR 1,100,000, then 3-8%	Paid by buyer; no duty on properties under threshold
Conveyancing Fees	0.7-1.5% of purchase price + VAT	Legal fees for property transfer process
Deeds Office Registration	ZAR 1,500-4,000 fixed fee	Government registration charges
Estate Agent Commission	2-7% including VAT	Typically paid by seller, not buyer
International Transfer Fees	~0.2-0.5% of transfer amount	Bank charges for foreign currency transfers
Bond Registration (if applicable)	ZAR 6,000-16,000 + attorney fees	Only if obtaining mortgage financing
Property Inspection	ZAR 3,000-8,000	Optional but highly recommended

As of September 2025, properties valued under ZAR 1,100,000 are exempt from transfer duty, making lower-priced properties particularly attractive for foreign buyers. Above this threshold, transfer duty applies at progressive rates reaching up to 8% for properties over ZAR 10 million.

Total transaction costs typically range from 2-4% of the purchase price for cash buyers, or 3-6% when including mortgage-related fees. Foreign buyers should budget an additional 0.5-1% for currency conversion costs and international banking fees.

Unlike many Western countries, South Africa does not impose capital gains tax on property sales for non-residents who are not tax residents, making it attractive for investment purposes.

It's something we develop in our South Africa property pack.

Can I buy a property in cash, and is mortgage financing actually available for foreigners?

Cash purchases are fully permitted and often preferred in Johannesburg property transactions, while mortgage financing for foreign buyers is available but limited.

Cash Purchase Advantages:

- Faster transaction completion (6-8 weeks typical)- Stronger negotiating position with sellers- No mortgage-related fees or registration costs- Simpler documentation requirements- No ongoing mortgage obligations in foreign currency

Mortgage Financing for Foreign Buyers:

Major South African banks including Standard Bank, FNB, and Nedbank offer mortgage financing to qualified foreign buyers, typically with the following conditions:- Maximum loan-to-value ratio of 50% for non-residents- Interest rates ranging from 9-11% as of September 2025- Minimum loan amounts often starting at ZAR 1 million- Repayment terms typically limited to 15-20 years for foreigners

Tips to Improve Mortgage Approval Chances:

- Provide comprehensive income documentation from home country- Maintain excellent credit records in home jurisdiction - Offer larger deposits (50% or more)- Demonstrate stable employment and income history- Consider using mortgage origination specialists familiar with foreign applications- Establish banking relationships with South African banks early in the process

Foreign buyers should be aware that rand-denominated mortgage payments create currency risk, as loan obligations remain constant while foreign currency exchange rates fluctuate. Some banks offer foreign currency mortgages, but these typically come with higher rates and more restrictive terms.

Cash buyers often receive preferential treatment from sellers and can negotiate better purchase prices, partially offsetting the opportunity cost of not using financing leverage.

What types of property can foreigners buy and what restrictions exist?

Foreign buyers can purchase most property types in Johannesburg with minimal restrictions, enjoying nearly identical rights to South African citizens.

Permitted Property Types:

- Freehold residential properties (houses, townhouses, apartments)- Sectional title properties (condominiums, complexes, estates)- Commercial and industrial real estate- Vacant land for development- Investment properties for rental income- Holiday homes and second residences

Restricted or Complex Property Categories:

- Agricultural land may require Department of Agriculture approval- Properties in tribal trust areas have complex ownership structures- Some strategic or border area properties may face security restrictions- Historical or heritage properties may have development limitations

No foreign ownership limits exist for standard residential and commercial properties, and foreign buyers can own multiple properties without restrictions. Property ownership includes full rights to rent, sell, develop (subject to zoning), and transfer to heirs.

Sectional title properties (similar to condominiums) are particularly popular with foreign buyers as they often include security features, maintenance services, and community amenities that appeal to international investors.

Foreign buyers should verify property zoning and intended use permissions before purchase, as some residential areas restrict commercial activities, and certain commercial zones may limit residential occupation.

As of September 2025, no foreign buyer taxes, additional stamp duties, or ownership restrictions apply to standard property purchases, making South Africa one of the most open property markets globally for international investors.

Is there any path to residency or citizenship through property investment?

Property investment in Johannesburg does not directly provide a path to South African residency or citizenship, but it can support certain visa applications.

South Africa does not operate a formal "golden visa" or investment residency program based solely on property purchase amounts. However, property ownership can demonstrate financial stability and local ties when applying for various visa categories.

Relevant Visa Categories That May Benefit from Property Ownership:

- Business visas for investors establishing South African businesses- Retired persons permits for individuals with sufficient passive income- Work visas where property ownership demonstrates local commitment- Investor visas for substantial business investments (property may be supporting evidence)

The retired persons permit requires applicants to demonstrate net worth of at least ZAR 37 million and monthly income of ZAR 37,000, where property assets can contribute to meeting these thresholds. However, property investment alone is insufficient - applicants must meet additional requirements including medical examinations, police clearances, and proof of medical insurance.

For permanent residency applications, property ownership can serve as evidence of local integration and commitment, but does not guarantee approval. The Department of Home Affairs evaluates applications based on multiple criteria including economic contribution, skills, and family connections.

Citizenship through naturalization requires several years of legal residency, with property ownership being just one factor among many considered in the application process. Foreign buyers should consult immigration specialists rather than relying on property investment as a primary immigration strategy.

Where do foreigners most often buy property in Johannesburg?

Foreign buyers in Johannesburg concentrate their property purchases in secure, well-established northern suburbs that offer modern amenities and international lifestyle standards.

Prime Areas for Foreign Investment:

- **Sandton**: Business district hub with luxury apartments, shopping centers, and excellent security infrastructure- **Rosebank**: Cosmopolitan area with cultural amenities, restaurants, and proximity to business centers - **Parkhurst**: Trendy suburb with cafes, galleries, and strong community atmosphere- **Melrose Arch**: Modern mixed-use development with upscale residential and commercial spaces- **Hyde Park**: Exclusive residential area with large properties and premium shopping access

Factors Driving Location Preferences:

Foreign buyers typically prioritize security features, proximity to international schools, quality healthcare facilities, and lifestyle amenities. Areas with established expat communities provide familiar services and social networks that ease relocation transitions.

Northern suburbs generally offer better security infrastructure including private security patrols, access control systems, and lower crime statistics compared to other Johannesburg areas. These locations also provide convenient access to OR Tambo International Airport for frequent international travelers.

Property types popular with foreigners include secured estates, gated communities, and sectional title developments that provide additional security layers and maintenance services. Many foreign buyers prefer newer developments with modern fixtures and international building standards.

Investment buyers often focus on areas with strong rental demand from expat professionals, particularly those working in Sandton's financial district or other business centers. Rental yields in prime areas typically range from 6-10% annually, making them attractive for income-focused investors.

Areas to approach with caution include inner city Johannesburg and certain southern suburbs where security concerns and infrastructure challenges may not meet international buyer expectations.

Conclusion

This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.

Sources

1. Expatriate Healthcare - Buying a House in South Africa Expat Guide
2. GoHome Loans - Why South Africa is Perfect for Property Investment
3. Private Property - Ten Reasons to Invest in South Africa
4. CSI EUF - Step by Step Guide to Buying a Home
5. Landlords Association - Legal Process of Buying Property
6. The African Vestor - How to Buy House in South Africa
7. Wise - Buying Property in South Africa
8. FinGlobal - Buying Property as Non-Resident