Buying property is somewhat more complicated than the process of renting, and is made especially so for foreigners not yet living in the country. Foreigners are not prohibited from purchasing property in the country, but doing so before actually arriving in the country can make the process rather more convoluted than it need be. One of the most obvious pitfalls being that you can't actually see the property before buying.

Although it's possible to do so without one, purchasing property is most often done through a broker or real estate agency (it may be prudent to check that the agent you are dealing with is registered with the Estate Agents Board). Non-residents in possession of a work permit are regarded as residents for the duration of that permit's validity. As is the case with renting property, it is the seller (or owner) that is responsible for all applicable estate agent fees (usually about 7% of the purchase price) and not the buyer.

Costs the buyer will have to account for are:

- Transfer Duties - This is a government levied tax. Above R330,001 will result in a fee of R7,000 plus 8% of the value over the R330,000 threshold.
- Transfer Costs - These fees relate to the work done by the attorney involved in transferring the property and can be as high as 2% of the price.

There may be other costs (such as those incurred when obtaining finance), but the above are applicable in every case.

If the non-resident is in the process of becoming, or shows a desire to become a permanent resident of the country, they are then eligible to borrow 100% of the property's price from local institutions, otherwise a maximum of 50% is allowed.

Added March 2007 by Carolyn:
The prices of properties in SA are much higher now. The very cheapest you can pay for a safe location 2 beds, 1 bath flat is about $45 000. Average house in gated safe community (you cannot really take a risk as a retiree to stay in a freestanding house with a large garden as you may be a target of crime) with 3 beds ,2 baths will start at $120 000.Top mansions in Cape Town or Johannesburg start at $2 mil. A maid will cost you at least $20 day (5 hour) for av quality work plus food and transport cost.Cheapest car Fiat Uno or Indian Indica is $12500. There is no other transport but municipal buses, going 1 bus per hour and only to some destinations. Very few taxis and at great price and too far to walk anywhere! You pay $15.50 for 1kg of beef fillet and $10 per kg of ham.Av red wine will be $12, good one up to $50, petrol still ok at currently $1.10 per litre, cinema ticket $5.50, normal hamburger $2.85. Only 4 free TV channels but 1 nearly all in black native languages,2nd half in Afrikaans,no cable TV.