Property ownership proposals: More questions than answers

SUZANNE BELLING

He gave more clarification last weekend by saying that if the bill is passed, foreigners may only own land in a business capacity, if the dominant shareholder of an enterprise is controlled from abroad.

Zuma’s spokesman Mac Maharaj said the bill would soon be sent to Cabinet for approval after which there would be public consultation.”

Local estate agents are both confused and frustrated, “because they don’t explain the rationale”, said Samuel Seeff, chairman of Seeff Properties.

“Purely in my opinion, it is a question of politicking and trying to get votes from people who ultimately won’t be beneficiaries of the proposed legislation.

“It’s not foreign visitors, but those residing here on a permanent basis who constitute the bulk of foreign property buyers.”

Research has shown that only about three per cent of properties are owned by foreign nationals.

“If the government feels strongly, yes, restrict the sale of government-owned land rather than interfere with the free-market principles of willing buyer, willing seller,” Seeff said.

Denese Zaslansky, CEO of Firzt Realty, said she concurred with Seeff. She cautioned against panic “because if you speak to 10 different people, you get 10 different opinions of what was said”.

She said Zuma was “very vague” and if one wanted to stop the sale of land to foreigners, a law had to be put into place to stop the Reserve Bank from releasing funds.

She also questioned whether Zuma meant large tracts of land, or mining or commercial property. “He never stated a finite plan of implementation and would have to change the law.”

Nevertheless, Zaslansky believes there are and would be legal routes that would enable foreigners to buy property in South Africa.

“Currently, if a foreign buyer wants to purchase property with finance from one of our registered banks, he has to have a South African partner or shareholder in the company.”

Trevor Stamelman, principal and owner of Stamelman Properties said: “We are being cut off at the knees. We are becoming another Zimbabwe. This is bad for buyers, bad for sellers and bad for agents.

“In Sydenham, Orange Grove, most of the owners are foreign – practically the whole of Cyrildene is Chinese.

“It is going to affect investment.”