Imagine swapping your modest suburban semi for a luxurious property with far-reaching views, acres of lush tropical garden and a swimming pool. The type of property that in the UK would cost you close to a million pounds could be yours for less than £150,000 in South Africa. Well, in some areas at least. In recent years, South African property has been an excellent investment, particularly in the most sought-after coastal regions of the Western Cape, where prices have risen excessively, although there are still bargains to be found.

For many Brits South Africa is a home from home – almost everyone speaks English, there is a large expatriate community and a number of English newspapers, and since there is only two hour's time difference with Britain keeping in touch with people back home is easy. It's a country of huge variety, offering something for everyone: magnificent golden beaches for sun-worshippers; unspoiled rolling green hills and an abundance of stunning wildlife for nature-lovers; one of the world's most beautiful and bustling cities, Cape Town; an abundance of mountains; and a varied coastline that provides opportunities for everything from surfing to cage-diving with great white sharks. Then there's the vibrant nightlife for all you good timers, fine wines and a range of gourmet cuisines for foodies, history and tradition for culture vultures, and plush spas for those in need of some pampering. And let's not forget the world-class golf courses... the list really does go on and on. Such is the lure of South Africa that many Brits decide to buy a house there after enjoying a happy holiday in the country. The Western Cape is without doubt the most popular area of the Rainbow Nation with British property buyers, followed by KwaZulu-Natal. "In our experience most Brits tend to purchase property in Cape Town (in the Western Cape) or Durban (in KwaZulu-Natal)", explains Andrew Brotchie of SA Homebuyers, a South African property search company.  "In Cape Town, the average price we are seeing purchasers pay is about ZAR3million (approximately £246,143) and upwards. In Durban, it is slightly lower, with the average being from about ZAR1.5million (approximately £123,052) and upwards for a house."

The housing market in South Africa certainly provides plenty of choice of location, style and price from lodges on game reserves to slick city pads. The centre of Cape Town, 'the city bowl' has some attractive residential areas, while south of the City Bowl lies the Garden suburbs with some of the city's best restaurants and the world-famous Mount Nelson Hotel. Unsurprisingly, you pay a hefty price for the privilege of owning a home in the area. To the north and north-west of Cape Town lie the Northern suburbs. The Blouberg area is a popular coastal suburb, only a 15-minute drive north of Cape Town on the Atlantic coastline. It has classic views of Table Mountain and its Canal Walk shopping centre is one of the best in South Africa. Properties on the seafront or with good views are more expensive. The picture-postcard town of Hout Bay is a perfect cove with a white sandy beach, clear blue waters and a working harbour. Hout Bay has a laid-back village feel, with plenty of bistros, guesthouses and small shops, but is within easy reach of Cape Town.

If you venture a little further away from Cape Town you are likely to get more for your money. Knysna is roughly at the halfway point of the Garden Route (a beautiful stretch of coast heralded as one of the country's highlights). It doesn't have a beach but sits in an attractive hilly setting overlooking a lagoon, close to impressive forests and has an arty feel, with some attractive Georgian and Victorian buildings. Development is booming, with a stylish waterfront, and plentiful shops and food outlets. Plettenberg Bay, famous for the whales that bob around in the swell from July to October, is popular with Johannesburg's wealthier citizens and has a more relaxed vibe. Back in 2002 Bob and Sylvia Franklin bought a three-bedroom property in Plettenberg Bay, and now spend six months of the year in South Africa, and six months of the year in their Sussex home. "We went there first on holiday in 2000 and just loved it", explains Sylvia. "We planned to buy a property somewhere outside of the UK when we retired. We considered Spain, but then decided we would want to spend the winter months somewhere warmer and so realised we would need to buy a property in the Southern hemisphere", she adds. The Franklins were further enticed by the extremely reasonable property prices: "Our three-bedroom house cost approximately £52,000", Sylvia says.
 
There are currently no restrictions on foreigners buying property in South Africa, and although rumours have been flying around that restrictions are about to be imposed on foreign buyers, the general consensus among estate agents  is that the government is unlikely to make such a move. At present, buying property in South Africa is a fairly straightforward process. For instance, South Africa boasts one of the world's most efficient and sophisticated systems of land registration. Ownership of every piece of land is recorded in one of the regional Deeds Registries. "It was easy-peasey", enthuses Sylvia on the subject of the purchase process. "We saw it, we loved it, and we put down a deposit on a credit card and it was ours.  Once you pay the deposit in South Africa that's it, there's no backing out. In fact we managed to do it all via post and email from the UK." While you can reside in South Africa for three months without any visa, as of last year you have to pay to stay for up to six months – this costs about £80. "There are ways round this, though. We tend to go out in September and then return for Christmas and then go back for three months from January", says Sylvia.

But what about the financial implications of owning a second house in South Africa? "We don't pay any South African taxes – just UK taxes. We pay a maintenance charge all year for the upkeep of our property, we pay a levy and then electricity on top of that." Sylvia continues, "Other costs to bear in mind are car tax and insurance: you can't survive in South Africa without a car".

Despite the fact that prices have increased since the Franklins purchased their house, you can still find property at very reasonable prices. A two-bedroom property in Plettenberg Bay costs from £65,000 and you can still find a five-bedroom house for as little as £240,000.
 
So what about those bargain-hungry investors who have their sights firmly set on South Africa: has the property market reached its peak? "We are seeing a divergence between Cape Town, where prices are stable or declining albeit after some very high growth over recent years, and Durban, where demand is still pushing property price increases", explains Brotchie. "In Durban price growth in the higher, more sought after end of the market is still relatively strong with double digit asking price increases – some areas are reporting up to a 18 per cent increase over the last 12 months, although the average is more moderate than that." South Africa may well be an established market, but there are still many provinces in South Africa that are very good value. The Eastern Cape, although not necessarily the obvious choice, has two areas which could be of interest to prospective migrants or those looking for a second home – Port Elizabeth and Grahamstown. Grahamstown has a very old English feel to it, and many of the buildings that line the town's streets were built in the Georgian and Victorian periods. The town is particularly popular with retirees who revel in the town's ambient surroundings and relaxing lifestyle.
 
Port Elizabeth is the complete opposite of Grahamstown. The fifth-largest city in South Africa, and the economic hub of the Eastern Cape, the city is renowned for its hours of sunshine and the warm waters of its bay. A picturesque three-bedroom cottage in St Francis, close to Port Elizabeth, in the Eastern Cape is currently on the market for a very reasonable £110,000. Purchasing property in St Francis Bay not only gives you an excellent investment, but sun-soaked beaches, swimming, surfing and bird watching are all on your doorstep.

South Africa is clearly the perfect place to enjoy the good life. British emigrants often talk of the 'laid-back lifestyle',  and how 'everyday feels like a holiday'. "We wake up and think 'what shall we do today?'" confirms Sylvia. "It's all about quality time." And regardless of the current property climate the fact that South Africa is due to host the football World Cup in 2010, and plans to build five new stadiums, is clearly good news for the economy, and the future of the Rainbow Nation.

SA HOMEBUYER'S TOP TIPS FOR BUYING PROPERTY IN SOUTH AFRICA

* Buyers need to make sure that they deal with registered estate agents who are familiar with the areas that they are looking to purchase in.

* Offers to purchase made by the buyer are written documents and, if accepted by the seller, are legally binding.

* An area that often catches foreign buyers unaware is the government tax which is levied on property purchases. This transfer duty can be a significant amount of money, especially for larger properties, and buyers should make sure that their budget covers this as well.

* In South Africa the seller usually appoints the conveyancer, but they are paid for by the buyer.
 
* It is worthwhile seeking expert advice to explain all the clauses and implications before you sign any documents.

Read the latest World Property Bulletin ezine now FREE

Search and browse overseas property

For further information:
SA HomeBuyers

Article first published in October 2007