Renting our house & selling later

[ocean3]

Hi all financial boffins

We are not having much luck with selling our house in Kyalami Crest (Jhb north)We have reduced the price this year by 100's of K so will see.... but nothing seems to be going on in the property market at this stage with the interest rate hikes.

If we don't sell our house by March we will have to think of renting it out . Not the greatest proposition as we have had endless problems with previous tenants not paying their rent in another estate. If we manage to sell the house after we leave can we still take our migration allowances out at a later stage... say 2 years time?

I am getting worried that we are running out of time Plse. help!!

Regards & thanks

[starfish]

Hi ocean3

You may want to get some financial advice on this. I think that the answer will also depend on whether you formally emigrate (i.e. inform the S.A. gov that you are taking up permanent residence in another country) or simply relocate (i.e. go without informing the S.A. gov). My own sense is that the latter is what most folk actually do.

I had a quick look through the S.A. Exchange Control Manual (online at www.reservebank.co.za), and Section T, item 6.2.5.4 states (inter alia):

"Persons who have emigrated, but have not fully utilised the current authorised foreign capital allowance, may be accorded additional capital transfers, provided the total amount availed of does not exceed the current limits."

It seems from the above that if you do formally emigrate, you can take your capital out (subject to R4mill limit per family unit) at a later time.

[ottg]

Hi

This is a difficult one because it can become more an emotional decision instead of an investment decision. However, I will be very hesistant to rent out the property since you have already experienced problems with tennants. Besides the fact that there is a downturn in the RSA property market, houses priced in the R3-6m bracket are slow movers with few exclusive buyers (companies & embassies).

If your property is too long in the market you will have over exposure. Once a potential investor sees you are desperate he knows he must wait just long enough. The same applies to your estate agents. They can and will use that as leverage for a lower price. Most investors have estate agents that will inform them of a "property in distress"

Make sure that your property is correctly priced. The relative pricing of your property can be verified at:

https://www.reportshop.co.za/property24shop...referrerId=6357

The following is not advice but some ideas.

a. Take out all the equity in your property in cash

b. Get an auctioneer that advertise widely and internationally. Set a reasonable reserve price such that the investor knows he is getting a good deal

c. Let it go asap.

d. Cut your losses

Good luck!