Is it safe to invest in land???

[seeker]

We are putting our house on the market (Virginia) with the intent of immigrating to SA to start a sheep farm in partnership with a SA family who owns a private game reserve. Immigration requires an investment of R2.5 million for a permanent visa. I am hearing horror stories of farm land being reclaimed by the government, rampant crime, steady devaluation of the Rand, etc. Are we making a big mistake?

[Daxk]

Rent your House in Virginia (I gather House sales in the US are a bit slow at the mo)
If you must, take out a loan that you could easily repay in 5 years if you returned to the US.
Anything food will make money in SA but I strongly suggest you take at least 6 months of living there to decide.
The Govt have just launched a new expropriation bill that is pretty horrific in its limitation of property rights but it all boils down to how valuable your land is.
Points to find out about land in SA,
Are there any existing land claims, if so are there any graves on the property?
why are the previous owners selling?
Go down to the local Police Station and ask to see the Incident book for at least a year.
That will tell you the level of crime, what type of crime,stocktheft etc..
find out from the estate Agent how many properties are on sale, how many have actually transferred in the past two years(you can buy this info)
Security and schooling.
I dont know of any farmers who dont own fire arms for very good reasons.
and its not becuase of lions in the backyard.
You will NOT get a firearm licence for at least two years as a Citizen and you will NOT become a citizen in less than a year,possibly 3.
If you really want to farm in Africa, Tanzania and even Kenya are better bets.
There are large expat US communities in Kenya who can advise you, Atlanta CDC is big in Africa as are the Church of the Nazerene Missions
Go and spend six months in SA, on a farm, before you commit your life savings.
Then only invest half of what you are asked to.

[mmm]

live the dream

[seeker]

Thank you Daxk. I wish we could rent the VA house. Frankly, I wouldn't trust anyone here not to trash it and, regardless, my husband does not want to return to VA even if it doesn't work out in SA. We will be moving to the Vredefort area near Parys, which seems to be a pretty safe area. (We've already talked to the police). We've also visited a sheep farm there (which, to my amazement, was cleaner and more well organized than any I've seen in the States) and the local slaughter house (ditto to quality) who told us they can process all we can produce.

The family we are going into partnership with is multigeneration SA and are politically well connected and will do all they can to help us. For the moment we have rented a house for 6 months to give us time to look around and get a true feel of the place while we look for land. Good advice on land clams, etc.

And we most definitely won't invest all our $$$ in ANY one country! Although the interest rate in SA is far higher than it is here.

And mmm - this will definitely be living the dream. My British born, New Zealand raised husband has wanted to 1) live in Africa and 2) sheep farm full time since he was a little boy. Now, at 60, the opportunity has come to our door ...

[Daxk]

Live your dream.? know Frankfort near Parys well, little sandstone houses, village community,had an aunt who lived there.
I too am multi generational, since 1725 in fact.
If I won the euro Millions 150 million Euro, the last place on earth I would go and live is SA.
But then I have lived there for 54 years.
whatever you do, dont do a deal where the land is registered in someone elses name, no matter how many attorneys are involved.

[synthia]

I think you should wait longer before investing in a house or farm of your own, a year at least. You need to go through all the seasons, and have a chance to be really comfortable with where you are.

Does South Africa still have restrictions on how much money you can take out of the country? And how quickly you have to get it out if you leave? Restrictions like that could make it difficult if you want to move on.

[Daxk]

Synthia, you can take out what you brought in plus the profit after Tax

[mmm]

Originally Posted by seeker

And mmm - this will definitely be living the dream. My British born, New Zealand raised husband has wanted to 1) live in Africa and 2) sheep farm full time since he was a little boy. Now, at 60, the opportunity has come to our door ...

then you have nothing to lose

[seeker]

Daxk,

Why would SA be the last place you would live? And does anyone have difinitive info about taking money out of the country?

[seeker]

And what do you mean by not doing a deal where land is registered in someone else's name? Not do a partnership?