20 MAART
PROPERTY: CONCERNS ON IMPACT
Shorter tourism visa proposed DALEEN FOUCHÉ
The Helderberg Property market may take a beating if proposed legislation to shorten tourist visas is passed. The Department of Home Affairs has proposed several amendments to the Immigration Act, one of which is to allow for only three-month tourist visas for foreigners, instead of the current six months. The proposed amendments were out for public comment until February. Joachim Schuckmann, Immigration Director for Initiate Immigration, a company that helps foreigners to immigrate to South Africa, says many so-called swallows (Europeans who spend their winters in the Southern Hemisphere) are now looking for alternative locations in the south to spend their European winters. Schuckmann explains that the Act will force visitors on a three-month tourist visa to fly back to their home country and apply for a second threemonth visa if they wish to stay a full six months, as per habit. He says if the amendments are approved it will have an adverse effect on the Helderberg property market because swallows will no longer want to invest in a country where they can only spend three months of the European winter. He says Helderberg, especially Somerset West, is a preferred destination for swallows because it is centrally located, but not part of the busy city life, and because it offers gated villages, loads of space and great views. He says, however, that many swallows are now looking to South America as an alternative to South Africa. Lee Siebert, principal of Remax Helderberg, agrees and says one of her clients, an investor from the United Kingdom, was considering buying residential property in South Africa, but decided on buying in Costa Rica because of the proposed legislation
changes in South Africa. Siebert says between 10% and 12% of their business is with foreigners and predicts that half of these clients will be affected if the proposed amendments are approved, because they travel on tourism visas and do not have residency. Carl Nagel, who manages the residential team at Rose McFall Properties, described the proposed legislation to the Immigration Act as “too broad and short sighted”. He says foreigners who invest in the residential property market are an asset to South Africa and, contrary to popular belief, do not make a major contribution to property inflation. Nagel estimates that, in Somerset West, the level of foreign residential ownership is less than 2% and is focused in the upper end of the market, Erinvale being a good example. “The swallows who can afford to flee the European winters are exactly the kind of tourists we need, they contribute to our local work force directly, they frequent our restaurants, tourist attractions, retail stores and on almost every rand they spend, they pay 14% directly into our state coffers.” Nagel believes that as a country, South Africa should “bend over backwards” to accommodate the regular long-term tourists, as they constitute a small percentage of visitors and their rand spent deserves a more accommodating visa treatment. Schuckmann says another proposed amendment will restrict foreigners who wish to start a business in South Africa. The proposal entails that businesses, owned by foreigners, must prove that 60% of the employees are South African. Schuckman argues that foreigners in South Africa might want to start a business to keep themselves busy, but would not necessarily want to grow this business and only run a one man show. He says if the proposed legislation is passed, this will no longer be possible.
COUNTRY LIVING: This 23 ha farm is part of the historic Goedeverwachting estate and has excellent potential for subdivision. The property includes a threebedroomed home stead, manager’s house and two cottages, as well as stables and an entertainment centre. The property is on the market through Pam Golding Properties, priced at R11 million. READ MORE ON PAGE 2
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