CyberProp - Property in South Africa

NEWS FROM INFRAMAX

2008-04-29T16:47:00.000+02:00

INFRAMAX INVESTMENTS CONTINUE TO GROW THEIR PORTFOLIO

Inframax Investments, a company formed five years ago to complement the group’s development company, has added a further property to its portfolio.

The company has acquired 354 Voortrekker Road, Maitland, a double storey warehouse, retail and office complex, with 1 253m2 of floor space.

Inframax Investments Executive Director, Colin Plit, who has spearheaded the group’s drive into commercial property investment, said that 354 Voortrekker Road’s one major tenant, Packit Packaging, who are reliable and respected, have just renewed their lease on 1 188m2 for a further three years.

However, said Plit, as with most of their properties Inframax Investments has acquired these premises because they offer potential for value adding. Inframax Investments will be upgrading an existing 65m2 section to create an additional retail outlet with offices on the upper floor as well as an additional warehouse area.

Plit said that the new space will be ideal for a company that is involved in both retail and wholesale trading, i.e. that needs both display and storage areas.

Inframax’s decision to become commercial property investors had, he said, paid off handsomely: the company now has a portfolio worth almost R200 million.

However, acquiring industrial and commercial properties with upgrade potential has been difficult, he said, because as elsewhere in South Africa, these had until recently been in a seller’s market where prices routinely were “too high”.

“Now with the market conditions softening,” he said, “it should once again be possible to find better priced properties with value add potential.”

John Weaver, an Inframax Investments director, said that the company intends to continue building its portfolio and is looking for new investments.

“As Colin Plit has explained, we look primarily for properties which offer potential for being given a new lease of life. The demand for reasonably priced new offices in former industrial or warehousing space is now particularly good, especially in the Ndabeni, Maitland, Goodwood and Parow areas. Our own Sunrise Park is currently achieving R70 per m2 on office space and R45 per m2 on warehouse space and the indications are that rentals here will continue to rise.”

Asked if Inframax Investments would consider investing outside of the Cape Town area, Weaver said that Inframax Developments has operations in Gauteng, KwaZulu-Natal and the Eastern Province, all of which could introduce the group’s investment company to new opportunities – but, he said, the success at Cape Town has been, at least in part, due to their hands-on management and they would have to be careful to find equally competent managers for any non-Cape projects.

For further information contact John Weaver on 021 530 5760.

NEWS FROM ANNE PORTER KNIGHT FRANK

2008-04-29T16:46:00.000+02:00

FOR THE FIRST TIME IN SEVERAL YEARS THERE ARE NOW MANY HOUSES FOR SALE IN LOWER CONSTANTIA – APKF AGENTS

For a decade or more Lower Constantia has been seen as a highly desirable address by the upwardly mobile and already arrived managerial and professional sets, particularly those that appreciate the southern suburbs.

Mandy Kuhn and Helene du Plessis of the Claremont headquartered estate agency, Anne Porter Knight Frank, say that they are still amazed and pleased by the area’s ability to attract new buyers and, they report, right now the many people still wanting to move in here stand a better chance of doing so than they have done for some time.

“Hit by the higher interest rates and the National Credit Act, Lower Constantia, like many other Cape Town suburbs, now,” says Kuhn, “has more stock on the market than has been seen for at least four years. We ourselves currently have 14 homes listed for sale in Constantia.”

“It is, of course, true,” said du Plessis, “that many sellers continue to try and hold out for unrealistically higher prices – but it is also true that others are coming to terms with the fact that the heady annual increases of yesteryear are now a thing of the past and we are in a buyers’ market. What is more, we now realise that today’s buyer canvasses the market, takes his time about making a decision and expects to get a good price. We are, I think, likely to remain in this situation at least until the end of 2008 and possibly well into 2009.”

In the sub-R3 million category, said du Plessis, the market is now very active. But, she says, buyers have very definitely lowered their expectations and are now looking to buy a home on average R500 000 less expensive than that they previously set their sights on. Show houses, she said, are particularly well attended these days.

Some sellers, says Kuhn, are still trying to get prices of R3,5 to R4 million although all the indicators point to the sub R3 million market now being where the action is.

Du Plessis and Kuhn, says Lanice Steward, MD of Anne Porter Knight Frank, recently have been on a roll and had a series of successes. The agents themselves said that this has been largely due to being totally conscientious about feedback to clients.

“We report to our clients on every contact and every visit that we make,” said du Plessis. “This almost invariably means that we are in touch at least once a day.”

In the current more complicated and more competitive market, she added, it is essential to keep abreast with – and up to date on – all aspects of the property industry, particularly the latest legislation. Recognising this, APKF, said Kuhn, provide compulsory training every week and this, she believes, has given the firm a competitive edge.

For further information contact Mandy Kuhn on 082 603 4584 or Helene du Plessis on 079 528 6514. Both agents can also be contacted at the APKF office on 021 671 9120.

NEWS FROM ANNE PORTER KNIGHT FRANK

2008-04-29T11:41:00.001+02:00

DIRE NEED FOR SECURITY ESTATES IN LOWER CONSTANTIA, SAY APKF AGENTS

The Anne Porter Knight Frank two-girl team which has been serving the Lower Constantia area for some 25 months now, report that their area now desperately lacks security villages.

Helene du Plessis and Mandy Kuhn say that they have daily enquiries for homes in security villages in their area – but in many cases they are unable to meet them because there has been a serious lack of new development in this field for some time.

“People,” said Kuhn, “are now understandably worried about the crime, despite the success of local neighbourhood watch bodies and patrol firms. This worry has become so persistent that some are now reluctant to live in free-standing homes on their own plots. That is one major factor driving the demand for security estates in the area. The other is quite simply that so many people always have and always will want to live in Lower Constantia.”

Du Plessis said that there are many people already living in Constantia who are looking to scale down there and, once again, are reluctant to leave the area – because it is so pleasant.

In general, she said, people in lower Constantia are looking for security villages in the R2,5 to R3,5 million price range.

“We feel,” said Kuhn, “that it is time the authorities seriously considered rezoning to allow one or two lower Constantia villages to be developed”.

The fear that such projects might spoil the attraction of the area, said Kuhn, is groundless. Provided new developments are appropriately designed and the estates are limited to 20 or 30 homes in all they will enhance, not lower, the appeal of the area.

“Our experience,” said du Plessis, “is that the boutique type of security village usually increases the value of all homes in its area – and this has been proven again and again.”

Kuhn and du Plessis stressed that although there is a shortage of security units, they do still come on the market from time to time and APKF is handling its fair share of these.

For further information, contact Mandy Kuhn on 082 603 4584 or Helene du Plessis on 079 528 6514. Both agents can also be contacted at the APKF office on 021 671 9120.

Home Ownership!

2008-04-18T09:28:00.002+02:00

Go to any local Dead’s Office and you can find property records detailing real estate ownership in your community -- sometimes records that date back hundreds of years.
These records are important because they provide today's owners with proof that they have good, marketable and insurable title to the property they are selling. Equally important, such records enable buyers to provide proof of ownership when they sell.

The closing process, which in different parts of the country is also known as settlement, is increasingly computerized and automated. In many cases, buyers and sellers don't need to attend a specific event; signed paperwork can be sent to the closing agent via overnight delivery.

In practice, closings bring together a variety of parties who are part of the "transaction" process. For example, while the history of property ownership has been checked, it's possible that the records contain errors, unrecorded claims or flaws in the review itself, thus title insurance is necessary. At closing, transfer taxes must be paid and other claims must also be settled (including closing costs, legal fees and adjustments). In most transactions, the closing agent also completes the paperwork needed to record the loan.

What to expect.

Settlement is a brief process where all of the necessary paperwork needed to complete the transaction is signed. Closing is typically held in an office setting, sometimes with both buyer and seller at the same table, sometimes with each party completing their papers separately.

Whatever the case, the result is that title to the property is transferred from seller to buyer. The buyer receives the keys and the seller receives payment for the home. From the amount credited to the seller, the closing agent subtracts money to pay off the existing mortgage and other transaction costs. Deeds, loan papers, and other documents are prepared, signed and filed with local property record offices.

What you need to do.
One of the best parts of settlement is that buyers and sellers need to do very little.

Before closing, buyers typically have a final opportunity to walk through the property to assure that its condition has not materially changed since the sale agreement was signed. At closing itself, all papers have been prepared by closing agents, title companies, lenders and lawyers. This paperwork reflects the sale agreement and allows all parties to the transaction to verify their interests. For instance, buyers get the title to the property, lenders have their loans recorded in the public records and state governments collect their transfer taxes

The Editor
www.cyberprop.com

NEWS FROM MADISON PROPERTY FUND MANAGERS

2008-04-17T12:34:00.002+02:00

IMPROVED RENTALS WILL BOOST RETURNS FROM LISTED PROPERTY COMPANIES

In the plethora of comment from the business community that followed Eskom’s announcement that they are unlikely to have any spare capacity until 2012/2013 - and that greenfield development projects, by and large, would now be put on hold - it was interesting to hear Mike Flax, Executive Director of Madison Property Fund Managers, say that the current cloud, while wholly unwelcome, does have a silver lining.

This, in Flax’s view, is that industrial, commercial and residential rentals, which have already moved upwards significantly over the last six months, will be given a further boost by the inevitable shortages of space that will follow on the ban on new development.

“Rentals in all sectors, other than retail, will probably increase at above 15% compound, i.e. well ahead of the inflation rate, for the next five years,” said Flax. “The upward rental cycle, which many had thought might ease quite soon, now seems set to continue for far longer.”

Retail rentals, he said, will probably stay at current levels for the next one and half to two years because consumer spending has been hit by the interest rate rises – and until rates drop by at least 2% to 3% consumers will continue to cut back. However, an upswing in the consumer sector, he predicted, will take place towards the end of the first quarter of 2009 and should increase steadily until the year-end.

Property values in this scenario, said Flax, are likely to drop or remain stagnant for at least a year, even though non-retail rentals will rise. This year is, therefore, a good time to buy, perhaps especially in the residential sector which has seen a 5% to 10% drop in values in many areas.

How will the situation he foresees impact on Madison, which manages property and property development for Redefine, Hyprop Investments and Apex-Hi Properties? Flax said that with 40% of this group’s portfolio tied into non-retail property, they are in a strong position to benefit from the extended rental cycle.

“Traditionally,” he said, “retail has outperformed other property sectors and we are confident it will do so again once consumer spending has recovered. One thing is absolutely certain and that is that many of our funds’ retail centres will be upgraded during the coming period so as to position them for the next upswing and gain market share in the current tightening conditions.”

Asked how the Madison development programme will now shape up, Flax said that despite the “almost smothering” impact of the Eskom difficulties on greenfield projects, upgrades, extensions and a limited number of new projects should see Madison involved in some R3 billion worth of development from now until the end of 2009.

The company’s strength, he said, continues to be that its management is pared down, young and energetic. Above all, he said, it is very close to the market and often a jump ahead of its opposition in seeing new opportunities.

“In Madison,” he said, “we have, I think, managed to inculcate a culture which cuts through red tape. We give our young executives a great deal of freedom and this enables them to be innovative and get on with the job.”

- MIKE FLAX

For further information contact Mike Flax on 021 425 1000.

Are You Ready?

2008-04-14T08:03:00.002+02:00

Knowledge and experience are the keys to successful real estate transactions.

One of the keys to making the buying a house process easier and more understandable is planning. In doing so, you'll be able to anticipate requests from lenders, lawyers and a host of other professionals. Furthermore, planning will help you discover valuable shortcuts in the process.

Do You Know What You Want? That is the question.

Whether you are a first-time property buyer or entering the marketplace as a repeat buyer, you need to ask why you want to buy? Are you planning to move to a new area due to a lifestyle change or is buying an option and not a requirement? What would you like in terms of real estate that you do not know you have? Do you have a purchasing timeframe?
Whatever your answers, the more you know about the real estate marketplace, the more likely you are to effectively define your goals. As an interesting exercise, it can be worthwhile to look at the questions above and to then discuss them in detail when meeting you’re your estate agent.

Do You Have The Money?

Property and financing are closely intertwined. (Financing is the difference between the purchase price and the down payment, commonly referred to as debt or the mortgage.) The good news is that over the years new and innovative loan programs have evolved which require high down payment or less.
In addition to a down payment, buyers also need cash for closing costs (the final costs associated with closing the loan). Several newly emerging loan programs not only allow the purchase of a house with no money down, but also underwrite closing costs.
Not everyone, however, elects to purchase with little or no money down. Less money down means higher monthly mortgage payments, so most Property buyers choose to buy with some cash up front.
As to closing costs, in markets where buyers have leverage, it may be possible to negotiate an offer for a house that requires the owner to pay some or all of your settlement expenses. Speak to your estate agent for more details.

Is Your Financial House in Order?

Those great loans with little or nothing down are not available to everyone: You need good credit. For at least one year prior to purchasing a property, you should assure that every credit card bill, rent check, car payment and other debt is paid in full and on time.

The Editor

Cyberprop. Team

NEWS FROM SHELLEY POINT

2008-04-11T08:06:00.000+02:00

NINETY-TWO APARTMENTS BEING BUILT AT SHELLEY POINT – BUT EXISTING RENTAL ACCOMMODATION WILL STAY

For many Capetonians - and Bolanders – the West Coast begins and ends at Langebaan. Relatively few have explored further afield and there is in some people’s minds a perception that the territory north of Saldanha is bleak, windswept and inhospitable. The few 1820 Settlers dumped here by Lord Charles Somerset all left for Cape Town within a year.

A visit to Shelley Point, the 149ha development 150km north of Cape Town could, however, change the average visitor’s perception of the West Coast effectively – and for ever.

In 1994/1995, a visionary property developer, Gert Joubert, began developing the coastline of Brittania Bay and St Helena Bay - and one of the results of this innovative action has been Shelley Point.

This 1,500 erven project was from the start given an image totally at variance with what most people regard as typical of the West Coast.

To kick off the development, Joubert erected an imposing entrance gate, more like a Roman triumphal arch than a gatehouse, and a Vasco da Gama Museum - because St Helena Bay was this Portuguese mariner’s first South African landfall. He then criss-crossed the estate with large, often double carriage, boulevards, on the verges and central isles he planted grass, indigenous bushes and some 900 palm trees, almost all of which have flourished as a result of being automatically watered year-round by a drip irrigation system.

To these initial facilities Joubert then added a bowling green, a nine hole golf course and, more recently, tennis courts, a R30 million clubhouse with a wellness centre, spa and swimming pool – and a R2 million desalination plant to have enough fresh water to keep the estate green.

Taken together, these today make Shelley Point one of the most perfect places in the Western Cape to spend a weekend – or longer – and it will come as no surprise to those who know the place that some 20% of the buyers in the last few years here have been from Europe and the UK.

The estate is particularly attractive to nature lovers because from July to January Southern Right and Humpback Whales can be seen daily in St Helena and Brittania Bays. Indeed, Andre van Wyk, Shelley Point’s Clubhouse General Manager, says that sometimes they come so close to shore that he is convinced that they are actually rubbing their undersides on the beach sand.

Those wishing to holiday at Shelley Point will from July onwards be able to rent or buy a brand new apartment, the first 42 of which will come on stream in mid-year. Ninety-two apartments will be erected altogether in two new blocks just behind the clubhouse.

B & B rates here will be from R375 per person sharing and children under 12 years old will either stay free (if very young) or be given a 50% discount. The apartments will have full self-catering facilities.

The apartments can be bought from prices ranging from R900,000 to R1,2 million.

For those who would like to stay at Shelley Point before the new apartments are ready, a rental service has free-standing homes available with two, three or four bedrooms. These are privately owned by people who do not live permanently at Shelley Point but who use an independent rental pool service to make their homes available. This type of accommodation is ideal for family and larger groups looking for a relatively inexpensive break: a two bedroom home with beds for four can be had for as little as R650 per night and a three bedroom home for R800 per night.

Visitors to Shelley Point, says Andre van Wyk, almost invariably praise it primarily on three counts. These are, firstly, that it has an all pervading atmosphere of tranquillity, secondly, the clubhouse and facilities are superb and, thirdly, that it offers some of the best fishing in South Africa. Stompneus, galjoen, yellowtail, harders and – above all – crayfish abound in these waters. Surprisingly, however, only a very small percentage of Shelley Point’s visitors actually ever pick up a rod or crayfish net.

Those wishing to find out more about what Shelley Point can offer the casual visitor – possibly also looking to buy – should consult their website www.shelleypoint.com. No other single resort on the entire West Coast, says van Wyk, has so comprehensive a range of facilities and services – and future plans, which include more luxury apartments and a small boat harbour, will add to these.

NEWS FROM ANNE PORTER KNIGHT FRANK

2008-04-01T16:38:00.002+02:00

NUMBER OF SHOWHOUSES AND SHOWHOUSE VISITORS WELL UP ON LAST YEAR

In the three months from December 2007 to February 2008 the real estate industry saw a 7% rise (on the same period the previous year) in the number of Cape Peninsula homes given show days. 12 960 homes in all were opened for show days – and an estimated 20% more visitors came to them.

“Contrary to popular belief, there has,” said Lanice Steward, MD of Anne Porter Knight Frank, “been a great deal of activity in the market, particularly in the upper middle and upper brackets. Stock numbers have risen significantly but so has the number of would-be buyers. This has enabled us to increase our year on year first quarter turnover by 14% with March increasing by well over 60%.”

Asked the reason for the increased activity, Steward said that there is a “fruit salad” of interlinked causes, including all the usual ones: promotion, transfer, divorce, retirement and financial problems. The last, she said, now very definitely plays a bigger role than in 2007.

“Many people are feeling the crunch and are scaling down to cope with job losses, higher interest rates and stricter credit restrictions.”

Far more people, said Steward, are now facing up to the reality that they will need additional security in their retirement and a move to a retirement village will be essential even though it may be the last thing that they want.

Those facing bond repayment problems, said Steward, should take note that banks do not like repossessing homes – they almost always lose money in the process and it detracts from their primary activities.

“At APKF we have found time and again that although people are struggling financially they are scared to confide in their banks. When they do, however, they often find that the bank is far more helpful than they had anticipated. It is frequently possible to negotiate a 30 year repayment period, to skip a few months’ payments and even to alter the interest rate. Banks do try to help in this matter.”

In a separate statement last week Steward made it clear that although SA expatriates, especially those living in the UK, are keen buyers of SA property, the market is not much influenced by non-South African overseas buyers.

“Those who propound the doom and gloom scenario for Cape property,” said Steward, “might find it very difficult to explain why it is that the number of genuine would-be buyers has risen so much. The market has retained its confidence and is still, both locally and from the SA expatriate community in the UK, very much alive.”

For further information contact Lanice Steward on 021 671 9120 or email lanice@anneporter.co.za.

Top 10 Man-Made Island Paradises

2008-03-26T09:09:00.002+02:00

Have you ever fantasized about building an island paradise? Although many people dream about creating an island, few can dredge up the money or materials to realize those inspirations except in the most unusual circumstances. But, within the past century, developers have created habitable islands where individuals can live in communities or where they can visit for entertainment and relaxation. Investors now can own a piece of man-made island paradise, all shaped from dreams and blueprints or expanded upon with reclamation efforts. Although much of the world’s attention has been drawn to the creative island-building efforts located in Dubai, such as The Palm, the list below includes man-made island paradises located in the U.S., Japan, Spain, and other areas as well as the mideast. Some islands were built specifically for tourists, while others were created only for homeowners. Some blend both community life with tourism to offer a wide variety of possibilities for all concerned. Some islands have been inhabitated for decades while others recently have invited investors to the table for projects that will be finalized within the next decade.

The list below is in no particular order. While the sites are numbered, the numbering does not indicate that we favor one site over another or that they are listed in order of value.

1. The World: One way to add land mass to a city is to add a series of world-class islands to that city’s coastline. Dubai developer, Nakheel, has added more than 1,500 km of beach front to the Dubai coastline with various island-building projects over the past decade. These islands include The Palm, The World and Dubai Waterfront, and they’re located off the Dubai city coastline, United Arab Emirates (UAE) in the eastern Arabian Peninsula. The World is the latest complete island paradise, with the last stone on the breakwater added on 10 January this year. Investors and developers can choose among 300 islands in the shape of the continents to create estate islands and residential and resort communities. All 300 islands are accessible only by marine or air transport, with world-class marinas to berth boats, yachts and cruise liners. Two mainland marinas will service The World, and 4 hub islands in The World will service the islands. Nakheel integrates a series of waterways, canals and lakes to enhance the overall design. Investors have the freedom to create their own personal vision on the islands for private or commercial use, whether it is for leisure, residential or tourist developments. The 300 islands will be offered for sale on a freehold basis to selected investors only. If The World doesn’t suit your taste, perhaps the next Nakheel project, The Universe, will be more your cup of tea.

2. Tokyo Disney Resort: Tokyo Disney Resort may or may not be the ideal paradise destination for adults, but adults with kids in tow might prefer this Japanese Disney destination over California’s Disneyland or the Magic Kingdom in Florida. Tokyo Disney Resort was the first Disney park to be built outside the U.S., and it will celebrate its 25th anniversary during 2008. The park was constructed by Walt Disney Imagineering in the same style as the U.S. parks. The Oriental Land Company purchased the theme license from the Walt Disney Company although it follows the Disney ideal. The island contains 115 acres, and it is located in Urayasu, Chiba, Japan, near Tokyo. The island resort contains five hotels within walking distance from seven themed areas within the park. If you don’t have children in tow when you visit Japan and you want to visit a man-made island, you can plan to fly through Chūbu Centrair International Airport, Kansai International Airport, Kobe Airport, or the new Kitakyushu Airport. All four Japanese airports are built upon artificial islands.

3. Eden Island: Imagine living on a private island, with secluded beaches, a world-class commercial precinct, international marina capable of handling super-yachts as well as a range of activities and leisure facilities for your exclusive use. You can find this paradise on Eden Island, located in the Seychelles archipelago nation. This archipelago is located in the Indian Ocean, some 930 miles east of mainland Africa, northeast of the island of Madagascar. Situated just off the coast of the main island of Mahé, Eden Island is a 99-acre residential marina development that sports a minimum of 480 luxury freehold apartments, mansions and private villas. Homes are spacious, with large verandas and high-pitched red roofs. They feature breathtaking views over mountains, ocean, forests and nearby islands like Cerf and Ste. Anne. Unlike Tokyo Disney resort, Eden island is for property owners only and these owners qualify for residency. Only property owners within the development have exclusive use of facilities such as private beaches, parks, private moorings, clubhouse facilities and much more.

4. Venetian Islands : You don’t need to leave the U.S. to find first-rate man-made island paradises. You can find several situated near Miami in the form of the Venetian Islands. Although this little piece of heaven isn’t for the hermit, it’s perfect for anyone who wants to own a piece of community real estate in the one- to five-million dollar range. The islands, originally built in the 1920s, are connected by the historic Venetian Causeway from the Miami mainland to Miami Beach. The islands did not exist when the Venetian Causeway was first envisioned. Beginning in 1922, the Biscayne Bay improvement Company sold lots for underwater plots with contracts specifying that the buyer would receive land on an island once it had been dredged, filled, and improved. Construction of the Venetian Islands proceeded quickly and work on the Venetian Causeway began in 1925, consisting of viaducts, fill, and drawbridges. The Venetian Causeway was listed in the National Register of Historic Places in 1989. Today, the this causeway is a popular stretch for joggers, bikers, dog walkers and sightseers.

5. Balboa Island: In 1908, Balboa Island near Newport Beach, California, was little more than a sandbar. Then, real estate promoter William Collins received permission from the Orange County Board of Supervisors to dredge the surrounding bay. He piled more sand on that little sandbar and built Balboa Island. Collins originally sold lots on the island for as little as $25. It’s a little late to purchase a lot on Balboa Island for that price, as some bay front lots now are appraised at over three million dollars. Despite this price increase, the island has retained its early twentieth-century charm. It is home to professionals, families, retirees, students and celebrities, but Balboa Island also entertains tourists and vacationers who return year after year to enjoy the scenery and activities. Local tradition has it that Balboa Island is where the frozen chocolate banana was first marketed, and tourists and residents alike count on stores to carry bags filled with salt water taffy and Balboa Bars (a brick of vanilla ice cream on a stick dipped in chocolate and rolled in chopped peanuts). Sounds as though a visit to this man-made paradise could sate your sweet tooth!

6. Sentosa Island: Singapore is no stranger to land reclamation, as they have constructed at least eight artificial islands over the years. The one that is most popular among tourists and residents who seek man-made island paradises is Sentosa Island. This 1,235-acre island was originally an island that has experienced man-made expansion. Complete with championship golf courses, spas, and world-class entertainment, the Sentosa HarbourFront contains over 20,000 square feet of retail space and attractions that run the gamut from adventure rides to historical exhibits amidst a retail environment. Located on the western tip of Sentosa island, Rasa Sentosa Resort is Singapore’s only beach front hotel. But, HarbourFront masterplans include a 10,000-strong residential community alongside this integrated family resort. Within the year, the Capella Singapore, developed by Millenia Hotel Pte Ltd (an associate company of local property conglomerate Pontiac Land Group), will open a six-star luxury resort that boasts 170 rooms and a number of private villas. Architectural genius Lord Norman Foster and legendary hotelier Robert Burns will see this multi-million dollar hotel project to fruition.

7. The Pearl-Qatar: Not to be outdone by its Dubai neighbor, Qatar is building a multi-billion dollar artificial island located less than one mile off the Doha coastline. The island will create almost 20 miles of new coastline, and it will provide 985 acres fronted by more than 12 miles of pristine beaches for over 40,000 residents in more than 15,000 dwellings within 12 precincts by 2010. The Pearl-Qatar is this country’s first international real estate venture. It represents the largest real estate development in the country and the first venture here to offer freehold and residential rights to international investors. Shaped like an exotic string of pearls, the Pearl-Qatar will allow room for800 guests among its 40,000 residents to enjoy three marinas, three 5 star hotels, plus almost half a million square feet of retail, dining and entertainment space.

8. Zoran Island: Mr Gulu Lalvani, developer of the Royal Phuket Marina in Phuket, Thailand, has his eye set on a new project - Zoran, a man-made island located off the Phuket shoreline. Lalvani told local press that Bill Gates and his 54-meter yacht.provided the inspiration for this island. Phuket lacks a marina that can handle superyachts, a significant failing in light of the increasing number of super-rich tourists such as Bill Gates coming to this area. An Australian consulting firm has been hired to survey the proposed project site, which Lalvani named after his youngest son. Plans are developing for a hotel, luxury villas and berths for superyachts. So, if you have a hankering for such a place, then keep an eye on this future project.

9. Sovereign Bay: If you’d prefer to live in Spain, then this proposed marina development, planned by Foster and Partners, might be your idea of luxury. This man-made island paradise is located on an existing area of reclaimed land to the east of the Rock of Gibraltar. The scheme includes a comprehensive environmental strategy, which capitalizes on the regional climate, location and orientation of the buildings, including using seawater from the surrounding Mediterranean Sea to cool the buildings. The new harbour is spacious enough to accommodate a boutique cruise liner terminal as well as a full marina for yachts. According to the Web site, the sweep of the marina arm will hold retail, cafe and restaurant life, terminating in a luxury residential development on the land-side. “The residential component will include a range of apartments with private swimming pools, terraces and sea views. Two beaches on each side of the development will be regenerated, with a spa and hotel located at the land-side gateway. The harbour will be connected to a series of landscaped public squares and plazas, with naturally-lit underground parking and direct pedestrian access, which will include a variety of leisure facilities, such as swimming pools and tennis courts, in addition to a full compliment of retail and designer outlets.” With those amenities, you’d never need to leave this island paradise!

10. Reef Island: You don’t need to wait until 2010 to invest in Reef Island. This man-made island paradise is gathering momentum as a flux of Bahraini and European investors have rushed to book up to over half the proposed housing units to date. Previously known as Lulu Island, this reclamation project is being built as a joint venture between the Bahrain government and the Bahrain-based Mouawad Group Real Estate Development Company off the coast of Al Manama, in the Kingdom of Bahrain. The development was designed by Australian-based Spowers and Pentago, and it is designed in the shape of the number nine. This freehold development project’s land reclamation is complete, and it covers an area of 6.23 million square feet. Construction has begun on approximately 1,200 condominiums, 65 villas and 49 beach fronted homes. Future plans include a 250-room five-star hotel, marina and yacht club, an aquarium, a well care center, a shopping mall, and a multi-function exhibition center.

Tips on property investment

2008-03-17T14:24:00.001+02:00

NEWS FROM RAWSON PROPERTIES
- from one of the most experienced people in the game

Throughout his 35 years in real estate marketing, he has regularly and steadily invested in property – and this has proved to be financially and emotionally rewarding, says Bill Rawson, Chairman of Rawson Properties.

“I am always surprised that others have not also been investing in property,” said Rawson recently. “It is really not that difficult provided that you do your homework, study the market and work with an agent with a proven track record.”

Successful property investors, said Rawson, devote time to familiarising themselves with their fields of operation. They strive to understand current trends by reading newspaper advertisements, visiting show houses and attending auctions. They find out who the likely end-users i.e. buyers or tenants will be, and what such users can probably afford.

Rawson recently told a small group of mostly retired investors, keen to put money into Cape residential property that property is the logical investment channel for intelligent, retired people.

“It still surprises me,” says Rawson, “how often eminent professionals such as yourselves who are known for the thoroughness with which they tackle legal, engineering and medical work will go into property almost on a whim. Often they do quite well, but seldom, in my experience do they maximise their potential profit.”

Common mistakes of amateur investors, said Rawson, are:

·To buy in response to an emotional stimulus, often simply because they like the property or are influenced by clever marketing hype. Frequently, he said, this will lead to paying above the market price.
· To accept the advice of a friend without getting full details or second or third opinions.
· To neglect the management of the project or, if this is handed over to an agent, to be slack about checking up on the agent’s performance.
· To go into the deal without a game plan – and then to panic when conditions get difficult. The game plan, said Rawson, should always include a worse-case scenario and spell out the implications in this situation.

Ideally too, property investors, he said, will divide their portfolio into long-term (10 years +) and short-term prospects, designed to bring in a quick profit. When selling they will recognise the importance of leaving some fat in the deal for the next buyer.

They will too, recognise that good opportunities crop up regularly and they will befriend local agents so as to be the first to hear of these. On occasions they will put in a really cheeky low-price offer knowing that these occasionally bear fruit. They see the renovation potential in buildings and build up teams of trustworthy artisans and designers to help them double or even treble the value of such buildings.

They resist greed, limiting their portfolio’s debt to manageable proportions, use bank finance regularly and keep reserves for times when there could be a downturn.

“The great advantages of property,” said Rawson, “are that there are very seldom hidden factors of which the investor is ignorant. In this respect property is very different from the average Security Exchange share where the company can limit the supply of information to its public. In property the likely factors to influence values, e.g. interest rates, shortage or over-supply of stock, defaulting tenants or similar problems, can usually be understood and factored in so that you are unlikely to be caught out down the line. In recent years there have been very few properties that did not increase in value at at least 10% + per annum.”

Right now, said Rawson, is a good time to invest in the residential property market because the higher interest rates, the National Credit Act, the falling rand, higher inflation and a degree of uncertainty about the South African political future have stopped home and apartment prices rising at their previous rates – so there are now good bargains on the market.

“It is now quite clear that the current 4% to 5% returns on residential property will improve this year. I am confident that we will see to 6% to 8% returns and these will raise the capital values on all residential property.”

For further information contact Bill Rawson on 021 658 7100 or email research@rawsonproperties.com.

NEWS FROM ANNE PORTER KNIGHT FRANK

2008-03-14T08:51:00.000+02:00

HOMEOWNERS MUST HAVE THEIR TITLE DEEDS TO HAND WHEN SELLING A PROPERTY

Homeowners often do not appreciate the importance of their title deeds, says Lanice Steward, MD of Anne Porter Knight Frank.

If they are buying with a mortgage bond a copy of the deeds will always be held by the bank - but the buyer must nevertheless have his or her own copy.

If the buyer is buying for cash, he should have been given a copy of the deeds by the attorney on paying the transfer cheque - or within three months of transfer. This elementary duty on the part of attorneys is sometimes overlooked due to pressure of work and delegation to uninvolved clerical staff, says Steward.

“Those who do not have the title deeds can apply through their attorneys to the Deeds Office for a copy but if, as often happens, they leave this until the property is sold, they are likely to find that the transfer is held up by the lack of this all important document.”

For further information contact Lanice Steward on 021 671 9120 or email lanice@anneporter.co.za.

How to Price Your Home

2008-03-13T16:49:00.001+02:00

pricing decisions should be grounded in reality rather than wishful thinking

When the time comes to price your home for sale, you may be tempted to start with the price you paid for it, add a healthy mark-up and call it a day. Unfortunately, that strategy is unlikely to result in a true reflection of your home's market value.
Here are six strategies to help you figure out how much your home is worth:

1. Abandon your personal point of view.

How much will a ready, willing and able buyer be willing to pay for your home? Buyers don't care how much you paid for the home, how many memorable moments you and your family shared in the home, how much cash you need for the down payment on your next home or how much time and money you've invested in your home's hardwood floors, fresh paint, lush landscaping or other improvements.

2. Get a couple of CMAs.

Invite at least three real estate agents to visit your home and give you their opinion of its likely selling price. Ask for a "comparative market analysis" (CMA), which shows the prices of comparable recently sold homes, on-the-market homes and homes that were on the market, but weren't sold. The on-the-market homes are the "competition" for your home. Ask the agents why each home was included in the CMA and whether any other comparable homes were eliminated from the CMA. Price recommendations based on CMAs aren't gospel. Some agents will tell you to under-price your home in hope of sparking a bidding war. Others will suggest a flatteringly high price to "buy" your listing only to demand a price reduction a few weeks later.

3. Do your own market research.

Go to open houses in your area and try to make an impartial assessment of how those homes compare to yours in terms of location, size, amenities and condition. Assuming all the asking prices were the same, would you buy your home or someone else's?

4. Calculate the price per square foot.

The average price per square foot for homes in your area shouldn't be the sole determinant of the asking price for your home, but it can be a useful starting point. Keep in mind that various methodologies can be used to calculate square footage

5. Consider market conditions.

Are home prices in your area trending upwards or downwards? Are homes selling quickly or languishing? Will your home be on the market in the spring home-buying season or the dead of winter? Are interest rates attractive? Is the economy hot or cold? Will you be selling in a buyer's market or a seller's market? Is the local job market strong or are employees fearful of staff reductions?

6. Sweeten the transaction terms.

Some buyers have needs that go beyond the bottom line. If you're willing to close escrow quickly, you'll attract buyers who want to move in right away. If you can offer seller-financing, your home will appeal to buyers who need to stretch their financial resources. A lease-option can help first-timers who need down payment assistance. The more creative and flexible you can be in meeting the buyer's needs, the more success you'll have in pricing your home to sell.

Editor: By Marcie Geffner

Rent-to-Own Deals: Smart Questions to Ask...

2008-03-06T13:42:00.001+02:00

For Sellers:

Who will tend to the property and pay for routine maintenance?

Who pays for major repairs?

What are the costs of setting up and managing an escrow account for the portion of rent allotted to the down payment?

Will you manage the property yourself, or hire an agent?

What if the renters change their minds?

Who keeps the money in the escrow account?

If the buyers change their minds, what will be required to put the property back on the market?

For Buyers:

How much of the rent is going to the down payment?

How locked in are you if you change your mind?

What will it cost you to get out of the deal?

How long will it take to accumulate enough of a down payment that you are likely to qualify for a mortgage?

NEWS FROM GREEFF PROPERTIES

2008-03-03T14:54:00.000+02:00

LARGE HOME ON SUBDIVISIBLE PLOT IN WARBLERS WAY, CONSTANTIA, SOLD BY GREEFF PROPERTIES – FOR MORE THAN THE ASKING PRICE

In a remarkably short space of time (32 days in all) since Greeff Properties received a sole mandate to market a Constantia home on an exceptionally large 11,000m2 site in Warblers Way, a sale has been concluded with Mike Fenner-Solomon of Michael Grant Developments.

With unprecedented interest shown in this property from various quarters it is understood that the sale price ultimately achieved was some 6,5% above the original asking price.

“The reason for the excellent response,” said Mike Greeff, Chief Executive of Greeff Properties, “was that this site had already received an approval for sub-division into six erven, one containing the existing home and five suitable for new homes. It is located in a quiet area and all plots will offer superb mountain vistas.”

The original house has an unmistakable Herbert Baker/Groot Schuur look to it which is no surprise as it was designed by an architect trained by Baker himself. The existing 553m2 double storey home served for many years as the Swedish Ambassador’s residence and offices.

Fenner-Solomon has revealed that he will be completely renovating the 70 year old historic home on its 3,200m2 site (with a swimming pool) and building luxury double storey homes with swimming pools on each of the remaining erven. These houses will have 500m2 to 550m2 of floor space and will be on plots averaging 1,400m2 in size.

Fenner-Solomon, who has personally designed the homes developed by him in his 15 year career, will be designing these new units. He will, he said, as on almost all his previous developments be building in a traditional but contemporary Constantia style with such attractive features as pitched slate tiled roofs, high ceilings, solid timber doors and floors, sliding sash windows, fireplaces, and deep covered verandas. As important as the homes themselves will, he said, be the landscaping: a very substantial sum will be spent on totally re-landscaping the gardens of all six sites. This work, as on previous Michael Grant Developments projects will be supervised by the respected landscaper, Alan Dawson.

Greeff said that Fenner-Solomon is one of the most respected developers in the entire Constantia valley, his main focus being the Upper Constantia area, where the Michael Grant Developments Billboards are now seen on many roads; including Brommaert and Spaarman Roads and Willowbrooke Lane, Spilhaus Avenue, Avenue Bordeaux, Brommersvlei road and Avenue Provence.”

“All these homes,” said Greeff, “have attracted fulsome praise both from the public and the architectural fraternity and we at Greeff Properties are delighted that he has taken over this very central, high profile project.”

Mike Fenner-Solomon said that his company had gone to great lengths to research commercially viable energy and water saving methods. The new homes, like others now being built by his company, will have the latest solar water heating and solar panels with battery back-up to ensure that electricity supplies to essential circuits are constant. They will also have grey water systems in the gardens to back up the borehole sourced automatic irrigation systems. Timers to all hot water cylinders and geyser blankets will be standard and all hot water pipes will be lagged. These items, said Greeff, should be basic essentials but are invariably overlooked in most residential homes.

The houses will also enjoy “double” security and privacy because each home will have its own security system and be enclosed within the estate as a whole.

“There has,” said Greeff, “already been a remarkable response from interested parties and potential buyers asking to be kept informed about the launch date. Completion is set for mid-2009 and although Michael Grant Developments invariably markets their homes only after completion it seems likely that Greeff Properties, who are handling the sales, will have signed up all the properties at the outset. It is clear that despite the uncertain political and economic conditions, there will always be an ongoing need for secure properties in the heart of the best residential areas such as this.”

For further information contact Mike Greeff on 021 794 4969 or 083 679 1809 or email info@greeff.co.za.

NEWS FROM ASLO HOLDINGS

2008-02-25T16:01:00.000+02:00

ASLO’S WEST COAST SALES AND MORTGAGE BOND COMPANIES BENEFIT FROM THE TIE-UP WITH ACTIVE PROPERTY DEVELOPERS, LANGEBAAN

Anyone visiting Langebaan for the first time in three or four years will be surprised to find just how much residential and other development has taken place here, especially in the precinct north of the village in close proximity to Club Mykonos. One indicator of how prosperous the area has become is that there are now no moorings available in the three local yacht clubs – Langebaan, Club Mykonos and Saldanha.

Two Aslo Property Group companies, A Property Sales and A Mortgage Loan, have ridden the recent property boom particularly well. Early last year Anthony Smook of Aslo did a deal with Langebaan developer Bennie van der Merwe, CEO of Active Property Developers which resulted in van der Merwe becoming a shareholder in A Property Sales and A Mortgage Loan. This has enabled the two Aslo companies to muscle in on all Active Property Developers’ projects – to their mutual benefit.

Right now, the Aslo companies are involved with the selling and, in most cases, the mortgage bond finance on The Dunes and White Waters. These will have double storey homes, each with a garage. They are sited at Laguna, close to Club Mykonos, the retail centres and the Curro Private School and will have fourteen and eleven homes respectively. These are all designed in an attractive white walled Weskus style that makes use of the traditional bakoond type chimneys and paved wind-free patios covered with pergolas.

The units in each case have a double storey central pitched roof section flanked by flat roofed cottage type additions. They come with two bedrooms and, in some cases, an upper loft. Prices, which vary from R850 000 to R950 000, and are likely, he says, to escalate at 15% per annum, reflect the relatively low cost of labour and of land in this area. Buyers, says van der Merwe, have come from all over SA and over half intend to settle here permanently, the remainder buying for holiday or retirement use.

To date, only 12 months since the launch, all but six of the 25 units have been signed for. Transfer will be given by the latest end of March 2008.

A Property Sales and A Mortgage Loan, have also been involved with van der Merwe and another developer on the Laguna Lifestyle Village, a luxury retirement development sited close to the Laguna Mall, designed to have 151 homes in all. Here prices are pitched from R825 000 to R1 219 000 and to date 24 units in phase one have been sold despite there having been no official launch. Handovers will take place from June 2009 onwards. A civil engineering contractor is already on site handling the roads and services.

A fourth project on which van der Merwe and the Aslo companies are involved has been a 14 unit mini-factory park, Nordyk Park, at Saldanha, an area undergoing rapid industrial expansion. Here the units are on average 200m² in size and are priced from R740 000 inclusive of 36m² office space.

Asked to what he attributes the increased demand for property at Langebaan, van der Merwe said that its accessibility is undeniably one of its chief attractions.

“It can take you two and a half to three hours to drive from Cape Town to Hermanus or Onrus at peak traffic times on a Friday afternoon – and much the same time to return on a Sunday evening. By contrast, Langebaan is never more than one and a half hours away, and less for those living north of the CBD.”

The ongoing demand, he said, had kept prices more buoyant than in any other part of SA and had boosted property values by 22% over the last year.

Aslo’s staff at Langebaan, are: Di Plumridge (an A Property Sales agent), Pierre Mouton (an A Property Sales agent), Wikkie Agenbag (an A Mortgage Loan consultant), Sorita Coetzer, PA to Bennie van der Merwe and Office Manager.

For further information contact Bennie van der Merwe or Sorita Coetzer on 022 772 0240.

Five Keys To Successful Negotiation

2008-02-22T08:14:00.001+02:00

Whether you're a buyer or a seller you want to succeed in the realty marketplace. That's natural and reasonable, but what are the steps you need to triumph?
Negotiation is a complex matter and all transactions are unique. Sides—buyer and seller—want to feel that the outcome favours them, or at least represents a fair balance of interests. In the usual case there is a bit of bluff, some give-and-take, and neither party gets everything they want.

So how do you develop a strong bargaining position, one which will help you get the most from a transaction? Experience shows there are five basic keys which will determine who wins at the negotiating table.

1. What Does The Market Say?At various times we're in a "buyers" market, a "sellers" market, or a market where housing supply and demand are roughly equal. If possible, you want to be in the market at a time when it favours your position as a buyer or seller.

Because all properties are unique—it is possible to buck general trends and have more leverage than the marketplace would seem to allow. For instance, if you have a property in a desirable area with few sales, you may be able to get a better deal than elsewhere. Or, if you're a buyer who can quickly close, that might be an important negotiating chip when dealing with an owner who just got a new job 500 miles away.

2. Who Has Leverage?If you're on the front page of the local paper because your business went bust—and the buyer knows it—you have little clout in the bargaining process. Alternatively, if you're among six buyers clamouring for that one special property, forget about dictating an agreement—the owner can sit back and pick the offer which represents the highest price and best terms.

3. What Are The Details?A lot of attention in real estate is paid to transaction prices. This surely makes sense, but the key to a good deal may be more complex.
Consider two identical properties that each sell on the same day for R275, 000. The houses are the same, the sale prices are the same, but are the deals the same? Maybe not. For instance, one owner may have agreed to paint the property, replace the roof, purchase a new kitchen refrigerator, and pay the first R3, 000 of the buyer's closing costs. The second owner made no concessions.

In this example, the first house was actually sold at discount—the R275, 000 purchase price less the value of the roof repairs, closing credit, and other items. If you're a buyer, this is the deal you want. If you're a seller, you would prefer to be the second owner and give up nothing.

4. What About Financing?Real estate transactions involve a trade—houses for money. We know the house is there, but what about financing? There are several factors that impact the money issue:
Has the buyer been pre-qualified or pre-approved by a lender? Meeting with a lender before looking at homes does not usually guarantee that financing is absolutely, unquestionably available—a loan application can be declined because of appraisal problems, title issues, survey findings, and other reasons.

But, buyers who are "pre-qualified" or "pre-approved" (these terms do not have a standard meaning around the country) at least have some idea of their ability to finance a home and know that they are likely to qualify for certain loan programs.

The result is that pre-qualified buyers represent less risk to owners than a purchaser who has never met with a lender. If the seller accepts an offer from a buyer with unknown financial strength, it's possible that the transaction could fail because the buyer can't get a loan. Meanwhile, the owner may have lost the opportunity to sell to a qualified buyer.

The lower the interest rate, the larger the pool of potential buyers. More buyers equal more potential demand, good news for sellers.

Alternatively, high rates or even rising rates may drive buyers from the marketplace—and that's not good for anyone.

It used to be that down payments were a major financing hurdle—but not anymore. For those with good credit, loans with 5 percent down or less are now widely available. In fact, 100 percent financing, mortgages with nothing down, are now being made by conventional lenders. Reduced down payment requirements are good for both buyers and sellers.

5. Who Has Expertise?Imagine you're in a fight. The other guy has black belts in 12 martial arts—and you don't. Who's going to win?

Brokers have long represented sellers, and now buyer brokerage is entirely common. In a transaction where one side has representation and the other does not, who has the advantage at the bargaining table?

The Editor
Cyberprop

DROP IN RAND WILL REIGNITE FOREIGN BUYER INTEREST

2008-02-20T13:43:00.000+02:00

The 15% drop in the value of the rand (measured in relation to the dollar) and a 10% drop to the Euro will very definitely reignite interest in upmarket Cape property among foreign buyers, says Mike Greeff, CEO of Greeff Properties. The signs of a revival in UK buyers’ demand for Cape property, he says, are already there.

“With foreign buyers likely to comprise a maximum of 1,5% of the total of those buying Cape homes, their overall effect on the general market will,” says Greeff, “be minimal, but in “high end” properties the renewed foreign interest will keep prices buoyant.”

Repeating what he has said previously, Greeff warned again that there is absolutely no need for the South African authorities to become xenophobic or paranoid about foreign buying. It should, he said, be welcomed because it has knock-on benefits right down the line.

In addition, he added, in his experience many overseas people who buy in SA purely for recreational or retirement purposes end up investing here as well.

“It is the nature of such people to study the business scene and to capitalise on opportunities – and that is just what happens, to the benefit of SA as a whole.”

Greeff commented that there is a “negative sentiment” in SA at the moment regarding property and this is probably due to the high interest rates, the prospect of slower growth, increased crime, power cuts and political uncertainty.

However, he said, this scenario has thrown up numerous good buy opportunities, which will reward those who take the plunge now.

“We need,” said Greeff, “to ask ourselves what will happen if and when the problems mentioned are solved where will the property market then head? Even in the current less-than-perfect circumstances Absa is predicting a 60% (12% per annum) house price growth in five years – and as we all know banks are conservative.”

Greeff commented that a new Constantia project which his company will be involved will soon bring to the market five new plot and plan homes priced at roughly R14 million each.

“This,” he said, “is the sort of opportunity to which I was referring. These homes will be of special interest to local and foreign buyers and, as I see it, for the next year or so similar good opportunities will continue to arise and keep the upper end of the market buoyant.”

For further information contact Mike Greeff on 021 794 4969 or 083 679 1809.

Don’t change tactics if you want to sell fast

2008-02-14T16:11:00.000+02:00

If you want your home to sell as quickly as possible, award a sole mandate to an experienced agent and stick to it.

That’s the advice of Martin Schultheiss, CEO of the Homenet estate agency group, who says homeowners anxious to get their properties sold are often tempted to switch from a sole mandate, with one agent handling the marketing, to an open mandate with several agents theoretically working on the property.

“But our experience shows that such a switch is actually likely to lengthen the listing time of a property rather than shorten it. For one thing, much of the marketing done by the original sole agent will go to waste as the newcomers each institute their own plans to build up interest in the property.

“And secondly, agents are quite naturally less inclined to work on an open mandate than a sole mandate, so the property may actually get less attention than if there were one agent involved.

"Such delays will of course mean an increase in the seller's holding costs, as well as a real risk of the property becoming overexposed."

In addition, he says, a cluster of different for-sale boards on a property creates a bad impression and may well encourage prospective buyers to “shop around” among the various agents involved until they find the one that agrees to present the lowest offer.

“The seller might refuse this but if several buyers use the same tactic, he will increasingly come to believe that these low offers are the best he’s going to get - and end up settling for a much lower price than if he’d stuck to one agent.”

To make matters worse, notes Schultheiss, the seller who skips from a sole mandate to an open mandate also substantially increases the risk of a claim for “double commission" that could badly dent the profitability of his sale.

Such claims can easily arise when the eventual buyer of a property views it with one agent but concludes the purchase through another.

ISSUED BY HOMENET
FOR MORE INFORMATION
CALL MARTIN SCHULTHEISS AT
031 266 9850 OR VISIT
www.homenet.co.za

Distributed by/ versprei deurThe Mega/ Press NetworkPse direct any enquiries to012-333-6644,073-946-9649 ormegw@telkomsa.net

RE/MAX urges state to launch first-time buyer "package"

2008-02-11T15:49:00.000+02:00

SUN CITY (February 07) – Government has been called upon to unshackle the current property market slowdown by giving more meaningful support to home ownership by launching a “package” in the March 28 budget structured specifically around assisting first time homebuyers.

Ideally, first priority should be around tax relief on home loans for a specific period, based on the selling price of the home, and also extending the current transfer duty relaxation from R500 000 to R1m.

The appeal was made at Sun City today by Jeanne van Jaarsveldt, finance and marketing director of RE/MAX of Southern Africa, in his opening address at the group’s 13th convention. A key feature of the convention is its focus on finding ways to assist first-time buyer affordability, which van Jaarsveldt said had become “critical” in terms of the need for action.

While acknowledging the call for tax relief on mortgage repayments was an industry perennial, Van Jaarsveldt said the situation had become far more serious in its necessity from a social, financial welfare point and even job creation point of view. The first time market was in threat of being strangled by rate increases, tighter credit and market uncertainty.

The irony of the current situation was that unsuccessful first time buyers were now crowding an already bursting-at-the-seams rental market and inevitably inflating the cost of rentals. This situation also needed to be urgently addressed in the “package” by encouraging developers to build lower end rental stock through tax incentives, such as scrapping of VAT on new homes and dedication to energy saving measures. Certain foodstuff, based on their necessity enjoyed VAT relaxation, so too should homes in the lower end of the market be allowed the same benefit.

There was also a “dire need” for streamlining and speeding up the processing approval of new residential developments by local authorities. This needed to be orchestrated by central and provincial government with a no-nonsense approach and disciplining local authorities for unjustifiable slow processing.
“After the high rate increases and tighter credit the slow processing is proving the straw capable of breaking many of the remaining developers back and needs to be urgently addressed by the state before developers become an endangered species.”

Van Jaarsveldt admitted he was one of many industry captains greatly disappointed at the lack of communication between the Housing Ministry and the residential sector through the national Institute of Estate Agents on all housing issues. The Institute, like other industry voluntary bodies, was anxious to assist the state in anyway possible, but had been totally ignored as a helpful source of knowledge. Apart from the state’s failure to recognise the Institute’s depth of experience their discounting of its potential value was sad in the context of the urgency to house the nation and indicative of a myopic attitude.

The Editor
Rodney Hayter

NEWS FROM ANNE PORTER KNIGHT FRANK

2008-02-11T11:11:00.000+02:00

LAST EIGHT UNITS RELEASED AT “THE GEORGIAN” IN WYNBERG

The developer of “The Georgian” in Wynberg, one of the most popular multi-unit sectional title developments marketed recently by Anne Porter Knight Frank, has decided to release the last eight of the 36 units in the scheme, all the others having now been sold.

The entry level price of R875 000 represents excellent value for a new project in this sought-after area, says Lanice Steward, MD of Anne Porter Knight Frank.

“It equates to R15 000 per m2 which is R5 000 to R7 000 less than that of similar other projects in the same area,” says Steward.

The site forms part of the old synagogue property which was acquired by the developer and will be security fenced and have electronically controlled gates.

On offer are 62m2 studio apartments and 90m2 two bedroom units. The upper floor is set back to create attractive balconies with views of the Wynberg mountains and False Bay, while the ground floors have small private patios and gardens.

Handover is scheduled to take place from September this year. Construction work has reached the third level. Jacob Wolters & Associates, the architects, have incorporated traditional Georgian features such as quoined corners, moulded straight-line gables, vertically configured windows, moulded plinths and dormer windows.

“When complete this will be an exceptionally attractive building,” said APKF’s Wynberg agent, Gail Cawood, “and its timing is near-perfect because the whole precinct, including the popular Maynardville Park, is being upgraded. This is evident not only in the new developments but in the ongoing improvements to stand-alone homes in the area.”

Editor : Anne Porter Knight Frank

Warning Signs Of a Bad Loan

2008-02-08T08:40:00.000+02:00

Know the red flags of a loan going bad

Chances are you know the seven warning signs of cancer; many people do. But do you know the seven red flags that a lender is taking advantage of you? Or that the loan you are considering is not in your best interests?

If not, the Federal Trade Commission warns in an updated alert, you could end up losing your house and all the equity you've built up in it over the years.

"Not all loans or lenders are created equal," the consumer watchdog agency cautions in the revised bulletin. "Some unscrupulous lenders may offer loans to elderly or low-income homeowners and those with credit problems, promising that the loan will be based on the equity of the home, rather than the homeowner's ability to repay it."

Basically, if a loan sounds too good to be true, it probably isn't. But beyond that, there are certain tell-tale signs that something is amiss and you should slow down and proceed with extreme caution.

Avoid any lender who:
Tells or requires you to falsify information on your application. There is no such thing as a "little white lie" when borrowing money. If you don't tell the truth, you could go to jail or be fined. But even if you are not prosecuted, you could be forced to pay the loan in full right away. Or you could be getting in way over your head and find yourself on the street.

Pressures you into borrowing more money than you need. The only reason a lender wants you borrow more than necessary is to increase his commission. But you'll probably pay more in interest on the extra dough than you'd earn in interest by stashing it away in a savings account. So stick to what you need and ask for no more.

Pushes you into accepting monthly payments you can't afford. Figure out whether you have enough coming in to cover all your monthly bills, including a new or larger mortgage. And don't forget to have a little cushion for emergencies. If your outflow is more than your inflow, you will find yourself in trouble rather quickly. Only Uncle Sam can get away with deficits.

Fails to provide you with the required loan disclosures, or tells you don't need to read them. By law, lenders have to tell you the APR, or annual percentage rate, plus provide an itemized list of closing costs within three days after you apply.

The APR is a comparison shopping tool that includes not just the interest rate but also points, broker fees and certain other credit charges. The list of closing fees, known as a good faith estimate, will cover these charges as well as everything else you'll be asked to pay at settlement.
If yours is considered a "high-rate, high-fee" loan, the Home Ownership and Equity Protection Act, gives you additional rights and protections.

All of this is valuable information, so take as long as necessary to read it. And if you don't understand it, consult with someone you trust for an explanation. That could be an attorney, financial advisor or your local credit counselling agency.

Promises one thing and delivers another. If you are presented one set of terms when you apply for the loan and a completely different set at closing, your antenna should wiggle and you should demand an explanation. Actually, even if your lender explains what's going on, it's probably a good idea to step back and take another, harder look at what he's asking you to agree to. And be prepared to walk away and take your business elsewhere.

Tells you it is okay to sign blank forms. It is never okay to sign a blank form. Period. End of story. So don't allow the lender to fill in the blanks later. If there is a blank, cross it out and initial your mark.

Says you can't have copies of the papers you are signing. Or won't give you copies of the documents you'll be asked to sign.

Lenders may not give you the actual filled-in papers in advance, but they should be willing to give you blank documents that have not yet been filled in so you can take them home and review them or show them to a trusted advisor. If they won't, wonder if they have something to hide.

And if the lender won't give you copies of what you've signed at closing, cancel the deal right then and there. These papers contain important information about your rights and obligations. If your lender doesn't want you to have a set, something's terribly wrong.

The Editor

By Lew Sichelman
(Realty Times)

Get Insurance

2008-01-31T10:22:00.000+02:00

No one would drive a car without insurance, so it figures that no homeowner should be without insurance.

The essential idea behind various forms of real estate insurance is to protect owners in the event of catastrophe. If something goes wrong, insurance can be the bargain of a lifetime.

What kind and how much?There are various forms of insurance associated with home ownership, including these major types:

Title insurance:Purchased with a one-time fee at closing, title insurance protects owners in the event that title to the property is found to be invalid. Coverage includes "lenders" policies, which protect buyers up to the mortgage value of the property, and "owners" coverage, which protects owners up to the purchase price. In other words, "owners" coverage protects both the mortgage amount and the value of the down payment.

Homeowners' insurance provides fire, theft and liability coverage. Homeowners' policies are required by lenders and often cover a surprising number of items, including in some cases such property as wedding rings, furniture and home office equipment.

Flood insurance:Generally required in high-risk flood-prone areas, this insurance is issued by the federal government and provides as much as R270, 000 in coverage for a single-family home plusR100, 000 for contents. Your real estate agent can explain which locations require such coverage.

Home warranties With new homes, buyers want assurance that if something goes wrong after completion the builder will be there to make repairs. But what if the builder refuses to do the work or goes out of business?

Home warranties bought from third parties by home builders are generally designed to provide several forms of protection: workmanship for the first year, mechanical problems such as plumbing and wiring for the first two years, and structural defects for up to 10 years.

Home warranties for existing homes are typically one-year service agreements purchased by sellers. In the event of a covered defect or breakdown, the warranty firm will step in and make the repair or cover its cost.

Insurance policies and warranties have limitations and individual programs have different levels of coverage, deductibles and costs. For details, speak with estate agent, insurance brokers and home builders.

How do you get insurance?The time to obtain insurance and warranty coverage is at closing, so speak with real estate agent or insurance broker prior to closing. Be sure to ask about limitations, costs, deductibles and "endorsements" (additional forms of coverage that may be available).

The Editor
Cyberprop

NEWS FROM RAWSON PROPERTIES

2008-01-29T16:02:00.000+02:00

SARS CLOSE UP TAX LOOPHOLE

A recent amendment to the Companies Act (1973) could help eliminate one of the loopholes in the current tax structure, says Tony Clarke, MD of Rawson Properties.

Up to now, says Clarke, if buyers were thinking of avoiding paying transfer duty by taking ownership of a property through a company, this might have been feasible – but the new amendment will make it impossible.

The amendment specifies that when a company's shareholders authorise their directors to dispose of the majority of the company's assets (or the bulk of its business), a special resolution has to be registered with the Registrar of Companies within 30 days of the resolution being passed. This, says Clarke, will increase the likelihood of the Receiver of Revenue realising that what appears to be simply a share transfer is, in fact, a bona fide property sale - particularly where the company has no or few other assets.

The amendment is effective from and including 14 December 2007 and is not applicable to Close Corporations.

In the past, says Clarke, non-trading companies with only properties as assets, could possibly have been sold without the Receiver of Revenue being aware of exactly what the deal comprised, despite the fact that the Transfer Duty Act had previously been amended to ensure the payment of Transfer Duty on such sales.

“At Rawson Properties we fully support the amendment and the tightening up in this field which, it has to be admitted, is long overdue,” said Clarke.

For further information contact Tony Clarke on 021 658 7100 or email research@rawsonproperties.com.

Look at Homes

2008-01-24T17:10:00.000+02:00

Some 6 million new and existing homes are sold each year. There's no shortage of housing options, but with so many choices the challenge becomes finding the property which best meets your needs.

The housing market is complicated because the stock of homes for sale is always in flux. If it were possible to have a complete list of every home for sale at this very moment in a given community, such a list would become obsolete within seconds as new homes become available and properties now for sale are put under contract.

In effect, buyers are looking at a moving target in a marketplace that is never static. Because of this, it is important to know as much as possible about the choices in preferred markets, and the way to do that is by working closely with a local Agent who has a good "lay of the land."

What are you looking for?

A home is more than just a collection of bedrooms and bathrooms. Several properties -- each with four bedrooms, three baths, and the same price -- may well represent radically different designs, commuting distances, lot sizes, tax costs, interior dimensions, and exterior finishes.

Each of us is different and so it's important to list the features and benefits you want in a home. Consider such things as pricing, location, size, amenities (extras such as a pool or extra-large kitchen) and design (one floor or two, colonial or modern, etc.).

Next, it's important to consider your priorities. If you can't get a home at your price with all the features you want, then what features are most important? For instance, would you trade fewer bedrooms for a larger kitchen?

Lastly, consider your needs in several years. If you'll need a larger home, maybe now is the time to buy a bigger house rather than moving or expanding in the future. If you expect your income to increase, perhaps you should consider a more expensive home financed with a loan program where monthly payments increase in the future.

Where should you look?

All areas and communities have a special nature that gives them identity and value. One community may be well known for historic homes while another offers both suburban living as well as easy access to downtown office areas.

How do you find a house?

Some buyers like to search cyberprop.com by looking at listings on the basis of location or price; others prefer to have local real estate agent suggest properties; and many buyers prefer both approaches.

Regardless of your choice, it's important to target your search. By using basic measures such as general location and affordability, you can refine your search and focus on homes that offer the most desirable features.

As a guide, you should maintain a file with information on each of the homes you like. You can print out listing pages from www.cyberprop.com and then make notes for each one -- what you like, questions, Real Estate Agent contact data, etc.

The Editor

Cyberprop.com

Choose a Home

2008-01-10T16:45:00.000+02:00

There's no doubt that choosing a home is a big decision and you want to do it right.

As a buyer, here's what actually happens. A home has been placed on the market for which the seller has established an asking price as well as other terms. In effect, this is an offer. At this point, you have three choices: accept the seller's offer and create a contract; reject it and not make an offer; or suggest different terms and make a counter-offer. If you choose this last option, the seller may accept, reject or make a counter-offer.

No aspect of the home buying process is more complex, personal or variable than bargaining between buyers and sellers. This is the point where the value of an experienced Estate Agent is clearly evident because he or she knows the community, has seen numerous homes for sale, knows local values and has spent years negotiating realty transactions.

Is it THE house?

A house is shelter, but a home is far more. It's where you live, relax, and entertain friends, raise families, and work. A home is where you spend much of your life, and so choosing a house is an enormous decision.

How do you know if a house is THE one? Probably the best approach is to look at as many homes as possible, something made easy by Realtor.com, where you can quickly and easily view huge numbers of homes, check prices, take video tours and view extensive area information. Once your choices have been narrowed, you can then contact a local Estate agent to find specific information and options.

Can you really afford it?

Getting pre-approved means you have a very good idea of how much you can borrow, what loan programs will most likely work best in your situation and how much home you can afford.

How reliable is a pre-approval? While pre-approval is not a loan commitment, it's still necessary for lenders to check such items as appraisals and the latest credit reports. Despite fluctuating interest rates, pre-approval nonetheless provides a reasoned, careful analysis of what you can afford. After all, loan officers are routinely paid only when loans are originated. It doesn't make much sense for loan officers to suggest high loan limits that later can't be delivered.

The Editor

Cyberprop

Market It

2007-12-13T14:25:00.000+02:00

Make House Selling Success!

If you bought a car, you could purchase a given model with selected features from any dealer. Since the car comes from one assembly plant, it's going to be the same whether purchased from dealer John or dealer Mark.

Homes are different. Each is unique, the marketplace is always in flux, interest rates constantly change and new buyers search for homes each day. With such fluidity, it requires Real Estate Agents to craft marketing plans specifically for individual homes and market conditions.

Selling can entail a variety of marketing strategies. Once listed, it's likely that the home will be quickly entered into the local MLS (Multiple Listing Service) and placed on other property websites. The Agent routinely market by mail with new-listing announcements and regular newsletters. Open houses, broker access to the home via the use of a lock box and networking with both local and out-of-town brokers are also common.

Much of a broker's work will be quiet and unseen -- yet important. The quiet telephone calls, the work with contacts, the follow-ups with open-house visitors, conversations with ad respondents, the web postings and other outreach efforts are all part of the process required to sell homes.

Experienced Estate Agent bases their marketing efforts on previous transactions and ongoing research.

How to market your home.

If you look at a typical transaction you can see that there are five general areas where Real Estate Agents can assist in the home-selling process.

Closing: Once a contract for the purchase of a home has been accepted, a series of inspections and checks are typically required to satisfy buyers and lenders. Real Estate Agent can help owners complete the transaction process by assisting with the many requirements found in a typical sale agreement.
Pricing: Brokers do more than price homes for sale, they also construct sale terms designed to speed the selling process.
Negotiation: Real Estate Agent assist owners in the bargaining process, offering advice and counsel as offers are received and by working closely with legal counsel, tax specialists and inspectors as required.
Preparation: Before being placed on the market, homes must be in "show" condition. Estate Agent can explain what repairs and upgrades are required for individual homes which are most likely to produce the best results.
Marketing: Real Estate Agent will execute strategies and programs to get the home sold. Typically this includes placement on the local MLS and other properties websites as well as related marketing, advertising and networking.

How to hold an open house.There are no universal marketing standards for Real Estate Agent because marketplaces are localized. For instance, open houses may be common in some communities but rarely used in others.

In the case of an open house, the Real Estate Agent typically advertises that the home will be open for a given period (2-5 p.m. on Sunday). During the open period, the agent will hosts the home while the owners leave for a few hours.

At the open house, the Real Estate Agent will provide literature, maintain a visitor log and answer questions. By interacting with visitors, the Real Estate Agent will seek feedback regarding the home and opportunities to follow up with prospective purchasers.

How do you show your home online?The Internet is an important factor in real estate marketing and will likely become more important in the future.

The Internet has two important roles in the real estate selling process. First, it is a "place" to view real estate. Cyberprop.com, for example, lists over hundred thousands homes, the largest group of homes online or off. Individual Estate Agent also maintain thousands of localized sites while professional groups and, likewise, industry organizations, have an online presence.

Online real estate information includes not only home listings, but numerous additional features and benefits.

Equally important, the Internet offers new communication media. E-mail and instant messaging give Estate Agents and consumers more opportunities to keep in touch. As the Internet evolves, more technologies and techniques will be introduced to make transactions easier and more efficient.

The Editor
Cyberprop

NEWS FROM GREEFF PROPERTIES

2007-12-11T15:11:00.000+02:00

DISTINGUISHED ULTRA MODERN HOME ON THE BISHOPSCOURT / CONSTANTIA BORDER COMES ONTO THE MARKET

The last decade has seen a marked change taking place in the Bishopscourt residential marketing scene, says Mike Greeff, Chief Executive of Greeff Properties.

South-facing homes that overlook the Constantia valley and False Bay are now, says Greeff, fetching the same prices - or even more - as those often built earlier which face north and look onto the Kirstenbosch mountains and Devil’s Peak. Many of the newer south-facing homes, adds Greeff, have some of the best designs in the Cape Peninsula.

Greeff made these comments after learning that two of his most successful agents, Ford King and Janine Stevenson, had been given the mandate to market a three level 1,000m2 (approximately) home on Ridge Walk that is now on the market at a price of R13,5 million.

Ford King says that the home is a fine example of quietly impressive, understated, elegant modern architecture not often seen in the Cape Peninsula’s Southern Suburbs: strong horizontal lines and beautifully proportioned shapes accentuated by long balconies, by floor to ceiling glazing in many rooms and by brick paved patios that lead directly onto the garden. One area, he says, has a fully glazed roof.

“The success of the design hides the fact that this is an exceptionally large home,” says King.

“There are no less than seven bedrooms, five en suite, and two with their own living rooms, a very large kitchen with a breakfast bar all fitted out in Maple wood and granite tops, a formal dining area and, on the lower ground level, a wonderful range of extra facilities which include a home cinema and pub, a large temperature controlled wine cellar, a billiard room, an outdoor braai area – and two self-contained cottages, one with two bedrooms the other with one, both of which can be accessed from the main home or via independent external entrances.”

The patio leads onto a beautiful rim flow pool and garden. Staff accommodation and four car garaging plus additional guest parking for another six cars are available on site.

Stevenson says that the home will appeal to two categories of buyer: those desirous of living in South Africa’s most sought after residential precinct, Bishopscourt and Constantia, and, more particularly, the growing body of serious buyers who have turned their back on traditional Cape Dutch, Italian palazzo, Tuscan and similar designs and are now looking for the clean, pristine impact of good modern architecture.

“I believe that anyone standing in any corner of this home’s grounds will be bowled over by these very simple but immaculately executed cubist shapes,” says Stevenson.

For further information contact Ford King on 083 226 2946 or Janine Stevenson on 073 168 4749.

Part-time agents will ‘disappear’

2007-12-07T08:12:00.000+02:00

The real estate industry is in for a major shake-up next year when training requirements and registration procedures of agents will undergo radical changes.

But, says Berry Everitt, MD of the Chas Everitt International property group, the changes are to be welcomed. “The industry may end up with fewer accredited estate agents, but those who remain will be better trained and will be enabled to offer consumers a high quality service.”

The group’s CEO of business development, operations and training, Rod Williams, says the new requirements are expected to have a particular impact on part-time estate agents. “They will all but disappear from the property scene, leaving well-trained professionals to look after consumers’ interests,” he predicts.

In terms of the new requirements, agents will no longer just have to pass a theoretical exam at the Estate Agency Affairs Board, or work for one year under the supervision of a qualified agency principal in order to qualify as a registered estate agent.

“The new qualification, the Further Education and Training Certificate: Real Estate, will foster a combination of theoretical knowledge and practical competency,” says Williams. “All existing estate agents will be assessed in terms of 27 unit standards to determine their levels of competence and will have to undergo further training to attain the 150 credits needed for registration in terms of the FET certificate.

“They will also undergo structured interviews and may be required to hand in portfolios as proof of practical competence,” Williams says.

Existing estate agents will have to comply with all the requirements by the end of 2010 to keep their registration as estate agents while all new entrants to the industry will have 12 months to complete their training. It is expected that the new system will replace the existing system in the first quarter of next year.

Williams agrees that the move will have far-reaching implications for the industry. “The switch-over may well be painful – but in the long run it will be worth it. It will strengthen the industry and improve levels of professional service,” he says.

Issued by Chas Everitt International
For further information call
Berry Everitt or Rod Williams at
011 801 2500
or visit www.chaseveritt.com

Distributed by/ versprei deurThe Mega/ Press NetworkPse direct any enquiries to012-333-6644,073-946-9649 ormegw@telkomsa.net

Does jealousy make you nasty?

2007-12-05T12:15:00.000+02:00

Does jealousy make you nasty?

It has now happened more and more that we found a specific competitor of ours, Property 24, being “nasty”. The latest is denying any data imports or exports for our mutual clients. The fact is that they are more than willing to send it to other sources. This does make one wonder.

Why would they, the all and mighty property portal, as they claim, have a problem with a small company like USP Designs?

Is it perhaps that they are afraid?

Are they scared of loosing market share?

Are they scared of loosing existing clients?

Or is it just plain jealousy as they are no longer the only market player?

At the end of the day they like us should be looking out for their clients as their clients are paying their salaries. Then again, they might be thinking that they do not need to have good client relationships in place as they have a “Big Brother” that will bail them out time and time again.

With my hat on as a client I would expect from my service provider to do its utmost in order to enhance my business. By continuing receiving good service I in return will continue to making use of his services.

To deny data exports or imports because of one of the above mentioned reasons can be very damaging in the long run. I will be very upset if this was the case with my service provider, especially if data feeds are done for some clients. Does this means;

That I am to “small” for them?

That I don’t count in their eyes?

That the colour of my money is not the same as a bigger agency?

They have tried to stop us in every way possible. They have insulted our software, have spread some bad rumors about us, have said that we lie, have taken us to the advertising board and they have sent us legal letters. But guess what? We are still here and are growing stronger day by day with more affiliated property portals joining us. What makes us proud is that we have not once gone out and badmouth them.

We are proud of our company. We are proud of our software and service. We are proud of our staff and achievements and we will continue to develop cutting edge software, staying at least a few steps in front of our competitors. We will not sell or promise what we do not have or can not give. We will continue to “serve” our clients in the best possible way in order to improve their business in any possible way.

Groete en dankie vir jul vriendelike, professionele diens! Julle skop darem stof in P24 se oë hoor – P24 staan in jul skaduwee as dit by nasorg diens kom.Dit is lekker om met jul sagteware te werk!

Karen Dorfling - www.realtyelite.co.za

Unfortunately we cannot do much about the data feeds but we encourage you, as “real estate agencies” to stand together and show the bullies of this world that your vote also counts.

Lastly, with more than 11 property portal websites and more to come in 2008 we are providing our clients with a much bigger coverage and chance of selling their properties. Every month our page impressions and unique users are increasing. For the month of November 2007 we achieved over 4 million page impressions and 175,000 unique visitors. Our 1000+ clients are our pride!

Dear Pat

Once again I must express my total satisfaction and delight with the outstanding service we at Chas Everitt receive from your dedicated service driven team.

It seems like nothing is too much trouble and when occasionally a request cannot be fulfilled the response is always proactive and constructive with alternatives suggested.

It is absolutely no wonder that Cyberprop has grown from strength to strength over the years.

The energy and enthusiasm of your colleagues is refreshing and the passion is genuine. Service is clearly not lip service slogan on your wall but a foundation to your approach. What a credit you are to the South Africa real estate industry.

I remain a dedicated fan with very good reason - you help our business grow every day!

Andre de Villiers

Chas Everitt International

Swing to sectional title in capital city

2007-11-30T08:20:00.000+02:00

While the property market in KwaZulu-Natal capital Pietermaritzburg has experienced a general slowdown this year, there has been relatively strong demand and sales activity in the sectional title sector.

Albie Timmerman, principal of leading local agency Homenet 1st Realtors, says that in the central part of Pietermaritzburg, including Clarendon, Pelham and Scottsville, sectional title sales have yielded a high turnover in comparison to other suburbs, according to the local Residential Property Price Indicator (RPPI).

This shows that over the past year there have been some 872 sectional title sales in the greater Pietermaritzburg area, of which the central area accounts for around 282, followed by Lincoln Meade and Scottsville at 137 and 106 respectively.

“Lincoln Meade and Scottsville have performed well because of new developments taking place where property prices average between R450 000 and R650 000,” says Timmerman. “Montrose, Oak Park and Hilton have also had good upmarket development sales.”

He says the swing to sectional title properties is primarily due to the fact that they offer greater security and convenience – a lock-up-and-go lifestyle – “coupled with the fact that purchasing from a VAT-registered developer means that buyers don’t have to pay transfer duty”.

Meanwhile, he says, vacant land is selling very well in Hilton and Montrose due to the Victoria Country Club Estate and Garlington developments.

One of the more significant draw cards of Pietermaritzburg is of course the outstanding selection of schools nearby and the general environment in which to raise children.

“There is therefore a notable number of family buyers in the market,” says Timmerman, “and as a result of factors such as interest rate increases and the National Credit Act, there is currently a lot more stock on the market for them to choose from.”

ISSUED BY HOMENET
FOR MORE INFORMATION
CALL ALBIE TIMMERMAN
AT HOMENET 1ST REALTORS
ON (033) 394 5211
OR VISIT www.homenet.co.za

Caption:This upmarket townhouse complex in Wembley offers just five homes with top-class finishes for R2,55m each and no transfer duty. The homes offer three bedrooms, two bathrooms, guest toilet, study and two verandas. The complex offers a secure environment with landscaped gardens and stunning views.

Distributed by/ versprei deurThe Mega/ Press NetworkPse direct any enquiries to012-333-6644,073-946-9649 ormegw@telkomsa.net

Swellendam faces shortage of affordable housing

2007-11-23T08:43:00.000+02:00

Strong demand from lifestyle buyers in the picturesque town of Swellendam in the Western Cape has pushed property prices beyond the reach of many local buyers.

Although the new National Credit Act has put a slight damper on sales, demand from lifestyle buyers is still strong, says Laura Clack, area specialist for leading local agency Homenet Overberg.

“Swellendam, the third oldest town in SA, draws many buyers in their fifties who are looking for a quieter, country lifestyle. The town is situated at the foot of the spectacular Langeberg range and historic homes in the Cape Dutch and Victorian styles add great charm.

“But the real need is now in the affordable market and there is great scope for developers who can bring units to the market at less than R600 000,” she says.

“Developers were quick to act on the demand for lifestyle units and are buying large stands, sub-dividing them and building full-title units with security features. These units sell fast among buyers from Gauteng and Cape Town and demand is pushing up prices. For instance, a two-bedroom unit of about 130sqm that sold for R650 000 a mere 16 months ago is now valued at more than R800 000.”

Clack says most sales are taking place in the R800 000 to R1,3m range. “But clearly such prices are out of reach for many locals who are thus forced to rent accommodation.

“The new Act has further dimmed their hopes of entering the market and although rentals are low to suit their budgets, cheaper units would also create opportunities for investors who are prepared to wait for value growth.”

Clack adds that developers should consider bringing sectional title units to the market. “All property in Swellendam is currently full title and sectional title developments could lower unit costs.”

ISSUED BY HOMENET
FOR FURTHER INFORMATION CALL
LAURA CLACK AT
HOMENET OVERBERG SWELLENDAM ON
028 514 1157 OR MOBILE 0824319853OR VISIT www.homenet.co.za

Distributed by/ versprei deurThe Mega/ Press NetworkPse direct any enquiries to012-333-6644,073-946-9649 ormegw@telkomsa.net

NEWS FROM ANNE PORTER KNIGHT FRANK

2007-11-20T12:42:00.000+02:00

“DESIGNBOOST” TEAM UP WITH ANNE PORTER KNIGHT FRANK

Anne Porter Knight Frank have teamed up with a new Cape Town company, designboost, to offer their clients a professional home staging service prior to their putting their home up for sale.

designboost is run by Michelle Treacy and Di Synott, both of whom studied Home Staging in the UK - from where they are still advised by their mentor.

“The underlying philosophy of the designboost approach,” said Lanice Steward, MD of Anne Porter Knight Frank, “is quite simple: anyone who has lived in a home for some time has probably lost the ability to see clearly how it can be significantly improved with relatively few, probably inexpensive changes. designboost will, in most cases, find ways to de-clutter, brighten, simplify and “depersonalise” the home interior so as to accentuate its positive aspects. Décors are neutralised and the furniture and accessories are arranged to appeal to a wider, more general audience.”

In most designboost contracts, said Steward, the company works with the client on the furnishings and accessories, but where a radically new look is considered necessary they can draw on a wide variety of rented furniture and furnishings to be placed in the home throughout the sales period.

If appointed, the designboost team will give the client a comprehensive consultation, the fees for which are based on the size of the home (e.g. R780 for a 300m2 home).

After discussion with the client, he decides whether to carry the transformation himself or, as is more usually the case, appoint the designboost team to move in and project manage the task, working within an agreed budget.

The budget can be as low as a few thousand rand or can involve a total refurbishment and makeover but, Steward has stressed, the improved value of the home will always far outstrip any sums spent in this way. In the UK, said Steward, Home Staging operators claim to increase average values between 5% and 25% on any home where they are employed.

Clients can, if they so wish, use the designboost photo consultancy service, which allows them to photograph each room (in a way specified by the consultants) and send the pictures by email to designboost for comment.

“We have in several press releases stressed the value of preparing the home adequately for prospective buyers,” said Steward, “but it is clear to me that until now we have never really done this as professionally as it should be done. With designboost assisting our clients, I do see their service making a huge difference to Anne Porter Knight Frank’s sales prices.”

Footnote: APKF receive no commission from designboost: APKF, says Steward, see this service purely as a means of improving sales prices and as a service to clients.

For further information contact Lanice Steward on 021 671 9120 or email lanice@anneporter.co.za.

NEWS FROM ANNE PORTER KNIGHT FRANK

2007-11-15T13:02:00.000+02:00

ANNE PORTER STOKE UP A “GAIL FORCE” FOR WYNBERG AREA

A “Gail force” wind is likely to blow through the Wynberg residential property world in the next few months.

This, Anne Porter Knight Frank are predicting, will come about as a result of their recruiting another “Gail” – Gail Turner – to join Gail Cawood who has served the Wynberg area loyally for APKF for two years.

Gail Turner had four years with Anne Porter before moving elsewhere for three years. She is now back and, says Lanice Steward, MD of APKF, “We are delighted to have her with us again.”

Steward said that figures from the Deeds Office indicate that residential property sales in Wynberg over the last twelve months have been close to R350 million.

“This has become a large and increasingly successful market. Despite the proliferation of affordable sectional title projects in the area, the average house price is now close to R1 million and prices here are rising annually.”

Over the past year, says Steward, Gail Cawood has, despite the interest rate increases and the National Credit Act, achieved an average sales rate of two units per month and has been the sole agent on the attractive Georgian development on the old synagogue site.

“With two APKF Gails now in the territory we have set our sights on cornering 7,5% of the market,” said Steward.

For further information contact Lanice Steward on 021 671 9120 or email lanice@anneporter.co.za.

Makeover apartments sell well

2007-11-09T08:25:00.000+02:00

There is significant potential for developers in the refurbishment and upgrade of older apartment buildings, while for buyers they offer a solution to the problem of housing affordability.

A classic example is a circa 1950s development in Beyers Park on the East Rand which has been brought to the market by the original owners, a syndicate established decades ago.

In the space of five months 40 units have been sold at prices ranging from R560 000 to R590 000 for units that average 100sqm in size.

Homenet George Rennie, which has the mandate for the two blocks, says prices for comparable, recently-built units would be at least 10% to 15% more. Alternatively the same pricing would buy a unit of about 65sqm to 70sqm at today’s building costs.

Lance van Heerden of Homenet George Rennie says the ideal formula for developments of this nature is well built, low maintenance structures close to all amenities and with full security.

In that sense Edelhurst and Sandhurst, the two blocks in question, fit the profile ideally he points out.

The blocks are U shaped and are set in spacious gardens. They were sectionalised in 1994. A typical unit comprises lounge, separate dining room, kitchen, double lock up garages, two bedrooms and two bathrooms.

“In today’s terms this is a lot of accommodation for the price, notwithstanding the need for a degree of refurbishment.

“Position wise the blocks lie roughly equidistant between the Lakeside Mall and the East Rand Mall, they are close to all the other important amenities and offer easy access to the N12 highway.

“Interestingly about 65% of the buyers have been investors and there is a thriving demand from tenants as well as a strong likelihood of capital appreciation although to date, no re-sales have been made, indicating that investors see this as a medium to long term prospect. The buyer mix is also worthy of note, ranging from young couples right through to retirees.

“Clearly developments such as these, to be found in all the major centers, fulfill a distinct need.”

ISSUED BY HOMENET
FOR MORE INFORMATION
CALL Lance van Heerden
HOMENET George Rennie
011 425 0020www.homenet.co.za

Distributed by/ versprei deurThe Mega/ Press NetworkPse direct any enquiries to012-333-6644,073-946-9649 ormegw@telkomsa.net

Some hot property options in PE

2007-11-02T08:26:00.000+02:00

Investors are currently clamouring to purchase property in Port Elizabeth, but whether buyers can properly identify an investment property is a debatable point.

“An investment home must have capital growth and rental return potential to qualify,” says Mike Thomas, principal of Homenet Windmill, which specialises in investment property.

Among the current best areas to buy investment homes, he says, is Algoa Park and The Hague development here is worth a serious look. “Here homes are selling for an incredible R468 000, which includes a garage and an under counter oven/ hob. This complex is in great demand by investors and tenants alike, and my personal choice as the best investment property in Port Elizabeth,” says Thomas.

Other hot investment areas in Port Elizabeth are the western suburbs. “A popular development is Chade Manor, a mixed-use scheme in Bridgemead, which has been selling like hotcakes. Other popular purchase options for locals in Port Elizabeth are plots being sold off plan.”

Despite interest rate hikes recently, Thomas believes that the best time to purchase an investment home is now. “Because it is currently a buyers’ market, homes are selling for lower than usual and there are some great deals out there for those who are willing to take the leap before the market changes next year.

“If the home offers what tenants want and the price is right, then you can expect to make a good rental return. In the same vein, if the price is right and you keep it for a while you could also expect to make a good capital return when you sell it,” he says.

“But, in order to be 100% sure of an investment property you need to work with an agent that you trust, preferably one that specialises in investment properties. Together you should identify your price range, the term for which you would like to hold the property, and the amount you would be prepared to pay to subsidise your monthly payment. This formula should ensure that you are successful.”

ISSUED BY HOMENET
FOR MORE INFORMATION
CONTACT MIKE THOMAS
ON 041 364 0593 / 082 7677 498OR info@homenetwindmill.com

Distributed by/ versprei deurThe Mega/ Press NetworkPse direct any enquiries to012-333-6644,073-946-9649 ormegw@telkomsa.net

Promising future for sought-after Hilton

2007-10-25T10:14:00.000+02:00

The demand for KwaZulu-Natal Midlands property remains high among both investors and “lifestyle” buyers, and as several exclusive estates in the Hilton area come to fruition, sales are taking place at a feverish pace.

Says Andrew Line, principal of leading local agency Homenet Hilton: “The interest in this lovely village continues to amaze me, with folk flocking here from both the coast and Gauteng to take a step back and enjoy a healthy lifestyle.”

The Garlington Estate development in Hilton, for example, is now basically sold out with the gatehouse and first few homes currently under construction. Construction on the estate’s communal facilities including a gym, swimming pool, tennis courts and an indoor pool will all commence at the beginning of next year (2008).

However, there are exciting future development prospects for the Midlands area according to Line, who notes that a large consortium of investors has purchased two properties with the intention of developing them.

“The first project will be Toscana Ridge, a 450 unit development in the heart of Hilton, while the other will be on a large property in Howick with panoramic dam and mountain views.”

With few development opportunities left in Hilton, one with 20 units approved and another with a possible 24 units have attracted incredible interest from developers. “Vacant land is in high demand with not a lot on offer at present,” Line notes.

Although the National Credit Act has brought its challenges, he says that the property investor is still very much in evidence in Hilton. “Our most popular price range is still under the R1m mark, but the average selling price is now R1,25m for an average suburban home on 2000sqm stand, and any property in great condition will sell easily even in the R5m price bracket.”

The Midlands is also a haven for retirees and Line says that units in retirement complexes in the region are still selling fast with purchasers prepared to wait until 2009 for occupation.

More….

Homhilto 2 last

However, he cautions that buyers in any Midlands estate should be sure they know exactly what they’re getting.

“It’s imperative that prospective buyers select quality developments from credible developers. Some of the more sophisticated developments have very strict rules upfront, and these are generally the ones that have had a lot of thought put into them. Invariably these are the developers who are able to offer buyers the most successful property investments.”

ISSUED BY HOMENET
FOR MORE INFORMATION
CONTACT ANDREW LINE
ON 033 343 3345OR info@homenet-hilton.co.za

Distributed by/ versprei deurThe Mega/ Press NetworkPse direct any enquiries to012-333-6644,073-946-9649 ormegw@telkomsa.net

Buy-to-let lively in Grahamstown

2007-10-18T15:23:00.000+02:00

Demand is high for student accommodation in Grahamstown in the Eastern Cape and investors are snapping up suitable properties.

“The area is home to approximately 125 000 people with more than 6000 of them being university students”, says Jonathan Pepler, principal of the newly opened Homenet Grahamstown office.

“This is due, of course, to the location of leading tertiary educational institutions such as Rhodes University and Eastcape Midlands College in the town – and it has created great opportunities for buy-to-let investors.”

However, Pepler says, rental properties in Grahamstown are currently scarce and relatively expensive. “There are not a lot of flats to be had and townhouses range in price from around R700 000 to R1,5m.

“Meanwhile three-bedroom houses which might previously have been let out for around R5000/month are now fetching around R10 000/month, due to the number of students that can be accommodated and the shared rental opportunity.”

Not surprisingly, Pepler says, the greatest demand for property in Grahamstown at the moment is for homes priced between R500 000 and R800 000. However he adds that there are also properties on the market priced at between R3m and R6m, “so the market is diverse and can cater for a wide range of buyer profiles”.

As is the case in many property markets across SA, Grahamstown has in the past year suffered from overpricing and homes sticking in the market for long periods. “However, the market is starting to correct itself as sellers realise the advantages of pricing correctly and achieving faster sales,” Pepler says.

ISSUED BY HOMENET

FOR MORE INFORMATION

CONTACT JONATHAN PEPLER

ON (045) 838 2560

OR homenetgtown@yahoo.com

Distributed by/ versprei deur
The Mega/ Press Network
Pse direct any enquiries to
012-333-6644,
073-946-9649 or
megw@telkomsa.net

10 Tips for Stashing Your Electronics

2007-10-05T08:26:00.000+02:00

Protect your gear when you move

You've spent years collecting and connecting your electrical appliance, your TV and your VCR. And if you've recently reached into your wallet to invest in a DVD player, stereo or other expensive electronic device, packing is certainly not the time to take shortcuts. Protect your investment and follow these top 10 tips.

1. Follow manufacturers' advice for packing and storing. They know the most about what it takes to protect the product. Consult the homeowner's manual or manufacturer's Web site for details.

2. If possible, save the original boxes and packing materials for re-packing. Otherwise, you won't find packing materials that fit as well.

3. If the original packing is not available, start with these essentials: sturdy cartons, newsprint for wrapping things up, tape, scissors and felt tip markers to number and label each box.
4. When you disassemble electronics, such as computers, stereos and other devices that have numerous cords, place small coloured stickers on each cord and the same colour sticker where the cord connects to the device. This will save you the hassle of trying to figure out what goes where when it comes time to reassemble your electronics.

5. Sensitive electronics such as computers and TVs may need to be stored in climate-controlled units. Seek advice from the manufacturer or your storage facility.

6. To reduce the chance of attracting unwanted attention from potential thieves, place small expensive items such as stereo equipment, TVs and camcorders in unmarked boxes. At your storage facility, you can place these items out of view towards the back of the storage unit.

7. To minimize damage caused by dust inside electronic devices, wrap electronics in linens or clean paper.

8. Seal boxes completely with packing tape to keep out the dust.

9. For further protection, cover electronics with moving pads, sheets or light blankets.

10. Make a list of the components in each box. With luck you'll be putting all this back together—make sure you've got all the parts before you start assembling.

Embracing foreign land ownership

2007-09-21T09:30:00.000+02:00

SA should embrace foreign land ownership – with conditional love,says Engel & Völkers SA.

The Report by the Panel of Experts on the Development of Policy on the Regulation of Ownership of Land in South Africa by Foreigners isshort-sighted in asking for an immediate moratorium on foreign ownership of South African property, says Niël Cronje, CEO of Engel &Völkers South Africa. “It would be extremely rash to make such a decision, when the Panel itself cannot quantify to what degreeforeign nationals own property in South Africa. Without real statistical support, which the panel admits it is lacking –implementing such a moratorium is going to send a destructive message to foreign investors, something that the country can ill afford rightnow,” he says.

Cronje suggests a proactive approach to the dilemmas faced by the Panel, with some thought given to the impact of a propertytransaction beyond the simple deal between the seller and buyer.

While Cronje agrees that environmentally protected areas, and sites earmarked for redistribution or restitution should not be open forsale to foreign entities, he suggests that the Panel suggest a proactive approach, similar to that taken by the Australiangovernment. “In Australia, foreigners can not buy second hand properties – they can only buy newly developed properties,effectively encouraging development, and boosting the construction industry, creating employment.

“Looking to Switzerland, foreign nationals have been able to purchase property in limited areas, but from 2008, this will be stopped. Theimpact on an economy as strong as the Swiss one has been significant, and South Africa needs to learn from that.

“A South African seller will most likely invest the money he makes on a property back into the South African economy one way or another –whether its by buying another property or by ploughing that money into business,” Cronje says. “Thanks to exchange controls, he can’tsend the profits from a sale abroad – he is compelled to convert the foreign currency paid by a buyer from abroad into local capital. Isthis not a positive effect for our economy?

”While many foreign buyers purchase properties in South Africa to have a holiday home (which in itself creates employment opportunities forrental agencies, maintenance and cleaning staff), the value that a foreign businessman brings into the mix cannot be discounted. “Engel& Völkers South Africa’s Chairman, Mathias Bode, came to South Africa from Germany five years ago. In those five years, he has bought one South African property, started three businesses, and created employment for hundreds of people. It’s this kind of confidence inthe economy that we need from foreign investors, and we need to welcome them here by treating them with the same respect that wewould our own entrepreneurs,” Cronje continues.

“The debate on this issue has been generated and has thrived on pure speculation, and now, three years since it was constituted, the Panelhas come up with few effective or constructive suggestions on how to deal with the matter. The whole topic remains conjecture, as there isstill no real research into the extent of foreign land ownership, with the estimated 1% of foreign ownership of South Africanproperties surely not having an impact on the availability of land for mass housing development, as most of them are likely to be inalready developed, established suburbs. While requesting demographic information in transfer documents for issues such as gender, race,identity and passport numbers will be an effective method of gathering information into the future, it can not be used to make adecision now. And a decision is what the industry needs – we’ve already waited three years for this report, which is stillinconclusive,” Cronje concludes.

Distributed by Engel & Völkers South Africa
For further information please contact:
Celeste BeltchevRelationship Manager012 346 7777

Relief on the way for Empangeni buyers

2007-09-14T09:18:00.000+02:00

The housing shortage in the northern KwaZulu-Natal town of Empangeni should soon be a thing of the past, as several large residential developments on farmland surrounding the town are now well past the planning stages.

“The increased need for secure cluster or complex type living has attracted new developers and there are a number of medium to high-density housing developments already under way,” says Lionel Foster, owner of leading local estate agency Homenet Fosprops.

Around 70% of buyers in Empangeni are locals who are either upgrading their existing property investments or starting out on the first rung of the property ownership ladder, with the balance being buyers who have identified the town as a growing economic area, he says.

“And the increased demand for affordable housing by entry-level buyers is forcing prices to level off, which is speeding up sales.

“Currently, prices for homes within secure complexes start at around R330 000 for a bachelor apartment and range up to around R800 000 for an upmarket three-bedroom townhouse.

“Freehold house prices vary according to area and size and range from around R520 000 for a two-bedroom home to R1, 7m for an executive home in a good area. The fastest moving properties are those priced between R800 000 and R900 000.”

Initially a small sugar cane farming centre, Empangeni then became the springboard for the development of the neighbouring port of Richards Bay – one of the busiest ports in southern Africa with a major industrial area.

Now it is also well-known as a birders’ paradise and for its proximity to tourist attractions such as the beaches of Richards Bay, Mtunzini and Mapelane, the Greater St Lucia Wetlands Park (a World Heritage site), and the Hluhluwe and Mkhuze game reserves as well as several private game reserves and game farms.

ISSUED BY HOMENET
FOR MORE INFORMATION
CALL LIONEL FOSTER
AT HOMENET FOSPROPS ON
035 772 4011
OR VISIT www.homenet.co.za

2007-09-06T13:37:00.000+02:00

Renovators put a new face on Cambridge

The East London neighbourhood of Cambridge is getting a facelift as an increasing number of homebuyers acquire properties to renovate and resell at a profit.

Liza Wright, area specialist for Homenet Mercantile, says about 3% of all property sold in East London is in the Cambridge and Cambridge West areas, according to deeds office figures, and adds that there is steady demand because the areas offer a wide range of properties and are centrally located close to good schools, shopping centres,and other amenities.

“The distinct difference between Cambridge and other centrally located suburbs is that by comparison properties are more affordable, even though prices have increased in line with other parts of East London.

“Prices in Cambridge and Cambridge West now start at about R550 000 and go up to around R950 000, with the occasional home selling for over R1m. However, most buyers who could afford a home over R1m would probably choose another area.”

There is currently a certain amount of new development taking place in Cambridge and Cambridge West, but only where there is vacant land, and Wright says there are only small pockets available.

“Small townhouse developments are starting to pop up in the area, but these are only financially viable for buyers if the developer is able to purchase the land at a reasonable price. Meanwhile subdivision of large plots is an emerging trend.”

She cautions that while it is obviously still possible to purchase older properties in Cambridge, fix them up and resell for a profit, buyers need to be careful to secure the home initially at a good price.

“They should then make sure that the renovations are not too extensive or expensive so that the eventual resale price will be market-related and within the ceiling price for Cambridge.”

Wright says fixer-up buyers must also take into account the “hidden costs” of buying and selling again quickly, including transfer and bond costs, commission to the agent to resell, bond cancellation costs, and capital gains tax, as well as bond repayments while the property is being renovated and marketed.

ISSUED BY HOMENET
FOR MORE INFORMATION
CALL ANN COETZEE
AT HOMENET MERCANTILE
ON (043) 722 3888
OR VISIT www.homenet.co.za

Show your house in the right light

2007-08-24T08:58:00.000+02:00

If you're getting ready to put your house on the market you're probably busy painting some of the dingy walls, shampooing your carpet, and clearing the clutter. But be sure you add something else to your list—strategic lighting.

With the right lighting, the look of a room can turn from mediocre to sensational, making it look bigger, airier and more desirable.

The right lighting can enhance your skin tone, allow you to see what you're doing, draw attention to focal points in your décor, and make a big difference in how you feel about your home. And best of all, it's inexpensive compared to other home decorating or remodelling options.

Lighting experts tell us there are three types of lighting: general, which gives overall light to an area and allows for safe function in your home; accent, which highlights and draws special attention to details; and task, which helps you to perform tasks.

Ambient light is a hidden source of light that washes a room with a glow. Aesthetic lighting itself can be a work of art, such as a neon sculpture. Natural light, (sunlight, candlelight and firelight) is light that moves. Quality of natural light, sunlight in particular, depends on many things such as time of day, the weather, and what season it is.

Lighting can also play tricks on the mind and enhance or minimize the physical size of the room. Please note “that if a room is too tall, low luminaries that don't allow light out the top help shorten high ceilings; if a room is too small, visually push one wall open by washing it with light; and if a room is too wide, illuminate the narrow ends of the room”. Conversely, if a room is too narrow, illuminate the wide sides of the room.

Take a look at how you can improve your lighting and attract buyers, room by room:

Any room: Use high-hats or recessed down-lights installed in ceilings with a dimmer control.

Bedroom: In addition to above, add a floor lamp or table lamp and bedside lights for reading.

Bathroom: Angle recessed lighting to bounce light off the walls and ceiling and help reduce glare and shadow. Use wall-mounted sconces or over-vanity lights beside the mirror. Light your shower's interior with uniform brightness.

Kitchen: Task lighting is required here. Group down-lights to focus more light on particular areas.

Today's decorative lamps and fixtures do more than illuminate. You can choose from decorative sconces, chandeliers, and table and floor lamps in a variety of shapes, styles and finishes that take a room from drab to dramatic with the flick of a switch.

"Now, no matter which room a prospective buyer walks into, it will be lit brightly," "And the lighting fixture itself will be modern and attractive."

So once you've added a few strategic lamps and fixtures throughout your house don't leave potential buyers in the dark. Be sure to turn on all the lights before you leave your house in the morning —you never know when your house may be shown to those potential buyers. Look on the bright side

The Editor

www.cyberprop.com

Avoiding 7 Costly Mistakes of Selling Your Home

2007-08-17T09:09:00.000+02:00

There are plenty of pitfalls before you seal the deal

There are always appropriate steps to investing in real estate and hopefully, you've garnered many of them right on these pages. However, there are also inappropriate steps sellers can walk down when it comes time to put their house on the market.

The Seven Costly Mistakes

Mistake 1: Putting the home on the market before it's ready. Most times this happens because the seller gets impatient or is a procrastinator and has pushed himself up against a moving deadline without getting the pre-sale work done. So it comes on the market with the horrible carpet (that gets replaced during the marketing of the home); or they are still painting it while it goes on the market. Presentation is everything -- so get the work done before marketing the property.

Mistake 2: Over improving the home for the area. This happens with additions, bump outs, and upgrades that make the home stick out from among its competitors, instead of a nice addition to the community.

Mistake 3: Pricing the home based on what the seller wants to net. This pricing strategy always ends in failure. Sellers can control the "asking" price, but they don't control the "sales" price. The market does. It doesn't matter what the seller wants, the price is determined by the black-and-white, matter-of-fact reality of the market.

Mistake 4: Hiring an agent based on non-business factors. Make sure you're hiring a professional with a proven track record. It might be nice to hand over your largest asset to your nephew who just got his license -- but make sure he has a mentor to keep your deal from going south.

Mistake 5: Getting emotionally involved in the sale of the home. This is one of the biggest challenges home sellers face when putting their house on the market. Once you decide to sell your house, it's no longer a home, but a commodity. It needs to be prepared as a commodity, marketed as a commodity, and priced as a commodity. It doesn't matter what you "want," only what the market can bear on pricing. People are going to come in to kick the tires, so to speak, and you can't get emotional about how they may or may not appreciate the condition of your home of seven years.

Mistake 6: Trying to cover up problems, or not disclosing them. Most states have a property disclosure/disclaimer form -- use it wisely. Just because you disclaim doesn't mean you cannot be sued later for the leaky basement, or dilapidated heating/air system that's discovered 30 days after settlement.

Mistake 7: Not getting your ducks lined up before trying to sell. This would involve financing, reading the fine print on your current mortgage to ensure no pre-payment penalties, not listening to the particulars of your local market, etc. If your local market is dictating lower home prices, then lower it early, not later -- it will cost you more. If the local market dictates selling your home first, then buying second, do it in that order, or vice versa.

Avoiding these mistakes is not that difficult. There are plenty of resources and professionals, who are there to help you step over the pitfalls. Do the research early, and listen to that voice in your head (it's probably the whispers of the finance, real estate, insurance person who's warning you of a hole you're about to step into). Sell well.

The Editor
Cyberprop

http://www.cyberprop.com/

Iron ore mining boosts Kalahari property demand

2007-08-02T15:42:00.000+02:00

Property prices in Kalahari towns have grown exponentially thanks to increasing iron ore mining activity in the region.

In some instances prices have more than quadrupled in the past two years, says Gerrit Vos, co-owner of the Aida franchise in Kuruman, which also has offices in Kathu, Olifantshoek and Postmasburg.

“The whole region has benefited hugely by increased mining activities at the Kumba and Khumani mines. Prices in Olifantshoek and Kathu especially have grown phenomenally, albeit off a low base.

“Properties that would have sold at R150 000 in Olifantshoek and R250 000 in Kathu two years ago now sell at around R650 000 and R750 000,” he says.

“The market is being underpinned by demand that outstrips supply. Rental accommodation needed for contractors at the mines has created lucrative investment opportunities – rentals of up to R16 000 a month for four-bedroom homes are not uncommon.

“It is unlikely that rentals at these levels will be sustained for more than a year or two, but property values are unlikely to decline. At most, they are expected to move sideways,” Vos says.

Local authorities are currently upgrading infrastructure to supply services such as electricity and sewerage to new residential areas. In Kathu, where 380 stands at a new golf estate were snapped up recently, another 730 stands are expected to be released by the middle of next year when services to the site have been completed. Vos expects brisk demand for these stands.

The buoyant residential sector has also stimulated commercial development, with a new shopping complex planned for Kathu. A national food chain has been signed up as anchor tenant and several other chains, such as clothing stores, will be represented.

ISSUED BY AIDA NATIONAL FRANCHISES
AIDA HEAD OFFICE: 012 682 9600
CONTACT: JAN DAVEL
AIDA KURUMAN: 082 801 1844
CONTACT: GERRIT VOS

megw@telkomsa.net

Which Repairs Should You Make Before the Sale?

2007-07-27T08:58:00.000+02:00

Make slight improvements but don't go too far

If you're preparing to place your home on the market, it's inevitable that you'll need a couple of minor repairs and slight improvements before your broker can drive a "For Sale" sign into your front yard.

Practical and aesthetic projects like a fresh coat of paint drain neither time nor money and can make your home more attractive while perhaps speeding your sale.

But what if a larger item needs repair, something which doesn't jeopardize anyone's health or safety—a problem of the "out of sight, out of mind" variety. Should you simply disclose it and leave the buyer to deal with the problem? Or should you fix it before placing your home on the market?

Before you make any decisions, consider that repairing the problem yourself could result in a potentially higher sales price for you. What sweet music it is to any buyer's ears to hear the terms "new" or "just replaced" as they walk through a home.

"If your house is in move-in condition, it will appeal to a wider group of prospective home buyers. First-time home buyers, and buyers with busy lifestyles, often will not consider buying a home that needs a lot of work. That is because they do not have the time or the experience to deal with the problems.

Another point to consider: Many if not most home sales today include the use of a home inspection clause. Depending on how it's written, this clause can allow buyers to terminate a contract if the inspection is not "satisfactory" to them or if certain repairs are not completed.

According to the online legal resource Nolo.com, buyers often have the opportunity with a proper inspection clause to effectively re-open negotiations by either asking the owner to undertake repairs.

Another result of an unhappy inspection works like this: The buyer asks for a discount—sometimes a very ambitious discount based on an inflated view of repair costs.

When considering minor aesthetic improvements, your decision should depend on local market conditions. Your broker can suggest what's needed to be competitive and perhaps what's not. In a hot market you may need to do nothing, while in a buyer's market your list of repairs and upgrades may be extensive.

While not fixing up is a problem, fixing up too much—over-improving—is also an issue. The usual rule for buyers is that they purchase the least expensive home in the most expensive places they can afford. The result is that a house with too many improvements may be priced at the top of the local market, not the best place to be from a selling standpoint.

The moral of the story: You have an obligation to repair or at least inform buyers regarding health and safety hazards. For their protection—and to guard against unwarranted future claims against you—buyers should get a home inspection.

No less important, the longer a home languishes in the marketplace, the more likely it is to fetch a lower price. Thus fixing up is not only good for buyers; it also may lead to a quicker sale—something beneficial for owners.

"If homes look sharp and are priced right, more than one buyer may make an offer. When multiple offers occur, the price may get bid up. Even if there are not multiple offers, experience has shown that a house that is in good condition will sell more quickly than one that needs work. A quick sale often means that the sales price will be close to the list price."

The Editor
www.cyberprop.com

Editorials - Online Marketing for the Real Estate Agent

2007-07-20T09:58:00.000+02:00

Introduction

One of the biggest challenges for any marketer is to understand how online marketing works,
and then using their extensive marketing knowledge to their benefit in the Internet environment. The Internet is alive with different people, opinions and different communities. I have a friend in the UK, which I have never met in person. We are great friends that share almost everything with each other on forums and MSN chat. I was even invited to his wedding a year ago.

To many people the Internet are networks of computers that are linked to each other. Although in theory this is correct the actual Internet consist out of people. The people are driving the Internet and makes use of its diverse possibilities to run businesses, communicate and share information. The Internet is a society, not just a network of computers and certainly not just a place to put up a few billboards. This realization will make a huge change in the way you approach your online business.

Editorial marketing explained

Editorial marketing for the Internet is different in that it needs to attract attention for scan readers. More and more Internet users are becoming scan readers as the quantity of information requires readers to make a quick assessment on the value that an editorial offers them. You need to grab the attention of the reader fast or you will loose them.

From a marketing perspective there are a couple of benefits for the author of an editorial.

You earn respect as being knowledgeable in your area of expertise.

You build your brand as people become familiar with your name and/or business name.

Improved retention as readers return to your website more and more to read your latest
editorial.

Free referrals as people send your editorials or links to your editorials to one another.

You can launch promotions, press releases and new products easily.

You build a database of subscribers.

The power of “Word of mouth”

I remember reading in a US article a while back that the majority of business in the real estate industry comes from word. Ironically it is also true for the Internet.

In 1996 Sabeer Bhatia and Jack Smith started an Internet based email system to be able to sent email to one another without using their monitored company email systems. With only friends referring each other to their email system they had over 20,000 subscribers within one month after launching and after 18 months they had over 12 million subscribers!

There is an ad campaign running at the moment about compounded interest. Making use of editorial campaigns can be compared to compounded interest. You write one editorial that is visible to millions of visitors for as long as it is live on the internet. Added to that you can make use of friends referring each other to that editorial for the life of that editorial without spending any additional money on marketing. That is the power of content on the Internet!

The basics of writing on the Internet

First you need to consider as stated before that the Internet reader are a scanning reader. This is one of the basic reasons why I propose a format that consist out of short and chunky paragraphs.

Using the opening paragraph for the end result is also a very effective writing method. It grasps the attention or else you would loose the reader. This paragraph must create the need and hunger for more information.

Use bullets, bold and link text to make it easier for the scan reader to pick up key points. In terms of linking references it also makes your content factual and trust worthy if you reference important facts with the sources of that information.

Choose powerful headings for your content. It is also advised to use free resources like digitalpoint.com to do keyword research before writing content as this will give you a good idea of what keywords people are interested in at that time.

Use hot words

A lot of research has been done around writing content for the web. The use of hot words is one of the facts that are being used widely on the web to increase sales and retention. Here are some of these hot words:

New
True
Authority
Sexual
Guaranteed
Bonus
First
Quick
Now
Fast
Free

And the hottest of them all is the word “You”.

Making use of the network

I heard this phrase once from an estate agent in Plettenberg Bay, “Somewhere someone knows someone that wants to buy or sell a property, and I want that someone to know about me!” This phrase sounded like poetry at the moment I heard it, but the more I thought about it the more sense it made. The Internet with all its social discussions and communities ensure a rich resource of referrals. Making use of news and article syndicates can ensure that your editorials are displayed on thousands of websites making the Return on your time investment even better.
By Roelof Vermeulen for CyberAgent.co.za

Helping Your Children Move

2007-07-13T08:55:00.000+02:00

Turning a move into an adventure that can help your children cope

Although relocating can be one of life's challenges, it is also an adventure. By guiding your child through this experience with knowledge and patience, the transition can be a piece of cake!

The home you are moving from may be the only one your child has ever known. There's a sense of familiarity there, not only with the house, but everything around it. The area, friends, parks, and schools will soon no longer exist for them. That's why moving can be troubling for children. But if parents understand what their child's concerns and needs are, a lot of distress can be avoided.

What are your kids concerned about?

Preschool children tend to worry about being left behind or separated from their parents.

Children aged 6 to 12 can be concerned with how their daily routines will be affected.

Teenagers are concerned primarily with fitting in and having their social life disrupted.

Ideas for easing their concerns include: Communicate with your child about what the new house will be like. Take them on a visit of the new home and the area, but if you can't, take lots of pictures or videotape it to make them feel more comfortable with their future surroundings.

Get information on the schools and childcare available in your area. If you can, visit the school with your child and meet some of the teachers.

Try to get your child involved in the moving process. Have them pack some of their own special belongings, and decorate the box with stickers and markers. Be sure to keep this box close at hand during the move.

Make plans together on how to decorate their new room. You may want to leave their surroundings the same, but this could also be a great time for change. Maybe let them pick a colour of paint for their new room or a new bed set.

Ask your child what some of the favourite things are and have them present at the new house.
Most kids will have lots of questions: Answer them in a positive way and try to understand their fears. Focus on things for them to look forward to, like a first snow or their own room!

Starting over in a new place is never easy. If possible, find pen pals in the new location before you move so your child will have someone to interact with and learn about the area.

Leaving friends behind may be one of the hardest things your child has to do. Throw a going away party with their friends and take lots of pictures to make a nice memorable photo album for them to look back on. Give them a stationary set or pre-stamped post cards so they can stay in touch with friends, too.

Just think, when you relieve the stress your children are feeling, you reduce your own stress and are able to focus more on other aspects of your move!

The Editor
Cyberprop

www.cyberprop.com

Buy or Sell First?

2007-07-06T09:29:00.000+02:00

The chicken-and-egg question

For homeowners aiming to sell their home and buy another, it's the classic real estate, which came first, the chicken or the egg, question -- buy or sell first?

If you sell first, you may find yourself under a tight deadline to find another house, or be forced in temporary apartment. If you buy first, you may be saddled with two mortgage payments for at least a couple months. You may need the money from the sale of your original home in order to pre-qualify for a loan for your new home. You may be facing a job relocation and need to sell quickly.

There are many variables involved; there is no universal correct answer. It basically comes down to your specific circumstances.

"It all comes down to risk.”It's whether you want the risk of owning two houses, or possibly none at all."

If you have the money to make two mortgage payments, the pressure is off. But if you need to sell your house in order to qualify for a loan, then you have no choice -- you'll have to sell first.
And if you go ahead with a contingent offer, then you may end up settling for less for the house you're selling in an effort to get it sold quickly.

"You have time to get pre-approved for your mortgage and see all the housing options in the price range you'd like to buy,"
When selling a house is in contract, he suggests you pick the three best homes of those you've viewed and prepare to make an offer on the one that best meets your needs.

The absolute worst that can happen is the right home isn't available; you will end up in a short-term rental with the cash in your pocket and pre-approved financing for the balance you need. So you look like a cash buyer when you make an offer on the home you finally decide on.

Even in good real estate markets, sales frequently drag on much longer than you expect, Selling in a weak market usually compounds the problem. Homeowners tend to overestimate their house's resale value and underestimate the length of the selling process.

Selling first eliminates financial risk -- no double mortgages and double payments for property taxes and insurance payments. And no worrying about how you'll come up with a down payment. The strong market dictates that homebuyers focus on buying first and selling later. There is generally less pressure when you sell first.

But selling first isn't the perfect solution. Some of the issues that may come up include:

· Being forced out of your house before you have a new place available. Where will you live? Where will your kids go to school?
· Having to move twice. Do you want to go through the hassle? Where will you store your extra furniture while you live with family and friends or rent an apartment?
· Not being able to find a house you like. How long are you willing to live in temporary apartment until you find a suitable house?

Whichever way you go, it always seems to work out in the end.

The Editor
Dineo

www.cyberprop.com

How to Pack

2007-06-22T10:05:00.000+02:00

Add method to the madness with these packing tipsYou can make packing your things a lot easier with these simple techniques:

Use the proper packing materials. It will pay off in the long run! Sturdy boxes, packing tape, bubble wrap can all be purchased at local moving or shipping companies. Wardrobe boxes and other specialty boxes can be found there too. Sturdy boxes can also be retrieved from wholesale companies, at no charge, after a shipment. Other great types of reasonably priced padding for your boxes include wadded-up newspaper, old pillows and blankets.

The following is a list of tools and materials to make your packing go more smoothly:

• Razor knife and/or scissors
• Note pad
• Dark, water-resistant marker
• Boxes of all sizes
• Packing tape
• Bubble wrap

Pack one room at a time, labelling each box appropriately (on top and side) with a description of its contents and which room the box belongs in. Also label boxes containing breakable or sentimental items with "Fragile." Keep a detailed list of what items are packed in each box to make unpacking easier.

Empty all drawers of breakable or spill able items. To safeguard against unnecessary damage, it's a good idea to put all furniture knobs, feet, screws, etc. in one container that you can keep with you so the parts won't get lost.

Do not pack flammable goods or heat-sensitive items like candles, records, audio and video tapes, computer disks, propane tanks, aerosol cans, oil-based paints, and certain cleaning fluids.
Wrap items individually and always place a layer of crushed paper in the bottom of the carton for cushioning. Fill empty spaces with additional crushed paper.

Make sure cartons are firmly packed, with heavier items on bottom and lighter ones on top.
Pack according to the season if you'll be putting some boxes in storage. Mark the boxes accordingly Put heavy items in small boxes so that they're easier to carry.

Make sure the items you'll need first are loaded in last when packing the truck. You'll make access easier for the things you need (i.e. Children’s toys, kitchen items, telephone and radio).
Use common sense when loading your truck by keeping in mind the size, sturdiness, and weight of your boxes.

Plan ahead for what you'll need the first day after your move. Packing a separate bag with your toiletries, a change of clothes, etc. will prevent unnecessary scrambling or a run to the local store.

The Editor
Dineo
www.cyberprop.com

Online Marketing for the estate agent

2007-06-19T14:20:00.000+02:00

Introduction

If you are making a living as an estate agent you can be proud to be one of a few of the elite in a very challenging industry. It is no secret that only the best succeed in this very challenging industry.

Therefore when I first set out thinking on how to write this I had to understand that I was dealing with marketing professionals. The online industry are however very different and many top marketers are struggling to find their footing in this industry. However it is in most cases totally unnecessary as it is an industry that makes sense and is much easier to track statistically than the conventional marketing techniques.

The Internet opportunity

According to internetworldstats.com there are currently more than 1,1 Billion Internet users across the world. More than 30% of these Internet users are from Europe and more than 22% from North America. As far as South Africa are concerned we have the largest Internet user base in Africa at an impressive 5,1 mil Internet users. If all of these facts are taken into account it becomes very clear that the Internet offers a large opportunity for visibility to millions of potential buyers both local and abroad.

Currently there are an estimated 500,000 real estate websites online. In South Africa there are an estimated 15,000 real estate sites. With this amount of competition, it becomes important to be ahead of your competitors in terms of your online marketing strategies.

A view on South Africa

According to world-gazetteer.com South Africa has a population of close to 50 mil people. It is a country with great prospects for the future as is clearly visible when looking at the statistics from the World Bank. In 1985 the GDP was at $67,1Bil. In 1995 the GDP stood at $151,1Bil and in 2005 at $240,2Bil. South Africa’s average annual growth for GDP was 4,9% in 2005. Although these figures have a lot more meat to it, it indicates a healthy economical growth. With a healthy growing economy it shows a great online future for the country that was at one stage considered the black hole of the Internet.

A carefully aimed arrow

With such a large quantity of Internet users globally, able to view your website, it is clear that your website is more than just an advertising billboard. The fact that the Internet is becoming more and more community driven; your website also offers much more benefits than just a brochure to advertise your property listings in. Having a fully dynamic website that are better than anybody else’s website is becoming a minimum standard if you wish to compete. Having partnerships with other real estate websites are also becoming more and more important.

The most important factor to consider when evaluating and structuring a proper online marketing strategy is to consider who your target market is. Demographics is a requirement and should be the foundation of your marketing plan. These market segments will become your target markets and will determine your marketing budget for all online marketing ventures.

Different segments of Online Marketing

Although there are at least 12 main categories that can be used in online marketing, we will discuss 4 of them in the following weeks. Understanding these 4 basic marketing strategies is crucial in understanding the way of the web.
Editorial Marketing
Banner advertising
SEO
Email marketing

When reading this and future articles, it is important that you understand that these marketing techniques are closely related to each other for the best results. Although this is the case they are also proven to be successful if used independently.

By Roelof Vermeulen for CyberAgent.co.za

18 MISTAKES HOME SELLERS MAKE.

2007-06-19T12:00:00.000+02:00

•Cheap agents mean cheap prices.
•Signing a standard agency’s agreement
•Warning- never paid any money to agent before sold
•Not trusting your agent
•Instead of focusing on what the agent gets, focus on what you get, focus on net price
•The quote traps
•The fourth price
•Failing to check out the agent
•Do not have an open listing- speed of sale, not highest price
•The best agent will not accept open listings
•If you display no price, you lost buyers
•Do not sell private, agents is employed to do more than you can do yourself. Best is risk free
•Smart sale is a sole mandate sale
•Make house attractive without a lot of money
•First impressions of house
•Do not count on major improvements
•It can be big mistake to reject early buyers to your home
•If best agent and not selling: lower price-wait for buyer–withdraw your home
www.crpproperties.co.za

Tips for Buying A Home When You're Single

2007-06-15T09:15:00.000+02:00

It appears fewer singles are buying homes. And competing against dual-income bids in a period of low interest rates and a dearth of available homes could spell more tough months ahead for single homebuyers.

The biggest factor for singles and families continues to centre on location—the area, price, and work, school, family, and friends.

As economic uncertainty lingers, many single homebuyers' biggest concern is whether they can afford a home, especially when some areas of the country are experiencing increasing home prices, making it a challenge for single and married buyers alike.

"There are many first time buyers ready to buy, but with inventory so low many are finding it difficult finding a home.
"Homes that are priced at or near market value are selling the first week for full price or more. Many sellers are receiving multiple offers. Home buyers need to keep up with the new listings if they are serious about purchasing a home this winter."

As a single homebuyer, what should you do to position yourself? For starters, you'll want to:

Ø Do your homework. Determine what you want—how many bedrooms and which area you prefer.

Ø Think about flat and townhouses. These are typically more affordable and may suit your lifestyle—likely other singles—close by, and you may have access to community facilities, like a pool or workout room. But you'll also need to consider you probably won't have much privacy outdoors or any type of back yard. You'll also need to factor in how much you'll pay for your homeowners association fees.

Ø Spend time comparing mortgages to get the most advantageous plan for your requirements and financial situation.

Ø Get pre-qualified for a mortgage before you begin looking at homes. Not only will this give you an exact price range for your purchase, but pre-qualification will add a great deal of strength to your offer.

Ø Stay in close contact with your agent and clearly express your needs. This is especially important if you're in a market where inventory is low. You'll want to be notified as soon as a home that fits your criteria goes on the market.

Ø Keep in mind that there's no such thing as the "perfect" home. Instead, set priorities. Determine what you're willing to sacrifice, especially if you're in a tight market.

Ø Bid competitively. Keep in mind you'll likely be competing against other offers. If you're in a tight market, it's not the time to see how low the seller will go.

"The best advice I can give a buyer in today's market is not to take too much time deciding on making an offer on a home they like. If it looks good and you like it ... go for it. It won't be there tomorrow."

The Editor
Dineo
www.cyberprop.com

2007-06-13T10:16:00.000+02:00

Hi, Could you possibly let me have the prime interest rate history from mid 2006 to date?Thank you in advance.
Best regards
Dawn

Hi Dawn

Getting back to your request about the interest rates and hope this information below will came handy.

Prime Rates

Current Prime Rate: 13.00 % Effective Date: 2007-06-08

Absa Prime Lending Rate History

Interest (% pa) Effective Date

12.50 % 2006-12-08

12.00% 2006-10-13

11.50% 2006-08-04

11.00% 2006-06-09

10.50% 2005-04-15

11.00% 2004-08-13

11.50% 2003-12-12

12.00% 2003-10-17

Is interest rate likely to go up? Who can still remember my opening statement of last week’s newsletter? Who can remember what they answered? Well the answer is so close! Reserve Bank governor Tito Mboweni raised its key report rate by 50 basis points to 9, 5% today. And this is not where it is going to end. There is a clear warning for consumers to stop spending. He also warned that the Reserve Bank will keep on monitoring inflation. A further rate increase before the end of 2007 is not impossible. Not good news for property ownersAbsa Current Prime Rate.

The Editor

Developers take a fresh look at energy efficiency

2007-06-08T09:00:00.000+02:00

Electricity shortages are increasingly convincing property developers to take a fresh look at energy-efficient homes.

And nowhere is this more evident than in Johannesburg's northern suburbs, where hundreds of rezoning applications are pending because of power shortages.

Brenda Smith,Chas Everitt International's

area agent for Bryanston, says developers are hoping the power grid will be upgraded within the next 18 months, but in the interim they are increasingly considering homes that use alternative energy sources such as gas and solar power utilising single phase power as opposed to three phase power.

The general feeling is that developments offering energy-efficient homes may
enjoy priority when council has to decide which subdivisions to approve.

The energy crunch is partly due to the proliferation of high-density cluster
developments in the upmarket suburb, wedged between Rivonia and Douglasdale.
Smith says clusters now line prestigious roads such as Mount Road and Eccleston Crescent intermingled with larger, older homes.

Clusters are popular among younger buyers and older Bryanston residents who
are scaling down. Prices range from R2,9m. An example of top of the range
cluster estate living is Suikerbossie, an exclusive development in Mount
Street that offers units with spectacular views on 4000sqm stands. Prices
hover between R15m and just under the R20m mark.

Another lively sector of the local property market is made up of the
so-called renovators' dreams, on 4000sqm stands and priced from just under
R3m and under. Younger people, Smith says, are buying these properties for
the location and the space. Some then upgrade the existing homes but many
demolish them and rebuild to their own specifications. Depending on
finishes, building costs in the area range between R6000/sqm and R9000/sqm.

ISSUED BY CHAS EVERITT INTERNATIONAL
FOR FURTHER INFORMATION CALL
BRENDA SMITH AT
CHAS EVERITT BRYANSTON ON
082 374 7335
OR VISIT www.chaseveritt.com

Trusts remain an important vehicle for property ownership

2007-05-28T09:12:00.000+02:00

Court rulings against allegedly improperly administered trusts have recently come under the spotlight, but this should not dissuade property owners from using this vehicle.

So says Gerhard Kotzé, CEO of the ERA South Africa property group, who believes that where trusts are correctly formulated and managed, they still provide an excellent and perfectly legal method of estate planning,

His comments follow reports that assets in trusts, worth billions of rand, could lose their protection from the tax authorities and third party creditors as a result of the courts adopting a harder line on their acceptability.

Legal opinion within Jigsaw, the ERA holding company, is that trusts should be re-visited by professional experts such as property attorneys or professional trust companies and Kotzé says that the issue goes to whether the courts will regard a trust as a sham: "It's important for a trust to be properly administered and adequately separated from the founder and/or trustees, and not to be used like a company or personal bank account."

He notes that the courts have shown a willingness to penalise founders of bogus trusts in the form of unexpected tax liabilities or even criminal prosecution. People setting up a trust should therefore be cautious, particularly where the trustees and the beneficiaries are related to each other.

"One needs to apply the principle of separation and enjoyment of control of a trust, if one wants to avoid tying up assets in a deceased estate, which could take years to unravel should the tax authorities question its structure and operation," he warns.

Kotzé notes that trustees should also be actively involved in the administration of the trust to ensure that it is not seen to be created to defraud others.

He also affirms that trusts remain an appropriate vehicle for property and other assets, provided they are set up "by the book". The chief intent behind the establishment of most trusts is related to leaving assets to beneficiaries outside of any dutiable estate, which is perfectly acceptable in law and has been widely practiced locally and internationally for decades.

"Each case will of course vary from the next, and it is important to note that trusts are obviously not suited to everybody. Having said that, however, the basic criterion for considering a trust is whether the assets in an estate exceed R2m; the point at which estate duty becomes applicable.
And with the growth in value of many types of assets besides property, the R2m figure is not uncommon these days, thus making trusts increasingly relevant."

ISSUED BY ERA SOUTH AFRICA

FOR MORE INFORMATION

CALL GERHARD KOTZÉ

ON 012 682 9610

OR VISIT www.era.com

Trouble pulling the trigger on your first home?

2007-05-25T09:56:00.000+02:00

You’ve made up your mind to buy a place of your own. You’ve saved a hefty down payment. You’ve poured over the daily downloads for months on end. You’ve made open house tours part of your weekend ritual. But months, perhaps years have passed and you find yourself still in your rental, no closer to being a homeowner than when you started. But why?

Perhaps, because your current home is familiar. You know exactly what to expect. You’ve come to accept its shortcomings whether they are loud neighbours, a leaky ceiling or scant street parking. There are few surprises.

For many first-time homebuyers, pulling the trigger can be a frightening experience. Will you be happy there? Will you like your neighbours? Will you be tied down, house rich and cash poor? What if you lose your job? In short, your fears stem from the unknown.

Get comfortable with your finances: Anticipate the new costs that you will experience such as taxes, homeowners insurance, utility bills, and commuting costs. This will help you determine the maximum price you can spend on a house. Consult a financial expert if you need help. Remember, the first year is the hardest; you will start to receive tax benefits in year two.

Partner with a Real Estate Agent: Even though the internet gives you access to endless amounts of market information, don’t be fooled into going it alone. Instead, try out a few real estate agents and when you find one who listens to you, stick with him. He or she can line up properties to view, answer many of your questions, and make connections for you in the surrounding Areas. Best of all, real estate agent often have the inside track on a new properties just coming on the market.

Consider the risk: Realize that there is uncertainty in everything, but no matter what happens, you will deal with it. Ask family and friends about their experiences and learn from them. Be sure to keep some cash reserves in the bank as a safety net. And remember, you have home owners insurance for a reason.

Your Priorities “must-haves”: Is there a community that you absolutely want to live in? Are you adamant about wanting a garage, a fireplace or a finished basement? Make your list of what’s important to you and look for it. You may find that you are willing to sacrifice one feature, if the rest is fabulous. If you are not crazy about the house, don’t bid. It’s important that you love it at the outset.

Be ready to bid: Great houses don’t stay on the market long. Sometimes one open house leads to three offers. If you love it, be ready to make your best offer. If you are uncertain, ask yourself, “How will I feel if I don’t get this house?” You might just get it, and if not, at least you’ll you know you tried.

Reap the reward: Owning a house can be one of the most exciting and satisfying things you’ll ever do in your life. It’s an investment that can pay your personal dividends as well as financial.

Take the first step pull the trigger! “Ready to take the step. Tired of standing on the sidelines. Set a deadline and be ready to bid when you see it. It’s been a long time coming, and you are on your way to becoming a house owner.” Go for it when you see it.

The Editor
Dineo
www.cyberprop.com

Warning on small developers

2007-05-25T08:46:00.000+02:00

Small, independent developers have become a significant feature of the
property market in recent years - but the phenomenon brings with it dangers
as well as benefits.

"Traditionally in South Africa, development was very much the prerogative of
larger companies, but while the big players are obviously still very much in
the picture, recent years have also seen the emergence of numerous small
independents," says Gerhard Kotzé, CEO of the ERA
South Africa property group.

The trend was arguably sparked off by investors acquiring a single property,
giving it a makeover and on-selling it at a profit, then repeating the
process, sometimes on a growing scale. In a similar vein, many owners of
large properties have sub-divided and offered the newly created stands to
others to build several cluster or sectional title units.

Another variation is that of estate agencies that have become developers in
their own right, on the premise that they then benefit from the entire
profit chain rather than merely the sales end.

There are also many newcomers to the market - private developers who are
acquiring land for their own account and then basically project managing one
or more new homes from scratch, outsourcing the likes of architectural and
building expertise. And the resultant products are often of high quality
because the private developer has been attentive to detail and demanding of
all suppliers.

Kotzé warns however, that there are some potential pitfalls for buyers.
"Development is a costly process - not least because of the long delays now
in getting rezonings and planning permissions approved, and the high holding
costs associated with those delays.

"Buyers thus need to be aware of the financial standing of the developer
because if it is weak, corners may well be cut on the building, resulting in
an inferior product."

Meanwhile, those who are perhaps thinking of a property purchase with the
intention of becoming a developer should first take into account the town
planning issues, the quality of access to the property, the quality of the
node or area where the development is proposed, the design of the property,
costs, environmental and local issues and importantly, the track records of
any suppliers they intend using.

"The sub-divisibility of a site especially has to be ascertained. In this
respect, zonings or other limitations may make it difficult or impossible to
realise the potential of a given site, leaving the buyer with a property
that is difficult to sell and for which he may have paid a premium on the
expectation of turning it to good account," says Kotzé.

"Moreover, small developers have to make allowance for planning approval
delays, building supply escalations and problems with the supply of
services, all of which can add to the holding costs of a development,
eroding or eliminating the profit margin on the job."

ISSUED BY ERA SOUTH AFRICA
FOR MORE INFORMATION
CALL GERHARD KOTZÉ
ON 012 682 9610
OR VISIT http://www.blogger.com/www.era.com

Just Moved?

2007-05-17T09:04:00.000+02:00

Decorate using what you already have first

The movers have just left and you're surrounded by boxes of stuff that looked great in your old house, and you have no clue how it will all come together at your new home.

"Just because a furniture piece worked one way before doesn't mean it can't have an even better use in this new home," and "A dresser can make quite a statement in a foyer."

To make a warm, inviting environment, professional arrangers suggest you maximize the use of the furniture, art and accessories you already own. You might be surprised at the new look you can create with your existing furnishings.

What better way to make your house your home by surrounding yourself with the items you've collected over the years. Your new home is giving you the advantage of a clean slate, so revel in the possibilities.

Fresh Ideas
"Analyze your belongings in "Consider using some of the furniture in a fresh and altered presentation. A favourite living room chair may be more at home in a bedroom, or a dining room cabinet may work nicely in a living room as a focal point."

Need a side table in the living room? Look to your bedrooms for a nightstand that might fill the role nicely. A wine rack can hold towels or even a collection. You have to think outside the box – literally

Each change leads to different decorating challenges. Small rooms can take a very large piece of furniture so don't discount that family armoire too soon. You can still keep your favourite buffet, if it fits, in the entry. An umbrella stand upside down may make a great home for a plant.
If your new home has a larger living room, avoid spreading your furniture out too far to fill the room. Consider two groupings, perhaps a primary one for conversation and then a smaller, more intimate area for a dinner for two or a reading area. This arrangement will help maintain a feeling of warmth.

If your move has brought you to a different climate, you will need to address some decorating style differences. In the warmer regions, especially during the hottest time of the year, you'll want to be more of a minimalist. Your colour palette is likely to be lighter. In cooler climates, your palette is likely to have darker tones. The easiest way to introduce the colour changes is with flowers and pillows.

Shopping in Your Own Accessories StoreAs you unpack your moving boxes, try placing your art, lamps and accessories in one room, preferably in groups of like items or colour. By doing this you will create your own "store" of goodies to use when adding the decorating details to your home.
When hanging your art, place complementing subjects together, or group works by the same artist. You can create interesting arrangements by mixing in plates and other objects.

Whether you are putting the final touches on a mantle, creating a tables cape or filling a curio cabinet, remember to group your collections together for the greatest impact. Contrast gives punch. On your tabletops, consider mixing rough surfaces with smooth; matte finishes with reflective ones; and high items with low ones. Hard-covered books are great tools for creating varying heights.

If you empty your "store," it is time to make a wish list of the items you feel you are missing. This list will be much shorter if you have indeed maximized the use of your existing furnishings. When heading to the real stores, take the arm protectors from your sofas and chairs. They make convenient, portable colour swatches. Also take a small piece of your carpet, an extra tile or piece of counter top when possible. Having these with you will reduce the number of trips you make trying to choose matching articles.

The Editor
Dineo
www.cyberprop.com

Where to invest for maximum growth in commercial property

2007-05-11T07:51:00.000+02:00

Investors often ask the question of where they should be buying in order to gain maximum capital growth in the current commercial property market.

Tony Bales, from experienced commercial property dealmakers, Bales Delaporte, says that the answer is theoretically easy - wherever the greatest growth in rentals is going to be experienced. Unfortunately the reality to this answer is a lot more difficult in practice.

“Due to the dramatic fall of capitalization rates (i.e. higher values) of commercial property during the last three years we do not see this trend continuing. Rather a sideways move is anticipated. Hence, from a value maximization perspective, commercial investors must look for other aspects to focus on,” advises Bales.

“Commercial property rentals are in the process of a long awaited rise. Currently, some sectors, such as offices and industrial rentals, appear to be rising at a faster rate than retail rentals. These general factors are affected on a more micro scale by location, type of property, condition, age and flexibility.”

“Industrial rentals of R47/ sqm are being achieved for top of the range spaces where tenants feel they are gaining an operational advantage by being in an upmarket, secure park with good parking ratios and turning circles for large trucks. Tenants wanting the right office space are currently paying up to R130/ sqm in the Western Cape, whereas landlords who have not kept up with the times and are offering outdated, inflexible office space are only able to achieve in the region of R45/ sqm. This does not mean that the lower end of the market spaces will see a higher growth in the short term, but rather that their buildings face something of an obsolescence crisis unless serious capital is spent,” says Bales.

“Rental growth in the better nodes is expected to continue leading the pack to levels not previously seen in South Africa. In fact, many new players to the commercial property

sector are in unchartered territory in terms of rapid rental growth.”

But, what is the use of market rentals rising, if one has long leases in place?

According to Bales, if there are long leases in place, this will have a negative effect on the property’s value until the market rentals are fully realizable. “Many landlords are currently shying away from longer leases in the hope of gaining the most out of these rising rentals and, accordingly, many are also taking a tough stance on late paying tenants as they can replace a late paying one with a better tenant paying higher rentals.”

“Sitting back and watching the growth of the last few years is not an option successful commercial property investors will be taking,” says Bales. “One can no longer be an ‘armchair investor’ in commercial property.”

Bales Delaporte’s best advice to commercial investors is to get out onto the streets and understand one’s specific micro location and the rentals applicable to one’s property. “Expect to have to put some hard work into maximizing the rental growth of one’s commercial property investment. Only then will capital growth follow.”

Ends

For more information please contact Bales Delaporte on 0861 332 562 or visit http://www.balesdelaporte.co.za/

Ends

Issued by: Catherine Pate

Buyer’s Tips

2007-05-09T11:48:00.000+02:00

When shopping for a new home, the most important aspect to follow is communication between you and the real estate agent. Let the agent know exactly what you want and how much can you afford to spend; that way you won’t be wasting time looking for Houses that don’t fit your tastes or budget.

It’s a good idea to visit your bank prior to visiting a real estate agent to get pre-approval for credit. If you go house shopping knowing that you have a certain amount of credit pre-approved, not only will it eliminate possible disappointment later, but it will give the agent and seller an extra incentive, especially if you’re not the only one making an offer on the property.

When viewing the house for the first time, look at the furniture, wall paint and curtains and try to visualize the rooms the way they’d look with your furniture in them.

You’ll likely be visiting more than one house, use this simple tip to keep you from getting confused: bring a notebook with you when you go out looking at the properties. Write down the address and prices for each property you visit. Make notes about the features you like and those you have question about for each property, then use your notes to discuss your concerns with the real estate agent.

If a particular house interests you and you go back for a second visit, this is the time to ask the important questions and do some serious inspection. Ask about the roof: how old is it? Flush the toilet to check the plumbing. If you can, check the pipes and electrical work. How old are the appliances and which ones are included with the sale? Does the house have a septic tank or is it hooked to a sewer system? What is the average monthly power bill? What is the monthly water bill? What are the taxes for the property? What school will your children be attending if you buy the house? Is the house located in a possible flood area? Does the house have insect problems or water damage? Are there zoning restrictions in the area? These are all questions you need to have answered, and your real estate should be able to find out all the information for you. Good Luck!

Editor
Dineo

www.cyberprop.com

2007-05-04T12:18:00.000+02:00

A Home Is Not Just a House

Land is a homeowner's most valuable asset

Your home's real value is in the dirt. When you purchase a home, you actually buy real estate, a combination of dirt (the land) and all the fixtures: your house, garage, a swimming pool, fences, septic tanks and driveways.

Land is real estate's most valuable resource because the planet provides a fixed supply. You can't move it and you can't make more of it. Your house is little more than an improvement upon the land.

Because it is so valuable, the piece of rock has its own legal description and a documented history recorded under a plot number.

Land use: The planning or building department or division of your local government can provide you with the land's legal description, boundaries and perhaps its surveyed dimensions, as well as a copy of the map of your house within a tract or subdivision. Some files include photos.

The file containing your land's description will include the legal specifications or schematics of septic tanks, wells, basements, the floor plan of your home and other evidence of how your land has been used over time.

If you live in a Townhouse, you own land jointly with other homeowner association members, which explains, in part, why Townhouse are less costly than single-family homes. Your Townhouse unit file will, however, describe and map the air space you own within your association's development, including the land beneath it all.

The history of your land could date back hundreds of years to the time of land grants and squatters, but it likely began with your parcel's development as part of a tract in a subdivision. Building and planning departments usually have this information and other activities that affect the land. If you take out a building permit for a home improvement, apply for a zoning variance or run a percolation test for a septic system. The percolation test will determine if the soil will absorb water adequately to use a septic system.

While most government records are complete and accurate, the sheer volume of records leaves ample room for errors and omissions. Whenever there's a question about the boundaries of your land, its use, basements or zoning, you may need to hire a survey company or seek a title company's interpretation. Have a surveyor or a real estate attorney review any documents you receive.

Land ownership: A title search reveals recorded interests, encumbrances, claims of title and other forms of ownership or claims against your land and its components. That can include the owner's mortgage, titles, deeds, judgments and other legal actions, the status of property tax payments and other claims against the property and its use.

The title search doesn't stop at the current owner, however. It examines public records and any other depository holding a record of your property as far back as necessary to be certain you are buying a home with a clear title. That could include the assessor's files, appraisal reports and homeowner association records. A preliminary title report will document what the title search discovers.

The Editor

Dineo

http://www.cyberprop.com

2007-05-02T16:08:00.000+02:00

I recently received a eye opening letter
Colleen Thane wrote:

Municipal arrears from previous owner

I recently bought a flat. I took transfer mid-November. It has now come to light
that there are municipal arrears of R60,000 for the entire block of ten units. Who is responsible for these arrears.

It appears that the developer was being billed by the municipality. They in turn supposedly passed the bills on to the managing agents, who say they never received them. The first that the present owners knew of this problem was when the water was cut off. Levies are being paid, however these have not covered the expenses. The managing agents have not notified owners of this problem. MAny owners were completely oblivious to this problem. The managing agents admit that they have not been "proactive" in resolving this, however they come short of admitting negligence. They have however been very proactive about collecting their monthly managment fees!

This leaves new owners with a problem dating back two years. We received a levy clearance certificate issued by the Management company to the conveyancers.I don't see why I should have a special levy imposed to address these arrears - they were created before I took transfer. Am I justified in saying that the arrearss hould be paid by the developers/and or managing agents and then they in turn invoice on a pro rata basis, the owners past and present for the amounts in arrears.

The conveyancers say that the purchaser should have demanded to see the financials prior to purchase. Getting anything at all out of the mangement company was very difficult. One prospective owner went to the agents after receiving no replies to e-mails and was told that everything "was fine". He coul dno longer risk losing the flat and signed the offer to purchase on assurance of the manging agent that all was well with the financials.
Thank you for your kind attention.
Colleen Thane

Feel free to give helpful advices

2007-05-02T08:45:00.000+02:00

Sectional Title Scheme Management industry picks itself up
_______________________________________________________________________________

Most people are aware that the Estate Agency Affairs Board (EAAB) plans to introduce compulsory education for estate agents towards the middle of this year. This is a positive step towards professionalizing an industry well known for its unprofessional conduct. According to the Estate Agency Affairs Act, of 1976, those who manage sectional title property for a fee are defined as estate agents and the EAAB has made provision for these managing agents in their new training programme.

While the real estate industry awaits professionalization, over the past 2 years managing agents have begun professionalizing themselves and the sectional title scheme management industry through education. With 450 University certified sectional title scheme managers throughout the country, sectional title property owners can now distinguish between qualified and unqualified professionals to manage their most important asset. Gerhard Jooste, chairman of the National Association of Managing Agents (NAMA), quotes “The Industry has come a long way both in growth and education. The future looks very bright and positive. The UCT Sectional Title Management Course has given our drive towards professionalism new momentum. Everyone involved will benefit.”

The University of Cape Town’s Faculty of Law, NAMA, and Paddocks, a specialist sectional title firm, introduced the UCT Sectional Title Scheme Management Course in December 2005 which is now considered to be the industry benchmark course. This 6 month course is conducted over a 6 month period and is presented via distance learning. This certification is also accredited by the EAAB as a specialist programme in sectional title scheme management, which means that passing students won’t have to repeat their specialist education when the board introduces their new training programme.

“With 450 students having graduated from this comprehensive course in 18 months, there is no doubt that the sectional title scheme management industry is becoming more professional” says Graham Paddock, the author of the course. Consumers throughout South Africa now have the power to choose a professional managing agent to look after their most important investment. So says Graham Paddock “Trustees of sectional title scheme should insist on viewing a potential property managers credentials.”

Paddocks and the University of Cape Town are offering 5 scholarships for previously disadvantaged individuals to attend the next 6 month course, which begins on the 4th of June 2007.

For those interested in the qualification, please contact Robyn Allan on 021 674 7818 or robyn@paddocks.co.za for further information.

2007-04-30T12:36:00.000+02:00

Moving Up

Tips for potential move-up buyers

If your family is growing, you're earning more money than you were five years ago, you want to live in a more desirable area, or you want a larger or better-appointed house, you might be considering selling your house and "moving up."
Many homeowners are also motivated to move up because of increasing appreciation rates; they can sell their existing house and have a hefty down payment for their new house.

There are many things you should consider when moving up:

1. Keep your options open. With prices continuing to rise and inventory low in many areas of the country, you're likely to encounter a depleted inventory at high prices. If you wanted something fairly new, think about something a few years older. "Many 'older' homes have been refurnished, turning them into desirable properties for either new or move-up buyers.

2. Get an accurate picture of your financial situation. How much more of a mortgage payment can you really afford? Just because a bank approves you for a certain amount, it doesn't automatically mean you should spend that much on a house. Factor in other debts and expenses and long and short-term savings goals like college for the children and retirement for you. Lenders generally say your mortgage should be about 25 percent of your gross monthly income. And always factor in some reserve savings to put aside each month.

3. Be realistic about how much you can sell your house for and how much of the proceeds you'll have available for a down payment on your next house. Ask a real estate agent for a market analysis. And don't forget closing costs -- points, which are extra fees paid to secure a lower interest rate, origination fees, taxes, title insurance, and financing costs. The higher your down payment, the lower your monthly mortgage payment and the possibility of qualifying for a better loan.

4. Get a pre-approved loan. This way you'll know if you can get approved and how much you can spend on a house. It also puts you in a stronger position when you ultimately making an offer on a house.

5. Be specific about your needs and don't cater to emotion. If you have two children with another on the way, be on the lookout for houses with plenty of bedrooms and areas to entertain and raise growing children. Take play and study spaces into account.

6. Consider the area as well as the individual house. If you have children, check out the reputation of the schools that your children would be attending. Contact the local police to get an idea about crime activity in the area. And factor in the area’s proximity to work, shopping, restaurants, and other important places you'll be frequenting.

7. If you're considering an existing house, check out the property's insurance history. This could affect your ability to obtain insurance if you buy it. Begin by making sure your credit report is accurate -- credit histories are sometimes used to determine whether a company will insure you, and, if so, at what rate. Also, the Insurance Information Institute says you should get a copy of your property history report. If you have not filed any insurance claims in the past five years, you won't have a history report. The better your report, the better chance you'll have of obtaining reasonably-priced insurance on the house you buy. Ask the seller to provide a copy of their history report, too.

The Editor
Dineo
http//www.cyberprop.com

2007-04-25T09:47:00.000+02:00

In Love with Two Houses?

What to Consider When Making the Final Decision

When finding yourself caught up in house-hunting mode, you may encounter a situation in which you're torn between two properties. Perhaps you and your partner each have a favourite or perhaps you both like two houses equally - or think you do.

Making a final decision and determining which property to make an offer on. The decision you make should be done rationally and not guided by emotion.

Of course, you may not have enough time on deciding which house you love. You may be in a market in which houses in your price range get snatched up as quickly as they go on the market, perhaps even attracting multiple offers.

But in some situations, you may find yourself caught up between two houses. Sometimes the easiest thing to do is take pen and paper, write down the needs of your family and your budget.

Some things you'll want to compare include:

 The house, make a list of the priorities and attributes what your house should have. If you want that first-floor home office, a large open back yard for the kids or a gourmet kitchen, be sure to include that on the list. Then, rate how each house measures up to each need on your list. If you have kids and being close to a park is important, you'll want to consider that. How close are shopping malls, restaurants, church, and other services? Are the streets maintained? Do homeowners landscape and maintain their homes nicely?

 If you have school-aged children, you definitely want to consider the reputation of the schools around the area. But once you're this deep in the process, you'll want to visit the schools and receive the information first-hand from school officials. You should also talk to teachers and parents.

 Crime, go to the local police station and ask about crime in that specific area. You might find theft or vandalism to be more dominating in one area than another.

 If the two homes you're viewing are in different parts of town or different area, ask your real estate agent to retrieve sales of houses in those two areas over the past few years. If one house shows an annual average 8 percent increase and another is at 15 percent,from there you can make your decision .

 The sellers' situations, If you don't know already, ask your real estate agent how long each house has been on the market. Usually the longer a house has been listed, the better chance the seller will accept an offer lower than asking price. Conversely, if the house has been on the market for just a couple days, the sellers will probably wait for a better offer if you offer less than the listed price. Your real estate agent might also be able to dig up additional information about the sellers, like why they're selling. If it's a job-related move or a divorce, the sellers likely want to move as quickly as possible, meaning you have a better shot at them accepting a lower price.

As you carefully weigh all the factors, it might become clear that one house is more tempting than the other. Or, you may find the houses are still equally appealing. If that is the case, be sure you look at the homes more than once. You may notice something you didn't the first time around - something that could convince you one way or the other.

In fact, you should probably visit each home at least two more times, at different times of the day to get a feeling for how the house and feel in the morning versus late afternoon or evening. Once you make a decision and an offer, you can take comfort in knowing you may still have a back-up if the deal falls apart.

The Editor
Dineo
www.cyberprop.com

2007-04-24T08:16:00.000+02:00

How to Choose the Best Real Estate Agent

When wanting to buy a property , you need experts when it comes to that department. And it all starts from a good real estate agent. Opting for a specialized real estate agent that knows how to do his/her job optimally and who understands your needs is vital, considering the fact that your future home depends on your agent’s both personal and professional abilities.

So, how should a real estate agent be? First of all, you need to make sure you select a reputable agent, an agent with a certain experience, an experience focused on a certain field. There are various agents specialized in specific areas, on large estates, on duplexes or on beach villas, so the first thing you need is to look for the one that has a relevant experience in the desired domain.

When it comes to selecting a real estate agent, it is very important to ask for recommendations. Think about it this way: it is like choosing a lawyer – would you choose one that no one knows, a lawyer that nobody recommended? So, the best thing you can do is to ask all your family members and friends for recommendations: ask the names of the agents they have worked with and contact them in order to see if they are what you need. When meeting with a real estate agent for the first time, you should know that you are entitled to interview him/her and to obtain the answers that you need in order to make the best decision. This means that you do not have to settle for the first real estate agent you meet. Research first, interviews the agents, take your time and only then decide.

But you can not actually consider a real estate agent professional and competitive unless that agent is friendly, communicative and willing to offer you the wide range of information you might need. So, in other words, a real estate agent should have, besides the specific professional abilities, various personal abilities that are necessary when establishing such collaboration: a positive attitude, good will, communicative skills and the desire to help you get the best house Good luck!

Editor

Dineo
www.cyberagent.co.za

2007-04-24T07:25:00.000+02:00

News from Chas Everitt - Cinderella’s

Look out for beauties in disguise

Buyers who can spot a Cinderella property in a good area stand to make a
royal profit when the time comes to resell - if they are willing to roll up
their sleeves and tackle a spot of home renovation.

Homes that have been neglected but are structurally sound are prime
candidates for makeovers that will make them fit better with the overall
tone of the neighbourhood. And buyers with the imagination to see them as
belles of the ball when they are still in rags may well find fairy tales
coming true.

That's the word from Berry Everitt, MD of the Chas Everitt International
property group, who says bargain hunters should of course steer clear of
properties needing extensive and expensive renovations such as propping up
poor foundations, re-roofing, complete re-wiring or plumbing replacements.

"Such costly operations are usually outside the ambit of most
DIY-enthusiasts and if specialists have to be contracted to do the work,
much of the potential profit flies out of the window."

But homes that have been marked down because they need painting or because
the garden has gone to seed are definitely worth a second and even third
look, he says.

"Setting a neglected garden to rights may easily be done within a season,
and just mowing an overgrown lawn, trimming hedges, pruning trees and a
bit of weeding will make an immediate impact. Painting the house should also be
relatively inexpensive if owners do the work themselves."

Writing in the Property Signposts newsletter, Everitt says other
easy-to-fix faults include worn and shabby floor surfaces or carpeting that can
usually be treated or replaced at a reasonable cost, and old-fashioned light
fittings.

"Indeed, new light fittings are probably among the least expensive and most profitable home improvements one can make.

"And finally, homes with single bathrooms offer a big profit opportunity
since second bathrooms will generally add double the cost of the
renovation to the value of the house.

"This is especially true if a second bathroom can be fitted into the
existing layout of the home and connected to existing plumbing.

The Editor

Berry Everitt

www.chaseveritt.co.uk

2007-04-23T13:36:00.000+02:00

News from ERA - boost for Gauteng property
Gauteng boom puts the shine on regional property market

When it comes to property , it is commonly believed that the coastal areas are the best investment but while Gauteng may not have the bling of Cape Town or the tropical allure of KwaZulu Natal's coast - the province's real estate is currently very hot property.

Gerhard Kotzé, CEO of the ERA South Africa property group, explains: "As we heard during the President's recent Johannesburg imbizo, Gauteng's economy is set to grow at well above the national average rate, and while it may not have the glamour of the Cape or Kwa Zulu Natalmarket , the opportunities here are outstanding in terms of variety, choice and volume."

Gauteng is already, he notes, the growth engine of sub-Saharan Africa in terms of industrial and mining output and in respect of the latter, it ranks amongst the most important in the world.

"Its contribution to the country's gross domestic product is about 33% and it has the greatest density of population, including the highest percentage of newly enfranchised South Africans - making up a significant proportion of the 400 000 new homeowners who entered the market last year.

"Furthermore, Gauteng accounts for 40% of the country's manufacturing and financial services and it even attracts healthy numbers of shopping and business tourists."
He says Gauteng has benefited from rapid migration into a limited land mass and houses 53% of the country's affluent households, dominating the rest of South Africa with the greatest proportion of the top three income categories- defined as the ultra wealthy, the upper-middle class and middle suburbia.

"And such strong growth often brings problems with it such as increased traffic density, long commuting distances, crime and strain on the infrastructure in general.

"Nonetheless, in terms of property opportunities, the province is highly relevant due to the wide choice of investment opportunities available - ranging from affordable, entry-level homes to executive mansions - and the sheer volume of buyers and tenants here."

Accordingly, while some parts of the country have undoubtedly felt the effects of the general slow down of the property market Gauteng has arguably been the least affected, says Kotzé.

"There are of course pitfalls in the Gauteng market , including over-development of some categories of property . Moreover, there is no denying that price growth at the top-end has slowed. However the middle and lower segments are still robust and overall the Gauteng market continues to show solid growth.

"Indeed the message is clear: Provided you do your homework, there is a strong case for property investment in Gauteng, particularly at this stage of the market cycle when more discretionary type property investments, such as holiday homes, are perhaps in less demand."

The Editor

Gerhard Kotze
www.era.com

2007-04-18T12:51:00.000+02:00

Seller's Tips

When selling a property , it's important that you make your home as attractive as possible to prospective buyers. You want them to see your property as their home, and there are a few simple -- and inexpensive-- things you can do to achieve this goal.

1. Firstly make your front entrance welcoming. Paint or wash the front door, clean and, if necessary, fix the screen door, oil all hinges to eliminate squeaks, and clean any glass in the doors. Invest in a new welcome mat and add planters next to the door. Get rid of any clutter around the entrance. Sweep the front steps or porch, and keep the entrance door to the door tidy of children's toys.

2. If your home has vinyl siding, rent a pressure washer and clean the exterior of the property
If you have a wood deck or porch that has turned grey over the years or is stained by mildew, pressure wash the wood while you have the machine; pressure washing makes the wood look new and gives a good impression. Repair, repaint or replace any broken shutters or window boxes, then fill the window boxes with colourful flowers that will make the buyer feel welcome.

3. Don't forget about the yard. Roll up any garden hoses; better yet, store them away. Plant colourful flowers wherever you can. Keep the grass mown and free of branches or weeds; rake leaves off lawns and clean up any cuttings.

4. Now for the interior. Paint the walls in a white or light neutral colour. The idea behind this is to give the prospective buyers a chance to imagine their own colour schemes without any influence from your decorations.

5. Strip the rooms of as much furniture as possible. You don't have to get rid of your furniture, just store it away until you sell the house. This gives the buyers a chance to see more of the wall and floor space in the rooms and to visualise their own furniture in them.

6. Keep furniture dusted and rugs vacuumed. If the carpet is particularly dirty or stained, invest in renting a carpet cleaner and shampoo the carpet. This will not just clean the rugs, but also leave a fresh, clean smell. Install 100 watt light bulbs in chandeliers and table lamps to create brilliance in all rooms.Use air fresheners or potpourri but not the flowery kind; choose one that smells like vanilla or cinnamon to give the home a sweet and pleasant smell.

7. In the kitchen, put away dish drainers and any extra appliances on the counters. Keep the counters clear of clutter such as bills, newspapers, bottles and toothpaste tubes. Keep the sink and tub clean and shinny. Wash the floors. Drop a cleaning tablet in the toilets and always keep a full roll of toilet paper in the dispenser

8. Clean out the basement of all junk. This is the perfect time to have a yard sale to get rid of anything you've been keeping "in case you ever need it".

9. Prospective buyers will open closet doors and cabinets, so keep them neat and tidy. Keep shoes off closet floors by storing them in shoe bags or racks. Take your clothes off door hooks and hang them neatly on hangers.

Finally, when your real estate agent brings over a prospective buyer, stay out of their way as they tour the house. Buyers get nervous when owners follow them around from room to room. If you have pets, make sure they're in a secure area where they won't bother your visitors. Turn off the television or radio, get up off the couch and go outside. If possible, talk to the estate agentin connection with any tours and go over all the important aspects of the property and then leave everything in the hands of the agent to point out the distinctive features of each room.

Good luck in selling that property

The Editor

Dineo

2007-03-14T13:44:00.000+02:00

The best legal structure to hold commercial property in

Commercial property investors often ask the question: What is the best way to structure their commercial property holdings?.
According to commercial dealmakers, Bales Delaporte, while each investor obviously has their own circumstances, there is one way that has found favour with many of the astute and experienced property investors - the Company Trust Combo.
“In this generally preferred structure, your discretionary family trust owns the shares in a private company that, in turns, owns the commercial property.”
The question is, what are the benefits of this compared to simply holding the property in your own name or in a trust?
Ben Strauss, from Hofmeyrs attorneys advises the following: “The entity or company owning the property pays income tax at a rate of 29%. If the company declares revenue profits - such as rental - as dividends, there is also secondary tax on companies (STC). Which pushes the effective income tax rate to about 37%. This still compares very favourably with the 40% income tax rate of trusts and individuals (at the highest marginal rate).”
“As for capital gains tax (CGT), the company pays a maximum rate of 14,5% which is better than the 20% paid by trusts and not too far off the individual rate of 10%. Nowadays, companies also pay STC on capital profits,” says Strauss. “So, if the company declares the capital profits, its effective capital gains tax rate goes up to about 24%. For commercial property, companies should be registered for VAT as most commercial properties would deem turnovers above the required threshold.”
It is clear from this, therefore, that from a tax perspective, a company that reinvests its profits, and hence pays no STC, is in a very good position.
According to Strauss, under the Company Trust Combo, the trust that owns the shares in the company earns tax-free dividends.
“The Minister of Finance announced in his recent Budget Speech that STC would be reduced to 10% on 1 October 2007. He also said that, in due course, STC would be replaced with a dividends tax. However, the proposed changes should not have a material impact on the principles discussed above.”
“Further benefits,” advises Strauss, “is that as the trust owns the shares in the company, when you die your estate pays no estate duty or CGT. The Company Trust Combo also gives you other benefits such as protecting the property from your creditors.”
“If you lend money to the company to pay for the property, the only asset in your estate is the loan account. You can use the loan account to draw funds from the company if you need it and you can reduce the loan account over time by donating funds to the trust to repay the loan amount.”
Compared to simply owning the property in a trust, Strauss says that there are other benefits to a Company Trust Combo.
§“When a person makes an interest-free or low-interest loan to a trust, the under-charging of interest is sometimes seen as a donation under tax laws. In this case, some of the income of the trust may be attributed to the lender and taxed in the hands of the lender. But under the Company Trust Combo the loan is made to a company, not a trust, and the attribution principle does not apply.”
§“Additionally, if a trust owns the property directly it is difficult to bring in other investors and this invariably means selling off a part of the property or changing the trust deed. However, where the trust owns the shares in a property company, the trust could simply sell shares in the company to the other investors.”
However, Strauss cautions that a disadvantage of the Company Trust Combo is that it adds an additional layer of administration and expenses such as audit fees.
“The Company Trust Combo may also not be suitable for holding residential property that you live in. In this case it may be better to hold such property in your own name to save transfer duty when buying and to qualify for the R1,5 million CGT primary residence rebate when selling.”
Strauss concludes that it is essential that one gets professional advice before structuring the holding of your commercial property in order to ensure nothing goes wrong.

Ends

Issued by: Catherine Pate
On behalf of: Bales Delaporte

http://www.balesdelaporte.co.za/

International investors line up for a slice of S.A.

2007-01-17T09:37:00.000+02:00

Following the recent widely publicized purchase of the V & A Waterfront by the prestigious Nakheel Group, international interest in substantial commercial property investments within South Africa has increased.

This is according to property investment experts, Bales Delaporte who have been approached by a number of international investors following the V&A purchase.

“In the past we have seen a continued low level interest, but recently, international investors appear to have acquired a sense of seriousness that shows that the Nakheel Hotels & Resorts deal is not a once-off,” says Guy de la Porte.

“Interest is coming in from a variety of countries and the requests span various different types of property investments. The investors are generally fairly serious players, from private individuals to large corporates and listed entities, including large international hedge funds.”

South African property is generally seen to be reasonably priced as well as offering yields well above those in developed countries. According to de la Porte, as investors get to know the SA market better, they are realizing there is continued stability and an advanced level of sophistication.

“This time last year, the JSE listed property sector were generally the major players in the market. Now with increased interest rates, active local private equity funds and this renewed international interest, the local JSE listed sector has been caught off-guard and have recently lost a variety of deals.”

Bales Delaporte say that they are anticipating 2007 to be a year where a large number of new players enter the market, both from local and international sources.

Ends

Issued by: Catherine Pate

On behalf of: Bales Delaporte

Property for sale & to rent in South Africa

The Rental Agreement

2006-12-12T15:38:00.000+02:00

The rental agreement is the contract between the landlord and the tenant. It spells out the conditions under which the tenant will rent the property. Normally covered in it are such things as the amount of rent to pay, how to treat the property, and the house rules.

Most rental agreements differ slightly from each other. Some will have one provision and not another and vice versa. Others leave lots of blank spaces to be filled in by the landlord. Excellent forms are also available from Apartment and Landlord Associations. These forms are updated by attorneys and property management professionals every time a new law is passed by the legislature. Every rental agreement should have certain clauses included in it:

Complete address of the property

Date of commencement of tenancy

Name of tenant(s)

Name of landlord or property manager

Amount of rent

When it is due

Where it is to be paid

Penalties for not paying rent when due

Tenant responsibilities for maintaining the premises

How the tenancy can be terminated

Who pays utilities

How the agreement can be changed

The forms you use may or may not include the ideas which follow. However, these clauses will serve to let the tenant know what you expect out of him and/or her. It is always better to be clear up front, to "get your ducks in a row," than it is to wait for something to happen, then try to deal with it.

Pet Agreement

This is probably one of the most important forms you can use, if you allow pets on your property. It spells out in detail what is expected of the tenant. It also adds a deposit or fee for cleanup after the tenant moves out.

You do have the right to forbid or regulate pets on your property, unless the "pets" are assistance animals, such as guide dogs.

Notification Procedures

Tenants need to know in advance how you can legally serve them with any notice regarding defaults of or changes in the rental agreement. Notification procedures are extremely important. If you get them wrong, the tenant is not notified, and you have to start the process all over
again.

Spelling out notification procedures in advance does three things. First, it lets the tenant know the rules. Second, it lets him or her know that you know. Third, it gives you guidelines to follow every time you have to notify the tenant for any reason.

No extra bodies

The tenant must understand that only the people listed on the rental agreement are the people who are supposed to be living in the property.

You must also spell out occupancy limits. One person moving in must fill out a rental application, and be replacing someone who is moving out.

No Subleasing

This is part and parcel of the "no extra bodies" clause.

Smoke Detectors

An acknowledgment that the smoke detectors are in good working order is similar to the provision for a statement of condition: it won't always help, but it lets them know that you know.

Limit on number of vehicles

Not much looks worse than a bunch of broken down cars in front of a house or in a complex's parking lot. In addition to that, too many vehicles creates hard feelings and tension with other tenants and the non-tenant neighbors.

Tenant repairs

Many landlords tell the tenant to repair anything which would cost less than R200.00 and to send them a bill. This keeps the landlord from being called for dripping faucets and loose screws.

Some landlords don't want to leave anything to the tenant, preferring to make sure it is done correctly. The flip side is that tenants who make some of the repairs themselves sometimes take more pride in the property.

Some tenants would like to make repairs, but do not have the skills sufficient to do a good job. You have to find out how capable a tenant is before you turn him or her loose on any repair, even changing fuses, in a unit. Remember, you are ultimately responsible and liable for any repairs made on a property, regardless of who did them.

Maintain the yard

This is especially important for single family rentals for obvious reasons. Another, not so obvious, reason is that a poorly maintained yard is that much harder and more expensive to put back in good shape when the tenant moves out and you have to rerent the house. Find out if your tenant has a lawn mower. If he or she does not, reiterate what is expected and ask how he or she expects to keep the yard in good shape. Chances are between the two of you, you can
come up with a workable solution. Just make sure the tenant is involved in the solution.

Things to Remember

A tenant intent upon causing you trouble will do it, no matter what the rental agreement said.

The biggest advantage of spelling out everything in writing, on special notices and forms, if necessary, and going through everything verbally, is that the tenant understands the provisions and knows that you know.

Make certain that your tenant gets a copy of every document and form, is aware of the importance of keeping them, and fully understands the provisions of each. When he calls you with a question covered by a document, you can refer to what he already agreed to and signed. Go over the provisions again, if necessary.

"Robert Cain is a nationally-recognized speaker and writer on property
management and real estate issues. For a free sample copy of the Rental Property
Reporter call 800-654-5456 or visit their web site at www.rentalprop.com."

http://www.rentalprop.com/

Property in South Africa

Holidaymakers streaming to Hibiscus Coast

2006-12-08T13:37:00.000+02:00

An extensive selection of short-term accommodation to let is one of the main reasons for the perennial popularity of the KwaZulu-Natal South Coast among festive season holidaymakers.

"There is genuinely something to suit every preference and every pocket," says Des Robb, principal of the Homenet offices in Pennington and Scottburgh, "from upmarket hotels through
cosy B&Bs to an incredible range of self-catering chalets, flats and houses.

"Holidaymakers on the Hibiscus Coast are quite simply spoilt for choice - and the attraction is enhanced by the fact that the area also has so many superb golf courses, as well as a host of lifestyle attractions and special activities for holidaymakers."

It's no surprise then, that 90% of the holiday homes to let in Robb's area have already been booked for the peak 20 December to 2 January period.

And Teresa de Klerk, principal of Homenet St. Michaels On Sea which also covers the Margate, Ramsgate, Shelley Beach and Uvongo areas is also expecting a maximum capacity crowd of holiday tenants at that time.

"In fact, the South Coast is such a great get-away destination for the whole family that many people book their holiday accommodation here months in advance year after year - and most establishments are fully booked by November."

So what are tenants paying for coastal lets during the peak, end-year period? Robb says rentals vary tremendously, from standard holiday homes at R100 per person per night, to beachfront homes at prime addresses such as Cherry Lane and Salmon Drive in Pennington, where tenants can expect to pay R3000 for the home per night,.

Looking at the trends in the holiday letting market, De Klerk notes that in recent years families have not been staying as long as they used to. "Previously, the average length of stay was three to four weeks, but now families generally only stay for two weeks. This can be attributed
to the fact that accommodation has become two to three times more expensive in the past few years."

However, concerns that higher fuel prices and interest rate increases would keep holidaymakers away have proved unfounded - although, says Robb, the rate increases have dampened buyer's enthusiasm for local holiday units this year.

More.

De Klerk notes, however, that there has been an increase in demand for homes along the South Coast from retirees who "want to get away from the rat race and move to a quieter and friendlier area."

And she says another interesting trend that seems to be developing is that of holidaymakers visiting the coast during the off-peak periods.

"Holidaymakers are realising that the accommodation and grocery costs are lower, traffic is not as hectic, the beaches are less crowded and the whole region is less frenzied in off-peak periods. Of course this is also good for local business as it effectively lengthens the good trading periods."

ISSUED BY HOMENET

FOR MORE INFORMATION
VISIT www.homenet.co.za

Property in South Africa

Property Investors cautioned for 2007

2006-12-05T16:03:00.000+02:00

Property investors must be cautious and review their strategies, making plans to adjust accordingly in 2007.

This is the advice from investment property experts, Bales Delaporte who say that the residential and commercial property markets have changed recently.

"In reviewing where the commercial market is heading," says commercial property dealmaker Tony Bales, "one must consider the main factors that will affect the next few years."

"Positive factors are things such as the 2010 Soccer World Cup and Nakheel's purchase of the V & A Waterfront, which now makes SA a truly top class investment destination and has led to a host of large international property players seeking property investment and development opportunities in SA."

"Another positive factor is the growing local JSE listed property sector as well as internationalization of the local JSE listed property sector towards an internationally accepted Real Estate Investment Trust (REIT) structure," says Bales Delaporte. "GDP growth has also
expanded local economy and demand by tenants and investors and rental growth in the office and industrial sectors is due for solid growth during next few years."

According to Bales Delaporte, the negative factors that will affect property investing in 2007 are things such as the rising building costs and rising interest rates, further depreciation of the Rand, traffic congestion in the major metropolitan areas and the fact that construction capacity is currently running at maximum capacity.

"The vast majority of positive influences on the property market indicate a period of solid growth moving forward, but such growth may be in different ways to what has been seen in the past and investors do need to continually evaluate what they are doing."

"Stay close to the experts and stay close to what is really happening and look forward to new horizons rather than looking backwards at the setting sun for solutions," concludes Bales Delaporte.

Editor: Catherine Pate
pate@mailzone.co.za

On behalf of: Bales Delaporte
Contact: Tony Bales
www.balesdelaporte.co.za

Property for Sale South Africa

Will renovating your home help you in today’s property market?

2006-11-07T15:15:00.000+02:00

My answer is yes, but what is yours?

Property investors and home owners can definitely boost the value of their properties through home improvements. Renovating has increased in popularity over the last decade and we see more and more of the “golden oldies” reaching top selling prices. "Older apartments are becoming like hens teeth nowadays as buyers realize the value to be found in these properties” This according to Sharon Westcott of Lew Geffen Sotheby's International Realty.

I have seen a dash of paint making a big difference in the price of a property.

In many cases owners are now spending more on the renovations than on the purchase of the property. Bearing this in mind, it is important to get it right if selling your property in the near future is what you have in mind. By doing it right you could be handsomely rewarded.

Renovations must be done in such a way that it suits the taste of the next buyer. But this is not where it ends;

Do your homework

Do market research

Consider your options and how your actions could influence the resale value of your property. The golden question, is it worth your while to renovate?

Money spend on renovations must be recouped when you sell your investment

If your consider extending you should make sure if it will not be more viable to sell and buy a bigger property

Get advise from a real estate agency or property evaluators

Take a good look if the basic structure, foundation etc. of your property is sound before you start any renovation. For example, it does not help spending money on renovating your kitchen if the roof of the property is leaking

Cap the amount that you will be spending on your renovations and the easiest way to do this is to find out what the best house in your street would sell for. Use this as your guide as to the maximum you should spend. According to one of the financial institutions in South Africa a home more than 15%-20% pricier than other properties in its neighbourhood will be unlikely to sell as buyers can get property in a better area for a similar amount

In this instance of renovation it is not location that will count but impression.. impression.. impression!

Be aware of trends in your area as particular renovations can add value in certain areas. Building a swimming pool might work in one area and not in another

Decide on the style and make sure that it suits the original style of the property

Don’t underestimate the true costs of renovating. Get several quotes for the work beforehand

Make sure that what you do is done correctly and in a professional manner and professional standard

Keep receipts and guarantees on file to show estate agents and prospective buyers

If you are not considering renovations with selling in the near future you should give it a good second thought. Think about your future and what you will be needing. Will you need extra rooms for planning a family? Will stairs work when growing older?

Where do I start?

Clean and good looking is what buyers are looking for. Forget building a swimming pool the experts warns us. For the best return on your investment you should invest in renovations in the kitchen, bathrooms and garages. According to property evaluators and estate agents the most notable areas for improvement are en-suite bathrooms, modern kitchens and garage space as these are the features that sell homes and grow value, and if homeowners are going to spend money on renovations it should be in these areas. Afterall, who has the last say, the husband or the wife?

Then on the other hand, renovations are not just good for selling a property but also for letting it. A good looking property can fetch a high rental and yield a good return as we see rentals increasing in South Africa. Large homes with sea views in areas like Umhlanga, lower La Lucia and Mount Edgecombe in KwaZulu Natal can fetch between R20k – R25k per month.

Remember, your house is your biggest investment therefore if you are going to do it, do it right!

The Editor

Pat Jewell
www.cyberprop.com

Property in South Africa

Foreign Investment in SA

2006-11-06T10:10:00.000+02:00

Who is buying property in South Africa and why?

The rumored moratorium on foreign land ownership in South Africa got many people thinking about the global community’s interest in our beautiful land and has made the desire to own a piece of Africa a topic that bears a closer inspection.

Why are foreigners investing in South Africa?

Many people have said that South Africa is the world in one country. It offers the global community many hues of beauty, a feast of cultural diversity, unsurpassed quality of life and some of the friendliest people around. From the Western Cape and the Garden Route all the way up to the magic of the Kruger National Park, South Africa is certainly a country of choice when it comes to leisure and luxury.

Beyond that, South Africa offers a very promising economic climate with our first world infrastructure and energetic emerging market status. The South African banking sector is rated in the top ten globally, and according to the World Bank Report for 2005, ease for doing business in S.A. ranks us in the top 30 countries worldwide. The stock exchange is also a fair reflection of economic capabilities with the JSE Limited rated as the eighteenth largest exchange in the world.

The economic fruitfulness of South Africa has perhaps most clearly been highlighted by the influx of significant foreign economic investment over the last two years. Some of the headlines from 2005 include Barclays’ acquisition of a majority stake in ABSA, Tata announcing its plans to invest about R1.5-billion in South Africa and General Motors with its plans to invest US$100-million in their local production facilities. In February this year British company Vodafone signed off a deal whereby it has increased its stake in Vodacom from 35% to 50% through its 15% stake in local investment firm VenFin. And the most recent foreign acquisition to hit the headlines was the purchase of the V&A Waterfront in Cape Town by a British and Dubai led consortium.

There are many reasons why foreigners would invest in S.A. – we’re a beautiful, exciting, affordable and economically growing paradise. And to top it all off, it’s relatively easy to buy a home here as foreigners can secure a purchase with a 50% deposit and have access to a 50% loan. Add to this the increased ease of transaction through on-line real estate operations, and buying property in S.A. becomes a very viable option.

Who is buying property here?

Although it’s hard to quantify exactly who is buying from where, there are some nationalities that stand out in their love for our country. At the top of the list is the United Kingdom with about 50% of foreign purchases falling under their flag. This excerpt by Kate Baddeley of World of Property gives a good indication as to why this figure is so high: “For many UK citizens, 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.”

Many British people also own property in South Africa to escape the freezing cold of the Northern Hemisphere winter and only occupy their homes for 6 months of the year. The same naturally applies to countries on the European continent which has resulted in South Africa traditionally being a place of choice for many Dutch and German nationals too.

Another and more recent trend is acquisition of property from members of the UAE. Doors have been flung open between the two countries and mutual interest has grown over the last few years. According to Alex Meyer of international real estate company Engel & Völkers Dubai, there are currently approximately 150 000 South Africans already living there, and some cite the recent tension in the region as a reason why more and more UAE members are choosing to come to the southern most tip of Africa.

The world cup soccer to be played here in 2010 has also opened up South Africa to members from soccer playing countries who may not normally have considered living here, with the brag list of global investors who follow the competition around the globe tagging along. Other countries from which South Africa has received a fair amount of property investment include: Taiwan, Nigeria, Zimbabwe, Mozambique, China, Pakistan, Taiwan, Portugal, Greece and Italy.

What are they buying?

“For many foreigners South Africa is the ideal second or holiday home. Although we compete with the South of France and Spain in this offering, our favorable exchange rate makes us an incredibly competitive destination as we offer prime real estate for a fraction of the cost” says Niël Cronje, CEO Engel & Völkers South Africa. “South Africa is also known for its ease of life and emphasis on quality over quantity. Combine that with a highly affordable exchange rate and you find that many internationals choose S.A. as the ideal place to retire – it’s laid back enough to offer them rest and vibrant enough to keep them young!” This comment by Kate Baddeley sums it up: “Whether you’re after a second home to enjoy a little relaxation or somewhere to spend the long winter months, there's something for absolutely everyone in sunny South Africa ... Imagine swapping your modest suburban semi for a luxurious property with far-reaching views, acres of lush tropical garden and a swimming pool.”

Where are they buying?

Coastal properties are high on the list of choice locations with the Western Cape still leading the way followed closely by KZN and increasingly by the Eastern Cape. Johannesburg is also viewed as a good location for city lovers with MercerHR.com having consistently ranked it as one of the cheapest cities in the world with property, food and entertainment highlighted as core elements of the value offered.

With the approach of World Cup 2010, there has already been an increase in the purchase of game lodges and bushveld stands by investors as the appeal of ‘Wild Africa’ grows in the global imagination. In preparation of the huge influx of soccer fans over that period, there has also been a rise in the purchasing and development of accommodation facilities such as hotels, B&B’s etc.

Another sector of investment is that of international buyers settling in euro-centric towns such as Grahamstown, Franschoek and Smithfield. With the colonization of S.A. by the Dutch and British and the influence of the French Huguenots, many South African towns offer foreigners a literal home away from home where they can live in houses and communities that echo the styles and traditions of their homelands.

With less than 1% of the country’s property being owned by foreigners, most people view having a neighbour who flies a different flag in their backyard a very acceptable thing. Knowing that with each foreign national investing in our beautiful country jobs are created and the economy is strengthened; many, if not most South Africans put a proverbial welcome mat at this ‘front door of Africa’ and bid the global community a pleasant stay.

Author:

Jaqueline Visser
Engel & Völkers South Africa

Property in South Africa

Investing in the future of our planet – the property market has its part to play

2006-10-10T12:19:00.000+02:00

With each step into the 21st century there comes with it an urgency to preserve our planet for a sustainable future. We’ve all heard about global warming and the greenhouse effect, but have we really applied the guidelines issued from these phenomena in our lives? For most, the urban sprawl and the comforts that come along with good housing and luxury amenities deafen us to the alarm bells sounded by ‘greenies’ and lobbyists, and have us rather turn up the aircon or switch on the heater to settle us in our self-preserved climates. Yet as stark as this may seem, it is in fact the housing industry that can, and is starting to play an important role in preserving our planet in the juggling act of sustaining a modern life on an ancient earth.

More and more we hear of eco-development projects and breakthroughs in science that are set to aid us in working together for a healthier world. But can we really assimilate this progress into our sphere of influence - the homes we live in and the ones we buy and sell? Taking a look at some of the many macro initiatives out there may give us a clearer understanding of what is happening on a larger scale and give us perspective on how our little bit can help.

In looking at the international scene, we come across some rather fantastical inventions: Take for instance PV-TV which has been developed in Tokyo by the MSK Corporation. PV-TV acts as the exterior ‘skin’ of a building and has a three-way function: a glazing element, a solar panel as well as a video display screen. The glazing element controls light for optimal internal light conditions in both cloudy and sunny weather, while the solar panel element generates energy (up to 3.8 watts per +- 10 meters). The video display screen is without a doubt the ‘fantastical’ element as it functions as a video display screen on the inside of the building, while it acts as a billboard to the outside world. While this may be a bit far fetched for us living in humble suburbia, there are initiatives and projects closer to home that may shed a clearer light on our situation.

Over the last ten years there has been a mushrooming of eco-projects across South Africa which focus on building simple houses that self-generate energy, maximize on the conservation of natural resources and cut down on waste. One such initiative is PEER Africa’s Kutlwanong, Witsand and Gugulethu projects which have seen phenomenal results in building economical and ecological homes for the underprivileged. Add to this, successful initiatives such as the Green House Project in Joubert Park and Ecocity in Midrand, and we see that on a macro scale both internationally as well as in our back yard big strides are being taken to build for the future.

Understandably most of the eco activity in South Africa is centred on low-cost housing as the need there for economic living is top priority, yet surely saving drastically on the cost of water and electricity, and working towards a healthier future planet should not be so restricted to fantastical scientific advances and dire socio-economic need? While the odd solar panel and generator seen in our neighbour’s yard are most certainly steps in the right direction, the advocacy for eco-housing in all strata of the economy is on the rise and rightly so. It’s the responsibility of all members of society to work towards a sustainable future and the middle strata between the poor among us and the multi-million corporations with PV-TV skins on their sky-scrapers have some catching up to do.

Here are a few of the many ways that you can turn your home into an eco-friendly device:

Building materials

When thinking about eco-friendly building materials, most of us turn our attention to the positive effect the material will have on the environment and our pocket, but not many of us know the important role that the making of the materials plays in an eco-friendly world. Most of the traditional building materials utilise manufacturing processes that chew up energy and natural resources at astronomical rates, the first step then in choosing the right building materials is to ensure that they’re eco-produced and then that they are eco-friendly in themselves. Some examples of building materials include:

§ Walls: For insulation as well as strength, a good source of materials are double skin bricks and earth plaster made with mud. Should you wish to paint your walls, an eco-friendly method is milk paints made from milk earth, milk glue and natural pigments.

§ Flooring: The most common natural flooring materials are recycled wood, dung and earth; but there are others that can add even more style to your home while offering strength and insulation: bamboo which looks like wood but is a highly renewable source due to its fast rate of growth, and cork which is only made from the bark of the tree and is therefore also a renewable source.

§ Insulation: Hay bale and cotton are top of the list. Building methods known as ‘sandwiching’ are also recommended where the insulation material is placed between the ceiling and, for example, a sheet of galvanized steal for optimal insulation.

Moving on from building materials, we turn our attention to structural elements which play a vital role in conserving energy and minimizing waste:

§ Vaulted ceilings don’t only add structural appeal to your home, but are highly beneficial for ventilation purposes.

§ Large windows facing north will function optimally with the winter and summer sun while a long overhang will add to their efficiency by allowing the low winter sun to come into your home while shading it from the high sun in summer. On the topic of windows, sky-lights are underestimated features that add both aesthetic appeal as well as natural light.

§ When consulting on the plumbing for your home look for ways to channel rain water and drain water for the flushing of toilets and watering of your garden.

§ Solar panels on your roof will assist with passive energy generation and solar water panels will do the same in cutting down the use of electricity to heat your water.

§ Seeing as most of the heat produced by heaters rises and is lost to the ceiling area, consider applying ‘mass heating’ principles where you generate your heat through the floor and walls thereby utilizing optimal heat distribution.

We all know that positioning your home in a northerly direction plays a vital role in its heating and cooling, but the need for eco-living has taken it a step further with some suggesting that building fully or partially underground or into the sides of hills and mountains are well worth the consideration when it comes to eco-living. Take into consideration too the position of trees in your garden as evergreens will shade your home all year long while annuals will allow sunlight through in the winter due to the loss of their leaves.

This list of ‘can do’s’ for a healthier home, neighbourhood and planet is exhaustive. From the topics touched on above, through to your choice of appliances, the home you choose to buy or live in can truly be a proactive step in the right direction. With the worldwide move to eco-living we need to keep our eye on the property market which is sure to have an influence on the sale and purchase of homes of choice.

“Solar panels and generators have been seen as highlighted selling points for homes for a while now” says Valdy Brinkman, MD Engel & Völkers South Africa. “Looking at the direction our society is heading, I won’t be surprised if we have to start adding eco-elements to our valuation lists in order to properly assess homes in a future eco-pro property market. Somewhere down the line having a home that generates and conserves its own natural resources like light , water and energy may very well not only place it as a premium property, but may even mark it as the norm.”

Already in the USA movements such as the Green Building Initiative have put in place rating systems and minimum standards for eco-development with South Africa’s Department of Housing not far behind.

With the world moving more and more towards eco-living and the issue swiftly being brought to the door step of the urban home, it may well be time to start investing in eco-principles that will place your home on the right track in our future eco-society as well as on the front foot in the property market of the 21st century.

Author:
Jaqueline Visser
Engel & Völkers South Africa

Additional Credits:

Biophile

Property in South Africa

A closer look at the increase of female property ownership in SA

2006-10-10T11:09:00.000+02:00

Lately the media has been buzzing about the significant increase of women owning property in South Africa, and with some months having passed since the initial news broke we now have a better picture of how this women looks and what she’s up to - metaphorically speaking of course!

Let us first take a look at the statistics revealed that got the property market talking in the first place:

FNB’s Residential Property Barometer, which reviews activity in the residential housing market on a quarterly basis, revealed that 20% of buyers in the last quarter of 2005 were single women, up from 15 percent in the previous quarter. And according to FNB, 25% of all women earning between R60 000 and R200 000 per annum already own a property.

ABSA, which is one of South Africa’s largest mortgage lenders, said up that up to 60% of all the homes on their book are either solely or jointly owned by females.

A study done by Mortgage SA which reviewed bonds registered from June 2005 – June 2006 showed that women buyers account for R5.5-billion of approved home loan applications, with one in four home loans granted in the first half of 2006 going to women.

Standard Bank economists have revealed that the percentage of female participants in the residential property investment market increased from 28% to 37% between 2000 and 2005.

The type of women buying property

Up until recently, most women who owned property were about 40 years old, this trend is fast changing however and institutions such as Mortgage SA have found that the age bracket of women investing in property is rapidly moving towards the late twenties/early thirties. They are largely single, entrepreneurial and career focused and if you add to this findings by Yvonne de Leeuw of property educational institution YDL, you’ll get a personality profile that fits the growing property market like a glove as women tend to be more disciplined and methodical.

The type of property they’re buying

Given the ‘single / young / entrepreneur’ profile of the women buying currently, it’s no wonder the trend for housing in this sector leans towards high security complexes and units that are low maintenance. On the investment side, Standard Bank released figures recently that showed a rise in women choosing to purchase property in the buy-to-let market.

What caused the influx?

There are a number of socio-political factors that have contributed to the rise of women in the property market. The first that comes to mind is the emerging black middle class since the ending of apartheid in 1994. Spin offs from this are factors such as an increase in the education and employment of women and legislation change where customary law and apartheid legal restrictions no longer prohibit women from owning property. Women are also far more independent, and following trends seen across the world, they are getting married later and first focusing on careers and investing in their own security for the future.

The property market itself has also opened doors for women with the property boom seeing a rapid drop in lending rates and the omission of transfer duties for properties under R500 000 increasing accessibility of property ownership significantly.

What are the results of this phenomenon?

The first flag to be raised in victory is that of economic empowerment as the property market creates an accessible arena in which to foster this healthy and important change. Once a woman purchases a home she also automatically increases her access to more bank-owned finance which opens up the world to her in many ways. We are sure to see an increase in entrepreneurial projects and small business ventures as well as micro-enterprise development and employment creation. In terms of investments, FNB has already seen a growing number of women opting for long-term investments and fixed or notice deposits with women accounting for 53% of their total investment book. Developers are also feeling the sway in the market as the increase in demand for high-density living is shaping the supply portfolio.

“I for one am very positive about the rise of women owning property in South Africa” says Valdy Brinkman, MD of Engel & Völkers South Africa “not only is it a very positive reflection on the property market, but it also signifies the great strides our country has taken to becoming more free and democratic society.”

As the face of Africa changes, so we see her personality emerge in various industries and look forward to learning more about her and she takes her place of prominence on the world’s stage.

Author:
Jaqueline Visser
Engel & Völkers South Africa

Additional Credits:

Geda
Reserve Bank

Property in South Africa

Is ownership of a property still a good investment?

2006-10-09T15:56:00.000+02:00

Theodore Roosevelt, one of the richest men of all time made the statement, “Real Estate is the basis for all wealth”.

Currently there is a lot of talk whether property investment in South Africa and also as a whole is still a good investment with advisors having conflicting views.

Some advisors would advice you that if you are already a home owner you should not put your money into more property as you are not diversifying enough. Others say that buying property is one of the safest investments that keep up with inflation.

Property ownership in South Africa is very low and volatility in the interest rates makes it difficult to buy property especially for those first time buyers. The South African Reserve Banks governor, Tito Mobweni, announced that the bank was investigating the possibility of introducing a second fixed interest rate. In the mean time it is expected that the South African Reserve bank will hike interest rates by another 50 basic points in October and with another 50 basic points in December 2006. This could influence the answer on whether ownership of a property is still a good investment.

Banking institutions in South Africa this week announced the lowest growth in the property industry in six years and according to them the outlook continues to look bleak. The same with the pricing of houses, house price data continue to reflect “softening consumer activity” with "substantially reduced enthusiasm for buy-to-let properties from investors". Experts predict a nominal year-on-year price growth of between 7 and 8% for 2007.

While the battle between the advisors continues the property industry will continue producing wealth creation. Property investments has consistently produced, created and even developed permanent millionaires over the decades than any other investing strategy in history. While some people make money in property others might find that it is not really for them.

Best of all investing in property is not just for the rich. If you do it correctly, weigh up all your options, speak to advisors and have the desire to succeed you can create wealth for yourself.

Overall people like property. Not only is it a relatively safe investment that 9 out of 10 times gives solid returns but property ownership also creates exciting investments that make the owners feel successful.

How can I use property to buy wealth?

Do some researches before you buy property. Choose your property carefully and choose a property that will boost your wealth

Pick a good location – the better the location the more you can make

Make the right choice, a house or a unit – a house on the long run gain more in value. Units on the other hand gets you a bigger rental return

Make sure that the income and tax advantages cover the cost of ownership

Pay market value – a wise property investor will not pay more for a property than what it is worth

Getting good tenants – It is important to look around if you would be able get good tenants before you buy. Suitable tenants help you pay your mortgage

Create enough passive rental income to become financially independent, this is when you are thinking of buying that next property

Have means to cope financially should something go wrong

Do not rely on getting a capital gain and

Do not sell in a hurry

According to me there is always a time to buy and a time to sell and also a time to hold. The biggest mistake is that people do not allow themselves to wait. Never be anxious or in a hurry to buy property or to sell property if you are buying for an investment. Instead, reassess your investment portfolio, your strategy or seek the advice of an advisor.

If you can get the balance right you could end up owning several properties, have them paid off over time and find yourself on that road of wealth.

The editor
Pat Jewell

http://www.cyberprop.com/

When is it the right time to buy?

2006-10-03T14:29:00.000+02:00

In my last article I addressed the issue of when is it the right time to sell and came to the conclusion that, what ever reason you might have to sell, there is not really a right time to sell. Of importance is that you make the right decision.

Next on the Agenda, when is it the right time to buy property?

It used to be considered fuddy-duddy to invest in a home before you really needed to. Buying a house was for those married and planning a family and not for the single tying them down with a house payment. Time has changed and today we see more people that would rather like to own a house than to rent and more and more people that have to make the decision on when it is the right time to buy.

If you are a first time home owner you will be aware of the struggle that most first time buyers are facing as property prices for property for sale have risen and are now starting to settle. If you are looking for that second or even third house to buy it might even be a struggle for you as buyers are finding it harder than ever to get a foot on the property ladder.

With the current property market it is very hard to know when to make a move and we saw the following happened over the last few months;

Buyers started to play a waiting game as they felt the prices of house were overpriced and awaited the fall in prices. While homebuyers ponder on whether to wait for the prices of property for sale to come down they could lose out. It remains to be seen whether waiting will pay off

Buyers delayed in purchasing due to the unpredictability of house prices

With the interest rates that has gone up and the projections that it might climb more before the end of 2007 the property market has become very unstable specifically in South Africa and buyers revised their investment portfolio

Homebuyers were cautious about the property market and weighed their options more carefully

But then there were also those that continued to buy property and for what ever reason they might have had. It could be that they had to move, had no choice or saw a good money making opportunity

One good thing about buying property when the market is busy cooling down or has cooled down is that homeowners that have property for sale offers various incentives and promotions to keep their properties moving and to reduce unsold inventories. Swimming pools, high-tech kitchens, newly painted houses, landscaping and upgraded bathrooms are but just a few of the offerings.

No matter what the decision buying property involves us in the biggest financial commitment of our lives. And no matter property prices, interest rates or what the experts have to say it is your decision and yours only.

If you have decided to go ahead and buy make sure of the following;

Location..location..location

Explore the whole area, in day time and night time

Take a good look at what services are supplied in the area

What is planned in the near future for the area for example, new developments

Look at the crime figures

Weigh up the option

Take a good look at the pros and cons

Set your purchase price

Fit your pocket!

And lastly, think long term. Get advice if you are not sure

I always believe in investing a little time and effort before the time and reap the reward at sale time.

The editor
Pat Jewell

www.cyberprop.com