SA property in 2010

 

 

A: “With factors such as the reduced interest rate, stability in the market and a limited window of opportunity to cash in on excellent property deals, it stands to reason that now is definitely the time to invest. The future will certainly bring good and steady return on investment for property owners. 2010 will be the year of opportunity. Positive sentiments surrounding not only the FIFA World Cup but also a fresh start for many as the wheels of the SA economy begin to turn once more, will be a welcome boost for the real estate market.

 

We have said throughout 2009 that the ‘missing factor’ was the availability of finance and that the demand has always been there. We believe that 2010 will bring slow but steady growth in house prices, probably in the upper single digit range. We are very encouraged by the recent show of interest in property investment by consumers across the country. Dramatic increases in sales performances over the holiday period have been achieved in the KZN North Coast region with Umhlanga, Durban North and Ballito amongst the top performing areas in the country. Similar sales figures have occurred In the Western Cape and we believe that these will transcend to the rest of the country as the year marches on. I believe that the property investment window of opportunity is still open. View your purchase as a long term capital investment that will yield sound returns over time. Be selective about exactly what you are looking for but don’t let that ‘window’ close on you.” 

 

 

 

A: “With South African banks granting 100% home loans again, South Africans are slowly but surely starting to buy property. There are a number of factors that buyers need to consider before making one of the biggest investments of their lives:

 

Shape, location and size of stand: A double-storey home may look attractive now, but how practical will it be once you start a family or as you grow older? Also consider whether or not you will be able to make additions to the home, especially if you plan on inviting your elderly parents to come and live with you one day. 

 

Damp: Water damage or rising damp are important aspects to look out for. Poor waterproofing can be expensive to remedy. Inspect the property properly and look out for scaly or ‘bubbly’ paint that conceals damp ceilings or walls. Get a qualified plumber to investigate if you are unsure and stipulate exactly what needs to be repaired by the current homeowner in the contract before you buy the property.

 

Roof: Look out for deformation along roof lines as it may be a sign of structural failure. If in doubt, ask a structural engineer to inspect it for you. This is especially important if you intend to buy property outside of the rainy season making it difficult to spot problematic and/or occurring leaks. 

 

Structural Failure: Dennis Kriek, Director at Esaba Consulting Engineers says: “Although some cracks are insignificant, structural cracks could be a sign of foundation failure and/or severe structural problems. Extreme polyfiller patch work in or outside a home is another warning sign as most of the time it is indicative of occurring structural problems”.

 

Approved plans of buildings on property: The home you intend to buy should be zoned according to the approved zoning category of the stand,” says Kriek. Existing servitudes, pipelines and cables should also be present on the approved building plan.

 

The swimming pool and its equipment: Ensure that swimming pools aren’t leaking and that pumps and other equipment like chlorinators are in good working order.

 

Electrical wiring: Although the seller is obliged to provide the buyer with an electrical compliance certificate, it would be worth your while to get an independent electrician to inspect the wiring for you, especially in older homes.

 

Crime rate and burglar proofing: Don’t just take the seller’s word! Ask for crime statistics at the local police station. Know the safety challenges of the area you are about to invest in.”

 

 

 

A: “Price: A home that is correctly priced will sell within reasonable time. First establish what the market is willing to pay before you price your property. Homeowners are able to access deeds office data which will assist them in comparing prices of properties recently sold in the area. 

 

Location, size and amenities: Compare your property to the properties sold in your area by taking location, size and amenities into consideration. Also compare your property to other properties currently for sale in your area. But remember, the asking price published in advertising material is very often different from the actual price achieved. Location is the most important aspect to take into account when pricing your property as the address of the property will always remain the same! The size of your property will also play an integral role as buyers will use this to compare your home to other homes available in more or less the same price range. Amenities will also play a role, but seeing that tastes differ, you can expect each potential buyer to picture his/her future home differently.

 

Maintenance: Ensure that your swimming pool is in excellent condition and that your chlorinator and equipment are in working order. Repair items such as leaking taps and broken shower doors as small things like these can make a very bad impression. Fix all leaks, especially when it comes to the roof. If you are not in a financial position to do so, inform your estate agent and the buyers of any defects you’re aware of to prevent legal action from being taken at a later stage.

 

Staging your home: This has proven to be a very successful selling aid abroad. The whole idea is to get rid of clutter and unwanted accessories and/or furniture that can possibly prevent buyers from visualising their own possessions and/or lifestyle in your home. Not all people are animal lovers. Move your puppy’s sleeping pillow out of the spare room. The same goes for pet food and water bowls in kitchens. Rather welcome buyers with the aroma of freshly grounded coffee or the smell of freshly picked flowers in your home.

 

Know your buyer: Ask your estate agent to determine the ability of the buyer to obtain a bond and/or put down a deposit on your home. By doing so, you can speed up the purchasing process once an offer to purchase has been signed and avoid the frustration of having to wait for the buyer’s bond to be approved.”