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P R O P E R T Y IF YOU sell before finding a new home you must have a plan for temporary living. PICTURE: Ketut Subiyanto/Pexels
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Lowveld estates attracting high interest
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HE MPUMALANGA Lowveld has found increasing favour with home buyers from all over South Africa in the past two years and is home to four of the 10 wildlife estates recently named by New World Wealth as South Africa’s best. “Over the past year especially, we have seen an increase in home purchases in most of the estates close to Nelspruit and White River,” says Ramona Grimbeeck, principal at Chas Everitt Lowveld. “And while most buyers are local executives and professionals, a significant percentage are
people relocating from Gauteng and elsewhere in the country. They are being encouraged to move by the increasing trend towards remote work which, for many people, means they can move away from the big cities and run their companies or do their work from home, rather than having to go to an office every day.” Luxury estates such as Leopard Creek, Mjejane, Likweti and Elephant Point, which are all on New World Wealth’s Top 10 list, are a big drawcard for high-end buyers keen to own homes in the world-famous wildlife zone close to the
Kruger National Park, and to be able to fly in and out via the KMI airport if necessary, she says. “In addition, the area boasts some very sought-after schools. “The subtropical lowveld climate is also excellent, especially for retirees, and most homes are only 30 to 40 minutes’ drive from a Kruger National Park entrance. As the capital of Mpumalanga, Nelspruit also houses most of the provincial government offices and employees, and also offers a good mix of property types and excellent value for money across the board.”
SELL YOUR HOME AS EQUITY FOR A NEW ONE SELLING your property before finding a new home will increase the chances of locking down your dream home when you find it. However, it could also lead to a rushed decision to limit the amount of time spent in whichever temporary living situation you have set up, says Adrian Goslett, regional director and chief executive of Re/Max of Southern Africa. This is why many choose to find a home first before listing their home to sell. He explains: “For those who chose to sell after they have found their dream home, there will be a suspensive condition in your offer to purchase that states that the sale of the home will only go ahead once your property has been sold. “In situations where there is more than one offer on the table, sellers may, therefore, choose to reject your offer in favour of a buyer who already has the necessary financing available.” Those who are relying on the sale of their home to cover the bond registration fees and transfer duties as well are reminded that these costs must be paid upfront. “To acquire the funds before the house has been sold, homeowners could set up a bridging finance option on their current home loan, which will be based on the equity available on the property, the seller’s credit record and the expected cash inflow. When setting this up, keep in mind that there will be interest payable and administrative costs involved, so be sure to budget for these extra costs,” Goslett says. Those who would like to streamline the process could choose to sell their home before placing an offer on a new home. However, he advises homeowners to have a back-up plan for a temporary living situation to ensure they have a place to stay should they be unable to find a new home before they need to move out of their current property. According to Re/Max of Southern Africa, possible temporary living options include: • Paying occupational rent to remain in your current home which you have already sold to avoid moving costs and the hassle of moving twice. • Staying with a friend to avoid paying rent or as a more affordable rental solution. This does mean you will have to move more than once and you will also have to pay for a storage unit in which to keep your furniture. • Finding a short-term rental. This includes the risk of not knowing how long you need to rent a space for, as well as moving costs and possible storage unit costs if you’re renting a smaller space that cannot accommodate all your furniture.
THE MPUMALANGA lowveld has found increasing favour with home buyers from all over South Africa and is less than an hour from the Kruger National Park. PICTURE: FALCO/PIXABAY
THE GOVERNMENT’S Flisp subsidy is aimed at closing the gap in the home buying market. PICTURE: RODNAE PRODUCTIONS
This is what you need to know about the Flisp subsidy
THE GOVERNMENT-introduced Finance Linked Individual Subsidy Programme (Flisp) looks to close the gap in the home buying market and South African first-time home buyers are eligible to apply. However, they need to have a single or joint gross monthly household income of between R3 501 and R22 000 to qualify, says Jackie Smith, head of product for ooba Group. Flisp was first introduced in 2012, but the recent budget speech announcement by Minister of Human Settlements Mmamoloko Kubayi-Ngubane that it would be delinked as a “home-loan only” option, coupled with an increase in the annual tax-free threshold for persons under the age of 65 (from R87 300 to R91 250), is set to fast-track homeownership for many hopefuls. “These announcements are welcomed by the affordable housing market, especially our qualifying customers. Ensuring that a subsidy is no longer dependent on a home loan is exactly what the market needs. “The subsidy ranges from R27 690 to R121 626 for an existing home or a home
WINTER IS AS GOOD A TIME AS ANY TO SELL OR RENT YOUR PROPERTY
IT MIGHT be useful to highlight features which make the home cosy in winter and showcase sunny areas. PICTURE: MAX VAKHTBOVYCH/PEXELS
that still needs to be built (off-plan). “In addition, homeowners who purchased their first home in the past 12 months can also apply, should they meet the criteria,” Smith explains. She says those purchasing their first home and requiring a mortgage can work with ooba Group to determine their eligibility through a prequalification. “Here, we check their credit score, make sure their paperwork is in order and determine what finance amount they will be approved for by the banks (and the government) prior to submitting the paperwork to the National Housing Finance Corporation.” Qualifying criteria for Fisp are: • Proof of income. • Proof of an approved home loan. • Signed agreement of sale. • A building contract and approved building plan (where applicable). • A South African identity document. • Identity documents for all occupants. • A marriage certificate (where applicable).
AS PEOPLE who love the outdoors, South Africans are not terribly put off by winter when it comes to looking for their next home to buy or rent, says Samuel Seeff, chairperson of the group. While there are seasonal trends and sales dips over the winter school holiday season in some areas, there is no overall trend, and each area differs. Some might even see higher sales over winter, depending on what is happening in the market and economy. There are many compelling reasons for putting your house on the market over winter and just as many reasons why buyers and tenants will be looking over this time, says Seeff. Preparing your home for the winter market The objective should always be to ensure buyers and tenants fall in love with the property from the outset by presenting it in the best possible condition. “Get your maintenance and painting done now, especially if you live in the winter-rainfall areas, such as the Western Cape. “Do not neglect the garden which must be clean, trimmed and neat. Ensure bins and any unsightly items are removed. Do not forget to clean and neaten outbuildings and garages.” He says it might be useful to highlight features which make the home cosy in winter such as insulation, seals around doors and windows and specific heating fixtures such as fireplaces. Showcasing sunny areas or a sunroom is another good choice to highlight during winter.
