Property360 - National Digital Magazine - 18 November 2022

Whoooo lived here

BY BONNY FOURIE bronwyn.fourie@inl.co.za

WHEN CHERYL* and her husband were searching for an estate home, their agents informed them that one of the properties they were interested in had been the site of two deaths, one of which was a suicide.

And although she had never felt concerned about deaths in homes before, she did not feel comfortable in the house.

The deaths were not the only reason for being turned off the property as there were other factors, but it was a large part of their decision not to buy it.

“I just didn’t feel comfortable in this home. It is a thatch house, with open rafters, which just made me feel uncomfortable as one of the deceased had hanged themselves.”

The couple’s decision is not an unusual one. Cobus Odendaal, the chief executive of Lew Geffen Sotheby’s International Realty in Johannesburg and Randburg, says that as a rule, buyers would not want to live in such a property.

“More often than not, it would be bought as an investment property. Selling at a deflated price often allows for major renovations which improve security, create a new vibe and diminish the stigma.”

He adds that the franchise has had “a few of these sales” in recent years, three of which he can clearly recall.

“We also see violent crimemotivated sales where, although no one died, the homeowners were traumatised enough to want to move.

“There have also been homes listed after someone committed suicide and, in one instance, there was a tragic case in which a man killed his wife and son.

“It’s always an extremely emotional situation.”

But, in many cases, the new owners will never know what has happened inside their homes. Although the sellers do usually seek advice from their agents and ask if such information needs to be disclosed, most are reluctant to do so as the general opinion is that it would push the

price down.

And there is no clear law in this regard, he says.

“Latent and patent defects must be disclosed and it’s arguably a defect if it can be proved that your original decision on whether or not to purchase the property would have been influenced if you had known that a murder had been committed in the property.

“It’s still an open question regarding what the outcome in a court case would be if a murder, having been committed in the home, was not disclosed at the time of the transaction.”

In cases where he has been aware of a murder within the home, Odendaal says he “absolutely” disclosed that to potential buyers.

“I know of a sale which was annulled right at the end after the incident had come to the attention of the purchaser.”

A 2020 article, published on realtor.com, lists many homes that were purchased despite horrific crimes occurring within them.

One of them, known at “The Los Feliz Mansion”, is the site of one of the most haunting and highly publicised murders in Los Angeles history.

It was bought for a bargain decades later.

“Early one morning in 1959, cardiologist Harold Perelson beat his wife, Lillian Perelson, to death with a ball-peen hammer, and then tried – and failed – to slay his 18-year-old daughter by bashing in her head with the same weapon… He then swallowed a lethal cocktail and was found dead in his bedroom beside the body of his wife,” the article states.

Some people believe that the mansion is haunted, and it remained mostly empty for decades. That was, until techinvestor Braden Pollock got it for a steal in 2020.

“It doesn’t affect me,” Pollock said of the home’s grisly history, shortly after purchasing it.

“It was a great opportunity to get a rare property like this at a good price.”

* Name changed

Most sellers of homes that have a disturbing history will not reveal this to their agents or buyers.

I just didn’t feel comfortable in this home. It is a thatch house, with open rafters, which just made me feel uncomfortable as one of the deceased had hanged themselves

Your home could have been the scene of a murder or suicide, but you might never know

MANY South Africans religiously pay rent every month but would rather be paying off a loan for their own home.

Naturally, they ask why they cannot be approved for a home loan when their rental payments prove that they can afford to pay one off

But do banks even consider the rent one pays when accepting or rejecting home loan applications?

The answer, says Leonard Kondowe, the finance manager for the Rawson Property Group, is yes – to a certain extent.

“Any positive credit profile is an advantage to applicants. However, the fact that you pay higher rent doesn’t necessarily mean you can qualify for a home loan with the same minimum repayment.

“This is because, when doing home loan affordability, a lot of factors are taken into account, not just disposable income.”

Echoing this, Angela Glover,

the product head at FNB Secured Lending Cluster, says: “Consistent and full payments across all your credit or financial obligations will always count in one’s favour when applying for credit, and is hugely important.”

However, it is important to remember that owning a home comes with a lot of extra expenses that renting doesn’t have.

“As the owner of the home, you are responsible for maintaining it, fixing things that are broken, covering extras like insurance, and rates and taxes.

“We recommend having extra disposable income to help with these unforeseen expenses, and some savings to act as a buffer to maintain your home. You will also need access to some savings upfront to help you cover the costs of a new home loan, relocation and, maybe, a deposit.”

Kondowe agrees: “When one is applying for a rental property, the emphasis is much more on disposable income and their credit

repayment profile. Furthermore, when a person is renting, there are some house-related expenses that are not met by them, but the owner of the property.”

He adds that when applying for a home loan, the recommended threshold is 30% of your gross income available towards repaying the loan.

“Having said this, the issue of disposable cash after meeting all other financial obligations would be taken into account.”

While you may “easily show” a higher gross income that would allow for 30% to be used to repay a bond, if your expenses are much higher, that would have an impact on the size of the home loan you can qualify for, Kondowe explains.

“Therefore, showing a track record of paying higher rental wouldn’t necessarily mean a client can qualify for a higher bond.”

More than half the country’s tenants pay R3 000 to R7 000 a month for their rental homes,

BY BONNY FOURIE bronwyn.fourie@inl.co.za

and if they have to spend the amount on a bond repayment each month, the home loan value they would be granted – if the affordability criteria are met –would be R315 000 and R738 000 respectively, Kondowe says.

The rental bracket of R7 000 to R12 000 has long been known as the “sweet spot” as these tenants are the most reliable when it comes to paying their rent in full and on time.

But if they had to use the same amount to pay off a home loan every month, he says, the bonds they would qualify for – based on the prime rate and repaid over 20 years – would be:

R7 000 rent – R738 000 home loan

R7 800 rent – R823 000 home loan

R10 000 rent – R1.054 million home loan

R12 000 rent – R1.265m home loan

R15 000 rent – R1.58m home loan

✦ R20 000 rent – R2.108m

home loan

As a general rule of thumb, Glover says, your repayment is about 1% of your home loan, meaning that a R500 000 home loan will need a monthly repayment of R5 000 over 20 years.

“Of course, this varies, depending on your interest rate and the prime lending rate at any point in time. You can use online mortgage calculators to get to an exact amount, using different interest rates, repayment terms and deposit amounts.”

You will also need to consider that a home loan repayment of the same amount you pay in rent may not get you the same type of property. For example, while you may be paying R7 000 rent for your three-bedroom home with a garden, paying that amount on your bond means you have qualified for a home loan for what may buy only a twobedroom apartment.

RONDEBOSCH R1,15 MILLION

R1,68 MILLION

RONDEBOSCH R1, 5 MILLION

RONDEBOSCH R1,95 MILLION

RONDEBOSCH R3,5 MILLION

Large One Bedroomed pied-à-terre Apartment with Lounge and Balcony & Stunning Mountain Views. 24HR Security Shareblock Complex. Fitted Kitchen. Shower Bathroom. **Garage. **Catering & Cleaning Services. **Walk to Shops, Baxter Theatre and Library!

Security Complex above Main Road. Large Three Bedroomed Apartment (127m²) with mountain views. Fitted Kitchen and Lounge with Balcony. *Plus Garage. *Close to UCT, Schools, Shops and Transport.

ROND EBOSC H R1, 5 M I LL IO N

Spacious North-Facing Two Bedroomed Apartment with Lounge and Balcony with Mountain Views. Bathroom with Shower over Bath. Fitted Kitchen. *Garage. *Walk to Shopping Centres, Restaurants, UCT and Transport.

Small Security Complex above the Main Road. Large modernised Bachelor converted to One Bedroomed Apartment (46m²) with Kitchenette, Built-in Cupboards and Balcony. Shower Bathroom. Walk to UCT, Jammie Shuttle, Shops & Transport.

Small Security Complex. Two Spacious Bedroomed Apartment with lounge leading to large Balcony. Fitted Kitchen & Full Bathroom. *Parking Bay. Close to Dean Street Shops, Restaurant and Jammie Shuttle Stop.

Spacious North-Facing Two Bedroomed Apartment with Lounge and Balcony with Mountain Views. Bathroom with Shower over Bath. Fitted Kitchen. *Garage. *Walk to Shopping Centres, Restaurants, UCT and Transport.

Spacious Three Bedroomed Apartment (123m²) above the Main Road in pretty garden setting. Fitted Kitchen and Bathroom. *Parking Bay. Walk to UCT, Jammie Shuttle, Main Road Shops & Transport.

Security Complex Ecklenberg in pretty garden setting. Spacious Three Bedroomed Apartment (200m²) with Stunning Mountain Views. *Kitchen, Dining Room, Sun Room, Two Full Bathrooms, TV Lounge & Laundry Room. *Tandem Garage. *Close to Shops & Transport.

RONDEBOSCH R5,3 MILLION CAVENDISH HEIGHTS R2,1 MILLION

Charming Two Bedroomed Apartment (95m²) with Fitted Kitchen open to Dining Room / Lounge and Balcony with views. Full Bathroom and Sep Toilet. **Covered Parking Bay. **Walk to Kingsbury Hospital, Library, Restaurants, Jammie Shuttle, Shops and Transport!

WHITEHALL COURT R1,35 MILLION

Charming and Large Modernised Three Bedroomed, Two Bathroomed Apartment with Entrance Hall, Lounge and Balcony. Modern Fitted Kitchen with built-in Oven, Hob and Extractor Fan. Close to Kelvin Grove Club, Newlands Cricket Stadium, leading Schools, Shops and Transport.

Academic Mile! Security Complex set in pretty garden setting. Bachelor Flat with open plan living area and ample cupboards. Galley Kitchenette and Bathroom with Bath, Toilet and Basin. **Walk to UCT, Jammie Shuttle, Baxter Theatre, Restaurants, Shops and Transport.

RONDEBOSCH FROM R895,000

Charming Two Bedroomed Apartment with Fitted Kitchen (with built-in Oven, Hob and Extractor Fan) open plan to Lounge and Balcony. Two Bedrooms with Ample Cupboards. Bathroom with Shower over Bath, Toilet and Basin. **Plus Carport. Academic Mile - Walk to UCT!.

ROSEBANK

Pied-à-terre Bachelor Apartment in Small Road. Security Complex with Lift and Lovely Views! Open plan Living Room with Built-in Cupboards. Fitted Kitchen and Bathroom with Shower. *Plus and Balcony. Shower Bathroom. Walk to Rondebosch Shops, Doctors Rooms, Baxter Theartre and Transport.

DOGON GROUP PROPERTIES

Atlantic Seaboard Office 021 433 2580 thekings@dogongroup.com www.dogongroup.com

RHONDA RAAD PROPERTIES

Cape Town Office 082 448 7795 Email: rrpsales@mweb.co.za www.rhondaraadproperties.co.za

SHELLEY RESIDENTIAL

KZN

Office 082 412 4463 Email: hello@shelley.co.za www.shelley.co.za

DOGON GROUP RENTALS

Sea Point Office 021 433 2580 enquiries@dogongroup.com www.dogongroup.com

CAPE WINELANDS Nicho 072 601 1772 Hannes 066 476 1890 sales@aandewijnlanden.co.za viognier.aandewijnlanden.co.za

SERENITY

HILLS ECO ESTATE

KZN, South Coast Office 073 142 8292 Email: home@serenityhills.co.za www.serenityhills.co.za

DOGON GROUP PROPERTIES

Southern Suburbs, Claremont Office 021 671 0258 southernsuburbs@dogongroup.com www.dogongroup.com

PETER MASKELL AUCTIONEERS

KZN

Office: 033 397 1190 Email: info@maskell.co.za www.bidlive.maskell.co.za

WYTHAM ESTATE

KENILWORTH, CAPE TOWN 063 707 2886 sales@wytham.estate www.wytham.estate

DOGON GROUP PROPERTIES

Western Seaboard Office: 021 556 5600 or 021 433 2580 enquiries@dogongroup.com www.dogongroup.com

BALWIN PROPERTIES

Ballito

Office 084 788 1020 Email: michelle@balwin.co.za www.balwin.co.za

www.iolproperty.co.za

PAARL, BOLAND, CT

Werner Pieters 082 363 6089 Marius Pieters 082 566 0853 sales@grootparysestate.co.za www.grootparysestate.co.za