2
O C T O B E R
2 0 2 0
1
2
2
O C T O B E R
2 0 2 0
1 9
&
ASKED
S E P T E M B E R
2 0 2 0
2
ANSWERED
Experts tell you what to do if the pandemic has left you short of money to repay your bond.
IF IN TROUBLE, ASK FOR HELP People in danger of losing their homes should not run and hide but should rather approach the banks which have systems designed to aid clients Q: I KNOW that everyone is talking about how great the interest rate cuts have been but can I wait it out a bit longer before committing to buying a property? A: The shockingly low interest rate of 7% offers extraordinary opportunities for investors, particularly in sectors like property. The favourable rates are here to stay for at least the next 18 months (if not longer) but the current property buying opportunities will not last for long. We’re already seeing price growth on the property market thanks to the increased demand driven by these amazing interest rates. Buyers are getting incredible bargains now but they won’t last forever. I really can’t overstate the importance of acting sooner rather than later if you want to make the most of today’s incredible property investment opportunities. – Schalk van der Merwe, franchisee for the Rawson Properties Helderberg Group
Q: We may be in danger of losing our home and it is really scaring us. We have not missed a payment yet but we are probably going to start falling behind very soon. We do not even want to contact our bank as we are so stressed out. What advice can you offer us? A: If you are concerned that you could find yourself in a precarious situation, there are several options to explore immediately. You can consider renting your property, restructuring your loan over a longer term, or, if you have problems repaying multiple loans, you could consider debt counselling. Rather than changing your cellphone number and hiding from your creditors, it’s far better to approach the bank and have an honest conversation about the situation you find yourself in. You may decide there is no option but to sell your home. This way, you are likely to get a better price and avoid going through the stress of a legal process and associated costs. Some banks have developed their own systems and tools to help their customers to
sell their properties and could support you in the process. – Sarah Nicholson, commercial manager at JustMoney Q: My father-in-law is facing having his home repossessed and is very anxious about the whole thing. What should he expect? A: Should you receive a section 129 notice, this is the final step before the legal process begins. It will inform you that you are in arrears for a certain amount at a given date. This notice is issued in terms of section 129 of the National Credit Act. See this as a last chance to take action and prevent your creditors taking legal action. Avoid delays at this stage as you have only 10 days to apply for debt review. This is the process whereby a debt counsellor assesses your outstanding debt and implements a restructured debt repayment plan. If this process fails, the bank can ask its legal team to get a summons from the high court or magistrate’s court. This is delivered by a sheriff. The bank then has to formally
apply to court for the right to auction your property. A judge must check that legal and fair processes have been followed, taking into consideration whether this is the primary residence of the debtor, as well as alternative ways of settling the judgment debt. Banks must show evidence of the property’s market value, the amount owing on the bond and rates and taxes. It is worthwhile checking that this information is all correct. If the sale has to go ahead, the money goes towards covering the outstanding amount on the loan and costs. Whatever remains will be paid to you. You can only be evicted from a house sold on auction when the property has been transferred to a new owner. You cannot be evicted before a transfer has taken place. – Sarah Nicholson, commercial manager at JustMoney Q: For property investors either new to the game or looking to capitalise on future trends, where are good sectors to direct our money? A: Student or communal accommodation is one sector bound to offer good future returns. People will continue travelling into cities for education and demand for rentals by the room is rising. Suburban homes offering security, gardens and garages will also be good bets as they can be used for small home schools and crèches, the demand for which is also increasing. Other sectors investors should consider include: ◆ Commercial properties in the CBD: space can be reconverted into urban farms and apartments. ◆ Industrial properties that have shut down: industrial parks can be converted into urban farms and maker spaces. ◆ Data-rich homes for hot desking: these can also be tiny and container homes. – Merle O’Brien, principal futurist and head of foresight and innovation at Creation iLabs
1 9
Letter from the editor WITH level 1 restrictions being introduced, we are hoping some of the economic devastation of
S E P T E M B E R 2
2 0 2 0
O C T O B E R
2 0 2 0
Hints of seller’s market below R1.5m Experts predict housing stock shortages in lower end of market as a pandemic-caused pause in building developments comes into effect BY BONNY FOURIE bronwyn.fourie@inl.co.za
hard lockdown will be overcome. It has been an incredibly difficult journey since our lives changed on March 27. Now no one quite knows what to expect – can we, for instance, possibly hope to see a good holiday season as our borders and airports reopen for international tourism? Will properties in the Airbnb market be filled again; can hotels hope to reignite themselves after lying fallow for so long and what about short-term lets? Only time will tell how the reopening of more of our economy will affect these hard-hit industries. People in the building industry say they are working flat out 24/7 to catch up for the period they were locked down. Some smaller developers have been flattened and have not been able to rise again, selling off prime land at good prices to the bigger players, who were able to
STOCK SHORTAGES in some sectors of the property market could be felt in the coming months after residential property development, and the number of new plans passed, halted during the Covid-19 lockdown. The severity of such supply constraints, however, could be overcome by a number of external factors, property experts say. Data from Statistics SA reveals that the value of recorded residential building plans passed decreased by 48.1% in January to June 2020, compared with the same period last year. Limpopo suffered the biggest decline at 59%, followed by Gauteng at 54.8%, Eastern Cape at 51.3% and KwaZuluNatal at 43.1%. Although the Western Cape suffered a relatively moderate 31.6% decline in value (third lowest), this amounted to R4.69 billion – second only to Gauteng’s R11.21bn drop. Gerhard Kotzé, managing director of the RealNet estate agency group, believes the decrease in residential building plans passed will result in a “big drop” in the number of new homes delivered to market in 12 to 18 months. And as all construction came to a standstill during the lockdown, Stats SA figures show this to have caused a 70% drop in the number of homes that were actually completed between January and June, compared to the first half of 2019. “So, right now, there are already far fewer new homes available than there would usually be, at exactly the same time as the residential market is experiencing a surge
in demand in response to the lowest home loan interest rates in almost 50 years. “First-time buyers are especially active, currently accounting for up to 70% of new home loan applications, and this is causing existing lower-priced stock to be absorbed at a rapid rate.” Kotzé says this is already triggering a shift towards a sellers’ market in the underR1.5m price category. Herschel Jawitz, chief executive at Jawitz Properties, agrees that the mid-tolower sectors of the residential market have been busiest in terms of new residential developments over the past few years but says it is too early to know whether the decline in completed developments will result in supply shortages. The delay in the number of building plans passed, though, might be more telling as these give a longterm view of the number of new units that will be coming to market. “Currently, there is still an oversupply of developments on the market, or coming to it, so even if there was a slowdown in new units, it will be a while until the oversupply is taken up.” Master Builders South Africa says security estates for younger families form the bulk of new residential property developments each year and this sector could face supply shortages. However, shortages could also be counteracted by the number of families who are emigrating, according to executive director Roy Mnisi. “There are many available residential properties for sale, particularly in the upper
market, and that should be enough supply for the foreseeable future. However, (the drop in completed developments) may adversely affect developmental planning and create a gap.” But the residential property market that will suffer most due to low economic growth and Covid-19 will be the second and holiday homes market, Mnisi says. In Cape Town’s southern suburbs and False Bay areas the most popular market segment for new developments is the entry level bracket from R900 000 to R2.5 million, says Lew Geffen Sotheby’s International Realty co-principal Claude McKirby. However, there should not be any impact on stock levels as most of the developments in this price segment are sold off-plan and will only go to construction once the prescribed minimum sales levels have been achieved. “Many of these developments in the construction phase still have units available for sale as not all the units have been sold off-plan.” He adds that there are still completed development units for sale from the original developer from before lockdown. While there could be stock shortages in these markets in the Winelands, says Chris Cilliers, chief executive and co-principal of Lew Geffen Sotheby’s, the market will also be fed by people needing to sell due to financial constraints. “There is a feeling that there could be a lot of properties coming into the market once owners have exhausted the payment holidays from the banks.”
stay afloat. Despite all this, people still need a roof over their heads. And the latest FNB barometer,
Some sectors of the property market might suffer stock shortages due to the lockdown. PICTURE: ALFRED DERKS
which shows an upward trend in home buying, bodes well for the industry. People still need to rent, buy and sell their homes. In other words – life goes on! Unbelievably. However, it will probably be only in months to come – maybe even years – that we will get a better idea of how the buying, selling and renting game has been affected and how we, as a nation, have been affected by strategies to combat the pandemic. I hope by next year we’ll have a happier story to tell. Warm regards Vivian Warby vivian.warby@inl.co.za
AFRICAN NEWS AGENCY
DISCLAIMER: The publisher and editor of this magazine give no warranties, guarantees or assurances and make no representations regarding any goods or services advertised within this edition. Copyright ANA Publishing. All rights reserved. No portion of this publication may be reproduced in any form without prior written consent from ANA Publishing. The publishers are not responsible for any unsolicited material. Executive Editor Vivian Warby vivian.warby@inl.co.za To advertise here: margi.marsland@inl.co.za; shevon.philander@inl.co.za
33
4
2
O C T O B E R
2 0 2 0
Improver
Outdoor Living
EXPERTS ANSWER YOUR HOME QUERIES
Love your house into a home
Loads of Home Improver tips, tricks, advice, DIY things to do, gardening and the latest outdoor trends for your house in this month’s edition. Click on this ad to access your free monthly digital magazine
2
O C T O B E R
ESTATE AGENTS A special offer to
Estate Agents during this Lockdown period FOR
ONLY R495PM Excl Vat.
THIS PACKAGE INCLUDES THE FOLLOWING: • Unlimited listings for sale and to let • Unlimited uploads of virtual tours with a Youtube URL • Unlimited access to our showhouse facility • Pay as you go month-to-month advertising • No charge for leads • Branding - your agency logo on each listing to promote your brand • 2 Featured listings each month • Access to the system backend to track your leads
Contact LEIGH to get your listings visible 074 991 3373 or leigh@property360.co.za www.property360.co.za
2 0 2 0
5
6
2
O C T O B E R
2 0 2 0
Moses Mabhida Stadium in Durban. PICTURE: RIAAN MYBURGH
what’s new in
KwaZulu-Natal TO ADVERTISE HERE
Anne Reddy
0 8 2 8 2 8 0 0 1 0
Larissa Marks 0 7 6 2 3 1 1 0 8 9 advertising@property360.co.za
anne.reddy@inl.co.za larissa.marks@inl.co.za w w w. p ro p e r t y 3 6 0 . c o . z a
2
O C T O B E R
2 0 2 0
7
8
2
O C T O B E R
2 0 2 0
We are local, we are about helping our clients and our community. We are unique. We donate 1% to charity from every sale. www.kloofproperties.co.za ON SHOW SUN 2-4PM
We offer the following services: Residential Sales & Letting, Commercial Sales & Letting, Property Management, Holiday Letting.
ON SHOW SUN 2-4PM
SOLE MANDATE
DAWNCLIFFE R1 695 000
SOLE MANDATE
DAWNCLIFFE R2 395 000
ABOVE THE ROAD DBL STOREY 3 beds, 2 baths, kitchen + scullery, dining 4 beds, 2 baths + guest toilet, 2 lounges, study, room, lounge, s/qrts, single garage. d/room, f/f kitchen. Garden, pool, tennis court, Boards from M13 Exit 13, Dudley Road into s/qrts, dbl lug. Lancaster Terrace. Brds c/o Church / Langford, Lancaster TRACEY CLEGG 079 798 8874 Terrace into Spring Grange Rd. Web ref: 109168258 OLIVIA 073 288 3010 • Web ref: 109159513 ON SHOW SUN 2-4PM
SOLE MANDATE
SOLE MANDATE
KLOOF R2 500 000
KLOOF R2 200 000
BLUE ZONE: HOUSE + FLAT Panhandle, 3 beds, 2 baths, f/f kitchen + scullery, 2 lounges, ent room, pool, s/qtrs, dbl lug + 1 bed flat. Brds from Everton, Meadow Rd into Meadow Lane. PIER DUNCAN 072 191 0218 Web ref: 107775074
HOUSE + LAND 3 beds, 2 baths, f/f ktichen, dining room, 2 lounges, pool, braai area, ent room (easy flatlet conversion), dbl lug +++ Land. OLIVIA REYNOLDS 073 288 3010 Web ref: 109116006
2
PRIME ESTATES
OFFICE 031 767 1217 www.primeestates.co.za
VIEW BY APPOINTMENT
O C T O B E R
2 0 2 0
9
SUE DINNIE 082 491 5822 www.capcubed.com
NEW SOLE MANDATE
CRESTVIEW R1 735 000 NEGOTIABLE
LOOKING FOR SOMETHING DIFFERENT? This unique, spacious family home has huge central living area, 3 double beds, 2 baths, guest loo, granite kitchen, laundry, covered view verandah, double garage,workshop or home office, and sparkling pool. On level, fenced 3486m2 garden with space to build a cottage. Just minutes from Watercrest Mall. To view call ANN 072 425 9411 • Web: 104781703 VIEW BY APPOINTMENT
HILLCREST R2 275 000
RETIRE IN STYLE @ GREEN MEADOW COUNTRY ESTATE - PERFECTLY POSITIONED & PET FRIENDLY! I have 2 garden simplexes available - both owners emigrating. Each has 2 bedrooms, 2 bathrooms, open plan living area, extended sun-lounge, and a single automated garage. New Clubhouse and heated pool, set in beautifully landscaped gardens, library, hairdresser & gym. Fun activities held. Call DEBBIE 082 903 2024
10
2
O C T O B E R
2 0 2 0
2
O C T O B E R
2 0 2 0
11
12
2
O C T O B E R
2 0 2 0
2
O C T O B E R
2 0 2 0
13
14
2
O C T O B E R
2 0 2 0
2
O C T O B E R
2 0 2 0
15
16
2
O C T O B E R
2 0 2 0
AUCTIONS There is a commonly held belief that property auctions are a good place to pick up a bargain because auctioneers often handle sales in execution / property reposessions / liquidations. Our dedicated auction section allows auctioneers to showcase their properties to buyers looking for these bargains. THE AUCTION SECTION OF THE PORTAL OFFERS: • Advice to buyers • Auction news • Recommended auctioneers to deal with • Diary of upcoming auctions Contact LEIGH to get your listings visible 074 991 3373 or leigh@property360.co.za
www.property360.co.za
2
O C T O B E R
2 0 2 0
17
18
2
O C T O B E R
2 0 2 0
2
O C T O B E R
ADVERTISING PLATFORM We provide a complete advertising solution to reach subscribed property buyers Access the following advertising platforms under one account: • Property Portal Online Listings • Banner Slots • Featured Agent Slots • Digital Magazine • Newspapers • Cape Community Newspapers • Brand Editorial Content • Social Media Reach • Weekly Newsletter
We also do HOME LOANS A mortgage origination solution to assist your buyers, so send your clients our way and you can advertise your listings on our portal for… FREE Best interest rates from all major banks and speedy approvals Contact us to package the right deal for you help@property360.co.za
2 0 2 0
19
20
2
O C T O B E R
2 0 2 0
what’s new in
Gauteng
PICTURE: KEENAN CONSTANCE
TO ADVERTISE HERE Margi Marsland 084 591 9122 Shevon Philander 078 422 4925 Anne Reddy
0 8 2 8 2 8 0 0 1 0
Larissa Marks 0 7 6 2 3 1 1 0 8 9 advertising@property360.co.za
Green Point Mouille PointStadium lighthouse at night. Picture: Mujahid Safodien
margi.marsland@inl.co.za shevon.philander@inl.co.za anne.reddy@inl.co.za larissa.marks@inl.co.za w w w. p ro p e r t y 3 6 0 . c o . z a
2
O C T O B E R
2 0 2 0
21
22
2
O C T O B E R
2 0 2 0
what’s new in the
Western Cape Fish-eye view of Cape Town. PICTURE: CAPTURESON
TO ADVERTISE HERE Margi Marsland 084 591 9122
margi.marsland@inl.co.za
Shevon Philander 078 422 4925
shevon.philander@inl.co.za
advertising@property360.co.za
w w w. p ro p e r t y 3 6 0 . c o . z a
2
O C T O B E R
2 0 2 0
23
24
2
O C T O B E R
2 0 2 0
2
O C T O B E R
2 0 2 0
25
26
2
O C T O B E R
2 0 2 0
2
O C T O B E R
2 0 2 0
27
28
2
O C T O B E R
2 0 2 0
2
O C T O B E R
2 0 2 0
29
30
2
O C T O B E R
2 0 2 0
2
O C T O B E R
2 0 2 0
HOME LOANS
Now is the time to find out how much you qualify for as the repo rate is at a record low. Celestine is always available to take your call and guide you through the process from application through to registration. She will pre-qualify you for a home loan before you start house hunting. A pre-approval is very useful when house hunting as it helps the agent narrow down which properties to show you and not waste unnecessary time. Complete one application and she will apply to all 4 major banks and negotiate the best interest rate on your behalf. Call her for quick and efficient service Please feel free to contact Celestine at any time on 084 559 1786 | celestine@property360.co.za
www.property360.co.za
31