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SOLE MANDATE IS BEST, SAY AGENTS
A sole agent is likely to put effort into a sale. SOLE mandates are usually recommended when selling a property but many sellers like to offer a joint mandate to two agents or agencies. There are positives and negatives to this, says Craig Mott, Western Cape sales and commercial manager for the Rawson Property Group. THE PROS ARE: • A wider pool of buyers, although not all buyers may necessarily be qualified and will need to go through the process of pre-approvals. • Two different agents mean different energies and marketing strategies. THE CONS ARE: • Chances of disputes are high and the seller is at a high risk of paying a double commission. • A lower price could be achieved as no one wants to waste time on negotiations when they could be beaten to the finish line by another agent at any moment. • Standard, minimal marketing as agents would typically invest less time and money on great marketing if they have no guarantee they’ll be able to recoup that investment if the sale goes to someone else. • Viewing times could become longer and it might be uncomfortable for the seller, especially if they are still living in the property. Nikki Elliott of Country & Coastal Properties believes that there are “no pros” to a joint mandate. “The negatives are that neither agency will spend the required amount of money – if any – on proper marketing as neither will have the assurance of a return. A sole agent will be far more focused on the sale at the best possible price in the shortest possible time. “A joint mandate will never get the same attention – agents concentrate their time and energies on a sole mandate first and foremost.” Sellers who do sign joint mandates though, she says, must also keep a record of buyers of both agencies to protect themselves against having to pay double commission.
Renting accommodation for a student can cost a fortune
The state of the economy plays a significant role in the price a property will sell for.
Economy affects property prices PURCHASING a property is generally the biggest financial investment of your life and you need to look after it and make wise choices. However, the state of the economy – which influences supply and demand in the real estate market and, in turn, price growth and property values – and various environmental factors also affect your property’s value, says Samuel Seeff, chairman of the Seeff
Property Group. “Some aspects, such as taking care of your home, might fall within your control but others, such as what is happening in the neighbourhood or economy, are usually beyond your control.” Understanding the factors means that you can take care of your property to ensure it grows in value and at the same time have a better sense of whether it is a good time to sell if you are looking
for maximum profit. Seeff says the property market closely tracks the economy and so, during an economic boom, there is usually more money around and, consequently, more buyers and sales activity, which means prices and property values tend to rise rapidly. When the inverse takes place, and the economy declines, there are fewer buyers around and sales and price growth usually drop too.
H I D D E N P I T FA L L S O F W O R K I N G F R O M H O M E
Purchasing an apartment for a student child could have more benefits than renting one.
PARENTS of students attending higher education institutions can benefit by purchasing property instead of renting for the duration of their children’s studies, says Paul Upton, head of developments at Dogon Group Properties. “Most of our public universities have residences but the demand for accommodation far exceeds the supply, resulting in thousands of students having to find alternative accommodation close by.” Explaining the cost of renting accommodation versus purchasing an apartment, he uses the example of a private residence in Cape Town. “A quick search will show R7 500 may get you a small student/ bachelor pad with a kitchenette. Some of the more upmarket private and secure residences in safe locations can ask upwards of R10 750 a month for a private room
in shared accommodation. “Over a three-year degree, parents could expect to spend in the region of R387 000 for accommodation. If the student opts for post-graduate studies you could be looking at six years, with a total cost of R774 000 – and that is not budgeting in a yearly increase in the cost of this accommodation.” This is money spent without the possibility of return and covers just one child. Upton says there are many desirable, affordable developments going up in Cape Town’s CBD which offer apartments in the region of R1 million to R1.5m, including VAT and transfer duty. “With current interest rates, this would equate to a bond instalment of about R7 640 a month – up to R10 466 per month – if one was to put down a 10% deposit.”
Homeowners and tenants must ensure they do not store commercial chemicals at their residential properties. IN THE pandemic environment, where some businesses have shut down or employees might be working from home, there is a chance that people might be storing work chemicals in the garage of their dwellings or spare bedrooms. Even if they own the property where such items are kept, it might not be legal or safe to do so, says Bertus Visser, chief executive of distribution at PSG Insure. “Properties zoned as ‘residential’ must be used in line with their official zoning. This includes both freestanding homes and town houses or blocks of flats. It is illegal to conduct a process or activity on a
property, when it is not legally zoned for that process.” It is also not permissible for high or moderate-risk materials to be stored at residential premises, he says. Examples of these materials include volatile, flammable liquids (excluding those for domestic use) and materials used in mixing of other products. “If you have brought these onto your residential premises, you are effectively ‘changing’ the occupancy status of the building. “Doing so is illegal and your insurance will not cover damage or a loss caused (or exacerbated) by the presence of these items.”
