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It is crucial to list your house at the right price, whether selling or buying. PICTURE AVI WAXMAN
If I failed to buy last year, have I lost out? Experts answer the queries of people negotiating the property market
Q: My new year’s resolution for 2020 was to finally become a homeowner. But with Covid-19 impacting my salary, that did not happen. I worry now that I may have missed my chance to take advantage of the low interest rates. Do you think I will have missed out much if I’m able to buy only this year?
12% on to these costs for unexpected expenses, such as maintenance emergencies and vacancies. Landlords will also need to determine if this price is within range of the current market rental value of their properties. – Ben Shaw, chief executive of HouseME
A: The negative state of the economy is likely to lead to an increase in the number of home sales which, in turn, will hinder property price appreciation. Until our economy recovers from the pandemic, I predict that house price appreciation will remain low for 2021, reflecting a national average of roughly 2% to 3% growth year on year. However, over the long term, house price appreciation will strengthen, and homeowners will stand to benefit greatly by their decision to enter the property market now while prices are pegged back. – Adrian Goslett, chief executive of Re/Max of Southern Africa
Q: I am buying a home but am worried about losing out at the negotiation stage. How do I make sure that I have a fair chance when putting in an offer at the same time as other buyers?
Q: I will be letting my property for the first time this year and am worried about the state of the rental market, especially for me as a new landlord. What can I do to have the best chance of securing a good tenant? A: Listing your property at the right price will be crucial. To do this, you need to calculate your yields properly by working out your bond repayments, levies, taxes and rental agency fees and then, if possible, add a buffer of about
A: The best – and only – way to negotiate in a professional manner is to submit a written offer to purchase. This approach will always make you stand out. It will also offer you the chance to engage in serious discussions with the seller and/or the agent. Once you have done so, expect reciprocity and do not engage in counter-offers, unless they are also in writing. – Carlo Mariani, founder of The Property Coach Q: We have to downsize this year and are a bit apprehensive. We are worried about how it will affect our kids who are aware that we have to find a smaller home due to finances. How can I make this experience positive for all of us? A: Downscaling isn’t just about selling well and buying more affordably, it’s also about finding a home that fulfils your needs during the next chapter of your life. Be positive
BONNY FOURIE bronwyn.fourie@inl.co.za
and start thinking about a bright, happy future, to avoid being depressed over the financial side of downscaling. When searching for a suitable property you should make it a fun and positive experience for the entire family. Create a property checklist together; list what you and your family will need. Make a list of the must-haves, deal-breakers and non-negotiables, such as the number of bedrooms and bathrooms, how important off-street parking is, and whether you need a garden for your pet. Creative people could create a mood board on which to pin their goals and the visual elements of their new home. These activities seem to be therapeutic and will help everyone connect and get excited about moving. – Craig Mott, regional sales manager for the Rawson Property Group Q: We will soon be finalising our home loan with the bank and are thinking of opting for a fixed interest rate. Is this a good idea? A: Unlike variable rate mortgages, a fixed rate bond is not linked to prime. That means the rate the bank quotes you is exactly what you’ll pay, regardless of what happens to the SA Reserve Bank’s repo rate. Fixed rates will offer you certainty through the cycles. The benefit of a fixed rate is that you will know exactly what the repayment amount will be for the term of the fixed rate. – Buyisile Maseko, growth head at FNB Home Finance
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Letter from the editor BREATHE! Your bank balance might
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Should you be buying a distressed property?
look bad and your debt might be increasing. You might be wondering how you will, as things stand, hold on to your home. It’s easy for anxiety to be rising. But banks are saying: “Don’t panic! Reach out.” Banks told us this week they will endeavour to help and advise clients who are unable to fully service their bonds, so don’t wait for them to come to you – reach
Distressed properties can offer buyers good value for money but there are also dangers.
out to them for advice. The knowledge that you are in trouble and that your home could be repossessed is terrifying but there are still things you can do. Your bank will detail this for you as they assist you. You could also
Experts say there are bargains to be had when considering purchasing a repossessed home but warn there are also cons to this form of acquisition
try to get your home sold at a price that works for you. Estate agents say there are plenty of buyers for properties at
BONNY FOURIE bronwyn.fourie@inl.co.za
the right price. No one wants to have to sell their house, but even if you do, it doesn’t mean you can’t be a homeowner again. It is never really the end of the road as long as you remain resourceful and resilient. Kindness is also so widespread these days, one never knows who will be there to help. I’m reminded of an acquaintance, now aged 82, who would have been out on the street after she lost everything about 30 years ago – but for the love of her friends. Instead of being homeless, she leads quite a glamorous life, thanks to her home-owning friends, whom she flits between for a few months at a time. One of her friends actually built on a granny flat for her at their coastal home and another gives her the keys to their country house in the summer. The world is changing. And yes, of course, the wealthy homeowning friends need to have big hearts but, really, it’s never the end of the road. Hang in there.
Vivian Warby Vivian.Warby@inl.co.za
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HILE buying conditions are great for those who can afford to make an offer on their first or even second home, many homeowners are struggling to meet their bond repayments in a difficult economic climate. Banks maintain that home repossessions are always a last resort but this is nevertheless a reality for many distressed homeowners. Of course, the sale of distressed properties can offer buyers great value for money. There are, however, risks to bear in mind, so buyers looking to snap up these properties need to know what they are doing. When approaching the distressed property market, says Tony Clarke, managing director for the Rawson Property Group, it is important to understand the three basic types of sales that fall into this category: bank-mandated sales, sales in execution and properties in possession. Each has its own processes that can affect the price and potential value of the property for sale.
The process He says bank-mandated property sales are usually a voluntary step taken by mortgage-holders when their bond repayments have fallen irrevocably into arrears. “The mortgage-holder gives the bank a mandate to sell the property on their behalf in order to settle their debt and the bank is then responsible for hiring a real estate agent to market and facilitate the sale.” If the property doesn’t sell, or the owner refuses to accept any offers, the bank will proceed with legal action. It must get a judgment from the High Court against the defaulter, after which the property can be attached and sold by the sheriff at a sale-in-execution auction. If a property doesn’t reach its minimum reserve price on auction, Clarke says, it is bought back by the bank and becomes a property in possession, also known as a bank repossessed property. Where to find repossessed properties for sale Sales in execution are advertised in the Government Gazette, says Tiffany Singh, head of collections at FNB Home Finance. The respective sheriffs also have lists of upcoming sales which prospective purchasers can view. “However, once a property is bought in
(repossessed) by FNB at a sale in execution, the properties are marketed via My Roof and various estate agents.” Absa has bank-listed properties available on its website for customers to browse, says home loans managing executive Geoffrey Lee. Its repossessed properties can also be found on online property portals under “bank sales”.
the previous owner or tenants, Lee says, and so a potential buyer may not be able to view the property and ascertain its condition. “Repossessed properties are sold ‘voetstoots’ so the purchaser takes ownership and accepts responsibility for the property condition as is and will be responsible for repairs or maintenance.”
Benefits of buying a distressed property Buyers of repossessed homes do not pay transfer duty as the selling bank absorbs that expense, Lee says. But this does not necessarily mean that the property will be sold for less than if buying directly from the previous owner. “Both the bank and the previous owner attempt all avenues to sell the property at market value or the highest possible selling price.” Singh says the bank also pays the municipal accounts and levies (if applicable) so generally they are up to date. Buyers can apply for financing from the same bank, which makes it “less stressful”. Again, this does not necessarily mean buyers will get the property for less than if buying from the seller directly. “It depends on the circumstances. For example, the condition of the property, and whether it’s illegally occupied or vacant, will impact the amount that a buyer will offer. A seller in financial distress might also have unrealistic expectations of the property’s value.”
Pricing Bank-mandated property sales, Clarke says, tend to be listed at fairly realistic marketrelated prices and therefore offer less value to bargain-hunters than other types of distressed sales. Echoing this, Lee says Absa always tries to secure the highest possible selling price so that once the outstanding amount is settled, the owner can at least be paid the balance of the proceeds. The bank takes into consideration the condition of the property and municipal bills when agreeing on a fair purchase price. “In the event that there is a shortfall after the sale of the property, we are prepared to grant concessions or rebates to allow the customer to extricate themselves from the debt.” Properties sold at auction, however, have a minimum reserve price which is often far less than the market value, Clarke adds. “The reason for this is that the main purpose of the sale is not to achieve a good price but rather to recover the outstanding debt owed to the bank by the mortgage-holder, and any associated legal costs, as quickly as possible.”
Risks of buying a distressed property Possible negatives include the fact that properties might be in poor condition or vandalised, Singh says. Buyers will then have to spend money to repair and improve them. “A property may be illegally occupied which means the buyer has to evict the occupants and this is time-consuming and costly.” In addition, Clarke says, repossessed properties have normally been on the market at least once before (on auction) without selling, and buyers should be aware that there might be good reason for this. “It’s not always the case but repossessed properties are often fixer-uppers. If a mortgageholder can’t afford his or her repayments, it’s unlikely that they are going to have had much money to spend on upkeep and improvements.” Also, the property could still be occupied by
Sage advice Singh suggests buyers check the price range they are approved for so they know what they can afford. It’s also important to view the property and ascertain its condition and check if it is occupied. Lee adds: “A purchaser should also consider the purpose for which they are purchasing a repossessed property, such as whether it will be used as a rental property. In that way, if the property is already occupied, they may be able to negotiate rent from the current occupants and eliminate the costs of eviction.” When buying at auction, Clarke advises buyers to read the fine print on the conditions of sale very carefully, as the purchaser can sometimes be held responsible for any outstanding rates, levies and taxes on the property, as well as the eviction of any tenants, or the previous owners, if necessary.
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. Publisher Vasantha Angamuthu vasantha@africannewsagency Executive Editor Property Vivian Warby vivian.warby@inl.co.za Features Writer Property Bonny Fourie bronwyn.fourie@inl.co.za Design Kim Stone kim.stone@inl.co.za
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W O R L D SOUTHERN SUBURBS SALES BOOM CAPE TOWN’S southern suburbs have been enjoying strong property sales over the past few months. Buyers have been taking advantage of the suburbs’ value-formoney properties, access to good schools, abundance of lifestyle options as well as their decentralised office nodes, says Alexa Horne, the managing director of Dogon Group
Properties. “We are seeing more and more buyers looking in the southern suburbs. “The ongoing influx of Gauteng residents relocating to the Cape has also bolstered sales in these desirable, well-established and safe areas and we anticipate ongoing buoyant sales for some time to come.” Furthermore, the southern suburbs
are close to the UCT campus. “Areas such as Rondebosch and Newlands have an ever-increasing demand for student accommodation due to their proximity to UCT and, because of this, the southern suburbs have consistent upward trajectory in house prices, high rental return and high rental demand for students and young professionals,” Horne says.
Sellers might need to reconsider their listing price if their homes are taking a long time to sell.
ASKING TOO MUCH FOR YOUR PROPERTY?
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SELLER whose home is taking longer to sell than others in their market might need to reconsider their listing price, says Adrian Goslett, chief executive of Re/Max of Southern Africa. Knowing the competition is “crucial” in this regard. “As a rule of thumb, for those who hope to secure a timeous
sale, a property should be priced at an average of the top 10 cheapest listing prices of similar properties for sale in the area.” While there are plenty of willing buyers these days, he says, buyers tend to understand the market well and will simply ignore the listings that fail to offer good value. “Sellers need to remember
that, within the current economic situation, buyers are in need of a good deal just as much as the seller is in need of a good price,” Goslett says. “While it is okay to leave some space for negotiation when setting the listing price, I advise sellers to list close to the low-end of their price point if they want to sell more quickly.”
Cape Town’s southern suburbs have seen vigorous property sales over the past few months.
More homes modified for work and pleasure
TIME TO MAKE YOUR DREAMS A REALITY
Many homeowners are renovating their houses to better cater for work and leisure.
Property is a strong, low-risk investment during periods of economic volatility. THIS YEAR offers the perfect opportunity to invest in property, thanks to the rock-bottom interest rates, subdued property prices and plenty of stock available. Craig Mott, Cape Town regional sales manager for the Rawson Property Group, says this is the “perfect year to make your property dreams a reality”. This is why: • Easy leverage: No other investment class allows you to easily leverage other people’s money to buy an asset and still reap the full rewards of appreciation on its total value.
“Lenders are more motivated than they’ve been in a long time, to the point that they’re offering up to 104% loans, in certain cases.” • Great interest rates: The combination of the recently slashed repo rate and lenders’ eagerness to sign up new bondholders means many applicants will get belowprime interest rates on their bonds. However, to coax the very best offers out of lenders, Mott says buyers should still plan for a deposit, even if they qualify for a full-coverage bond. • Low risk: With a consistent growth record over the past 50 years, Mott says property is one
of the most secure and stable investments available in today’s economic climate. “Property tends to retain its value very well, even when other investment types are crashing.” • Excellent growth prospects: Taken over the long term – 10 or 20 years, for example – returns on property investments can be exponential. Since the property market is currently at the bottom of a long, downward cycle, making a purchase this year almost guarantees buyers the excellent growth that comes with the next upswing.
THIS year’s residential property market will be driven by affordability, stability in the market, an increase in emigration and a lack of foreign buyers, says Only Realty owner Grant Smee. Other trends he predicts for the market this year include: • Many people ensuring their homes are fit for business and leisure by doing home renovations or moving in order to work from home and enjoy spending more time there. • Trendy areas becoming more affordable and accessible. Vacant offices in these areas are fuelling a surge in conversions to residential developments. • Remote working remaining a key driver for semigration. • Co-living and micro-living will increase as people look to reduce overheads in a volatile economy. • The need for increased safety and security continues to drive young professionals, couples and families to secure lifestyle estates. • An increase in distressed property sales can be expected across the price spectrum.
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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
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What’s new in KwaZulu-Natal PICTURE: ANDREW HARVARD
TO ADVERTISE HERE Anne Reddy
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Larissa Marks 0 7 6 2 3 1 1 0 8 9 advertising@property360.co.za
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SOLE MANDATE
KLOOF R2 795 000 3 BEDS | 2 BATHS (MES) | SEPARATE 1 BED COTTAGE | POOL
PEACE, TRANQUILLITY AND CHARM We are delighted to present this lovely, older style family home sitting in the most beautiful garden in good location of Kloof. Currently owned by a Landscape designer who has lived there for the past 33 years… and it shows in the garden. Nothing modern to bombard your senses just an aura of tranquillity. So, if you are into modern, open plan living then this home is not for you. However, if you are looking for charm, peace and tranquillity then don’t delay and give me a call today. Call PIXIE 073 353 0881 • Web Ref: 445327
SOLE MANDATE
WATERFALL R1 195 000 2 BEDS | 2 BATHS (MES) | OPEN PLAN LOUNGE/DINING | MODERN KITCHEN | PATIO | GARDEN | CARPORT JUST PERFECT Easy living for first time buyers or young professionals. Well run complex offering swimming pool, childrens playground and communal braai area. Pet friendly. This little GEM has 2 bedrooms, 2 bathrooms, the family bathroom has shower and bath, and the fully tiled living area is open plan with a modern fully fitted kitchen with granite surfaces, centre island and gas hob. Sliding doors lead from the lounge to the full length covered patio and the fenced garden. Add to this a covered carport plus an open parking bay. Not to be missed. Call PIXIE 073 353 0881 for an appointment to view • Web Ref: 4538392
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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
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PRIME ESTATES VIEW BY APPOINTMENT
OFFICE 031 767 1217 www.primeestates.co.za
NEW SOLE MANDATE
Entertainer’s dream verandah... 3 Bedrooms, 2 bathrooms, lounge with fireplace, sep dining room, a large kitchen, single garage + carport. Fully fenced garden. Levy covers garden mowing & all exterior maintenance. Call DEBBIE 082 903 2024 • Web: 100401625 VIEW BY APPOINTMENT
DUAL MANDATE
Call DEBBIE 082 903 2024 • Web: 109284371 VIEW BY APPOINTMENT
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FOREST HILLS R1 850 000
DELIGHTFUL FAMILY HOME - NEAR PRIMARY SCHOOL Move in ready, this home has everything for the family who entertain - 2 large lounges, wooden deck, dining room open-plan to well-fitted kitchen, 3 bedrooms, 2 bathrooms, double garage, staff ablutions, wooden chalet with electricity, huge carport, jungle gym and trampoline. Only 2 blocks from the primary school. Fibre connection, plus state-ofthe-art security. All set in beautiful, manicured garden. Call ANN 072 425 9411 • Web: 109466717 SOLE MANDATE
ON SHOW SUN 2 - 4:30PM
GILLITTS R1 895 000
HILLCREST R1 850 000
RETIRE IN STYLE - 2 BED APARTMENT Immaculate, wheelchair-friendly apartment (1 year old) in Green Meadow Country Estate. Beautifully appointed granite kitchen, spacious living area and a bathroom with shower & bath. Lock-up storeroom & 2 carports. Fabulous Clubhouse, heated pool, library & gym. Fibre & DSTV connections.
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SUE DINNIE 082 491 5822 www.capcubed.com
VIEW BY APPOINTMENT
ASSAGAY AREA R1 699 000
SUPER-SECURE SIMPLEX - NO STEPS & PET FRIENDLY!!
F E B R U A R Y
COMPLETELY RENOVATED - ALL BRAND - NEW FINISHES!! Tastefully presented in pastel grey and white, is this stunning 3 bedrooms (2 are en-suite), 3 bathroom simplex. Superb Caesar-stone kitchen with UCO, Glass-top Hob & Extractor. The large open plan living area has a fireplace, and doors leading to the garden with views. Double automated garage. The complex allows 1 dog, but not cats.... Very quick freeway access, close to Everton Bridge and Gillitts Checkers. The unit is ready for immediate occupation. Follow boards from Everton Bridge & new Checkers. Call DEBBIE 082 903 2024 • Web: 108971396 SOLE MANDATE
KLOOF R3 900 000
GOLF COURSE AREA - CLASSIC MANSION WITH ENDLESS POSSIBILITIES.... Bring all the family, this home has room for everyone! Double storey Main House has 4/5 beds, 3 baths, upstairs games room / lounge, downstairs has 2 lounges, separate dining room, entertainment lounge with built in braai & sep guest loo. Cottage has 2 beds, 1 bath & separate store room / garage. This mansion is on a level Kloof acre with pool, boma, covered parking for 5 cars, separate staff facility and views to the sea! Call AMANDA 079 528 0942
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KLOOF / PADFIELD PARK LIVE THE LIFE YOU'VE IMAGINED
FROM R1 450 000 NO TRANSFER DUTY
BUSHWILLOW VALLEY IV
OVER 50s LEISURE LIFESTYLE ESTATE NOW SELLING OFF-PLAN 2 & 3 Bedroom Sectional Title Units Now selling off-plan, in a variety of different size and layout design options, Bushwillow Valley IV offers 16 two and three-bedroom sectional title units in the heart of Greenhaven Estate. Featuring contemporary country-style architecture, these spacious, single-level units come with an open-plan design and a selection of modern finishes.
LEISURE LIFESTYLE ESTATE FOR OVER 50s
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FEW T S LA HE T M FRO PER O L E DEV
Freestanding 3 bedroom homes from R3 450 000 You could own a modern Farm Style home in the heart of the economic stronghold Sunshine on your face and grass under your bare feet! This is how you’re supposed to live Your own garden, lock-up double garages and spacious rooms Communal Park and Pool
Call now 081 281 3960 to view by appointment! www.woodland.co.za | info@woodland.co.za 2 Woodlands Close, Prestondale, Umhlanga
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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
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What’s new in the
Western Cape PICTURE: TEMBELA BOHLE
TO ADVERTISE HERE Margi Marsland 084 591 9122
margi.marsland@inl.co.za
Shevon Philander 078 422 4925
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ESTATE AGENTS A special offer to
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