Neighbourhood PE - 27 June 2020 by Your Neighbourhood

Neighbourhood 27 JUNE 2020

PROPERTY & LIFESTYLE

Property sector stands strong Although many unknowns prevail, property is a resilient asset class that has the ability to recuperate when conditions improve, page 5

PROPERTY FOCUS: INTEREST RATE OPTIONS

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Fixing your interest rate: consider the variables With interest rates at a 50-year low, many South Africans might be contemplating whether now is the time to fix the interest rate on their home loan WORDS: MARANA BRAND

IMAGES: SHUTTERSTOCK

he dramatic 2,5% reduction in interest rates since January this year has sent many borrowers running to their banks in pursuit of fixed rather than variable interest rates on their home loans and other debts. People who fix their interest rate probably do so with the hope to keep their monthly repayments at the current low levels for at least the next few years even if the Reserve Bank should start to raise rates once again.

Definitions A fixed rate remains unchanged even if interest rates change, while a variable rate follows the rates adjustments made by your bank following Reserve Bank announcements, says John Manyike, head of financial education, Old Mutual. An application for a home loan is by default on the basis of a variable interest rate, says BetterBond CEO

Carl Coetzee. “Only once your bond has been registered, can you apply for a fixed interest rate and then there’s a strict time limit before the offer lapses.”

General rule Generally a fixed interest rate is higher than a variable one because it poses more risk for the bank. A fixed interest rate is usually set for a period of up to five years, after which you’ll have to renegotiate it, Coetzee says. “The disadvantage of a fixed rate is that you may miss out on savings when rates are cut. On the other hand, a variable rate may be costly if the Reserve Bank maintains high interest rates over a prolonged period,” Manyike explains.

Consider this Adrian Goslett, regional director and CEO, RE/MAX of Southern

Africa, strongly recommends that buyers carefully consider the various implications of fixing their interest rate to ensure that they don’t come to regret it. “The truth is that there are so many unknown variables around interest rate fluctuations that it’s impossible to tell with absolute certainty whether fixing your interest rate now will be more beneficial for you in the long run than if you had kept your home loan subject to interest rate changes on a variable rate,” Goslett advises. Goslett warns that those who choose to fix their interest rate should remember that they will not benefit from any further cuts in interest rates for the duration of their fixed term (banks only offer a fixed rate for a maximum of five years). “Given our current economic outlook, it’s possible that interest rates will be lowered even further. Anyone who fixes their interest rate will lose out on these savings,” Goslett points out. That being said, those who choose to fix their interest rates will have the peace of mind of knowing that their monthly instalment will not change for the next few years, which helps with budgeting. “If this is the reason for wanting to fix your interest rate, I would advise rather leaving room in your budget when applying for home finance. You will have far more flexibility and will stand to save more if you choose not to fix your interest rate but rather to have room to pay an extra 1% to 2% on your repayments should interest rates increase during your lending term,” he recommends.

The costs of fixing it There are several problems with a strategy to fix your interest rate, says Gerhard Kotzé, MD of the RealNet estate agency group. “The first is that most banks will charge borrowers a premium of between 1,5% and 3% to fix the interest rate on their bond, and

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will usually require that they do so for a period of at least two years. “The reason for this is that, when you fix your rate you are effectively asking the bank to take over your risk of future interest rate fluctuations. In any case it means that if you’re currently being charged the prime rate of 7,25% on your home loan, most banks would raise the rate to at least 8,75% if you asked them now for a fixed rate for, say, the next two years.”

The consequences Says Kotzé, “This means that on a R1m loan, for example, you’ll be paying an additional R934 per month – and that you’ll effectively be “wasting” that money until and unless the prime rate actually does reach 8,75% sometime in the next two years.” It’s important to understand that, in this scenario, the additional

amount you’ll be paying every month will not help you shorten the term of your home loan or save you any money in the long run. “On the other hand, if you can afford the additional R934, and you use it to reduce the capital portion of your R1m bond while staying on a variable interest rate, amortisation tables show that you stand to lower the total balance outstanding to R965,000 within a year, and to R928,000 within two years (compared to R952,000 without the extra payment).”

When the rate rises If and when the interest rate rises, your minimum monthly repayment due will be calculated on a much lower capital balance. “The effect of that will be that if the interest rate does reach 8,75% in two years’ time, your minimum monthly repayment required will still be considerably less

PROPERTY NEWS

than you have been used to paying.” In addition, says Kotzé, if you do this for two years, you’ll have shortened the total term of your bond by at least 12 months and cut some R69,000 in interest off the total cost of your home. “Staying on a variable rate now means that you’ll also benefit from any further cuts the Reserve Bank may make in the next few months to try to stimulate the economy. And if you have an accesstype bond, you’ll always be able to withdraw any additional amounts paid into your bond account should you need them in an emergency.”

Get advice Goslett recommends doing your research and speaking to an expert before deciding whether to fix your interest rate or not. “This is a choice that can end up saving or costing you hundreds of thousands of rands in interest charges, so it should not be taken lightly. Shop around to make sure you’re getting the best possible rate on your home finance,” he concludes.

Use interest rate savings constructively W ith the interest rate down to the lowest level in fifty years, it offers an unprecedented opportunity to invest in your own home or bring your debt down, says Samuel Seeff, chairman, the Seeff Property Group. He gives seven tips for households to leverage the historically low interest rate to their advantage.

your mortgage 1 Reduce balance

If you already have a property with a mortgage loan, you can keep your payments at the original level and use the difference to pay your loan off faster. This will also create a financial buffer to enable you to absorb any future interest rate hikes as you will be used to paying the higher amount.

your rental for 2 Swop your own home

The lower interest rate means that in some areas it’s now almost cheaper to buy than to rent, or there will be very little difference. If you qualify for a mortgage loan, then now is

an excellent time to buy. Since the repayments on mortgage loans have come down, your earnings required to qualify will also be lower.

3 Buy a new house

If you are thinking about trading up, this could be an opportune time to do so as you can benefit from the interest rate saving, which could make the repayment on the new property almost the same as on your current home.

4 Build a cash reserve

If you’re financially secure, you can keep your mortgage payment at the old rate, and invest the difference between the old and the new rate into a savings account. If you are renting and your monthly rent is reduced thanks to the lower interest rate, you can tuck away the savings into your housing deposit account or use it to pay off other debt.

5 Reduce your car debt

There’s a big advantage to owning your car and by keeping your

car repayments at the original amount, the difference could go towards reducing your car debt. It could also create a buffer against future interest rate hikes. If you’re thinking about trading up, a paid off car will come in handy as a deposit on the new car.

Reduce debt on credit 6 cards, short-term loans and store cards

Since this type of debt carries a higher interest rate, typically twice the prime rate and more, you should always aim to pay it off as quickly as possible. If you don’t need the savings this puts back into your budget, keep your repayments at the original level so that you can reduce the debt faster.

a short-term loan 7 Take to expand a business If you have a small business or are thinking of starting a business, now could be a good time to take advantage of the cheaper borrowing costs. You should, however, ensure you’re financially secure and plan for future interest rate hikes.

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Cohabitation or co-ownership? Buying property jointly or sharing a home with someone you know may seem like a clever way to stretch your rand, but make sure you aren’t left out in the cold when the partnership ends WORDS: HELENE MEISSENHEIMER

housands are left with reduced or no income – and no alternative but to look for more affordable living arrangements. For some this could mean moving in with parents or siblings, while others may consider co-buying a property with a family member or friend. There are risks related to the legalities and responsibilities of both these options.

Sharing the same home

People sharing homes with romantic partners, friends or family is nothing new. South Africa’s high unemployment rate among young people coupled with rising rental costs, especially in urban areas, have many young people living with their parents, romantic partners, friends or colleagues while saving towards a place of their own. However, the latest PayProp rental statistics indicate that since the start of the lockdown in March, there’s been a marked increase in the number of people who can’t afford to pay their rent in full and who will be needing more affordable accommodation. Cohabitation can offer a solution, but there are risks involved. Property law specialist Shani van Niekerk, senior associate and attorney at Adams & Adams Attorneys, explains.

A contract is a must

Van Niekerk says it’s important to know there’s no such thing as a common law marriage or spouse. As such, it naturally follows that extended family members, friends or partners who cohabitate have no legal rights or responsibilities. The consequence is that at the dissolution of the partnership or relationship or any cohabitation, parties are left vulnerable and without the legislative protection which, for example, married individuals have. Without a contract, there’s no legal obligation on any cohabitant to either maintain the other or pay for any specific expenses. There’s no law that regulates the sharing of expenses where family members, partners or even friends cohabitate. In fact, only the individual who has entered into a lease agreement, or in whose name the bond or utilities bill is registered, will be held liable for payment regardless of who else enjoys the use thereof. The only way to be protected under our law is to enter into a cohabitation agreement. Such an agreement is in the best interest of all parties and clarifies their expectations.

The cohabitation agreement A cohabitation agreement regulates the rights and duties between cohabitants, Van Niekerk says. The agreement can provide for the

IMAGES: SHUTTERSTOCK

division and distribution of assets if the cohabitation ends, and parties’ obligations and respective financial contributions towards the joint home. A cohabitation agreement will be legally binding as long as it contains no provisions that are immoral or illegal. It is, however, important to note that a cohabitation agreement will not be enforceable concerning third parties. A cohabitation agreement is the smart way to live together without fear of the future.

Co-ownership

Buying a property together is not a decision to be taken lightly, says attorney Robert Krautkramer, director at Miltons Matsemela. What happens if one party loses their job and the other is responsible for the bond on their own? Or if one party wants to sell and the other doesn’t? How do you divide proceeds if one party contributed more to bond payments than the other? Krautkramer says, according to the law, co-ownership is a type of partnership; people who own a property equally, share equally in the net profits. It doesn’t mean they necessarily share in the overheads though, unless the title deed or a separate agreement says so. Nor does it mean that because one of them pays more over the course of ownership than the other that, upon sale, the one is entitled to more than the other.

What to do?

Always draw up a co-ownership agreement when buying together – even if you’re married. That will regulate the outcome should the property be sold. There’s no automatic entitlement at all to an “accounting” if, for example, each party did not contribute equally to the bonds due on the property.

Consider allocating shares in a property. Divide the shares equal to the percentage of the input by each party. For example, if two friends buy a property and one party contributed 40% of the start-up costs she has a

4/10th share and the other then has a 6/10th share as she contributed 60%. Then each party already owns according to their immediate input. Considerations in such an agreement: • Who is responsible for the bond, rates and taxes, insurance, maintenance, improvements, etc? • What happens if you don’t uphold your end of the bargain and how does this affect your share ownership – regardless of what the title deed says? • At what point are you compelled to agree to sell? • What happens when one of

you dies or loses your job or simply wants out? • Who do you appoint to sell and transfer the property? • How do you agree on a marketing and selling price? • What happens if one of you doesn’t adhere to the terms of the agreement? Lastly, get an attorney with a strong litigation and property law background to draft the co-ownership agreement. This protects you against the risk of having to go to the high court to have your partnership “liquidated” at huge expense and effort.

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PROPERTY NEWS

WESTBROOK THE RIDGE, PORT ELIZABETH

Resilience in the face of the pandemic How will the property sector withstand this once-in-a-century pandemic, said to mark the greatest global shift since World War 2, with most parts of the world not yet over the infection peak? WORDS & IMAGES: SUPPLIED

istorically, property is an asset class that has managed to beat fluctuating market forces, being a far more resilient investment type than most – and less volatile than the stock market. In this time of uncertainty, hopes remain high that, regardless of the Covid-19 pandemic, things won’t be any different.

Resilient

Essential

With the shift to Level 3, it has slowly begun to return to “not so normal”, with a continued ban on showhouses. Interestingly enough, the real estate transaction process requires a relatively low level of human interaction compared to other sectors that have been permitted to operate at this level.

The property industry is extremely important given that the sector is a huge contributor to the economy, contributing significantly to the gross domestic product, with mortgage registrations totalling over R147bn last year alone. In addition, the property market is heavily impacted by employment levels and consumer confidence, both of which have taken a severe knock due to the lockdown. Clifford Oosthuizen, MD, Westbrook, a leading multi-generational development in the Eastern Cape, believes, however, that property is an asset class with supreme resilience and the unique ability to recuperate with vigour when conditions improve. The latest rate cut will aid the recovery of the national economy as the country begins to emerge from full lockdown. And he suggests now is the time for investors to capitalise on the prevailing buyer’s market conditions. “The impact of the virus is unlikely to derail the property industry, but it could take as long as three years to fully bounce back,” warns Oosthuizen. “We’re only on the start line of recovery and it’ll take time before the full extent of the trail of destruction the pandemic is leaving in most sectors becomes clear.”

An industry that employs approximately 100,000 people – both directly and indirectly – has been overcoming the challenges associated with the lockdown by depending heavily on technology, including the introduction of quality virtual viewings of prerecorded footage of properties, among others.

Good news

News of the property market being allowed to operate earlier than under Level 2 as was expected means that more than 46,000 property practitioners, who haven’t earned an income since lockdown came into effect, were able to return to work. Agents were previously restricted to working remotely – just adding listings, taking mandates, signing electronic offer-to-purchase documents, and facilitating bond applications. “It was great news that we were finally able to open the door, not just for the sector but the country as a whole. But we must adhere to the strict protocols and safety precautions laid out by the government for the sake of our colleagues, clients and estate agents,” says Oosthuizen.

Developers follow suit

In this new business unusual reality of Level 3, property developers in

Port Elizabeth, South Africa’s fifth largest city, will further embrace the flexibility which has become the new watchword as Covid-19 robs them of their traditional markets, and forces them to rethink their sales strategies. Port Elizabeth has long been popular with investors from as far afield as Australia and Dubai, but the status quo means they won’t be moving continents any time soon. In the new marketplace, developers are looking much closer to home for their buyers, pivoting their focus to offer the kind of non-negotiable safeguards people will insist on in these unprecedented times. “As developers, we’ve had to readjust and redesign our strategy to address this new challenge. But because our show units are empty and are sanitised daily and after each visit, they are available to view by appointment with an agent,” Oosthuizen explains. “Our Covid-19 workplace plan is in place, with each person affiliated to Westbrook being aware of its contents and accepting that it’s imperative that protocols are strictly followed to ensure the safety of all,” he says. “The fourth interest rate cut of 2020 – bringing rates to a 50-year low – means even further savings for existing property owners as well as for those who have been renting for a long time and who are now looking to become homeowners,” he points out. “Banks are offering 100% loans to potential bond holders and that should certainly entice investors,” Oosthuizen says.

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Keep yourself and your pet safe It’s official: The coronavirus can infect pets, they can transmit it to other animals, and although rare, some animals can infect people. People can also transmit the virus to some animals. It seems like a good idea for pet owners to bear this in mind before snuggling up to their pets. WORDS: MARANA BRAND IMAGES: SHUTTERSTOCK

ust as medical experts are learning more each day about how the new coronavirus (dubbed SARSCoV-2) impacts the health of humans, they’re also studying its effects on animals. And what they’ve discovered is that, although the virus primarily spreads from person to person, it can also spread between people and animals. According to the World Health Organization (WHO) “several dogs and cats (domestic cats and tigers) in contact with infected humans have tested positive for Covid-19”.

Vulnerable animals

Cats appear to be the most susceptible to SARS-CoV-2 and can even develop symptoms of the disease. In studies of the World Organisation for Animal Health (OIE), the animal equivalent of the WHO, “cats have shown clinical symptoms of disease including respiratory and gastrointestinal signs”. They can also spread the virus to other cats.

Dogs appear to be susceptible to infection but appear to be less affected than cats. Other animals that have proven to be infected are golden hamsters and cynomolgus apes and these animals can also get ill. The OIE is busy with studies to better understand the susceptibility of different animals and whether they get ill after infection. What they do know is that, so far, poultry and pigs cannot contract Covid-19.

Can animals infect people?

What to do

Keeping your four-legged family members safe during the coronavirus pandemic looks a lot like how you might go about protecting the humans in your family. Physical distancing is a key preventative measure. Experts recommend keeping your pet away from other people and animals outside the household. Avoid dog parks and public spaces where dogs gather to play, and when on walks, keep your dog at least 2m from other people and animals.

In Europe, the virus has been detected in minks raised on farms. “Most likely, they’ve been infected by farm workers. In a few instances, the minks that had been infected by humans in turn transmitted the virus to other people. These are the first reported cases of animal-to-human transmission.”

If you or someone in your family is sick with Covid-19 or are at risk, they should avoid contact with their pets — this includes petting, snuggling and smooching. They should also stay away from other animals, like farm, zoo and wild animals, as well as animals in animal shelters.

There’s no evidence, however, that cats can transmit the disease to humans “as Covid-19 is mainly spread through droplets produced when an infected person coughs, sneezes, or speaks”, the WHO states.

If possible, have another member of your household care for your pet while you’re sick. If this isn’t an option, avoid close contact with your pets, implement basic hygiene measures, and wear a face mask around them.

The OIE supports the view that, although several animal species have been infected with SARS-CoV-2, these infections are not a driver of the Covid-19 pandemic. “The current pandemic is being sustained through human-to-human transmission, and although current evidence suggests that SARS-CoV-2 emerged from an animal, investigations are ongoing to find the source and how the virus entered the human population.”

Animals living with infected people should be kept indoors, similar to humans. Other people should avoid contact with these animals as well. Always supervise young children around animals and teach them not to put their hands in their mouths after petting Fido or Fluffy. And as much as we love them, don’t let your pets kiss your face, since saliva can carry germs. If you're worried about your pet tracking something nasty inside, even traces of Covid-19, you can wipe their paws once you return indoors.

Other risks

Even if chances are slim that your dog, cat or other animals can infect you with the coronavirus, they can spread plenty of other viral and bacterial illnesses to their human companions, including rabies, leptospirosis, listeria and salmonella, to name a few. Dogs can also carry superbugs that make people sick. The concern is that animals can be silent carriers of these diseases and immunocompromised people can be susceptible to picking them up. So, as a general rule, wash your hands really well after you touch an animal or clean up its waste, and avoid kissing, licking or sharing food. Keep your pet’s vaccinations up to date, especially if your dog or cat is boarded often, is active outside or frequents dog parks. And don’t forget to stay on top of flea and tick prevention. This helps to keep you and your pet healthy.

If your pet falls ill

If you are concerned that your pet has been exposed to the coronavirus, contact your veterinarian. Just like with people, it’s better to call first to limit the risk of exposing others to the virus. So far, the animals that have shown signs of Covid-19 have had “very mild” symptoms and are expected to make a full recovery.

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1. for a period of 12 months; 2. during the remaining repayment period of the credit agreement; or 3. until the consumer finds employment or is able to earn an income, whichever is the shorter period”.

This provision would apply to consumers who have been maintaining credit life insurance either monthly or annually and have been retrenched, compelled to take unpaid leave or lost their source of income due to the measures implemented to combat the Covid-19 pandemic (this applies to persons who are self-employed as well as persons employed in the formal and informal sector). The insurance will cover their instalments for up to a year or until the consumer finds employment. It is important to note that credit life insurance lapses if the account is in default.

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CREDIT LIFE INSURANCE

While the debt relief holiday announced by South Africa’s major credit providers was a welcome relief to many, there are alternative measures that very few South Africans are aware of, although they are already providing for them. Section 106 of the National Credit Act 35 of 2005 (the “Act”) states that a credit provider may require a consumer to maintain credit life insurance for the duration of the credit agreement. The following note will explore how credit life insurance may be applied in order to reduce the financial impact on consumers as a result of the Disaster measures implemented to combat the spread of the Covid-19 virus. What is credit life insurance? Credit life insurance covers outstanding debt instalments in the event of a consumer’s death, disability, terminal illness, unemployment, or other insurable risk that is likely to impair the consumer’s ability to earn an income or meet his or her obligations under a credit agreement. Maximum prescribed cost of credit life insurance Regulation 3(1) limits the cost of credit life insurance whereby consumers cannot be charged more than R4.50 per R1 000 on unsecured loans, developmental credit agreements and other types of credit agreements. Credit life insurance cannot exceed R2 per R1 000 for any mortgage agreement. Debt protection provided during Covid-19 In terms of regulation 3(2)(c), the credit life insurance cover must provide for at least the settlement of “in the event of the consumer becoming unemployed or unable to earn an income, other than as a result of permanent or temporary disability, all the consumer’s obligations under the credit agreement that become due and payable

In order for a consumer to ascertain whether they are covered by credit life insurance and are entitled to claim accordingly, they should examine their monthly statement which would indicate whether they have been paying an insurance premium. In the case of store cards, it would appear as “balance protection”. If a consumer is unsure of whether they are covered by credit life insurance or not, the consumer should contact their credit provider and ask for a copy of their credit agreement or whether they are covered by credit life insurance. In the event that a consumer is covered by credit life insurance and has a valid claim due to loss of income as a result of the Covid-19 measures, the consumer may request the credit provider to activate their credit life insurance to cover the installments on their outstanding debt for the designated period. The credit provider may request certain documentation in order to process the claim. Switching credit insurance providers Another way of mitigating financial distress is by replacing the current credit life policy. This can be done in terms of regulation 7 and section 106(4)(a) of the Act, which provides a consumer with the right to substitute their credit life policy if another policy offers a more favorable rate for the same benefits and protection. It must be noted that if a consumer wishes to substitute this or her current policy, the new policy must comply with the minimum cover and limited exclusions which are listed in the regulations. The move to a new credit life policy may offer a consumer some financial relief while still maintaining a credit life policy. Conclusion Many people are unaware that they are protected by credit life insurance and as a result fail to ever utilize it when the need arises nor are they aware of their right to switch to a more favorable credit life policy. It is up to the consumer to contact their credit provider in order to activate the protection or inform them of any other wishes as explored above. For assistance, contact us on 041 363 6044 or email us at info@kaplans.co.za.

Retire your way W

hile our lives have been put on hold for at least a few months, big decisions about our futures still have to be made, and this includes people making choices about the way they will live in their retirement. Today, the Baby Boomer generation is looking to retire. They are, according to Prieshka Taylor, head of marketing, Evergreen Lifestyle Villages, “confident, optimistic, independent individuals who value innovation, self-reliance, accomplishment and change”. They’re still living active lives and showing no signs of slowing down. Many of them still work in some capacity and want to be able to downsize in stages. The traditional retirement home model – the old-age home – doesn’t fit these requirements. Instead, the focus must be on matching the lifestyle of the modern retiree with their personal life stages. Overall, the benchmark for a retirement offering should be a place where lifestyle meets secure living in an environment that combines

residential, recreational and quality healthcare facilities so that you can truly enjoy the best years of your life.

Demand for modern retirement estates

“It’s for these reasons that retirement lifestyle estate developers are providing villages with far more flexibility to meet the needs, requirements and constraints of today’s working retirees,” says Taylor. She adds that one of the main concerns of retirees is financial security. EvergreenLifestyle estates operate on the life rights model, in terms of which residents do not own the property but rather acquire the right to live in the home for the remainder of their (and their partner’s) life.

a need to connect with their world,” says Taylor. Up-to-date technology in retirement villages allows them to work from their retirement homes. This option works well as the household maintenance burden of staying in the family home is removed, and residents are able to live life as they wish.

Flexibility is key

The new wave of retirees is not looking to go straight from full-time work to a traditional retirement model. Modern retirement estates meet this challenge by offering residents the adaptability to downscale their accommodation according to their changing needs over time.

Evergreen villages also offer top security along with an array of activities and amenities that encourage wellness, a sense of community, access to continuous healthcare and exceptional hospitality to residents.

Whatever property they select, all residents have access to support such as personalised home-based and primary healthcare, and equipped care centres with 24-hour nursing, frail- and dementia care, offering peace of mind should the need for these facilities arise.

Technology is essential

Access to amenities

“Many of our residents are working well into their 70s, entering this phase with

Evergreen Lifestyle retirement villages have good locations in different

regions of South Africa. Some homes are surrounded by natural wetlands; others are located in a quiet cul-desac overlooking majestic mountains. What they have in common are spaces

that afford their residents privacy, peace and a high quality of life along with easy access to amenities and various community-centred exercise, sporting and social activities.

8â&#x20AC;&#x192;

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Sale-ready homes Even during this pandemic, property is still selling â&#x20AC;&#x201C; but buyers have different needs than before. Take that into account when staging your home for a visit from potential buyers. WORDS: SUPPLIED

IMAGES: SHUTTERSTOCK

iven our unique circumstances, itâ&#x20AC;&#x2122;s understandable that activity in the housing market will be slow at best. Yet, the need to buy real estate â&#x20AC;&#x201C; whether for the purpose of relocating, downscaling, or simply for a change of scenery â&#x20AC;&#x201C; still exists, which means that sellers will be able to close a sale if they market their home correctly. â&#x20AC;&#x153;Now, more than ever before, sellers should fix up and stage their home to ensure that their property has the best chance of being noticed by the small pool of qualified buyers who are serious about making a purchase over this time,â&#x20AC;? advises Adrian Goslett, regional director and CEO, RE/MAX of Southern Africa.

Home office

The first thing he recommends changing is the study or home office space. â&#x20AC;&#x153;Now that weâ&#x20AC;&#x2122;re all working more remotely, a well-fitted home office is likely to be an incredibly appealing feature to buyers,â&#x20AC;? he predicts. If a seller has a temporary setup or does not yet have a home office area, he recommends transforming a room or a space in the home into a fully functional office.

Good-looking garden

Beyond this, Goslett also highlights

the importance of a well-maintained garden. â&#x20AC;&#x153;Those who have spent lockdown in an apartment block are likely to be searching for homes with some garden space. If a sellerâ&#x20AC;&#x2122;s property has any outdoor area, they could increase the appeal of the home simply by making that space as functional and aesthetically pleasing as possible,â&#x20AC;? he recommends.

Breathing space

Space is another factor that most buyers are likely to be paying more attention to over this time. Buyers are asking themselves whether they would be able to comfortably spend months in this home. â&#x20AC;&#x153;One of the biggest frustrations in this scenario is feeling caged in by a home thatâ&#x20AC;&#x2122;s cramped or feeling like thereâ&#x20AC;&#x2122;s no place to escape to for some alone time. Sellers should declutter their homes to make their property feel more spacious. Those with open-plan living areas might also consider creating a separate space that can be closed off to allow for some privacy,â&#x20AC;? says Goslett. If you can afford it, get an experienced home stager to help create private nooks through smart furniture placements and design.

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HUMEWOOD – R2 095 000

SENSATIONAL SEA VIEWS! This one bedroom apartment offers o/plan living areas and kitchen with breakfast nook. Top 24hrs security and secure under cover parking bay. BY APPOINTMENT. Web Ref: RXAA-2289 Maruska Psotka 082 716 6454

WELL LOCATED, LOW MAINTENANCE, LOTS OF POTENTIAL. Affordable home featuring 3 beds, 2 baths, study, large kitchen, scullery, family room leading into dining area. Granny ﬂat. 2 Garages with access to spacious workshop, braai area. BY APPOINTMENT. Web Ref: RXAA-2292 Maruska Psotka 082 716 6454

WALMER HEIGHTS - R2 195 000

NEW RELEASE

ON SHOW SUN 28/06 - 3-3:30PM

NEAT SPACIOUS SUNNY APARTMENT Very large sunny north facing apartment. Comprising of neat kitchen, large lounge onto balcony, large bedroom and bathroom. Secure parking bay. BY APPOINTMENT. Web Ref: RXAA-2397 Maruska Psotka 082 716 6454

ABSOLUTELY IMMACULATE SOLE MANDATE This light and bright apartment offers 2 large bedrooms, ﬁtted kitchen. Large lounge with enclosed balcony. Walk to Kings Beach. This is a brand new release BY APPOINTMENT. Web Ref: RXAA-00 Maruska Psotka 082 716 6454

3 BEDS - 3 BATHS - 1 LOUNGE THIS LOVELY UP MARKET HOME THAT OFFERS LOTS OF LIVING WITH BEAUTIFUL FINISHES. One Master bedroom with MES, a second guest bedroom with MES and 2 more guest bedrooms. The open plan kitchen offers a breakfast counter with granite tops that leads to the lounge and dining room which then leads to an undercover Patio with braai area. A second outdoor patio covered with a shade spanned cover. Double Garage with a double carport and space for a Caravan also equipped with a staff loo. Web Ref: EBF25476 Marjory Ferreira - C: 082 463 6219

SUMMERSTRAND – R3 990 000

To advertise here please contact Lucea on 087 828 0423

9 BEDS - 8 BATHS - 2 GARAGES - 6 OFF-STREET PARKINGS Lovely family home in Old Summerstrand with good income generator with its 4-5 self-catering flats. Large upstairs studio with balconies and sea views can be rented out. The options are multiple. In a good location, 500m from beach in an established garden with borehole, backup water and electricity systems. Call for a private viewing. Babette - 084 693 1483

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AGENTS KNOW HOW TO MARKET YOUR HOME TO SELL

Image is everything when it comes to real estate and a poorly presented property is like showing up at the Oscars in the wrong dress. Objective, expert advice and assistance from a registered estate agent is essential.

Another good reason why you should use an estate agent

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REAL ESTATE BUSINESS OWNERS OF SOUTH AFRICA

Neighbourhood

yourneighbourhood.co.za | 27 JUNE 2020

THE COST- EFFECTIVE NOTARIAL TIE AGREEMENT What is a Notarial Tie Agreement? As the name suggests, a Notarial Tie Agreement (“Tie Agreement”) is an agreement executed by at least two parties where a condition is registered against the title deeds of two or more properties preventing the properties being sold, mortgaged, or independently dealt with. The idea is for the properties to be seen for all intents and purposes as one property. It is usually entered into between the owner of pieces of land and the enforcer of the right. The “enforcer” is usually the person or entity who does not wish the properties to be separately dealt and requires the properties to be dealt with as one (often a lending financial institution or a local authority). Another way of achieving this is by consolidating the properties but this is more expensive and takes longer as you would require a surveyor to prepare and obtain Surveyor General approval of a consolidated diagram. How is a Tie Agreement formalised? The parties to the agreement appear before a Notary Public and sign a Tie Agreement which is registered at the Deeds Office in terms of Section 65 of the Deeds Registries Act, 47 of 1937 (“the DRA”), which regulates the registration of Personal Servitudes. The title deeds must be lodged at the Deeds Office so that they can be endorsed to reflect the Tie Agreement and any bondholder’s consents to the Tie Agreement. Section 65 of the DRA provides that the Tie Agreement will be registered free of any bonds so one would need to be cautious and ensure that bondholders rights are protected. Hereunder is the typical wording of a Tie Agreement: “The owner of the within metaproperties agrees that the properties shall be tied together and regarded as one property for all intents and purposes and may not be sold or mortgaged separately of each other without the consent of X first being obtained.”

CHATTY - R80 000

NKANDLA - R90 000

JOE SLOVO - R120 000

What are the benefits of a Tie Agreement as opposed to a consolidation? • Generally speaking, it is a much quicker and more cost-effective process; • The properties being tied do not need to be owned by the same entity or person; • The properties do not have to be situated next to each other (contiguous) and can even be situated in different Deeds Registries; • No amendment is required to be made to existing registered bonds; • A Tie Agreement is generally acceptable to local authorities when a developer of adjoining properties does not have sufficient parking space for the proposed development; and • The second property can be tied to the property being developed to provide this additional space. The following criteria make a consolidation less flexible than a Tie Agreement: • The properties must be contiguous to each other; • They must be owned by the same person or entity; and • If the properties are mortgaged, the bondholder has to give consent to the consolidation and consent to the consolidated property (new erf number) being substituted in the bond at an additional cost. Author: Peter Bowes

Tel: 041 506 3700

www.blcattorneys.co.za

NKANDLA - R90 000

MISSIONVALE - R130 000

SOLD 2 bedroom house with lounge, kitchen and bathroom.

2 bedroom house with lounge kitchen and bathroom.

2 bedroom house with open plan lounge, kitchen and bathroom.

Property along the main road with 2 beds, lounge, kitchen and bathroom.

2 bedroom house with lounge, kitchen and bathroom.

HARMONY 078 266 0220

KWANOXOLO - R130 000

MOTHERWELL NU 29 - R110 000

MISSIONVALE - R130 000

SOWETO ON SEA - R130 000

WELLS ESTATE - R130 000

KWANOXOLO - R130 000

PRICE REDUCED TO SELL. 2 Bedroom house with lounge, kitchen, bathroom, carport and boundary walls.

2 bedroom house with lounge kitchen and bathroom.

2 bedroom house with lounge, kitchen and bathroom.

HARMONY 078 266 0220

KWANOXOLO - R170 000

JOE SLOVO - R130 000

WELLS ESTATE - R260 000

SOLD 2 bedroom house with lounge, kitchen and bathroom.

2 bedroom house with lounge, kitchen and bathroom.

2 bedroom house with lounge kitchen and bathroom.

HARMONY 078 266 0220

ZWIDE - R370 000

MOTHERWELL NU12 - R110 000

KWADWESI EXT - R180 000

SOLD Property very close to the bus stop with 2 bedrooms lounge, kitchen and bathroom.

2 bedroom house with lounge, kitchen and bathroom.

Corner house located on the main road with a spacious yard, 2 bedrooms, lounge, kitchen and toilet.

2 bedroom house with lounge, kitchen, bathroom and boundary walls.

2 bedroom house with lounge kitchen and bathroom.

3 bedroom house with lounge, kitchen, bathroom,boundary walls and very close to the bus stop.

HARMONY 078 266 0220

KWAZAKHELE - R220 000

KWAZAKHELE - R300 000

WELLS ESTATE - R350 000

MOTHERWELL NU2 - R380 000

MOTHERWELL NU 7 - R430 000

NEW BRIGHTON - R260 000

2 bedroom house with lounge and kitchen. Property close to the bus stop. HARMONY 078 266 0220

PRICE REDUCED TO SELL 2 bedroom house with 4 flat lets.

Corner 4 bedroom house with lounge, dining, kitchen, bathroom and boundary walls. Located close to the bus stop at Pola Park.

3 bedroom house with lounge,fully fitted kitchen, 2 bathrooms and boundary walls.

3 bedroom house with lounge, dining, kitchen, bathroom, 2 flatlets and boundary walls.

8 habitable flats which need touch ups, located close to the bus stop.

HARMONY 078 266 0220

There's no place quite like your neighbourhood www.yourneighbourhood.co.za

Neighbourhood

yourneighbourhood.co.za | 27 JUNE 2020

MARAIS TOWNSHIP

STEPHEN & TALIETHA 082 400 9510 082 442 6931

Tel/Fax 041 583 4583 e-mail: th@thprop.co.za ALGOA PARK

ALGOA PARK

STARTING OUT. This very neat and modern home offers 2 bedrooms with bic, beautiful bathroom with corner bath, fitted kitchen, neat flatlet all on enclosed erf. R599 000 STEPHEN 082 400 9510

ALGOA PARK

BY SOLDHEN STEP FREESTANDING FAMILY HOME. This home offers 3 bedrooms, 3 living areas, bathroom, fitted kitchen, laundry, garage PLUS one bedroom flatlet all on corner erf. R839 000 STEPHEN 082 400 9510

GREAT STARTER. This home offers 3 bedrooms, lounge, kitchen, bathroom all on enclosed yard with sliding gate. R389 000 STEPHEN 082 400 9510

FIRST TIME BUYER. This home offers 2 bedrooms, lounge, kitchen, bathroom, secure parking all on enclosed erf. R330 000 STEPHEN 082 400 9510

ALGOA PARK

AANDBLOM. This unit offers 3 bedrooms (bic), lounge, beautiful fitted kitchen, bathroom and toilet. R299 000 STEPHEN 082 400 9510

GREAT STARTER. This home offers 2 bedrooms, lounge, kitchen, bathroom, lock-up garage all on neat enclosed erf. R369 000 STEPHEN 082 400 9510

NORTH END

ALGOA PARK

GREAT STARTER

FAMILY HOME

This home offers 2 bedrooms,

This corner property offers

FOR THE YOUNG FAMILY This home offers 2 bedrooms, lounge, dining room, fitted kitchen, bathroom, single garage PLUS a double garage / flatlet with bathroom and tandem carport. All on a spacious plot that borders on road at the front and at the back. R650 000 STEPHEN 082 400 9510

3 bedrooms, lounge, fitted

lounge, dining room, fitted

kitchen, bathroom,enclosed

kitchen, bathroom and

back stoop, secure parking for

lock-up garage.

2 vehicles.

R599 000

R650 000

STEPHEN 082 400 9510

SWARTKOPS

STUNNING FAMILY HOME. This home offers 3 bedrooms (bic), lounge, family room, dining room, fitted kitchen, 2 bathrooms (1 mes), garage. Pool with entertainment area PLUS 2 x bedroom flatlet with lounge, kitchen and bathroom. R949 000 STEPHEN 082 400 9510

STEPHEN 082 400 9510

NORTH END

CALLING INVESTORS / STUDENT ACCOMMODATION

FOR THE YOUNG FAMILY. This spacious unit offers 2 large bedrooms (bic), beautiful bathroom, lounge, dining room, fitted kitchen, guest toilet and garage. R499 000 STEPHEN 082 400 9510

CALLING ALL INVESTORS. This property offers lounge, kitchen, 1.5 bathrooms, 6 bedrooms, storeroom, secure parking for 2 – 3 vehicles. The house can easily be converted back into 2 x 2 bedroom houses with a one bedroom flatlet for excellent rental income. R699 000 STEPHEN 082 400 9510

OWN YOUR OWN BLOCK OF FLATS / STUDENTS. 1 x 7 Bedroom flat with kitchen, lounge, bathroom and courtyard. 1 x 3 Bedroom flat with lounge, kitchen, bathroom and courtyard. 1 x 2 Bedrooms flat with lounge, kitchen and bathroom and yard with secure parking. R1 299 000 STEPHEN 082 400 9510

FAMILY HOME. This home offers 3 spacious bedrooms, lounge, kitchen, bathroom, storeroom,carport all on enclosed yard. R650 000 STEPHEN 082 400 9510

SYDENHAM

STARTING OUT. This unit offers 2 bedrooms, bathroom, kitchen, lounge, enclosed balcony all in secure block of flats. R399 000 STEPHEN 082 400 9510

SYDENHAM COVER YOUR BOND This property offers a 2 bedroom house with a lounge, kitchen and bathroom and enclosed stoop and carport for 2 vehicles PLUS a 2 bedroom flatlet with lounge, open plan kitchen and bathroom with separate entrance. R599 000 STEPHEN 082 400 9510

BY SOLDHEN STEP

ROWALLAN PARK

R995 000 STEPHEN 082 400 9510

FAMILY HOME / STUDENTS. This home offers 3 bedrooms, lounge, kitchen, bathroom, secure parking for 2 vehicles. R549 000 STEPHEN 082 400 9510

SWARTKOPS

NEW BRIGHTON

SIDWELL

IDEAL FOR YOUNG FAMILY. Home offers 2 spacious bedrooms, lounge, diningroom, fitted kitchen, bathroom, guest toilet, balcony and garage. R499 000 STEPHEN 082 400 9510

SECURE FAMILY HOME . This home offers 3 bedrooms, open plan lounge to dining room, kitchen, bathroom, carport, flatlet with toilet and a storage. Enclosed boundary wall. Close to amenities. R420 000 STEPHEN 082 400 9510

IDEAL FOR BUSINESSES. This property consist of large warehouse with office, kitchen, toilet, single garage with outside storeroom on enclosed erf. R699 000 STEPHEN 082 400 9510

STEYTLERVILLE BEAUTIFUL SPACIOUS FAMILY HOME

W E NE EAS L E R

Own street block ! 2 x 3 bed homes PLUS 2 x empty erfs, PLUS PLUS…

This is the perfect home for anyone to just move in. This home offers 3 bedrooms (BIC), 2 bathrooms (1MES), dining room, large lounge, outside braai with enclosed back porch, moderate kitchen (BIC). Backyard, s/garage on remote, carport, outside toilet, cctv cameras. R1 390 000 RIAAN 064 514 3752

U ED

BLUEWATER BAY LOVELY FARMSTYLE HOME This home offers 4 bedrooms (bic), 2 bathrooms (1mes), large lounge, dining area, open plan kitchen, swimming pool, carport.

TWO HOUSES ONE ERF. 2 Houses and flatlet. 2 Houses each offer 3 beds, 2 bath (1mes), lounge, diningroom, kitchen, D/garage. Flatlet offers 2 beds, lounge, kitchen, bathroom & D/carport. R1 999 999 STEPHEN 082 400 9510

U ED

R815 000 RIAAN 064 514 3752

ROWALLAN PARK

SUMMERSTRAND

SHERWOOD SPACIOUS FAMILY HOME This home offers 3 bedrooms, 2 bathrooms (1 mes), lounge, dining room, kitchen, laundry, garaging for 6 vehicles, office, potential flatlet all on enclosed corner erf. R1 299 000 STEPHEN 082 400 9510

FOR THE EXTENDED FAMILY

BY APPT: Low maintenance home offering 4 bedrooms, 2 bathrooms, melamine kitchen, laundry, separate lounge, dining area with laminated floors, TV room and bar leading to garden with covered patio and outdoor braai, double garage, 3 water tanks, wendy house, alarm. Flatlet potential! SHARON ROBERTS (C) 082 327 4074

BRAND NEW RELEASE!! BY APPT: Flaminkhof - Apartment tiled throughout offering 3 bedrooms, bathroom, fitted melamine kitchen, spacious TV room/lounge, open balcony with a beautiful view. Secure parking. Close to the Nelson Mandela Bay Stadium, primary/high schools, N2 freeway and Greenacres Shopping Centre. SHARON ROBERTS (C) 082 327 4074

GLENROY - R220 000

BY APPT: KLOOFZICHT VILLAS Build your dream home on this 380m² plot which overlooks the nature reserve and is in a well maintained and access controlled freehold facebrick complex. Close to the N2 freeway, primary/high schools and shopping centres, including Baywest Mall. SHARON ROBERTS (C) 082 327 4074

SALISBURY PARK - R1 395 000

D L O S NEW RELEASE!! BY APPT Modern home with top quality finishes offering 3 bedrooms, 2 beautiful bathrooms, stunning granite kitchen with gas stove, tiled TV room/dining room, covered patio with outdoor braai leading to porta pool, double garage on remote, fully enclosed front and back garden, alarm system, electric fencing. A MUST TO VIEW!! SHARON ROBERTS (C) 082 327 4074

s th al e m ab ni iz A El rt

D L O S

SYDENHAM - R445 000

If your family pet is missing, or if you have picked up a lost pet, visit Facebook page WALMER HEIGHTS - R1 595 000

SPACIOUS AND STUNNING

This home in the heart of old Summerstrand offers 4 bedrooms (bic), 2 bathrooms (1mes), formal lounge, family room flowing into diningroom and farm size modern fitted kitchen, study, pool with entertainment area with build-in braai, laundry, servant quarters with bathroom, double garage, PLUS spacious flatlet with kitchenette and bathroom. R2 699 000 STEPHEN 082 400 9510

This large home offers 3 bedrooms (bic), lounge, diningroom, entertainment area, pool. 2 Bathrooms (1mes), double garage PLUS one bedroom flatlet. R1 299 000 STEPHEN 082 400 9510

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