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3 steps to avoid buyer’s remorse

Becoming a home owner is such a huge moment and the whole process of moving in and settling in can sometimes overshadow home buyer’s remorse – which does happen and is not spoken about enough in real estate.

When the property market is moving fast, buyers rush to make decisions, and sometimes these rush decisions could lead to buyers, especially first-time buyers, feel that sinking feeling that can be avoided if you stick to three basic rules.

Here, we share our best tips to help you avoid buyer’s remorse on what is likely to be the biggest purchase of your life.

Budget and then go lower

Shopping too close to what you can afford might not leave enough room to actually live comfortably within your means. If you can afford to buy a home in the R1,5 million bracket consider shopping around in brackets a R100 000 less as well – you will have more money at the end of each month if you use the extra money to put into your deposit as it will result in a smaller bond repayment.

If you are not stressing about bond repayments, you will have more time to enjoy your new home.

Get everything inspected

It might seem like another expense on top of an already costly process, but getting your dream home inspected by a professional home inspector will ensure that you don’t buy something that is going to be a money-pit.

Having a licensed inspector investigate the property will uncover any problems with the foundation, pipes, electrical work, roof, or other high-priced items. If you opt-out of an inspection, you run the risk of entering a home full of repairs — leading to a bout of buyer’s remorse.

Lists, lists, lists

While the old adage might be location, location, location, we believe in lists, lists, lists when it comes to avoiding buyer’s remorse. When you’re buying a home, make sure you’ve got a list of your “must-haves” and “would be nice to have” features.

For instance, if you work from home, space for a home office might fall into the must-have category. Having a open plan kitchen or a fireplace – those are more of the nice-to-have type of features. Having written this down will help you stay focused.

We know that finally calling yourself a home owner is such a incredible feeling, but making decisions too quickly or based on other people’s opinions will only lead to hating the space you are in. And who wants that! So if you are feeling hesitant, hold off and make your decision with a clear mind.

Found your dream home? Here is how we can help

Make sure you are ready to buy with our ultimate guide to buying a home for first-time buyers or make use of our home loan experts and get prequalified and apply for a home loan

Original Article: https://www.myproperty.co.za/news/market-and-opinion/3-steps-to-avoid-buyer-s-remorse-03-06-21

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Applying for a home loan? Ask these financial questions

Before a home loan is approved, banks and other financial institutions will perform extensive research on your financial history – making financial preparedness vital.

If you are getting ready to apply for a home loan, you need to assess your financial wellbeing and you should know the answers to the following questions:

What is my credit score?

Would-be homebuyers should know their credit score and check their credit record to ensure that everything is in order. It is possible for negative credit information to be recorded by mistake.

Checking your credit record before applying for finance will allow you time to rectify any mistakes that could harm your bond application success. Consumers are entitled to a free credit report each year, so they should be sure to check it.

Any accounts or bills that have been handed over for collection should be paid and sorted out before applying for finance. Defaults or slow payment notifications will have a negative impact on a credit score, so it is important to make payments timeously.

What is my annual income?

The bond amount that a consumer qualifies for will be determined by their income. So it is important to include any bonuses or annual investment returns when making this calculation. Annual tax return documentation will assist you in determining your actual yearly income.

How much debt do I have?

Disposable income is a key consideration when the bank considers the home loan amount they are willing to grant. For this reason, you should try and get rid of debt or at least pay it down as much as possible.

The bank will require applicants to provide them with a list of their monthly expenses to determine the debt-to-income ratio. The ratio will be used as a measurement tool to determine the appropriate bond amount that the applicant can afford.

Having a lower debt-to-income ratio will be highly beneficial to consumers who want higher bonds.

What is my financial worth?

Financial worth is more than just your income. It also relates to any assets owned, such as vehicles, investments, and income-generating properties. All of these aspects add to your net-worth and will have a bearing on the amount that the bank is willing to grant.

What kind of deposit can I put down?

More often than not the bank will require a deposit. The deposit can vary between 10% and 30% of the purchase price of the property depending on the circumstances.

Aside from the deposit, you will also need additional money for the costs associated with buying a home such as transfer fees, attorney fees, and bond costs.

What can I afford?

In an ideal situation, the monthly house payment, which includes the bond, interest, taxes and insurance should not take up more than around 30% of your income before taxes.

It is possible to get an idea of your affordability levels from an online bond calculator or with the help of a financial professional. A bond originator service such as MyProperty Home Loans can also provide valuable guidance as to how much you can comfortably afford.

Found your dream home? Here is how we can help

Make sure you are ready to buy with our ultimate guide to buying a home for first-time buyers or make use of our home loan experts and get prequalified and apply for a home loan

Original Article: https://www.myproperty.co.za/news/market-and-opinion/applying-for-a-home-loan-ask-these-financial-questions-19-05-21

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Fire Safety Measures for Households

The recent blaze that unfolded along the Cape’s iconic Table Mountain was a reminder of the very real threat fire poses to homeowners. It is impossible to predict if and when such a disaster might strike, which makes it all the more important for homeowners to have all the necessary safety precautions in place to minimise the potential harm.

“If a fire is not handled correctly, it can have a devastating outcome. Not only does it put your family at risk, but it can create severe damage to the property as well. Investing in a smoke dictator and fire extinguisher are good ways to minimise these risks. Saving the number of your closest fire department in your phonebook is another vital part of being prepared for an emergency,” says Regional Director and CEO of RE/MAX of Southern Africa, Adrian Goslett.

To help homeowners become better prepared, RE/MAX of Southern Africa shares a few basic home safety precautions against an unexpected fire outbreak.

Create a home evacuation plan

Homeowners should take the time to create and practice an evacuation plan in the event of a fire. Though this might not seem necessary for a small household, Goslett encourages all homeowners, at the very least, to have a short discussion with everyone in the home during which they outline a rough exit plan that is simple enough for all to understand and execute in times of panic.

Those who want to be more thorough should draw a rough sketch of the floor plan of the home. On this floorplan, outline two exit routes for every room within the home and designate a single meeting spot outside of the home. If applicable, create an alternative route for those with disabilities. To make sure everyone remembers the exit plan, practice this exit strategy with everyone in the home at least twice a year.

Check your fire extinguisher regularly

All homeowners should invest in a fire extinguisher and keep this in an easily accessible area in the home. The fire extinguisher should be inspected at least once a month to ensure that it is in a fully operational state. Things to look out for when doing this inspection include any noticeable damage, leakage, changes in the pressure gauge and corrosion.

Review your insurance policy

Homeowners should also review their home and households content insurance policy to see if they are covered against fire risk and what might be excluded from their policy. Those who live in high-risk zones might consider taking out a more comprehensive policy to guard against loss in the case of a fire. When reviewing their policy, homeowners should also decide what material possessions in the home are worth trying to rescue before a fire gets to them and which can be easily replaced once their household insurance claim pays out. Items such as photo albums and other sentimental objects could be kept in a fire-proof safe for peace of mind.     

“Being prepared for a potential runaway fire may not seem like a pressing matter right now, but homeowners should consider how quickly these kinds of disasters can occur. In a situation like this, time will be working against you. Being prepared can help minimise harm and get you and your family away from danger before any serious injury occurs,” Goslett concludes.

Original Article: https://www.myproperty.co.za/news/lifestyle-and-architecture/fire-safety-measures-for-households-17-05-21

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5 Considerations Buyers Need To Keep in Mind

Homeownership is a milestone that most people aspire to achieve and while there are several benefits to owning a property, it is vital that they are 100% ready and prepared for the responsibilities that come with homeownership.

Finding your dream home and navigating the property purchasing process are just some of the considerations potential home owners will need to take into account.

There are several factors that need to be considered carefully before you can be certain that now is the right time to buy a home. For example, you need to know if you are able to take on the responsibility of maintaining a property or paying for something if it needs to be repaired. As a homeowner, there is no longer a landlord to rely on.
Here are some of the biggest considerations you need to mull over before you sign an offer to purchase:

Living arrangement considerations

As a buyer, there are a multitude of costs you need to be aware of that includes a deposit, as well as the bond costs and attorney fees, insurance, and the general upkeep of the home.

So if you are thinking of buying a home and only staying short-term then it obviously doesn’t make financial sense to purchase a home. Ideally, a buyer should be planning to either stay in or hold onto their property for a period of at least seven years, but preferably longer. This will give you time to pay a large portion on the bond and hopefully for the home’s value to appreciate enough to see a return on your investment when you sell.

Consider your future plans and where you see yourself in the next five to ten years. If you are ready to settle down in one place for a long period, you might just be ready to buy.

Financial considerations

The large majority of South Africans will be loan-dependant when buying a home. What this means is that their home buying ability will be subject to bond approval with a bank.

A buyer’s bond approval success will be based on their level of affordability, which is affected by their debt to income ratio. It is best for a potential buyer to pay down their debt as much as possible before applying for finance.

You should focus on creating as big a gap as possible between the money you earn and the money that is paid out to expenses and debt. It is important that you don’t make any large purchases during this time, such as buying a new car, for example.

Pre-approval through a bond originator is an excellent way for buyers to determine how financially ready they are to own a home or what they may need to do to get there.

Saving considerations

Saving is a vital part of homeownership preparation. Apart from the fact that most buyers require a deposit, there are other costs that they will need to carry during the buying process such as attorney fees, bond registration costs, and moving expenses.

It is also a good idea to have an emergency fund saved up for any unexpected problems or repairs that may occur. Owning a home means that there is no longer a landlord that can be called to sort out the issue – the problem is for the owner to fix.

There is a fair amount of maintenance that goes along with owning a property so it’s good to make a financial plan and have a nest egg to dip into when the need arises.

Timing considerations

Due to the impact that buying a home will have on your long-term financial wellbeing, it is vital that you don’t rush into a decision. However, it is also equally important not to let an opportunity pass just because you are not fully prepared to take advantage of it.

Timing is a crucial factor when it comes to homeownership readiness. Ideally, a buyer needs to be ready to buy, but should also be able to wait if required.

Buyers need to give themselves enough time to research and find the right property but don’t want to be in a situation where they have started too early and still have six months left on their lease agreement.

Expectation considerations

A progressive step towards homeowner readiness is realizing that owning a property is not always going to be smooth sailing. The reality of homeownership is that it takes time, effort, and a financial commitment. However, although there are some challenges that homeowners will face along the way, the end result is an appreciating asset and a home that they can call their own.

Original Article: https://www.myproperty.co.za/news/market-and-opinion/5-considerations-buyers-need-to-keep-in-mind-07-05-21

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Selling? Here’s how to stage your home

For many, selling their home means starting a new and exciting chapter in their lives. While preparing for this next chapter, it is important to prepare the current home for listing to ensure that it stands out from the crowd while on the on market.

Preparation is a key element to guaranteeing that the home is sold for the best possible price within the shortest time frame. We take a look at a few tips that homeowners could utilise to give them the edge over the competition.

Highlight the idea that the home is move-in ready

When it comes to paint, a neutral palette is always a timeless option that will appeal to the largest percentage of potential buyers. The same is true for other aspects of the home such as the furniture and window coverings. It is not necessary to employ the services of a professional interior design to stage the home before selling – a few simple DIY projects can make a big difference. There is a wealth of information available to sellers online and in property-related publications. Ideally the home should look as though it is ready for the buyer to simply move-in.

Depersonalise and remove clutter

When buyers view a property they want to be able to envision themselves living there and making it theirs. If possible, it is best to simplify spaces by removing everyday items such as the TV remotes, piles of laundry, pet toys, schoolwork, and the to-do lists on the fridge – this also includes more personal photos. Well-organised, minimal shelves and counters showcase the space potential, rather than personal items. The homeowner is in the process of preparing to sell their home, so why not get started by packing away personal items? It will declutter the home and make it one less thing to worry about during the move.

A fresh bunch of flowers and some plug-in air fresheners will have the home smelling great and be more inviting to buyers.

Cater to the senses

Sellers should consider what a buyer will experience when they first walk into the home. What will they see, smell, hear and touch? There is often an emotional response to a home that is triggered by the senses. For example, the smell of freshly baked cookies will make the house feel more like a home, prepares to evoke a nostalgic feeling in the buyer.

A dirty, smelly home is not appealing to anyone. Hiring a professional cleaning service will make the home smell and look great. Sticky floors and filthy light switches will only turn buyers off. Homeowners with pets should consider confining them to one area of the property while the house is on show. A barking dog can hurry a potential buyer along during the viewing. Instrumental music during the showing will appeal to the buyer’s ears.

Update and simplify

Replacing dated elements in the home with contemporary designs will give it a fresh and modern look. Rather opt for a cleaner, simpler look than going for harsh patterns or edgy colours and avoid styles that clash with one another. It is better to have an empty wall or bare space, than have elements that don’t work well together.

Here is a checklist that sellers can use when staging their property:

Exterior:

  • The lawn is cut, edged and weeds are pulled
  • Dead bushes and trees removed
  • Garden tools, hoses, pet toys and dog waste are clean up or put away
  • House itself has been power washed
  • Patio or deck is cleaned, freshly stained and in good repair
  • Add outdoor lanterns and candles to patio area
  • Large cracks in the driveway and walkways are repaired

Interior:

  • Home is clean, decluttered, and appeals to all senses
  • Dated elements have been modernised or removed
  • Personal photos and items have been packed away
  • Everyday items and daily messes have been cleared
  • Toiletries, perfumes, and jewellery are not on the bathroom vanity
  • Small appliances and dishes are not cluttering the kitchen
  • Fresh flowers or plants are added throughout to add life to the space
  • All aspects of the home are in good repair and working order

With these tips in mind when staging a home, a seller will be able to prepare and enter into the sales process with confidence, knowing that their home is in its best possible condition.

Original Article: https://www.myproperty.co.za/news/market-and-opinion/selling-here-s-how-to-stage-your-home-30-04-21

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What you need to know about the neighbourhood before selling

Before you decide to sell your property, you need to know what type of competition you are facing in the neighbourhood – especially when the market is in favour of buyers.

Here are few aspects that sellers should consider about their neighbours before they list their home:

Who is renovating?

If possible, it would be advantageous to tap into the neighbourhood grapevine and see who is renovating their kitchen and upgrading their bathroom fixtures. These upgrades generally add value to a property and attract buyer’s attention. A real estate professional who specialises in the neighbourhood will be able look up the listing and sale prices of those homes to find out if the updates made a difference to the bottom line.

How much time are homes spending on the market?

Before listing, sellers should keep an eye on how long it takes for a home to be sold in the neighbourhood. This will give some important insight into how they can expect their home to be sitting on the market and plan accordingly.

Depending on the neighbourhood, properties available and buyer demand in the area, it could take less time or in some cases a bit more. It all depends on the specific circumstances that surround that particular trading environment. Other factors can also come into play such as pricing the home correctly at what is perceived to be fair market value for the area.

Take stock of the available inventory

It can be difficult to obtain a competitive price when inventory is high and buyers are few. All the sellers in a particular neighbourhood will be competing against one another for the same pool of buyers. If there are several homes for sale within a relatively small radius, it might be worthwhile to wait for a while before listing the property. An experienced agent will be able to provide vital information with regard to the current market trends and the best time to list the property.

Stay up-to-date on any area planning and zoning news

While buyers want to purchase a property that is within proximity to amenities, they won’t want to stay there while major construction is underway. Sellers should keep an eye on any upcoming public projects that could impact their property listing timing. If there are any potential projects, the seller can discuss a selling strategy with their agent to work around possible issues.

A real estate agent with extensive working knowledge of the local market will be able to put all aspects into perspective when considering selling. Sellers will benefit from using an agent that has an understanding of the unique dynamics surrounding their specific neighbourhood.

Original Article: https://www.myproperty.co.za/news/market-and-opinion/what-you-need-to-know-about-the-neighbourhood-before-selling-28-04-21

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Signs that your are ready to buy a home

The current interest rates are driving up demand among first-time buyers and it is not difficult to understand why. At the current rate, buyers can afford to purchase homes they might never have otherwise qualified for.

According to bond originator, BetterBond, with the interest rate at 7%, a buyer would need to earn about R26 000 to qualify for a bond to buy a home of just over R1 million. The monthly instalments would be about R7 800. Last year, when the interest rate was at 9.5%, someone with the same salary would only have been able to afford a home of just under R900 000.

Benefits

Despite this potential savings, Regional Director and CEO of RE/MAX of Southern Africa, Adrian Goslett, explains that most people end up purchasing property with their hearts rather than just their minds. “It is the lifestyle benefits rather than the potential financial benefits of homeownership that tend to have more sway among buyers who are uncertain about whether they are ready to purchase a home of their own,” he explains.   

For example, those who were previously tenants might be more swayed by the fact that homeownership provides the freedom to express one’s unique style and completely customize the interior and exterior spaces of the home. “Homeowners no longer have to abide by regulations regarding wall colours or hanging art. They can remodel and renovate the home as they see fit. This can be an incredibly liberating experience for first-time buyers,” he says. 

Stability

Beyond this, owning a home provides buyers with a sense of stability that renting simply cannot offer. “Owning your own home means that you have a place in which to cross milestones and create lasting memories with your family. You do not need to stress about whether the landlord will renew your lease or push up the rent to beyond what you can afford. Homeownership provides you with the security to mark your children’s growth against the door frame without worrying about whether you’ll still be there to track their progress by their next birthday,” says Goslett.

This brings up the next reason why many are swayed into home ownership. “Many first-time buyers make the decision to purchase a home simply because they have outgrown their previous living space. Renting an apartment makes sense when the person is young and their possibilities are endless. But, once they have settled down into a career and maybe even had a family of their own, homeownership becomes far more appealing,” Goslett suggests.  

Financial

As a final consideration, Goslett highlights the fact that the monthly costs associated with homeownership is similar to what a tenant would have paid in monthly rent. “Only this time, the payments contribute to a property that is his or her own appreciating asset. The closer they get to paying off the home loan, the more they contribute towards their own personal net worth,” he concludes.

Original Article: https://www.myproperty.co.za/news/market-and-opinion/signs-that-your-are-ready-to-buy-a-home-23-04-21

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4 Money mistakes first-time buyers make and how to avoid them

Navigating your finances as an aspiring first-time home buyer can feel like a minefield – from maintaining your credit score to saving up for your deposit – but knowing the money mistakes most first-time buyers make and how to avoid them will help smooth out the process.

Less than stellar finances

It might seem like having a good credit score and a deposit should be enough when applying for a home loan but it is not. For most home loan applications, banks require 6 month’s worth of bank statements, and having bank statements that reflect poorly managed finances is not ideal.

You want to show the bank that you can afford your bond repayments comfortably and one way they check this is by inspecting your bank statements.

If you are getting ready to buy a home, we would advise you to start at least a year in advance by getting your cash flow under control by limiting unnecessary spending, and living within your means. We also suggest that you make sure that all of the funds for the home purchase are in your account at least three months before applying for a home loan.

Buying the most expensive home that you qualify for

So you have taken the first step and got prequalified – to your surprise you qualify for a pricier home than you anticipated. Although it’s tempting to buy at the top of your budget, this can be a mistake.

If you have done a proper budget and accounted for your monthly expenditure before buying a home, adding a bond repayment that is much higher than you first anticipated could set you up for failure.

Avoid this by sitting down and really figuring out what other priorities you would like to spend money on – owning a home is just one of your goals at the end of the day. Maybe you would like to travel a lot in the next two years and would therefore consider a smaller lock-up-and-go property with a smaller bond repayment, maybe you are investing in your education or starting a small business – weigh up which goals you would like to achieve and how much you need to spend on a home loan and your goal to achieve both.

Forgetting about the hidden costs

Even if you’ve saved diligently for a deposit, it’s easy to be caught by other costs associated with buying.

Buyers often only think about their deposit and forget about all the other costs associated with buying a home. In the end, they realize they don’t have enough funds to purchase a property.

It’s a good idea to research and calculate approximately how much extra cash you will need in order to purchase a home and factor this into your savings plan.

Spending too much too soon on your new home

You have bought your home and now you are ready to start turning it into the Pinterest-board of your dreams – but while there is nothing wrong with buying new furniture or undertaking a painting project you have to make sure you have the funds to do so.

We would advise first-time home buyers to give themselves some time to adjust to the financial implications of home ownership before spending large amounts of cash on new things for their home.

Don’t make new debt for the first few months of owning a home. First make sure that you have enough savings for the anticipated bond repayments, taxes, and insurance in addition to all the hidden costs.

Original Articles: https://www.myproperty.co.za/news/market-and-opinion/4-money-mistakes-first-time-buyers-make-and-how-to-avoid-them-13-04-21

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The ultimate guide to buying your first home

From buying your first home to adjusting to home ownership, we’ve got you covered with everything you need to know!

  • Preparing to buy
  • Home loans – what you need to know
  • How to find your dream home
  • Adjusting to owning a home

Preparing to buy

1. Do a lifestyle audit

Before you buy a home you need to sit down and seriously audit your lifestyle – are you spending a huge amount of money on take-out lunches or are those sneaky late-night online shopping binges getting out of hand? It is best to be honest about where you can cut costs to ensure your cash flow and savings get a boost as buying a home and home ownership involves a lot more than just a bond repayment each month.

This includes looking at your credit score and making the necessary adjustments to get it in the best possible place before buying a home.

2. Save up for that deposit

Qualifying for a large home loan does not mean that you should take it – having a deposit ready will reduce the amount you need to lend and thus reduce the monthly bond repayments you need to make.

Use a bond calculator to determine what your monthly repayments would be with and without a deposit

3. Save up for the hidden costs

More costs? Yes! Buying a home has a lot of hidden costs that first-time buyers aren’t fully aware of. Transfer fees, conveyancing fees, deposits for lights and water all need to be paid, and should be taken into consideration. Get some idea of what you’re in for before buying, and make sure you have enough cash to take care of all the additional costs.

Home Loans – what you need to know

1. All the documents you need

Here is a run-down of the documents you will need for a home loan application and additional documents required if you are buying through a trust. We also take a look at individuals that are self-employed.

  • Documents you require for all applications
  • A copy of your ID document
  • A copy of the offer to purchase containing both the seller and purchaser’s details
  • Proof of income. You will need to provide a salary slip (not older than two months), or a letter from your employer with a breakdown of your salary and deductions. If you are self-employed then you will need a letter from an accounting officer confirming your income, or a statement of your assets and liabilities
  • Six months’ worth of bank statements

Employed buyer

  • If your earn commission or overtime, provide the latest 6 months statements. Statements should be verified and supplied by the bank – internet statements aren’t acceptable.
  • Copy of your ID document.
  • Copy of Marriage Certificate or ANC Contract (if applicable).
  • Application form and consent document.
  • Copy of the Purchase Agreement.

Self-employed buyer

  • Proof of income: Letter of Drawings from an Accountant (for all applicants if applicable).
  • Personal Assets & Liabilities Statement.
  • Latest 2 years’ Annual Financial Statements.
  • Where Annual Financial Statements are older than 6 months to date, Current Management Accounts not older than 2 months signed by the applicant and accountant must be provided in addition to the Annual Financial Statements.
  • Copy of Marriage Certificate or ANC Contract.
  • Copy of Registration Documents or Trust Deed.
  • Application form and Consent Document
  • Copy of Purchase Agreement

Documents you require for a trust

  • A copy of the Trust Deed
  • A resolution by the trustees advising who may sign the home loan or pre-approval application and property purchasing documents

2. What is prequalification and why should I do it?

A pre-qualification is a basic review of your finances to determine if you would qualify for a mortgage. In general, a pre-qualification is based on unverified information you provide and a credit check.

A pre-qualification can show sellers that you’re serious about buying a home and that you’re likely to be able to follow through on a bid, and close on their property.

3. Where do I apply for a home loan

For many people doing it themselves and using their current bank seems like the logical option – but shopping around for a home loan can actually get you a better home loan – and who doesn’t want that?

You can use the MyProperty Home Loan service where our team of experts not only helps you get prequalified, they also help you get the best home loan possible.

How to find your dream home

1. Buy in the right area and for the long-term

Unlike renting, you cannot easily change homes if you have outgrown the property within a year of moving in. If you are planning on having kids in the next five years consider the size of the home, the area, and how child-friendly it is. A city apartment on the seventh floor isn’t quite the right fit for a busy two-year-old. Do you have pets and how much space do they need?

If you are someone that loves getting out for a run every day how easily can you run around the neighbourhood? Maybe you want to be able to walk to the shops or pop down to the beach for a surf after work – answering all these things will ensure you have a happy time in your home.

2. Don’t be dazzled

All that glitters most certainly isn’t gold. Don’t allow impressive features to cloud your judgement. Nothing, not even gold-plated taps or a spa bath is going to make your life better if the rest of the property doesn’t fit your needs or even worse has some serious defects

3. Appoint a real estate agent

Buying a home for the third time is nothing like buying a home for the first time and without the guidance of an expert, it can all go wrong.

It might seem like an unnecessary expense but a real estate agent will be able to not only help you navigate the ins and outs of the whole process, they will also be able to help you with valuable insight into the home you are considering buying and the surrounding area.

Adjusting to home ownership

1. Make sure you are properly insured

It’s important that homeowners understand that they need to be adequately insured for the replacement value of the building, not just the market value, plus all the contents and they must specify items that are valuable.

No-one wants to dwell on unpleasant events that may never happen but the fact is that they can – and often do – occur and being well-prepared for any eventuality is not only sensible; it affords you peace of mind, allowing you to get on with life with one less thing to worry about.

2. Don’t ignore important maintenance

Whilst you should exercise restraint in purchasing non-essentials immediately, don’t neglect any problems that are likely to worsen over time and which could become very costly to repair. Cosmetic repairs can wait but not issues like a leaking roof or blocked plumbing. Create a home maintenance checklist and include regular home maintenance tasks that you’d want to do on a monthly, quarterly, or annual basis. Doing so will extend the life of almost everything in your home, potentially saving you a lot of money over time.

3. Maintain an emergency fund for unexpected problems

As a homeowner, you can no longer call the landlord when there’s an issue and you should be prepared to deal with unexpected problems when they arise. These can be expensive and you can’t do without a geyser or working plumbing or live with a leaking roof.

Original Article: https://www.myproperty.co.za/news/market-and-opinion/the-ultimate-guide-to-buying-your-first-home-07-04-21

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Asbestos compliance and removal – what property owners need to know

In November last year, asbestos was finally outlawed and building owners were given only 18 months to plan removals from their properties, including homes, residential complexes, schools and all commercial and industrial buildings but almost five months in there is still little awareness of this ruling.

“Considering all the COVID-related challenges of the past year, it’s not surprising that this announcement flew largely under the radar,” says Chris Cilliers, CEO and Co-Principal of Lew Geffen Sotheby’s International Realty in the Winelands.

“And after a tough year of widespread financial loss, especially in the commercial sector, I find it difficult to imagine that very many property owners would be on top of this matter and on track to meet the deadline.

“In the rental sector many landlords will be hesitant – or even unable – to spend money when the rental market has been so badly affected by the pandemic, even more so as It would require that the house be vacated whilst the work is done.

“It would create havoc for both the tenant and landlord if there is a tenant in place and, even if it is done at the end of a lease, it will mean that the property is unoccupied for some time.”

The Asbestos Abatement Regulations, 2020 which replaces the Asbestos Regulations of 2001also states that should asbestos be identified in the workplace, the employer is required to employ a qualified person to compile an initial asbestos inventory and risk assessment as well as follow up reports at intervals of no more than 24 months.

According to Michaal de Jager of Michaal de Jager Ontwerp, in light of the new regulations, it’s especially important to bear the asbestos factor in mind when buying an older property.

“Asbestos is a naturally occurring fibrous material that was commonly used in home and building construction for its fire retardant and thermal insulation from the1930’s to 1980 and it’s estimated that it could be present in up to a third of all unrenovated properties built during that time.

“So, when considering the purchase of a property built during those years, one will have to factor in the cost of removal, especially if you plan to renovate, because asbestos has to be removed by specialist companies and disposed of strictly in accordance with the regulations.

“And although the onus would fall on the seller to disclose the presence of asbestos they may have no idea that it’s present in their property because it’s almost impossible to identify simply by looking at an item or feature, which makes it very difficult to locate it in your house.

“However, if the seller is aware of it and offers full disclosure, there may well be a cost implication that will affect the purchase price of the property.”

De Jager cautions that property owners should not try to identify the substance on their own because the easiest way to determine its presence is also the most dangerous and there is a very high risk of the exposed asbestos fibres finding their way into the air that your family or employees breathe.

“It might be difficult to identify asbestos just by looking at it, so you need to send samples to a lab for testing and the mere act of taking samples could well release fibres.”

De Jager adds that DIY enthusiasts should also take extra care when renovating older homes.

“In the era of do-it-yourself home renovations, many homeowners are knocking down ceilings and walls, and tearing out floor tiles and old pipes but in their efforts to upgrade and their older homes, they might unknowingly be contaminating the very air they breathe.”

He adds that asbestos can only be safely positively identified by a person trained in fiber identification with a special polarized light microscope.

Common building products that might contain asbestos include:

  • Steam pipes, geysers and furnace ducts – these materials may release asbestos fibers if damaged, repaired, or removed improperly;
  • The backing on vinyl sheet flooring and adhesives used for installing floor tiles – sanding tiles can release fibers as well as scraping or sanding the backing of sheet flooring during removal;
  • Cement sheet and millboard used as insulation around furnaces and woodburning stoves – repairing or removing appliances may release asbestos fibers;
  • Door gaskets in furnaces, wood stoves, and coal stoves – worn seals can release asbestos fibers during use;
  • Patching and joint compounds for walls and ceilings – fibres can be released by sanding, scraping and drilling;
  • Textured paints – sanding, scraping, or drilling these surfaces may release asbestos;
  • Asbestos cement roofing, shingles, and siding – these products will only release asbestos fibers unless sawed, dilled, or cut;
  • Artificial embers sold in gas-fired fireplaces;
  • Other older household products which might contain asbestos are: fireproof gloves, stove-top pads and ironing board covers.

Original Article: https://www.myproperty.co.za/news/legal/asbestos-compliance-and-removal-what-property-owners-need-to-know-29-03-21

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