fbpx
Categories
Blog

Home buying tips: Prioritize needs over wants for a perfect fit

Before getting carried away with a list of features your dream home should have, it is best to define what it is that you want in a home versus what it is that you need. Often things that were once seen as a must-have aren’t that important when lifestyles and circumstances change.

When it comes to finding the right home, it is best to sit down and think about what it is that you need – and not just what you want. After some contemplation, you may find that the ideal home for you and your family is not what you initially thought it would be. You may want a large home with a garden and room for entertaining, only to find that your lifestyle and busy schedules wouldn’t allow for it and a low-maintenance, lock-up-and-go property would suit you better. Carefully considering your lifestyle will help you to create a list of what is truly needed.

You should ask yourself, what do I need from my home? The keyword to remember is ‘need’. When it comes to making a major financial commitment such as purchasing a home, or for that matter any life-changing decision – a need should always trump a want. The challenge is separating and determining the difference between a need and a want.

Here are a few considerations to help you determine whether you are looking for a property with the right mindset:

Create a list

A great way to organise one’s thoughts is to put pen to paper. Create a list with two columns – one for wants and the other for needs. The needs column should include elements such as location, school zones, neighbourhood, budget, number of bedrooms, features, and amenities, stand size, number of garage spaces, Home Owner’s Association, and Body Corporate details where applicable. The wants column is for the aspects that are regarded as nonessential such as the specific style of the home, renovated kitchen or bathrooms, deck, swimming pool, hot tub, flooring material, fireplace or wood stove, window material, and landscaping.

Consider your future plans

A major consideration is how long you plan to stay in the property. This aspect in itself can have a massive impact on your needs and wants. If you are planning on staying in the home for five years or longer you should think about possible upcoming life changes. These could include having a baby or accommodating an aging parent. While the home may not currently have an extra bedroom, could it be added to meet your future needs?

Be prepared to compromise

Searching for a new home and going through the buying process can be exhausting. However, being realistic will ease your mind and reduce stress. Life often indoctrinates people by telling them they need certain aspects to be happy. It is best to take a step back and ask what truly makes you happy. The answer to that question will be unique to everyone – if a large garden will make you and your family happy, then make that that a need. However, be prepared to compromise on other wants if necessary. Spend time defining your lifestyle and what you could forgo in order to be happy in your home.

Determining the difference between a want and a need will make the decision aspect of the home-buying process far easier. While buying a dream home is a good aspiration to have, it is more important to buy the right home.

Original Article: https://www.myproperty.co.za/news/market-and-opinion/home-buying-tips-prioritize-needs-over-wants-for-a-perfect-fit-07-12-23

Categories
Blog

Beat the Heat: Effective Strategies to Cool Your Home During The Summer

After one of the wettest and coldest winters South Africa has experienced, the hot summer months are now well on their way. To help homeowners survive the coming heat waves, there are a few home alterations that can be undertaken to prepare for the coming summer months.

Rather than only improving the overall comfort of the home, Regional Director and CEO of RE/MAX of Southern Africa, Adrian Goslett, suggests that upgrading the home’s heating and cooling solutions is also a great way to add value to the home.

“Installing an air-conditioning unit or having proper insulation installed in your ceiling can be some of the most effective ways of keeping your home cool during the summer months. Yes, these options are more expensive than purchasing a R100 fan at your local supermarket, but these purchases will not be money wasted. Unlike most cheaper options, these solutions will make a noticeable difference in the temperature of your home, as well as increase the resale value of your property should you ever decide to sell,” Goslett explains.

Replacing wooden window and door frames for aluminium frames can also help with the home’s insulation. Although these can be expensive to replace, adding new window and door frames to a home can greatly improve the home’s overall appeal to future buyers and might make it easier to secure a quick sale.

However, for those with limited budget to spare, there are other ways to help keep your home cool this summer. Here are some innovative and green methods to keep your home comfortable:

  • Solar-Powered Fans: Prepare for the possibility of loadshedding. Harness the power of the sun with solar-powered fans. These compact devices are equipped with solar panels that convert sunlight into energy to keep the air circulating. Place them strategically in windows or other areas with direct sunlight to maximize their effectiveness. You can also look into battery operated fans or a UPS that can be used to keep a fan going.
  • Cooling Curtains: Invest in thermal or blackout curtains designed to block out the sun’s rays and insulate your home. By preventing heat from entering, these curtains can significantly reduce indoor temperatures. Choose light-colored curtains to reflect sunlight, and keep them closed during the hottest parts of the day.
  • DIY Swamp Cooler: Create a DIY swamp cooler using easily accessible materials. Place a bowl of ice in front of a fan or make a simple one using a wet towel draped over a chair with a fan blowing through it. The evaporating water will cool the air, offering a refreshing breeze without the need for electricity.
  • Strategic Ventilation: Maximize natural ventilation by strategically placing fans and opening windows. Create cross-ventilation by opening windows on opposite sides of your home to allow cool breezes to flow through. Position box fans in windows to pull in fresh air while expelling warm air.
  • Ice Packs and Cold Compresses: Place ice packs or cold compresses on pulse points, such as wrists, neck, and ankles, to cool your body down. This can be a simple yet effective way to maintain personal comfort without relying on electricity.
  • Use Cool Fabrics: Opt for lightweight, breathable fabrics in your home decor. Cotton and linen are excellent choices for bedding and clothing as they allow for better air circulation and help regulate body temperature.
  • Cooling Plants: Strategically place potted plants, such as aloe vera or snake plants, around your home. These plants not only add a touch of greenery but also release moisture into the air through a process called transpiration, contributing to a cooler indoor environment.
  • Install a ceiling fan – it is a cheaper solution than an aircon and can offer better airflow than a freestanding fan.

“Upgrading a home’s insulation is probably one of the best ways to create a more comfortable and energy-efficient home during the summer months while also reducing your energy bills and environmental impact,” he says.

Original Article: https://www.myproperty.co.za/news/lifestyle-and-architecture/beat-the-heat-effective-strategies-to-cool-your-home-during-the-summer-27-11-23

Categories
Blog

Why Homebuyers Are Flocking to the West Coast

Property owners in West Coast towns have experienced steady increases in value over the past 10 years, says Samantha Nel, a Western Cape area manager for Pam Golding Properties.

“From St Helena Bay and Brittania Bay on the northern shores to Yzerfontein in the south and inland towns like Darling and Vredenburg, property prices have more than doubled in many instances,” she says.

Over the past 20 years or so, the West Coast has developed from a quiet, out-of-the-way, coastal holiday destination to a thriving region with modern shopping malls, medical facilities, and excellent schools within easy reach in Vredenburg and Vredendal. St Helena Bay in the north is just 160 km from Cape Town and Yzerfontein is only an hour’s drive from the Cape Town metropolis.

Overall, residents tend to be mature – 50 to 64 years, and middle-aged – 36 to 49 years, although the latest Lightstone statistics show that the area also attracts younger buyers. And, once they have experienced the appealing West Coast lifestyle, most homeowners opt to stay, with around 50% owning their homes for 10 or more years.

Positively for the West Coast region, the Freeport Saldanha Industrial Development Zone has an anticipated R21 billion investment pipeline which includes an agreement between Sasol and ArcelorMittal SA to produce sustainable fuels and chemicals as well as green steel development, through supporting the establishment of a green hydrogen (GH2) hub in Saldanha Bay. Notably, the planned upgraded port and associated industries have resulted in an influx of younger work seekers to the region.

Says Nel: “While Saldanha sales activity rebounded after Covid, freehold sales recorded in 2021 and 2022 remain below sales numbers posted before the pandemic. In contrast, vacant plot sales registered the highest sales during the past 10 years in 2022 and plot sales so far in 2023 already match total sales in 2021.”

In St Helena Bay, median freehold sales prices increased by 153% from 2013. Prices accelerated in 2021 and 2022 but have slowed in 2023. However, the median sales price of vacant plots has risen steadily through the past decade.

“The number of freehold properties sold in this area increased noticeably in 2021 – and sales have remained elevated since then. Sales in 2021, 2022 and those already recorded this year are the highest seen during the past decade,” says Nel.

In Britannia Bay, the median price increased by around 110% over the past 10 years. Just 28% of homeowners have owned their properties for 11 or more years, while 40% have owned for less than five years. This suggests a large influx of new owners in the wake of the pandemic, says Nel.

In Darling, the median sales price for freehold homes has risen strongly in 2023 – up from R1.275 million in 2022 to R1.69 million. A massive 76% of homeowners here have owned their properties for 11 or more years.

In Langebaan, freehold prices have increased by around 86% over the past decade – and the median sales price of vacant plots by more than 200%. The median sales price of sectional title properties was hit during the pandemic but has since rebounded strongly – with sales in 2022 the highest on record during the past decade.

“Strong growth in house prices and robust sales activity in 2021 and beyond suggest that Langebaan has benefitted from lifestyle changes and ongoing semigration post-Covid,” says Nel.

In Paternoster, the median sales price of sectional title homes – with single-digit sales recorded each year – have exceeded freehold median sales prices every year over the past decade.

Says Nel: “Sales activity surged after the first year of the pandemic and remained elevated in 2022. There has also been a marked increase in vacant plot sales in 2021 and 2022. The town’s housing market has clearly benefited from lifestyle changes in the post-Covid years.”

In Velddrif freehold home and vacant plot sales surged after the pandemic and remain elevated relative to pre-Covid levels.
In Vredenburg, the majority of recent buyers are younger – with 40% middle-aged and another 30% young adults. Freehold home sales have remained largely unchanged compared to pre-pandemic levels. In contrast, vacant plot sales rose strongly in 2021 and then almost doubled in 2022, with prices increasing by around 60% from 2013.

In Yzerfontein, median sales prices have mostly risen steadily over the past decade, with strong growth in prices so far this year – particularly for sectional title homes.

Sales activity rebounded after Covid, with freehold sales in 2021 and 2022 the highest recorded during the past decade.
Concludes Nel: “Overall strong growth in property prices and robust sales activity show that the West Coast is an extremely desirable location to put down roots.”

Original Article: https://www.myproperty.co.za/news/market-and-opinion/why-homebuyers-are-flocking-to-the-west-coast-23-11-23

Categories
Blog

Tenant retention is key for landlords in the current commercial property market

Economic pressures on businesses, exacerbated by increased inflationary headwinds due to high energy and fuel costs – coupled with the potential ripple effect of global socio-political factors, see commercial property tenants seeking the best value for money, says Andrew Dewey, MD of Swindon Property.

Says Dewey: “In the current trading environment, although vacancy rates in the commercial property market are starting to trend downward, tenants in this sector, which includes office, retail, and industrial property, are weighing up their options when it comes to lease renewal.

According to SAPOA’s office vacancy survey (September 2023), while the vacancy rate at the end of Q3 reduced to 15.5% over the previous quarter, down from its 2022 peak of 16.7%, it is still well above the vacancy rate before COVID-19. Coupled with this, the average real asking rental is at a level last seen some 20 years ago.

“Furthermore,” says Dewey, “as the latest Rode Report points out, although more staff have returned to offices, the demand for space is still below pre-Covid levels, with downward pressures persisting due to the subdued economy and electricity crisis.

“Given all the above factors, SAPOA’S report (SA Property Owners Association) concludes that taking into account previous cycles in the market, office rentals may trend sideways at best as landlords aim to retain existing tenants and attract new occupiers to fill vacancies.”

Swindon Property, who is also the commercial associate for international real estate advisor, Savills, notes in a recent report by Savills Research, that the total global value of commercial real estate currently stands at $50.8 trillion, comprising 13% of total global real estate value.

Says Dewey: “Commercial property continues to achieve sound investment returns with the upside of capital growth and with a well-managed, well-maintained property affording the owner significant upside potential on return and exit value. It follows that the considerable value placed on commercial real estate underscores the importance not only of retaining and enhancing the value of these properties, but also of retaining good tenants.

“Although in challenging times the cost of retaining a tenant – versus a relet – may result in a slightly lower than market rate, it has proven to be more cost-efficient than trying to source a replacement tenant. That said, through effective property management, we have the ability to negotiate a better deal for landlords through our range of services that includes access to comparative rentals in the area, taking into consideration the grade or asset class of properties.

“Managing all types of real estate including premium office buildings, industrial warehouses and retail centres, we focus on unlocking the true potential and long-term value of the asset; this includes increasing rental income, reducing vacancies, decreasing operating expenses and minimising arrears.”

Dewey stresses the importance for commercial property owners to maintain the properties, making small improvements over time in order to keep up with trends, for example, upgrading or modernising the façade, and upgrading common areas and ablutions. “These make a difference in the long run, and having a property management company to keep track of this ensures landlords are up to date on what is trending and beneficial to the property over the medium to longer term.”

Adds Dewey: “Other important factors where we assist landlords include:

  • Ensuring that GLA (gross lettable area) and pro rata common area calculations are correct
  • Having up-to-date floor plans which ensures that the square metreage is correct for filling vacancies / new tenants
  • Tenants are managed directly by the respective property manager, with well-constructed leases that protect the landlord’s interests
  • Fire and insurance compliance reviews

Our facilities manager conducts regular maintenance assessments of properties in a preventative manner, which is often much more cost-effective than reactive maintenance.”

Concludes: Dewey: “Another aspect for landlords to consider is the implementation of efficient electricity measures like smart lighting, because although electricity consumption is usually recovered in full from tenants, this is another cost factor similar to municipal rates, which affects the bottom line of tenants, and will therefore play a role in the lettability of the property.”

Original Article: https://www.myproperty.co.za/news/market-and-opinion/tenant-retention-is-key-for-landlords-in-the-current-commercial-property-market-08-11-23

Categories
Blog

The allure of the Western Cape in the rise of multi-continental property portfolios

In a world where high-net-worth individuals seek not only luxury but also strategic investment opportunities, these buyers are embracing a new trend – the acquisition of homes on multiple continents to diversify their property assets across the globe in an effort to offset volatility in traditionally stable markets.

According to the latest Lightstone report, foreign appetite for South African residential property is on the increase with investor numbers steadily rising since 2019, and, whilst Gauteng boasts the highest number of foreign buyers, the Western Cape enjoys the lion’s share of big-ticket sales.

And this accelerating trend, which has seen 64% of luxury foreign sales this year being in the Western Cape, is corroborated by Cape Town property professionals, especially in the most sought-after areas where there has been a notable spike in sales to foreign investors since the end of the pandemic.

Joanna Thomas, Constantia Area Specialist and Stephan Thomas, Constantiaberg Secure Estate Specialist for Lew Geffen Sotheby’s International Realty, both report a sharp increase in foreign buyer interest with a number of high-ticket sales concluded during the past year.

“There has been a lot more interest from UK and European buyers, mainly HNW and UHNW individuals, and the R20 million plus price band has been very active, with a few of sales exceeding R40m.”

Historically, high-net-worth individuals, particularly those from Europe, favoured investing in luxury properties within their own continent and renowned cities like London, Paris, and Monaco have held a timeless appeal.

However, recent geopolitical uncertainties, economic fluctuations, and shifts in global dynamics have compelled investors to rethink their real estate portfolios.

“Traditionally perceived as a safe haven for real estate investments, Europe has recently faced challenges that have prompted high-end investors to reconsider their options with factors such as economic instability, changing regulatory landscapes, and the impact of events like Brexit contributing to a shift in perception,” says Stephan.

“Multicontinental property portfolios offer a hedge against economic uncertainties in any single region and provide an opportunity to capitalise on the unique advantages and growth potential of different markets.”

According to Joanna, most foreign buyers in previous years were ‘swallows’ who spent the summer in Cape Town to escape the European winter but there has been a notable shift in the past two years.

“In addition to the traditional swallows we are now also seeing an increase in the purchase of second and even third holiday homes which are occupied for much shorter periods of time – and these are often much higher value properties.

“Over and above our individual sales, a coordinated effort between the secure estates and Upper Constantia along with our colleagues on the Atlantic seaboard, recently achieved four sales totalling around R204 million.

“All four of these sales were to HNW foreign buyers who paid in cash with one being a resident in South Africa whilst the other three properties were bought as holiday homes.”

She adds that this is not only indicative of shifting trends but also highlights the importance of appointing an agency with a strong network.

“What intrigues me at the moment,” says Stephan, “is the apparent turnaround in foreign investor sentiment, from overly cautious to a lack of concern regarding the challenges facing South Africa.

“In years gone by, it only took a water shortage or a bit of civil unrest to have international investors running for the hills, but these days, when you ask real, live active buyers what their concerns are, or what their risk aversions are, they have very few.

“The current view, especially of HNW buyers, is that the Cape Town property market remains extremely attractive, relatively cheap by international standards and there is little concern in terms of currency stability, civil unrest, service delivery, or political stability and they are happy to spend up to R25m or even beyond.”

Joanna agrees and says that she has been seeing many more HNW buyers prepared to take what they consider to be a calculated risk.

“We often hear these buyers say that they are investing in a lifestyle and, in a post-pandemic world, are looking to live more in the moment. And, with the traditionally ‘safer’ global investment options not being as stable anymore, Cape Town is therefore considered a top destination for diversifying.”

 

Original Article: https://www.myproperty.co.za/news/market-and-opinion/the-allure-of-the-western-cape-in-the-rise-of-multi-continental-property-portfolios-31-10-23

Categories
Blog

How to Find Your Perfect Neighbourhood: A Guide for First-Time Homebuyers

Buying your first home is an exciting and significant milestone in your life. It’s a decision that involves not just the property itself but also the neighbourhood in which it’s located. With cities increasingly adopting appealing urban qualities, it’s essential to find a neighbourhood that suits your lifestyle, budget, and long-term goals.

Understanding Your Budget and Investment Goals

Before embarking on your quest to find the perfect neighbourhood, it’s crucial to understand your budget and the type of investment you’d like to make. The first step is working with a bond originator to assess your financial situation. This involves scrutinizing your income, liquidity, and debt-to-income ratio to determine your purchasing power. Once your financial details are clear, an originator can help you decide on a realistic down payment and purchase price.

Another vital aspect is defining your investment goals. Do you plan to make this property your long-term home, or are you open to selling it in the short term? Are you interested in a property that can generate rental income, like a townhouse with a separate unit, or are you looking for an apartment that may increase in value over time? Answering these questions will guide you in selecting the most suitable property type based on your budget and needs.

Investigate Local Property Prices

One of the most critical aspects of finding the perfect neighbourhood is understanding the local pricing trends. A knowledgeable real estate agent can provide comprehensive data on current and past pricing for apartments and homes in the area. While it’s essential to look at average sales prices, it’s equally important to analyze price appreciation for recently-sold properties. Pay attention to how many properties are selling for over or under the asking price, as this can give you insights into market dynamics and competition.

Search by Proximity

In real estate, proximity often plays a significant role in home values. When a neighbourhood becomes too expensive for some residents and businesses, they typically move to nearby, more affordable areas, setting off a chain reaction. If your dream neighbourhood is beyond your budget, consider exploring nearby neighbourhoods that offer lower asking prices. These adjacent areas may provide a more budget-friendly option while still being close to your desired amenities and attractions.

Evaluate the Available Amenities within the Neighbourhood

When assessing potential neighbourhoods, consider the availability of amenities that align with your lifestyle and preferences. Accessibility to public transit, such as trains, buses, or bike lanes, can significantly impact your daily life. Additionally, having access to green spaces and open areas, whether it’s a local park or a waterfront, can enhance your quality of life. Look for signs of a vibrant community, like residential streets, community gardens, and commercial corridors, which indicate a strong neighbourhood spirit.

While more affordable neighbourhoods may not have fully developed commercial areas, existing coffee shops, grocery stores, and local restaurants are positive signs that the area is evolving and may offer more amenities in the future.

Don’t Be Fooled by Statistics

Crime statistics are often the first thing potential homebuyers consider when evaluating a neighbourhood’s safety. However, it’s crucial not to rely solely on statistics. Instead, seek local input from existing homeowners, business owners, and real estate agents. These individuals can provide valuable insights into the safety and security of the neighbourhood, as they have first-hand experience and knowledge of the area.

Original Article: https://www.myproperty.co.za/news/market-and-opinion/how-to-find-your-perfect-neighbourhood-a-guide-for-first-time-homebuyers-26-10-23

Categories
Blog

Here is what a rental property currently costs in Cape Town

Across the country, it is currently a landlord’s dream market as demand for rental properties continues to climb following every interest rate hike.

According to PayProp’s Rental Index for Q2 2023, rental prices have risen year on year in every province, while national rental growth hit the highest level since 2017. The report also states that in the Western Cape, rental prices grew by a fairly sluggish 2.8% compared to the national average of 4.4%, although the average rent of R9 730 was still the highest in the country.

Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa, says that demand for the Western Cape remains high, which pushes up property prices. “Based on the performance of the RE/MAX of Southern Africa network during Q3 2023, the Western Cape’s sales totals trumped that of Gauteng’s sales totals, despite it being a smaller region,” he comments.

Speaking further on the increasing demand for the Western Cape, Linda Segal of RE/MAX Living says that “semigration combined with a recovering tourism sector along the Atlantic Seaboard has seen demand drive rentals up by 20% – 35% and more. Affordable listings are snapped up in a matter of days or mere hours,” she says.

Two years ago, Segal added that it was possible to rent an unrenovated 2-bed flat for between R12,000 – R14,000 p/m. “Currently, there are very seldom 2-bed rental units available at this price. Renovated 1-bed flats with parking are now on offer for as much as R16,000 p/m. One or two years ago, a new build 2-bed flat could be rented at approximately R20,000 p/m. The 2023-2024 rental for the same unit now approaches on average R30,000 p/m. It is no longer possible to find cottages or houses to rent for under R25,000 p/m along the Atlantic Seaboard,” says Segal.


1 bedroom apartment to rent in Foreshore | R14,850 per month

Noticing a similar trend, Michael Hauser of RE/MAX Living says that with the rising interest rates, the demand for rentals has been pushed up. “Added to that is the semigration towards Cape Town and seasonal visitors like the ‘digital nomads’ who flock to the city. As a result, there has been a huge increase in the demand (from about September) for rentals in the price range of R12,000 to R25,000. In our experience, rental prices have increased by about 20 to 30%. Of course, if a reliable tenant renews a lease on a lowish rental price, we tell landlords to be reasonable with the increases to a max of 8 to 10%,” says Hauser.

In the City Bowl area, Hauser says that “you will get a 1-bed apartment in the range from R12,000 to R15,000. Two-bedroom apartments in this area start from R14,000 (basic, with no parking) to R25,000 plus,” he notes.

Speaking into the rental prices in Milnerton and surrounds, Elle Beer of RE/MAX Living says that a R12,000 rental amount would afford you a 2-bed, 72m² apartment in Milnerton Central, “while the same 2-bed rental property in Century City would range from R14,500 to R18,000. A R15,000- R17,000 rental amount would afford you a 2-bed property in Burgundy Estate. For R15,000 – R20,000, you could afford a 3-bed free standing house in Milnerton, although families tend to prefer the gated estate properties for security reasons. R15,000 can also get you a furnished 2-bed home in the Tijgerhof area. Royal Ascot is also a popular choice with a rental ranging between R13,000 to R18,000 for 2-3 bedroom apartments. Sunset Beach offers furnished accommodations between R15,000 – R25,000,” she notes.


4 bedroom house to rent in Milnerton | R38,000 per month

As a final word of advice, Goslett says that Cape Town’s rental market is dynamic and ever-changing. “Prospective landlords and tenants should be aware of the current trends to help them make informed decisions and capitalise on new opportunities as they arise. Whether one is a local resident or a newcomer to the city, working with an experienced local real estate professional from a reputable brand can prove invaluable when navigating the bustling Cape Town property market,” Goslett concludes.

Original Article: https://www.myproperty.co.za/news/market-and-opinion/here-is-what-a-rental-property-currently-costs-in-cape-town-20-10-23

Categories
Blog

The body corporate is the real backbone of Sectional Title

In a Sectional Title scheme, it is usually the trustees and managing agents who are seen to be running things on a day-to-day basis and dealing with the maintenance of the common areas and amenities.

However, says Andrew Schaefer, MD of leading property management company Trafalgar, the trustees are in fact only acting on behalf of the body corporate, which is a legal entity made up of all the owners in the scheme and has the fundamental responsibility for ensuring a well-run and financially secure property.

The key responsibilities of the body corporate, which are shared by every owner, are:

  • Administration and good governance: “The body corporate is responsible for establishing and enforcing the rules and regulations of the scheme. It must also hold at least one general meeting a year where decisions regarding the complex’s budget, finances, and management are made. The trustees who will execute these decisions are usually elected at this meeting.”
  • Maintenance and repairs: Ensuring the upkeep and maintenance of common areas like gardens and walkways and shared amenities such as swimming pools, laundries or gyms is a primary responsibility of the body corporate, even if it is usually delegated to the trustees and managing agent, he says. This includes routine maintenance and necessary repairs, as well as a long-term planning for the maintenance and replacement of major items such as lifts.
  • Financial management: “The body corporate, guided by the trustees and managing agent, must manage the finances of the Sectional Title scheme. This task includes collecting levies from individual owners to cover common expenses and paying any amounts owing to the municipality and other creditors for services provided to the common property. It must create and pass an annual budget, keep financial records, arrange an annual audit and ensure that the complex is adequately insured at all times.”
  • Dispute resolution: The body corporate is also responsible for resolving any disagreements between owners with regard to issues such as noise, pets, parking, drying washing on balconies, property alterations, or compliance with rules, Schaefer notes. “There are also specific procedures to follow when an owner or group of owners is in dispute with the body corporate itself. If these cannot be resolved internally, they must be referred to the Community Housing Schemes Ombud for mediation or adjudication.”

He also says that once individual owners understand that they are actually a part of the body corporate and not separate from it, it is usually easier for them to accept that each of them, and not just the trustees, has a role to play in keep the complex solvent and in good repair.

“While the trustees and managing agent may handle the budgeting, levy collection, debt collection of arrear levies, payment, and regular maintenance tasks, they cannot plan or do any of this work effectively without the collective support of the owners in the body corporate.”

Schaefer says this support can take many forms, but at the very least should include the prompt payment of any levies due. “If the body corporate is the backbone of the Sectional Title scheme, levies are its lifeblood, essential for financial stability, the maintenance of common areas, municipal services continuity, and the protection of value.

“In addition, owners should make every effort to attend body corporate meetings and participate in the discussions about and votes on budgets, levies, reserve funds, changes to conduct rules, and other issues. In this way, they can help shape the decisions and policies that are going to affect them in anyway. Interested owners should seriously also consider serving as trustees to play a direct role in decision-making on behalf of the body corporate.”

And on this point, he says, all owners need to adhere to the body corporate rules and regulations and ensure that their tenants do, too. “Being a considerate neighbour is also one of the best ways to create a harmonious and peaceful life in a Sectional Title community and a successful scheme.”

Original Article: https://www.myproperty.co.za/news/market-and-opinion/the-body-corporate-is-the-real-backbone-of-sectional-title-06-10-23

Categories
Blog

Residential real estate represents the world’s most significant store of wealth

In 2022, the value of all global real estate – comprising residential and commercial real estate, and agricultural land – reached $379.7 trillion, maintaining the asset’s position as the world’s most significant store of wealth.

This is according to research by global real estate services provider, Savills, who point out that real estate is more valuable than all 2022 global equities ($98.9 trillion) and debt securities ($129.8 trillion) combined, and almost four times that of global GDP ($100.6 trillion). The value of all the gold ever mined, by comparison, stands at $12.2 trillion – just 3% of the value of global real estate.

Notwithstanding the fact that overall, the total value of global real estate in 2022 decreased 2.8% from 2021, when it was $390.5 trillion, it is still up 18.7% on 2019 pre-Covid levels. Growth across all asset classes (real estate, equities etc) slowed in 2022 compared to 2020-2021, according to the international real estate advisor, as inflation rose and interest rates spiked.

Comments Dr Andrew Golding, chief executive of the Pam Golding Property group, which is Savills’ exclusive residential real estate partner in Africa: “Positively however, according to the research report, the value of all sectors of real estate, remain up on their 2020 levels. Notably, in terms of the different property sectors, residential is by far the largest, accounting for 76% of all global real estate value, and its value stood at $287.6 trillion in 2022, a decrease of 1.6% on 2021 levels ($292.2 trillion). Here in South Africa, it is estimated that residential property is notionally worth some R6.6 trillion (approximately USD343 billion).”

Savills says that commercial real estate value stands at $50.8 trillion (2021 comparison: $51.7 trillion), comprising 13% of total real estate value, and ahead of the total value of agricultural land at $41.3 trillion (2021 comparison: $46.6 trillion) which accounts for 11%.

Paul Tostevin, head of Savills World Research which carried out the analysis, comments: “Despite upheavals in the markets, and some speculation about the future of some sectors, real estate as a whole continues to be the largest concentration of wealth in the world.

Says Tostevin: “Residential property dominates, and between 2019-2022 its value grew 21.1% – only outperformed by gold – as it benefited from ultra-low interest rates over this period, coupled with a focus on the home in many countries during lockdowns. It’s clear that given the under-developed nature of real estate in some locations, on a long-term basis growth will continue as more stock is added around the world.”

Value growth by asset

Floating USD exchange rates, Source: Savills Research

As of 2022, China was the world’s most valuable real estate market, accounting for 26% of total global real estate value (residential and commercial), followed by the United States which accounts for 19%. Savills notes, however, that Canada (7th) and Australia (10th), both countries that have seen significant growth in residential prices in recent years, rank ahead of much more populous nations for total real estate value. India, the world’s most populous country, is in 14th position by value, demonstrating the potential for future growth in this market.

Adds Dr Golding: “Being a nation with a predominantly youthful population, there is a positive demographic dividend for the South African residential market as the proliferation of new, smaller households in the key urban areas ensures ongoing, strong demand for accommodation. Increasingly this is being met via the conversion of commercial properties into mixed-used residential developments as well as new homes in coastal provinces as a result of semigration, but either way, South Africa’s youthful demographic profile will provide a fundamental underpinning for the local residential market as the influx of new, young homeowners ensures ongoing demand, in turn facilitating the movement of existing homeowners up the property ladder.”

Original Article: https://www.myproperty.co.za/news/market-and-opinion/residential-real-estate-represents-the-world-s-most-significant-store-of-wealth-03-10-23

Categories
Blog

How to avoid buyer’s remorse as a first-time home buyer

You’ve just gotten the keys to your first home, and you’re busily packaging your life into boxes and daydreaming about the magazine-worthy spread you’ll soon have. It’s pure elation, right up until it’s muddled with that sinking, “oh no, what have I done?” sensation.

Buyer’s remorse, a reality that is not spoken about enough in real estate, happens far more often than we would like to admit.

It’s all too easy to get swept up in the moment – especially for those fresh on the home-buyer scene. Viewing properties, imagining your life in a new home…and without the proper planning and research, you might end up buying a home that isn’t the right fit for you.

This can be avoided and our top three tips will save you from those post-purchase blues.

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. This also allows you to have a little buffer for when interest rates increase and inflation hits.

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 will 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.

Even if you are in the market for a fixer-upper, get it inspected. This way you can plan ahead for the renovations that you will need to do once you move in and it even might provide a little negotiation room with the seller if the property requires a little more renovations than you first expected.

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 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 an open-plan kitchen or a fireplace is more of a nice-to-have type of feature. You also need to keep your lifestyle needs and personal goals in mind when choosing your home – the happier you are in the neighbourhood, the more time you will want to spend exploring it and spending time at your home. Remember to have an honest conversation about where you are in your life and where you see yourself in the next five years. If your life is busy and full of traveling for work, then having a home with a huge garden will not be the right fit for you. The same goes for those looking to start a family – a city apartment is not ideal for kids and opting for a townhouse might be a better fit.

We know that finally calling yourself a home owner is such an 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.

Original Article: https://www.myproperty.co.za/news/market-and-opinion/how-to-avoid-buyer-s-remorse-as-a-first-time-home-buyer-15-09-23