The real estate industry has benefited greatly from technological advances on the one side, but on the other side it has also made it easier for scammers to prey on unsuspecting buyers, sellers, landlords, tenants and agents.
Here are some precautions with regards to sales and rentals to minimise the risks of falling victim to real estate fraud in either category. Rentals The below red lights should not be ignored when it comes to rentals:
People who know that they will be seeking rental accommodation should start looking for rentals timeously as to avoid becoming desperate. Sales Outlined below are some pointers that should raise red flags when considering a sale:
Article referenced from: https://www.bizcommunity.com/Article/196/368/195863.html
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After 18 months of minimal growth, South African landlords may not be feeling particularly optimistic about their rental investments at present. However, the latest PayProp Rental Index (Q2 2019) shows trends may finally have ceased their downward trajectory. This is good news for landlords, but not necessarily a sign of a market turnaround quite yet. Rental growth over the last six months has been virtually flat, with Q1’s 3.85% increasing to 3.86% in Q2 this year. That might not seem particularly positive for landlords, but when taken in context with moving average trend lines dating back to 2017, it shows the first reliable sign of an end to the national rentals growth decrease. While a flat trend line is unlikely to get anyone’s pulse racing, the majority of rental assets are still delivering solid returns over the long term – and it’s this long-term outlook that landlords should be encouraged to focus on. It’s easy to overlook the fact that we had long periods of higher-than-inflation rental growth as recently as 2017. In order to remain sustainable, these periods of high growth need to be balanced by slower growth to maintain tenant affordability. Weakening tenant credit metrics With consumer purchasing power under heavy pressure as a result of high unemployment, prolonged below-inflation income growth and increasing living expenses, tenant affordability has, indeed, become an issue. Reports indicate weakening tenant credit metrics, despite relatively stable credit scores, and an increase in the frequency of tenants in arrears. This has made it essential for agents and landlords to implement stringent vetting procedures for all tenants and, ideally, repeat these processes on lease renewals. However, the combination of flat rental growth, improved income growth, marginal inflation and decreased interest rates seen in 2019, could offer tenants some financial relief and improve affordability over time. It’s this balance that landlords need to keep in mind when times are tough. In order for rental growth to recover, tenant affordability needs to recover too. Trends like flat growth may not appear to be overly positive indicators, but they do suggest that the market has reached a vital equilibrium. That’s not to say we’re about to see a turnaround with record growth by 2020. Recovery is likely to be a slow process with a few ups and downs along the way. However, we are optimistic that this is the start of a stronger cycle that will deliver sustainable returns to rental investors over the long term. Article referenced from: https://www.bizcommunity.com/Article/196/569/195888.html Home owners should not take a knee-jerk reaction to the potential of SA being downgraded to junk status by Moody's says SA futurist/economist Daniel Silke. If you woke up to the news that at 4.9% the economy was one of the fastest-growing in the world, and expectations are that it will grow at 4.4% for the rest of the year, leading to high demand for real estate of all types, you’d be in Budapest, Hungary. South Africans however awaken to a reality that is cause for some anxiety; from a lagging economy, a Rand that tends to weaken more often than it strengthens, annual consumer price inflation dips, and now the threat by Moody’s to downgrade SA’s sovereign debt to junk status. We’ve been here before, we’ve avoided it before, can we survive again? Daniel Silke, political economy analyst and futurist, clarifies the situation: “We really are on a knife’s edge. The only thing standing between us and the downgrade is the pending announcement of the restructuring of Eskom, and that decision needs to be made as soon as possible, and in a credible fashion. It does however have to be a bold plan, not a half-hearted effort and I think that if there is sufficient confidence in a restructuring plan it could save us from the Moody’s final downgrade.” Interest rate hike? A junk status downgrade will mean that South Africa will have to pay more to raise the money it needs for economic growth, and for its key projects to be actioned, and when government seeks to borrow money, locally or internationally, it has no option than to recover those borrowings from South African consumers. How that is done is usually through interest rates, which if Moody’s does downgrade the country, will most likely rise again, or introduce tax and levy increases thus further burdening already indebted South Africans’, impacting on their monthly home loan and vehicle finance repayments. A higher interest rate however can limit the rate of economic growth but Silke does not believe that any interest rate hike will dramatically affect the housing market. “Interest rates are fairly benign here, so I would argue that any increase by the South African Reserve Bank would not be more than a quarter basis points. This is not really enough to assist the property market, which is now functioning on political confidence more than anything else, and clearly interest rate manoeuvrings, in their limited way, don’t have any substantial influence on, for example, the equities markets on the Johannesburg Stock Exchange.” The property market is similar to that of the stock market, explains Silke, in that one has to be wary of selling in a declining market. “There is ample evidence that property prices have come down across not just the luxury end of the market but mid-market too. One should therefore, in my opinion, be cautious about panic-selling. South Africans are increasingly in debt and paying off a bond might be a better bet than selling right now. “However when everybody sells the price comes down but those selling will have to adjust their expectations quite substantially and take a knock. That said you can never time the selling-and-purchasing processes perfectly. On a big asset class like property, I would strongly caution on taking any kind of panic view in terms of what to do going forward.” Consumers hard hit The wait-and-see approach is something that South African home owners have become adept at doing, paying in the meantime for increases such as annual council services, and fluctuations in fuel prices that impact on costs across all sectors. With the forthcoming National Health Insurance (NHI) there are indications that the public will experience one of, or a mix of, general tax revenue increases, payroll taxes, and surcharges on personal income tax. The NHI is some years away from being implemented but it is a consideration that has to be factored into budgets now, especially for those facing retirement. With corporates already taxed to the hilt, personal tax is likely to be where the government will seek recovery, but, says a recent Debt Rescue survey, 24,8% of consumers are already in debt to pay for their day-to-day expenses. 43% of respondents claim they are directing more than 50% of their monthly income to debt. How much less consumers can live with is going to be tricky; even a staple like bread is experiencing an annual price rise of 7.9%. Cause for optimism Be that as it may, there is increasing conversation around Buy-to-Let, particularly co-ownership, be that among friends or families, to avail of the current buyer’s market conditions. Banks have become very accommodating in providing home loans and the recent interest rate decrease has certainly helped. There is also a good demand for rental properties as Baby Boomers and GenX experience the empty nest syndrome and want to downsize without the burden of a bond. Throw into that mix #GenerationRent; they are looking for rental properties close to business hubs thereby reducing expenses on transport. The market is always going to be volatile; and the real estate market has long been considered a reflection of the state of the economy. When asked how bad the economy could get Silke used the adage that things always get worse before they get better. “In that spiral things have gotten worse, so it’s a difficult question to answer. However this is a critical moment in SA’s recent history where clearly some very tough decisions have to be taken by our President and his team.” Article referenced from: https://www.bizcommunity.com/Article/196/568/195223.html If you’re thinking of upgrading your home’s security system, or adding one in the first place, you may be wondering how much value it could actually bring to your home. It goes without saying that new homeowners, especially those with children, have safety as a high priority on their checklist. And with the rise of smart technology comes a new, tech-savvy generation of parents looking to buy homes with up-to-date security features. If you’re looking to upgrade to better security technology, consider these tips in order to make the best possible investments. Consider Installing Smart Home Technology When it comes to modern home security, automation is everything. We’ve all had that “did I leave the stove on?” or “did I lock the back door?” moment. Whether you’re naturally forgetful or in a hurry, everyone can benefit from an automatic lock system. There are tons of smartphone technology systems that allow you to control pretty much anything from a remote location. Companies like Vivint, ADT, and SimpliSafe offer smart home security systems that allow you to activate the alarm, lock doors, turn off appliances, and even control your home’s temperature from your phone while you’re not even there. Some apps, like Lockitron, will even unlock your front door automatically as you approach it, using the phone’s Bluetooth. While these examples are generally pricier than your average alarm system, it’s important to remember that rising homeowners are used to smart technology being incorporated into their everyday lives, and therefore much more likely to invest in a home with smart technology. Younger homeowners and parents are also more likely to have more advanced technology inside their home, increasing the desirability of the home as a potential break-in target, and ultimately making an advanced security system more desirable. Tip: if you’re in the process of selling your home and have smart technology installed, make sure the potential buyers actually try it out for themselves; the hands-on experience will show them how easy it is to use. There Are Other Ways To Upgrade The Security Of Your Home While smart technology is definitely a desirable security feature, there are other, more cost-effective ways to update your home’s security. Security cameras go a long way in attracting potential buyers. Installing cameras at entry points will not only make the homeowner feel safe, but it will also deter potential burglars from breaking in out of fear of being caught. Consider installing motion sensor lights near the entry points of your home; you won’t waste electricity by keeping outdoor lights on all night to deter intruders, and you’ll know when someone is approaching your home when the light goes on. Similarly, you can install window sensors that alert you when the window has been opened a certain amount. There Are Even Simpler Ways To Update Your Home’s Security There are several inexpensive protective measures you can take to upgrade the security and value of your home that are entirely worth the investment. Make sure all doors to the house have deadbolts. Install window shades so that intruders can’t see into the home. Make sure the locks on the windows work and can secure easily. Update wooden doors to steel doors. These measures may seem small and unimportant, but not having these simple features up to date will be noticeable and make your home less attractive to buyers. Think Beyond Security While security is extremely important, don’t forget about other threats to the home that can be thwarted using technology. Make sure there is a fire alarm in every room, and make sure there is one carbon monoxide detector per floor. If you live in a region that is prone to natural disasters like hurricanes or tornadoes, make sure you have sufficient, weather resistant doors and windows. Bottom line: having updated security systems, especially those that utilize smart technology, will likely increase the value of your home. Not only could it increase the monetary value, but updated security will bring a peace of mind to potential homeowners that will ultimately make your home more desirable. So while it may be an investment, it will upgrade the value of your home and ultimately end up protecting you while you live there, so it’s definitely worth considering. Article referenced from: https://securitybaron.com/blog/can-security-system-increase-value-home/ The Reserve Bank’s monetary policy committee (MPC) could remain in limbo for the rest of the year and keep interest rates unchanged.
The committee, which will have two more meetings this year, will have to weigh a volatile exchange rate and a slight rebound in the economy against looser global monetary policy — a combination which could see them play it safe. The MPC cut interest rates by 25 basis points (bps) last month, effectively reversing a controversial interest-rate hike in November 2018. The Bank cited lower growth and lower inflation expectations for the cut. While some analysts called for a 50 bps cut at the time, the MPC said it did not consider it. Now, analysts are speculating that the Bank won’t make another move this year. The forward rate agreement market, which had priced in a rate cut for September, has reassessed the path of interest rates as less dovish and is now pricing in no material chance of a rate cut until January 2020 — with only about a 40% chance of a 25bps cut then. The major central banks have adopted easier monetary policy stances, with the US Fed cutting its federal funds rate by 25bps in July. In sharp contrast, the rand has weakened significantly. The rand has breached R15/$ reaching its worst level in 11 months. The currency’s one-week implied volatility is the highest among major currencies at 16.72% on Friday, its highest volatility since March, according to Bloomberg. While this is partially due to SA’s wide current account deficit, which leaves the country vulnerable to external shocks such as escalating global trade tensions that cause investors to pull back from riskier assets, the rand has also been hit by growing concerns about Eskom’s severe financial woes and the implication of this for government’s already onerous debt burden. “Given these counterbalancing forces, we believe the MPC will err on the side of caution, leaving interest rates unchanged for an extended period,” Nedbank economist Johannes Khosa said. Problems at Eskom are expected to continue while divisions within the ruling party will prevent President Cyril Ramaphosa from pushing through the reforms that saw the rand strengthen when he was first appointed, Capital Economics economist John Ashbourne said. Tensions between the US and China are also unlikely to ease anytime soon while slower global growth could see the price of SA’s key commodity exports trend down, he said. “The pressure on the rand probably won’t let up anytime soon,” Ashbourne said. Currency weakness is likely to add to potential inflationary pressures, which will contain the amount of easing that the Bank can “reasonably” deliver, said head of emerging markets strategy at TD Securities Cristian Maggio. “Given the current circumstances, a forecast for at most one cut this year is still somewhat reasonable, though risks are leaning more towards the November than September meeting,” he said. Added to this uncertainty is an expected ratings announcement from Moody’s Investors Service in November. Moody’s, the last credit rating agency that has SA above investment grade, has already taken a grim view on the bailout to Eskom. On Thursday, the ratings agency said government had little room for additional support to Eskom which would result in a larger fiscal deficit and higher debt burden. The rand’s recent underperformance indicates that the market is already pricing in a downgrade by Moody’s to at least a negative outlook, Standard Bank currency trader Warrick Butler said. “The timing of the [next MPC] decision is too close to the Moody’s decision date. The MPC may want to wait for that outcome before deciding on the path to take. There’s no point cutting rates if we are downgraded because the bond and FX will need help,” Butler said. While growth prospects for the year still remain dim, a recovery in the economy will give the MPC room to leave rates unchanged. After a steep contraction in the first quarter of the year, the economy is expected to rebound in the second quarter – helping SA avert its second recession in two years. Barring the agricultural and construction sectors, the rest of the economy is expected to have recovered. The GDP figures for the second quarter will be released on September 3, two weeks before the MPC is set to meet again. “Signs of a recovery in the second quarter have increased the risk that policymakers will leave their key rate on hold at 6.50% in September, rather than cutting as currently expected,” Ashbourne said. FNB’s quarterly property survey has confirmed that Cape Town’s luxury house market is on the skids.
“The upmarket areas continue to take a hit,” FNB analyst Siphamandla Mkhwanazi said on Thursday in a report analysing the Cape Town property market’s performance in the second quarter of the year. House prices in the city’s priciest suburbs on the Atlantic Seaboard fell 3.7% year on year, he said, and prices in the city bowl were down 5.7%. Prices are growing more slowly than they have in a decade, foreigners are losing interest in Cape Town property and a surge in emigration is fuelling supply. FNB’s survey confirmed data a week earlier which said sellers on the Atlantic Seaboard and in upper Constantia had cut asking prices by up to R10m in the past three months. Mkhwanazi said the price pressure on affluent properties was becoming a common theme across the country but data from Cape Town showed the pressure was spilling over to middle-priced areas. “By contrast, lower-priced areas remained resilient, and comfortably in the double-digit [price increase] territory,” he said. FNB’s survey, using deeds-office data, showed that average house prices in Cape Town increased by just 0.5% in the past year. However, said Mkhwanazi, “in real terms [ie considering the effect of inflation], average house prices have been declining for a year now. “Overall, this marks the slowest growth rate since the end of 2009 and comes as no surprise, given the generally weak economic fundamentals.” In addition, house-price growth had outpaced income growth to such an extent that affordability had been eroded. “At the same time, foreign buyers continue playing a less prominent role in the domestic market, while emigration sales have intensified.” Mkhwanazi said prices being achieved were also slumping, compared with asking prices. Sales in the second quarter were made at 12% below asking prices, on average, compared with 8.2% a year earlier and a national average of 9.9%. “Importantly, the favourable pricing appears to have spiked demand from first-time buyers,” he said, with the number of property virgins tripling in the past two years. “Buy-to-let activity also appears to be improving, estimated to have accounted for 10.6% of total volume.” Prices in the southern suburbs of Cape Town contracted by 4.9% year on year in the second quarter, and eastern suburbs such as Pinelands and Woodstock experienced a 5.3% price fall. “Pressure appears to be spilling down the price ladder, and away from the mountain,” said Mkhwanazi. “Sub-regions in the northern suburbs showed a sharp deceleration in house-price growth in recent quarters. For some time these regions were perceived as offering more affordable housing opportunities, as affordability deteriorated nearer the mountain. “Ultimately, prices overshot and completely counteracted their initial attractiveness. Unsurprisingly, as demand slowed, price growth slowed.” In the Elsies River/Blue Downs/Macassar areas, however, price growth jumped to 16.1% in the second quarter, and the Cape Flats achieved 11.1% growth. Mkhwanazi said: “Housing market trends will remain heavily dependent on developments in the broader economy.” Article referenced from: https://www.timeslive.co.za/news/south-africa/2019-08-15-cape-towns-high-end-property-collapse-spreading-to-the-middle/ Buying and renovating a fixer-upper property - one that's a little dated or run-down - is a time-honoured tradition for bargain-hunting buyers looking to maximise their return on investment. Of course, finding the right property is integral to the success of this strategy - a poorly chosen project could easily cost far more to renovate than it could ever recoup in a sale.
Before purchasing a property, spend time looking at what is available in your desired area and study the market thoroughly. This will give you the confidence needed when it comes time to purchase. Always speak to reputable estate agents in your area and brief them on your requirements - they may just lead you to the perfect property. So, how do you go about spotting a fixer-upper that’s worth the time and cash investment? These are the most important elements to look out for: 1. It’s in a great location If there’s one thing you can’t change about a property, it’s location. If a house is in a bad neighbourhood, an inconvenient position, or too close to an undesirable structure like a cell phone tower or ugly apartment block, you can do the most spectacular renovation and still struggle to make a favourable sale. Good locations to look out for are homes within popular school catchment areas, close to central business districts, or in trendy neighbourhoods with convenient access to freeways and other amenities. A north facing aspect, mature trees on the property and attractive views are an added bonus. Remember, just because an area is popular or trendy doesn’t mean you won’t find fixer-uppers on the market. You often find elderly people moving out of up-and-coming suburbs who are selling homes that make perfect renovation projects. 2. It’s structurally sound Having the ideal location doesn’t always make a property a good fixer-upper. A sound structure is essential in order to keep renovation costs down. Homes with serious structural faults, like unstable foundations or weathered roof beams, for example, can take a huge amount of money and expertise to repair. This is seldom worthwhile for buyers hoping to resell for a profit in the short to medium term. If you’re not sure about the structural condition of a property, I’d highly recommend getting an expert inspection performed. This is not the kind of issue you want to discover halfway through a renovation! 3. It has good layout A solid structure is certainly an important part, but layout also can’t be ignored. It’s a mistake to assume you can solve every design flaw by knocking down a few walls and opening up the layout. If the kitchen or bathrooms are in a weird location, or the bedrooms are all in the coldest, darkest part of the home, it’s going to be difficult to solve that problem in a cost-effective manner. Look for homes with convenient room “clusters” – a comfortable bedroom wing, a central kitchen, dining and living area, and logically placed entrances, garden access and bathrooms. This enables you to remove a few, non-loadbearing walls to open things up if necessary, and you won’t end up with a family bathroom in the middle of your living space. 4. It has predictable renovation costs Building work is notorious for being unpredictable, but it’s vital to at least understand the renovation cost ballpark you’re playing in before buying a fixer-upper. Try and set budgets for individual items or sections of the home. For example, set a price per square metre for flooring and stick to it. It can be very easy to get emotionally caught up on a project and choose finishes with your heart and not your wallet. To make a profit on a fixer-upper, the purchase price plus the total renovation cost needs to be low enough that you can recoup your investment – with a healthy profit – not too far down the line. If you don’t fully understand the renovation costs, it’s all too easy to end up with a money-drain rather than a money-spinner. While experienced house-flippers may be able to estimate renovation costs on sight, newbies should always consult with a construction expert before making a purchase, if possible. If you are planning on contracting all the building workout, make sure you have chosen a reliable contractor with great contactable references. Don't choose a builder based on the lowest "thumb suck" pricing - you will regret it in the long run. Don't forget to assign a portion of your renovation costs to the garden or green areas. This is often overlooked and can be a deal breaker if the building is beautifully renovated and the garden and outside areas are left unattended. It’s all about going in with your eyes wide open. Naïve optimism has no place in a fixer-upper project, but if you do your homework and make sure you know what you’re getting into, renovating run-down homes can be a rewarding and profitable strategy for property investment. Article referenced from: https://www.bizcommunity.com/Article/196/698/194147.html The South African Reserve Bank cut interest rates for the first time since March 2018 last Thursday, lowering rates by 25 basis points to 6.5%. This cut has led to banks cutting their prime lending rates from 10.25% to 10%.
While this interest rate drop will result in lower monthly home loan and vehicle repayments for South African consumers, it provides an excellent opportunity for consumers to get themselves out of debt sooner by leaving monthly repayments fixed. Let’s use John and Shirley as an example. The couple has a home loan of R2 million to be repaid over a 20-year period. At 10.25% interest per annum, their monthly repayment was R19 632.86. With the recent rate cut, their monthly repayment reduces to R19 300.43 per month. The couple decide to leave their repayment at R19 632.86 per month, and the result is that their bond term will reduce from 20 year to 19 years. In doing this, the couple will manage to make total interest savings of R161 010 and gets themselves out of debt a year sooner. If their interest rate was at prime plus 2%, their savings would jump to R249 461.83 (or R108 648.77 in today’s terms). If John and Shirley had 15 years left on their home loan, by keeping their repayments at the previous level they would reduce the term of their bond by six months by saving R65 098 in interest and R115 802.58 in repayments. If the couple had 10 years left on their bond, they would reduce the term by 2.5 months, saving R17 707392 in interest and R48 251. 08 in repayments. Remember to check if your home loan has an access facility. An access facility allows any additional contributions towards your home loan to remain accessible in the account and can be used if and when the need for emergency funds arises in the future. While an access bond is one of the best places to keep your savings, it can be the trickiest to commit to. This is because when we save, we expect to see our Rand balance grow as and when we earn interest each month. However, when saving in an access facility, the growth in your money comes from the interest you are not paying on your loan account. In other words, you will be in a better financial position by not paying 10% interest on your home loan than by earning interest of approximately 7% in a savings account. In summary, consumers are encouraged to take advantage of this rate cut by keeping their home loan and vehicle repayments unchanged. By resisting the temptation to lower your monthly repayments, you will reap the rewards of paying off your debts sooner and being able to channel the additional cashflow towards building sustainable wealth. Saving is habit-forming, and this interest rate cut provides an excellent opportunity for all consumers to establish disciplined saving habits. Article referenced from: https://www.moneyweb.co.za/financial-advisor-views/how-to-make-the-most-of-the-latest-interest-rate-cut/ There is never a bad time to invest in property. Even when the economy is on the skids, or when you have no money.
This is according to Sylvia Koketso Milosevic, a property entrepreneur who has built a sizeable property portfolio and now runs an educational company to help first-time home buyers who want to build up a similar portfolio. “In fact, when the economy is bad, that is the best time to invest in property,” she says. “There will be lots of bargains. But when I first started, I made lots of mistakes. My company now helps property investors to avoid the mistakes I made when I was first starting out. So even though now is a very good time to invest, there are two things you must never do: never buy property that will not pay for itself, and never try to do this on your own.”“These were exactly the mistakes I made when I first started out,” says Sylvia, “and so I created this company to provide advice, back-up and hands-on mentoring for first-time property investors.” Sylvia was only 16 when she discovered the hard truth about the cost of living when her father was retrenched and the family lost their only income. “It was really tough on us,” she says, “but it made me realise that a salary is not the only way to create income. That year my mother gave me a book on investing in property, and I decided that this was going to be my passion. And after I had ‘paid my school fees’ in terms of the mistakes I made, I decided that I should use my knowledge to help other people.” Here are five tips from Sylvia’s seminars: 1. Always buy property at below market value. You will find these properties from distressed sellers, estate agents, sheriffs’ auctions, bank repossessed properties. “You can buy a property at the market value sale price,” said Sylvia, “and it will give you a return in around seven to ten years. But if you are an investor, you want a return straight away. The only way to do this is to buy below market value and then sell or rent at the market rate.” 2. Try not to use your own money or take the risk onto yourself entirely. There are a number of tactics – from getting an investment group together, to making a deal with the seller – which means that you make a return on the property without having any money of your own. “We teach people the various ways that you can buy property without having any capital of your own,” said Sylvia. “It can be done if you do it the right way, with only minimal risk to yourself. This is a huge benefit, as a lot of people simply do not have the capital to invest in property but are really desperate to get themselves out of poverty.” 3. Be careful of buy-to-rent if the market-related rental does not cover the bond and expenses. “This was the first and biggest mistake I made,” said Sylvia. “I had all these properties, but they were an expense and were draining my portfolio. I was having to pay in to make up the shortfall. I was working harder and harder in order to subsidise my investments.” 4. You have to be hungry, you have to follow the rules, and you must be persistent. “It’s vital that you keep up the momentum,” said Sylvia. “There is no point in starting and then stopping when you hit your first obstacle. It is important to understand that obstacles will happen and as long as you learn from them you are on the right path to success. You need to really want to do this. It’s for everybody, you don’t need a degree, you don’t need capital, but you do need to have one attribute: you must be a self-starter who does not give up easily.” 5. Don’t go in unprepared or uneducated. Property investment carries an element of risk, and preparation and research are vital to avoid making a costly mistake. “You will never stop learning,” said Sylvia. “ When I first started out, I was making all these mistakes and they were costing me. My knowledge was all theoretical, from books, and I had no practical guidance. Then I saw an ad for a property seminar, and I went to it,” she continues. “It was being hosted by a British company, and it was almost as if they were talking to me. They listed all the mistakes I had made and told me how to avoid them. That was a turning point for me. I realised that South Africa did not have this kind of network – a property investment network and mentorship programme – so I decided to start one.” “To date, we have had over 20 000 students who went through our workshops and many lives were changed for better thanks to this program.” “We have called it Wealth Alliance because that is what it is: an alliance of people wanting to create wealth through property investment.” Article referenced from: https://www.iol.co.za/personal-finance/investments/5-investment-tips-to-consider-for-your-next-property-17688193 The percentage of residential properties being sold in South Africa because the owners are downscaling due to financial pressure has increased, according to the latest FNB Property Barometer. The estimated proportion of such sales jumped from 16% in the first quarter of 2019 to 19% in the second quarter. For FNB this corresponds to its view that household finances are under pressure. Furthermore, of those who sell due to financial pressure, 60% now rather opt to rent rather than buy a cheaper property. At the same time, this does not appear to have benefited the rental market yet, as vacancies of flats have continued to rise and rental inflation is still muted, according to the report. Overall, however, the biggest reason people are selling residential property in South Africa (23%), is still that they are downscaling due to their stage of life. As for emigration-driven sales, these have become more prominent over the past two years, the report found. According to estate agents, these are estimated to have steadied around 13.4% of sales in the second quarter of 2019, marginally down from 14.2% in the first quarter of 2019. Selling due to emigration appears to be more prominent in the higher end of the market, although there are indications that it has spilled over to the lowest ends of the market as well. The increase in sales in the lower and middle ends of the market could, in part, be explained by upper-income owners disposing of their investment properties, according to the report. The FNB Market Strength Index estimates the residential property market to be moderately oversupplied, particularly in the middle to upper income areas. By property type, the index indicates that sectional title properties are over supplied, while demand and supply of freestanding properties are relatively evenly balanced. The average time of homes on the market improved to 14 weeks and 1 day, from 15 weeks in the fourth quarter of 2018. According to the report, this could be because buyers are rushing to take advantage of bargains. Article referenced from: https://www.fin24.com/Money/Property/why-south-africans-are-selling-residential-property-20190702 |
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