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Ballito Property Blog

Pro`s and Cons of Estate living

Pros and Cons of Estate Living.

The dream of home ownership in South Africa not only pertains to a ‘Roof’ over one’s head, but also to affordability and security. It is therefore easy to understand the desire to live in a secure community such as a Sectional title complex or a Gated Estate. But:  The trend to ‘flock ’together in the attempt for a better lifestyle often poses difficult questions if like- minded people can live together in harmony.

 In South Africa the main reason for estate living is security. Crime has brought about a new way of life and an industry where developing communal estates and property management have flourished.   Compared to international trends communal living in gated estates in Australia and the USA tend to be all about lifestyle and convenience with security as a result of crime lower down the list of priorities.

Questions to Ask before buying into an Estate or Complex:

When looking to buy into any “community” lifestyle one should find the answers to the following three sets of questions before committing to the purchase:

1.       The Levies:

Are they realistic? Have appropriate budgets been drawn up to cover all the costs for the Body Corporate’s or Home Owners association’s expenses?  Will the levy include regular maintenance, are there reserve funds etc.  In short, does the scheme have a positive cash flow? Are there any special levies coming up shortly that may impact on you budget?

2.       Good governance?

All sectional title schemes and Home owners associations must comply with conditions set out in the Act. Do they hold regular annual meetings? Are the financials property audited? Has insurance been taken out on the property and has it been updated to cover all liabilities? Who are the members representing the Body Corporate or Home Owners Association. Do they have the interest of the whole community at heart? Ask for a copy of the Rules and Regulations of the complex or Estate. How will the rules regarding pets, children, play areas, parking etc. impact on your way of life?

3.       Levy Payments:

 Are these collected efficiently? Are there members in arrears and how seriously will this impact on the scheme? Can you have a copy of the latest financials to view and verify?

Richard Gray, CEO of Harcourts South Africa gives a few Pros and Cons of communal living:

Pros :  

                Safety – This is probably the most important reason for buying in an Estate or Complex. Family and the safety of your worldly possessions are reasons to buy into a community lifestyle.

                Lifestyle– A bit like the good old days where kids can ride their bikes and friends and neighbours can walk to each other’s houses.

                Common amenities – Swimming pools, sports fields, club houses restaurants and many more are for the use of all to enjoy.

                Resale value– If one assumes that crime will not improve; gated estates may be in even higher demand.

Cons :

                Levies: Can be too high and if not well managed and you may be paying for facilities you are not using.

Rules: The rules may be too strict and you may find them unreasonable (pets, noise etc.)

Resale value:  This could work the other way if your estate or complex is  poorly managed or runs into financial problems.

 

Ballito offers a wide spectrum of gated estates catering for a variety of lifestyles. In all of  these estates Harcourts Dolphin Coast have accredited agents ( with the exception of Zimbali ) to assist you with finding the right property to suit your requirements.

MAKE USE OF THE LOWE INTEREST RATES TO SAVE!

USE YOUR BOND TO FILL YOUR PIGGY BANK.

                “Experience taught me a few things. One is to listen to your gut, no matter how good something sounds on paper. The second is that you’re generally better off sticking with what you know. And the third is that sometimes your best investments are the ones you don’t make.”

                                                                                Donald Trump.

The current economic situation has each of us reassessing our finances and sourcing new ways to invest our hard earned money, but just where do you start and what are your options?

The recent repo rates reduction of 0.5 % is offering a few good options to save and invest for both current bond holders as well as people looking to purchase property. Here is how:

1.       Save by increasing your Bond repayment:

 

A current bond of R500 000 over 20 year will bring about a saving of R160 per month. Keeping your current re-payment as it was before the repo decrease, will bring about a saving of R38 283.

If the homeowner increase his payment today by R500 per month on 8.5% interest, he will save R136 473 and pay off his house in 15 years and 6 months.

 According to Steven Barker of Standard bank, home loans are currently at the lowest in 35 years. Make use of this opportunity by putting the savings back into your bond. According to Old Mutual most homeowners pay only the required monthly repayment. Paying more on your bond will reduce the capital and in the long run bring about great savings.

2.       Save by investing in property and benefit from the low rates.

House prices are still under pressure with some excellent properties available where sellers bought in the previous ‘boom’ market find themselves in positions where they must sell. Paying back a R500 000 bond at 8.5% today will cost you -+ R 4 339 per month over 20 years. Compared to paying rent, owning your own property lends you equity and long term savings. Paying rent of R4 339 per month would have paid of R52 068 on that R500 000 bonds in only one year.

                                        Property Merry-Go-Round.

The money market and the property market are constantly turning round and round, and like a Merry-go-round our emotions play the biggest role in how we win or lose our hard earned cash.  We all buy investments when the market is high and everyone is feeling good. At the low end of the market when everyone is scared and fear takes hold of our emotions  we sell our investments because it ‘feels’ like the right decision.

People lose money because of the decisions they make. It is easy to blame the economy and markets, but it really is because of our wrong decisions to buy- or sell at the wrong time. The only thing certain in uncertain times is that the market will keep on changing. We constantly refer to “Buyer’s and Seller’s” markets and these rotate like the Merry-Go-Round

Here’s how to get out : Draw up a financial plan with a long term vision and invest carefully, always keeping in mind that property is a way to make  and keep wealth (aka Dolf De Roos author of  Real Estate Riches)

At Harcourts Dolphin Coast we have assisted many past clients to make sound property investments, and we would like to do the same for you. Call us on 032 946 2331 or e-mail me at : ida.duplooy@harcourts.co.za.

Like us on Facebook or visit our websiteon: www.ballitoproperties.co.za; www.harcourtsdolhincoast.co.za

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THE BOTTOM LINE ...PRICING YOUR HOME.

THE BOTTOM LINE

on

HOW THE VALUE OF YOUR HOUSE IS DETERMINED.

When asked to predict what the market will do, J. P. Morgan answered: “The market will fluctuate.”

There are irrefutable factors that influences the market value of your home, such as:

·         The condition and desirability of the property

·         Current competition

·         Relevant comparisons to similar properties recently sold

BUT

What DOESN’T have any influence on the current value of your property is:

·         What you have paid for the property

·         What you have spent to improve the property

·         What you need to move to buy elsewhere ,or

·         What you would like to get.

THE BOTTOM LINE:  ONLY THE MARKET DETERMINES THE PRICE OF YOUR PROPERTY.

Ten steps YOU can take to increase the value of your house:

1.       Clean out your home. A clean house will help the potential buyer see your house in a better light.

2.       Clear out the clutter. Not only will your house look more spacious, but it will allow the buyer to see themselves living in the house. Ps.  Don’t forget the garage.

3.       Take care of your garden.  Get gardening services to cut, clean and clear. A few colourful annuals will enhance and make your house feel welcome.

4.       Have your house evaluated. Many sellers persists their property is worth more than the market will offer.  Get more than one appraisal and use a professional.

5.       Have your homes inspected and declare all hidden defects. The Consumer Protection Act is there to protect the buyers. Follow recommendations and do the necessary repairs before listing your house where possible.

6.       Keep your pets out of the way and clear all signs of your pets – odours, cages, toys and other tell-tale signs of pets.  Almost everybody loves pets, except home buyers who are viewing your house.  If you want top dollar for your house keep the pets as far away as possible during a showing.

7.       Set the scene:  Create a peaceful and enticing mood. Soft music and good lighting will set the mood .In good weather open windows and doors and let as much light in as possible.

8.       Pack away all photos etc. and clear away all the kid’s drawings and paraphernalia cluttering the fridge door. Buyers need to see themselves in the house and do not want to feel that they are trespassing or have stepped in a museum.

9.       Take care of odours. A scented candle will do the trick or try a few drops of vanilla on a cookie sheet in the oven at 100 Celsius.

10.   Be a good host. Make sure the children are all well briefed on how to behave and then move away and allow the agent to conduct the viewing without any interference from anyone.

Think of your house a GIFT  for someone you care about, and present it with all the love and care you can.

At Harcourts Dolphin Coast we happy to assist all property sellers with honest advise on how to improve the presentation of your home. Call us on 032 946 2331.

Please add your content here.

How the value of your house is determined.

THE BOTTOM LINE

on

HOW THE VALUE OF YOUR HOUSE IS DETERMINED.

When asked to predict what the market will do, J. P. Morgan answered: “The market will fluctuate.”

There are irrefutable factors that influences the market value of your home, such as:

·         The condition and desirability of the property

·         Current competition

·         Relevant comparisons to similar properties recently sold

BUT

What DOESN’T have any influence on the current value of your property is:

·         What you have paid for the property

·         What you have spent to improve the property

·         What you need to move to buy elsewhere ,or

·         What you would like to get.

THE BOTTOM LINE:  ONLY THE MARKET DETERMINES THE PRICE OF YOUR PROPERTY.

Ten steps YOU can take to increase the value of your house:

1.       Clean out your home. A clean house will help the potential buyer see your house in a better light.

2.       Clear out the clutter. Not only will your house look more spacious, but it will allow the buyer to see themselves living in the house. Ps.  Don’t forget the garage.

3.       Take care of your garden.  Get gardening services to cut, clean and clear. A few colourful annuals will enhance and make your house feel welcome.

4.       Have your house evaluated. Many sellers persists their property is worth more than the market will offer.  Get more than one appraisal and use a professional.

5.       Have your homes inspected and declare all hidden defects. The Consumer Protection Act is there to protect the buyers. Follow recommendations and do the necessary repairs before listing your house where possible.

6.       Keep your pets out of the way and clear all signs of your pets – odours, cages, toys and other tell-tale signs of pets.  Almost everybody loves pets, except home buyers who are viewing your house.  If you want top dollar for your house keep the pets as far away as possible during a showing.

7.       Set the scene:  Create a peaceful and enticing mood. Soft music and good lighting will set the mood .In good weather open windows and doors and let as much light in as possible.

8.       Pack away all photos etc. and clear away all the kid’s drawings and paraphernalia cluttering the fridge door. Buyers need to see themselves in the house and do not want to feel that they are trespassing or have stepped in a museum.

9.       Take care of odours. A scented candle will do the trick or try a few drops of vanilla on a cookie sheet in the oven at 100 Celsius.

10.   Be a good host. Make sure the children are all well briefed on how to behave and then move away and allow the agent to conduct the viewing without any interference from anyone.

Think of your house a GIFT  for someone you care about, and present it with all the love and care you can.

At Harcourts Dolphin Coast we happy to assist all property sellers with honest advise on how to improve the presentation of your home. Call us on 032 946 2331.