CyberProp - Property in South Africa

NEWS FROM INFRAMAX

2008-04-29T16:47:00.000+02:00

INFRAMAX INVESTMENTS CONTINUE TO GROW THEIR PORTFOLIO

Inframax Investments, a company formed five years ago to complement the group’s development company, has added a further property to its portfolio.

The company has acquired 354 Voortrekker Road, Maitland, a double storey warehouse, retail and office complex, with 1 253m2 of floor space.

Inframax Investments Executive Director, Colin Plit, who has spearheaded the group’s drive into commercial property investment, said that 354 Voortrekker Road’s one major tenant, Packit Packaging, who are reliable and respected, have just renewed their lease on 1 188m2 for a further three years.

However, said Plit, as with most of their properties Inframax Investments has acquired these premises because they offer potential for value adding. Inframax Investments will be upgrading an existing 65m2 section to create an additional retail outlet with offices on the upper floor as well as an additional warehouse area.

Plit said that the new space will be ideal for a company that is involved in both retail and wholesale trading, i.e. that needs both display and storage areas.

Inframax’s decision to become commercial property investors had, he said, paid off handsomely: the company now has a portfolio worth almost R200 million.

However, acquiring industrial and commercial properties with upgrade potential has been difficult, he said, because as elsewhere in South Africa, these had until recently been in a seller’s market where prices routinely were “too high”.

“Now with the market conditions softening,” he said, “it should once again be possible to find better priced properties with value add potential.”

John Weaver, an Inframax Investments director, said that the company intends to continue building its portfolio and is looking for new investments.

“As Colin Plit has explained, we look primarily for properties which offer potential for being given a new lease of life. The demand for reasonably priced new offices in former industrial or warehousing space is now particularly good, especially in the Ndabeni, Maitland, Goodwood and Parow areas. Our own Sunrise Park is currently achieving R70 per m2 on office space and R45 per m2 on warehouse space and the indications are that rentals here will continue to rise.”

Asked if Inframax Investments would consider investing outside of the Cape Town area, Weaver said that Inframax Developments has operations in Gauteng, KwaZulu-Natal and the Eastern Province, all of which could introduce the group’s investment company to new opportunities – but, he said, the success at Cape Town has been, at least in part, due to their hands-on management and they would have to be careful to find equally competent managers for any non-Cape projects.

For further information contact John Weaver on 021 530 5760.

NEWS FROM ANNE PORTER KNIGHT FRANK

2008-04-29T16:46:00.000+02:00

FOR THE FIRST TIME IN SEVERAL YEARS THERE ARE NOW MANY HOUSES FOR SALE IN LOWER CONSTANTIA – APKF AGENTS

For a decade or more Lower Constantia has been seen as a highly desirable address by the upwardly mobile and already arrived managerial and professional sets, particularly those that appreciate the southern suburbs.

Mandy Kuhn and Helene du Plessis of the Claremont headquartered estate agency, Anne Porter Knight Frank, say that they are still amazed and pleased by the area’s ability to attract new buyers and, they report, right now the many people still wanting to move in here stand a better chance of doing so than they have done for some time.

“Hit by the higher interest rates and the National Credit Act, Lower Constantia, like many other Cape Town suburbs, now,” says Kuhn, “has more stock on the market than has been seen for at least four years. We ourselves currently have 14 homes listed for sale in Constantia.”

“It is, of course, true,” said du Plessis, “that many sellers continue to try and hold out for unrealistically higher prices – but it is also true that others are coming to terms with the fact that the heady annual increases of yesteryear are now a thing of the past and we are in a buyers’ market. What is more, we now realise that today’s buyer canvasses the market, takes his time about making a decision and expects to get a good price. We are, I think, likely to remain in this situation at least until the end of 2008 and possibly well into 2009.”

In the sub-R3 million category, said du Plessis, the market is now very active. But, she says, buyers have very definitely lowered their expectations and are now looking to buy a home on average R500 000 less expensive than that they previously set their sights on. Show houses, she said, are particularly well attended these days.

Some sellers, says Kuhn, are still trying to get prices of R3,5 to R4 million although all the indicators point to the sub R3 million market now being where the action is.

Du Plessis and Kuhn, says Lanice Steward, MD of Anne Porter Knight Frank, recently have been on a roll and had a series of successes. The agents themselves said that this has been largely due to being totally conscientious about feedback to clients.

“We report to our clients on every contact and every visit that we make,” said du Plessis. “This almost invariably means that we are in touch at least once a day.”

In the current more complicated and more competitive market, she added, it is essential to keep abreast with – and up to date on – all aspects of the property industry, particularly the latest legislation. Recognising this, APKF, said Kuhn, provide compulsory training every week and this, she believes, has given the firm a competitive edge.

For further information contact Mandy Kuhn on 082 603 4584 or Helene du Plessis on 079 528 6514. Both agents can also be contacted at the APKF office on 021 671 9120.

NEWS FROM ANNE PORTER KNIGHT FRANK

2008-04-29T11:41:00.001+02:00

DIRE NEED FOR SECURITY ESTATES IN LOWER CONSTANTIA, SAY APKF AGENTS

The Anne Porter Knight Frank two-girl team which has been serving the Lower Constantia area for some 25 months now, report that their area now desperately lacks security villages.

Helene du Plessis and Mandy Kuhn say that they have daily enquiries for homes in security villages in their area – but in many cases they are unable to meet them because there has been a serious lack of new development in this field for some time.

“People,” said Kuhn, “are now understandably worried about the crime, despite the success of local neighbourhood watch bodies and patrol firms. This worry has become so persistent that some are now reluctant to live in free-standing homes on their own plots. That is one major factor driving the demand for security estates in the area. The other is quite simply that so many people always have and always will want to live in Lower Constantia.”

Du Plessis said that there are many people already living in Constantia who are looking to scale down there and, once again, are reluctant to leave the area – because it is so pleasant.

In general, she said, people in lower Constantia are looking for security villages in the R2,5 to R3,5 million price range.

“We feel,” said Kuhn, “that it is time the authorities seriously considered rezoning to allow one or two lower Constantia villages to be developed”.

The fear that such projects might spoil the attraction of the area, said Kuhn, is groundless. Provided new developments are appropriately designed and the estates are limited to 20 or 30 homes in all they will enhance, not lower, the appeal of the area.

“Our experience,” said du Plessis, “is that the boutique type of security village usually increases the value of all homes in its area – and this has been proven again and again.”

Kuhn and du Plessis stressed that although there is a shortage of security units, they do still come on the market from time to time and APKF is handling its fair share of these.

For further information, contact Mandy Kuhn on 082 603 4584 or Helene du Plessis on 079 528 6514. Both agents can also be contacted at the APKF office on 021 671 9120.

Home Ownership!

2008-04-18T09:28:00.002+02:00

Go to any local Dead’s Office and you can find property records detailing real estate ownership in your community -- sometimes records that date back hundreds of years.
These records are important because they provide today's owners with proof that they have good, marketable and insurable title to the property they are selling. Equally important, such records enable buyers to provide proof of ownership when they sell.

The closing process, which in different parts of the country is also known as settlement, is increasingly computerized and automated. In many cases, buyers and sellers don't need to attend a specific event; signed paperwork can be sent to the closing agent via overnight delivery.

In practice, closings bring together a variety of parties who are part of the "transaction" process. For example, while the history of property ownership has been checked, it's possible that the records contain errors, unrecorded claims or flaws in the review itself, thus title insurance is necessary. At closing, transfer taxes must be paid and other claims must also be settled (including closing costs, legal fees and adjustments). In most transactions, the closing agent also completes the paperwork needed to record the loan.

What to expect.

Settlement is a brief process where all of the necessary paperwork needed to complete the transaction is signed. Closing is typically held in an office setting, sometimes with both buyer and seller at the same table, sometimes with each party completing their papers separately.

Whatever the case, the result is that title to the property is transferred from seller to buyer. The buyer receives the keys and the seller receives payment for the home. From the amount credited to the seller, the closing agent subtracts money to pay off the existing mortgage and other transaction costs. Deeds, loan papers, and other documents are prepared, signed and filed with local property record offices.

What you need to do.
One of the best parts of settlement is that buyers and sellers need to do very little.

Before closing, buyers typically have a final opportunity to walk through the property to assure that its condition has not materially changed since the sale agreement was signed. At closing itself, all papers have been prepared by closing agents, title companies, lenders and lawyers. This paperwork reflects the sale agreement and allows all parties to the transaction to verify their interests. For instance, buyers get the title to the property, lenders have their loans recorded in the public records and state governments collect their transfer taxes

The Editor
www.cyberprop.com

NEWS FROM MADISON PROPERTY FUND MANAGERS

2008-04-17T12:34:00.002+02:00

IMPROVED RENTALS WILL BOOST RETURNS FROM LISTED PROPERTY COMPANIES

In the plethora of comment from the business community that followed Eskom’s announcement that they are unlikely to have any spare capacity until 2012/2013 - and that greenfield development projects, by and large, would now be put on hold - it was interesting to hear Mike Flax, Executive Director of Madison Property Fund Managers, say that the current cloud, while wholly unwelcome, does have a silver lining.

This, in Flax’s view, is that industrial, commercial and residential rentals, which have already moved upwards significantly over the last six months, will be given a further boost by the inevitable shortages of space that will follow on the ban on new development.

“Rentals in all sectors, other than retail, will probably increase at above 15% compound, i.e. well ahead of the inflation rate, for the next five years,” said Flax. “The upward rental cycle, which many had thought might ease quite soon, now seems set to continue for far longer.”

Retail rentals, he said, will probably stay at current levels for the next one and half to two years because consumer spending has been hit by the interest rate rises – and until rates drop by at least 2% to 3% consumers will continue to cut back. However, an upswing in the consumer sector, he predicted, will take place towards the end of the first quarter of 2009 and should increase steadily until the year-end.

Property values in this scenario, said Flax, are likely to drop or remain stagnant for at least a year, even though non-retail rentals will rise. This year is, therefore, a good time to buy, perhaps especially in the residential sector which has seen a 5% to 10% drop in values in many areas.

How will the situation he foresees impact on Madison, which manages property and property development for Redefine, Hyprop Investments and Apex-Hi Properties? Flax said that with 40% of this group’s portfolio tied into non-retail property, they are in a strong position to benefit from the extended rental cycle.

“Traditionally,” he said, “retail has outperformed other property sectors and we are confident it will do so again once consumer spending has recovered. One thing is absolutely certain and that is that many of our funds’ retail centres will be upgraded during the coming period so as to position them for the next upswing and gain market share in the current tightening conditions.”

Asked how the Madison development programme will now shape up, Flax said that despite the “almost smothering” impact of the Eskom difficulties on greenfield projects, upgrades, extensions and a limited number of new projects should see Madison involved in some R3 billion worth of development from now until the end of 2009.

The company’s strength, he said, continues to be that its management is pared down, young and energetic. Above all, he said, it is very close to the market and often a jump ahead of its opposition in seeing new opportunities.

“In Madison,” he said, “we have, I think, managed to inculcate a culture which cuts through red tape. We give our young executives a great deal of freedom and this enables them to be innovative and get on with the job.”

- MIKE FLAX

For further information contact Mike Flax on 021 425 1000.

Are You Ready?

2008-04-14T08:03:00.002+02:00

Knowledge and experience are the keys to successful real estate transactions.

One of the keys to making the buying a house process easier and more understandable is planning. In doing so, you'll be able to anticipate requests from lenders, lawyers and a host of other professionals. Furthermore, planning will help you discover valuable shortcuts in the process.

Do You Know What You Want? That is the question.

Whether you are a first-time property buyer or entering the marketplace as a repeat buyer, you need to ask why you want to buy? Are you planning to move to a new area due to a lifestyle change or is buying an option and not a requirement? What would you like in terms of real estate that you do not know you have? Do you have a purchasing timeframe?
Whatever your answers, the more you know about the real estate marketplace, the more likely you are to effectively define your goals. As an interesting exercise, it can be worthwhile to look at the questions above and to then discuss them in detail when meeting you’re your estate agent.

Do You Have The Money?

Property and financing are closely intertwined. (Financing is the difference between the purchase price and the down payment, commonly referred to as debt or the mortgage.) The good news is that over the years new and innovative loan programs have evolved which require high down payment or less.
In addition to a down payment, buyers also need cash for closing costs (the final costs associated with closing the loan). Several newly emerging loan programs not only allow the purchase of a house with no money down, but also underwrite closing costs.
Not everyone, however, elects to purchase with little or no money down. Less money down means higher monthly mortgage payments, so most Property buyers choose to buy with some cash up front.
As to closing costs, in markets where buyers have leverage, it may be possible to negotiate an offer for a house that requires the owner to pay some or all of your settlement expenses. Speak to your estate agent for more details.

Is Your Financial House in Order?

Those great loans with little or nothing down are not available to everyone: You need good credit. For at least one year prior to purchasing a property, you should assure that every credit card bill, rent check, car payment and other debt is paid in full and on time.

The Editor

Cyberprop. Team

NEWS FROM SHELLEY POINT

2008-04-11T08:06:00.000+02:00

NINETY-TWO APARTMENTS BEING BUILT AT SHELLEY POINT – BUT EXISTING RENTAL ACCOMMODATION WILL STAY

For many Capetonians - and Bolanders – the West Coast begins and ends at Langebaan. Relatively few have explored further afield and there is in some people’s minds a perception that the territory north of Saldanha is bleak, windswept and inhospitable. The few 1820 Settlers dumped here by Lord Charles Somerset all left for Cape Town within a year.

A visit to Shelley Point, the 149ha development 150km north of Cape Town could, however, change the average visitor’s perception of the West Coast effectively – and for ever.

In 1994/1995, a visionary property developer, Gert Joubert, began developing the coastline of Brittania Bay and St Helena Bay - and one of the results of this innovative action has been Shelley Point.

This 1,500 erven project was from the start given an image totally at variance with what most people regard as typical of the West Coast.

To kick off the development, Joubert erected an imposing entrance gate, more like a Roman triumphal arch than a gatehouse, and a Vasco da Gama Museum - because St Helena Bay was this Portuguese mariner’s first South African landfall. He then criss-crossed the estate with large, often double carriage, boulevards, on the verges and central isles he planted grass, indigenous bushes and some 900 palm trees, almost all of which have flourished as a result of being automatically watered year-round by a drip irrigation system.

To these initial facilities Joubert then added a bowling green, a nine hole golf course and, more recently, tennis courts, a R30 million clubhouse with a wellness centre, spa and swimming pool – and a R2 million desalination plant to have enough fresh water to keep the estate green.

Taken together, these today make Shelley Point one of the most perfect places in the Western Cape to spend a weekend – or longer – and it will come as no surprise to those who know the place that some 20% of the buyers in the last few years here have been from Europe and the UK.

The estate is particularly attractive to nature lovers because from July to January Southern Right and Humpback Whales can be seen daily in St Helena and Brittania Bays. Indeed, Andre van Wyk, Shelley Point’s Clubhouse General Manager, says that sometimes they come so close to shore that he is convinced that they are actually rubbing their undersides on the beach sand.

Those wishing to holiday at Shelley Point will from July onwards be able to rent or buy a brand new apartment, the first 42 of which will come on stream in mid-year. Ninety-two apartments will be erected altogether in two new blocks just behind the clubhouse.

B & B rates here will be from R375 per person sharing and children under 12 years old will either stay free (if very young) or be given a 50% discount. The apartments will have full self-catering facilities.

The apartments can be bought from prices ranging from R900,000 to R1,2 million.

For those who would like to stay at Shelley Point before the new apartments are ready, a rental service has free-standing homes available with two, three or four bedrooms. These are privately owned by people who do not live permanently at Shelley Point but who use an independent rental pool service to make their homes available. This type of accommodation is ideal for family and larger groups looking for a relatively inexpensive break: a two bedroom home with beds for four can be had for as little as R650 per night and a three bedroom home for R800 per night.

Visitors to Shelley Point, says Andre van Wyk, almost invariably praise it primarily on three counts. These are, firstly, that it has an all pervading atmosphere of tranquillity, secondly, the clubhouse and facilities are superb and, thirdly, that it offers some of the best fishing in South Africa. Stompneus, galjoen, yellowtail, harders and – above all – crayfish abound in these waters. Surprisingly, however, only a very small percentage of Shelley Point’s visitors actually ever pick up a rod or crayfish net.

Those wishing to find out more about what Shelley Point can offer the casual visitor – possibly also looking to buy – should consult their website www.shelleypoint.com. No other single resort on the entire West Coast, says van Wyk, has so comprehensive a range of facilities and services – and future plans, which include more luxury apartments and a small boat harbour, will add to these.

NEWS FROM ANNE PORTER KNIGHT FRANK

2008-04-01T16:38:00.002+02:00

NUMBER OF SHOWHOUSES AND SHOWHOUSE VISITORS WELL UP ON LAST YEAR

In the three months from December 2007 to February 2008 the real estate industry saw a 7% rise (on the same period the previous year) in the number of Cape Peninsula homes given show days. 12 960 homes in all were opened for show days – and an estimated 20% more visitors came to them.

“Contrary to popular belief, there has,” said Lanice Steward, MD of Anne Porter Knight Frank, “been a great deal of activity in the market, particularly in the upper middle and upper brackets. Stock numbers have risen significantly but so has the number of would-be buyers. This has enabled us to increase our year on year first quarter turnover by 14% with March increasing by well over 60%.”

Asked the reason for the increased activity, Steward said that there is a “fruit salad” of interlinked causes, including all the usual ones: promotion, transfer, divorce, retirement and financial problems. The last, she said, now very definitely plays a bigger role than in 2007.

“Many people are feeling the crunch and are scaling down to cope with job losses, higher interest rates and stricter credit restrictions.”

Far more people, said Steward, are now facing up to the reality that they will need additional security in their retirement and a move to a retirement village will be essential even though it may be the last thing that they want.

Those facing bond repayment problems, said Steward, should take note that banks do not like repossessing homes – they almost always lose money in the process and it detracts from their primary activities.

“At APKF we have found time and again that although people are struggling financially they are scared to confide in their banks. When they do, however, they often find that the bank is far more helpful than they had anticipated. It is frequently possible to negotiate a 30 year repayment period, to skip a few months’ payments and even to alter the interest rate. Banks do try to help in this matter.”

In a separate statement last week Steward made it clear that although SA expatriates, especially those living in the UK, are keen buyers of SA property, the market is not much influenced by non-South African overseas buyers.

“Those who propound the doom and gloom scenario for Cape property,” said Steward, “might find it very difficult to explain why it is that the number of genuine would-be buyers has risen so much. The market has retained its confidence and is still, both locally and from the SA expatriate community in the UK, very much alive.”

For further information contact Lanice Steward on 021 671 9120 or email lanice@anneporter.co.za.

Top 10 Man-Made Island Paradises

2008-03-26T09:09:00.002+02:00

Have you ever fantasized about building an island paradise? Although many people dream about creating an island, few can dredge up the money or materials to realize those inspirations except in the most unusual circumstances. But, within the past century, developers have created habitable islands where individuals can live in communities or where they can visit for entertainment and relaxation. Investors now can own a piece of man-made island paradise, all shaped from dreams and blueprints or expanded upon with reclamation efforts. Although much of the world’s attention has been drawn to the creative island-building efforts located in Dubai, such as The Palm, the list below includes man-made island paradises located in the U.S., Japan, Spain, and other areas as well as the mideast. Some islands were built specifically for tourists, while others were created only for homeowners. Some blend both community life with tourism to offer a wide variety of possibilities for all concerned. Some islands have been inhabitated for decades while others recently have invited investors to the table for projects that will be finalized within the next decade.

The list below is in no particular order. While the sites are numbered, the numbering does not indicate that we favor one site over another or that they are listed in order of value.

1. The World: One way to add land mass to a city is to add a series of world-class islands to that city’s coastline. Dubai developer, Nakheel, has added more than 1,500 km of beach front to the Dubai coastline with various island-building projects over the past decade. These islands include The Palm, The World and Dubai Waterfront, and they’re located off the Dubai city coastline, United Arab Emirates (UAE) in the eastern Arabian Peninsula. The World is the latest complete island paradise, with the last stone on the breakwater added on 10 January this year. Investors and developers can choose among 300 islands in the shape of the continents to create estate islands and residential and resort communities. All 300 islands are accessible only by marine or air transport, with world-class marinas to berth boats, yachts and cruise liners. Two mainland marinas will service The World, and 4 hub islands in The World will service the islands. Nakheel integrates a series of waterways, canals and lakes to enhance the overall design. Investors have the freedom to create their own personal vision on the islands for private or commercial use, whether it is for leisure, residential or tourist developments. The 300 islands will be offered for sale on a freehold basis to selected investors only. If The World doesn’t suit your taste, perhaps the next Nakheel project, The Universe, will be more your cup of tea.

2. Tokyo Disney Resort: Tokyo Disney Resort may or may not be the ideal paradise destination for adults, but adults with kids in tow might prefer this Japanese Disney destination over California’s Disneyland or the Magic Kingdom in Florida. Tokyo Disney Resort was the first Disney park to be built outside the U.S., and it will celebrate its 25th anniversary during 2008. The park was constructed by Walt Disney Imagineering in the same style as the U.S. parks. The Oriental Land Company purchased the theme license from the Walt Disney Company although it follows the Disney ideal. The island contains 115 acres, and it is located in Urayasu, Chiba, Japan, near Tokyo. The island resort contains five hotels within walking distance from seven themed areas within the park. If you don’t have children in tow when you visit Japan and you want to visit a man-made island, you can plan to fly through Chūbu Centrair International Airport, Kansai International Airport, Kobe Airport, or the new Kitakyushu Airport. All four Japanese airports are built upon artificial islands.

3. Eden Island: Imagine living on a private island, with secluded beaches, a world-class commercial precinct, international marina capable of handling super-yachts as well as a range of activities and leisure facilities for your exclusive use. You can find this paradise on Eden Island, located in the Seychelles archipelago nation. This archipelago is located in the Indian Ocean, some 930 miles east of mainland Africa, northeast of the island of Madagascar. Situated just off the coast of the main island of Mahé, Eden Island is a 99-acre residential marina development that sports a minimum of 480 luxury freehold apartments, mansions and private villas. Homes are spacious, with large verandas and high-pitched red roofs. They feature breathtaking views over mountains, ocean, forests and nearby islands like Cerf and Ste. Anne. Unlike Tokyo Disney resort, Eden island is for property owners only and these owners qualify for residency. Only property owners within the development have exclusive use of facilities such as private beaches, parks, private moorings, clubhouse facilities and much more.

4. Venetian Islands : You don’t need to leave the U.S. to find first-rate man-made island paradises. You can find several situated near Miami in the form of the Venetian Islands. Although this little piece of heaven isn’t for the hermit, it’s perfect for anyone who wants to own a piece of community real estate in the one- to five-million dollar range. The islands, originally built in the 1920s, are connected by the historic Venetian Causeway from the Miami mainland to Miami Beach. The islands did not exist when the Venetian Causeway was first envisioned. Beginning in 1922, the Biscayne Bay improvement Company sold lots for underwater plots with contracts specifying that the buyer would receive land on an island once it had been dredged, filled, and improved. Construction of the Venetian Islands proceeded quickly and work on the Venetian Causeway began in 1925, consisting of viaducts, fill, and drawbridges. The Venetian Causeway was listed in the National Register of Historic Places in 1989. Today, the this causeway is a popular stretch for joggers, bikers, dog walkers and sightseers.

5. Balboa Island: In 1908, Balboa Island near Newport Beach, California, was little more than a sandbar. Then, real estate promoter William Collins received permission from the Orange County Board of Supervisors to dredge the surrounding bay. He piled more sand on that little sandbar and built Balboa Island. Collins originally sold lots on the island for as little as $25. It’s a little late to purchase a lot on Balboa Island for that price, as some bay front lots now are appraised at over three million dollars. Despite this price increase, the island has retained its early twentieth-century charm. It is home to professionals, families, retirees, students and celebrities, but Balboa Island also entertains tourists and vacationers who return year after year to enjoy the scenery and activities. Local tradition has it that Balboa Island is where the frozen chocolate banana was first marketed, and tourists and residents alike count on stores to carry bags filled with salt water taffy and Balboa Bars (a brick of vanilla ice cream on a stick dipped in chocolate and rolled in chopped peanuts). Sounds as though a visit to this man-made paradise could sate your sweet tooth!

6. Sentosa Island: Singapore is no stranger to land reclamation, as they have constructed at least eight artificial islands over the years. The one that is most popular among tourists and residents who seek man-made island paradises is Sentosa Island. This 1,235-acre island was originally an island that has experienced man-made expansion. Complete with championship golf courses, spas, and world-class entertainment, the Sentosa HarbourFront contains over 20,000 square feet of retail space and attractions that run the gamut from adventure rides to historical exhibits amidst a retail environment. Located on the western tip of Sentosa island, Rasa Sentosa Resort is Singapore’s only beach front hotel. But, HarbourFront masterplans include a 10,000-strong residential community alongside this integrated family resort. Within the year, the Capella Singapore, developed by Millenia Hotel Pte Ltd (an associate company of local property conglomerate Pontiac Land Group), will open a six-star luxury resort that boasts 170 rooms and a number of private villas. Architectural genius Lord Norman Foster and legendary hotelier Robert Burns will see this multi-million dollar hotel project to fruition.

7. The Pearl-Qatar: Not to be outdone by its Dubai neighbor, Qatar is building a multi-billion dollar artificial island located less than one mile off the Doha coastline. The island will create almost 20 miles of new coastline, and it will provide 985 acres fronted by more than 12 miles of pristine beaches for over 40,000 residents in more than 15,000 dwellings within 12 precincts by 2010. The Pearl-Qatar is this country’s first international real estate venture. It represents the largest real estate development in the country and the first venture here to offer freehold and residential rights to international investors. Shaped like an exotic string of pearls, the Pearl-Qatar will allow room for800 guests among its 40,000 residents to enjoy three marinas, three 5 star hotels, plus almost half a million square feet of retail, dining and entertainment space.

8. Zoran Island: Mr Gulu Lalvani, developer of the Royal Phuket Marina in Phuket, Thailand, has his eye set on a new project - Zoran, a man-made island located off the Phuket shoreline. Lalvani told local press that Bill Gates and his 54-meter yacht.provided the inspiration for this island. Phuket lacks a marina that can handle superyachts, a significant failing in light of the increasing number of super-rich tourists such as Bill Gates coming to this area. An Australian consulting firm has been hired to survey the proposed project site, which Lalvani named after his youngest son. Plans are developing for a hotel, luxury villas and berths for superyachts. So, if you have a hankering for such a place, then keep an eye on this future project.

9. Sovereign Bay: If you’d prefer to live in Spain, then this proposed marina development, planned by Foster and Partners, might be your idea of luxury. This man-made island paradise is located on an existing area of reclaimed land to the east of the Rock of Gibraltar. The scheme includes a comprehensive environmental strategy, which capitalizes on the regional climate, location and orientation of the buildings, including using seawater from the surrounding Mediterranean Sea to cool the buildings. The new harbour is spacious enough to accommodate a boutique cruise liner terminal as well as a full marina for yachts. According to the Web site, the sweep of the marina arm will hold retail, cafe and restaurant life, terminating in a luxury residential development on the land-side. “The residential component will include a range of apartments with private swimming pools, terraces and sea views. Two beaches on each side of the development will be regenerated, with a spa and hotel located at the land-side gateway. The harbour will be connected to a series of landscaped public squares and plazas, with naturally-lit underground parking and direct pedestrian access, which will include a variety of leisure facilities, such as swimming pools and tennis courts, in addition to a full compliment of retail and designer outlets.” With those amenities, you’d never need to leave this island paradise!

10. Reef Island: You don’t need to wait until 2010 to invest in Reef Island. This man-made island paradise is gathering momentum as a flux of Bahraini and European investors have rushed to book up to over half the proposed housing units to date. Previously known as Lulu Island, this reclamation project is being built as a joint venture between the Bahrain government and the Bahrain-based Mouawad Group Real Estate Development Company off the coast of Al Manama, in the Kingdom of Bahrain. The development was designed by Australian-based Spowers and Pentago, and it is designed in the shape of the number nine. This freehold development project’s land reclamation is complete, and it covers an area of 6.23 million square feet. Construction has begun on approximately 1,200 condominiums, 65 villas and 49 beach fronted homes. Future plans include a 250-room five-star hotel, marina and yacht club, an aquarium, a well care center, a shopping mall, and a multi-function exhibition center.

Tips on property investment

2008-03-17T14:24:00.001+02:00

NEWS FROM RAWSON PROPERTIES
- from one of the most experienced people in the game

Throughout his 35 years in real estate marketing, he has regularly and steadily invested in property – and this has proved to be financially and emotionally rewarding, says Bill Rawson, Chairman of Rawson Properties.

“I am always surprised that others have not also been investing in property,” said Rawson recently. “It is really not that difficult provided that you do your homework, study the market and work with an agent with a proven track record.”

Successful property investors, said Rawson, devote time to familiarising themselves with their fields of operation. They strive to understand current trends by reading newspaper advertisements, visiting show houses and attending auctions. They find out who the likely end-users i.e. buyers or tenants will be, and what such users can probably afford.

Rawson recently told a small group of mostly retired investors, keen to put money into Cape residential property that property is the logical investment channel for intelligent, retired people.

“It still surprises me,” says Rawson, “how often eminent professionals such as yourselves who are known for the thoroughness with which they tackle legal, engineering and medical work will go into property almost on a whim. Often they do quite well, but seldom, in my experience do they maximise their potential profit.”

Common mistakes of amateur investors, said Rawson, are:

·To buy in response to an emotional stimulus, often simply because they like the property or are influenced by clever marketing hype. Frequently, he said, this will lead to paying above the market price.
· To accept the advice of a friend without getting full details or second or third opinions.
· To neglect the management of the project or, if this is handed over to an agent, to be slack about checking up on the agent’s performance.
· To go into the deal without a game plan – and then to panic when conditions get difficult. The game plan, said Rawson, should always include a worse-case scenario and spell out the implications in this situation.

Ideally too, property investors, he said, will divide their portfolio into long-term (10 years +) and short-term prospects, designed to bring in a quick profit. When selling they will recognise the importance of leaving some fat in the deal for the next buyer.

They will too, recognise that good opportunities crop up regularly and they will befriend local agents so as to be the first to hear of these. On occasions they will put in a really cheeky low-price offer knowing that these occasionally bear fruit. They see the renovation potential in buildings and build up teams of trustworthy artisans and designers to help them double or even treble the value of such buildings.

They resist greed, limiting their portfolio’s debt to manageable proportions, use bank finance regularly and keep reserves for times when there could be a downturn.

“The great advantages of property,” said Rawson, “are that there are very seldom hidden factors of which the investor is ignorant. In this respect property is very different from the average Security Exchange share where the company can limit the supply of information to its public. In property the likely factors to influence values, e.g. interest rates, shortage or over-supply of stock, defaulting tenants or similar problems, can usually be understood and factored in so that you are unlikely to be caught out down the line. In recent years there have been very few properties that did not increase in value at at least 10% + per annum.”

Right now, said Rawson, is a good time to invest in the residential property market because the higher interest rates, the National Credit Act, the falling rand, higher inflation and a degree of uncertainty about the South African political future have stopped home and apartment prices rising at their previous rates – so there are now good bargains on the market.

“It is now quite clear that the current 4% to 5% returns on residential property will improve this year. I am confident that we will see to 6% to 8% returns and these will raise the capital values on all residential property.”

For further information contact Bill Rawson on 021 658 7100 or email research@rawsonproperties.com.

NEWS FROM ANNE PORTER KNIGHT FRANK

2008-03-14T08:51:00.000+02:00

HOMEOWNERS MUST HAVE THEIR TITLE DEEDS TO HAND WHEN SELLING A PROPERTY

Homeowners often do not appreciate the importance of their title deeds, says Lanice Steward, MD of Anne Porter Knight Frank.

If they are buying with a mortgage bond a copy of the deeds will always be held by the bank - but the buyer must nevertheless have his or her own copy.

If the buyer is buying for cash, he should have been given a copy of the deeds by the attorney on paying the transfer cheque - or within three months of transfer. This elementary duty on the part of attorneys is sometimes overlooked due to pressure of work and delegation to uninvolved clerical staff, says Steward.

“Those who do not have the title deeds can apply through their attorneys to the Deeds Office for a copy but if, as often happens, they leave this until the property is sold, they are likely to find that the transfer is held up by the lack of this all important document.”

For further information contact Lanice Steward on 021 671 9120 or email lanice@anneporter.co.za.

How to Price Your Home

2008-03-13T16:49:00.001+02:00

pricing decisions should be grounded in reality rather than wishful thinking

When the time comes to price your home for sale, you may be tempted to start with the price you paid for it, add a healthy mark-up and call it a day. Unfortunately, that strategy is unlikely to result in a true reflection of your home's market value.
Here are six strategies to help you figure out how much your home is worth:

1. Abandon your personal point of view.

How much will a ready, willing and able buyer be willing to pay for your home? Buyers don't care how much you paid for the home, how many memorable moments you and your family shared in the home, how much cash you need for the down payment on your next home or how much time and money you've invested in your home's hardwood floors, fresh paint, lush landscaping or other improvements.

2. Get a couple of CMAs.

Invite at least three real estate agents to visit your home and give you their opinion of its likely selling price. Ask for a "comparative market analysis" (CMA), which shows the prices of comparable recently sold homes, on-the-market homes and homes that were on the market, but weren't sold. The on-the-market homes are the "competition" for your home. Ask the agents why each home was included in the CMA and whether any other comparable homes were eliminated from the CMA. Price recommendations based on CMAs aren't gospel. Some agents will tell you to under-price your home in hope of sparking a bidding war. Others will suggest a flatteringly high price to "buy" your listing only to demand a price reduction a few weeks later.

3. Do your own market research.

Go to open houses in your area and try to make an impartial assessment of how those homes compare to yours in terms of location, size, amenities and condition. Assuming all the asking prices were the same, would you buy your home or someone else's?

4. Calculate the price per square foot.

The average price per square foot for homes in your area shouldn't be the sole determinant of the asking price for your home, but it can be a useful starting point. Keep in mind that various methodologies can be used to calculate square footage

5. Consider market conditions.

Are home prices in your area trending upwards or downwards? Are homes selling quickly or languishing? Will your home be on the market in the spring home-buying season or the dead of winter? Are interest rates attractive? Is the economy hot or cold? Will you be selling in a buyer's market or a seller's market? Is the local job market strong or are employees fearful of staff reductions?

6. Sweeten the transaction terms.

Some buyers have needs that go beyond the bottom line. If you're willing to close escrow quickly, you'll attract buyers who want to move in right away. If you can offer seller-financing, your home will appeal to buyers who need to stretch their financial resources. A lease-option can help first-timers who need down payment assistance. The more creative and flexible you can be in meeting the buyer's needs, the more success you'll have in pricing your home to sell.

Editor: By Marcie Geffner

Rent-to-Own Deals: Smart Questions to Ask...

2008-03-06T13:42:00.001+02:00

For Sellers:

Who will tend to the property and pay for routine maintenance?

Who pays for major repairs?

What are the costs of setting up and managing an escrow account for the portion of rent allotted to the down payment?

Will you manage the property yourself, or hire an agent?

What if the renters change their minds?

Who keeps the money in the escrow account?

If the buyers change their minds, what will be required to put the property back on the market?

For Buyers:

How much of the rent is going to the down payment?

How locked in are you if you change your mind?

What will it cost you to get out of the deal?

How long will it take to accumulate enough of a down payment that you are likely to qualify for a mortgage?

NEWS FROM GREEFF PROPERTIES

2008-03-03T14:54:00.000+02:00

LARGE HOME ON SUBDIVISIBLE PLOT IN WARBLERS WAY, CONSTANTIA, SOLD BY GREEFF PROPERTIES – FOR MORE THAN THE ASKING PRICE

In a remarkably short space of time (32 days in all) since Greeff Properties received a sole mandate to market a Constantia home on an exceptionally large 11,000m2 site in Warblers Way, a sale has been concluded with Mike Fenner-Solomon of Michael Grant Developments.

With unprecedented interest shown in this property from various quarters it is understood that the sale price ultimately achieved was some 6,5% above the original asking price.

“The reason for the excellent response,” said Mike Greeff, Chief Executive of Greeff Properties, “was that this site had already received an approval for sub-division into six erven, one containing the existing home and five suitable for new homes. It is located in a quiet area and all plots will offer superb mountain vistas.”

The original house has an unmistakable Herbert Baker/Groot Schuur look to it which is no surprise as it was designed by an architect trained by Baker himself. The existing 553m2 double storey home served for many years as the Swedish Ambassador’s residence and offices.

Fenner-Solomon has revealed that he will be completely renovating the 70 year old historic home on its 3,200m2 site (with a swimming pool) and building luxury double storey homes with swimming pools on each of the remaining erven. These houses will have 500m2 to 550m2 of floor space and will be on plots averaging 1,400m2 in size.

Fenner-Solomon, who has personally designed the homes developed by him in his 15 year career, will be designing these new units. He will, he said, as on almost all his previous developments be building in a traditional but contemporary Constantia style with such attractive features as pitched slate tiled roofs, high ceilings, solid timber doors and floors, sliding sash windows, fireplaces, and deep covered verandas. As important as the homes themselves will, he said, be the landscaping: a very substantial sum will be spent on totally re-landscaping the gardens of all six sites. This work, as on previous Michael Grant Developments projects will be supervised by the respected landscaper, Alan Dawson.

Greeff said that Fenner-Solomon is one of the most respected developers in the entire Constantia valley, his main focus being the Upper Constantia area, where the Michael Grant Developments Billboards are now seen on many roads; including Brommaert and Spaarman Roads and Willowbrooke Lane, Spilhaus Avenue, Avenue Bordeaux, Brommersvlei road and Avenue Provence.”

“All these homes,” said Greeff, “have attracted fulsome praise both from the public and the architectural fraternity and we at Greeff Properties are delighted that he has taken over this very central, high profile project.”

Mike Fenner-Solomon said that his company had gone to great lengths to research commercially viable energy and water saving methods. The new homes, like others now being built by his company, will have the latest solar water heating and solar panels with battery back-up to ensure that electricity supplies to essential circuits are constant. They will also have grey water systems in the gardens to back up the borehole sourced automatic irrigation systems. Timers to all hot water cylinders and geyser blankets will be standard and all hot water pipes will be lagged. These items, said Greeff, should be basic essentials but are invariably overlooked in most residential homes.

The houses will also enjoy “double” security and privacy because each home will have its own security system and be enclosed within the estate as a whole.

“There has,” said Greeff, “already been a remarkable response from interested parties and potential buyers asking to be kept informed about the launch date. Completion is set for mid-2009 and although Michael Grant Developments invariably markets their homes only after completion it seems likely that Greeff Properties, who are handling the sales, will have signed up all the properties at the outset. It is clear that despite the uncertain political and economic conditions, there will always be an ongoing need for secure properties in the heart of the best residential areas such as this.”

For further information contact Mike Greeff on 021 794 4969 or 083 679 1809 or email info@greeff.co.za.

NEWS FROM ASLO HOLDINGS

2008-02-25T16:01:00.000+02:00

ASLO’S WEST COAST SALES AND MORTGAGE BOND COMPANIES BENEFIT FROM THE TIE-UP WITH ACTIVE PROPERTY DEVELOPERS, LANGEBAAN

Anyone visiting Langebaan for the first time in three or four years will be surprised to find just how much residential and other development has taken place here, especially in the precinct north of the village in close proximity to Club Mykonos. One indicator of how prosperous the area has become is that there are now no moorings available in the three local yacht clubs – Langebaan, Club Mykonos and Saldanha.

Two Aslo Property Group companies, A Property Sales and A Mortgage Loan, have ridden the recent property boom particularly well. Early last year Anthony Smook of Aslo did a deal with Langebaan developer Bennie van der Merwe, CEO of Active Property Developers which resulted in van der Merwe becoming a shareholder in A Property Sales and A Mortgage Loan. This has enabled the two Aslo companies to muscle in on all Active Property Developers’ projects – to their mutual benefit.

Right now, the Aslo companies are involved with the selling and, in most cases, the mortgage bond finance on The Dunes and White Waters. These will have double storey homes, each with a garage. They are sited at Laguna, close to Club Mykonos, the retail centres and the Curro Private School and will have fourteen and eleven homes respectively. These are all designed in an attractive white walled Weskus style that makes use of the traditional bakoond type chimneys and paved wind-free patios covered with pergolas.

The units in each case have a double storey central pitched roof section flanked by flat roofed cottage type additions. They come with two bedrooms and, in some cases, an upper loft. Prices, which vary from R850 000 to R950 000, and are likely, he says, to escalate at 15% per annum, reflect the relatively low cost of labour and of land in this area. Buyers, says van der Merwe, have come from all over SA and over half intend to settle here permanently, the remainder buying for holiday or retirement use.

To date, only 12 months since the launch, all but six of the 25 units have been signed for. Transfer will be given by the latest end of March 2008.

A Property Sales and A Mortgage Loan, have also been involved with van der Merwe and another developer on the Laguna Lifestyle Village, a luxury retirement development sited close to the Laguna Mall, designed to have 151 homes in all. Here prices are pitched from R825 000 to R1 219 000 and to date 24 units in phase one have been sold despite there having been no official launch. Handovers will take place from June 2009 onwards. A civil engineering contractor is already on site handling the roads and services.

A fourth project on which van der Merwe and the Aslo companies are involved has been a 14 unit mini-factory park, Nordyk Park, at Saldanha, an area undergoing rapid industrial expansion. Here the units are on average 200m² in size and are priced from R740 000 inclusive of 36m² office space.

Asked to what he attributes the increased demand for property at Langebaan, van der Merwe said that its accessibility is undeniably one of its chief attractions.

“It can take you two and a half to three hours to drive from Cape Town to Hermanus or Onrus at peak traffic times on a Friday afternoon – and much the same time to return on a Sunday evening. By contrast, Langebaan is never more than one and a half hours away, and less for those living north of the CBD.”

The ongoing demand, he said, had kept prices more buoyant than in any other part of SA and had boosted property values by 22% over the last year.

Aslo’s staff at Langebaan, are: Di Plumridge (an A Property Sales agent), Pierre Mouton (an A Property Sales agent), Wikkie Agenbag (an A Mortgage Loan consultant), Sorita Coetzer, PA to Bennie van der Merwe and Office Manager.

For further information contact Bennie van der Merwe or Sorita Coetzer on 022 772 0240.

Five Keys To Successful Negotiation

2008-02-22T08:14:00.001+02:00

Whether you're a buyer or a seller you want to succeed in the realty marketplace. That's natural and reasonable, but what are the steps you need to triumph?
Negotiation is a complex matter and all transactions are unique. Sides—buyer and seller—want to feel that the outcome favours them, or at least represents a fair balance of interests. In the usual case there is a bit of bluff, some give-and-take, and neither party gets everything they want.

So how do you develop a strong bargaining position, one which will help you get the most from a transaction? Experience shows there are five basic keys which will determine who wins at the negotiating table.

1. What Does The Market Say?At various times we're in a "buyers" market, a "sellers" market, or a market where housing supply and demand are roughly equal. If possible, you want to be in the market at a time when it favours your position as a buyer or seller.

Because all properties are unique—it is possible to buck general trends and have more leverage than the marketplace would seem to allow. For instance, if you have a property in a desirable area with few sales, you may be able to get a better deal than elsewhere. Or, if you're a buyer who can quickly close, that might be an important negotiating chip when dealing with an owner who just got a new job 500 miles away.

2. Who Has Leverage?If you're on the front page of the local paper because your business went bust—and the buyer knows it—you have little clout in the bargaining process. Alternatively, if you're among six buyers clamouring for that one special property, forget about dictating an agreement—the owner can sit back and pick the offer which represents the highest price and best terms.

3. What Are The Details?A lot of attention in real estate is paid to transaction prices. This surely makes sense, but the key to a good deal may be more complex.
Consider two identical properties that each sell on the same day for R275, 000. The houses are the same, the sale prices are the same, but are the deals the same? Maybe not. For instance, one owner may have agreed to paint the property, replace the roof, purchase a new kitchen refrigerator, and pay the first R3, 000 of the buyer's closing costs. The second owner made no concessions.

In this example, the first house was actually sold at discount—the R275, 000 purchase price less the value of the roof repairs, closing credit, and other items. If you're a buyer, this is the deal you want. If you're a seller, you would prefer to be the second owner and give up nothing.

4. What About Financing?Real estate transactions involve a trade—houses for money. We know the house is there, but what about financing? There are several factors that impact the money issue:
Has the buyer been pre-qualified or pre-approved by a lender? Meeting with a lender before looking at homes does not usually guarantee that financing is absolutely, unquestionably available—a loan application can be declined because of appraisal problems, title issues, survey findings, and other reasons.

But, buyers who are "pre-qualified" or "pre-approved" (these terms do not have a standard meaning around the country) at least have some idea of their ability to finance a home and know that they are likely to qualify for certain loan programs.

The result is that pre-qualified buyers represent less risk to owners than a purchaser who has never met with a lender. If the seller accepts an offer from a buyer with unknown financial strength, it's possible that the transaction could fail because the buyer can't get a loan. Meanwhile, the owner may have lost the opportunity to sell to a qualified buyer.

The lower the interest rate, the larger the pool of potential buyers. More buyers equal more potential demand, good news for sellers.

Alternatively, high rates or even rising rates may drive buyers from the marketplace—and that's not good for anyone.

It used to be that down payments were a major financing hurdle—but not anymore. For those with good credit, loans with 5 percent down or less are now widely available. In fact, 100 percent financing, mortgages with nothing down, are now being made by conventional lenders. Reduced down payment requirements are good for both buyers and sellers.

5. Who Has Expertise?Imagine you're in a fight. The other guy has black belts in 12 martial arts—and you don't. Who's going to win?

Brokers have long represented sellers, and now buyer brokerage is entirely common. In a transaction where one side has representation and the other does not, who has the advantage at the bargaining table?

The Editor
Cyberprop

DROP IN RAND WILL REIGNITE FOREIGN BUYER INTEREST

2008-02-20T13:43:00.000+02:00

The 15% drop in the value of the rand (measured in relation to the dollar) and a 10% drop to the Euro will very definitely reignite interest in upmarket Cape property among foreign buyers, says Mike Greeff, CEO of Greeff Properties. The signs of a revival in UK buyers’ demand for Cape property, he says, are already there.

“With foreign buyers likely to comprise a maximum of 1,5% of the total of those buying Cape homes, their overall effect on the general market will,” says Greeff, “be minimal, but in “high end” properties the renewed foreign interest will keep prices buoyant.”

Repeating what he has said previously, Greeff warned again that there is absolutely no need for the South African authorities to become xenophobic or paranoid about foreign buying. It should, he said, be welcomed because it has knock-on benefits right down the line.

In addition, he added, in his experience many overseas people who buy in SA purely for recreational or retirement purposes end up investing here as well.

“It is the nature of such people to study the business scene and to capitalise on opportunities – and that is just what happens, to the benefit of SA as a whole.”

Greeff commented that there is a “negative sentiment” in SA at the moment regarding property and this is probably due to the high interest rates, the prospect of slower growth, increased crime, power cuts and political uncertainty.

However, he said, this scenario has thrown up numerous good buy opportunities, which will reward those who take the plunge now.

“We need,” said Greeff, “to ask ourselves what will happen if and when the problems mentioned are solved where will the property market then head? Even in the current less-than-perfect circumstances Absa is predicting a 60% (12% per annum) house price growth in five years – and as we all know banks are conservative.”

Greeff commented that a new Constantia project which his company will be involved will soon bring to the market five new plot and plan homes priced at roughly R14 million each.

“This,” he said, “is the sort of opportunity to which I was referring. These homes will be of special interest to local and foreign buyers and, as I see it, for the next year or so similar good opportunities will continue to arise and keep the upper end of the market buoyant.”

For further information contact Mike Greeff on 021 794 4969 or 083 679 1809.

Don’t change tactics if you want to sell fast

2008-02-14T16:11:00.000+02:00

If you want your home to sell as quickly as possible, award a sole mandate to an experienced agent and stick to it.

That’s the advice of Martin Schultheiss, CEO of the Homenet estate agency group, who says homeowners anxious to get their properties sold are often tempted to switch from a sole mandate, with one agent handling the marketing, to an open mandate with several agents theoretically working on the property.

“But our experience shows that such a switch is actually likely to lengthen the listing time of a property rather than shorten it. For one thing, much of the marketing done by the original sole agent will go to waste as the newcomers each institute their own plans to build up interest in the property.

“And secondly, agents are quite naturally less inclined to work on an open mandate than a sole mandate, so the property may actually get less attention than if there were one agent involved.

"Such delays will of course mean an increase in the seller's holding costs, as well as a real risk of the property becoming overexposed."

In addition, he says, a cluster of different for-sale boards on a property creates a bad impression and may well encourage prospective buyers to “shop around” among the various agents involved until they find the one that agrees to present the lowest offer.

“The seller might refuse this but if several buyers use the same tactic, he will increasingly come to believe that these low offers are the best he’s going to get - and end up settling for a much lower price than if he’d stuck to one agent.”

To make matters worse, notes Schultheiss, the seller who skips from a sole mandate to an open mandate also substantially increases the risk of a claim for “double commission" that could badly dent the profitability of his sale.

Such claims can easily arise when the eventual buyer of a property views it with one agent but concludes the purchase through another.

ISSUED BY HOMENET
FOR MORE INFORMATION
CALL MARTIN SCHULTHEISS AT
031 266 9850 OR VISIT
www.homenet.co.za

Distributed by/ versprei deurThe Mega/ Press NetworkPse direct any enquiries to012-333-6644,073-946-9649 ormegw@telkomsa.net

RE/MAX urges state to launch first-time buyer "package"

2008-02-11T15:49:00.000+02:00

SUN CITY (February 07) – Government has been called upon to unshackle the current property market slowdown by giving more meaningful support to home ownership by launching a “package” in the March 28 budget structured specifically around assisting first time homebuyers.

Ideally, first priority should be around tax relief on home loans for a specific period, based on the selling price of the home, and also extending the current transfer duty relaxation from R500 000 to R1m.

The appeal was made at Sun City today by Jeanne van Jaarsveldt, finance and marketing director of RE/MAX of Southern Africa, in his opening address at the group’s 13th convention. A key feature of the convention is its focus on finding ways to assist first-time buyer affordability, which van Jaarsveldt said had become “critical” in terms of the need for action.

While acknowledging the call for tax relief on mortgage repayments was an industry perennial, Van Jaarsveldt said the situation had become far more serious in its necessity from a social, financial welfare point and even job creation point of view. The first time market was in threat of being strangled by rate increases, tighter credit and market uncertainty.

The irony of the current situation was that unsuccessful first time buyers were now crowding an already bursting-at-the-seams rental market and inevitably inflating the cost of rentals. This situation also needed to be urgently addressed in the “package” by encouraging developers to build lower end rental stock through tax incentives, such as scrapping of VAT on new homes and dedication to energy saving measures. Certain foodstuff, based on their necessity enjoyed VAT relaxation, so too should homes in the lower end of the market be allowed the same benefit.

There was also a “dire need” for streamlining and speeding up the processing approval of new residential developments by local authorities. This needed to be orchestrated by central and provincial government with a no-nonsense approach and disciplining local authorities for unjustifiable slow processing.
“After the high rate increases and tighter credit the slow processing is proving the straw capable of breaking many of the remaining developers back and needs to be urgently addressed by the state before developers become an endangered species.”

Van Jaarsveldt admitted he was one of many industry captains greatly disappointed at the lack of communication between the Housing Ministry and the residential sector through the national Institute of Estate Agents on all housing issues. The Institute, like other industry voluntary bodies, was anxious to assist the state in anyway possible, but had been totally ignored as a helpful source of knowledge. Apart from the state’s failure to recognise the Institute’s depth of experience their discounting of its potential value was sad in the context of the urgency to house the nation and indicative of a myopic attitude.

The Editor
Rodney Hayter

NEWS FROM ANNE PORTER KNIGHT FRANK

2008-02-11T11:11:00.000+02:00

LAST EIGHT UNITS RELEASED AT “THE GEORGIAN” IN WYNBERG

The developer of “The Georgian” in Wynberg, one of the most popular multi-unit sectional title developments marketed recently by Anne Porter Knight Frank, has decided to release the last eight of the 36 units in the scheme, all the others having now been sold.

The entry level price of R875 000 represents excellent value for a new project in this sought-after area, says Lanice Steward, MD of Anne Porter Knight Frank.

“It equates to R15 000 per m2 which is R5 000 to R7 000 less than that of similar other projects in the same area,” says Steward.

The site forms part of the old synagogue property which was acquired by the developer and will be security fenced and have electronically controlled gates.

On offer are 62m2 studio apartments and 90m2 two bedroom units. The upper floor is set back to create attractive balconies with views of the Wynberg mountains and False Bay, while the ground floors have small private patios and gardens.

Handover is scheduled to take place from September this year. Construction work has reached the third level. Jacob Wolters & Associates, the architects, have incorporated traditional Georgian features such as quoined corners, moulded straight-line gables, vertically configured windows, moulded plinths and dormer windows.

“When complete this will be an exceptionally attractive building,” said APKF’s Wynberg agent, Gail Cawood, “and its timing is near-perfect because the whole precinct, including the popular Maynardville Park, is being upgraded. This is evident not only in the new developments but in the ongoing improvements to stand-alone homes in the area.”

Editor : Anne Porter Knight Frank

Warning Signs Of a Bad Loan

2008-02-08T08:40:00.000+02:00

Know the red flags of a loan going bad

Chances are you know the seven warning signs of cancer; many people do. But do you know the seven red flags that a lender is taking advantage of you? Or that the loan you are considering is not in your best interests?

If not, the Federal Trade Commission warns in an updated alert, you could end up losing your house and all the equity you've built up in it over the years.

"Not all loans or lenders are created equal," the consumer watchdog agency cautions in the revised bulletin. "Some unscrupulous lenders may offer loans to elderly or low-income homeowners and those with credit problems, promising that the loan will be based on the equity of the home, rather than the homeowner's ability to repay it."

Basically, if a loan sounds too good to be true, it probably isn't. But beyond that, there are certain tell-tale signs that something is amiss and you should slow down and proceed with extreme caution.

Avoid any lender who:
Tells or requires you to falsify information on your application. There is no such thing as a "little white lie" when borrowing money. If you don't tell the truth, you could go to jail or be fined. But even if you are not prosecuted, you could be forced to pay the loan in full right away. Or you could be getting in way over your head and find yourself on the street.

Pressures you into borrowing more money than you need. The only reason a lender wants you borrow more than necessary is to increase his commission. But you'll probably pay more in interest on the extra dough than you'd earn in interest by stashing it away in a savings account. So stick to what you need and ask for no more.

Pushes you into accepting monthly payments you can't afford. Figure out whether you have enough coming in to cover all your monthly bills, including a new or larger mortgage. And don't forget to have a little cushion for emergencies. If your outflow is more than your inflow, you will find yourself in trouble rather quickly. Only Uncle Sam can get away with deficits.

Fails to provide you with the required loan disclosures, or tells you don't need to read them. By law, lenders have to tell you the APR, or annual percentage rate, plus provide an itemized list of closing costs within three days after you apply.

The APR is a comparison shopping tool that includes not just the interest rate but also points, broker fees and certain other credit charges. The list of closing fees, known as a good faith estimate, will cover these charges as well as everything else you'll be asked to pay at settlement.
If yours is considered a "high-rate, high-fee" loan, the Home Ownership and Equity Protection Act, gives you additional rights and protections.

All of this is valuable information, so take as long as necessary to read it. And if you don't understand it, consult with someone you trust for an explanation. That could be an attorney, financial advisor or your local credit counselling agency.

Promises one thing and delivers another. If you are presented one set of terms when you apply for the loan and a completely different set at closing, your antenna should wiggle and you should demand an explanation. Actually, even if your lender explains what's going on, it's probably a good idea to step back and take another, harder look at what he's asking you to agree to. And be prepared to walk away and take your business elsewhere.

Tells you it is okay to sign blank forms. It is never okay to sign a blank form. Period. End of story. So don't allow the lender to fill in the blanks later. If there is a blank, cross it out and initial your mark.

Says you can't have copies of the papers you are signing. Or won't give you copies of the documents you'll be asked to sign.

Lenders may not give you the actual filled-in papers in advance, but they should be willing to give you blank documents that have not yet been filled in so you can take them home and review them or show them to a trusted advisor. If they won't, wonder if they have something to hide.

And if the lender won't give you copies of what you've signed at closing, cancel the deal right then and there. These papers contain important information about your rights and obligations. If your lender doesn't want you to have a set, something's terribly wrong.

The Editor

By Lew Sichelman
(Realty Times)

Get Insurance

2008-01-31T10:22:00.000+02:00

No one would drive a car without insurance, so it figures that no homeowner should be without insurance.

The essential idea behind various forms of real estate insurance is to protect owners in the event of catastrophe. If something goes wrong, insurance can be the bargain of a lifetime.

What kind and how much?There are various forms of insurance associated with home ownership, including these major types:

Title insurance:Purchased with a one-time fee at closing, title insurance protects owners in the event that title to the property is found to be invalid. Coverage includes "lenders" policies, which protect buyers up to the mortgage value of the property, and "owners" coverage, which protects owners up to the purchase price. In other words, "owners" coverage protects both the mortgage amount and the value of the down payment.

Homeowners' insurance provides fire, theft and liability coverage. Homeowners' policies are required by lenders and often cover a surprising number of items, including in some cases such property as wedding rings, furniture and home office equipment.

Flood insurance:Generally required in high-risk flood-prone areas, this insurance is issued by the federal government and provides as much as R270, 000 in coverage for a single-family home plusR100, 000 for contents. Your real estate agent can explain which locations require such coverage.

Home warranties With new homes, buyers want assurance that if something goes wrong after completion the builder will be there to make repairs. But what if the builder refuses to do the work or goes out of business?

Home warranties bought from third parties by home builders are generally designed to provide several forms of protection: workmanship for the first year, mechanical problems such as plumbing and wiring for the first two years, and structural defects for up to 10 years.

Home warranties for existing homes are typically one-year service agreements purchased by sellers. In the event of a covered defect or breakdown, the warranty firm will step in and make the repair or cover its cost.

Insurance policies and warranties have limitations and individual programs have different levels of coverage, deductibles and costs. For details, speak with estate agent, insurance brokers and home builders.

How do you get insurance?The time to obtain insurance and warranty coverage is at closing, so speak with real estate agent or insurance broker prior to closing. Be sure to ask about limitations, costs, deductibles and "endorsements" (additional forms of coverage that may be available).

The Editor
Cyberprop

NEWS FROM RAWSON PROPERTIES

2008-01-29T16:02:00.000+02:00

SARS CLOSE UP TAX LOOPHOLE

A recent amendment to the Companies Act (1973) could help eliminate one of the loopholes in the current tax structure, says Tony Clarke, MD of Rawson Properties.

Up to now, says Clarke, if buyers were thinking of avoiding paying transfer duty by taking ownership of a property through a company, this might have been feasible – but the new amendment will make it impossible.

The amendment specifies that when a company's shareholders authorise their directors to dispose of the majority of the company's assets (or the bulk of its business), a special resolution has to be registered with the Registrar of Companies within 30 days of the resolution being passed. This, says Clarke, will increase the likelihood of the Receiver of Revenue realising that what appears to be simply a share transfer is, in fact, a bona fide property sale - particularly where the company has no or few other assets.

The amendment is effective from and including 14 December 2007 and is not applicable to Close Corporations.

In the past, says Clarke, non-trading companies with only properties as assets, could possibly have been sold without the Receiver of Revenue being aware of exactly what the deal comprised, despite the fact that the Transfer Duty Act had previously been amended to ensure the payment of Transfer Duty on such sales.

“At Rawson Properties we fully support the amendment and the tightening up in this field which, it has to be admitted, is long overdue,” said Clarke.

For further information contact Tony Clarke on 021 658 7100 or email research@rawsonproperties.com.

Look at Homes

2008-01-24T17:10:00.000+02:00

Some 6 million new and existing homes are sold each year. There's no shortage of housing options, but with so many choices the challenge becomes finding the property which best meets your needs.

The housing market is complicated because the stock of homes for sale is always in flux. If it were possible to have a complete list of every home for sale at this very moment in a given community, such a list would become obsolete within seconds as new homes become available and properties now for sale are put under contract.

In effect, buyers are looking at a moving target in a marketplace that is never static. Because of this, it is important to know as much as possible about the choices in preferred markets, and the way to do that is by working closely with a local Agent who has a good "lay of the land."

What are you looking for?

A home is more than just a collection of bedrooms and bathrooms. Several properties -- each with four bedrooms, three baths, and the same price -- may well represent radically different designs, commuting distances, lot sizes, tax costs, interior dimensions, and exterior finishes.

Each of us is different and so it's important to list the features and benefits you want in a home. Consider such things as pricing, location, size, amenities (extras such as a pool or extra-large kitchen) and design (one floor or two, colonial or modern, etc.).

Next, it's important to consider your priorities. If you can't get a home at your price with all the features you want, then what features are most important? For instance, would you trade fewer bedrooms for a larger kitchen?

Lastly, consider your needs in several years. If you'll need a larger home, maybe now is the time to buy a bigger house rather than moving or expanding in the future. If you expect your income to increase, perhaps you should consider a more expensive home financed with a loan program where monthly payments increase in the future.

Where should you look?

All areas and communities have a special nature that gives them identity and value. One community may be well known for historic homes while another offers both suburban living as well as easy access to downtown office areas.

How do you find a house?

Some buyers like to search cyberprop.com by looking at listings on the basis of location or price; others prefer to have local real estate agent suggest properties; and many buyers prefer both approaches.

Regardless of your choice, it's important to target your search. By using basic measures such as general location and affordability, you can refine your search and focus on homes that offer the most desirable features.

As a guide, you should maintain a file with information on each of the homes you like. You can print out listing pages from www.cyberprop.com and then make notes for each one -- what you like, questions, Real Estate Agent contact data, etc.

The Editor

Cyberprop.com

Choose a Home

2008-01-10T16:45:00.000+02:00

There's no doubt that choosing a home is a big decision and you want to do it right.

As a buyer, here's what actually happens. A home has been placed on the market for which the seller has established an asking price as well as other terms. In effect, this is an offer. At this point, you have three choices: accept the seller's offer and create a contract; reject it and not make an offer; or suggest different terms and make a counter-offer. If you choose this last option, the seller may accept, reject or make a counter-offer.

No aspect of the home buying process is more complex, personal or variable than bargaining between buyers and sellers. This is the point where the value of an experienced Estate Agent is clearly evident because he or she knows the community, has seen numerous homes for sale, knows local values and has spent years negotiating realty transactions.

Is it THE house?

A house is shelter, but a home is far more. It's where you live, relax, and entertain friends, raise families, and work. A home is where you spend much of your life, and so choosing a house is an enormous decision.

How do you know if a house is THE one? Probably the best approach is to look at as many homes as possible, something made easy by Realtor.com, where you can quickly and easily view huge numbers of homes, check prices, take video tours and view extensive area information. Once your choices have been narrowed, you can then contact a local Estate agent to find specific information and options.

Can you really afford it?

Getting pre-approved means you have a very good idea of how much you can borrow, what loan programs will most likely work best in your situation and how much home you can afford.

How reliable is a pre-approval? While pre-approval is not a loan commitment, it's still necessary for lenders to check such items as appraisals and the latest credit reports. Despite fluctuating interest rates, pre-approval nonetheless provides a reasoned, careful analysis of what you can afford. After all, loan officers are routinely paid only when loans are originated. It doesn't make much sense for loan officers to suggest high loan limits that later can't be delivered.

The Editor

Cyberprop