Residential property still a good investment
Property is often included in an investment portfolio as it has a low correlation with other assets like bonds and equities and thus diversifies the risk in a portfolio according to Sandra Gordon, senior research and market analyst for Pam Golding Properties, who says that regarded as having higher risk and return than bonds but lower than equities, property is favoured during times of economic and political uncertainty because it is a real, tangible asset.
“Not only does it offer potential capital appreciation but it also generates a steady income stream, which is particularly welcome during uncertain times,” says Gordon.
“Current developments internationally raise questions about the outlook for global growth, trade, inflation and interest rates and, of course, safe haven currencies. These uncertainties are reinforcing perceptions of property’s role as a safe haven.”
Public Works' plan to transform the property sector
The Department of Public Works is set to finalise the Baseline Study on the Transformation of the Property Sector in order to realise the goals of radical economic transformation.
“We will during this financial year move from planning to implementation by finalising the Baseline Study on the Transformation of the Property Sector, obtain approval on the Sector Codes from the Ministry of Trade and Industry, launch the Construction Sector Codes and Charter and integrate all initiatives aimed at transforming the procurement processes to be in line with the Charter,” said Public Works Minister Nathi Nhleko.
The Minister on Tuesday, 16 May 2017, tabled his department’s 2017 Policy Statement and Budget Vote Speech in the Old Assembly Chamber in Parliament.
Property features and trends: What do SA buyers really want?
It’s almost impossible to believe nowadays, but in the not-too-distant past avocado-coloured kitchens, carpeted bathrooms and sponge-painted walls were the height of stylish interior design and would have been deal-sealing features for most home buyers, possibly even prompting the odd bidding war according to Sandy Geffen, Executive Director of Sotheby's International Realty South Africa, who says that these days, tastes and trends are a little different - and certainly more varied, but what hasn’t changed is that the appearance of a property can greatly influence the speed and the final price achieved in sale.
“Historically we have progressed from basic caves and simple huts through ornate castles to high-rise living, and nowadays it’s possible to find literally any type of home your imagination can conjure,” says Geffen.
How to make your offer to purchase more attractive to sellers
You have finally found your dream home and are now ready to put in your offer to purchase, but you are not sure how to go about it and what is involved. Steve van Wyk, MD of Seeff Centurion, says the best way to secure the property is to ensure that you put in an offer that will get the seller interested.
“Remember, you might not be the only interested buyer. If you are serious, then have a frank discussion with the agent and rather put in an appropriate offer,” says Van Wyk.
“Properties below the R1.2 million to R1.5 million price mark often attract the interest of multiple buyers, and if you are really interested it is best to go in with your best possible price offer. Similarly, any well-priced property close to schools, good transport and those in top-class security complexes and estates, tends to attract good interest.”
Top safety tips for sellers on viewing and show days
Most sellers put a lot of time and effort into getting their homes ready for viewings and show days, but they also need to think about how to keep themselves and their belongings safe while the property is open to the public according to Gerhard Kotzé, MD of the RealNet estate agency group, who says prospective buyers are not the only ones who can read an advertisement or ‘For Sale’ sign. Con artists and burglars can too, so sellers need to set boundaries from the start, and enlist the help of their agents to enforce these.
“For example, it is never in order for a stranger to just turn up and try to enter your home unannounced on the pretext that while looking for a property in your area, they saw your sign and decided this might be the perfect home for them. You should never let them in, no matter what they say or how charming they seem,” says Kotzé.