South Africa
Plan to get the most out of ‘downsizing’
August 25th, 2010The prospect of a carefree retirement at the traditional age of 60 to 65 is becoming an increasingly remote possibility for many people.
However, says Harcourts Africa CEO Martin Schultheiss, proper planning can bring it closer, and one of the most important elements of that planning should be to pay off debts – including home loans – as early as possible.
“The Association for Savings and Investment (Asisa) calculated earlier this year that the average monthly pension in SA is less than R3000, and advised that people should keep working for as long as possible to preserve their capital instead of using it to fund their retirement.
“It also said consumers should use any spare cash while they were still earning to pay off debts and then invest more for retirement, even if this meant deferring their material aspirations for several years.
“And we would like to add that following this course will also…
Call to put property taxes to work in housing
August 25th, 2010Although the new mortgage guarantee fund introduced by the Department of Human Settlement is to be welcomed, more needs to be done to help lower-income families achieve home ownership.
So says Harcourts Africa CEO Martin Schultheiss, who suggests that the authorities also look at ways to directly subsidise the mortgage repayments on homes in the lower price ranges.
“One possibility,” he says, “ would be to divert some of the taxes specific to property ownership back into a subsidy scheme for first-time buyers below a certain threshold. These taxes include the transfer duty payable on the purchase of properties costing more than R500,000, the capital gains tax payable on some property sales and even the municipal property rates payable by all homeowners.”
Estimates of the national average house price, he notes, currently range from around R550,000 to almost R800,000, “and to buy even at the bottom end of this bracket, prospective homeowners would…
Eskom hikes positive and negative for landlords
August 13th, 2010Residential landlords who want to keep their tenants may have to forego any further rental increases this year as the new Eskom electricity tariffs start to eat into disposable incomes.
That’s the word from RentalsDOTcom, the rental property management division of Harcourts Africa, which notes that the average electricity is price in most areas has now risen from around 33c/kWh to 41,5c/kWh.
“But on the other hand,” says CEO Martin Schultheiss, “the tariff hikes are going to make it more difficult for many people to qualify for home loans because the banks take household expenditure into account when evaluating affordability. This means they will have to stay in rental accommodation, which is positive for landlords from the demand perspective.”
The national energy regulator (Nersa) gave Eskom the go-ahead in February to raise its tariffs by 25% from 1 April and in most municipalities this is now being passed on to electricity consumers, adding…
Temporary relocation: should you sell or let your home?
August 13th, 2010In a tight economy employees must go where the work is – but that raises questions about what to do with your property when you are offered a contract in another city or country.
The options need careful consideration, says Martin Schultheiss, CEO of the Harcourts Africa property group. “The benefit of selling is that you make a clean break, while renting out your property means that you will have a home to come back to when the contract period is up – and that hopefully that home will have appreciated in value in the interim.”
For homeowners with a large bond outstanding on the property, however, selling is arguably a better option, he says. “The costs associated with a rental property can swallow a large portion of the rental income, leaving the owner to make up the difference between real rental income and the costs of servicing the bond. And that can…
What’s behind that door?
August 3rd, 2010Seasoned home sellers know that first impressions can make or break a deal.
They understand, says Martin Schultheiss, CEO of the Harcourts Africa property group, that exterior appeal is crucial to whet prospective buyers’ appetite. Homes that look tired and unkempt from the street will likely attract only the most intrepid bargain hunters, he says.
“However once sellers have spruced up the garden and exterior of the house the next big hurdle is the entrance.
“It sets the tone for the rest of the house – and while it would be a rare buyer who decides to buy a house on the spot because he likes the entrance, it unfortunately is much more common for uninspiring entrances to squash buyers’ enthusiasm.”
With space at a premium in most apartments, townhouses and even family homes, most sellers don’t of course have grand foyers to work with, but by keeping a few basic guidelines in mind they…
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Take small steps to home ownership
August 3rd, 2010Interest rates may be at historic lows – but first-time buyers find it increasingly difficult to enter the market.
Recent Absa statistics show that house prices are now about 15% higher than a year ago, with the average house price now R1m.
“That places the ‘average’ house out of reach of many, if not most, first-time home buyers, says Martin Schultheiss, CEO of the Harcourts Africa property group. “At current rates, home owners will have to pay about R9 500 a month to service the bond on a property of R1m over 20 years – and that’s on top of their other monthly expenses that are taken into account in terms of the National Credit Act before a bank will grant a bond.
“However, all is not lost for young buyers who wish to own their own homes. Smaller properties, such as apartments or townhouses, offer a first foothold in the market and allow…
Tags: consumer advice, Harcourts Africa, Press release
Home repairs – fix contract first
July 16th, 2010An ill-fitting door or a broken light fixture may not be a deal-breaker when you buy a new home – but don’t expect the seller to fix them at his expense.
Most buyers are willing to overlook small defects, says Martin Schultheiss, CEO of the property group Harcourts Africa. But, he cautions, obvious defects that will need expensive repairs will also be for the buyer’s account, unless rectifying them is made a condition of sale. Such conditions should be clearly specified in the sale agreement.
Another approach may be to use defects as a basis for some serious bargaining and the transaction may be worthwhile if the seller is prepared to discount his price by the amount that the repairs will cost. Buyers who go this route, though, are advised to seek the help of an expert to get accurate quotes for the necessary repairs.
The worst approach, Schultheiss says, is to sign…
Tags: consumer advice, Harcourts Africa, Press release
Wanted – bigger home
July 16th, 2010Homeowners with growing families will sooner or later have to take the leap and buy bigger property – and attention to a few basic principles can help them make sound investment decisions.
That’s the word from Martin Schultheiss, CEO of property group Harcourts Africa, who says: “Many young couples buy starter homes that are easy to maintain such as sectional title apartments, but find themselves needing more space as their families grow. And deciding where to buy a family home needs careful consideration because families need different amenities from carefree young couples.”
The first consideration, he says, is whether the buyer plans to gradually upgrade as the family’s needs grow, or whether the family will buy a home that they can ‘grow into’.
“A slightly bigger home may be suitable while children are young but may become cramped with further additions to the family or when children reach their teenage years. While a…
Tags: consumer advice, Harcourts Africa, Press release
Property: make it a fair deal
July 8th, 2010Estate agents have a moral and legal duty to protect the interests of property buyers and well as sellers.
“Sellers expect estate agents to protect their rights as a matter of course,” says Martin Schultheiss, CEO of Harcourts Africa, “but they should keep in mind that agents are honour-bound to also make sure that buyers’ interests are served.
“Buyers have a right to make sure that their property investment will be protected, and the only way they can determine this is if they have access to pertinent information, such as the reasons why the property is being sold,” he says.
“Reasons for selling property are mostly straightforward and can include the seller relocating to take up a job offer in another town or country, or retirees downscaling to more suitable property.
“Conflicts between buyers’ and sellers’ interest, however, arise when the reason for selling is that the seller wants to get out because of…
Tags: consumer advice, Harcourts Africa, Press release
