Although it is very seldom that tenants find their dream home within a rental property, small changes can make a big difference. Unlike many buyers who purchase their home with the intention of altering the existing property, most tenants do not want to embark on costly renovations to a property that ultimately does not belong to them.

“Before deciding to make any permanent alterations to the rental property it is essential to either check the terms within the lease agreement or to discuss proposed plans with the landlord. If the planned renovations will make the house more valuable in the future, the owner may encourage the remodelling. Should the landlord oppose the renovation plans, tenants need to accept the property for what it is and save their renovation plans for when the time comes to purchase their own property,” states Myburgh.

One way to feel at home in your rental home is to give it a fresh coat of paint. After discussing it with your landlord, put your mark on the house by painting the rooms in your favourite shades. Hanging pictures of loved ones and friends from the walls will instantly make the area feel like home.

“Just remember that in many cases, the landlord will want the tenant to leave the house the same way it was found- therefore the walls may need to be restored to their original colour, with any new holes in walls to be filled in and painted over. If the landlord does not give permission to paint the walls, bright décor such as curtains, cushions and rugs can help to brighten up the space,” adds Myburgh.

When living in a rental house, it is the perfect opportunity to invest in some great pieces of furniture, as these will instantly personalise the space and transform the house into an area in which you are comfortable in. Items in the house that can be easily removed, such as light fittings and door handles, can be replaced with ones more tailored to the tenant’s likings and style. “The tenant must however ensure that these items are refitted when the time comes to leave the property,” says Myburgh.

He continues, “If the alterations being made to the rental home are well planned, tasteful and professionally carried out, when it comes time to vacate the property there will be a minimal amount of repair work required and you will not risk losing your deposit”.

According to Richard Gray, CEO of Harcourts Real Estate South Africa, “Understanding the market as it is at present should play an important role when determining the value of the offer that will be presented to the seller. Establishing whether it is a buyer’s or a seller’s market is key.”

He continues, “Buyer’s need to remember that in a buyer’s market, sellers will be more open to offers as there are fewer buyers and therefore less competition, and sellers may be more willing to accept low offers rather than miss the opportunity for a sale. In a seller’s market, the buyer may not be able to get away with an offer that is below the asking price as the seller may have already received a number of offers and will settle with the one that is the most attractive and lucrative.”

It is always a good idea to find out exactly why the seller wants to sell the property. Should the reasons for the sale be as a result of negative qualities or aspects of the property, this could influence the offer that is put forward. It may not be easy to find out this information as the listing agent and seller may not want to disclose the reasons behind the sale.

It is also important to find out the home’s history and for how long it has been on the market. If a home has been on the market for a lengthy period, the seller may be willing to accept a low offer. In some cases, a listing may expire and then be resubmitted. Therefore, it would be in your best interest to check if it has expired and been re-listed before putting in an offer.

When a property has been owned for a long period of time, the price that the seller originally paid for it is of little significance to the potential buyer. However, if the property has been purchased in recent years, the offer that is put forward to the seller could be relatively close to the original purchase price, therefore it is recommend that the buyer makes enquiries into the price. Although the price may be of similar value, it would need to take into account appreciation value and any remodeling improvements since the time of purchase in order for the offer to be of the appropriate value.
“Remember to do your homework. Compare the recent sales of property that are in the same area as the desired property, have the same configuration and are of similar size in order to get an idea of the average price range that they were purchased for before putting in an offer” advises Gray.

Gray concludes, “Ask your agent for a current trend report and compare the prices that homes were listed verse the prices that that were actually sold. If the majority of the listings are selling below their listed price, it may be a strong indication that the seller will accept a lower offer than the initial asking price. It is all about accurately judging the situation and making an informed offer that the seller will not be able to refuse.”

According to Jan Myburgh, General Manager of Harcourts Real Estate South Africa, “An important factor that determines price is the demographic change within a neighbourhood, be it negative or positive. All areas experience transformation, either in the form of growth or decay and these circumstances will severely affect the value of a property when it comes time to sell.” Extreme examples of these are suburbs such as Hillbrow and surrounds.

In circumstances where the demand for property far exceeds the amount that is available in the market place, the price of homes and rentals usually increases as people are willing to purchase at a higher price rather than risk no purchase at all. The strong demand for property leads to the building of more housing developments and accelerated growth in supply of property, such as South Africa had from 2005 to 2008. However, this often results in a surplus of housing which causes the reverse effect in the market, especially when the market is affected by unavailability of loans, high debt levels and unemployment like SA had for the past 3 years.

“In the current market, this reverse scenario is in effect with the supply of property surpassing the demand for it. Unfortunately with such steep growth and frenzied buying driving prices sky-high, most sellers who are now trying to off-load in the current market cannot realise the same price that they paid for their properties if they purchased in the period between 2007 till now. This “buyer’s market” offers great opportunities for potential buyers” states Myburgh.

Houses within a neighbourhood that all conform with each other as they are of a similar size and style with the same number of rooms, etc- will all fall within a similar price bracket and the maximum value for these properties will be obtained. However, the values of properties that do not conform within the parameters of the houses in the areas surround them may be affected by the principles of progression and regression.

The term “Principle of Regression” is used to refer to property of high value that due to its location within an area of lower valued properties is negatively affected and may suffer as its true value is not perceived. Similarly, the “Principle of Progression” refers to the increase in value of lower-valued properties which are in close proximity to houses of higher value. In short it means that the properties around you have a negative or a positive effect on the value/price on your property.

Myburgh concludes, “It’s all about location, location, location! It is best to buy the worst house in a good neighbourhood at a higher price than the best house in a bad neighbour at a lower price. You have to think about the future of your investment and make the decision that will be best for you as a home-owner in the long-run.”

According to Richard Gray, CEO of Harcourts Real Estate South Africa, “It is so important for those individuals facing financial pressures to know the options that are available to them. Harcourts works in partnership with a number of banks which aim to assist such individuals and lead them out of debt.”

Reaching the stage where an involuntary sale or sale of execution is mandatory can be devastating. It involves a legal process by which the Court grants the bank authorisation to sell their client’s property in order to recover money that is in arrears. In this process, the owner will not only lose their home, but their name will be listed with the credit bureau for many years. This will severely affects their credit rating and will most definitely create problems with all future financing of home loans, cars, the approval of credit cards and the opening of accounts. It could also affect their eligibility for employment and the renting of property.

Instead of waiting until it is too late, a property owner can rather choose a voluntary sales option which will see a bank and selected real estate agents extending their professional help to the property owner. There are a number of benefits that banks offer to distressed clients, some include: discounted commission from estate agents, discounts of existing loan balances should the sale of the property not cover the debt, and 0% interest on shortfall repayments and extended repayment periods. “Essentially, when a home-owner is going through a difficult time, this really should be the only option,” says Gray.

In many cases, distressed sales also offer potential buyers the opportunity to benefit in the purchase of the property. Some banks offer buyers up to 100% bonds on all distressed sale properties, as well as discounts off transfer costs and registration fees. These benefits, combined with a generally lower asking price are able to attract buyers and lead to the successful sale of the property – a win win situation for both buyer and seller.

The steps involved in the selling process are relatively simple but demand the proactive involvement of the bank, property owner and real estate agent. Harcourts, being a national Real Estate company has a service level agreement with the four major banks to help sellers market and sell their properties on the banks’ assistance programs. . The assigned estate agent will use all their resources to market and advertise the property in print and online mediums, as well as organise show houses and private viewings in the attempt to sell the property before the mandate expires.

“Harcourts, working together with banks and property owners, offers the best possible service and promise to do everything in our power to sell the property at the highest possible price in the shortest time-frame, ultimately positioning the property owner on the path towards a debt-free future,” concludes Gray.

There are a number of laws within South Africa that govern rental agreements, including the Rental Housing Act (Act 50 of 1999), Laws of Contract, common law, Consumer Protection Act (CPA) and the Constitution. However evicting such tenants is not a simple process, and there are certain do’s and don’ts dictated by law that all landlords should be aware of in order to follow the correct procedure and have their tenants removed from the property for good.

According to Jan Myburgh, General Manager of Harcourts Real Estate South Africa, “When a tenant does not pay rent on time, although they are in breach of their contract and a landlord has the right to terminate the contract, this does not necessarily mean that the tenant will vacate the property or that the landlord could just put pressure on them to leave”

The most important thing for landlords to remember is that they cannot evict a tenant themselves. As much as most landlords would love to personally be involved in evicting their troublesome tenant, this is not the correct route. When a tenant is in breach of the contract, landlords should first ensure that the tenant is served the notice to rectify the breach as stipulated in the lease agreement. If, or when nothing is done to rectify the shortcoming, a landlord can terminate the lease agreement and start the legal process to evict the tenant if they are not leaving on their own. The eviction could only be done by a court order, which may take up to 3 months to be effected. Legal fees will have to be paid to the attorney upfront, but these fees should later be reimbursed to the landlord by the tenant, as well as the outstanding rent money.

Although a landlord may feel that they have the right to keep a tenant from entering their property by changing the locks to the property, this is an illegal eviction and the landlord will find themselves in hot water with the law if they perform this act. As in standard circumstances, should any locks on the property be changed, landlords are obliged to supply tenants with the new set of keys.

“As angry as landlords may be towards their tenant and seek to reclaim unpaid rent money, they are not allowed to – under any circumstances- enter the property without notifying the tenant, or take the tenant’s possessions within the property as a means of compensation for rent money that is in arrears,” explains Myburgh. Landlords in the past have had criminal charges laid against them by tenants. A court order needs to first be obtained before actions relating to the tenant’s possessions can occur.

Rental Risk cover could be utilised in order to protect the owner’s investment. Having this form of insurance will give a landlord peace of mind knowing that risk of cost due to damage of property can be minimised as well as rental payments and legal costs could be covered. Harcourts Real Estate property management divisions does offer such products as part of their management services.

“In the past two years we have experienced phenomenal growth, which is especially significant at a time when many real estate groupings are shrinking, and the industry as a whole has declined quite considerably,” explains Richard Gray, CEO of Harcourts.

Whereas the residential property industry reported a growth of only 5% year-on-year in 2011 compared to 25% in 2010, Harcourts has experienced a year-on year growth of 27% in 2011 and 45% in 2010. “Furthermore, Harcourts’ aggregate sales growth in the last 2 years is a staggering 87%,” confirmed Gray.

The value of residential transactions nationally increased from R151 billion in 2010 to R158 billion in 2011, which represented an increase of 7000 property deals in 2011 from the 217000 deals in 2010.

“Across the board the strong recovery in 2010, which followed a low point in 2009, tapered off in 2011 for the industry and as a result both house price growth and volume declined significantly in 2011. It is extremely encouraging to see that despite this, Harcourts still experienced extremely positive growth,” says Gray.

Contributing to its overall growth, in 2010 and 2011 Harcourts increased its number of offices by 45% and the number of qualified Harcourts agents by 20%, ultimately enhancing its national footprint.

Gray attributes the extraordinary growth of Harcourts to the fact they offer a leading value proposition in all aspects of real estate. “Many independent agents have found it tough to keep up-to-date with the increasing demands of the industry especially in terms of technology and training. We provide internationally recognised technology systems that are built by Harcourts International and used by Harcourts in Australia, New Zealand, China and the USA. In addition to this we facilitate training courses to both new and experienced agents through the accredited Harcourts Training Academy,” says Gray.

Harcourts is a national franchise of real estate agencies specialising in the sale and rental of residential, commercial and rural properties. As a result of its steady growth over the last two years, Harcourts is now regarded as one of the top estate agencies in the country. Harcourts is also a member of Leading Real Estate Companies of the World® which forms the world’s largest Real Estate network with over 5,500 offices and 160,000 sales consultants operating in over 25 countries.

“We look forward to our continued growth and success in 2012,” ends Gray

Regarded as the most successful and fastest growing real estate brand in Australasia, the Foundation was launched in 2008 by Mike Green (Managing Director of Harcourts International Ltd) with great hopes that the company, which was so fortunate, could make a difference to others in need of a helping hand. Soon after, The Harcourts Foundation was established within Australia and New Zealand with great success, already having risen over $ 1 million dollars (AUD).

It is the company’s aim to assist the many communities in which they conduct business. It is Harcourts intention for money that is raised in a particular area to directly lead to the enhancement of people’s lives within that area. Supporting reputable organisations, the Foundation will donate the raised money to specific establishments who are able to provide aid to a large number of people in need.

“We are truly appreciative to be in a position where we are able to make a positive difference in the lives of those who may need a helping hand. With the continually financial support from The Harcourts Foundation, we hope to grow and enrich our local communities,” states Richard Gray, CEO of Harcourts South Africa.

He continues, “We are also proud to note that 100% of the money raised for The Harcourts Foundation will be donated back to the community, as Harcourts Real Estate is funding all the Foundation’s running costs.”

The Harcourts team are devoted to voluntary fundraising efforts, with the inclusion of ‘per sale’ contributions. The distribution of grants will be given to successful applicants on a quarterly basis.

As a recipient of funds from The Harcourts Foundation, specific criteria need to be met. By completing an official application form available at any Harcourts office or on The Harcourts Foundation website, potential beneficiaries can be identified.

“Due to our immense coverage, with Harcourts Offices located throughout South Africa, we plan to touch the lives and improve the situation of many through this generous initiative, as well as further contributing to the legacy that is Harcourts,” concludes Gray.

To visit “The Harcourts Foundation” website: www.harcourtsfoundation.org

According to Jan Myburgh, General Manager of Harcourts Real Estate South Africa,
“Moving houses is far more complex than simply packing your possessions into boxes and sending them to the new property. A useful tip to those planning on moving in the future is to work from a ‘Moving Checklist’. A methodical weekly checklist will help to establish everything that needs to be done before the big day arrives. ”

Examples of important tasks that should be done well in advance are things such as the organising of removal vans. It is best to receive quotes from a number of companies as each offer different terms of service. A month before moving, all relevant companies should be notified of your change of address to allow them necessary time to update their records. This list would include the bank, insurance companies, tax departments, credit card providers and shops where accounts are held. It is also never too early to begin collecting boxes to pack belongings in. A great place to find such boxes at no cost is to ask your local supermarket to give you their discarded ones.

In the final weeks before the move remember to cancel services to the old residence after the moving date; these services would include water, electricity, telephone, DSTV, internet, with mail and newspapers to be forwarded to the new address. The arrangement of these services must then be organised at the new residence. At this time start packing items that will not be needed for the next few couple of weeks, take down curtains or blinds and do any small maintenance jobs or cleaning before time runs out.

The week before the move, confirm dates, time and location with the removal company, as well as moving-in times with the previous owners of the new home. At this stage the majority of belongings should be packed, leaving only the necessary everyday items untouched. It is also suggested that pets are not around on the day of the move so arrangements as to where they will go should be made.

“The day before a move is probably the most stressful as most people feel that there is too much left to do with far too little time to do it. To avoid chaos at a later stage, make sure that all boxes are correctly labelled with the room they are to be moved to. Also pack a box with the most essential items within and label it as such. This box will be useful when you initially arrive and should contain items such the kettle, mugs, coffee, snacks, clean towels, toilet paper, etc,” states Myburgh.

Individuals should pack a bag containing personal luggage which should consist of a few sets of clothing, toiletries, valuable jewellery and most importantly all personal documents. It would be a disaster to misplace those in the confusion of the move.

Myburgh concludes, “ In those last moments before leaving the house do one last look around the house to ensure that nothing has been left behind, make sure that the water and electricity is off, with all windows and doors securely latched. Remember to leave a note for the new owners with your new address should any mail arrive in your absence. Lastly, hand over your old home’s keys to your estate agent and depart to make happy memories else where.”

According to Jan Myburgh, General Manager of Harcourts South Africa, “Our agency has some simple presentation tips that we feel are beneficial to share with clients when putting their homes on the market. By following these useful guidelines it will ensure that their home is presented to its best advantage, which will ultimately lead to its successful sale.”

As the exterior is the first contact that the potential buyer will have with the home, this area needs to be clean and orderly, with all clutter- such as bikes, tools and rubbish – removed. If the property has a garden, ensure that the lawns are freshly mowed, hedges trimmed, garden weeded, etc. Painting or washing the exterior walls, fences, gates and windows is an easy way to breathe new life into a home; with well-placed potted plants and flowers used to welcome these potential buyers into the space.

“Although a home owner may consider their animals as a part of the family, it is highly likely that those coming to view the property do not want muddy paw prints staining their clothes or feelings of fear due to a snarling dog, therefore it is advised that animals are secured in an area well away from these important guests,” states Myburgh.

He continues, “It is important for the home to appeal to potential buyers’ senses. A spring clean, especially to bathrooms, and the use of odour neutralisers to eliminate any cigarette or animal smells will refresh the look and smell of the house. Instead welcome them into the home with the smell of freshly brewed coffee or muffins, creating that comforting feeling of home.”

Fresh flowers, scented potpourri and ample lighting all aid in creating the positive impression that is desired. Displaying interesting objects, such as artwork or books, and establishing a temperature that is favourable within the home will encourage the visitors to remain at the property for longer.

Create a feeling of spaciousness by ensuring that all areas within the home are uncluttered and well organised, including cupboards and wardrobes. Excess furniture and other items that are crammed into rooms can be put into temporary storage during this time. This will make the space appear larger than it may in fact be. Well-placed mirrors in smaller rooms are a clever technique to use to create the impression of a larger room

Although the above is valuable advice, the most important aspect of all is ensuring that all maintenance of the property is up-to-date; this includes the repairing of sticking windows or doors, dripping taps, loose door handles, blown light bulbs and faulty switches. These faults can often be overlooked by the home owners but they will not go unnoticed by potential buyers, and a buyer will be less inclined to purchase a home that is in need of basic repair.

Myburgh concludes, “One needs to remember that it is comparison that potential buyers rely on when looking at prospective properties. As these buyers will be evaluating properties that generally match the same criteria, it is often the property that comes across as the most inviting and hassle-free that secures the sale, and your property may need the assistance of a professional to achieve this.”

Glancing over property trends from the past twenty years, it has been filled with fluctuations- increases in price have been followed by decreased prices, and visa versa. At present, the global recession has resulted in people having less disposable income which has affected investment opportunities. The introduction of the National Credit Act (NCA) has also made it significantly harder for people to be granted bonds.

Current trends in the market reflect that the percentage of buy-to-let buying is at an unyielding low, closely mimicking those patterns in the previous two quarters. This trend is expected to continue as buy-to-let investors wait for capital growth prospects to increase. Those in the market are above all buying homes for primary residential purposes, and with the market as it is at present, there is the opportunity for these potential home owners to negotiate great deals on property.

According to Richard Gray, CEO of Harcourts South Africa, “Due to current circumstances, South Africa finds itself in a buyer’s market due to an increase in property stock, with the supply having overtaken the demand for property. As the price of property decreases and one is lucky to be granted a home loan, it is the ideal opportunity to purchase one’s dream property at a significantly lower cost than in the past.”

As with all investments, the purchase of real estate involves rewards and risks, therefore it needs to be approached with the utmost caution and careful consideration. With that being said, real estate is generally a safe investment as the likelihood of losing money is usually low.

When evaluating growth in value of a property in Durban North over the last 25 years- during which time the economy has both boomed and gone through recessions- it reflected dramatic inflation with the value doubling 3.25 times in the first 12 years and has steadily increased over the years. This reiterates the fact that although prices will fluctuate over time as a result of external economic conditions, they will increase in the long term and therefore purchasing property will always offer a solid investment.

The month of October revealed that house price growth has once again slowed, after a brief inflation earlier in the year, prices have continued to decline. With that being said, Gray concludes, “In the long run property is always a good investment – it is definitely an asset as prices are bound to be driven up again in the future. People need to remember that buying property is still one of the best decisions they will ever make.”