The information in the article is with courtesy of Property24 and Janice Anderssen (“Improve and Coin!” – 27 October 2008)
Janice Anderssen, home décor and DIY expert, believes that you can quickly up the value of your house by improving wisely. She also warns that improvement projects should be chosen carefully and one needs to identify which improvements would increase your resale value as well as your day-to-day comfort.
Here are some tips for home improvements that will increase the value of your investment:
§ Kitchens that are improved with modern appliances, countertops and cabinets are almost certain to give you return on your investment.
§ Updating an existing bathroom or adding a new one will increase the value of your home. Add fixtures, vanities, ceramic or marble tiles and a new coat of paint and you are sure to benefit.
§ You can recover around 85% of you cost in added value when you make improvements like decks or patio in the garden.
§ Converting unused space into a bedroom is a great way to add value to your home.
§ Painting in and around the house maintains the beauty and value of your home.
Buy property for sale in South Africa's Overberg
Tuesday, October 28, 2008
Monday, October 20, 2008
Is this the light at the end of the tunnel?
The end of the slump in the property market might be coming to an end according to some estate agents. This follows a sudden up-tick in show home visitors and buying interest since mid-August.
Samuel Seeff, chairman of Seeff Properties, shares this optimism, saying that the SA Reserve Bank’s decision to keep the interest rate on hold might be what triggered the improved sentiment.
Others say that there is no hope of a quick recovery with the high interest rates in place. Data released by Standard Bank shows that house price growth remains in negative territory with median prices down for the 6th consecutive month.
John Botha, Standard Bank’s economist, believes that disposable income and interest rates should turn the corner before thing will start looking up. He expects that to be well into next year.
Absa Home Loans senior also thinks that the residential property market might recover late next year when financial pressure has been taken off households.
The number of residential properties up for auction is also an indicator that the slump is far from over. Rael Levitt, chief executive of Alliance Group, stated that they will put 123 residential properties up for auction this month alone as oppose to last September’s 12.
This article is courtesy of Joan Muller (“Don’t get too excited yet” ,Property24, 20 October 2008).
Buy or sell property in the Overberg
Samuel Seeff, chairman of Seeff Properties, shares this optimism, saying that the SA Reserve Bank’s decision to keep the interest rate on hold might be what triggered the improved sentiment.
Others say that there is no hope of a quick recovery with the high interest rates in place. Data released by Standard Bank shows that house price growth remains in negative territory with median prices down for the 6th consecutive month.
John Botha, Standard Bank’s economist, believes that disposable income and interest rates should turn the corner before thing will start looking up. He expects that to be well into next year.
Absa Home Loans senior also thinks that the residential property market might recover late next year when financial pressure has been taken off households.
The number of residential properties up for auction is also an indicator that the slump is far from over. Rael Levitt, chief executive of Alliance Group, stated that they will put 123 residential properties up for auction this month alone as oppose to last September’s 12.
This article is courtesy of Joan Muller (“Don’t get too excited yet” ,Property24, 20 October 2008).
Buy or sell property in the Overberg
Tuesday, October 14, 2008
Overberg Haven Booms
More and more Capetonians are finding their own piece of paradise in Tesselaarsdal, a tiny village in the picturesque Hemel en Aarde valley of the Overberg – and they are greatly rewarded for doing so.
According to Riaan Smuts of the RealNet Office, most of the properties in Tesselaarsdal are still showing promising growth of between 50 and 100 percent after the recent boom.
He explained that these increases in value come off a low base, which probably explain the fact that some pieces of land have increased tenfold in the past three of four years.
This peaceful hamlet, located 20km from the beautiful town of Caledon, was established when a farmer gave his freed slaves parcels of land. The descendants of the original owners sold their properties when prices started climbing as a result of the recent boom in the real estate market.
Here you can still pick up a cottage in need of repair, and situated on about 1000m² for around R200 000. Smallholdings in the area go for less than R500 000 while undeveloped 20-hectare units cost around R1-million.
Although the climate is suitable for growing lavender and olives, most of the buyers see their investment as a holiday or weekend getaway.
But how long will this local boom last? Smuts said that the prices would probably reach a ceiling in the next three to five years after which properties will be in step with the national property cycle.
The information in this article is courtesy of Riaan Smuts (“Overberg Hamlet Booms”, iafrica.com, 16 September 2008).
Find property for sale in the Overberg
According to Riaan Smuts of the RealNet Office, most of the properties in Tesselaarsdal are still showing promising growth of between 50 and 100 percent after the recent boom.
He explained that these increases in value come off a low base, which probably explain the fact that some pieces of land have increased tenfold in the past three of four years.
This peaceful hamlet, located 20km from the beautiful town of Caledon, was established when a farmer gave his freed slaves parcels of land. The descendants of the original owners sold their properties when prices started climbing as a result of the recent boom in the real estate market.
Here you can still pick up a cottage in need of repair, and situated on about 1000m² for around R200 000. Smallholdings in the area go for less than R500 000 while undeveloped 20-hectare units cost around R1-million.
Although the climate is suitable for growing lavender and olives, most of the buyers see their investment as a holiday or weekend getaway.
But how long will this local boom last? Smuts said that the prices would probably reach a ceiling in the next three to five years after which properties will be in step with the national property cycle.
The information in this article is courtesy of Riaan Smuts (“Overberg Hamlet Booms”, iafrica.com, 16 September 2008).
Find property for sale in the Overberg
Wednesday, October 8, 2008
Bottom of the Cycle Yet?
The information in this article is courtesy of Bill Rawson (“Cape property down 20% off 2007 peak – real estate veteran”, Realestateweb, 7 October 2008).
Real estate veteran Bill Rawson says that while house prices are down, national sales are up dramatically, which suggests that we have reached the bottom of the cycle. Perhaps the most common mistake made by sellers in the current market is to insist on an asking price that is no longer acceptable.
While property prices in the Cape continue to perform better than most other provinces in South Africa, they are still 20% off their peak in 2007. Often when sellers find that the offers they have been receiving reflect this then they enter a state of denial, blame the agent, the advertising or any other factor and refuse to drop below the original asking price.
This tends to leave the property on the market for six to twelve months, after which it is probably below market value due to a certain stigma that it may have picked up. Buyers are generally suspicious of homes that have been on the market for so long, assuming that there is some hidden fault that prevents them from selling.
The right time to drop your asking price is the moment you realize that the price is not going to be accepted. Once you do this, it is highly likely that some of the original potential buyers will regain interest in the property. While it can be emotionally upsetting for a seller to reduce the price on a home when he or she has spent time and money lavishing it with care, buyers are in the best position that they have been for nine years, so it is really no use trying to buck the trend – it almost never works.
The total number of homes on the market has fallen by 20% and the time taken to sell a property is now between twelve and fifteen weeks, which is nearly twice as long as in 2007. Rawson also doesn’t see the situation changing any time soon, although the Reserve Bank’s decision not to raise interest rates seems to have stabilized the market somewhat and probably signals the end of the downturn.
The veteran goes on to say that now is a great time to buy, despite the difficulties in obtaining bond finance. Property is still a top line investment and this has never been truer than in today’s tight market conditions. Consumers have grown overly cautious and negative in the current market climate and its time to dispel these reactions.
Rawson Properties, which has just over 140 franchises across the country, has recovered from a low in May/June to record a 250% increase in sales in September. However, Bill Rawson concedes that this trend is by no means universal and that his company is possibly unique in this aspect. Many smaller agencies are still going under and agents are dwindling, with the national figure down to 55 000 from 85 000.
With the latest political developments, interest may well be likely to decline, but there are questions being raised about the direction the new political leadership will take and exactly how ‘fairness to all’ will play out in terms of the dispensation. So far, it seems to have been handled quite well.
An encouraging sign is that South Africans seem to be more accepting of the new price structures in the property market, which often involves scaling down. Rawson has seen an increase in large deposits recently (up to 30% of the sale price), which also reflects that buyers are scaling down.
Rawson adds that, “Ongoing branding and marketing, with an increased emphasis on sophisticated customer related IT systems, ongoing support for franchisees with training, advice and encouragement and upgrading all of the support systems (again, particularly those that are IT related) are the factors that are taking the Rawson group forward”.
Buy or sell property in the Overberg.
Real estate veteran Bill Rawson says that while house prices are down, national sales are up dramatically, which suggests that we have reached the bottom of the cycle. Perhaps the most common mistake made by sellers in the current market is to insist on an asking price that is no longer acceptable.
While property prices in the Cape continue to perform better than most other provinces in South Africa, they are still 20% off their peak in 2007. Often when sellers find that the offers they have been receiving reflect this then they enter a state of denial, blame the agent, the advertising or any other factor and refuse to drop below the original asking price.
This tends to leave the property on the market for six to twelve months, after which it is probably below market value due to a certain stigma that it may have picked up. Buyers are generally suspicious of homes that have been on the market for so long, assuming that there is some hidden fault that prevents them from selling.
The right time to drop your asking price is the moment you realize that the price is not going to be accepted. Once you do this, it is highly likely that some of the original potential buyers will regain interest in the property. While it can be emotionally upsetting for a seller to reduce the price on a home when he or she has spent time and money lavishing it with care, buyers are in the best position that they have been for nine years, so it is really no use trying to buck the trend – it almost never works.
The total number of homes on the market has fallen by 20% and the time taken to sell a property is now between twelve and fifteen weeks, which is nearly twice as long as in 2007. Rawson also doesn’t see the situation changing any time soon, although the Reserve Bank’s decision not to raise interest rates seems to have stabilized the market somewhat and probably signals the end of the downturn.
The veteran goes on to say that now is a great time to buy, despite the difficulties in obtaining bond finance. Property is still a top line investment and this has never been truer than in today’s tight market conditions. Consumers have grown overly cautious and negative in the current market climate and its time to dispel these reactions.
Rawson Properties, which has just over 140 franchises across the country, has recovered from a low in May/June to record a 250% increase in sales in September. However, Bill Rawson concedes that this trend is by no means universal and that his company is possibly unique in this aspect. Many smaller agencies are still going under and agents are dwindling, with the national figure down to 55 000 from 85 000.
With the latest political developments, interest may well be likely to decline, but there are questions being raised about the direction the new political leadership will take and exactly how ‘fairness to all’ will play out in terms of the dispensation. So far, it seems to have been handled quite well.
An encouraging sign is that South Africans seem to be more accepting of the new price structures in the property market, which often involves scaling down. Rawson has seen an increase in large deposits recently (up to 30% of the sale price), which also reflects that buyers are scaling down.
Rawson adds that, “Ongoing branding and marketing, with an increased emphasis on sophisticated customer related IT systems, ongoing support for franchisees with training, advice and encouragement and upgrading all of the support systems (again, particularly those that are IT related) are the factors that are taking the Rawson group forward”.
Buy or sell property in the Overberg.
Thursday, October 2, 2008
Some Good News for House Prices
A recent article published by Reuters discusses South African house prices, indicating an increase of 3.6 percent year-on-year in September. This is the first increase in 10 months, reflecting fresh activity in the ailing market after an extremely difficult year.
Standard Bank’s property gauge released on a monthly basis showed an increase in the median house price at R580 000. The five month moving average is still in negative terrain, but has improved year-on-year to –5.5 percent after several months of steadily falling prices.
After sharp declines in May and June, Standard Bank said that the rate of decline slowed in July and August, but indicated that the property sector would remain under pressure until consumer spending starts to recover from its cooling period.
The bank said in a statement that, “The unexpected 3.6 percent increase in September is not seen as a new trend, but rather the result of volatile monthly data. It is anticipated that the index will once again show low or negative growth in the months to come. Nonetheless, the latest data show that there is some life in the property market”.
Household budgets have taken a beating with the enforcement of stricter lending laws and a series of interest rate increases, which has in turn put the housing sector under strain. The central bank increased the repo lending rate by 5 percentage points to 12 percent between June 2006 and June 2008 in a bid to fight inflation.
This house price increase coincides with a slowing in the upward rates cycle in August and market experts predict that the next move in interest rates will be down sometime in 2009. Slowing household spending is evident in falling retail and new vehicle sales and the bank believes that the sector may not recover until this picks up again and interest rates start falling.
“Residential property will remain in the doldrums until such time that fundamental drivers of the market turn for the better and that may be some time off,” according to Standard Bank.
The information in this article is courtesy of Reuters Africa (“S.Africa house prices up, but problems remain”, 2 October 2008).
Find property in the Overberg.
Standard Bank’s property gauge released on a monthly basis showed an increase in the median house price at R580 000. The five month moving average is still in negative terrain, but has improved year-on-year to –5.5 percent after several months of steadily falling prices.
After sharp declines in May and June, Standard Bank said that the rate of decline slowed in July and August, but indicated that the property sector would remain under pressure until consumer spending starts to recover from its cooling period.
The bank said in a statement that, “The unexpected 3.6 percent increase in September is not seen as a new trend, but rather the result of volatile monthly data. It is anticipated that the index will once again show low or negative growth in the months to come. Nonetheless, the latest data show that there is some life in the property market”.
Household budgets have taken a beating with the enforcement of stricter lending laws and a series of interest rate increases, which has in turn put the housing sector under strain. The central bank increased the repo lending rate by 5 percentage points to 12 percent between June 2006 and June 2008 in a bid to fight inflation.
This house price increase coincides with a slowing in the upward rates cycle in August and market experts predict that the next move in interest rates will be down sometime in 2009. Slowing household spending is evident in falling retail and new vehicle sales and the bank believes that the sector may not recover until this picks up again and interest rates start falling.
“Residential property will remain in the doldrums until such time that fundamental drivers of the market turn for the better and that may be some time off,” according to Standard Bank.
The information in this article is courtesy of Reuters Africa (“S.Africa house prices up, but problems remain”, 2 October 2008).
Find property in the Overberg.
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