Landlords: Select tenants carefully
With South Africans feeling the effects of on-going near-recessionary economic conditions, landlords have to be extra careful in selecting tenants.
According to Ian Teague of Gunston Attorneys, this year has seen a rise in the number of cases dealing with defaulting tenants and in instances where the landlord has had to go ahead with an eviction.
Buy-to-let investing in property is becoming popular, but Gunston Attorneys will testify that they regularly come across instances where the landlord has limited legal knowledge and has done far too little investigation into the rules governing property leasing.
It has been found that landlords in most cases would have done very little checking of the potential tenant’s credit, previous leasing and employment records.
“It is perfectly understandable that people who have proved successful in other spheres should feel that they can handle a simple lease arrangement on their own,” says Teague.
Real estate opportunities in Africa
Africa’s collective GDP in 2020 is expected to reach $2.6 trillion, with $1.4 trillion in consumer spending and 128 million African households that have discretionary income.
This is according to a report entitled: Lions on the Move – The progress and potential of African economies by McKinsey Global Institute.
The report reveals that Africa’s future growth will be supported by external trends such as the global race for commodities, Africa’s increased access to international capital and its ability to forge new types of economic partnerships with foreign investors.
Furthermore, the long-term growth of Africa’s economy will be lifted by internal social and demographic trends, particularly Africa’s growing labour force and the related rise of the middle class consumers.
McKinsey notes that for companies, the report analysis suggests that four groups of industries together will be worth $2.6 trillion in annual revenue by 2020.
Good housing improves occupants' lives
More than 50 percent of South African households report an improvement in access to education and employment from the property they live in.
This is according to a report conducted by University of Cape Town associate professor Francois Viruly and his team.
The report audited the social and economic impact of affordable housing developments commissioned by International Housing Solutions (IHS), a global private equity investor, which has financed projects to a combined total value of more than R7.8 billion.
IHS recently completed an upmarket affordable residential development in the suburb of Jabulani in Soweto, Gauteng.
Read the article here.
Viruly says the research was undertaken to determine the indirect benefits derived from living in integrated affordable housing developments and the job creation impact of such developments.
He explains that the research surveyed residents occupying IHS developments in Johannesburg including Fleurhof and Protea Glen in Soweto, Jukskei View in Midrand, Greatermans in the Johannesburg CBD, Aengus in Johannesburg and Stellendale Village in Kuilsriver in the Western Cape.
Tips for property pre-winter checks
Every year around this time, winter can come as a shock to many homeowners, especially those who have moved into newly purchased homes.
This is according Lanice Steward, Managing Director of Cape-based Anne Porter Knight Frank, who says many clients report that leaks, draughts, rising damp and other cold weather problems suddenly become apparent and troublesome.
She says all homeowners should be checking their windows for decaying putty or other sealants and inspecting their roofs for loose tiles, especially if workmen have been on the roof in recent months.
She advises cleaning out gutters (if necessary with a high pressure hose) so as to dislodge hard mud deposits and ensure rainwater is channelled into the downpipes and does not get dammed up and run onto the fascia boards – where, after a few weeks of rain, it can cause serious damage to the woodwork .
Holiday homes close to the city
Holiday home buying trends in South Africa have switched from once-a-year coastal holiday houses to accessible second homes that can be used more regularly.
With this evolution has come greater demand for second homes within a radius of 300km of South Africa’s major metropolitan areas or of individuals’ primary residence.
According to Century Property Developments, the country’s largest residential developer with R1 billion sales in 2011, the result has been “exponential” growth in demand for such holiday homes.
This runs contrary to recent media articles suggesting the economic climate had resulted in stagnant demand, but chief executive officer Mark Corbett says those analyses have ignored the changing trends of holiday home ownership.
“There has been a strong trend away from second homes that can only be used once a year, during the Christmas holidays, towards homes that can be used by the family on a weekly or monthly basis, or even shared between families.
5 key projects for Dbn-Jhb corridor
Durban and Gauteng as well as the transport corridor between these two key logistics centres will be alive with work, as five key projects get under way in the next five years, the Minister of Transport Sibusiso Ndebele says.
Presenting his Budget Vote speech in Parliament last week, Ndebele announced five key transport projects which would be undertaken in the next five years in the Durban-Johannesburg corridor.
Ports, roads, rail – including high speed rail, logistic hubs and land-use plans - would all be developed.
Ndebele said the focus would be on sharpening up freight logistics to ensure economic growth as South Africa played an important role in the shipping of goods in and out of Southern Africa.
The projects in the Durban-Johannesburg corridor include:
- the development of Cato Ridge as a dry port
- the sale of the Durban International Airport to Transnet for setting up a dug out port
- the extension of commuter rail to reach Pietermaritzburg
- the development of Harrismith as a logistics hub
- the setting up of several logistics hubs in Gauteng