Positive indicators for SA's property market in 2016
Following a year which saw South Africa’s housing market rise to the challenge amid tough economic conditions, a number of positives stand out according to Dr Andrew Golding, chief executive of the Pam Golding Property group, who says despite a slight slowing of sales volumes across the market in total, growth in house prices continues to outstrip inflation, reflecting the continued strong demand for homes to rent and to buy - which exceeds supply, especially in the major metropolitan areas of the country.
According to the Pam Golding Residential Property Index, although national house price inflation eased to 5.3% in October 2015, which is less than 1% below the September or October 2014 peak, the lower price band below R1 million is still outperforming the national average at a notable 8.9% in October, or 7.45% for the year to date.
10 Wealth-building myths busted
There are ten common financial fallacies that keep ordinary salary-earning South Africans from building real wealth according to Gert van Staden, CEO of the P3 Investment Group, who says South Africans should not be hindered by these going into 2016. Van Staden explains the ten fallacies in the way creating and building wealth:
1. Investing is complex
Some of the most effective and efficient ways of investing your hard-earned money are also the simplest. For example, there is nothing complex about buy-to-let property investment: acquire a property and rent it out to a tenant.
This creates an immediate, ongoing and inflation-linked income stream, as well as ongoing capital appreciation. Your money is not invested 'somewhere' in a complex investment vehicle, but in brick-and-mortar, where you can see and touch it.
Consumers and retailers face difficult Festive Season
Like the year so far, the 2015 festive season is set to be tough and highly competitive for retailers.
So says Marius Muller, CEO Pareto Limited, the country’s premier shopping centre investor and a leading retail property player with landmark assets across South Africa. Commenting on the outlook for 2015 festive season sales, Muller says holiday sales are likely to be flat and hard-pressed to beat inflation. Consumers are really feeling the pinch and there is massive pressure on their disposable income, he says.
The financial stress felt by consumers and retailers alike stems from South Africa’s weak economy. “I have great concerns about the state of the economy. Perhaps even more worrying is the lack of firm macro-economic plans to get the economy going,” he says.
5 Tips for designing the ultimate bachelor pad
A bachelor pad is the one place where you’re free to do whatever you want and decorate however you please. However, with such freedom comes great responsibility as you don’t want to live in a décor nightmare either.
So, to prevent this from happening, Karen Marsden, owner of Karen Marsden Interiors, shares tips on how to create a stylish and sleek bachelor pad.
1. Cater for your needs
Everyone has different needs, and different spaces have different requirements. Karen says if you live alone, music is great company. She recommends a great music system and a good coffee machine (for those coffee lovers). And when it comes to choosing furniture, keep it uncluttered, modern and easy to maintain.
Not all home renovations add value
Renovating or building onto a home can add value and give the seller an advantage over other sellers in a particular area.
“However, it is important to remember that while renovations can add value, there are several factors that should be considered before undertaking any renovation project,” says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa.
He says whether a homeowner purchased the property with the intention of renovating it or the decision was made as a result of the home no longer fitting the owner’s needs, renovations or additions to the home need to be considered carefully and approached in the correct manner.
Who pays for what during a property transaction?
Both sellers and buyers have certain responsibilities and obligations that they need to address during a property transaction before the property can change ownership.
This is according to Jose De Abreu, Broker/Owner of RE/MAX Property Associates and Founder and Managing Partner of De Abreu & Cohen Inc., conveyancing attorneys, who says it is for this reason that both parties need to prepare financially before either selling or buying a home.
De Abreu discusses some of the costs involved in a property transaction and who is responsible for each of these: