New stats reveal SA property’s ‘hidden’ strength and resilience
The latest statistics from national bond originator BetterBond provide the strongest indicator yet that the residential real estate market is in much better shape than most people think - and that the impetus is coming from the ‘affordable’ sector.
It may be more difficult to achieve home sales and prices may not be rising as fast as one would like, but the fact is that both the number and the value of transactions were up in all the major centres we monitor during the six months to end-September when compared to the same period of 2017,” says BetterBond CEO Rudi Botha.
“And while an increase in value could just be attributed to higher home prices, the increase in the number of transactions confirms continued growth in the appetite for homeownership among SA consumers, which is very encouraging indeed considering the VAT, fuel price and municipal tariff hikes they have had to deal with in the past 12 months.”
Best property types for South Africans investing in the UK
Rental yield is an important factor when considering what type of property investment to make. It determines how much you’ll earn from a rental property compared to the property’s cost. If you’re looking to make money from your investment in the short- to mid-term, rental yield may well be your focus.
Craig Illman from Propwealth, a UK based property investment business, highlights the pros and cons of the various property types in which South Africans are now investing in the United Kingdom.
Upgraded Victorian and Edwardian flats
“The easiest way to enter the market is by investing in one and two bed flats which are in established, regenerating, neighbourhoods and that have been totally upgraded,” Illman says. “Currently we are investing ourselves in Liverpool, in middle class, blue-collar areas, where tenants cannot afford to buy homes and therefore the tenant base is massive.”
What to do when your neighbour’s home is devaluing your property
Much like how that one scuffed dining room chair will lower the value of the whole set, one unkept property will drag down the prices of all the surrounding homes.
Regional Director and CEO of RE/MAX of Southern Africa, Adrian Goslett, warns that as thorough as you might have been in your suburb research before buying your current home, living next to a negligent neighbour can happen to anyone at any point in time.
“Nobody can predict the future. All it takes is for your current neighbours to fall into some financial crisis that causes their home to go to wrack and ruin, or to relocate and have a real-world version of ‘The Addam’s Family’ move in next door. The unfortunate reality is that homeowners do not have many options available to them if ever they find themselves in this situation,” Goslett explains.
Are ‘For Sale’ signs still relevant when marketing a property?
It’s always been standard practice that when you put your home on the market, a 'For Sale' sign goes up on your kerb or wall, but, with over 80% of buyers now starting their searches online, many sellers are questioning the effectiveness of this traditional marketing tool.
Back in the day, this was one of only two real marketing methods available to agents, the other being placing advertisements in newspapers. However, since the advent of the digital age, all it takes is a few mouse clicks for buyers to find all the available properties in their preferred areas, as well as filter their searches to exclude property types and features that don’t suit their needs.
So, do for sale signs actually help boost home sales, or are they simply a longstanding tradition we continue to uphold?