Property 24/10 - 49

Real market value of a property?
Determining the true market value of your property or of one you may be interested in buying can seem difficult, but it's made easier when you follow a simple process.

So what's a property actually worth? Consult an experienced estate agent in the area and check the information you receive by getting an online property valuation that provides sold prices for similar properties in the suburb, street or complex.

The best way to increase your chances of a successful sale is to ensure that your property is priced correctly right from the start, says Adrian Goslett, CEO of RE/MAX of Southern Africa.

Typically, homebuyers only look at those properties that are within a price range that they can afford. But, he says, the pricing of property is a tricky business, with a Goldilocks-type familiarity. "If your property is priced too high, expecting that buyers will negotiate with you, you may just miss the boat by not attracting the right kind of buyers to view your property in the first place.
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Fired agency boss takes board to court
The Estate Agency Affairs Board will no longer discuss the firing of its CEO as she is taking them to court, it said on Wednesday.

"Since Mrs Mapetla has, however, launched an urgent application claiming certain relief from the South Gauteng High Court, this matter is now regarded as sub judice," the board said in a statement.

On Tuesday, the board said Nomonde Mapetla's employment contract had been terminated immediately "due to an irreconcilable breakdown in the working relationship between the parties". Mapetla's contract was due to expire on July 15.
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B-BBEE targets for property industry
The recently released Sector Code of Good Practice by the Property Sector Charter (PSC) unveils bold new B-BBEE targets for the industry.

The recently released Sector Code of Good Practice by the Property Sector Charter unveils bold new B-BBEE targets for the industry.

The Charter includes the usual 7 B-BBEE components through which companies can earn points towards their B-BBEE compliance. These include Ownership, Management Control, Employment Equity, Preferential Procurement, Skills Development, Enterprise Development and Socio-Economic Development .
The Property Charter, however, includes some key differences to other sector charters. This is particularly true for the Enterprise Development (ED) component of B-BBEE, whereby the Sector seeks to "invest in, support, facilitate and foster new and existing small and micro enterprises" with a Level 1 - 4 B-BBEE status.
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Foreign property - conditions are ripe
The rand's strength, historically low international property prices and relaxed exchange controls have combined to make this a good time for South African investors to look overseas to diversify their property portfolios.

The rand's strength, historically low international property prices and relaxed exchange controls have combined to make this a good time for South African investors to look overseas.
According to Eric Fisher, director of Stonehage Property Partners in London, there are good opportunities to invest in various classes of property abroad.

"With prices significantly down from their highs and property markets in many countries at an inflection point, foreign property purchases continue to be an effective hedge against currency risks."

Bernie Herberg, a director at Stonehage Financial Services, noted that South African residents may be permitted, on application to the Surveillance Department of the South African Reserve Bank (SARB), to invest in a holiday home or farm in any country that is part of the Southern African Development Community (which includes Angola, Botswana, Congo, Madagascar, Malawi, Mauritius, Mozambique, Seychelles, Tanzania, Zambia and Zimbabwe), or to acquire any other investment property abroad.
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The value of home owners insurance
When you buy a home the bank will request that you take out a comprehensive insurance policy to the value of your home. This home owners insurance covers the replacement cost of builders should anything occur.

If something were to happen to your property, for example the property were to burn down, the bank would want to know that there is insurance to cover such a catastrophe. For this reason, the bank will require that you have Home Owners Comprehensive Insurance at the time you take out a home loan. Even if you have paid off your property, could you afford the replacement building costs should something happen?

What Home Owners Comprehensive Insurance generally covers
In addition to the structure, a Home Owners Comprehensive Insurance policy covers burst geysers and resultant damage should this happen, as well as permanent fixtures and fittings such as baths, toilets and fitted kitchens, bedroom cupboards and interior decorations. The test is - can the fixture reasonably be removed and taken to a new home? If no, then it is covered by Home Owners Comprehensive Insurance. Cover is often extended to include structures such as garages, greenhouses and garden sheds, boundary walls, fences, gates, drives and swimming pools. The policy also provides you with alternative accommodation if your home is uninhabitable due to an unforeseeable insured event occurring.
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Legal checklist for buying property
Buying a house may be the single biggest investment you make. To ensure a non-risky investment be aware of what to look out for before you sign…
Before buying a property, you or your lawyer should do the following:
1. Check that there are no pre-emption rights over the property you're planning to buy and that there are no plans to construct anything (e.g. roads, railway lines, airports, shops, factories) that would adversely affect its value, enjoyment or use. Also, check that you are paying a fair market related price by getting an online property valuation that will give you actual sold prices of similar homes in the suburb, street or complex as well as an indication of the area trend. If you are concerned and wish to confirm the property ownership you can similarly get an indepth property ownership profile.

1. Check that there are no pre-emption rights over the property you're planning to buy and that there are no plans to construct anything that would adversely affect its value or use. Also, check that you are paying a fair market related price by getting an online property valuation that will give you actual sold prices of similar homes as well as an indication of the area trend.

2. Check whether there's a zoning policy in the town or area that may affect the property.
3. Check whether the property is subject to a compulsory purchase order.
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Mixing décor: Old with new
One of the strongest underlying trends that has consistently been gaining momentum over the past decade is the inclusion and influence of old styles on today's modern design ethos. This trend is notable across the board - from fashion design, to the design of motor vehicles, gadgets, architecture and of course in this reference, interior design. Modern designers all over the world are reaching into the past to create the future.

The reason for the resurgent popularity of these older styles is arguably the increase in the appreciation of the standards of quality and luxury that many items from the past are infused with. The saying: "They don't make them like they used to" is the quintessential motto underlying this movement. In the not so distant past, furniture and décor items were constructed with good quality materials and designed to last and offer the maximum comfort and enjoyment possible. In the mass produced society we live in today - these are qualities that modern society aspires to.
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Tenants - leaving before lease ends?
There are times when a tenant may wish to leave a rental property before the lease expires. In this instance the cancellation clause in the lease agreement would need to be referred to.

Where the rental agreement is for a fixed time and there is no cancellation clause, the tenant may not cancel the lease unless the landlord agrees or is in breach of the contract.

Where the agreement is from month to month, then a calendar month's notice would apply in cancelling the lease. But where the rental agreement is for a fixed time and there is no cancellation clause, the tenant may not cancel the lease unless the landlord agrees or is in breach of the contract.

However, when an unsatisfactory tenant absconds having failed to pay a month or two of rent, landlords will often heave a sigh of relief.
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Value in new agent qualifications
Those estate agency principals and agents who have been in residential real estate marketing for some time are finding that many of the facts that they are now expected to know in order to pass the new SSETA/Estate Agency Affairs Board NQF4 and NQF5 examinations are "old hat" - but there is always a fair amount of which they were not aware or of which they need to be reminded, says Lanice Steward, MD of Anne Porter Knight Frank.

"For those with limited experience of, or new to, estate agency work, these qualifications will prove invaluable," said Steward. "There is a large body of information surrounding property and much practical management information which should be assimilated before either a principal or an agent can claim to be truly professional."

Steward, speaking as a committee member of the Western Cape Institute of Estate Agents, said that the recent warning put out by Sandy Walsh, the Instititute's Cape head of training, has to be heeded: Walsh warned that the EAAB would probably not take a lenient view of, or grant extensions easily to, those who have had the time to study but who fail to qualify by the end of the 2011 deadline.
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