Web Bytes

Web Bytes - 572

Avoid improving your property beyond its realistic resale value
IolProperty - South Africa
Home owners planning on renovating and extending their properties today face a greater risk of overcapitalisation than ever before according to Ronald Ennik of Ennik Estates an affiliate in Gauteng of Christie's International Real Estate. "The reasons for this are twofold.

"First, there has been an unprecedented rapid pace of change in automation technology, style and design in recent years.

"So much so, that the shelf life of new fixtures and fittings has never been shorter.

"In the past, if you overcapitalised on a house, you generally wouldn't wait more than five years for value to catch up. Furthermore, it took up to 10 years before homes began to become technologically outmoded.

"Nowadays, however, it can take just two years for contemporary technology features and design elements to lose their appeal to buyers," says Ennik.

Shedding light on sole mandate queries
Harcourts - South Africa
Sole Mandates remain a contentious subject for sellers. Many feel it is a sales ploy concocted by the estate agent and are usually concerned that by limiting their home to only one agent that it might affect their desired results. However, I can undoubtedly say that it is the best way to sell your property for the most money the market will pay.

There are four factors that need to be considered when it comes to the sale of your property:

  1. The marketing you need
  2. The service you need
  3. When your property will sell and
  4. How much it will sell for?

Marketing and service are issues within the control of the estate agency you list with. When your property will sell and how much it will sell for are in the hands of the market. Whilst the former will have an influence on the latter – buyers will determine what your property is worth today and when it will sell.
Shedding light

Residential Market Stability Risk Review
FNB - South Africa
Residential Market stability risk continues gradual rise (deterioration)
So the economy is in a corner, posing significant risk to the level of residential demand, and thus market stability. And key Leading Indicators’ continued to decline in the 4th quarter, pointing to still further near term economic growth weakness to come in the near term.

In short, Residential Market risk is in part “home grown” by the deterioration in certain housing affordability measures, a dismal Household Sector Savings rate, and a still-high Debt-to-Disposable Income ratio, but a very healthy characteristic at present is a lack of speculative activity and “over-exuberance” in the market. More concerning are the broader “Macroeconomic” and “Current Economic Pressures” Risk components. They suggest that, even if the residential market remains “well-behaved” in terms of a healthy lack of “irrational” and “over-exuberant” behavior, the risk remains high of South Africa’s battling economy exerting significant pressure on it.

And in our economic forecast we expect the economy to remain stagnant, with the 2016 forecast to be the 5th consecutive year of slowing GDP (Gross Domestic Product) growth to the tune of 0.5%. Thereafter, in 2017 and 2018 we project a mild increase in growth to just above 1%. Interest rates are expected to rise slightly further to where Prime Rate settles at 11% early next year.

Under this scenario, average house price growth is projected to slow to 4.8% in 2016, after 6% last year, and 3.1% in 2017, and the Mortgage Lending Sector is expected to experience a more challenging environment as the volume and value of bonded property transactions are projected to decline. In addition, a mild rise in industry-wide levels of arrears is expected through the forecast period.
Residential Market

Leave a comment:

Security Picture (click to change)
Word shown in picture:
menu close

Search Articles