Property 24/10 - 301

Government delivers 4.3 million homes
Human Settlements Minister Lindiwe Sisulu has launched a national campaign to celebrate 4.3 million houses and housing opportunities being delivered since the dawn of democracy.

The campaign celebrates an achievement which has seen more than 20 million people getting a roof over their heads. The launch was held at Cosmo City Multipurpose Complex in Johannesburg. It coincided with the 10th anniversary of the Cosmo City Integrated Mixed Development Programme, which has resulted in the completion of 12 500 mixed-income houses and 70 000 families moving into the area.

Today, the community of Cosmo City has its own schools, clinic, shopping mall, library and a fire station that is currently under construction, with its completion expected in December this year.

IEASA Western Cape to host property update in Saldanha
In order to offer information and training services to as many agents in as many regions as possible, the Institute of Estate Agents Western Cape (IEASA-WC), is taking their next Property Update session to the West Coast according to Annette Evans, general manager of IEASA-WC, who says this session will be held in Saldanha on Friday, 6 May 2016.

The session will run from 09h00 to 13h00 at the Hoedjiesbaai Hotel and will cost R100. Bookings will close on Tuesday, 3 May 2016.

The topics to be discussed include:
• Various industry updates by IEASA will be given, as well as clarity on the Estate Agency Affairs Board’s Continuous Professional Development (CPD), navigation of their Personal Development Plan (PDP), verifiable and non-verifiable points will be explained and the over-60s exemption process will be covered.

How does the recent CPI reduction affect property?
Despite Stats SA announcing that Consumer Price Inflation (CPI) decelerated from 7% year-on-year in February to 6.3% in March, food costs this March were nearly 10% higher than in March 2015.

This is according to David de Waal (CA(SA)), CEO of Steeple, who says the reduction in CPI for March is largely due to a 5% petrol price cut, and, although welcome, is unfortunately probably not the start of a series of monthly reductions.

“The Reserve Bank will still be under pressure to raise interest rates this year - especially if a downgrade happens - so we don't expect the property market to start improving soon,” he says.

Five benefits of valuing commercial property
Anyone who has ever bought or sold a property is aware that a valuation is a prerequisite to the completion of the transaction.

Louis van Rooyen, commercial and industrial broker with Rawson Commercial Somerset West, says some may view an annual valuation for a commercial property as an unnecessary exercise and expense.

However, if done correctly, he says valuations can prove to be a fantastic asset in a business’ arsenal of information.

Van Rooyen shares five benefits to obtaining an up-to-date commercial property valuation on a regular basis.

Is it wise to use your home loan to finance your business?
One of the biggest hurdles facing new businesses in South Africa is access to capital. Without finance, it’s nearly impossible for a start-up to get off the ground. Unfortunately, investors can be difficult to come by, which forces most entrepreneurs to look at other avenues for capital.

One of the most accessible options, in many cases, is mortgaging or re-mortgaging a home. In the unpredictable world of start-up businesses, however, this can be a risky proposition, says Bill Rawson, Chairman of the Rawson Property Group, who says there are pros and cons to this kind of finance.

“‘Should I mortgage my home to finance my business?’ is a question I hear often from upwardly-mobile young business people, but it’s not a simple question to answer - there are a lot of aspects to consider.”

Four tips for investing in your first property
When deciding on investing in property for the first time, there a few key elements that investors should take into consideration - such as whether they are investment-ready and well informed on all the available options according to Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa, who says buying a property is a major commitment that should be carefully evaluated in terms of your life plans and financial situation - both currently and in the future.

He says as a first-time property investor, it is vital to be informed and ask the right questions, such as when, where, why and how to invest in your first property.

Goslett shares some guidelines as to how first-time investors can find the answers to these questions:

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