Property 24/10 - 397

What's a reasonable rental escalation rate?
There are many factors landlords need to consider before escalating a tenant’s rental rate.

PG van der Linde, Rentals Manager at Seeff Pretoria East, says that a reasonable rental escalation rate is generally anywhere between 7% and 10%, but that this also depends heavily on the rental market's demand for the property and similar properties, the increase in cost of maintaining the premises and the market value of similar properties.

“It is extremely important to take note of what similar properties are rented for in the market place, because it will not be wise to lose a good paying tenant by overpricing your property at the time of escalation”.

Essential need-to-knows when applying for a building loan
If you are fortunate enough to own a piece of land in an urban area or prefer to buy a stand and build the house of your dreams from scratch, there are a few important factors to consider when applying for a building loan from your lender.

Marius Marais, CEO of FNB Home Loans, says although the process of securing building finance differs slightly from a traditional home loan, it is still governed by the National Credit Act and the same banking policies and lending criteria still apply.

When applying, he says you will need to use one of the channels available and ensure you have the following documents:

Interest rate cut an 'energy boost' to encourage buyers and investors
Today's’ decision by the Reserve Bank’s Monetary Policy Committee (MPC) to cut interest rates by 25 basis points, with the home loan lending rate now at 10% down from 10.25%, is welcome news for homeowners and would-be buyers.

Here’s what the property industry has to say…
Bond originator ooba welcomed the rate cut and says on a R1 million home loan, this decision will save South African homeowners approximately R39 900 over a 20-year term. The saving will be R166 on monthly bond repayments.

Five trends in office design: imagine a workplace like this
Ideas are the new currency of modern economies and it is no more evident than in recent billion dollar idea success stories like Airbnb and Uber, which are now disrupting and even putting out of business, established industries.

Richard Andrews, Managing Director of Inspiration Office, says increasingly companies are putting emphasis on new ideas to grow their business and stand apart from the competition.

He says we live in an ideas age and businesses are recognising that fact, and “today’s offices must support the ‘cult’ of new ideas - and in comfort, of course”.

Andrews shares the biggest office trends expected in South Africa in 2018.

New 'Durban Monopoly' highlights prime property locations
Durban’s rightful place on the ‘global map’ has been reaffirmed with the recent launch of the new Durban Monopoly board game. The second city in South Africa to be featured after Cape Town, the Durban edition features well-known landmarks such as Moses Mabhida Stadium, uShaka Marine World and The Pavilion Shopping Centre, among others.

“Being a world-renowned surfing city, we are ‘stoked’ at the recognition for Durban,” says Carol Reynolds, Pam Golding Properties area principal for Durban Coastal. “It’s not surprising that Durban features so prominently on the international arena as apart from its high tourism, cultural and leisure appeal, it is home to a host of different residential areas ranging from entry level through to the top echelon, making it the perfect metro to use as a base for Monopoly.”

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