Property 24/10 - 465

Are the first ‘green shoots’ appearing for South Africa?
South Africa’s economic environment is awash with grim news - from disastrous growth of -3.2% in Q1 2019 to and unemployment rate north of 27% - but could there be the initial hint of good news on the horizon?

According to Maarten Ackerman, Chief Economist and Advisory Partner at Citadel, there is certainly no shortage of tough issues for South Africans to deal with at present. Economic growth has been in its longest declining cycle since 1945, and the question now is whether South Africa is heading for another technical recession.

The consumer continues to reel under the burden of higher administered prices, the VAT increase and rising fuel costs. At the same time, State Owned Enterprises (SOEs), including SAA, the SABC and, most importantly, Eskom which has just been granted a further R59 billion bailout over the next two years, are putting the country’s fiscus at severe risk.

How to spot a fixer-upper property that’s worth the investment
Buying and renovating a fixer-upper property - one that’s a little dated or rundown - is a time-honoured tradition for bargain-hunting buyers looking to maximise their return on investment. Of course, finding the right property is integral to the success of this strategy - a poorly chosen project could easily cost far more to renovate than it could ever recoup in a sale.

Before buying a property, spend time looking at what is available in your desired area and study the market thoroughly. This will give you the confidence needed when it comes time to buying, says Craig Mott, Cape Town Regional Sales Manager for the Rawson Property Group.

Always speak to reputable estate agents in your area and brief them on your requirements, they may just lead you to the perfect property.

So, how do you go about spotting a fixer-upper that’s worth the time and cash investment? According to Mott, these are the most important elements to look out for:

Why more South Africans are buying sectional title property
Today’s fast-paced and busy lifestyle dictates that for many people, convenience is a key factor critical in decision making when it comes to buying or renting a home.

Coupled with a trend towards smaller living spaces which enjoy reduced monthly utilities and maintenance costs, or which are better suited to a change in lifestyle, this has resulted in an exponentially increasing demand for sectional title units in apartment complexes in easily accessible locations, says Dr Andrew Golding, chief executive of the Pam Golding Property group.

“With South Africa’s young demographic profile, it is hardly surprising that there is a growing demand for sectional title living, not only from first-time and young buyers opting for apartment living, but from homeowners across all ages who are seeking smaller homes in more convenient locations,” says Dr Golding.

How to make multi-generational living work for the whole family
High property prices, rising consumer inflation and stagnant salaries, as well as the shortage of affordable retirement accommodation have precipitated a spike in multi-generational living in recent years, however, in addition to all the advantages, there are also numerous potential pitfalls to navigate.

Yael Geffen, CEO of Lew Geffen Sotheby’s International Realty, says multi-generational living can be a very smart fiscal move as costs become more efficient when shared, and it’s also a very practical way for generations to help each other out, whether it be providing a home or sharing a rung on the property ladder.

However, putting three generations under one roof - the most common multigenerational living arrangement - is not without its challenges, and thorough planning as well as a number of adjustments and compromises are necessary in order for it to work, says Geffen.

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