Five reasons why owning definitely beats renting
Harcourts - South Africa
With SA’s economy looking uncertain and interest rates starting to creep up, many young people who have been getting ready to buy their own homes are starting to wonder if they should go ahead now or put their plans on hold –perhaps indefinitely. “However,” says Harcourts Real Estate CEO Richard Gray, “they should have no doubts about buying, because owning a home is preferable to renting 99% of the time, and if you are going to buy, it is always better to do so sooner rather than later.”
Some of the reasons that young people should embrace home ownership as soon as possible, he says, include the following:
1. When you get old, your home will hopefully have been paid off, so you will have complete security of tenure. You will not have to worry about the cost of your accommodation rising, in terms of rent increases, when you are quite possibly living on a fixed income.
The benefits of paying a deposit
BetterBond - South Africa
Of course no-deposit or 100% home loans do make it easier for young buyers and first-timers to get a start in the property market, and since the total withdrawal of such loans in the 2009 recession, they have steadily become more freely available, especially for the purchase of lower-priced properties.
“However, our latest statistics show that the percentage of loans being granted for the full purchase price has actually fallen to 39% now from 41% two years ago, and is still trending downwards,” says Shaun Rademeyer, CEO of BetterBond Home Loans, SA’s leading mortgage origination group.
“This is no doubt a reaction on the part of lenders to the recent contraction in the economy and growing employment uncertainty on the part of consumers – and it underlines the fact that it is always preferable for homebuyers to pay a deposit if they possibly can,” he says.
Budget Vote Speech by the Minister of Rural Development and Land Reform
The Minister of Rural Development and Land Reform, Gugile Nkwinti intends introducing five Bills before Parliament this year, they are:
The Electronic Deeds Registration Bill, which will replace the current paper based system for lodgement and registration of deeds, which requires the conveyancer to appear before the Registrar of Deeds, to lodge electronically.
The Regulation of Land Holdings Bill, which will inter alia regulate land ownership by foreign nationals and provide a legal framework for the disclosure of race, gender and nationality by owners of land and property (both natural and juristic).
The Extension of Security of Tenure Amendment Bill, which attempts to address the legitimate aspirations of the vulnerable groups in commercial farming areas, namely, the farm workers and farm dwellers.
The Communal Land Tenure Bill, which will provide for security of tenure through the registration of title deeds in the name of individual households. This will apply to both farm dwellers and labour tenants.
The Communal Property Associations Amendment Bill, which seeks to reform communal tenure by providing for the institutionalisation of land use rights by individual households, irrespective of gender; provide for the distinction between governance and investment and development entities in the communal space; and protect communal land from land sharks.
Budget vote speech
Judge slates 'arrogant' municipality over property transfer ineptitude
IolProperty - South Africa
If your municipality is messing you around, you might enjoy the comments made by a court this week when faced with evidence of outrageous bureaucratic inefficiency and arrogance. It's a case that should lead to the sacking for uselessness of certain Buffalo City officials - though you would be a fool to put money on this happening.
The case involved Canton Trading, an outfit that sold four East London properties to the Goldblum Family Trust. When the properties were sold the four properties were consolidated into one and the deeds office issued a certificate to this effect. Prior to the sale the municipality gave Canton a bill reflecting the total rates and taxes outstanding on the properties. This was paid, a clearance certificate was issued and the sale and transfer then took place.