Stand prices will be increasing in early 2017.
Buy now to beat the price increase!
Stand prices will be increasing in early 2017.
Buy now to beat the price increase!
First-time buyers continue to dominate the residential market, as young couples and newly-weds take the plunge into family life. In fact, mortgage originator ooba reports that in June 51.7% of its bond applications were from first-time buyers.
Most analysts consider that first-time buying is a good indication of market conditions and, given this segment’s high dependence on credit, whether bonds are easier to obtain – or otherwise. According to a survey by FNB, in the second quarter of this year, first-timers were estimated to make up 22% of total buying.
In recent years, as the residential market gradually recovers from the slump, many young buyers have been forced to wait, remaining in their parents’ homes or renting. Now they are returning to the market as a significant force. However, for the starry-eyed, eager to set up that dream home, a little patience is required. Delays in the process of finding and owning that first property can be more than a little frustrating.
Conveyancing attorneys STBB issued a caution in June that the turnaround in the Cape Town Deeds Office had slowed considerably, with transfers taking 15 days and more to register.
Similar delays are being experienced countrywide. Mortgage bonds, too, take their time. In fact, according to ooba’s statistics, it takes an average of 69 days for a bond to go from being granted to being registered.
According to Careen McKinon, ooba’s direct sales manager,
“buying a home is one of the most exciting but daunting things you’ll ever do. There is so much paperwork and communication between various intermediaries. However, the good news is that you’ll have lawyers acting on your behalf so all you really have to do is wait.”
> You and the seller sign the offer to purchase
> The bank grants your bond and instructs the attorney to register it.
> The seller advises the transferring attorney to transfer the property. The title deed and cancellation figures are requested by the bank where the current bond is held and a statement of rates and taxes is requested from the local authority.
> The bond attorney tells the transferring attorney the amount available for guarantees and requests the draft deed of transfer and guarantee requirements.
> The cancellation attorney is asked to cancel the seller’s bond upon receipt of a guarantee for the amount owing.
> The transferring attorney receives the title deed and cancellation figures and sends a copy of the deed of transfer and the guarantee requirements to the bond attorney. The transferring attorney requests the buyer and seller to sign the transfer documents. The buyer pays the transfer costs and the transferring attorney then pays the rates and taxes and the transfer duty.
> The bond attorney prepares the bond documentation together with the relevant account. The buyer signs the document and pays the costs. The bond attorney prepares and issues the necessary guarantees, forwards them to the transferring attorney and prepares the bond documents for lodgement at the Deeds Office.
> Once the transferring attorney has received the guarantees, they are forwarded to the cancellation attorney.
> The cancellation attorney obtains consent for cancellation from the bank which holds the seller’s bond.
> After all the documentation has been signed and the costs paid, the transfer, new bond and cancellation bond documents are prepared by the respective attorneys for lodgement at the Deeds Office,
> All documents lodged, the Deeds Office checks the documents. This can take up to three weeks before they are ready for registration simultaneously by the attorneys.
> On the day of registration, the bank pays out the loan in accordance with the guarantees issued.Final word from Careen McKinon: “Allow at least three months for the registration and transfer of the bond.”
People of different ages have different housing requirements but they also face different challenges when trying to obtain a home loan.
Retired or almost retired borrowers, may well have low debt, significant assets and high home equity, but may also be on a fixed income. And if that income is lower than what they used to earn can hinder the approval of a home loan for their retirement home. Some banks may also be reluctant to grant new 20-year mortgages to senior citizens.
According to the latest statistics from BetterBond Home Loans, which is SA’s biggest mortgage origination group, home buyers over 60 years of age are now typically buying properties worth around R1.2 million and having to pay an average deposit of some R470 000 (39 percent) to do so.
This puts their average bond repayment at R6 700 a month and the income required to secure the bond at R22 500 a month.
BetterBond CEO Shaun Rademeyer says, however, if they’re not sure that their earnings will continue at this level, or are worried that that their expenses, particularly in regard to health, will rise substantially over the next few years, they need to consider other options.
“One is to lower the monthly repayments by paying an even bigger deposit, but a much better idea would be to set their sights on a lower priced home, preferably low-maintenance and in a good area or retirement village where they would be happy to live long-term.”
That way they can put more of the cash from the sale of their family home into their ‘retirement fund’, save on maintenance and property rates, and still improve their chances of being granted a loan, he says.
By contrast, first-time home buyers in their 20s and early 30s may well have plenty of income to support a home loan application but a big debt load that hinders them from being approved.
“Banks are only interested in ‘disposable’ income – what is left after all debt payments and regular expenses have been deducted – when considering a loan application, so what buyers in this age group need to do is pay off any other debts as fast as possible until their disposable income will comfortably cover the monthly home loan repayment,” he says.
The BetterBond stats show that home buyers aged between 20 and 30 typically buy properties costing about R715 000, with a deposit of about R67 500 (9.5 percent), which puts their monthly bond repayment at just over R5 600 a month.
Some banks do have special programmes for first-time buyers that allow them to buy without paying a deposit (100 percent bonds), but they should bear in mind that this will increase the monthly bond repayment.
As for home buyers in their late 30s, 40s and 50s, their most frequent need will be to buy a bigger home to accommodate a growing family, whether that means more children, aging parents or both.
Rademeyer says these buyers will usually have enough equity in their existing homes to cover the deposit, or most of it, on their new home, but an expanding family generally means higher monthly expenses so, although they probably have plenty of earnings, they also need to minimise other debts like car repayments and credit card balances in order to look good to a lender. “At the same time, they should not be neglecting their own retirement savings, which means they should resist buying to the maximum of their financial capacity.”
According to the BetterBond stats, the average buy price for home buyers in their 40s is currently R990 000, on which they are paying a deposit of around R191 000 (19 percent). This puts their average bond repayment at about R6 950 a month while those in their 50s are paying around R7 100 a month, on average.
Act now before it is too late!
All stand prices from the developer in Silver Woods Country Estate will increase to R725,000.00 this week.
If you sign a purchase agreement before Friday 23 August 2013, you will still be able to purchase a stand at the old price of R715,000.00
Fill in the form below to begin the purchasing process.
If you wanted to buy shares in a company for example, you would need money upfront whereas with property, you could possibly get a 100 percent bond or a significant portion thereof from the bank or financial institution.
You ultimately spend other people’s money to make your fortunes provided you heed advice and are smart about what you buy, where you buy and what you buy the property for.
There is absolutely nothing new that I will share with you in this article that you don’t already know, well, except perhaps the bit about house prices.
The FNB 2012 House Price Index report last week revealed that investors can expect yields to increase further this year making property an attractive class thanks to low house price growth.
What this means really is that now is a good time for investors to build on their portfolio and take advantage of buying property in a slow market.
Read the article here.
The Absa House Price Index indicates that house price growth is forecast to remain relatively low in 2013 compared with growth of a few years ago.
The bank says in 2012, prices of middle-segment homes increased by a nominal 0.6 percent, after rising by 1.7 percent in 2011.
In real terms prices dropped by 5.4 percent in the first 11 months of 2012 with real price deflation of 2.9 percent evident in the corresponding period in 2011.
Many property experts will tell you that the lower the price you pay for the property, the higher the potential yield, hence the FNB report believes low house prices are good for investors.
When buying property to rent out, you must consider the yield that property will generate.
To calculate the yield, divide the net annual rent by the purchase price of the property and multiply by 100 to give you a percentage.
Here are 10 reasons why you should buy property:
1. You can work with other people’s money, so you don’t necessarily need money to make money.
Yes, you are probably thinking I have lost my marbles, what with stingy banks, but everything that has a price is negotiable, so if you badly want to get into the property market, do your homework – just because your friend did not get a 100 percent bond doesn’t mean you will succumb to the same thing.
2. Property offers a secure income stream and capital growth. In the case of buy-to-let property, make sure you buy in the right location where there is demand for rental property and get a tenant who can actually pay rent.
3. You are likely to make mistakes, but you can recover from these.
For example, your tenant may find himself unemployed and cannot pay rent, which means if you do not have other sources of income you may miss your monthly bond repayment. The bank is not going to take the house away from you, you can recover the next month.
3. It is easier if you multiply your investment. Once you succeed with your first property purchase, you can either sell and make a good profit or you can go back to the bank, armed with strong financial books and apply for a bond to buy a second or third investment.
With proper research in place, you can Invest in two or more properties.
4. The value of your property can increase with the investment. If you renovated the property or gave it a bit of facelift, that will increase its value so that when you sell, you make a good profit from the initial investment.
5. Unlike shares on the stock exchange, you do not need to monitor your property all the time.
6. Property is considered to be one of the most secure investments you could ever make – you may not be at a stage where you are a serial property investor, but owning property rather than renting is a step in the right direction.
7. The value of property does not plummet to the level which shares on the stock exchange may fall.
8. Banks will hardly give you a loan to buy or invest in shares, but they give loans to people wanting to buy property.
9. Property is the most tangible and direct way of watching your investment grow.
10. Remember to buy in a slow market and sell in a fast market in order to make money.
Between December and January as well as the winter months are good times to be making acquisitions and if you can avoid selling your property during this period.
Having said that, there is something about bricks and mortar that appeals, I know because I have tried and tested it, pity when I got into the game, I was not as savvy as I am becoming (one learns something new every day). – Denise Mhlanga. Property 24
Building activity in the segment for flats and townhouses showed some strong growth in the first two months of 2013, with low growth evident in the segment for larger houses. In general the planning phase, as depicted by building plans approved for new housing, contracted by a small margin up to February, while the construction phase benefitted from double-digit growth in the categories of houses smaller than 80m² and flats and townhouses.
The real value of plans approved for new residential buildings was up by R592,3 million, or 14,2% year-on-year (y/y), to R4,76 billion in the first two months of the year. The real value of residential buildings constructed came to R3,38 billion in the same period, which was R524,6 million, or 18,4% y/y, more than a year ago.
Following its monetary police committee’s three-day meeting, the South African Reserve Bank has left the repo rate at 5% for the third time.
“The MPC has decided to keep the repo rates unchanged at 5% per annum,” Reserve Bank governor Gill Marcus said on Thursday, after the committee’s three-day meeting in Pretoria this week.
The decision means the prime interest rate for bank lending remains at 8.5%.
The bank has kept the repo rate at 5% since July last year, when it dropped it by half a percentage point.
Marcus noted that a possible spike in inflation remained a key concern due to a recent slide in the value of the rand after hitting a four-year low of R9.29 to the dollar earlier in March.
“The committee will continue to apply monetary policy consistent with its mandate of price stability within a flexible inflation targeting environment,” she added.
But Marcus said that even though the inflation outlook deteriorated, the MPC expected inflation to remain within its official 3% to 6% target range at an average of 5.9% in 2013.
No change expected
Marcus also warned the country’s growth prospects remained subdued and projected gross domestic product (GDP) would grow by only 2.7% this year and 3.7% in 2014.
She also noted that South Africa’s economy was still performing below its potential.
“I don’t think anyone was expecting a change in interest rates and rightfully so,” said Chris Hart, chief economist at Investment Solutions.
“The Reserve Bank is in a tough spot at the moment as growth is depressed but inflation is growing but it would have been a bad idea to tamper with the interest rates at this stage.”
Hart’s view was echoed Adenaan Hardien, senior economist at Cadiz.
“We predict the next move on interest rates to come out at the end of 2014 with an increase being brought in,” he said.
“But this will be dependent on our real growth prospects and of course what happens with the rand during that period.”
Source: Mail & Guardian
Source Link: http://mg.co.za/article/2013-03-20-repo-rate-once-again-unchanged
The City Council property valuation roll is open for inspection from 27 February 2013 to 3 May 2013 for City of Tshwane.
If you have not checked and objected to the valuation for your property before the deadline of 3 May you will have to pay whatever they decide for the next 5 years ito assessment rates.
Please contact the City of Tshwane on (012) 358 9999 for any further assistance.
Below is an article that appeared in the Beeld newspaper recently:
Article in the Beeld dated 22nd February 2013 written by Cobus Claassen
Inwoners in die Tshwane-metro moet seker maak hul sakke gaan nie te veel vir eiendomsbelasting geruk word nie wanneer die munisipaliteit se nuwe waardasierol volgende week beskikbaar gestel word.
Tshwane het sy nuwe rol vir die tydperk 1 Julie 2013 tot 30 Junie 2017 onlangs gefinaliseer.
Die rol sal van 27 Februarie tot 3 Mei oop wees vir inspeksie en besware. Eiendomsbelasting sal van 1 Julie op grond van die waardasies gehef word.
Ben Espach, ’n kenner van munisipale eiendomsbelasting, sê inwoners moet hul eiendomme se nuwe waardasies noukeurig nagaan. “As jy die openbare beswaarmakingsproses misloop, gaan dit moeilik wees om jou waardasie reggestel te kry. Mense moet ook seker maak dat hul eiendomme in die regte kategorie aangedui word.”
Tshwane het net meer as 580 000 eiendomme op sy nuwe rol en die waarde het met R384 miljard gestyg sedert 2008.
Die waardasierol van die Johannesburgse metro het met net meer as R200?miljard toegeneem in dieselfde tydperk.
Espach sê hoewel die waardasie van ’n eiendom belangrik is, is dit die heffing waarop Tshwane in sy begroting gaan besluit, wat die grootste invloed op eiendomsbelasting gaan hê.
The following article appeared on the My Property web site on 29 August 2012 regarding the market turning in favour of Silver Woods and that the time has never been better to own a stand in Silver Woods.
Market turns for Silver Woods
8/29/2012 1:56:51 PM
Launched during the sharp downturn in the property market, the Silver Woods Country Estate on the eastern outskirts of Pretoria is now rapidly regaining favour among buyers who prefer building their own homes.
Linda Bodenstein of the RealNet Silver Estates franchise reports a sharp uptake recently in undeveloped stands in the estate. “Silver Woods is adjacent to the ever-popular Silver Lakes estate and enjoys the same cachet of luxury living in a secure environment.
“But buyers have come to realise that open stands in Silver Woods offer excellent value for those who aspire to the upmarket lifestyle this area offers.”
The estate is now 30% developed, while another 30% of the stands have been sold. Around 120 stands are still available and prices are below the R600 000 transfer duty threshold which saves buyers some cash that can be put to good use when they start building their homes.
Prices start at around R490 000 for stands of about 900sqm while 1100sqm stands are selling for around R560 000.
Bodenstein says that two years ago buyers were struggling to obtain bonds for undeveloped stands. “However, most now know they have to pay a 40% deposit and we find that buyers with sound credit profiles have little trouble obtaining building loans.
“We have also launched innovative financing options for buyers who want to secure stands before having the required 40% deposit. All these factors have contributed to a fast uptake of stands in the development, which had a slow start due to the recessionary economic climate.”
Buyers have one year to complete construction and although all building plans have to be vetted by the homeowners’ association (HOA) and approved by the local authority, no architectural limitations are enforced. A minimum floor space of 250sqm under roof is, however, prescribed. Homes already completed typically range between 330sqm and 650sqm.
A creche and an office park in a secured area at the estate’s entrance enhance its appeal. A clubhouse has also been approved by the developer and building will start shortly, while sporting facilities are being discussed by the developer and the HOA. Medical, sporting and shopping facilities abound in a 5km radius around the estate and many buyers cite good schools such as Curro, Abbotts College and high-profile state schools as a reason for settling in the area.
Issued by RealNet