Property News Gauteng

Take care to get the best off-plan deal

2012-01-30T09:38:00.000+02:00

Whether you are buying a starter home, retirement cottage or luxury townhouse, purchasing off-plan can be tricky, and you need to take extra care to avoid disappointment with the finished product.

“The first precaution you should take, of course, is to deal only with a reputable developer or builder who is known for producing quality homes - and whose product’ is there for all to see in other, completed projects,” says Berry Everitt, MD of the Chas Everitt International property group.

“Secondly, you need to ascertain exactly what it is that you’re buying in terms of floor space and finishes, and that everything is clearly specified in your building contract.”

Writing in the Chas Everitt Property Signposts newsletter, he says it is not uncommon for developers to build a show unit that is bigger or better finished than those being offered off-plan.

“And in some cases, you may find that the advertised price of units actually excludes the cost of finishes.”

So when you’re “shopping” for an off-plan home, he advises, you should not be embarrassed to ask the salesperson precisely what is and is not included in the advertised price. Then, if you're interested in upgrading to more or better finishes, ask how much it will cost for the developer to make these changes.

“The third thing to consider very carefully is finance. It is often a good idea, especially if you’re on a tight budget, to use the developer's lender, which has already approved the project. Not only should it be easier to get loan approval, but you may even get a special loan package.”

Span saam en maak wins

2012-01-11T06:49:00.000+02:00

Rentekoerse is laag. Pryse is laag. Huise is meer bekostigbaar. Waarom staan verbruikers en beleggers dan nie tou om huise op te raap nie?

"Om die eenvoudige rede dat hulle nie genoeg kontant het om die groot deposito's wat die meeste banke steeds vereis om 'n lening goed te keur, te betaal nie - wat staan nog te sê om 'n eiendom sonder 'n verband te koop," sê Berry Everitt, besturende direkteur van die Chas Everitt International-eiendomsgroep.

"Verbruikers kan egter munt uit die heersende kopersmark waar kontant koning kraai, slaan deur met familie of kollegas saam te span om 'n beleggersgroep op die been bring."

Hy skryf in die nuusbrief, Property Signposts, dat 'n groep van byvoorbeeld 10 mense elk R12 000 kan bydra om 'n 20% deposito op 'n huis ter waarde van R600 000 (waarop geen oordragkoste gehef word nie) te betaal en so 'n verband van R480 000 te bekom.

"Teen die heersende rentekoers sal die maandelikse verbandbetaling op dié bedrag sowat R4320 per maand beloop en die groep beleggers behoort genoeg huurgeld uit die eiendom te verdien om dié koste te dek.

"En met hefboomfinansiering soos dié sal elke belegger 'n 'opbrengs' van 15% op die aanvanklike belegging van R12 000 - minus munispale belasting, enige heffings, en onderhoud - verdien indien die waarde van die eiendom in die eerste jaar met net 3% (R18 000) styg."

Everitt wys daarop dat daar nie baie ander veilige bateklasse is wat so 'n vertoning kan ewenaar nie. Hy maan egter dat beleggersgroepe 'n prokureur behoort aan te stel om 'n formele ooreenkoms op te stel en dat die hulp van 'n ervare eiendomsagent ingeroep moet word om 'n gepasde eiendom te koop.

Property buying linked to children’s needs | PRLog

2011-12-15T01:28:00.000+02:00

Property buying linked to children’s needs | PRLog

Keep your financial guard up!

2011-11-22T17:30:00.000+02:00

Whilst it’sgood news that household debt levels continue to fall, consumers can’t affordto be complacent.

That’s theadvice of Berry Everitt, MD of the Chas Everitt Internationalproperty group, who says: “SA consumers and particularly homeowners haveclearly done a lot over the past three years to cut their spending and pay offdebts, but recent events in Europe reveal that we all need to stay prepared forfurther financial turmoil in the world.

“Consequently,households in SA should keep looking for more ways to save and do betterfinancially, so that they can build up a cushion against the type of financialshocks that have proved so devastating for many people over the past few years- like sudden huge increases in the costs of transport, food, water andelectricity - and against future interest rate increases.”

In addition,he says, many people have borrowed against the equity in their homes and depleted theirretirement savings in order to stay afloat in recent years, and they should belooking to rebuild those resources as fast as possible.

“What ismore, this is not the time to buy a new car or go travelling if your home – which is most people’sbiggest asset – is in need of repairs or renovations that have been neglectedwhile you struggled to keep your finances on an even keel. Similarly, youshould not be tempted to go on a spending spree this festive season justbecause you’ve paid off a big chunk of your credit card debt and are feelingunusually prosperous.”

Everitt saysthat what consumers should be doing is using any “breathing space” that theyhave now to create a longer-term financial strategy, drawing on the hardlessons learnt over the past few years. “For example, if you’ve been successfulin paying off debts by strictly restructuring your household budget and beingvery disciplined about your spending, don’t waste all that effort.

“Take thecash that is ‘free’ now that your debts have been repaid and do somethingreally constructive with it. If you are renting, start saving for a deposit ona home of your own so that you can get the long-term benefits of the currentlow prices and low interest rates. If you already own a home, use the extracash to reduce the capital amount of your home loan, cut the repayment term andgenerate huge savings in interest.

He saysfamilies should also use the opportunity to make contingency plans now “so thatthey won’t be thrown into a panic and will already know what their financialsituation is and what they need to do if, for example, one spouse getsretrenched or the family faces a medical emergency. Knowledge, as they say, ispower.

“And in linewith that, they should continue to seek ways to cut costs, barter goods andservices and earn additional income in a very determined effort to furtherimprove their financial position in the coming year. We don’t believe anyonecan afford to be complacent about this or return to the carefree spendinghabits of the past decade.”

www.chaseveritt.co.za

Understand what the levy commitments are when buying Sectional Title

2011-11-01T17:36:00.000+02:00

The levy is the amount paid monthly by each owner of a unitin an ST scheme into the body corporate account to at least cover the expensesin connection with the repair, upkeep, control and administration of the commonproperty. Theseinclude the rates and municipal service charges relating to the commonproperty, security costs, gardening, cleaning, wages and salaries and theinsurance premiums for the scheme as a whole.

“In well-managed schemes,” says Berry Everitt, MD of the Chas EverittInternational Property group, “it will also include a contribution towardsa reserve fund – a sort of savings plan to cover large irregular expenses, suchas painting the buildings, or unexpected major repairs such as replacing alift. This will hopefully obviate the need for the owners to pay ‘speciallevies’ to cover these expenses in addition to their normal monthly levies.”

Writing in the latest Chas Everitt Property Signposts newsletter, hesays that as a buyer in an ST scheme, you need to know, first of all, how thelevies are calculated. “In most schemes they are based on the PQ, orparticipation quota of each unit, which is calculated by dividing the floorarea of a particular unit by the total floor area of all units in the scheme –so the owners of bigger units pay more than the owners of smaller units.

“However, there are other methods of calculation and toprevent misunderstandings, prospective purchasers of ST must establish whattheir monthly levy will be, and how much it is likely to increase annually,before committing to the purchase.

“They should also find out whether there are any speciallevies currently in force or being planned. In addition, they should be awarethat a garage or storeroom will probably increase their PQ and their levy.”

What is more, he says, they must be very clear on the factthat the payment of levies by ST unit owners is not optional. It is required bylaw, and failure to do can result in a judgment being taken and the defaultingowner’s property being sold in execution.

Get qualified help with contingency clauses

2011-10-26T16:18:00.000+02:00

Although it’s not ideal, there are times when home sellers are more inclined to accept offers to purchase from buyers who still have to sell their existing homes.

This is certainly the case in the current market, where there are still more sellers than potential buyers, says Berry Everitt, MD of the Chas Everitt International property group.

“However, both parties need to take really great care when filling in an offer containing a clause stating that the sale is subject to or contingent upon the buyer being able to sell his own home,” he says.

“For example, the seller must make sure that the agreement contains a specific date by which the potential buyer must either sell his other home, waive the contingency or cancel the whole agreement.

“Without a date, the agreement could become ‘open-ended’, with the seller unable to terminate, or to sell his home to any other buyer as long as the original bidder is not in breach on any other point.”

Writing in the latest Property Signposts newsletter, Everitt says that on the other hand, the buyer also needs to know that he has until a certain date to sell his existing property. Failing that, he could end up in deep financial trouble, liable to pay for two properties from the day the home loan for the new property is approved.

“The sale agreement should also clearly state that if the potential buyer does fail to meet the deadline, it will be him who chooses whether to waive the condition or void the sale agreement, and not the seller.

“In short, contingent sales can be quite tricky, and both buyers and sellers are thus well-advised to deal only with qualified, experienced estate agents who will ensure that their sale agreements are correctly drawn up and filled in.

FOR FURTHER INFORMATION VISIT www.chaseveritt.co.za

Ask the right questions - get the right building contractor!

2011-10-18T09:38:00.000+02:00

With the current market conditions and hightransfer costs, many property owners are electing to go thealteration or improvement route as opposed to selling up andpurchasing a new property.

Anyone who has followed this path can probably recall some “unusual”and sometimes painful experiences you can recall with regards to the selection andappointment of builders, contractors, project managers and sub-contractors. However with today’s hectic lifestyle mostproperty owners seldom have the time or skills to do their own DIY propertyimprovements, and hiring contractor to do the work is often the only mannerin which they can handle improvements.

And here the selection of the right contractors is acritical area - if you wish to keep both your sanity and your bank accountintact. In the same way as you would becareful when selecting your surgeon, financial advisor or estate agent, you needto employ the same thinking to home improvement. To do this home-owners need todo their home-work – and part of this means asking the right questions up front,before they turn their prized property into a construction site.

Remember the old saying, “measure twice, cut once”. When itcomes to selecting your home improvementcrew it’s never been more apt! Thealterations you make are going to have an influence in many areas including thefuture value of your property, the amount of time (and aggravation) you will beinconvenienced by the project and the amount of grey hair you may accumulate alongthe way.

Homeowners doing alterations to their property too oftenfocus simply on the cost and duration and get caught up in the excitement ofgetting the project underway. Be cautious, take a little more time vetting andquestioning and you may find you spend less time reaching for tranquilizers.

The type of queries you should be directing at yourprospective contractors include:

· How long have you been doing this?

· Do you have references in terms of recentprojects of a similar nature recently completed?

· Will you be preparing a written plan for us onthe project/timeframes/dates?

· Is there going to be a full time project manageron site, and if so who is this person?

· Are the people on the contract employed byyourself or sub-contractors?

· Will you stick to your written quote?

· Are there and hidden costs I need to be awareof?

· Do you carry insurance for people who will beworking on site?

· Is your work guaranteed?

· Ask questions about how they work – what timethey start / finish, how they handle rubble and debris removal on your propertyetc

Once you have your answers, put your property PrivateInvestigator hat on and make some calls – talk to homeowners who theprospective contractors have done work for and ask them how they found theexperience, if there were any hitches, did the work start and complete on time,where there any/many snags, did they have to come back and handle problems andif so was this handled promptly, were they satisfied with the final results,would they recommend or use the contractor again. Spend the time upfrontconfirming that the contractors are trustworthy, ethical and reliable.

Once you are happy with this – then you can look at movingforward. Remember however that it really is not advisable , however persuasivethe contractors argument may seem to provide cash up front – this should ringalarm bells – if your contractor cannot finance this part – you need to asksome hard questions. If they are cash strapped – will they be able to pay theirpeople and finish? You may need to look further.

If part of your agreement is a payment schedule or drawsystem, stick to the plan and ensure whatever was required to be completed tothat point of the agreement is wholly completed before your fork out your cash.And finally – when the project is complete – get it checked – independently –this is particularly important if the work involves the likes ofplumbing/electrical/major structural work – if there are problems or additionalwork required to make this compliant – get it done immediately.

Your home is your castle, and for most of us it’s our singlebiggest investment – do the homework and protect it!

Brand New Affordable homes for Pretoria buyers

2011-10-01T09:48:00.000+02:00

Brand-new two and three-bedroom homes at prices from R280 000 to R522 000 – that‘s what’s on offer in two new affordable housing projects to the north of Pretoria.

Situated Rosslyn Ext 18 and 19 and Ga Rankuwa Ext/Unit 9, the developments will offer six styles of freestanding homes ranging in size from 45sm to 85sqm, at prices from R280 000 to R460 000 in Ga Rankuwa and from R365 000 to R522 000 in Rosslyn.

This means that if buyers pay a 10% deposit, the home loan repayments on these houses will range from just under R2300 a month to about R4300 a month – which puts them well within reach of the “gap” market of people earning around R15 000 a month.

The Chas Everitt International office in Pretoria North has the sole mandate to market these new homes, which will be well-equipped with items like four-plate stoves with ovens, double sinks with wooden cabinets and ceramic sanitaryware, and will feature smart finishes such as stone cladding.

“The prices for these units include transfer costs but buyers will need to pay their own bond registration costs of between R11 000 and R13 000,” says agency principal Christo Steyn. “They will also have the option of adding items such as kitchen cupboards, solar geysers and garages at an additional cost.”

Purple Orange Construction will be the building contractor for the projects, which will be NHBRC registered for the protection of buyers, and the development sites are ready for homebuilding to start immediately.

Mortgage originator Betterbond will be assisting with the approval of the properties by financial institutions, and will also be on hand to help buyers with their home loan applications.

For more information on the developments, prospective buyers should call agents Toye Ibiyemi on 076 451 9693; Tsepiso Sojane on 076 054 8843 and Themba Mathabula on 076 637 0094.

Sell Faster and Save

2011-09-25T16:15:00.000+02:00

Homeowners can cut up to two months off the average time it takes to sell a property by getting the asking price right from the start.

So says Berry Everitt, MD of the Chas Everitt International property group, who points out that sellers who do this stand to save a substantial amount in holding costs, as well as sparing themselves a lot of anxiety and stress.

“According to the most recent FNB survey,” he notes “the current average time for a home to be on the market before it is sold in 106 days. But a recent analysis of our sales in various areas around the country revealed that homeowners who make use of our Market Value Report to determine the correct asking price at the start of the marketing process are achieving a sale in an average of 44 days.

“And the savings they achieve through this two-month reduction in selling time can be considerable. On a home bonded for R850 000, for example, the monthly repayment will be about R7700 at the moment, while the costs of municipal rates and services, insurance, maintenance and security will add up to around R4000 at least.

“So for every month that the homeowner can cut the listing time of his property, he will be saving around R12 000, which he could perhaps use to pay a bigger deposit so as to reduce the monthly bond repayments on a new home.”

The potential to reduce selling times by pricing correctly is also especially relevant at the moment, Everitt says, because of the very long transfer registration times being experienced due to Deeds Office delays.

“The average period between sale and registration is now around 114 days, or almost four months, and home sellers cannot access the proceeds of their sale until registration is complete, so it is important to get the process started as soon as possible by selling quickly.”

Further analysis of recent sales figures, he says, revealed just how big an effect the wrong initial asking price can have on achieving that objective. “Homes that were between 5% and 8% overpriced to start with took 77 days to sell, while those that were 8% to 10% overpriced took 117 days to sell, on average.

“What was really revealing, though, was that homes which were more than 10% overpriced to start with took anything up to 180 days to sell - and then generally only sold when the initial asking price was reduced by around 20%. Meanwhile, the sellers also lost out on at least four months worth of holding costs.”

Ever Convenient Parkmore

2011-09-23T08:29:00.000+02:00

Parkmore, the residential area to the west of the Sandton CBD, is enjoying substantial rejuvenation thanks to an influx of younger buyers,

“This area offers both convenience and excellent value for money,” says Brian Robertson, area specialist for Chas Everitt International, “and there is a growing change in its demographic profile, as younger couples and families buy into the area, renovate their homes and lift both the appearance of the suburb and home values.

“So far this year, there have been 33 confirmed property sales in the area, at an average price of R2,17m, which compares very well with a total of 55 sales last year at an average price of R2,02m.”

The properties being bought, he says, are generally three-bedroom family homes that have not had much renovation in recent years, and the new owners are bringing a fresh perspective by modernising them and creating open-plan, bright, fun living spaces.

Parkmore is of course very well situated, Robertson says, as it is within easy reach of almost every preferred destination in Sandton and Johannesburg. “However, what buyers here really like is the fact that they don’t have to travel far at all to access excellent schools, a variety of upmarket shopping malls and top-notch sports facilities and medical centres.”

The suburb has its own high-reputation Montrose primary school, and pre-primary facilities include the Parkmore and Stepping Stones pre-primary schools as well as a number of toddler day-care and after-care homes to assist working mothers. Other schools a short drive away are St Stithians Boys and Girls College, Bryanston High, Sandringham High, Hyde Park, St David’s and Grayston Prep.

“There are local shops and restaurants along 11th Street and in Parkmore Mews, a new Pick ‘n Pay on Nicol Street and the Benmore shopping centre to meet most everyday shopping needs. And for a “Dubai” shopping experience, Parkmore is very close to Sandton City, which is currently undergoing expansion once again,” he notes.

The Morningside and Sandton Clinics are both close at hand for emergencies, and there are several medical practices in along 10th and 11th streets that are convenient for family medical needs.

“Meanwhile, for those who love sports, George Lea Park along Sandton Drive hosts the Sandton Sports Club, which offers cricket, senior and junior football and volleyball clubs, as well as an indoor pool and a sports pub. And for those who prefer less-strenuous activity, the Field and Study Park with its indigenous flora and open fields is the perfect place to walk the dog.”

In short, Robertson says, to live in Parkmore is to live in a “convenience node” and what is also important to buyers is that its character seems set to remain essentially suburban, despite its proximity to the Sandton CBD”.

National accolades for Chas Everitt agents

2011-09-15T07:32:00.000+02:00

One of the most noticeable effects of the property slump in 2008/09 was the sharp decline in the number of registered estate agents – and the lack of opportunity for young people to build a permanent career enter the real estate industry.

“However,” says Berry Everitt, MD of the Chas Everitt International property group, “this wasn’t all bad, as it created more scope for those agents who remained to consolidate, reposition and even expand their businesses in a less crowded market. In fact, as more than one speaker pointed out, many agents in the scaled-down industry are now selling more properties than they did at the height of the last property boom.”

The downturn also gave the industry as a whole time to implement new, properly structured education requirements and training programmes that are now proving very attractive to new entrants keen to enjoy long-term success in real estate, he says.

“And the results were clearly evident this month at the 12^th annual Property Professional Awards function, where the awards – including the many accorded to our agents - were nicely divided between seasoned campaigners and eager newcomers, all of whom are doing excellent business as the market recovers.”

Among the most experienced industry members to be honoured was Andre de Villiers, national marketing manager of Chas Everitt International and owner of three group franchises in Cape Town, who was named as one of the real estate industry’s top Movers & Shakers.

“Andre is a tower of strength in our business,” says Everitt. “He was instrumental in launching Chas Everitt International in Cape Town in 2003, he has been responsible for many of the marketing and technology initiatives that have made the group so successful, and he now also runs Chas Everitt Overseas Properties, which offers properties abroad for SA investors.

“Then at the other end of the experience scale, we have Francois du Pisani, who came into the industry with such gusto that he sold R28m worth of property within six months of joining our West Rand operation, and walked off at the Property Professional Awards with the inaugural Rookie of the Year trophy.”

Also honoured at the awards, he notes, were Zakes and Phiwe Myeza, “who were brave enough to acquire our Midrand franchise in the depths of the recession – and have never looked back.

“With their unwavering focus on recruiting the right agents, continuous training and skills improvement, and strong service ethic, they have within two years built their agency into a powerhouse that is also responsible for empowering many agents, clients and members of the community and they are really deserving winners of their Young Lions award.”

The group is also very proud, Everitt says, of Annette Rautenbach, another long-time devotee of real estate, who was one of 13 finalists for the Property Professional of the Year award. “Annette has a history of outstanding performance and a well-served reputation for excellent service and she has already won more than 100 awards as a top agent in our group.”

The Property Professional Awards committee, he notes, recognises and rewards estate agents nationally across the various brand denominations. “It is an independent forum of peers and competitors in the real estate industry and it is thus always gratifying when our agents are recognised as top performers.”

Young property buyers active in the Centurion market

2011-09-13T21:22:00.000+02:00

Young buyers are streaming into the Celtisdal, Heuweloord and Rooihuiskraal North areas of Centurion, reducing the average listing time of well-priced homes to under two months.

“The market here is extraordinarily active in the R550 000 to R1,4m price range,” says Paul Greyling, owner of the local Chas Everitt International franchise. “Buyers are mostly young couples and young families and the most popular choices are sectional title townhouses and duet homes.”

As for the availability of home loans to finance these purchases, he says careful pre-qualification of buyers and a slight easing of credit restrictions on the part of banks are assisting his office to now get three out of four loan applications approved.

“Also very encouraging is the fact that the number of distressed properties in our areas has dropped dramatically in the past three months. Combined with the increase in demand, this is helping to put a floor back under local home prices that bodes well for future value increases.”

Developers and builders apparently also think so, notes Greyling, because they are very active again now in these parts of Centurion, where land prices are relatively low. Stands are still available in the exclusive Gardener Ross Golf Estate, for example, for around R550 000 and upwards.

“Meanwhile, we are finding that although buyers are still very much in the driving seat, well-priced properties are selling in an average, currently, of 44 days. Most in demand are properties around the R890 000 mark. The new homes in the Heuwelsig Estate, priced at around R998 000, costs included, are also getting a lot of attention.”

He says the main draw cards for buyers in Celtisdal, Heuweloord and Rooihuiskraal are proximity to main access routes such as the N1 and N14, as well as good pre-primary and primary schools and convenient shopping venues such as Reds Mall.

Property exposure a key factor

2011-09-05T09:00:00.000+02:00

Even Yahoo! Real Estate - which attracts 7,63m unique visitors a month and is arguably the world's top real estate portal - only has a 6,51% share of the US property search market.

"And the three next biggest portals, realtor.com, zillow.com and trulia.com, have market shares of just 6,46%, 5,69% and 4,77% respectively," notes Berry Everitt, MD of the Chas Everitt International property group.

"Indeed, according to the latest figures available from Hitwise, which tracks the fortunes of all the top US real estate portals, even the top 20 portals together reach less than half (47%) of the 216m people in the US who visit such sites every month - which just goes to show that you can never have your property listings on too many websites."

There is no doubt, he says, that online property search is gaining ground, even in SA where internet access has historically been more restricted than in the US. "And of course the home property search market - or number of people looking to buy a new property - is far smaller in SA than in the US, so it is even more important to ensure that any listing gains the maximum possible exposure.

"Consequently, we believe that the ability of an agency to advertise properties across a large number of real estate portals and websites should be an important consideration now for property owners who are interviewing agents prior to awarding a mandate to market their property."

In accordance with this, Chas Everitt International places new listings on "every SA property portal we can find", including iolproperty.co.za; cyberprop.com;privateproperty.co.za and property24.com.

"In addition, we are constantly seeking out and adapting the very latest technologies to increase the exposure of our clients' properties. For example, we are currently running a pilot project in Bedfordview and Edenvale with QR codes that is receiving tremendous response," says Everitt.

QR (quick response) codes are those square black-and-white matrixes designed to be read by smartphones and containing all sorts of coded information. "Placed on one of our for-sale boards, a QR code enables anyone with a reader on their phone to instantly display an e-brochure containing a description and photos of the property, as well as other information such as price, financing requirements, schools and shops in the area and so on.

"This technology is catching on rapidly around the world, and in Japan has already become the main way for consumers to access information about products and services they need or want to buy. We see it as an important addition to our suite of marketing channels."

More potholes to fill

2011-08-30T20:45:00.002+02:00

While the road agencies at last appear to be taking the pothole issue seriously, there are some pitfalls on the road to home ownership that first-time buyers have to fix themselves.

“These include a belief that the area in which you buy is not really important because you will most likely be moving again soon. On the contrary, you should take care to buy in the best area and the best position you can possibly afford, with a view to the future,” says Berry Everitt, MD of the Chas Everitt International property group

“Area will greatly affect the price you can realise for your first home when you decide to sell it, and that will affect the price you can afford for a new one, and so on as you go up the property ladder.

“Secondly, you should always avoid buying in a rush or under pressure, and rather take the time to do thorough research on the neighbourhoods you like and how their property markets are performing.

“You should also check out the local schools, shopping centres, medical facilities and crime rate – because even if you don’t think these will affect your own lifestyle, they could, once again, affect the resale potential of your home.”

Writing in the Property Signposts newsletter, he says the third pitfall to avoid is going into the market financially unprepared. “Rather take the time to work with an originator or your bank to pre-qualify properly for the home financing you will require.

“This will enable you to focus on homes you can afford, and enable you to make an offer to purchase with confidence when you find the right one.”

And finally, Everitt says, you should not put all your cash into your home purchase. “It is true that lenders like big deposits, but it is also prudent for buyers to keep some cash in reserve for unexpected moving expenses and emergencies.

“Once you are settled, you can always pay any spare cash into your home loan account to reduce the capital and get your home paid off faster.”

Time to stop running the property market down

2011-08-26T08:45:00.000+02:00

Ongoing – and mostly unfounded - pessimism in the residential property market is threatening to become self-fulfilling prophecy.

So says Berry Everitt, MD of the Chas Everitt International property group, who notes: “The truth is that there are a great many positive indicators for property at the moment, and our industry as well as the banks and the economists should be doing more to reinforce and underline these in order to strengthen the recovery.”

Writing in the Property Signposts newsletter, he says: “The truth is that home prices are rising again and while the average increase may not yet match inflation, more activity in the market and more sales will take care of that.

“What is more, it is important to communicate the fact that those who buy now before prices really start escalating are making a good move, for two reasons, the first being that they are getting more house for their money and the second that they are putting themselves in a position to make greater returns on their investments than if they wait until later in the property cycle to buy.

“Just ask anyone who bought in 2004 at the beginning of the last property boom, instead of waiting until 2007, when prices – and thus the costs of entering the market - were already sky-high.”

Meanwhile, Everitt says, he is encouraged by the fact that sales volumes in most of his group’s offices are substantially up on this time last year – and that the average time it is taking them to sell a well-priced home is down to around 10 to 12 weeks, a far cry from the average 20 to 24 weeks two years ago.

“To a large extent, this is because prospective buyers are generally in much better financial shape than they were two years ago, and thus better qualified to obtain home loans. Many debt defaults have been addressed and sorted out, household income levels are up and the average debt-to-income ratio has dropped below 77%, it’s lowest level since the end of 2006.”

And perhaps in recognition of this, he says, the banks have definitely been granting more loan approvals for the past few months.

“Consequently, I really think it is time now to let the August winds blow away any negativity, stop sitting on the fence and get involved in the market with a positive attitude. We have it in our power to create our own ‘happy ending’ instead of allowing the doomsayers to talk us into disaster.”

www.chaseveritt.co.za

Increasing number of young expats returning to SA

2011-08-16T18:41:00.000+02:00

Extreme weather conditions and geological events in many parts of the world this year, as well as prolonged political protests, huge financial upheavals and declining employment opportunities in the US, UK and across Europe are prompting many expats to make plans to return to SA.

So says Berry Everitt, MD of the Chas Everitt International property group, who says: “Even before the street violence that hit London recently, we were receiving several calls and Internet enquiries a month from expats planning to return to SA and starting to look for homes here, as well as from South Africans finishing up work contracts abroad and preparing to come home.

“Now this activity has spiked, of course, but even if it drops back to earlier levels, we believe there is an excellent opportunity here for SA to gain some of the skills we really need in order to start creating more jobs – if government does not put a spoke in things with unrealistic and unwieldy immigration processes.”

He says concerns about the nationalisation of assets and rising taxes are also deterrents for expats thinking of coming back to SA, “and many of those we speak to don’t discount the crime rate and serious weaknesses in the education and health systems either, especially if they have families.

“However, most interest is coming from younger people without such ties and the prevailing attitude among them seems to be that there are major problems all over the world now – or at least the potential for such problems to arise at any moment - and that they would rather be where they have a supportive network of family and friends and can face any difficulties in a familiar cultural and financial framework.”

For some, says Everitt, the motivation is purely financial. “They are well aware that there is a worldwide shortage of talent and skills, as well as the entrepreneurial spirit for which South Africans are renowned. And they are trading on the fact that many SA companies are currently prepared to offer excellent packages to skilled expats who will work in SA - even if they only stay long enough to train a local replacement.”

And then, he says there are those who with the perspective of having lived abroad for a few years see great new business opportunities in SA even if it is a risky environment – and who stand to be among the biggest contributors to job creation, so should be made to feel very welcome.

Everitt says the properties most favoured by expats contemplating a return to SA are lock-up-and-go homes in estates and security complexes, priced at between R850 000 and R1,2m.

www.chaseveritt.co.za

Right now is a good time to upgrade property

2011-07-20T19:28:00.000+02:00

The lowest interest rates in three decades, combined with tight credit and depressed property prices, make this an unusually good time for homeowners to upgrade to bigger or more luxurious properties.

“It’s true that many people are still downscaling for financial reasons, but according to the latest FNB Property Barometer, some 16% of home sellers currently list upgrading as their main reason for selling,“ says Berry Everitt, MD of the Chas Everitt International property group. “There are always people who need a bigger home to accommodate an expanding family, for example, or who want to move to a more upmarket area.

“Quite a number of those who sell primarily for security reasons also intend moving to a more expensive property in a gated village or estate, for example, and we also find that many retirees whose aim is to move from a big family home will actually upgrade in terms of luxury features and area when they select their smaller retirement properties.”

And now, he says, is a really good time to be making this sort of move. “Currently nine out of 10 sellers are prepared to lower their asking prices in order to achieve a sale, with the average concession being around 11%. What is more, we expect this openness to negotiation to increase over the next few months as sellers get anxious about their year-end relocation plans and the possibility of an interest rate rise that will not only increase their holding costs but may influence their ability to secure home loans for their next purchases.”

Of course, says Everitt, no one wants to take a “loss” on their property, but sellers who plan to upgrade are coming to appreciate that they stand to gain substantially by achieving a quick sale that sets them free to do so.

“If you have a R1m property on the market and have to take an 11% drop in price to achieve a sale, for example, you will “lose” R110 000. However, if you can then buy a R1,5m house for 11% less (R1,335m), your net gain will be R55 000,” he says

“What is more, if you do it now while interest rates are still low it should be much easier to get a bond for your next home than when rates start rising again, which they are expected to do towards the end of this year. The household earnings required for a bond of R1,2m are currently around R37 000 a month, but if you wait until the mortgage interest rate rises to 10%, for example, the earnings required for the same bond would be around R39 000 a month.”

In short, he says, the current market presents an unusual opportunity to get “much more house for your money” – and achieve higher than average growth when property prices start rising again.

www.chaseveritt.co.za

Country Bound?

2011-07-13T09:04:00.000+02:00

If you long to downscale to a simpler lifestyle free of the work pressures, security risks and high rates and taxes associated with cities and large towns, now might be a very good time to move to the country.

“The reason is that small towns currently have even more to offer potential residents than peace and quiet, and that is good value for money in residential property,” says Berry Everitt, MD of the Chas Everitt International property group.

According to the FNB Property Barometer, he notes, the major metro price index showed a 4,7% increase in the first quarter of this year, while the index for what the bank calls “holiday towns” showed a 6,9% decline for the same period.

And in real terms, the average house price in big cities was R1,1m, compared to an average of R794 000 in the holiday towns.

Writing in the Property Signposts newsletter, Everitt says Absa’s latest figures also reflect price increases in most metropolitan areas during the first quarter, and some startlingly large increases in major holiday / second-home destinations such as the Cape West Coast, the Garden Route and the KwaZulu-Natal South Coast.

However prices in the more rural provinces such as the Eastern Cape, Free State, Limpopo and Mpumalanga were still in decline.

“In short, what these stats show is that it should be possible to sell up in the city and have a nice chunk of change left after you’ve bought a home in the country.

“Of course there are caveats, and no such major move should be made on impulse. If you would have to commute to work back in the city every day in heavy traffic, for example, the allure of a country home would probably soon be eclipsed by frustration and high fuel bills.

“On the other hand, it is a really bad idea to sink all your pension money into a village business until you have lived there for a while, done some serious number crunching and feel sure it will work.

“But if you already have or can quickly start a home-based or online business, or if you are an established teleworker, this may just be the time to make your great escape.”

ISSUED BY CHAS EVERITT INTERNATIONAL

www.chaseveritt.com

The hazards of trying to sell your property privately

2011-07-02T10:19:00.000+02:00

Selling your home yourself and keeping the commission in your pocket instead of paying it to an estate agent may sound like a good idea, especially in a slow market, but you should be aware of the dangers before you decide on this approach.

So says Berry Everitt, MD of the Chas Everitt International property group, who notes: "We find that most DIY or private sellers are homeowners who need to sell in order to get out of financial trouble, and have taken this route in the hope that saving the commission will mean they won't have to 'pay in' to settle their home loan after the sale.

"Unfortunately, though, they often fall into one of the many potential pitfalls of selling privately, and end up even worse off. We see this every day, and we would like people to be aware of the hazards and think carefully before they decide to dispense with the services of a professional agent."

The dangers of selling your own home, he says, include the following:

You carry the all the costs of advertising and marketing, whether or not you sell your home. And not only that, you will have to try to gauge which advertising media might be most effective, and place and monitor your own ads. You will also need to get your own for-sale boards made and put them up and take them down in accordance with your local authority's signage bylaws. And finally, you will need to organise and run your own show days, and be on hand to conduct individual viewings for potential buyers.

Lack of exposure. Most private sellers don't have the knowledge or resources to expose the property to a big enough pool of potential buyers and create enough awareness. Good estate agents, on the other hand, will have access to existing buyer bases as well as national and international advertising and marketing channels.

Lack of market knowledge and pricing ability. If you don't' have access to the latest sales records and statistics, it is very difficult not to over- or under-price your home with regard to the current demand in your area. And buyers are so savvy these days that if your home is overpriced, no-one will make an offer; while if it is priced too low, you will lose out financially and defeat the purpose of selling your own home in the first place.

Lack of experience / skill in negotiation. It is definitely still a buyers' market and most buyers are tough negotiators at the moment, having done their homework and research. The first thing most will tell you, for example, is that if you are selling privately and not paying commission, the saving should go to them and not you. On the other hand, most sellers are not practised negotiators and will find it difficult if not impossible to achieve the detachment necessary to reach a mutually beneficial agreement.

Legal and liability issues. Apart from the need to achieve familiarity with sale agreements and all sorts of other legal documents - or to pay an attorney to check them - private sellers also potentially face all sorts of liability issues when they are dealing with a buyer one-on-one. Laws dealing with property sales have become much more numerous and more complicated in recent years, and the new Consumer Protection Act is just one of the minefields that have to be crossed in order to achieve a successful sale.

Unqualified buyers. There may be many people wanting to buy but with the banks being so strict on credit less than half at the moment can qualify for a home loan. However, it is very difficult for private sellers to establish the financial capabilities of potential buyers so they don't waste time with people who won't qualify for a loan, people who don't have enough cash for the deposit and transfer fees or worse, people who are trying to 'scam' them into giving them occupation of their homes.

Security. As a private seller, you have no screen between you and potential buyers - or potential crooks who may use the opportunity to get inside your home and either steal things while looking around, or "case" the property and security systems for a much bigger crime at a later date.

Chas Everitt International Press Release http://www.chaseverittgauteng.co.za

"BIY" could be next big thing in housing

2011-06-22T10:38:00.000+02:00

There has been a significant increase in the percentage of property purchases being made with cash rather than home loans in the past two years – but not all these buyers are investors snapping up buy-to-let bargains in a down market.

“An increasing number,” says Berry Everitt, MD of the Chas Everitt International property group, “are people who have been made extremely debt-averse by the recession and who, with cash in hand from savings, investments or perhaps the sale of an existing property, want to own a bond-free home.”

Writing in the Property Signposts newsletter, he says that in fact this is one of the most important factors driving the trend towards smaller homes, and the increasing demand for apartments and townhouses compared to large houses.

“However, sectional title living does not appeal to everyone, and more and more cash buyers are now also turning to the possibility of using their money to literally build their own homes on freehold land.”

The growing popularity of this Build It Yourself (BIY) idea is clearly illustrated by the success of the TV series Grand Designs and its spinoff exhibitions but, says Everitt, most BIY enthusiasts don’t have such lofty ambitions.

“Usually they just want a modest, comfortable home that they can fund themselves without having to go to the bank for a loan, and preferably one that is environmentally-friendly and energy efficient so they can cut utility bills as well as doing away with a bond repayment every month.”

And from the hundreds of books and websites already aimed at these BIY enthusiasts, he notes, “it is becoming very clear that many of the materials and methods they are using could be put to excellent use in helping to solve SA’s housing shortage in a cost-effective manner, while also creating many much-needed jobs”.

ISSUED BY CHAS EVERITT INTERNATIONAL

www.chaseveritt.co.za

The Big 5 to avoid when selling

2011-06-03T10:35:00.000+02:00

Staying emotionally detached is one of the biggest challenges for any home seller, but necessary if you don’t want to put buyers off and lose the sale.

“Once you decide to sell your property, it’s a mistake to see it as anything more than a commodity to be packaged, priced and marketed,” says Berry Everitt, MD of the Chas Everitt International property group.

“That might sound callous but the truth is that potential buyers are going to come in and ‘kick the tires’ and you can’t afford – emotionally or financially – to get upset if they make negative comments or apparently fail to appreciate all the hard work it has taken to get the property into good condition.”

Indeed, he says, shrewd buyers will often deliberately make such observations to try to put sellers on the back foot during price negotiations. “But with the help of an experienced and reputable agent, sellers can usually avoid this trap, as well as the four other major mistakes that can easily scotch a successful sale.”

These are:

* Putting the property on the market before it's ready. “This often happens when the seller has a relocation deadline and is in a hurry to sell. But first impressions really do count in property sales so if there’s a horrible carpet to replace or the house needs painting, do the work before your agent begins marketing,” says Everitt.

* Not having all the financial information you need. “Home sellers need to know what the outstanding balance is on their own mortgage, for example, and how much notice they need to give the bank in order to avoid a pre-payment penalty. They also need an agent who will give them the most up-to-date and comprehensive market intelligence on home sales in their area.”

* Pricing the home based on what you want (or need) to net. “This pricing strategy always ends in failure,” he says, “because while the seller can control the asking price, the market will dictate the eventual selling price. And the market generally consists of buyers who are avid comparative shoppers and very quick to spot (and avoid) overpriced properties.”

* Trying to cover up problems, or not disclosing them. “The best course of action is to rectify any problems or defects before you put the property on the market, but if this is not possible, you must be totally frank with your agent and potential buyers and be willing to negotiate a fair price for your home in its true condition. Anything less than such honesty is very likely to lead to legal action being taken against you, and the loss of more than any profit you might have made on the property sale – especially now that the Consumer Protection Act is in force.”

ISSUED BY CHAS EVERITT INTERNATIONAL

www.chaseveritt.co.za

Selling your home should be "strictly business"

2011-05-24T13:43:00.000+02:00

When the time comes to sell your home, it may seem natural to award the marketing mandate to your friend who just happens to be an estate agent.

But this is quite likely to be a bad move, for all sorts of reasons, says Berry Everitt, MD of the Chas Everitt International property group.

Writing in the latest Property Signposts newsletter, he says that as your friend, your “agent” may be too embarrassed to tell you what needs to be done to get your home ready for showing, for example, or shy away from disagreeing with your asking price even when he or she knows it is too high.

“On the other hand, you may be inclined not to probe your friend’s track record of sales too closely, or to keep quiet, for the sake of your friendship, even when you think he or she is not holding enough show days, placing enough advertising or giving you enough feedback on the marketing of your home.

“And in either case, the relationship with your friend is likely to be eroded anyway as the months continue to roll by without a sale.”

It would be much better for both of you, says Everitt, to separate the professional job of selling your home from your personal life and work with a different agent who can be objective with you and who you can freely ask for references and a proper marketing plan.

“That way, you should get to keep your friend and part with your home, instead of the reverse.”

ISSUED BY CHAS EVERITT INTERNATIONAL

www.chaseveritt.co.za

Less house - More home – latest trend

2011-05-10T19:13:00.000+02:00

All the statistics show that buyer preferences are tending towards smaller homes at the moment – and not just because that’s all that’s available or all they can afford.

So says Berry Everitt, MD of the Chas Everitt International property group, who notes that a major new study by the National Association of Homebuilders (NAHB) in the US shows that by 2015, the average new home will not only be at least 10% smaller than now, but also much “greener”, more packed with technology and more suited to the smaller modern family unit.

Writing in the latest Property Signposts newsletter, he says the NAHB acknowledges that the economic downturn has accelerated the trend, with smaller homes obviously costing less to build, buy and maintain.

“Most of today's consumers, the report says, are also very focused on keeping utility costs down and, because appreciation is slow, lack the equity to upgrade to bigger homes. However, it says they might not want to anyway, since the average family size is shrinking and changing lifestyles mean a growing preference for convenience over space.”

For example, Everitt says, it is expected that the exclusive lounge or living room will increasingly either merge with a family room/ great room including a kitchen area, or become a smaller study/ library or music room.

“And although SA does not exactly follow the US market, a similar trend is emerging in new developments here, with more space often taking a back seat now to ‘green’ features such as solar geysers, water-saving measures and energy-efficient appliances.

“In short, function is rapidly becoming at least as important as form, which is a major shift for house-proud South Africans and one that potential home sellers should note.”

ISSUED BY CHAS EVERITT

www.chaseverittgauteng.co.za

Keep the lights on and your bills down

2011-05-07T07:23:00.000+02:00

Eskom has already advised users that with winter and heavy electricity usage on the way, it cannot guarantee that there will be no load shedding in the coming few months.

And even without that warning, says Berry Everitt, MD of the Chas Everitt International property group, homeowners have an incentive to try to reduce electricity consumption, in the form of a further 25% tariff increase this year that will mean higher power bills for most users from July.

“However, Eskom has already cut its subsidies for the installation of power-saving solar geysers by between 10 and 25% - and will completely stop its geyser discount programme for the year as soon as the money budgeted for it has been exhausted.”

Consequently, he says, it is time to reconsider some other important energy-saving measures, the first and most effective being to ensure that your ceilings are properly insulated with thermal batts or blankets made from fibreglass, rockwool or paper that prevent heat loss.

Writing in the latest Property Signposts newsletter, Everitt also says that rather than using electric heaters this winter, homeowners might consider installing a fireplace, “the most energy efficient being those that burn pellets or ‘bricks’ made from sawdust, wood waste, the husks of rice or other cereals, or recycled waste paper.

“These burn very efficiently and powerfully and provide a lot of heat for a relatively small amount of fuel.”

It also helps, he says, to turn geysers off during the day, and to use energy-munching appliances such as stoves and washing machines as sparingly as possible.

“Little savings also add up – like not leaving your electronic devices on standby, and putting an extra blanket or duvet on your bed instead of leaving the electric blanket on all night.”

ISSUED BY CHAS EVERITT INTERNATIONAL

www.chaseverittgauteng.co.za

EAAB problems don't translate to an industry in chaos

2011-04-20T11:33:00.000+02:00

Very few estate agencies are corrupt or operating illegally, and the fact that the Estate Agency Affairs Board (EAAB) is in total disarray does not mean that the whole real estate industry is falling apart.

That's the message that urgently needs to be conveyed following this week's insert on the TV programme Carte Blanche dealing with the problems at the EAAB and what implications these might have for members of the public," says Berry Everitt, MD of the Chas Everitt International property group.

"It is not correct to assume that just because the controlling body is badly managed, the companies it is supposed to oversee will run amok. No-one would suggest that if the Financial Services Board collapsed, for example, it would automatically spell poor corporate governance at all insurance companies."

The truth of the matter, he says, is actually that despite woefully poor leadership by the EAAB for several years, the huge majority of estate agencies and agents are trading legally and have not dipped into their trust funds.

"Our own group is a case in point. Although we currently have more than 100 offices and more than 800 agents, only a handful do not have Fidelity Fund Certificates - and those few have all paid their registration fees and spent much time and effort trying to obtain their certificates from the EAAB.

"In addition, as a responsible franchisor, we have measures in place to ensure that the trust accounts of all our franchisees are regularly and properly audited, and that the audit reports are submitted to the EAAB on time - even though their businesses are independently owned and operated."

What is more, says Everitt, the group has readily embraced new legislation over the past few years dealing with agent education and consumer protection. "Most of our agents and principals have already obtained the NQF level 4 and 5 qualifications that will be required from next year, and the last group will finish their training and portfolios before the end of this year.

"And in the spirit of the new Consumer Protection Act, we have already conducted extensive training sessions for our agents and introduced a new Offer to Purchase document that is easy to read and understand.

"In short, although we have gone through some tough times while re-aligning our business to cope with the recession and its aftermath, we have cut no management or legal corners while doing so, and it is my belief that most real estate companies that have survived the downturn are in the same position - despite the chaos at the EAAB."

http://www.chaseverittgauteng.co.za

SMMEs key to housing market growth

2011-04-19T14:13:00.000+02:00

As the newest member of the BRICS emerging nations group, there are a lot of lessons SA can learn from thriving economies such as those of Brazil and China – and one of the most important is how to facilitate job creation through the growth of the SMME sector.

So says Berry Everitt, MD of the Chas Everitt International property group, who notes: “Job creation is obviously key to the robust recovery and growth of our housing market, as it will enable many more people to afford their own home for the first time. And the key to a really substantial increase in employment is a vibrant culture of entrepreneurism in which small, medium and micro-enterprises (SMMEs) can flourish.”

Reacting to the news this week that the number of people receiving social grants will be increased by 1m this year to a total of 15,3m – more than 10m of whom are children – he said such important efforts to alleviate poverty would not be sustainable unless SA could broaden its tax base.

“We are in a dangerous situation where we have more people getting grants than the estimated 12m people who are working – and only about 5m taxpayers. This is why the government is now placing such emphasis on job creation and skills development.”

However, Everitt says, for Finance Minister Pravin Gordhan’s plan to create 5m jobs over the next 10 years and reduce the unemployment rate to 15%, the economy would have to grow at 7% a year – “and that is just not going to happen without a very strong SMME sector.

“All over the world it is now recognised this sector creates more sustainable jobs than any other. In the US, for example, small businesses have created 64% of all net new jobs over the past 15 years, and currently employ more than half of all private sector employees.

“It is also clear that SMMEs have played a critical role in the rise of the BRIC (Brazil, Russia, India and China) economies over the past 10 years, as they did previously in the successful development of Taiwan and Korea.”

Consequently, he says, SA needs to focus intensively on encouraging the formation of new small businesses, as well as on supporting existing SMMEs so that they can grow and generate additional employment.

“I would suggest that we need to start teaching entrepreneurism in schools and encouraging school-leavers to start their own micro-businesses rather than having their hopes dashed by being unable to find a job. We also need to make the access to small business advice and funding easy and readily understandable; to get rid of all the bureaucratic obstacles in the way of registering and formalising a small business; and to give SMME owners real tax breaks, especially when the employ others.

“And perhaps instead of spending the R10bn in President Zuma’s job creation fund on employment incentives for big businesses - which will no doubt be dissipated through a dozen government departments and the Setas - the government should spend it on a very focused and specific campaign to help create one million or two million new businesses in the SMME sector over the next 10 years.

“That would go a long way to meeting the target of 5m new jobs.”

ISSUED BY CHAS EVERITT INTERNATIONAL

www.chaseveritt.com

www.chaseverittgauteng.co.za

Is signing before you sell your property a good idea?

2011-04-13T11:34:00.000+02:00

Even though the economy is improving, the latest statistics show that around one-fifth of all home sellers are still looking to downscale to smaller homes that are less costly to run and maintain.

And many developers are playing right into their hands now – offering really competitive deals on newly-built units in estates and complexes that also address the rising concerns of many about their security and personal safety.

However, says Berry Everitt, MD of the Chas Everitt International property group, in most cases it is not a good idea to commit to the purchase of a new home before you have sold your existing property.

“Most developers will only accept offers that are not ‘subject to’ the sale of your old home, so if you make an offer and this sale takes longer than you anticipate - which is quite likely in the current market – you could be putting yourself in a really tight spot financially.

“At the very least you will need cash to cover the deposit on your new home, transfer and legal costs, and at worst you could also find yourself responsible for two home loan instalments and two sets of running costs each month until you achieve a sale.”

Writing in the Property Signposts newsletter, he says it would be far better to plan ahead and work with an experienced and motivated estate agent to sell your existing home so that you have the proceeds in hand before you make any offer to purchase a new one.

“Meanwhile, if you have already started looking at new homes, you should resist any effort by the agent who is selling the units in the new development you like to obtain the mandate to sell your own property, as there is an obvious conflict of interest.”

In addition, says Everitt, you should know that you do not have to deal only with the bank or financial institution associated with the developer when it comes to applying for a home loan. “Even if just for your own peace of mind, you should consult a mortgage originator to see if you can possibly negotiate a better package or interest rate elsewhere.”

CHAS EVERITT INTERNATIONAL

www.chaseveritt.com

Outdoor areas enhance property values

2011-04-12T11:27:00.000+02:00

Outdoor areas like lapas, patios, stoeps and verandas – all are great places for South Africans to do one of the things they like best, which is spending time outdoors with family and friends.

And that’s why adding a great outdoor living space is one of the best improvements you can make to just about any home, says Berry Everitt, MD of the Chas Everitt International property group.

“However you use it, whether it’s to braai and party on weekends, or drink coffee and watch the sun come up before a busy day, or enjoy a meal on a balmy summer evening, there’s no doubt that when the time comes to sell your home it will also enhance the appeal for potential buyers.”

What is more, he says, you will probably recoup most of what you spent creating it in the sale price of your home. “According to the annual Cost vs Value survey by Remodelling magazine, a homeowner who adds a wooden deck, for example, can expect to get back 72,8% of the cost at resale, which is a much higher return that for a bathroom renovation or the addition of an extra living room, and about the same as for a minor kitchen revamp – all of which would cost far more.

“But you don’t even have to incur the expense of decking to create an attractive space, especially if you are able to do some of the work yourself.”

Writing in the Property Signposts newsletter, Everitt notes that if you have a level space in your backyard, for example, it is relatively simple to lay bricks or concrete pavers to create a patio, under a favourite tree perhaps, or in a sheltered corner where you can enjoy the sun and avoid the wind.

You need about 52 bricks for a square meter of patio, and you can currently buy 1000 clay bricks (almost 20sqm) for about R1200 to R1500, to which you will need to add about R500 for some sand and cement. There is also a very wide range of concrete pavers and flagstones in all sorts of shapes and colours to choose from, or you may prefer to use imprinted concrete.

If you need to create shade, think about gazebos, umbrellas and shadeports as well as thatch lapas. The latter are currently being quoted at around R10 000 to R12 000 for 18sqm and if they adjoin your house you will incur additional insurance costs. A similar size shadeport will cost some R6000 to R7000.

“Meanwhile, if you are lucky enough to already have an undercover patio or veranda, think yourself lucky and make the most of it!”

CHAS EVERITT INTERNATIONAL

The Consumer Protection Act won't be as bad as many feel

2011-04-10T01:21:00.000+02:00

Many comments made recently on the implementation of the new Consumer Protection Act (CPA) suggest that it will rock the real estate industry to its foundations.

“However I don’t think that is going to happen,” says Berry Everitt, MD of the Chas Everitt International property group. “Of course the new legislation is going to be a big issue for us, and of course we are not faultless, but our industry does have a history of being proactive and positive when it comes to consumer protection so I’m sure we’ll manage very well.”

Writing in the latest Property Signposts newsletter, he says: “We should remember that estate agents initiated and policed their own strict Code of Conduct many decades ago, long before it was written into the Estate Agents Act.

“And since then, only a tiny percentage of the number of agents registered with the Estate Agency Affairs Board have been found guilty of contravening that code to the detriment of any consumer.

“What is more, many real estate companies have been preparing for months already in anticipation of the CPA coming into force, by changing their sale and lease agreements to ‘plain language’ documents that are easy for consumers to understand, and conducting extensive information and training sessions to refresh their agents’ understanding of the consumer’s rights in a property transaction.

“In short, I think the way the CPA affects us is going to come down to how we communicate with our customers, and my belief is that those companies that have put in the effort to build solid relationships with their customers, act on incoming information and deliver proper feedback will have very few problems with the CPA.”

Meanwhile, Everitt says, the CPA is unlikely in any way to dampen the demand for housing, which has been showing a steady increase all around the country since the last quarter of 2010.

“Even more encouraging is the fact that - thanks to lower home prices, lower interest rates and improved home loan approval rates – that demand is increasing fastest in the lower and middle-income segments of the market, which hold the keys to an overall recovery.”

Landlord Advice

2011-03-29T09:34:00.000+02:00

The main issue in being a successful (and less stressed) landlord is selecting the best possible tenants and ensuring the rental property is well maintained. If you don’t have the time to keep up a property on your own, or if you own several rental properties, you can very quickly become inundated. This is the main reason Chas Everitt Gauteng Rental Agents are selected in the first place – they are there to assist you on both points!

Pick your Rental Management Agency carefully.

If you are not going to personally manage your rental units, you are going to have to use a reputable agency to manage the process for you. Take the time to select a reputable agency with a proven track record. Ensure that the agency (and their staff) you choose is correctly registered with the Estate Agents Affairs Board, that their Fidelity Find certificates are current and that their staff are correctly qualified.

All references must be checked - properly.

Problem tenants are sometimes incredibly adept at creating a good impression and can pull the wool over even the most experienced of landlords eyes. It is imperative that genuine and verifiable references are obtained and that the necessary time and care is taken to check them out.

Male sure everything is in writing.

This is as important for your tenant as it is for you as the Landlord as it protects everyone’s interests. Whatever is agreed upon (or not!) must be reduced to writing. This includes everything from the initial application to agreements/rules/conduct issues etc. If something needs repairing get your tenant to make the request in writing despite the fact that they may have advised you in person or telephonically. It’s a good habit to help you keep track of expenditure and it ensures you have an accurate history for each property and tenant.

Offer your tenant a clean and SAFE property.

Keep your rental property clean and properly maintained. Not only does it make it a load easier to rent, it reduces any liability, makes for a happier landlord/tenant relationship and is simply a case of protecting your investment. In SA today, security is a key issue, depending on the location of your property to let, you may want to review/add/upgrade your security. This not only helps keep your tenants safe and makes for an easier let, it may also have a positive influence on your own insurance premiums.

Use a valid lease agreement.

SA is one of the most legislated environments in the world and laws are constantly changing with regards to the likes of the Housing Acts, Consumer Protection issues etc. It is absolutely vital that the lease agreement you use with your tenants is well-drafted and covers all the necessary issues. If you are handling your own properties, have your agreement checked by an attorney to cover the bases.

Adequately Insure yourself.

Make sure that you have the correct level of insurance, property liability insurance etc. If you have to claim or your rental agency needs information ensure you have all the information readily available – a tenant with a burst geyser who has to spend days waiting for this to be settled can become your worst nightmare!

Repair QUICKLY.

Tenants have the right to decent living conditions – and if there are genuine repair issues, attend to them promptly. If you are using an agency they will generally have a list of service providers available who can assist. Certain repair issues such as plumbing, appliances and electrical issues cannot be delayed.

Treat your tenant Fairly.

Look after your tenants and in the main they will look after you. Strive to treat your tenants fairly. Try and out yourself in their shoes and understand their position. Having a good relationship with your tenants makes your life a lot more pleasant and will pay dividends on the likes of longer let periods, reduced payment delinquency and a better cared for property!

Respect tenants right to privacy.

Whilst it is not unreasonable to inspect a property, spare a thought for your tenant and be understanding in the process. Most rental agencies provide the tenant with a schedule for inspections and will ensure that the matter is handled courteously and with fair notice.

http://www.chaseverittgauteng.co.za

Solid tips for showing smaller homes

2011-03-14T17:17:00.000+02:00

Size, or the appearance of size, unfortunately does count. Although most homebuyers these days can’t afford as much house as their parents and grandparents could, and although most of them don’t actually want the hassle of maintaining a large home and garden, they still want “space”.

“Translated, this means that they don’t want their home to look small and pokey on the inside, and they won’t buy one that feels that way when they view it,” says Berry Everitt, MD of the Chas Everitt International property group.

“This means that sellers marketing small homes have to take special care when preparing for show days to make their homes seem spacious and airy.”

And writing in the Property Signposts newsletter, he says the three best ways to do this are to:

* Get rid of clutter and superfluous furniture. “We suggest that you keep the kitchen counters clear, tidy your bathrooms, put away most of your ornaments and photos and remove at least one item of furniture from every room.”

* Let in the light. “This is a general rule for any home that will be put under the microscope by potential buyers, but is even more applicable for small homes. Open all blinds and curtains, and turn on lights if your agent will be showing the home that day. Blinds and curtains the same colour as the wall will make a room seem bigger, and so will a ceiling that is a lighter colour than the walls.”

* Accentuate your outdoor space or garden. “If you have a decent patio area, present this space as an extension of the limited living space. Display a nice table with a patio covering or umbrella, and spruce up the surrounding landscape with some plant containers filled with colourful annuals.”

ISSUED BY CHAS EVERITT INTERNATIONAL
FOR FURTHER INFORMATION CALL
BERRY EVERITT ON
011-801-2500 OR VISIT
www.chaseverittgauteng.co.za

President's goals need government ‘buy in’

2011-02-15T07:58:00.000+02:00

New job creation initiatives and continued strong action against crime and corruption were the two most important elements of President Jacob Zuma’s State of the Nation speech this week as far as the property market is concerned.

“The drive to create new jobs should of course translate down the line into more homebuyers,” says Berry Everitt, CEO of the Chas Everitt International property group, “while the strong stance on both white and blue-collar crime will make existing homeowners think twice about emigrating and should also encourage new investment in SA and further job creation.”

The job creation initiatives covered by the President included a new R9bn State fund for job creation, R20bn worth of tax relief for the manufacturing sector to encourage job creation and the ongoing public works / infrastructure programme that is expected to create millions of jobs, as well as moves to fill all the government posts currently vacant with properly qualified applicants.

The initiatives to combat crime and corruption in the public service included more money to boost the forensic, detective and crime intelligence capabilities of the police, and continued support for the special anti-corruption unit in the presidency.

However, says Everitt, the good intentions expressed at the highest level of government now need to be put into practice on the ground, by the various national, provincial and local authorities involved. “And we are concerned that many of them do not yet seem to have aligned their individual policies and actions with the national drive – a case in point being the proposed amendments to the Labour Act, which as they stand will actually make it more difficult for businesses to create jobs. “So what is needed now is urgent action to get everyone in government pulling in the same direction towards the stated goals.”

Thinking like a property buyer when pricing your home

2011-02-07T08:37:00.000+02:00

It’s tough to accept that your home might not be worth as much as you thought, but if you really want to sell, it helps to think about the price from the buyer’s perspective.

“All agents have at one time or another encountered a seller who is adamant about an asking price that is too high for current market conditions,” says Berry Everitt, CEO of the Chas Everitt International property group, “but there are two things that such homeowners need to bear in mind.

“The first is that estate agents are not trying to cheat you when they estimate a selling price that is perhaps lower than you expected. Their only objective is to help you achieve a satisfactory sale as soon as possible, and in the current market, that process must begin with making sure your home is attractive – in financial terms - to as many potential buyers as possible.”

The second thing for sellers to think about, he says, is the wider financial implications that a home purchase holds for any potential buyer. “Many sellers who have owned their properties for some time are unaware, for example, just how much upfront costs have increased since they bought their properties.

“Such costs include the cash deposit of 10 to 20 percent of the purchase price that the financial institutions now require almost all buyers to have, as well as transfer costs; bond registration costs and legal fees. On a home priced at R800 000, for example, the so-called hidden costs are currently about R43 500.

“In addition, sellers need to consider what sort of income a potential buyer would have to earn to qualify for the loan required to meet their asking price, given that the banks are very strict now about applying the National Credit Act and making sure borrowers will not be over-indebted.

“For example, to qualify for a R720 000 loan (after paying a 10% deposit for a house priced at R800 000), a buyer would need a gross monthly income of around R22 000 and a net income (after expenses) of between R7000 and R8000 “

Doing these calculations, Everitt says, can help sellers and their agents to compile a financial profile of the sort of person who could afford to pay their asking price. “And if they believe that the potential market is just too limited at that price, they might well consider lowering the price in return for the probability of a quicker sale.”

www.chaseveritt.co.za

To Sell or not to Sell…

2010-12-22T10:13:00.000+02:00

Making a call on whether you should sell your house is never an easy or simple one. There are numerous considerations, many of which aren’t necessarily easy to answer, but need to be given careful consideration - including the following.

For many, number one on the list is the impact a move can have on the family, particularly if you have children to consider. In this event, education and schooling play a huge role in the final decision. The importance of this issue is highlighted in recent research undertaken by a leading property web portal in South Africa who are now adjusting their property search criteria to include additional search capability around schooling needs due to the high numbers of potential online enquiries around this. Distance to schools, timing and the impact this has on relationships children have developed in their current school are all factors.

With many households today having two working partners, employment is also a biggie, and often arises when the likes of transfers or relocations are involved for one of the two. Investigation of employment opportunities for the other partner are critical. Leaping head first into a move only to find out that you will now need to be managing off of one salary can be a disaster!

One of the main points will always be affordability. It’s a fact that property prices have dropped around the country, no different to other parts of the world, and making sure that you have a good idea of what you will achieve on your sale is critical. Many folks today are in the unpleasant position of owing more on their home than what they can achieve on sale, and in this case unless financial pressure has a role to play, its better to hang in there. Transfer costs in South Africa are also high by international standards and you need to factor in all of the costs associated with a sale, a re-buy and relocation. A valid point is that its probably a good time to trade up – what you lose on the swings you may well gain on the roundabouts – losing 15% on the sale of your home can be made up for by some degree by picking up the same or a larger discount on the more expensive property you buy.

On moves with longer distances involved, relationships and family can also be a big influencer. Moving away from family and the support family offers can be traumatic – ask any of the folks who have moved to distant shores how much harder it is to cope without the additional help from the likes of Granny and Granddad and they will place this point high on their list. Obviously if you are moving closer to familial support, this can be a strong motivator.

Security in this country also features high on the “should I sell” conundrum. If you are currently living in the likes of a secure estate or complex, and have to consider moving out of this comfort zone, it’s another factor. Again the counter argument is that many times the reverse applies, i.e. moves are made into more security conscious or “safer” areas, and can be a driving force in the decision.

Its certainly not simple! Moves involve change and change is rarely without pain or discomfort. Take stock of all the issues involved, ensure you have non-emotively weighed up all the pro’s and cons and assess carefully, before making the move.

Issued by Chas Everitt Gauteng

Tread carefully when it comes to “DIY” property buying

2010-12-14T13:39:00.000+02:00

In tough economic times, there is an understandable tendency for people to start looking at saving a few heard earned Rands via employing various “DIY” strategies in an attempt to save money. Whilst this can prove wise in some areas, doing so in the property purchasing arena can often be a penny wise and pound foolish approach.

Buying and selling property is a tricky and convoluted process and there are many reasons why attempting to navigate these treacherous waters without professional help can be perilous. Here’s a few points to illustrate why using an experienced agent makes both financial and emotional sense:

Area knowledge and information when buying property is of paramount importance. We have all heard the expression that when buying property its, Area, Area Area… but how good is your intelligence on the area you are interested in? A professional estate agent is out there in your chosen investment area – daily. Most prospective purchasers have little opportunity to glean or access to real information to perform a detailed analysis on the suburb/area they are keen on, and here, working with an area expert can prove invaluable. Whereas prospective buyers are often limited to information they have sourced from the local property papers, the web or by viewing a few show houses, a knowledgeable agent, as an example, could tell you that whilst a particular property (that a buyer assumed was sold at the advertised price), was on the market for R2 500 000, was out there for 10 months and actually sold for R1 900 000. An area expert can provide you with reams of valuable data on what was sold, when it was sold and pricing norms to ensure you are making an educated buying decision.

Handling the documentation process. If you have ever bought a property, you are aware of the copious amount of paperwork involved in the process from start to end – and this in itself can be daunting. Using an experienced estate agent can make this process far less overwhelming – and safer! Phiwe Myeza from Chas Everitt Midrand commented “We recently had a client who came to us for assistance after getting hopelessly entangled in a “DIY” transaction where the parties had put together a DIY offer to purchase agreement – one which ending up causing the Buyer to lose the the property and around R50 000, due their failure to understand the process or provisions in the agreement”

Negotiations. Another area which can prove problematic is the negotiation process between buyer and seller when handled directly. An experienced agent acting as the “middle-man” cuts out a lot of potential hazards as well as the emotional rollercoaster that this situation can prove to be. John Cooper from Chas Everitt St Francis added “By and large a property purchase negotiation means that both parties emotions are running high and as experienced agents we are far better equipped to deal with this and remain objective”

Experienced agents are also able to offer buyers a network of tried and tested service providers to aid in the buying process and being able to tap into this is a major benefit. Whether its getting the best advice on finance requirements, legal, municipal or building issues, this support team can reduce your stress levels!

The reason the majority of property transactions are handled by estate agents is simple. For most people an estate agents local area knowledge, understanding of the process, experience, and their effort and commitment to guiding buyers in finding the right home makes them far better equipped when it comes to handling the home buying obstacle course.

Good news for property in latest employment statistics

2010-12-07T10:32:00.000+02:00

There’s a direct correlation between job creation and higher home ownership levels, which is why the latest employment statistics are cause for some end-of-year cheer in the real estate market.

So says Berry Everitt, CEO of the Chas Everitt International property group, who notes that according to the authoritative Adcorp Employment Index, employment in SA increased by an annualised 2,83% in October, following a depressing 1,2% decline in September.

“Some of this increase is no doubt due to a seasonal increase in staffing levels ahead of the forthcoming holidays, as Adcorp points out, but another set of stats provides hope that at least some of the new jobs will be permanent,” he says.

“These come from a survey conducted by the SA Recruiters Network, an online network environment for recruitment and human-resource professionals around the country, in which 77% of respondents said they were currently appointing new staff, and more than 30% said they were looking to fill at least 100 positions during the next financial year.”

And, says Everitt, there has been more good news on jobs in the past month, when Government specifically committed to prioritising employment creation in all economic policies in order to reduce the unemployment rate from 25% to 15% over the next 10 years.

Writing in the Property Signposts newsletter, he says the plan, detailed to the economic development committee of the National Assembly by Economic Development Minister Ebrahim Patel, aims to unlock “employment potential” in infrastructure, agriculture, mining, the green economy, manufacturing and tourism, as well as in high-level service industries.

“It also includes welcome initiatives to promote competition and better pricing of consumer goods and basic construction and agricultural inputs; to cut wasteful spending and tackle corruption in government; to achieving a new pact between business and labour in order to save and create jobs, and to substantially step up government support for skills development.

“This is very encouraging and we feel sure that it will have a positive impact on housing demand as it is rolled out.”

ISSUED BY CHAS EVERITT INTERNATIONAL www.chaseveritt.com

Realestateweb - The world`s top performing property market - Top Stories - South Africa's fastest-growing property website

2010-11-03T08:39:00.000+02:00

Realestateweb - The world`s top performing property market - Top Stories - South Africa's fastest-growing property website

A Great Future In Micro-franchising

2010-11-02T01:39:00.000+02:00

For many matriculants and students, this is a worrying time of year – not only because of exams but also because their employment prospects are poor even after they have qualified, and they are desperately wondering how they will make a living in future.

“Meanwhile for those people already employed, low inflation means that current salary growth prospects are not great either, “ says Chas Everitt International sales director Barry Davies. “But fortunately South Africans and SA companies such as ours are beginning to take note of the success elsewhere in the world of the micro-franchising concept, which is being hailed by many in the international development community as a great tool for creating real prosperity.”

It is well-known, he says, that there is a direct correlation between the strength of the franchise economy in any country and the average per-capita income of its residents. “There is no doubt that franchises create wealth, provide jobs, and increase incomes, but of course most traditional franchises are expensive.

“And this is where microfranchising steps in, as a business model where a significantly scaled-down price tag makes it accessible to individuals and small businesses, without losing any of the benefits of a powerful brand name or a proven operating system.”

Davies says Chas Everitt International believes real estate is one of the economic sectors in which micro-franchising can be most successfully applied – as per its Notebook® licence model which has already attracted more than 20 operators around the country.

“We specifically designed Notebook® to be used in smaller towns and specific areas where the size of the market would not justify the costs of establishing a full franchise, and it is absolutely true to the definition of micro-franchising in that it gives an operator full access to our strong brand and a rich array of support services without major start-up expenses or ongoing royalties.”

Condequently, he says, the company has plans to extend the concept into other areas that are critically underserved in real estate terms – notably the old townships but also country towns and villages where there are currently no estate agencies.

“There is huge potential in these areas for real estate entrepreneurs as well as for qualified, experienced business people who would like to write their own cheques for a change, and we believe that Notebook® is the ideal vehicle.”

*For further information about Notebook®, call Barry Davies on 011 801 2500 or visit www.chaseveritt.com

Take care when packing to escape the "Rat Race"!

2010-10-19T09:08:00.000+02:00

Every summer, a certain number of the people enjoying a well-earned break after a tough year at the office will fall in love with their holiday destination and decide to throw up their lives elsewhere and relocate permanently.

Estate agents see this often, especially in coastal towns where the holiday season usually means great weather, a relaxed and friendly atmosphere and steadily ringing tills that are all very attractive to anyone looking to escape the “rat race”, says Berry Everitt, CEO of the Chas Everitt International property group.

“But while it is often a good idea to buy a holiday home or a rental property in a popular tourist town, the truth is that anyone who still needs to work or run a business to provide for themselves and / or their families should be extremely cautious about moving there lock, stock, and barrel.”

Writing in the Property Signposts newsletter, he notes that many places that are great holiday or even retirement destinations don’t actually offer many new employment or business opportunities for permanent residents and are really quiet out of season.

“So if you could find a job or a business to buy in such a town you would in most cases need to be sure that your seasonal earnings would carry you for the rest of the year.”

And even in places where there appears to be room to start new, non-seasonal businesses, Everitt advises, you should at least wait for the holiday glow to wear off before making any life-changing decisions.

“Then if you’re still determined to relocate, you should seek professional advice and do some serious number crunching before making any investment.”

Issued by Chas Everitt International

For further information call

Berry Everitt on

011 801 2500 or visit

www.chaseveritt.com

Keep your cool when banks ask questions

2010-10-05T11:05:00.001+02:00

More and more financial institutions rely on automated credit scoring systems when making lending decisions, but even these sophisticated systems can have trouble processing certain parts of your credit history, and it’s then that you’re likely to get a call from a human asking for an explanation.

“But this is no reason to panic about not getting the loan,” says Berry Everitt, CEO of the Chas Everitt International property group, “and certainly no time to get defensive and hot under the collar.

“You may well have been very good about keeping your credit rating up by never borrowing more than you could afford and always paying your bills. But it is also quite possible that in the past few years you have made some payments ‘late’ and that these are showing up on your record.

“It is important to understand that what credit bureaux and banks regard as ‘late’ payments are those made more than 30 days after the due date on the account, and that most will require an explanation for such incidents, even if they seem minor to you.”

The best course in these circumstances, he says, is always just to tell the truth. “For example, if you genuinely can’t recall why the monthly payment on a store card was made late once two years ago, say so. If you missed paying a telephone account because you were away on holiday, say so. Be honest if something happened that made you forget to post a batch of cheques one month.

“This sort of thing happens to everyone, and banks generally don’t expect a perfect credit record. Usually what they want is just to obtain a reasonable explanation from you that they can fill in opposite any credit query that their automated system has thrown up.”

Everitt says that those with really big credit problems in their past, such as bankruptcy or home repossession, should also be totally honest about it - and provide a full, detailed and documented explanation to their bank or originator before applying for a new loan.

“They should know that there is still a good chance of getting a loan if they can show with third-party verification that what happened was beyond their control - because of an accident, for instance, or because of a sudden serious illness or the loss of a job – and that their circumstances have now changed for the better.

“On the other hand, there is virtually no chance of a loan if they try to hide the earlier problems and they emerge during the bank’s application evaluation process.”

Issued by Chas Everitt International

For further information call

Berry Everitt on

011 801 2500 or visit

www.chaseveritt.com

Don’t let energy costs end home ownership dreams

2010-09-29T18:47:00.000+02:00

Increasing energy costs like rising electricity charges are problematic for everyone, but especially for those who are trying to become homeowners.

However, says Berry Everitt, CEO of the Chas Everitt International property group, there are steps they can take to make sure that energy costs don’t put paid to those dreams.

“The first of these is to try and save more for a home purchase deposit – by finding rental accommodation that is energy-efficient and will thus cost you less each month.”

What you should look for, he says, is a rental unit that has its own electricity meter rather than a shared one, and preferably a prepaid meter. This will allow you to control your own expenditure on electricity.

“In addition, you should seek out rental units where the owner has invested in energy-saving improvements like proper insulation, a solar geyser or heat pump and perhaps a gas stove. These will help you save even more each month.”

Secondly, says Everitt, you should be seriously energy-conscious when you go househunting.

“Many first-time buyers gravitate to newly-built homes because they assume that such homes will automatically be more energy efficient. But this is not necessarily the case and you shouldn’t overlook resale homes that may have been renovated specifically to take account of the new energy considerations.”

Also, when viewing existing homes, you should ask to see copies of the municipal service bills for the past year so you can make comparisons which may help you decide which property to purchase.

“You don’t want to buy a ‘bargain’ only to find that it costs you a fortune in electricity each month, and in any case you want the estimated municipal charges you will have to pay as a homeowner to be as low as possible because they are taken into account by the banks now when they are calculating whether or not you qualify for a home loan,” he says.

Issued by Chas Everitt International

For further information call

Berry Everitt on

011 801 2500 or visit

www.chaseveritt.com

Controlling speeding in Residential Estates

2010-09-15T18:20:00.000+02:00

For those of us who have paid the premium attached to living in a South African lifestyle estate, the issue of safety (for both ourselves and our children) is often a primary reason behind the decision to financially leverage ourselves to the hilt and take the plunge.

A component of that safety issue (outside of the traditional security reasons) is the idyllic notion of our children being able to roam around our peaceful estate on foot or bikes, and enjoy the luxury that we experienced as children "back in the day", or as my children note...in olden times.

The reality is somewhat different as very often, and particularly in the larger estates, our very own local Grand Prix wannabes with vehicular horsepower levels rated at 10X their IQ levels, turn the imagined tranquility into the proverbial accident waiting for a place to happen. And in all seriousness this can be a deadly problem.

The posted speed limits within the estates are there for a reason, they are in place to keep the residents (and visitors) safe, and the Home Owners Association has a responsibility and duty to take all rational and reasonable measures to protect the residents. Now whilst this is often not a popular topic for many, its one which has to be addressed and enforced, and there are a number of control measures which can be adopted to achieve the desired result

If necessary a Safety Panel or Committee can be elected to research the speeding problem and provide solutions to reduce speeding.

Most estates utilise newsletters and communications, both printed and electronic, these days, which are ideal for constantly driving (pardoning the pun) the speed control issues on an ongoing basis. Many estates these days also maintain contact with residents via the use of websites, text messaging, intranets and Social Media pages, another ideal medium for regular resident speed reminders.

Entrances to estates are another contact point where prominent signs together with notices which can be handed to visitors. Regular visible reminders of the speed limit as well as the penalties for exceeding them can also be displayed here as well as at strategic points within the estate.

If there are identified speeding hot spots, placing a speed radar unit at these points which display a driver's speed to remind them of the need to abide by the regulations. Estates these days also need to ensure that speed signs are well posted and clearly visible and the likes of speed bumps and traffic circles are correctly positioned to limit speedsters.

Many estates use radar devices via their own internal Home Owners Association's which are empowered to fine residents, or in the case of visitors, fine the relevant resident they are visiting to enforce the rules. Whilst these are never popular, a roaming authorised "Estate Traffic cops" with the ability to hit the pocket can be effective!

Whilst this is by no means a comprehensive list of all the measures available to HOA's, and there are a number of others by which more stringent and practical controls can be implemented in estates, whatever methods are adopted, they need to be clearly contained in the rules and all residents, or the required quorum need to have agreed to them - in writing. This, together with ensuring the buy in and participation of the owners and residents, will prevent tragedies and make the estate both safer and more enjoyable for all.

http://www.chaseveritt.co.za/

Don't knock the interest rate gap

2010-09-09T19:08:00.000+02:00

There has been some debate again of late about whether the fixed difference between the repo rate and the prime rate of interest is too large at 3,5 percentage points, and whether government should move to shrink it, but property experts are arguing against such a move.

The difference means that with the 50 basis point decline in the repo rate this week, the prime rate will drop to 9,5%, the lowest level it has reached in almost 30 years.

“The 3,5% is the difference between what banks must pay to borrow money and what they charge consumers to borrow from them,” notes Berry Everitt, CEO of the Chas Everitt International property group, “and there are many who think this margin is too big at a time when most consumers are still heavily in debt and battling to make ends meet.

“However, there are several other important factors to consider, the first being that banks have to put a percentage of every loan extended into their reserve funds, which cuts into their profits but provides a prudent hedge against bad debt.

“Banking legislation has seen this reserve requirement increased in recent years and thank goodness, because it enabled the banks to be much more accommodating towards borrowers in distress and default during the recent economic downturn than was possible in the late 1990s, for instance, when soaring interest rates resulted in thousands of people losing their homes.”

What is more, he says the banks have only recently begun to show more confidence in lending again, “and that should not be discouraged in any way as it is critical to the full recovery of the property market in particular and the economy in general”.

Thirdly, Everitt says, those calling for the differential between the repo and prime rates to be cut should also consider the many, mostly elderly people whose only income is the interest on their savings.

“Their incomes have been eroded considerably by the eight interest rate decreases since December 2008 and would no doubt fall further if the banks’ 3,5% margin were to be decreased.”

Issued by Chas Everitt International

For further information call

Berry Everitt on

011 801 2500 or visit

www.chaseveritt.com

New Chas Everitt license in Clarens Golf & Trout Estate

2010-09-08T17:07:00.000+02:00

The Chas Everitt International flag is now flying high at The Clarens Golf & Trout Estate, close to the picturesque village known as the Jewel of the Free State, thanks to the decision of a local property expert to purchase a Notebook® licence.

George Page, who was involved in the development of the estate at an early stage, is a veteran of the property industry who decided to settle in Clarens and focus exclusively on the sale of homes in the estate and in the village itself

And he has, he says, been looking for some time for a franchise or other offering that would enable this niche business to tap into an existing national and international branding and marketing infrastructure without necessarily incurring all the costs usually associated with becoming part of a major franchise group.

“The Clarens market is just too small to justify the usual franchise fees and royalties,” he notes, “but I realised at once that the Notebook licensing model offered by Chas Everitt was ideal for my needs. Specially designed for specialist agents and independent principals like myself who operate in single suburbs, small towns or rural areas where the sales volumes do not justify the costs of a full franchise, it enables me to use the high profile brand in my specific license area and at the same time gives me access to the group’s awesome marketing infrastructure.

“What this means in my case is that I can now easily market the exceptional properties at The Clarens to the whole of South Africa and the world.”

Purchase options in the estate include lodges, villas and residential stands overlooking the golf course, and ownership includes golf club membership. Home prices range from around R1,8m to R7m and there are currently some two-bedroom, fully-furnished villas available for less than R2m.

Set against a backdrop of the spectacular sandstone mountains for which Clarens is renowned, the estate features a superb par-71 golf course designed and constructed by Golf Data that meanders along and across a tranquil river and a series of dams and cascading waterfalls.

It also boasts some of the best trout-fishing spots in the country, due to the inflow of icy streams from the surrounding mountains that keep the water at the low temperatures that encourage trout activity and ensure great sport for avid anglers.

The nearby village of Clarens is also renowned for its art galleries and craft shops and in the autumn especially attracts many artists, photographers and nature lovers looking to capture the beauty of the local scenery. It is also an increasingly popular weekend getaway for jaded city dwellers who want to experience outdoor activities such as horse riding, river rafting, mountaineering and hiking.

Issued by Chas Everitt International Property Group
Contact George Page on 082 896 2747
www.chaseveritt.co.za

Cut your home power costs with heat pumps

2010-09-05T20:11:00.000+02:00

Everyone knows that the geyser is the biggest energy-glutton in the house, gobbling up 30 to 50% of the monthly electricity usage all by itself.

But not everyone is convinced that the best alternative is necessarily a solar geyser, says Berry Everitt, CEO of the Chas Everitt International property group.

“Another option is a heat pump, which can deliver the same heat output as an electrical element for about one-third of the electricity consumption.”

“Heat pumps utilize free energy by extracting heat from the atmosphere and transferring it efficiently to the water in the geyser. They use only a little electricity to power the process and they are designed to operate even in winter and even when it rains.”

Writing in the Property Signposts newsletter, he notes that a regular heat pump will heat 200L of cold water to 60degC in about an hour even if the air temperature is only around 5degC.

“Heat pumps are also easy to install. They are compact and do not rely on direct sunlight for performance, so can be mounted low to the ground and out of sight at the rear of the home.

“What is more, heat pumps can also be used instead of energy-guzzling air conditioners to heat and cool your home very efficiently, and to heat swimming pools and spas.”

And because their main energy source is natural and renewable, Everitt notes, they are also a great way for homeowners to reduce their carbon footprint as well as their electricity bills.

Issued by Chas Everitt International

www.chaseveritt.com

http://www.chaseverittgauteng.co.za

Explanation on early bond termination penalties

2010-08-31T18:15:00.000+02:00

When the home loan is granted the normal period that the client will take to repay the bond is 20 years and the prevailing bond rate at that time will apply. The Usury Act permits a bond holder to make payments in addition to the stipulated monthly instalment at any time.

However, should the bond holder wish to pay the full outstanding balance of the loan in one amount prior to the due date (the bond has to be in the books of the bank for 3 years), the following provisions will apply:

The bond holder is required to give the bank 90 days notice in writing of the date the payment will be made.
The notice may not be given before the expiry of a period of 90 days from the date when the loan was registered.
The act clearly stipulates that the bank has the right to have an account on their books for a minimum period of 180 days from inception i.e. 90 days have to lapse after registration of the bond and then 90 days notice, which should be furnished to cancel the bond within the 3 year period.
This allows the bank to recoup some of their origination costs as a result of the potential interest income that will be lost. It takes anything up to 3 years before a loan becomes profitable to the bank.

The early termination fee is not a penalty imposed by the bank, but a recovery of interest income, which is specifically provided for in legislation.

Accounts to which early termination would apply:

When a bond is cancelled within the first 3 years after registration with effect from 1 October 2001.
All home loans with a fixed or capped interest rate agreement.
This allows the bank to recoup some of their origination costs as a result of the potential interest income that will be lost. It takes anything up to 3 years before a loan becomes profitable to the bank.

Process to determine finance charges debited to your home loan account:

90 Days interest is calculated on the outstanding balance at day of notice.
The provisional figure is added to the outstanding balance together with other allowances such as insurance/assurance and admin fees, etc.
On final cancellation, the unexpired portion of 90 days interest will be charged and debited to the bond account, and will be due by the bond holder.
Refund of early termination interest charged:

Should the customer take out a new bond with the bank within 6 months of settling the previous home loan account, the client needs to advise the cancellation department of the new account number.
The refund will not be considered until the new bond is registered.
To avoid early termination – give 90 days notice!
This information may be valuable to investors as they often buy off-plan and sell on once the project is completed, which means they have not paid a single bond repayment and penalty interest will apply. So, take heed of the above information to avoid these costs, or make sure you factor the cost into your new sale price.
Please note: This information may vary from bank to bank and it is recommended that you check the rules with your bond consultant.

Riki Scruton
General Manager
Chas Everitt International Property Group Sandton & Northern Johannesburg
Mobile: +27 (0) 82 558 5086
Tel: +27 (0) 11 463 2033
Fax: +27 (0) 11 463 2036

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Realestateweb - Deeds office strike: more bad news for property - Top Stories - South Africa's fastest-growing property website

2010-08-23T18:06:00.000+02:00

Realestateweb - Deeds office strike: more bad news for property - Top Stories - South Africa's fastest-growing property website: "Current turnaround time for deeds is 13 - 14 working days, going to get worse."

Amendment of The Financial Centre Intelligence Centre Act [Dykes van Heerden Attorneys]

2010-08-23T17:53:00.000+02:00

For any estate agencies out there, the Financial Centre Intelligence Centre (hereinafter referred to as ”the Centre”) is in the process of enhancing its operating systems in order to optimize its services.

It is now a requirement that due to an upgrade of the Centre’s website, estate agencies (indeed all accountable institutions) to use the following new forms (which forms are available on the website) when a report is being filed:

Suspicious Transactions Report (hereinafter referred to as “STR”)
Terrorist Property Report (hereinafter referred to as “:TPR”)
Cash Threshold Report (hereinafter referred to as “CTR”).

In addition an estate agency is now required to acquire new login credentials from the Centre in order for the estate agency to file reports in terms of the new systems. Please be advised that your existing log on credentials will expire shortly.
You are therefore advised to visit the Centre’s website: www.fic.gov.za in order to acquire new log on credentials and also to advise the Centre of the name and contact details of the compliance officer duly appointed.

Roll-Out of Cash Threshold Reporting Process
From the 1^st of December 2010 estate agents will be required to file a CTR with the Centre in order for the Centre to monitor cash transactions which can potentially be identified as proceeds of crime in order for the same to be investigated.

Definition of Cash
Cash is defined as coin and/or paper money and travelers’ cheques.

What is excluded from the Definition of Cash?
Any negotiable instruments, transfer of funds by means of bank cheque, bank draft, electronic funds transfer, wire transfer or other written order that does not involve the physical transfer of cash.
The threshold for reporting is the sum of R25 000, 00 and above. This amount can be made up of a single cost transaction to the value of R25 000, 00 or an aggregation where multiples of smaller amounts would add to the threshold of R25 000, 00.

What is included?

Any cash payment received by the estate agent exceeding R25 000, 00 will have to be reported
Where an estate agent pays a client physical cash in excess of the threshold this amount will also have to be reported
An estate agent will be responsible for reporting cash in excess of R250 000, 00 in the event of the agent receiving cash on behalf of (for instance) a purchaser from a bank or other third parties.

If cash is received into the estate agency’s bank account then the reporting duty is on the estate agent and on the bank as well to report the cash transaction to the Centre.
The reporting duty arises when the agent becomes aware of the cash payment to the value of R25 000, 00 or more, i.e. when the agent physically receives the cash or paid out the cash or it peruses in its bank statement or it receives a bank deposit slip in respect of a cash transaction exceeding R25 000, 00 or more.

Electronic Method
The Centre has developed an electronic process, making use of an internet portal on its website facilitating the filing of a CTR.

Who is required to obtain login credentials?
It is clearly stated that each branch of an estate agency is regarded as a separate accountable institution and is required to acquire separate login credentials from the Centre. For example, if estate agency X has 40 branches throughout the country, then each individual branch will have to acquire separate secure login credentials i.e. 40 different login credentials will have to be acquired.
Should you need any additional information, please do not hesitate to contact the Dykes, van Heerden team or alternatively, you can visit the Centre’s website on www.fic.gov.za.

Tel: (011) 279-5000
Fax: (011) 955-4799
E-mail: info@dykesvanheerden.co.za

iafrica.com | property | news House prices power ahead

2010-08-18T22:00:00.000+02:00

iafrica.com | property | news House prices power ahead

Much cheaper to buy than to build: Fin24: Personal Finance: Property

2010-08-18T10:14:00.000+02:00

Much cheaper to buy than to build: Fin24: Personal Finance: Property: "Much cheaper to buy than to build"

Business Report - Home - Most property sellers drop asking prices

2010-08-17T16:57:00.000+02:00

Business Report - Home - Most property sellers drop asking prices

Home businesses CAN be a good thing

2010-08-16T08:23:00.000+02:00

Home-based businesses in security villages and estates have become a tricky question for the bodies corporate and home owners' associations (HOAs) that run such developments.

On the one hand, a home business that generates lots of customer traffic, deliveries, noise or unpleasant odours is clearly undesirable in a residential environment, and particularly in a gated development where it might also compromise the security system.

"But on the other hand," says Berry Everitt, chief executive of the Chas Everitt International property group, "many home businesses are technology-based and consist of just a couple of desks and computers in a spare room or garage.

"They are completely non-intrusive and should perhaps actually be encouraged, because people working at home enhance the security of the community by providing extra 'eyes and ears' at times when most other owners are away from their homes."

Writing in the Property Signposts newsletter, he says people working at home are usually doing so to generate additional income, which reduces the likelihood of unpaid levies or assessments.

"And there is also the thought that owners do have a right to use their homes as they please, provided they don't breach the HOA's appearance or safety rules - or any local authority bylaws," says Everitt.

Mortgage fraud on the increase

2010-08-13T18:05:00.000+02:00

It's not much discussed, but mortgage fraud is becoming more extensive and could well be adding to the banks' current extremely cautious approach to lending.

There are 101 varieties of mortgage fraud and the real scale of the problem is only just becoming to emerge, but in most cases the lender is definitely at risk in these schemes. If you add this worry to the restrictions of the National Credit Act, it's really no wonder that the banks are much more wary about lending than they were previously.

At a national mortgage fraud seminar held late last year, Absa Home Loans Operations GM Pieter Vorster told delegates that an estimated R300m worth of fraudulent home loan applications had been blocked by the banks. And Greg Salter, the Nedbank Home Loans GM for Special Projects, Risk and Compliance, noted that mortgage fraud was increasingly being perpetrated by international crime syndicates using advanced technology.

Indeed the FBI recently noted that mortgage fraud is increasingly being favoured by criminals who see it as a low-risk activity generating relatively high returns.

However, the most common form of mortgage fraud is still income inflation by individuals, that is, the falsification of income and debt information and documentation to help applicants obtain home loans, or perhaps bigger loans than they would otherwise have been granted. This immediately exposes the lender to the risk of non-payment, since the borrower may not really be able to afford the monthly instalments, especially if interest rates rise.

And it is of course absolutely illegal so anyone who advises the would-be borrower to provide any false information in loan documentation is also putting that borrower at risk.

Potential buyers should never to be cajoled into making false statements on loan applications, including overstating your income, understating your debt, or lying about the source of your deposit or the nature and length of time of your employment. And if the person helping you make an application insists that ‘everyone else does this' or that it is ‘quite legal', ask them to put that in writing. You can be sure it won't happen!

Chas Everitt International Property Group

Deposits and Buying “Off Plan”

2010-08-13T10:11:00.000+02:00

Your deposit should be carefully arranged if you're a homebuyer purchasing "off plan" - or in advance of your home actually being built - you will most likely have more money issues to deal with than those purchasing a prc-owned property. And the first of these is the matter of the deposit.

It is very important Chas Everitt International property group says, that you do not pay any deposit for a stand or an off-plan home - or sign any agreement to purchase such a home - until you have thoroughly checked the credentials of the developer and/ or home builder and made sure they are well-established operators with a track record of completed and successful developments.

You should also make sure that your deposit is only paid into the trust account of an attorney or a registered estate agent - not the bank account of the developer or builder. There have been far too many cases in recent years of bogus estate agents, builders' agents and construction companies taking deposits for proposed developments and then simply vanishing.

Commenting in the Property Signposts newsletter, Berry Everitt says the second thing to consider is the possibility that you may need two separate home loans - one to pay for a stand and the other for the actual structure - if the development is not sectional title. "The second loan is often called a 'building loan' and is used to pay the building contractor in installments known as 'draws'.

These are paid as certain stages of the building work are completed to the satisfaction of the financial institution." "However, you as the buyer will have to sign each draw form authorising the bank to pay. so you can have a large measure of control over the way the work is done. And you should exercise this control by visiting the building site frequently and monitoring the workmanship closely so that any problems can be rectified immediately - and certainly before the builder collects the last draw."

In addition, says Everitt, you should never occupy or sign for the keys to your new home before you've checked it over thoroughly once more, and got the builder to agree in writing to rectify any remaining "snags". "And lastly if you're a VAT-vendor or are buying the property in the name of a VAT-registered enterprise, you should consult your accountant about reclaiming the VAT payable on the purchase of a newly-built home."

Don’t lie on bond application - Latest News, News - Property24.com

2010-08-11T05:06:00.000+02:00

Don’t lie on bond application - Latest News, News - Property24.com

Seven traits of successful agents

2010-08-06T10:54:00.000+02:00

NOW more than ever, homeowners need professional help when they decide to sell their properties. In short, says Berry Everitt, CEO of the Chas Everitt International property group, they need agents that really know how to reach potential buyers, have the latest market information at their fingertips and can handle tough negotiations while also maintaining excellent relationships with lenders.

“The first thing to look for when you are choosing an agent to market your home is someone who is in the real estate industry full-time.It is difficult, for example, for an agent to give you good advice about an asking price unless he or she lives and breathes real estate and keeps constant track of sales in your area.”

Writing in the Chas Everitt Property Signposts newsletter, he says other traits that make a top agent are;

Passion, enthusiasm and dedication: You want an agent that will go the extra mile to get the best results, even when the going gets tough.

Market savvy: Knowledge is the key to attracting buyers and achieving consistent sales in a given area – including your property.

Creativity: Your agent should be able to write offers to purchase that excite the buyer as much as you, and to be able to think “out of the box” to reach solutions if negotiations bog down.

Sensitivity and empathy: Tighter lending requirements are a primary concern in today’s market. A good agent will know the right questions to ask buyers about money without offending them, and be able to make suggestions about how you can make the deal more attractive.

Technology savvy: Most home transactions today begin on the Internet. In addition, more and more people are conditioned to receiving information the moment it becomes available. You don’t want to lose a buyer because your agent was slow to put your listing out there.

A team mindset: A good agent will have at least one good assistant and a strong network of other professionals and service providers such as mortgage originators, insurance agents, home inspectors and handymen that you can tap into.

For more information call Berry Everitt on 011-8012500 or visit www.chaseveritt.com

Some home truths about home pricing

2010-08-04T16:42:00.000+02:00

Oddly enough, the last thing most home sellers want to think about when their property is not attracting offers is price – even though they themselves may be extremely value conscious when looking at homes to buy Chas Everitt International Property Group note in the latest Signpost Newsletter.

This is clearly evident in the latest statistics from First National Bank which show that 80% of sellers are still having to drop their asking prices in order to achieve a sale. And the average drop is around 12%, which means that most sellers are quite seriously out of step with what buyers are actually willing or able to pay.

Such sellers will usually argue that prospective buyers are quite at liberty to make lower offers, but the fact is that serious buyers will usually not make any offer at all on a home they consider to be overpriced, especially if there are many properties on the market for them to choose from.

Others will shy away from making a lower offer because they don’t want to offend the seller, even if they really like the property.

And sellers need to face up to the fact that buyers usually know the market better than they do. Sellers may look at a few homes before listing theirs for sale. But buyers have frequently looked at dozens of homes over a few weeks or months by the time they decide to make an offer - and acquired a finely tuned idea of value as well as a sense of which way the market is tending.

So if your home is not attracting any interest after a couple of weeks on the market, you should consult your agent and seriously consider lowering the price as soon as possible. Sellers who do this when the listing is relatively new and the home still fresh in potential buyers’ minds stand a good chance of keeping the marketing momentum going. Those who don’t will, inevitably, end up with an unsold property that is “stale” – or about as attractive to buyers as last week’s bread.

With Property, the view’s just part of the package

2010-08-04T16:01:00.000+02:00

Homebuyers are accustomed to the idea of paying a premium for a property with a view, like a “house on the hill” or an apartment overlooking the sea, says Chas Everitt International Property Group MD, Berry Everitt in the latest Signpost Newsletter.

But just how much value does a view add? In an area where most homes have views you’ll probably pay a smaller premium to have one than in an area where view homes are scarce. On the other hand, buyers will usually pay an extra premium for a view that is wholly unobstructed by any other homes, power lines or trees.

However, even buyers prepared to pay extra for a view are unlikely to do so unless the property as a whole is in good condition and has facilities such as a second bathroom or proper garaging that warrant the higher price. A small, run-down home with a spectacular view will for example have limited appeal even to view buyers, because most of them will be reluctant to spend even more on renovations or additions.

The local buyer profile will also affect the value equation. If most buyers in an area are looking for homes in which to raise children, but all the view homes available are tricky to access or have no gardens, those properties may actually be hard to sell and fail to command any premium at all.

And of course no view can compensate for a neglected area at risk of going into a decline. In fact, it might even become a hindrance, since the view property you paid a premium for will be harder to sell than others if prices in the area start to fall.

New sparkle in Benoni market

2010-08-01T17:53:00.001+02:00

Top schools, excellent retail and sporting facilities and a relaxed lifestyle in a well-run town have made Benoni the “jewel of the East Rand” and underpinned local housing demand.
Andre van der Merwe, who recently acquired the Chas Everitt International franchise in Benoni from long-time owner Patsy Pretorius, says: “One reason for the general stability of our residential market is that it offers wide range of properties to suit all types of potential buyers, from starter homes at around R400 000 to luxury homes in exclusive estates priced at up to R10m.
“Another big draw card is the fact that Benoni has a string of well-known private and public schools in its suburbs, such as St Dunstans College, Ashton College, Brandwag High and Benoni High. Indeed, many of the enquiries we get from out-of-town buyers are specifically for homes close to one or other of these schools.
“In addition, the town has excellent shopping facilities including Lakeside Mall and Northmead Square, three golf courses, the Rynfield Dam which caters for boating enthusiasts and the Homestead Lake in Farrarmere which has a sailing club.”
Van der Merwe, a lifelong resident of Benoni, says the strongest buying trends at the moment include the rejuvenation of older suburbs as young families looking for bigger homes move in and undertake extensive renovations; and considerable activity on the parts of investors and young buyers who are snapping up anything that looks like a bargain – “sometimes as quickly as within two weeks of properties being listed”.
Having established an accounting practice in Benoni in 1986, Van der Merwe soon branched out into the purchase, redevelopment and resale of commercial properties, gaining invaluable experience as a developer and landlord.
Then in 2001, he sold his shareholding in the accounting practice and turned to property full time. “And now the fact that I have an extensive network of business associates in Benoni and a keen sense of the local property sector makes the marketing of property the next logical move.
“Also carefully considered is my decision to acquire the Chas Everitt franchise which I believe will enable me to make the most of my local property knowledge and really put it to work on behalf of clients because of the group’s impressive array of marketing channels and its commitment to superior technologies that free up productive time by really simplifying the ‘back of house’ administration.”
Chas Everitt Franchising director Barry Davies says: “The East Rand is a key region for the group, and Benoni is a centre in which we are eager to expand our market share. Andre has a great track record in business, expertise in property through his years of investment and development as well as great energy and fresh thinking – I have no doubt he is going to make an impact and is a valuable addition to the Chas Everitt family.”
Issued by Chas Everitt International
For further information call
Barry Davies on
011-801-2500 or
Andre van der Merwe on
082-563-4880 or visit
www.chaseveritt.com

Scam at Deeds Office raises fears about home title security � Chas Everitt Notebook

2010-08-01T17:25:00.000+02:00

Scam at Deeds Office raises fears about home title security � Chas Everitt Notebook

Deeds Office scam raises fears about home title security

2010-07-26T20:24:00.000+02:00

Skulduggery in the Deeds Office that has seen more than 70 municipal and corporate properties fraudulently transferred to shady private companies since December last year raises the strong possibility of SA property owners now having to take out title deed insurance, as is the case in the US and other countries.

So says Berry Everitt, CEO of the Chas Everitt International property group, who notes: "Top officials who held positions of great trust at the Deeds Office have been implicated in the irregular transfers and fraudulent alteration of the title deeds registry, and the Hawks have been drawn into the investigation so there is a strong suspicion that there is a criminal syndicate involved.

"At the very least, this scandal has proved that the Deeds Office security procedures can be compromised - and that SA property owners may not in future be able to rely entirely on these for their security of tenure."

And that, he says, is a "very scary prospect", which immediately raises the question about the need for title insurance to be introduced in South Africa.

"This type of cover is a requirement in the US, for example, for almost anyone with a mortgage and the way it works is for the property owner or buyer to pay a once-off premium to a 'title company' that guarantees undisputed ownership of the property at the time of purchase, and will alert owners to any attempt to illegally transfer it to anyone else.

"Owners with this type of insurance can usually also expect compensation if there turns out to be some 'defect' in the title that could inhibit the use or resale of the property, such as a servitude over the property, or some previously undisclosed lien in favour of a third party like the municipality.

"And in most cases title insurance also gives the bank that provided the home loan to purchase the property peace of mind regarding the safety of the asset and title that secures the loan."

Title insurance, Everitt explains, is thus different from normal insurance in that it protects you against events that may have occurred before you took out the policy, not events that may occur in the future. "And given that, its cost is usually minimal when weighed against the protection it can provide."