As all buyers are probably aware being absolutely sure of what you are buying is very important.This leads most people to enlist the services of a property inspector.This could save you alot of headaches in the future as  most sale agreements these days include a  “voetstoets”  clause.This means that the property is sold as is including any defects there may be to the property on offer.This clause usually works to the sellers advantage protecting them from further claims by the buyer regarding defects to the property.

So it is very important to have everything checked out by a reliable property inspector because you may not have any legal recourse if you later become aware of leaks,rising damp or other faults with the property you have purchased.

To the buyers advantage the “voetstoets” clause will not be applicable in the event of the seller being aware of a defect at the time of making the contract and deliberately trying to hide or conceal it from the buyer to defraud them.So sellers can’t get away with just anything.

Unfortunately this probably happens pretty often and it makes it even more important to get a proper inspection.

If there is no “voetstoets” clause in the agreement of sale and a defect is found there are options available to the buyer.One of which is cancellation of the agreement of sale and refunding of monies paid by the buyer and return of the property to the seller.Other options are a reduction in the purchase price of the property or to claim damages from the seller if they stated the property was free of defects.Any of these actions would of course need to be substantiated by proof that the defect existed at the  time of sale.

Be sure of what you are buying and read all your contracts carefully!

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In todays property and rental market it is essential that landlords protect themselves as much as possible.One way of doing that is to take out Landlord insurance.This is an aid to the landlord or owner of a rental property.There are a number of companies in South Africa that offer this kind of cover and it has helped many a landlord in the past.

It usually works on the principal of the premium paid being used to cover the rent a tenant would pay in the event that the tenant defaults or gets evicted.It covers approximately 3 months rent and can also cover the cost of evicting the tenant depending on which company you use.

Statistics have shown that up to 28% of tenants nationwide have either paid their rent late or not at all in recent months.It all coincides with a decrease in disposable income in households and fewer people being able to buy their own homes due to the new lending policies being enforced.

Also,knowing you have landlord insurance will relieve alot of stress in the event of having a defaulting tenant.In many instances landlords resort to illegal tactics to make life difficult for their tenants such as disconnecting utilities.This is illegal and you will put yourself at great risk by doing it.There are many policies in place to protect tenants from unfair eviction,so why not protect yourself as a landlord and get the insurance necessary to set your mind at ease.

Shop around to get the best deal and always investigate the legalities involved in evicting a tenant, for your sake and theirs.

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When buying a repossessed property or PIP (property in possession) there are no transfer duties payable,unless you are a VAT vendor in which case they are payable.Transfer duties are often a major stumbling block for those who wish to purchase  property in todays market,because although growth isn’t that great at the moment the prices are still pretty high for the man on the street.

So maybe buying a repossessed property will make your dream home a bit more affordable and you could proceed with any needed improvements further down the line.One should also remember that the banks are not as readily giving 100% bonds at the moment, so if this is a saving it could assist you even more.

Transfer duties account for approximately 8% of the purchase price of a home and one usually pays transfer duties unless one buys a brand new home or development.There are various other deals regarding transfer costs in the market but it sounds better to me not to have to pay them at all.

You also have to be careful,as with everything,that you do not end up paying more for your property now than what it’s going to be worth in the next couple of years.If you are offered some kind of assisted payment deal and you have it in your mind to resell that property a few years down the line try and figure out what that properties market value will be at the time you wish to resell.In some cases you will end up losing valuable growth on that property because of what you paid initially.

So even though not paying transfer duties does sound great i would investigate any deal offered to me for all long term effects on my portfolio.

Investors and buyers could contact the banks to get information regarding their repossessed property.One should investigate all opportunities even if one does not act on them.

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