Maintain your property.

By
Nats
Published: November 20, 2008Posted in: Real Estate InvestingTags: , , , , , , ,

All homeowners want to be surrounded by beauty and cleanliness,take a good look at your home and see if it is up to standard.There are many things that you are comfortable to ignore at your own home,for instance the state of the back garden.However if you intend on selling your home you may want to reconsider a few points on maintaining the state of your property.

As we have said before your home needs a certain amount of street appeal and thus needs to look good from the outside as it’s the first impression a buyer will get.So paint the outside if necessary and have a good look at the state of your front garden or driveway.Most people will be put off buying a property with a very overgrown garden as they begin to imagine all the work involved in bringing back up to standard.If you have the funds available and feel it is necessary have a professional give you a quote.

If you have a pool you absolutely need to ensure it is crystal clear at all times.Buyers may view a pool as a hassle and if they see that the current owner has not been able to maintain it they will be even further discouraged.Pool safety is also a major concern for buyers with children so ensure that yours is well maintained and up to standard.

Concerning the inside of the home be aware of the state of your electrical wiring,if you suspect there may be problem have it checked out.Buyers may say the sale is dependant on having a professional electrician check the state of the wiring.Any problems in this area my result in an unforeseen cost that you may struggle to cover on top of other costs involved in the sale of your property.

The same goes for your plumbing,maintain it well while you live on the property so that you don’t have to fork out large sums of money to repair things when you want to sell.

Your geyser is also a very important and often overlooked appliance in the your home.A good geyser has years of life in it and shouldn’t give you any problems.However an old or badly maintained geyser is extremely dangerous.They can literally explode in extreme cases and cause severe water damage over time if they leak unchecked.Always get a professional to check your geyser unless you really know what you are doing, they have a system that releases internal pressure and can be complicated.Don’t attempt to repair anything you aren’t qualified for.

Some of the things in your home need to be carefully maintained for your own safety and to encourage a successful sale when you put it on the market.Take pride in your home and buyers will feel far more comfortable imagining themselves living in it.

Increase in bond foreclosures year on year.

By
Nats
Published: October 20, 2008Posted in: General Interest, Real Estate InvestingTags: , , , ,

It will not come as a shock to anybody following the current activity in the property market to find out that a major bank recorded a 50% year on year increase in properties in possession and bond foreclosures in the month of August.

This is of course due to the financial strain most households are under due to the interest rate increases over the last two years.What is also frightening is that foreclosures and taking a property into possession are the absolute last resort lenders will take to recover their money.

With a basic figure of distressed sales increasing by 20% month on month the situation will most likely worsen in the coming months.

Statistics released by Auction Alliance have reported a 21.5% growth in the number of bonds 1 month in arrears between the first and second quarters of this year resulting in a figure of 70 000.There is also the figure for bonds that are more than 4 months in arrears for the same period that has risen from 18 000 to 25 000.

While the statistics sound pretty scary we are said to be better off than the rest of the world.This will probably be no comfort at all to those who have already lost their homes or those whose homes are in danger of being foreclosed upon.

But take heart,the picture is predicted to get far better in the second quarter of next year with the expected interest rate cut in April.

Tips on getting the property you want at the price you want.

By
Nats
Published: September 18, 2008Posted in: Buying property, Real Estate InvestingTags:

Unfortunately most of the time the property we buy is motivated by how much we can afford to pay.So it is extremely important that you can negotiate a price that you are happy to pay for the property.Most sellers are willing to negotiate to a certain extent and you could come to a mutually beneficial agreement.

Firstly do your homework and familiarize yourself with the property on offer.Ask questions about the property.Find out why it is for sale,what the history of the property is and what the sellers time frame is.This information can sometimes work in your favour and provide you with some bargaining chips.

You should also avoid getting emotionally attached to the property you are interested in.Make it known to the seller that you have viewed other similar properties and that you can control your excitement and will not fall for a rushed deal.

Find out what their price is based on and whether or not their valuation is fair and realistic.Look for discounts where possible,if the property is in need of repairs perhaps you can get them to knock the price down a bit further.

Another biggie is to be polite and negotiate in person where possible,if the seller has two identical offers he is more likely to sell to the person he likes better.

One last tip is to be confident and don’t let agents “bully” you into a deal you are not comfortable with.With the amount of money involved in property these days you need to feel reassured that you know what you’ve paid for.

Try and avoid a bad tenant.

By
Nats
Published: September 17, 2008Posted in: Landlords, Letting agents, Property letting, Real Estate Investing, Renting propertyTags:

There are so many things to think of when purchasing a property for investment purposes and the work doesn’t end when you take transfer and the property is finally yours.After all the excitement of closing the deal you will probably now need to find a tenant.This can be tricky and you should take as much time as possible before signing anything and make sure you are comfortable with your choice.

The reason a good tenant is so important is obvious,if they don’t pay you will probably end up in a sticky financial situation.They can also just not care about the property and things they are responsible for can easily be ignored and your property may suffer.

When screening possible tenants be thorough,check their references,make sure there aren’t any holes in their information.Take the time to have a conversation with the applicant and really listen to what they are saying,are they happy in their job or relationship.These factors contribute greatly to where a tenant decides to stay and if they will stay if their situation changes.

You should also research the area you have bought the real estate in and the tenants that rent there.The average income of the area will give you a good idea of many things,like how much rent you can charge.

Once you do have a tenant try and avoid future problems by getting all communications in writing or by confirming any conversations via email.This really will save you alot of stress and confusion.Then you should definitely familiarize yourself with the legal side of being a landlord.From the basics,such as who is responsible for maintaining what, and the more serious aspects like tenant eviction.

Tenant eviction is not a simple process and most laws are in favour of the tenant.So take responsibility,do your research and be happy with your tenant from the begining.Nothing is foolproof but at least you will know you tried your best to get a good tenant.

The importance of Landlord insurance.

By
Nats
Published: September 3, 2008Posted in: Insurarance, Property letting, Real Estate InvestingTags:

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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