Property buyers are often confronted with the big question: Should I buy or should I build a home? Financially it is often cheaper to buy a new home than to built. There are however many pros and cons when building or buying a new property.
When buying a new home you can physically investigate and ascertain the quality and style of the property. Previously owned homes usually have an established garden and you can often trust that what you see is what you get. There are also no delays and moving in can happen as soon as the paperwork has been finalised.
Buying a home also has its downside: You are forced to buy what you sometimes don’t want, there could be unforeseen problems and you might have to spend money to upgrade the house.
When building, you don’t have to live with other people’s style; you have the freedom to plan and design what you want. This offers you a lot of control and you can make sure that all is new and in good conditions. When building you can also adjust your costs when you see that you budget is shrinking too fast. By the end of the project you will have the satisfaction of knowing that you have achieved your goal, along with the feeling that you are the first owner of the house.
But building a new house is not without its problems. You can never be a 100% certain of quality and workmanship and finding the right area to buy land could be time-consuming and costly. You have to keep in mind that you will need to make more decisions and that you will have to establish a new garden. It is also important to remember that it is sometimes hard to visualize the final product and you could be in for a huge disappointment.
Invest in property in Knysna
Thursday, December 18, 2008
Tuesday, December 9, 2008
Tips on Buying Repossessed Property on Auction
Repossessed property is making up around 20% of all properties for sale in the UK and things are not much different in South Africa. Banks and lenders are often more interested selling than getting a good price for the property, which means you can walk away with a huge bargain.
If you are planning on buying a property at auction be well prepared and make sure you know exactly what is involved. Here are a few tips on buying property at auctions:
Do Proper Research
Make sure to be clear on why you are buying the property. If you are buying to rent, you have to research the rental market in the area. Don’t be tempted to buy in an area you don’t know, or do thorough research if you don’t know the area well.
Do a Test Run
Attend a couple of auctions and familiarize yourself with the process. Get some catalogues to see how different bidders go about bidding. This will give you some confidence when you bid on your first auction.
View the Property
Checking out the brochure/catalogue is not enough; visit the property and make sure to take a builder or someone with knowledge with you. Also make sure you know exactly how much the property is worth.
Sort Out a Survey
Even though you will lose you survey fees if your bid is not successful, it is still important to make sure you know exactly what you are buying into. Don’t cut corners here; it might be a costly mistake!
Decide on a Maximum Bid and Stick to It
Know your budget and make sure that you don’t get influence by bidders pushing the price higher – this might leave you financially overstretched.
Arrange Your Finances Before the Auction
If your bid is successful, you are legally bound to purchase the property. Therefore you have to make sure that you will have you finances ready within 20 days after the auction.
Have Your Deposit Ready
You will need to put down a deposit for 10% of the property’s price, should your bid be successful. Remember to take you check book and at least two forms of identification with your to the auction.
Be Prepared for Other Costs
Remember that you will need to pay legal – , renovation -, running - and insurance costs. There may also be a buyer’s fee to pay at the auction house. You can check this on the day at the auction.
Find Out About Tax
Remember to factor in tax on your rental income if you are buying to let. There might also be other taxes involved so make sure to check it out before you bid on the property.
Make Sure the Auction is On
One the morning of the auction, phone to make sure that the property you are interested in are still up for auction and has not been sold privately. Also read the terms and conditions that are handed out at the auction.
If you are planning on buying a property at auction be well prepared and make sure you know exactly what is involved. Here are a few tips on buying property at auctions:
Do Proper Research
Make sure to be clear on why you are buying the property. If you are buying to rent, you have to research the rental market in the area. Don’t be tempted to buy in an area you don’t know, or do thorough research if you don’t know the area well.
Do a Test Run
Attend a couple of auctions and familiarize yourself with the process. Get some catalogues to see how different bidders go about bidding. This will give you some confidence when you bid on your first auction.
View the Property
Checking out the brochure/catalogue is not enough; visit the property and make sure to take a builder or someone with knowledge with you. Also make sure you know exactly how much the property is worth.
Sort Out a Survey
Even though you will lose you survey fees if your bid is not successful, it is still important to make sure you know exactly what you are buying into. Don’t cut corners here; it might be a costly mistake!
Decide on a Maximum Bid and Stick to It
Know your budget and make sure that you don’t get influence by bidders pushing the price higher – this might leave you financially overstretched.
Arrange Your Finances Before the Auction
If your bid is successful, you are legally bound to purchase the property. Therefore you have to make sure that you will have you finances ready within 20 days after the auction.
Have Your Deposit Ready
You will need to put down a deposit for 10% of the property’s price, should your bid be successful. Remember to take you check book and at least two forms of identification with your to the auction.
Be Prepared for Other Costs
Remember that you will need to pay legal – , renovation -, running - and insurance costs. There may also be a buyer’s fee to pay at the auction house. You can check this on the day at the auction.
Find Out About Tax
Remember to factor in tax on your rental income if you are buying to let. There might also be other taxes involved so make sure to check it out before you bid on the property.
Make Sure the Auction is On
One the morning of the auction, phone to make sure that the property you are interested in are still up for auction and has not been sold privately. Also read the terms and conditions that are handed out at the auction.
Thursday, December 4, 2008
Choosing a Good Tenant
Choosing the right tenant is probably one of the most important things that a landlord must do. This is mainly because it is very hard to get rid of a bad tenant and it is often quite costly. See the process of selecting a tenant as a business decision and always make sure that your tenant meets certain standards.
Firstly, lets look at some characteristics of a good tenant:
§ A good tenant pays the rent on time. This means that your tenant must have a regular source of income and a history of prompt and complete rental payments.
§ A good tenant has good references from former landlords.
§ A good tenant does not engage in illegal activities and abide by the terms of the tendency.
It is important to make sure that you tenant has these characteristics and don’t settle for anything less. If your friends suggest a tenant be sure to check out all references and don’t take anyone’s word for it. Do all enquiries yourself.
Here are some tips for choosing the right tenant:
§ Make sure your ad reaches a large audience. This way you will have a wide choice of potential tenants.
§ Make sure to draw up a complete application form with space for present and former landlords’ names and phone numbers and a complete history of previous addresses.
§ Make sure to check all references and ask what the reason was for the termination of the contract.
§ Look for gaps in the applicant’s rental history or for a pattern of many tenancies of short duration
§ Always run a credit check on your top two applicants.
§ When you have selected a tenant make sure that all paperwork is in order and that you both sign the lease. Take time to explain all clauses to your tenant to make sure that there is no misunderstanding.
§ If you are using a property manager make sure it is someone who will use proper care and procedures during the selection process.
Buy property on the Garden Route
Firstly, lets look at some characteristics of a good tenant:
§ A good tenant pays the rent on time. This means that your tenant must have a regular source of income and a history of prompt and complete rental payments.
§ A good tenant has good references from former landlords.
§ A good tenant does not engage in illegal activities and abide by the terms of the tendency.
It is important to make sure that you tenant has these characteristics and don’t settle for anything less. If your friends suggest a tenant be sure to check out all references and don’t take anyone’s word for it. Do all enquiries yourself.
Here are some tips for choosing the right tenant:
§ Make sure your ad reaches a large audience. This way you will have a wide choice of potential tenants.
§ Make sure to draw up a complete application form with space for present and former landlords’ names and phone numbers and a complete history of previous addresses.
§ Make sure to check all references and ask what the reason was for the termination of the contract.
§ Look for gaps in the applicant’s rental history or for a pattern of many tenancies of short duration
§ Always run a credit check on your top two applicants.
§ When you have selected a tenant make sure that all paperwork is in order and that you both sign the lease. Take time to explain all clauses to your tenant to make sure that there is no misunderstanding.
§ If you are using a property manager make sure it is someone who will use proper care and procedures during the selection process.
Buy property on the Garden Route
Tuesday, November 25, 2008
Why You Need an Estate Agent
The information in this article is courtesy of Realestateweb (Big reasons not to sell your own home – 26 November 2008)
Private property sales are becoming more and more popular as homeowners try to save on commissions. According to Lanice Steward, managing director of Anne Porter Knight Frank estate agency, her experience in the industry has shown that these private sales can be disastrous.
Steward pointed out that there is a misperception of the role of the estate agent in some cases. This stems from ignorance of what the agent does and a lack of appreciation of what he or she can bring to the negotiation and sales process. This, according to Stewart, is somewhat surprising seeing that people don’t try to diagnose their own ailments, and they certainly don’t try to service their own cars, buy yet they think that they are qualified to market and sell their biggest assets.
The biggest mistake made by DIY home sellers is often made while investigating prices in their region. Show houses are almost always overpriced and when sellers use that price as a guideline they often overprice (or sometimes under-price) their own property.
DIY sellers often find that the advertising cost is higher than they bargain for and that possible buyers pray on their inexperience and downgrade their price by pointing out drawbacks and defects. When a serious buyer do come around the sellers often lack the legal and negotiating skills to get a good deal.
When using a trained agent these issues are often totally excluded from the selling process; the seller benefits from the agency’s large-volume advertising and the agent will have a potential buyers list, which is a good start. A professional agent will recognise the pitfalls and traps to avoid in the all-important negotiation process and all other deed related issues would be handled with precision.
Steward thinks it is important for all homeowners to note that, although an agent’s commissions might sometimes be high, the reality is that paying an agent will almost always get you a sooner and better deal.
Buy property in Knysna
Private property sales are becoming more and more popular as homeowners try to save on commissions. According to Lanice Steward, managing director of Anne Porter Knight Frank estate agency, her experience in the industry has shown that these private sales can be disastrous.
Steward pointed out that there is a misperception of the role of the estate agent in some cases. This stems from ignorance of what the agent does and a lack of appreciation of what he or she can bring to the negotiation and sales process. This, according to Stewart, is somewhat surprising seeing that people don’t try to diagnose their own ailments, and they certainly don’t try to service their own cars, buy yet they think that they are qualified to market and sell their biggest assets.
The biggest mistake made by DIY home sellers is often made while investigating prices in their region. Show houses are almost always overpriced and when sellers use that price as a guideline they often overprice (or sometimes under-price) their own property.
DIY sellers often find that the advertising cost is higher than they bargain for and that possible buyers pray on their inexperience and downgrade their price by pointing out drawbacks and defects. When a serious buyer do come around the sellers often lack the legal and negotiating skills to get a good deal.
When using a trained agent these issues are often totally excluded from the selling process; the seller benefits from the agency’s large-volume advertising and the agent will have a potential buyers list, which is a good start. A professional agent will recognise the pitfalls and traps to avoid in the all-important negotiation process and all other deed related issues would be handled with precision.
Steward thinks it is important for all homeowners to note that, although an agent’s commissions might sometimes be high, the reality is that paying an agent will almost always get you a sooner and better deal.
Buy property in Knysna
Tuesday, November 18, 2008
Buying Holiday Homes – Lifestyle or Investment
When buying a holiday home you are either buying a place where you can your family can go to for a holiday or you have financial gain in mind. It can even be a nice blend of these to options.
Here are a couple of things to keep in mind:
When buying a holiday home is mostly a lifestyle choice for you, you should be careful not to compromise on you own needs in favour of a wiser financial investment. Don’t worry about what the market is going to do in the next 10-20 years just follow your heart and buy the place where you feel you can make loads of happy memories.
If you are buying to let you should put your own feeling and taste aside. Pick the property that would be able to pay for itself and do the math to make sure your prospects are feasible. Do research and find out what the going rate is before you purchase the property.
If you have both options in mind, be sure to strike the right balance between the two factors and don’t compromise on where you want to spend your holiday. Make sure the property is in an area where your target market would want to stay. Think with your heart but also be practical.
Buy holiday homes for sale in Knysna
Here are a couple of things to keep in mind:
When buying a holiday home is mostly a lifestyle choice for you, you should be careful not to compromise on you own needs in favour of a wiser financial investment. Don’t worry about what the market is going to do in the next 10-20 years just follow your heart and buy the place where you feel you can make loads of happy memories.
If you are buying to let you should put your own feeling and taste aside. Pick the property that would be able to pay for itself and do the math to make sure your prospects are feasible. Do research and find out what the going rate is before you purchase the property.
If you have both options in mind, be sure to strike the right balance between the two factors and don’t compromise on where you want to spend your holiday. Make sure the property is in an area where your target market would want to stay. Think with your heart but also be practical.
Buy holiday homes for sale in Knysna
Wednesday, November 12, 2008
7 Tips for Buying a Home
Buying your dream home is one of the most exciting events in your life. Here are 7 tips to consider when taking the big step.
1. Learn the search process
It is important to search thoroughly and use all the resources available. The Internet is a good place to start. Try a property directory or simply pick up a copy of the local newspaper. This way it will be easy to stay up to date with the latest news on the property market.
2. Go beyond the photos
A picture tells a thousand tales. This is very true but one should not let a bad photo put you off a property entirely. The way a property is displayed in a brochure or on a listing is a good guideline to go by but should not be the only one - you don't want to miss out on a great deal because of a poor photo.
3. Work with a local expert
Get the best agent to help you search for a property. An agency that has been up and running for a long time should have the necessary experience and knowledge to help you.
4. Bank on your relationships
Use a bank that you are familiar with and with whom you have worked with in the past.
5. Document everything
Keep all your income documents and present as much information as possible to the bank. These days your bank might expect more prove of income than you might think.
6. Hire smart, reliable advisors
You are making a big decision and you need the best advisors to guide you. Listen to advise but also speak to your friends - they might have some different insights, which can come in handy.
7. There is always room to negotiate
The asking price is not set in stone and negotiating can get you a better deal.
Buy property in Knysna
1. Learn the search process
It is important to search thoroughly and use all the resources available. The Internet is a good place to start. Try a property directory or simply pick up a copy of the local newspaper. This way it will be easy to stay up to date with the latest news on the property market.
2. Go beyond the photos
A picture tells a thousand tales. This is very true but one should not let a bad photo put you off a property entirely. The way a property is displayed in a brochure or on a listing is a good guideline to go by but should not be the only one - you don't want to miss out on a great deal because of a poor photo.
3. Work with a local expert
Get the best agent to help you search for a property. An agency that has been up and running for a long time should have the necessary experience and knowledge to help you.
4. Bank on your relationships
Use a bank that you are familiar with and with whom you have worked with in the past.
5. Document everything
Keep all your income documents and present as much information as possible to the bank. These days your bank might expect more prove of income than you might think.
6. Hire smart, reliable advisors
You are making a big decision and you need the best advisors to guide you. Listen to advise but also speak to your friends - they might have some different insights, which can come in handy.
7. There is always room to negotiate
The asking price is not set in stone and negotiating can get you a better deal.
Buy property in Knysna
Friday, November 7, 2008
Why Thesen Island is Perfect for You
Imagine a marina stretched over 90 hectares of man-made islands, surrounded by 25ha of tidal waterways and linked by 21 arched bridges, located in one of the most scenic locations in South Africa - Knysna.
With only 508 houses and 56 apartments on Thesen Islands, this unique developement is obviously reserved for those who enjoy the finer things in life. Expect quite streets, tranquil beaches, landscape parks and peaceful waterways lined with modern urban homes perfect for retirees or couples with young children.
Thesen Island is one of those places that must be seen to be appriciated and you will be hard-pressed to find a safer, more spectacular venue anywhere else in the world.
Those who buy property on Thesen Islands live the life that most people can only dream of.
With only 508 houses and 56 apartments on Thesen Islands, this unique developement is obviously reserved for those who enjoy the finer things in life. Expect quite streets, tranquil beaches, landscape parks and peaceful waterways lined with modern urban homes perfect for retirees or couples with young children.
Thesen Island is one of those places that must be seen to be appriciated and you will be hard-pressed to find a safer, more spectacular venue anywhere else in the world.
Those who buy property on Thesen Islands live the life that most people can only dream of.
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