The information in this article is courtesy of iAfrica (Why renting rules … - 23 April 2009).
Tough lending criteria and high deposits have made it impossible for many to buy property. Renting hasn’t just become a reality for those who can’t afford to buy, but also for people who feel like they are spending the best years of their lives with a financial ball and chain around their ankles. Here is why most people prefer to rent:
A lot of people recon that you are throwing water down the drain by renting, but if you take in consideration the amount of money you save when renting, this statement might be nothing but a cliché.
Renting means you pay a monthly fee, which includes all repairs and maintenance should something break. You as the tenant know exactly what amount of money you will spend on you accommodation and you don’t have to anticipate extra costs.
In the first few years of ownership, most of what you're paying into your bond goes to interest, not the capital. Isn’t that almost like throwing money into the water? Also, homeowners needs to be prepared for all other expenses like property taxes, levies, insurance, maintenance fees etc. You might be better of investing in stocks.
Renting is a great option for families that want to expand but can’t buy a bigger property. Renting deposits are relatively low and you can look forward to getting you deposit back. This way your family will have the space they need without breaking the bank.
Renting is a hassle-free way of living without responsibility towards the property you live in. Let the landlord take care of everything.
Renting is an easy way of not tying yourself down. You simply give notice and you are free to go. If you are planning on moving, or if you require traveling a lot, it might be easier to rent as maintenance and costs are low.
Thursday, April 23, 2009
Thursday, April 16, 2009
Property Prices and Crime
The information in this article is courtesy of Realestateweb (Crime and your property’s value – 15 April 2009).
According to the FNB Residential Property Barometer Q1 2009, 10% of total sellers of residential property are selling because of safety and security reasons.
The Barometer shows that Gauteng showed 12% of seller moving for safety reasons and the Eastern Cape 17%. KwaZulu Natal showed 6% with the Western Cape having 5% of the province’s sellers moving because of crime.
John Loos, FNB Property Strategist, are also of the opinion that more and more people are moving to secure places such as gated communities and complexes compared to freehold homes.
However, Loos explains, the impact of crime on the property market affects the long term of property performances in the sense that property owners have to spend more money on crime prevention and security measures in their properties.
This does not mean that there will be a sudden increase in property prices in secure areas. Loos recons that the turn of the market might see prices rising in places conceived as safe and secure.
Loos said to keep in mind that people also move to gated communities as they are convenient and offers the “lock up and go” option.
The current situation in South Africa shows that property prices in places like Dainfern in Johannesburg are holding up nicely, but this might also mean that the wealthy people living in these areas have more cash, so they are not as interest rate sensitive.
Loos added that Johannesburg is the business hub of Southern Africa and businessmen has no choice but to live close to this city. These businessmen are more likely to live in safer places close to Johannesburg.
According to the FNB Residential Property Barometer Q1 2009, 10% of total sellers of residential property are selling because of safety and security reasons.
The Barometer shows that Gauteng showed 12% of seller moving for safety reasons and the Eastern Cape 17%. KwaZulu Natal showed 6% with the Western Cape having 5% of the province’s sellers moving because of crime.
John Loos, FNB Property Strategist, are also of the opinion that more and more people are moving to secure places such as gated communities and complexes compared to freehold homes.
However, Loos explains, the impact of crime on the property market affects the long term of property performances in the sense that property owners have to spend more money on crime prevention and security measures in their properties.
This does not mean that there will be a sudden increase in property prices in secure areas. Loos recons that the turn of the market might see prices rising in places conceived as safe and secure.
Loos said to keep in mind that people also move to gated communities as they are convenient and offers the “lock up and go” option.
The current situation in South Africa shows that property prices in places like Dainfern in Johannesburg are holding up nicely, but this might also mean that the wealthy people living in these areas have more cash, so they are not as interest rate sensitive.
Loos added that Johannesburg is the business hub of Southern Africa and businessmen has no choice but to live close to this city. These businessmen are more likely to live in safer places close to Johannesburg.
Friday, April 3, 2009
Suza Orman Buys Property in South Africa
The information in this article is courtesy of iAfrica (Orman Invests in SA - 3 April 2009).
Do You Need Any More Proof?
World-renowned finance guru, Suze Orman, recently invested in a property in South Africa. She picked an apartment in the posh suburb of Northcliff in Johannesburg to add to her property portfolio.
This highlights the fact that the South African property market – especially at the upper end – has loads of growing investment potential - and it stretches further than Cape Town and the Atlantic Seaboard.
Orman says her motivation for buying in Johannesburg is simple – location. According to Lew Greffen, chairman of Sotheby’s International Realty in South Africa, the city of Johannesburg has been attracting investors for quite a while as they see this area as the real gateway to potentially lucrative South African and African markets. Cape Town, on the on other hand, is where the money goes on holiday.
Greffen explained that property in Johannesburg’s upmarket suburbs are also very affordable if you are buying in pounds or dollars and property here and unlike the ones in Cape Town and the Atlantic Seaboard, has and increasing rarity premium
Invest in holiday homes in Knysna
Do You Need Any More Proof?
World-renowned finance guru, Suze Orman, recently invested in a property in South Africa. She picked an apartment in the posh suburb of Northcliff in Johannesburg to add to her property portfolio.
This highlights the fact that the South African property market – especially at the upper end – has loads of growing investment potential - and it stretches further than Cape Town and the Atlantic Seaboard.
Orman says her motivation for buying in Johannesburg is simple – location. According to Lew Greffen, chairman of Sotheby’s International Realty in South Africa, the city of Johannesburg has been attracting investors for quite a while as they see this area as the real gateway to potentially lucrative South African and African markets. Cape Town, on the on other hand, is where the money goes on holiday.
Greffen explained that property in Johannesburg’s upmarket suburbs are also very affordable if you are buying in pounds or dollars and property here and unlike the ones in Cape Town and the Atlantic Seaboard, has and increasing rarity premium
Invest in holiday homes in Knysna
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