When you make an Off-Plan purchase, you are essentially buying a home that does not yet exist. There are quite a few details which need to be verified before you decide to go ahead.
Category: Property
Government offers housing subsidy through FLISP
The South African government is allowing concessions for citizens to purchase homes with assistance from the Finance Linked Individual Subsidy Programme (FLISP).
Access to social housing has always been a pressing issue in South Africa, with the backlog of required housing units having increased from roughly 1.2 million units in 1994, to over 2.1 million units in just over two decades. Despite the progress in supplying quality housing since 1994; with roughly 3.7 million subsidised housing opportunities offered to roughly 12.5 million people; there is still a strong demand for affordable housing opportunities.
Continue reading “Government offers housing subsidy through FLISP”
How to Value Your Home for Insurance Purposes
Your house is in all likelihood your most valuable asset, so it is vital that you have sufficient coverage for your property in terms of insurance. A comprehensive short-term insurance policy can be taken out to protect both the value of your entire home structure, as well as its contents against unforeseen circumstances, such as fire or flooding. Depending on the age and condition of your home, and where you live, the cost of insuring your house can vary significantly, just as under insuring your home could have drastic consequences should it burn down. Continue reading “How to Value Your Home for Insurance Purposes”
The Elements of Good Property Management – Northwood Chats to Ken Bluff
Ken Bluff is an estate agent, property manager and Remax Top Associate, based in Cape Town. With decades of experience in the real estate and property rental industry, he is passionate about delivering exceptional service to property owners and tenants alike.
In our previous blog post we outlined the benefits of using a property management company to source tenants, collect rent, and deal with maintenance on second homes – but what services should you expect as a property owner?
Northwood chatted to Ken Bluff about his approach to property management to find out what services second home owners should expect from a reputable letting company.
Selecting the right tenant
The quality of tenant you select to occupy your property can make the difference between a pleasant and profitable experience and endless headaches – Ken pays careful attention to the calibre of tenants he selects for his clients’ properties and requires each prospective tenant to fill in an application form before they are considered.
- All prospective tenants need to provide proof of identity and employment, which are verified.
- At the same time, a credit check is performed and the tenant’s current or previous landlords and letting agents are contacted for references.
The aim of this process is to select a tenant who pays on time, looks after the property, and is a stable, responsible person. This lays the foundation for a good tenant-owner relationship during the period of the lease.
Dealing with problem tenants
Nightmare stories about tenants who destroy rental properties, leave suddenly without paying rent, and cause problems with neighbors are all too common in the property rental industry. Ken believes that problem tenants should be dealt with in a fair but decisive way:
- A deposit equal to two months’ rent is required from all tenants. This covers owners against the cost of doing repairs, and is an insurance against tenants who disappear without paying rent.
- Tenants who pay late or try to “squat” in a rental property are handed over to attorneys who specialise in evictions.
- Tenants are encouraged to report any maintenance issues as they arise – if they fail to do so, the cost of repairs is deducted from the deposit.
Most importantly, Ken believes in finding the right tenant for the property. A tenant with a clean background and a record of responsible dealings with agents and owners is not likely to behave in a way that would jeopardise the value of a rental property.
Should You Let your second Home Yourself or use a Property Management Company?
If you own a second home as a property investment, or if you’re thinking of buying one, you may be wondering how to manage tenants, leases, and maintenance issues. There are two options available to owners of second properties – manage it yourself, or hand the job over to a property management specialist. To find out which option is easier, Northwood spoke to a property management specialist and learned more about the benefits and costs involved. Continue reading “Should You Let your second Home Yourself or use a Property Management Company?”
Rental Properties – What Damages Are the Landlord’s Responsibility?
Whether you are a tenant or own a rental property, the issue of damages and whose responsibility they are is likely to affect you at some point.
From water damage to faulty electrical work and many more maintenance issues, damages to a rental property often become points of argument between tenants and their landlords, resulting in disagreements and even legal action. Fortunately, by ensuring that both landlord and tenant understand their responsibilities and carry them out, these unpleasant situations are easily avoidable. Here is a quick guide for tenants and landlords alike: Continue reading “Rental Properties – What Damages Are the Landlord’s Responsibility?”
Buying Property – Should You Buy the Household Contents?
If you’re on the lookout for reasonably priced property at the moment, you may have noticed that some sellers are enticing would-be buyers with offers that include the property for sale as well as the household contents – is it worthwhile buying a fully furnished property, or will you end up paying more than you ought to? Continue reading “Buying Property – Should You Buy the Household Contents?”
Buying a Property – Understanding the ‘Occupational Rental’ Clause
Signing an Offer to Purchase is one of the final steps in buying a property. Once this document has been signed, the buyer is legally bound to purchase the property within the expiry period of the Offer, with both the buyer and seller being bounds by its terms and conditions. Continue reading “Buying a Property – Understanding the ‘Occupational Rental’ Clause”
Writing an Offer to Purchase – What Information Should Be Included?
Buying a property is one of the most important personal finance decisions you’ll ever make, whether you are buying a home or a secondary property as an investment. Following from our previous blog posts on home ownership issues, we now move onto the matter of drafting an Offer to Purchase. Continue reading “Writing an Offer to Purchase – What Information Should Be Included?”
Costs Involved in Buying a Home
The excitement of buying a home doesn’t need to fade because of unexpected costs. By being aware of the expenses involved in purchasing a property you’ll be able to plan for these and will have no unexpected surprises waiting for you after you’ve signed your offer to purchase. Here are some of the most common expenses involved in buying a home, assuming you will be taking out a home loan. Continue reading “Costs Involved in Buying a Home”