ADVICE TO SELLERS & BUYERS/INVESTORS

Sellers

Ensure that your Property is listed below market value in order for Buyers/Investors to contact you and for the property to be sold quickly. Know the market value of your property, so that you know what discount you can give to Buyers/Investors, so that a win-win situation is reached.

Investors/Buyers

Buyers/Investors make sure that finances are in order (Cash/Bond) so that you can move quickly when interested in a specific property. Do research on property and area to make sure that it suits your property strategy and that you are getting a good deal.

Different Property Strategies can include:

  • Capital Flips
  • Buy To Lets
  • House Of Multiple Occupancy (HMO’s)/Multi-Lets
  • Lease Options
  • Commercial
  • Industrial
  • Developments

Power Team

Power Team members are experts in their various fields which are there to assist you in completing or managing a property deal successfully.

Numbers

Make sure that you run the numbers on each deal to make sure if it will be profitable e.g. Return on Investment, Gross Yield, Cashflow/Profit calculations.

  • Return on Investment Calculation:
    Annual Net Profit/Capital Cost * 100 = ROI
  • Gross Yield:
    Annual Gross Rent/Property Price * 100 = Gross Yield
  • Cashflow:
    Rental Income less all expenditure against property = Cashflow
  • Profit:
    Selling Price less all acquiring and holding expenditure against property = Capital Profit

Market

The Property markets changes, therefore research the current property market to identify which Property strategy (Cashflow or Capital) works at the time.

Legal Documents

Legal documents are made available to Property Pick members, but legal documents are general and should always be validated by an attorney as each property deal is different. See Power Team for Attorneys who could assist.

Residential Housing Trends 2018

Insights taken from: www.propertyprofessional.co.za/residentail-housing-trends-for-2018/
Property Professional- The South African Property Industry Magazine
Jan 16, 2018/Features

1. Semigration is not only to the Western Cape

From Jan 2016, 33% of relocating South Africans made the Western Cape their destination of Choice. As Cape Town’s property pricees soar, potential buyers are turning their attention to Kwa Zulu- Natal. Lifestyle and good prices are also attracting buyers to the Garden Route where interest is growing, in Knysna and Pletterberg Bay to George and Mossel Bay.

The Gauteng region remains the centre of business and commerce for Southern Africa and continues to attract more than 300, 000 people annaually from around the country, the African continent and globally.

2. Sectional title growth outstrips freehold

While only 12% of South African’s housing stock of 6.45-million units is sectional title, demaind for sectional title properties is growing rapidly and apartment prices are holding up well against freehold property.

3. Estate Properties are more valuable

Property Valuation reports have shown that on average, estate properties are more valuable than non-estate properties. The prices of homes on estates tend to be less volatile, hence a better investment option during challenging times. Reports also says at least one in 10 South Africans choose gated communities when making residential purchases.

4. The Luxury Segment is downscaling

There is a growing downscaling trend towards smaller, but not necessarily less expensive properties.

5. Multi-generational living on the rise

Multi-generational living or extended family living, with the associated benefits of pooled resources and cost efficiencies, is making increasing economic sense. Adults are moving back home to occupy a cottage or second dwelling on their parents’ properties. Rising costs and shortage of affordable retirement accommodation are contributing to this trend.

Check out HouseMe for Landlords
www.house.me

Helpful documents

General Advice 28KB

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