Property sales set to soar in 2012

It’s only been a few days since 2012 kicked off and already would-be homebuyers are actively attending show houses more than they did in 2011.

According to Lanice Steward, managing director of Anne Porter Knight Frank, this is one good reason to believe that 2012 will see a steady improvement in the housing market.

“The attendances at show houses are three or four times higher than the first half of last year.”

She explains that they have seen up to 40 couples eyeing houses priced between R1.595 million and R3.5 million.

Another good reason that this would be a good year for the property market is that when prices are accepted they tend to be closer to the (now more realistic) list prices, usually within 7 percent to 10 percent, she says.

Steward reckons that 2012 is the year to buy residential property and would-be buyers are urged not to waste time.

Meanwhile, Peter Gilmour, chairman of RE/MAX of Southern Africa says in 2012, professional estate agents will remain the key element in negotiating the buying and selling transaction.

South Africa’s estate agents have upped their skill levels with the NQF qualifications and many property groups are introducing more training programmes to ensure their agents remain at the top of their game, he says.

Speaking of the real estate businesses, he says the trends that will drive the next five years include brand focus, lead generation, quality service, sustainable core values and an ability to service all markets, not just niche segments.

“It is these elements that will determine success or failure in real estate during 2012,” says Gilmour.

Gilmour says technology will continue to evolve and reshape the way in which property transactions are handled, while importance will continue to be placed on businesses supporting the communities in which they operate.

The rental market is also set to grow rapidly.

South Africa’s property market has returned to normal and is faring well, especially in comparison to other countries around the world which were harder hit by the recession, he says.

He adds that they expect the market to continue on its current path of normal trading conditions with no big lows and no big highs during most of 2012. – Denise Mhlanga

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While each home buyer will have their own criteria as to what their home must have based on their life stage and personal preference, there are a few key elements that home buyer’s in the current market seem to agree on, RE/MAX of Southern Africa.

The right price

According to RE/MAX the first thing that the majority home buyers must have is an affordable price tag, especially first-time home buyers because they often don’t have the equity from selling a property to roll into the next purchase. Although aspects such as space and the aesthetic appeal of the home are important, for most part the financial elements and affordability are top priorities.

“It is important for buyers to have a budget and make sure they stick with what they can afford. Buyers shouldn’t overextend themselves in the current market as it is highly likely that if they do, they will experience financial pressure in the foreseeable future. With house prices decreasing over the past few years, as well as the current low interest rates, properties that were previously unaffordable to many home buyers are now within reach. This has significantly opened up the market to buyers who now have more options available to them while still managing to stay within their budget limitations,” says RE/MAX.

A home that meets future needs

RE/MAX says that although it is impossible to know what the next ten years may hold, the reality is that many home buyers will be in their home for longer than they think. It will pay off to purchase a home that doesn’t just meet the criteria now, but also in the next five to ten years.

“Property is a long term investment. A must-have now may not be one in a few years, so home buyers should look at property and ask if they can see themselves staying there for a while and what the future looks like. Is marriage on the cards or perhaps children?  If so, then an extra bedroom would probably be of higher importance than granite counter tops.

A prime location

It might be an old cliché but there is certainly a lot of truth to the location, location, location adage. This mantra rings true for home buyers in any market; location will always be high on the must-have list. Whether it is a question of lifestyle or good return on investment, buying a property in the right location will be one of the most important decisions a buyer can make.

RE/MAX notes that vital aspects to consider when deciding on a location would be:

Proximity to your place of work.

• A location convenient to local amenities such as medical facilities and shopping centers.
• A neighborhood / estate or complex that is well-maintained and is aesthetically pleasing.
• Buyers with children or plans for a family should look at the quality of schools in the area.

“Try to find an area that is established and has a history of solid returns that have been stable over the long term. Look for areas that have kerb appeal that are well maintained and where there are more owners than tenants, as owners will predominately want to protect their investment by keeping the area well looked after.

A house that has been properly maintained

Buying a house that has been properly maintained by the previous owner can help alleviate a large number of costs in the future. He says, “With the introduction of the Consumer Protection Act many buyers are insisting on the list of defects that the act prescribes, even though legally it may not be applicable. It is important for them to know that they are purchasing a property that is in good repair.”

While a quick run through and spot check of the home can help buyers sift through their options and narrow down the property they would most like to purchase, it is best to have a professional inspector undertake a thorough check and advise accordingly.

Contemporary updates in key areas

Although the property may not be completely renovated, there are certain areas of a home that buyers place a higher priority on, says Goslett. This is because there are some rooms in a home where renovations will add more value in terms of resale at a later stage.

For example, kitchens and bathrooms are known to get sellers the best boost in value, with many sellers recouping as much as 80% of their renovation costs on a kitchen and between 65% and 75% of the costs of remodeling a full bathroom. “These two areas of a home are the most important to buyers when looking at prospective houses. If they have been renovated or simply updated by the previous owner, it will have a big impact on the overall appeal of the home.

Goslett concludes by saying that given the fast options available to buyers in the current market, sellers should take these must-haves into consideration when wanting to successfully sell their property in the shortest possible time.

Please contact us if you require any further information or would like to apply for finance:

Complete this short form online

011.327.4489 / 0861 1111 93

morne@mortgagepluscc.co.za

www.mortgagepluscc.co.za