| The sooner you buy the better |
High interest rates and inflation obviously make potential property
buyers think twice as they worry about the affordability of monthly
home loan repayments and calculate that it is cheaper to rent than
to purchase property.
But the gains are only short-term. In the long run, property is
still a solid investment that will help most buyers build wealth,
and rentals that are helping a landlord pay off his bond could be
more profitably spent on paying off your own bond.
Historically, house prices have risen by an average of between
eight and 10% a year, but even at a growth rate of five percent,
homeowners are still earning a return on their investment.
For example, if you buy a R1m house with the minimum 10% deposit
now required by most banks, your direct investment will be R100
000. If the value of the property rises by just five percent a year
over the next two years, your stake in the property will grows by
R50 000 plus the capital that you have paid back to the bank in
that period. And at that rate your initial investment of R100 000
will double in less than four years.
Right now the market is slow but from a prospective buyer's point
of view that is good news. There is always a better selection of
properties on offer when supply is bigger than demand, and it is
easier to negotiate a good price.
There is also wide consensus that property values will grow faster
than the average once the interest rate cycle starts turning south,
and that the sooner you buy now, the more you will benefit from
the next "boom".
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| How to stay sane during renovations |
Remodelling an existing home rather than buying a new property
is becoming a popular option in the current tough credit climate.
But while renovations can increase the value of a home, owners
should not lose sight of the inevitable disruptions the process
will cause and the need to be properly prepared to deal with them.
Detailed project planning is the first step, whether the owner
supervises the process or leaves that to a builder or architect.
It is vital to understand all the implications of the planned work
and double-check that all eventualities have been taken into account
- complications that crop up because of poor planning can drag out
the alteration process and wreck the budget.
The second step is to devise strategies to minimise the disruption
to daily routines once the renovation gets under way. Homeowners
should for example map out which parts of the house will be affected
and plan alternative arrangements, especially if they are renovating
a kitchen or bathroom.
They should also take into account what will happen if the electricity
or water supply needs to be disconnected during their revamp. It
is also wise to remove and store all breakable items to prevent
damage and to cover furniture to protect it against dust.
If the planned renovations are extensive, it might be better to
move out of the house for a while, especially if you have young
children. And if you do elect to stay put, you must plan how children
will be kept out of the way of work in progress and away from building
materials and tools.
Finally, be sure to arrange with the contractor that no advance
payments will be made. Materials should be delivered on site before
you pay for them and the project, or an agreed part of it, should
be completed to your absolute satisfaction before you part with
any money.
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| Trees enhance home values |
With global warming the current big issue, there
is much that individuals can do to offset their carbon footprint
- and homeowners have an added incentive for doing their bit by
planting a tree or two.
Apart from being carbon sinks that trap carbon
dioxide and so help to regulate weather patterns, air quality and
even ambient temperatures, established trees generally increase
the value of a home by between five and seven percent.
What is more, trees can help to cool your home
and shelter it from strong winds, provide a habitat for birds and
beneficial insects, create focal points in your garden, enrich the
soil and produce bonuses such as flowers, fresh fruit or nuts.
So it is with good reason that SA celebrates Arbour
Week in September every year - and that homeowners should start
preparing now to plant new trees.
Factors to keep in mind include the following:
* Trees should be in proportion with the size of
the garden - a huge spreading oak, for instance, will look right
at home in a large garden while a slim conifer or small umbrella-shaped
tree can be fitted into a townhouse landscape.
* Consider the purpose of the tree - do you want
screening for privacy, shade, or a specific shape in the garden
- as this will influence the type of tree you choose.
* Hardiness will play a role in your choice - a
tender subtropical variety will not flourish in a cold highveld
garden.
* Root systems are an important consideration since
vigorous lateral roots can lift paving and even crack walls.
* You need to check soil drainage by filling the
planting hole with water. If it drains completely within six hours
you can rest assured that your tree's roots will not be waterlogged,
which could stunt growth or even kill the tree.
* The soil in which you plant the tree should be
enriched with compost and bone meal, both available from most nurseries
and garden centres, the tree needs to be well-watered until the
summer rains arrive.
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| Developers take note: Seniors want
office space |
Space for home offices is becoming a prime consideration
among senior citizens as more of them keep working after they officially
retire.
Statistics show that only about 10% of people retiring
at age 65 have made adequate provision for their golden years and
that about a third keep working to supplement their income. Swelling
the numbers of working retirees are professional people who increasingly
choose to keep working and consulting to maintain an active interest
in their fields.
Consequently, many retirees are now altering family
homes to accommodate fully-fledged home offices, while others are
choosing which gated community to move to on the basis of whether
the homes have office space or not.
Until now, developers aiming to attract retirees
concentrated on security, low maintenance and pretty locations.
Retirees who want to keep working, however, are starting to insist
on units that include a home office, properly planned and wired,
even if it means sacrificing some other space.
And as a departure from the previously preferred
scenic locations in the country or at the sea, they are showing
a preference for developments that are close to major employment
hubs.
In addition, they are increasingly seeking out "active adult"
communities where their neighbours are also still working at least
part of the time, as these allow more opportunities for satisfactory
social interaction.
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