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I Issue: November
2003 I Editor: Berry Everitt I |
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Your Area Specialist:
Chas Everitt International
sales agents have all the latest market information
regarding local property values at their fingertips
– and are committed to the highest standards of personal
service when it comes to selling your home. In addition,
the Chas Everitt International property group offers
you, the homeowner, the best possible exposure for your
property in both national and international markets.
So if you are thinking of selling your home, call your
nearest Chas Everitt International office today for
the name of your local area specialist - or visit www.everitt.co.za
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Every month the Property
Signpost Newsletter will be issued to all our
subscribers, filled with real estate information to
help you make an informed decision, whether you are
buying or selling a property.
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Contents
1. Welcome By Publisher
2. Critical questions for young buyers
3. You
can’t just pocket the rent
4. Get the right tools for the job
5. Don’t
let your garage become a dump
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1.
Welcome By Publisher
It's celebration time! The Chas Everitt
International property group is 25 years old this
month and we have marked the occasion with gala functions
around the country to recognize and say thank you
to all the people who have made our success possible.
These include all our agents and franchisees as well
as all our partners in the legal, banking and mortgage
origination sectors, our admin staff, our trainers
and our technology whizzkids – and, of course, our
wonderful clients, many of whom have put their faith
in us many times over the past two-and-a-half decades.
Most important of all, though, are
our founders Charles and Tilla Everitt, whose vision,
absolute integrity and empathy are the rocks on which
the group is built. We are enormously grateful to
them for instilling the values that still inform all
our activities – and we intend making them as proud
of us as we are of them as we continue to run a highly-principled
business for the next 25 years.
This month also marks the second anniversary
of the launch of our national franchise operation
– and the launch of our 50th office. With well-established
networks now in the Western Cape and Eastern Cape
as well as Gauteng, This operation is already 18 months
ahead of planned growth in turnover – and we will
shortly also be launching in KwaZulu-Natal. Beach
party, anyone?
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2.
Critical questions for young buyers
When will you be ready to buy your first home? Home
ownership is, of course, a great way to start building
wealth, and most financial advisors will tell you
it is never too early to take advantage of the benefits
of compound interest.
But many young adults worry about being able to keep
up the repayments on a home of their own, or that
ownership will restrict their job choices or travel
plans.
And home ownership should be a pleasure, not a burden.
So before they buy, they should be able to answer
the following questions in the affirmative:
• Am I ready to take on the responsibilities
of home ownership, including regular
maintenance and involvement in my community?
• Am I in a secure job that I genuinely enjoy
and intend to stay in for a few years?
• Can I afford to buy a home that I will be
happy to live in for a few years? Too many quick
sales as a homeowner upgrades to a bigger house
or better area can wipe out many of the
gains of home ownership.
• Do I have the creditworthiness to qualify
for a home loan? This means having a sound
employment record, and a record of paying bills
fully and on time.
• Can I afford the ongoing costs of home ownership
as well as the monthly mortgage
repayments? Such costs include levies, rates
and taxes, insurance premiums, repairs
and general upkeep.
If the answer to all these questions is “yes” then
you are ready to become a home owner, and to fully
enjoy the pleasures of living in and improving your
own “space”.
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3.
You can’t just pocket the rent
Have you been declaring the rental income received on
your investment properties?
Non-declaration of rentals received
- after deducting the appropriate expenditure - is a
contravention of the Income Tax Act. And with the improvements
in the efficiency of tax collections by the South African
Revenue Service, it is very likely that non-declarations
of rental income will be detected, says Paul Nelson,
director of Johannesburg-based auditing firm Nelson
Financial ( www.nelsonfinancial.co.za
).
SARS requires landlords to draw up
financial statements declaring the profits made on any
rented property . If several properties are let by the
same landlord, these statements can be consolidated.
Any expense actually incurred in relation
to the letting of the property or properties may be
noted in the statements and deducted from the gross
rental when determining the taxable profit. These are
typically interest paid on the bond; assessment rates;
costs of repairing and maintaining the property; insurance
paid on the property and any levies paid (sectional
title and home owners associations).
“The Act generally allows for revised
assessments to be issued for three years after an assessment
is issued. However, where income has actually been omitted,
this three-year period does not apply, allowing SARS
to re-open any year of assessment for which income has
been omitted,” he says.
“And if you have not declared your
rental income in past periods it is advisable to approach
SARS and settle the matter rather than to adopt the
wait and see approach. This will save you worry and
perhaps the cost of paying the additional taxes and
interest that SARS can impose.”
It is recommended, though, that you
make us of the services of a reputable tax consultant
or accountant to approach SARS on your behalf - and
to ensure that the net rental income received is properly
calculated and disclosed in your current tax return.
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4.
Get the right tools for the job
A new homeowner inevitably has a long
list of items to buy, but high priority should
be given to a household tool kit – it will
soon be needed, even if the owner has no intention
of becoming a DIY expert.
There are always some small jobs around
the house – even a newly built house - that will
not wait or are simply not worth calling in an expert
to do, and they will be much more easily and neatly
completed with the right tools.
At the very least, you should have
on hand a light hammer, a screwdriver set with bits
for different size and type screws, pliers, a small
spirit level and a tape measure, as well as a selection
of nails and screws, wood and plaster filler, insulation
tape and a general purpose adhesive.
This will equip you to handle simple
tasks like changing a power plug, hanging pictures
or removing a door lock to get extra keys cut. But
be warned - successful DIY is habit-forming and this
will fuel demand for more tools, like a power drill,
sander, saw and angle grinder. And then you'll be
needing a workshop. . .
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5.
Don’t let your garage become a dump
A large garage is a highly desirable
feature of any property, especially if you need parking
space for a doublecab or SUV, or your garden is too
small for a toolshed.
But empty space quickly becomes an
invitation for clutter, and firm discipline is demanded
if bikes and surfboards, camping equipment, lawnmower,
weedeater and garden tools are also all going
to be stored in the garage.
The first objective must be to make
maximum use of the available space by removing as
much as possible from the floor. Shelves and wall
cupboards, perhaps salvaged from a kitchen makeover,
will accommodate most of the garden hand tools, pesticides,
insecticides and paint cans that usually clutter the
floor space.
Any good hardware shop will offer
a variety of hooks to hold a bike, garden fork, pick and
spade, brooms, surfboards and even a canoe. Cheap
galvanised guttering supports can be used to hold
fishing rods and garden umbrellas safely out of the
way.
A double benefit of getting organised
in this way is that whatever you want out of
the garage will be visible and easily accessible.
The garage will also be easier to clean and that will
discourage insects, rats and snakes from taking up
residence.
And when the time comes to sell
your home, a tidy, spacious-looking garage is bound
to be a
plus for potential buyers who also need ample storage
space.
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