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I Issue: September
2004 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.chaseveritt.com
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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. Hire a letting agent - and relax
3. Make sure
you're not overwhelmed by ownership
4. Shred those kitchen revamp costs
5. Take care with the contingency
clause
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1.
Welcome By Publisher
Who says you have to be an
"old hand" to succeed in the real estate industry?
We don't. In fact, we believe that the industry has
benefited from the injections of intellectual capital
and business experience with the entry, in recent
years, of players from many other sectors.
Consequently we encourage franchise
applications from outside the industry, and have already
accepted several - with excellent results. Our latest
success is the Cape Town northern suburbs franchise
which, although just three months old and operated
by two entrepreneurs who are newcomers to the industry,
is already generating more than R20-million worth
of home sales a month.
The Chas Everitt International
franchise in Pretoria East, bought last year by an
"escapee" from the IT industry, is performing similarly
successfully - and our brand new office in Jeffrey's
Bay, managed by a former banker, has already won a
service award from local Businesswomen's Association.
Which is not to say, of course, that old property
hands can't do very well too.
The point is that, with the
right franchise partner - and the right attitude,
of course - business people from across the spectrum
can succeed in real estate - and make a valuable contribution
to the development of this industry. And on that note,
we hope that this month's articles get you thinking
- and contributes to your own store of knowledge about
property.
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2.
Hire a letting agent - and relax
Whether you're an investor with several properties
to let or a homeowner keen to tenant your property
while you're away on a work contract, you can simplify
the process by hiring a good letting agent. Such an
agent is usually paid 10 percent of the monthly rental,
but the peace of mind that comes from having a professional
handle the lease, the tenants and the property in
your absence is worth this fee.
The question is, then, how to select your letting
agent? A personal recommendation always helps but
if you have to go it alone, preferably choose an agent
who already manages a portfolio of rented accommodation
and can provide references from other landlords. You
should also make sure your agent is registered with
the Estate Agency Affairs Board, has a trust account
for clients' money and only takes commissions from
landlords (not from tenants). Having made your choice,
it is likely that you will be asked to sign an agency
agreement or "letting mandate" that covers the agent's
right to let the property on your behalf and manage
it during the tenancy.
Make sure you read it and do not sign it if there's
any part that is unclear or that you don't agree with.
Similarly, you should check out the lease agreement
your agent will be using. And if there are any special
instructions you want your agent or tenant to follow,
put them in writing, date them and keep copies in
a clearly marked file.
However, once you've reached agreement and the agent
knows what you expect, it's time to back off and let
the agent do his or her job. An experienced Agent
will know how to find a suitable tenant and how to
check references. He or she will also ensure that
an adequate deposit is paid and react quickly and
correctly if the rent is not paid promptly or if repairs
are needed. And that is, after all, the service you
are paying for.
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3.
Make sure you're not overwhelmed by ownership
First-time homebuyers are usually
so wrapped up in the excitement of house-hunting and
being granted a mortgage that they give little thought
to the costs of running and maintaining a property once
they actually own it. Their new home is likely to be
bigger than the one they were renting so the need for
additional furniture, curtains and perhaps new appliances
will soon make itself evident, but they should perhaps
put off buying these until they have assessed the full
extra costs of ownership and the effects of these on
their household budget.
For a start, the monthly municipal
electricity and water service costs are likely to be
higher than they are used to, particularly if they move
from a flat to a new home with a garden. The levy in
a flat or townhouse complex may also have hidden other
costs that can come as a surprise to new homeowners
- such as property rates and insurance. Home maintenance
will also now have to be built into their budget. This
is not an option but an essential, as deferred maintenance
can quickly lead to budget-breaking expenses. Gutters
that are clogged or broken, for example, can easily
result in water and damp damage to internal and external
walls, and delaying a paint job can similarly lead to
a much bigger bill in the end.
New owners often also come up against
the temptation to carry out home improvements, which
usually does not arise in rented accommodation. The
proliferation of D-I-Y shops in most shopping centres
these days is clear evidence of the burgeoning home
improvement trend in South Africa, and new owners need
to discipline themselves and work to a careful improvements
timetable if they are to keep to a tight budget.
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4.
Shred those kitchen revamp costs
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Probably the most popular home improvement
- and one that will most certainly add value to your
house in the event of a sale - is a kitchen renovation.
The trouble is, the cost of a kitchen revamp can easily
get out of hand unless you plan it carefully beforehand
and stick to your budget. Depending on the amount
of work to be done, the materials that will be required
and whether new appliances will be installed at the
same time, you can probably count on spending at least
R25 000 to R30 000 to remodel the kitchen in a fairly
average family home. And although anyone paying that
would not want to cut corners or skimp on some of
the best modern kitchen fittings and finishes, a few
tips may help you get more for your money:
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Avoid
moving doors and windows, and try to keep appliances
and the sink in place to avoid expensive plumbing
and electrical work. Study
a number of cupboard and drawer options to make
sure you get the best use of available space -
modern design has gone a long way towards making
previously inaccessible storage areas more usable
- and stick with standard units rather than having
them custom-made. Consider
modern, durable laminates for work surfaces as
they are much cheaper than tile and granite, and
stay with neutral colours for walls and surfaces
which are serviceable and will not go out of fashion.
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Compare
prices from several kitchen builders / designers
and material suppliers before you let anyone start
work.
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5. Holiday homes need
year-round security
Low interest rates and
the current popularity of property as an investment
has made the purchase of a holiday home an attractive
option for many families today. But they need to bear
in mind that good security for their second home is
just as important - if not actually more necessary -
than for their primary residence. Any pattern of occasional
occupation, during school holidays, say, or only at
weekends, will be quickly recognised by potential intruders,
and the danger is even greater if the property is a
freehold house in a resort area where many of the surrounding
houses are also unoccupied for much of the time.
A house sitter might
seem like a good solution, but it is hard to find a
reliable sitter who is prepared to move in and out to
suit your programme. Another option may be to buy a
property that includes a cottage in the garden or a
"granny flat" which can be let to a permanent tenant,
although that will obviously be more expensive.
You could also consider
having a domestic worker or gardener live on the property
permanently. However, even if the property is inhabited,
your best bet these days is to install and external
and internal electronic surveillance system linked to
an alarm and the operations room of a security .
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