3 March 2015
Commenting on the recent speech, Linda Erasmus, CEO of Fine & Country sub-Saharan Africa, said, “Buying a home for the first time is an exciting step in any person or couple’s life; yet added costs often make such a purchase complicated. The minister recently had good news in his budget speech for first time home owners when he announced that properties valued up to R750 000 would be exempt from transfer duty. This should fuel the first time homebuyers’ market and is a very welcome relief for this market sector.
“There is no doubt that the sectional title market will specifically benefit from this announcement. However, first-time buyers still need to be guided regarding the differences between freehold and sectional title properties, as sectional title units have their own set of complications. Before you buy a sectional title unit, make sure that the complex management is organised and that the finances of the complex are in order. Always ask for a copy of the body corporate rules to get assurance regarding issues, such as whether your pets will be allowed to move in with you”.
She adds, “On the other hand, a free standing home under R750 000 is made really easy to buy and ‘fix-uppers’ in this price range will, once again, become a popular product in the shop of real estate agents. The consequence is that most real estate agents will flock to this market, as it is seen to be an easy and more prosperous market, while the top end of the market will, once again, be left to those experienced agents who know how to deal with the normal ebb and flow in the property market. My advice to sellers in this category is that they should make sure that they are dealing with professionals who are skilled in this end of the market place because it remains a challenge to market properties valued at more than R10 000 000 in South Africa.
“The high end is not as vulnerable as the lower end of the market when it comes to budget speeches and their consequences. Once-off payments do not have the same effect on a market place as interest rates, which influence payments over a longer period of time.”
Readers can contact Linda Erasmus on (011) 234 6545 or 082 322 0079 or firstname.lastname@example.org for more information or visit www.fineandcountry.com
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