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PREVIOUS TOPICS

· Which types of properties show the best investment returns
· Which area in which to buy and why.
· How to make your property appealing to sellers - tips that work.
· Market commentary - recession seems to be over, is it now the time to buy?
· How to buy property
· What role does interest on your bond play?
· Interesting property facts
· Getting on the property ladder...
· Why we are different
· Centurion Townhouses - Best buys

Real Estate News Articles

What Real Estate agents do to earn their commission

7 Things Buyers Do That Real Estate Agents Hate

5 Unexpected Lessons When Buying a Home (From People Who’ve Done It Before)

Settle your bond faster

Banks don't tell you that paying a little more than your normal monthly installment, will save you a huge chunk of interest - and shave years off your home loan term. On a home loan of R1m, paying an extra R500 more than the normal installment will take a cool R250 400 off the interest bill, and shorten the loan term by almost three years. If you have some money available now, you can make one-off cash deposits into your bond. Depending on your bank, the first deposit is free.

Alternatively, most banks have a more aggressive option whereby you can have your home loan repayment automatically increased every year. You can decide whether you want an annual percentage increase, a rand amount - or you can opt to ramp up payments so that the home loan is settled in a specific timeframe (like before you retire or in say 8 years). Usually, you can adjust these payments - or opt out of making them - at any time, without penalties. If you have a lump sum available and want to settle your home loan in one fell swoop, you usually have two options.

You can pay off all the outstanding monies (the principal debt plus interest and charges), but not cancel your bond. This means that you keep access to the loan amount; the relatively low interest on a home loan makes it the cheapest credit around. However, make sure that your bank does not continue to levy insurance premiums each month (you are forced to take out cover for the property when you get a home loan) - a common problem. Alternatively, you can cancel the bond. You will have to give some notice, usually three months. If you want to cancel it within a shorter timeframe, penalty interest will be charged. Given the huge amount of interest you'll save, paying back your home loan early looks like a no-brainer. However, it doesn't make sense to pay off your home loan debt if you have any other outstanding debts with higher interest rates. Settle more expensive debts first before you tackle your home loan.

How can I buy my first home?

Property ownership is not only for millionares. Buy your first home from only R5000 per month. Our online home loan calculator gives you the answers you need to be a successful home owner. Go to www.centurionrealestate.co.za/bondcalculator.htm

Transfer DUTY vs Transfer COST

Many see transfer duty to mean transfer costs! When they come to view one of our properties that are priced at R760000 they say that they would rather buy for R750000 as there are no transfer costs, in other words nothing to pay. This is not the case. The difference in total costs of a property of R760000 and R750000 is merely R300 in transfer duty.

Transfer cost and transfer duty are two separate things and transfer duty is only a small part of transfer costs to be paid in a property transaction. For example, a property of R750 000 will have transfer duty of R0 (Zero) but transfer fees of approximately R30 000. Banks don't finance transfer costs or transfer duties, so you need to save before you enter into a property purchase transaction. This implies you have to rent until you have the funds together, if you are a first time buyer. There are ways to finance these costs with other means such as a personal loan or your credit card budget facility at a higher percentage interest that that of the home loan itself. Home loan debt is one of the cheapest forms of credit there is in terms of the interest % charged and period allowed over which to repay the loan.

Here are all the details regarding transfer costs and transfer duty.

Please email info@centurionrealestate.co.za for more information.

SARB interest rate adjustments

As to future policy moves, one can rest assured these will be made in line with prevailing conditions, data and expectations. It seems clear rates will remain low for a considerable period of time while inflation is well behaved, growth underperforms and the output gap remains wide.

Owning a home is still a dream come true

Home ownership benefits individuals and families, strengthens our communities and is integral to our nation's economy. Home ownership fosters communities, creating social stability and building wealth over the long term for owners. Academic studies have shown the positive social benefits of home ownership, such as higher student achievement among children of homeowners versus that of non-owners of similar socioeconomic background. People who bought within their means with the intent to stay in their homes for more than a few years, have the opportunity to build financial stability into the future. A home loan might last 20 years, renting is forever. Home ownership is not for everyone, but anyone who is able and willing to assume the responsibilities of owning a home should have the opportunity to persue their dream.

A positive property market

Its time to kick back, relax and enjoy the carefree lifestyle you deserve - you can now truly have it all - The recent evidence of a sharper inflation fall, has raised hope for another interest rate cut. Inflation in SA is now trending down meaningfully. If the rand stays strong, rates could be cut as early as September 2010. The low rates are helping aggressively priced properties move quickly off the market, resulting in positive price growth. We expect the continued recovery to be gradual. Low interest rates (lowest since 1981) and increasing economic growth is stimulating increasing demand for housing. Our buyers and sellers have renewed confidence and that is clearly evident with an increase in purchases. The massive scale of infrastructure improvements such as roads, public facilities, transport networks and airports for the World Cup should contribute towards higher property values in surrounding areas in time to come. SA is also unusual in its potential for market expansion over the next few years as hundreds of thousands of people become increasingly economically empowered and enter the formal housing market for the first time.

Think long term

Human nature involves the extremes of investment emotion - both greed and fear - in the moment; it is hard for most people to act in opposition to their emotions. Therefore most investors tend to project near-term trends indefinitely into the future. It is difficult to stand apart from the crowd and take a long-term perspective. Who ever owns property, benefits from it tremendously financially over the long term. The principles of inflation and interest rates creates this benefit although not immediately apparent. If a property is purchased today for R500000, the monthly payment is +-R5000 on the bond, or a similar property can be rented for R4000 monthly.

In 10 years time, the bond repayment is still R5000* while the rent will be R7423 at 8% inflation annually. When buying, the monthly cost becomes negligible over time - If the same property was bought 20 years ago, the payment would probably be less than R1000 monthly today. And, after the 20th year the property is fully paid up with no more monthly bond repayments. After 10 years from now the R500000 property of today, could be worth R742,300 at 8% inflation annually, implying a R242,300 profit on selling. Unfortunately, most seldom think long term.
(*There are fluctuations in interest rates, but it will be much lower than the R7423 rental at the same period in time and has the possibility to increase or decrease)

Property in for a good run due to good current fundamentals

SA is unusual in its potential for market expansion over the next few years as hundreds of thousands of people become increasingly economically empowered and enter the formal housing market for the first time, and those that have already done so, move to larger properties. Also, SA property investors are becoming increasingly aware that property investments outperform other investments in the long term, and are starting to accumulate portfolios of local properties rather than spend their money elsewhere.

SA was the best performing housing market over the long term, according to the latest figures from The Economist. Favourable interest rates, inflation rates, relaxing credit extension policies, loan to value ratios, realistic property prices and an overall more positive consumer outlook is resulting in a positive market sentiment. The length of time that a property is on the market has also come down.  The softened prices of existing homes is offering better value than a potential new build.

Banks are now offering 100% bonds, with Standard Bank leading to finance transfer costs (104% bonds). Prime and mortgage rates are at a low of 10.5%. Rand strength seems to be keeping rates low at the moment. Property prices are still reasonable, although the national median house sale price seems to be rising now. More are starting to think that now is a good time to buy, judging by increasing property sales volumes and the number of buyer queries.

There are many reasons to be optimistic, such as the Gautrain and an increase in the migration of workers to Gauteng.  South Africa is the strongest economy in Africa, and exciting investment opportunities present themselves all the time, and our recently upgraded infrastructure will also reveal some property gems close by these new access routes. This is a good time for the first time house buyer to own a home in Centurion. Time is an important matter, while there are still well priced properties around. All the necessary property fundamentals are there.

Property market returning to a seller's market...

With banks now offering 100% bonds across the board* and prime and mortgage rates currently at 10,5%, the same as it was at the low point in 2006, property is returning to a seller's market with many more buyers currently searching for the right property to buy. Luckily there are still many bargains to be had. The repayment on a R500,000 property is now still only R4660, calculated over 20 years @ prime less 1%, with no deposit and 100% finance. This is very close to the amount to be paid when renting a similar property.

(*FNB, Standard Bank and Nedbank now offer 100% bonds to buyers, and deposits are thus no longer required - also, one no longer needs to be a customer of a specific bank to obtain a 100% bond, it is also granted to non clients.)

Investors are seeing better returns

Rental returns are becoming stronger and stronger every day. People with investment properties are seeing a better return not only from rentals but from ongoing drops in interest rates. Investment purchasing has overtaken first time buying at the low end of the market in the last few months. This is attributed to ongoing interest rate cuts which are closing the gap between purchase prices and rentals, making it easier for investors to service their bonds with the rentals they are able to command.

We do the ground work, which includes researching with areas have the fundamentals for good growth and strong rental demand. We understand property cycles and are able to recommend different areas to suit different clients. We also offer a complete solution for anyone wishing to invest in property, including the services of property management, solicitors and lenders.

Getting a home loan

Banks only approve the best applications and the client needs to be in a strong financial position. Banks look at prompt payments of accounts on a monthly basis, look for any unpaid debit orders, and in some cases will not consider an application for six months after a late payment, even if it is only a store account.

We recommend that the home loan application be discussed with an experienced agent, even before the search for a suitable property starts. The agent will be able to advise at which bank the best chance to obtain a home loan lies, according to the particular bank's current lending criteria. Buyers are also advised not to apply at all banks at the same time, but to apply at the bank where the best chance for success lies. Due to the requirements for financial transparency, banks know when an application has been sent to more than one bank, and gives preference to individual applications at one bank. Banks prefer clients that have a banking history with them.

Clever investors will be well rewarded for renting out their properties, as they can raise rentals over time dependent on market conditions, and collect a bigger profit each year. If you are considering buying for investment, remember rental collected on a paid off property can be seen as passive income, i.e. you do not have to go to work daily to earn it. Property is a long term investment, and property owners will enjoy the capital growth annual rental increases on their investment over the long term.

Also note that for a 100% bond, the interest rate is in some cases not as good as if the client is able to put down some deposit such as 5% or 10%. It is also possible to use the budget facility on your credit card to pay for transfer costs and full/partial deposit dependent on how much credit you have available. You can also ask the bank to increase this credit facility to the allowable amount according to your income which may have increased (banks are no longer allowed to increase this amount automatically). Some attorneys will also consider payment plans for the deposit and/or fees. You can also a niche banks such as Virgin Money. Absa currently offers a pension supported housing loan, no funds is extracted from your retirement benefit, and a credit life policy ensures your bond is settled on death, disability or retrenchment. It is also possible for the client to apply for a personal loan – Personals loans can be obtained for up to R100000 by completing a simple 1 page form and the rest being telephonically arranged. If you have a fully paid up property, we will be able to motivate for a 100% loan with the current property being security. Employees of Eskom can also obtain 100% loans.

We sell it faster

In what can only be described as a tough market, Centurion Real Estate sold 3 properties within days of listing! Johan got a call from the seller of a unit in Crystal Springs in Eco Park Estate at 2pm and by 6pm the same day had an offer for the seller at asking price. Vera was informed by a seller that a unit in Kashan Villas, Hennopspark as well as Lanzerac, Highveld needs to be sold urgently. By the following day Johan had an offer on the property in Lanzerac, Highveld on asking price. Julia had a signed offer for the property in Kashan Villas for seller on asking price.

Our advice to sellers for selling quickly is to ensure your property is neat and appealing to buyers, and priced in line with current market conditions. Your agent, that deals with buyers and sellers daily, has a very good idea of the current market related price. Centurion Real Estate employs a local focus and strives to serve the people wanting to live in Centurion with better service and more local market knowledge on townhouse complexes than anyone else in Centurion. We will sell it first. Talk to a Centurion Real Estate agent for more information.

Buying townhouses for investment now more lucrative

With most asset classes (unit trusts, money markets and other savings instruments such as retirement funds) performing poorly due to the international financial crisis, just where should you put your money now? It seems property is once again in favour as an investment with the number of inquiries for properties for sale from investors increasing. Some properties which did not even get a single visitor in the last few months, are getting several viewings now.

Unfortunately, banks still require a minimum of a 10% deposit, and YES even for first time buyers! This means first time buyers are currently trying to get a deposit together, opting to rent rather than buy, which means higher rentals for investors. Also, with minimal new developments due to Eskom power restrictions, finding property for sale is becoming a problem as we enter a seller’s market.

Remember, South Africa is a sophisticated emerging market with well developed financial, legislative and communications sectors. Also, South Africa has a fast growing middle class and we have instituted the National Credit Act (NCA) which has helped us weather the credit crisis.

Centurion is a great area in which to buy – it will have a Gautrain station, and currently has better prices on property than in Hatfield, Sandton and Midrand. Centurion has a good vibe and mostly low rise developments still giving it that rural feel.

Centurion also has a fairly young population mix made up of students, young working people, and families. Many companies are currently relocating to Centurion – just take a drive through Highveld TechnoPark, where 10 years ago there were almost no developments. The area also boasts a residential development, Eco Park Estate, comprising some 1 700 townhouses with a state of the art biometric security system and clubhouse with squash, tennis, gym and other recreational facilities.

Remember, it is always better to buy than rent, so if you are considering buying property, act sooner rather than later. Contact one of our experienced property consultants to find out more.

Our team helps more people move than any other agent or team in Centurion. We want you so satisfied with us that you will gladly refer us to your friends. By subscribing to our newsletter, you'll be the first to know when a new property is placed on the market. Find out before other buyers! If you are a home seller, find out how properties are extensively marketed for people like you. To view up to the minute reports and statistics of our website visits, please click here. In addition, all our properties for sale are also listed on 30+ other property related websites. List your property with us!

If you would like to receive our newsletter, which is also a valuable property informative on property trends for informed decision making please send us your email address to info@centurionrealestate.co.za?subject=I would like to receive....

Why hasn't my house sold?

Selling a home is one of the largest financial transactions that people make in their lifetime. And, pricing your home correctly is the most important factor in getting your home sold. In today’s market, pricing your home fairly and competitively is even more critical. In fact, the right price is the key to attracting showing activity.

It is critical to avoid the trap of initially over pricing to “test” the market, because buyers unfortunately feel differently; they are waiting for you to lower your price before they will make an offer.

Pricing your home is one of the factors that a seller can control. Those you can’t control include location (the most important attribute), competition (you don’t have control over other sellers in the market and their prices), and market conditions (the property market is suffering due to the fact that the banks are not giving bonds that easily).

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Home • For Sale • Rentals • Monthly Newsletters • Eco Park Estate • Centurion Central • Highveld • Centurion West • News Articles • Bond Calculator • Home Loans • Transfer Costs • Investor Seminars • Contact Us

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Call Centre Numbers 012 661 5144 • 012 661 3685 • 012 661 2102

We place a strong focus on safe and secure properties in various security estates.
Our specialty is Centurion townhouses and houses.
Properties for sale R450000 to R6 million.
Rentals R4000 to R25000 per month.