| Distressed sales: Choose the right
agent |
Tough economic conditions are pushing consumers with large debt
loads to the wall but quick action to deal with mounting debts can
save substantial sums of money and even prevent sequestration.
Homeowners who cannot service their home loans are advised to be
proactive and to try to manage the process of getting out of debt
rather than to stick their heads in the sand and hope that problems
will resolve themselves.
The first step should be to contact the lending institution to
arrange for alternative repayment programmes, such as extending
the duration of the bond, say from 20 years to 30 years. Although
it will add to the total amount of interest, it will lower the monthly
repayments.
If this is not feasible and you must sell your property, it is -
once again - a better plan to manage the process instead of waiting
for a bank to sell it on auction. However, you should not try to
save money by selecting the agent who charges the lowest commission
fees.
You should keep in mind that you mostly get what you pay for and
that an agent who stands to earn a normal commission is likely to
work much harder at selling your property than an agent who stands
to earn a discounted commission.
In distressed circumstances, its is imperative to sell as soon
as possible at a realistic price, for the simple reason that debts
keep mounting the longer it takes to sell the property.
And experienced and professional agents will have extensive backup
and access to referral systems to help achieve a quicker sale. It
is better to pay for professional services and sell quickly than
to save commission on a house that may languish in the market for
several months while your debts keep growing.
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| Renovation in a down market |
You have been transferred and need to sell your current house -
what to do?
Presenting your house at its best in any market it is still sound
advice. But in a market where prices are soft and buyers scarce
it is imperative to keep the market value in mind before you embark
on extensive renovations in an effort to attract prospective buyers.
While it is true that most buyers will not give run-down properties
a second look, owners keen to sell quickly can make the mistake
of investing too much money in renovations that they will not recoup
at selling, simply because it would price the property out of the
market.
The best course of action is to take a hard and objective look
at your property or call in the help of someone who will give you
an honest opinion. If you have kept up with maintenance work, all
that might be needed is a new coat of paint and a general clean-up.
However, if more extensive renovation is to be done, such as replacing
chipped wall tiles or worn-out floor coverings, draw up a list of
projects and then draw up a budget. Your aim should be to get your
property shipshape as it stands, not to redesign it.
Making sure that your house is clean and that everything is in
working order might be a more important selling point than a new
bathroom or redesigned kitchen.
For example, check that all light switches, door handles and kitchen
and bathroom fixtures are in good working order. Fix dripping taps
and make sure that the sprinkler system works. This will usually
please buyers and at the very least will mean that they have no
excuse to talk down the price.
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| Check where your levies are going |
Property owners in estates and cluster complexes
should ensure that they get good value for their monthly levies
- by ensuring that their homeowners' association (HOA) has a proper
constitution.
Levies collected each month are intended for the
upkeep of communal property such as gardens, recreation facilities,
fences and security systems, and are managed by an HOA set up by
all the owners in a particular gated community.
HOAs are non-profit companies usually put in place
when a new development is handed over to the new owners, who then
elect a board of directors or a management committee to implement
their HOA constitution.
Typically, such a constitution will provide for
the HOA to manage, operate and maintain common areas and facilities,
and for the directors to draw up annual budgets for necessary expenditure
as well as financial statements so that any member can see what
the levies need to be and how they are being disbursed.
The constitution should also contain a provision
that major decisions likely to materially affect owners will be
put to a vote and only carried if a majority of owners support them.
Examples of such issues include the introduction of new policies
- such as no pets being allowed - restrictions being placed on the
rental of units, and the employment of outside contractors or a
property manager.
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| Denser living is clever living |
An exodus from city centres and older inner city
suburbs in recent years has led to urban sprawl but the trend is
reversing.
Living in outer suburbs may afford luxury lifestyles,
yet it takes its toll on the environment since use of infrastructure
is not optimised and more road, sewerage and electricity supply
lines per resident is needed.
The local trend back to central living follows
that of the US, where the current economic meltdown is turning large
tracts of new development on the outskirts of cities into ghost
towns.
The reason is quite simply that central living is cheaper, since
dense development means greater access to a variety of shops and
other facilities and obviates the need to travel great distances
to work places.
The benefit for the environment is that greater
use of infrastructure, not only of roads and utility lines, but
also of schools, hospitals, libraries and green areas such as parks
or playgrounds, means fewer inroads into the surrounding countryside.
Better use of resources further creates economies
of scale, making it cheaper per unit to supply basic services to
the community. This may lead to more favourable rates and taxes
and getting more and better services for a reduced fee.
Homes in denser suburbs may have the drawback that
they are smaller and without extensive gardens, but the trade-off
is cheaper living and a greater sense of community since residents
have far more opportunities to meet and socialise with neighbours
and other residents.
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|
FROM
BERRY EVERITT
