| Strategies for selling rental property |
Property investors who entered the buy-to-let-market during the
low interest rate cycle and who are now considering selling their
investments should carefully plan their marketing strategy.
The reason is that selling tenanted property can often prove difficult,
even in a market where demand is strong. It follows that selling
property with a sitting tenant is even trickier in a market where
buyers can pick and choose among properties on offer.
Whether justified or not, tenants have a bad reputation, and most
people looking to buy a home for themselves are none too keen on
tenanted properties. Their concerns generally centre around maintenance
issues since they suspect tenants of not caring for rental property
as much as they would have if they were the owners.
And even if the landlord has diligently maintained the property,
he may find it very difficult to sell if the tenants do not wish
to vacate the premises. Tenants are in a prime position to sabotage
any effort to show the property to prospective buyers - they may
simply refuse to agree on any time for agents to show the property
or deliberately leave a mess when potential buyers are coming to
view the property.
Another strategy is to poison the well by telling prospective buyers
"horror stories" about the property or the neighbourhood.
The best advice for selling rental property is to wait until the
tenant contract expires but in cases where this is not feasible
the best course is to consult the existing tenants about whether
or not they may wish to buy.
If not, the situation should be explained to them and they should
be given reasonable notice. Then once the property is vacant, it
can be prepared for sale and marketed through an experienced agent
with the incentive that it is available for immediate occupation.
| Back
to Top |
| Pick a second home with care |
The current buyers' market is stimulating demand among investors
looking to buy a second home.
Prospective buyers are encouraged by a wider selection of properties
on the market and are also on the lookout for bargains as some over-extended
investors come under pressure to sell because of higher interest
rates.
However the new class of investors are not primarily interested
in the buy-to-let market. Rather they see the current conditions
as a good opportunity to buy quality homes as a longer-term investment
that can double up as a holiday home or eventually as a retirement
home.
But investors must look before they leap into the market and should
- as always - do their homework before they make any offers, the
first criterion being to determine whether they can genuinely afford
the investment in a second home and to leave room for possible further
interest hikes.
The second is to establish the size of the bond for which they
will qualify. It would be presumptuous to simply assume that their
banks would be willing to extend a bond under the same conditions
as any existing bonds they may have. For instance, they may well
find that banks are only willing to finance a smaller percentage
of the purchase price of a second home, or that a higher rate of
interest would apply.
Other financial factors that should be borne in mind include transfer
costs, Capital Gains Tax and holding costs such as rates and taxes
or levies.
However, in the current uncertain financial climate, bricks and
mortar still represent a solid investment, especially for buyers
who are willing to wait for capital growth. And to get the most
use out of a second home, it makes sense to buy in an area that
is within easy reach of one's permanent home.
| Back
to Top |
| Eating-in puts kitchens in the spotlight
|
Even during the good times hospitable South Africans
have never really given up on home entertaining - but now especially
the cookery books are being dusted off as inflation bites deeper
into disposable incomes.
The problem is that the kitchen has become part
of the living area due to space constraints in modern open-plan
homes and a dingy kitchen may detract from the pleasure of hosting
a dinner party.
However, modern materials and fittings and specialist
kitchen design and installation companies make it easier than ever
to spruce up the kitchen - and a makeover will not only enhance
home entertaining, but also add considerable value to the home.
Busy cooks will know that a kitchen needs to be
highly organised and this is where professional help may be invaluable.
Companies specialising in kitchen renovations use computer-aided
design that can give homeowners a wide choice of layouts as well
as materials in different price ranges.
Once the most practical layout has been decided,
homeowners can start looking at nice-to-have features such as nifty
pot drawers, slide-out "pantry" drawers that make storing
and selecting ingredients a cinch, and maybe a lazy Susan in a corner
cupboard to make optimum use of the space.
Manufacturers of kitchen cupboards have also brought
many innovations to the market that can make life easier. Self-closing
hinges, hi-tech runners that make drawers glide smoothly and clip-on
doors that can easily be replaced at a later stage when homeowners
feel it's time for another change are examples.
And once those practicalities are out of the way,
it is time to choose surfaces and finishes that will seamlessly
integrate the kitchen into the overall décor scheme of the
living area - and make entertaining a real pleasure.
| Back
to Top |
| Security lights: Avoid the Alcatraz
look |
Security experts view proper lighting as non-negotiable
- but that does not mean your night-time garden has to resemble
a high-security prison yard.
Proper planning can combine security elements with
a little magic that will make your garden look inviting to all but
uninvited guests. And given the electricity emergency it makes sense
to get the most out of the power you need to enhance the safety
of your home.
But how to go about it? In the first instance you
should pinpoint areas that could serve as hiding places or entry
points for intruders. The next step is to look at features in the
vicinity that could act as a focal point after dark.
For instance, if you need to light up your gate
area and have a tree with striking branches at the entrance, positioning
a spotlight that would illuminate the entrance and pick out the
tree at the same time, could create a dramatic effect.
Similarly, overhead lighting at doorways discourages
intruders, and a display of flowers or sculptural plants in pots
near the patio door will make a brilliant show at night.
Soft lighting in a deeply wooded area will add extra depth and interest
- and if it is well placed will reveal any intruder approaching
the house from the cover of the vegetation.
And finally, in these days of scarce electricity,
rising costs and the spectre of penalties for excessive use, it
might be wise to invest in solar lights for the garden wherever
possible. This will not only reduce long-term costs, but also mean
you still have a measure of security when the dreaded outages occur.
| Back
to Top |
|
