An amenity is a feature or aspect, natural or man made, that enhances a property, real estate, place or area. It makes it more attractive and satisfying for people.
Smaller, cheaper houses in the residential market were apparently the hardest hit by last years dismal performance by the property market. Smaller,cheaper houses were defined as two bedroom, freestanding homes that cost an average of R332 000. This segment of the market saw a 9.6% drop in the final quarter of 2008, although a large contributor to this was the fact that most of these homes are in low-income areas.
According to FNB’s homeloans department it was likely that investors were reluctant to buy because of the bad growth experienced last year, therefore affecting the buy-to-let market negatively, and by first time buyers not making purchases. Investors and first time buyers usually buy smaller houses as they are easier to rent out and more affordable.
There could be many different reasons for first time buyers not to purchase, tougher regulations because of the NCA making it more difficult to obtain a bond and perhaps even personal choice to remain where they are until the current economic turbulence settles down, all this could have influenced their decisions.
US President Barack Obama yesterday succeeded in getting a major financial stimulus bill approved by the House of Representatives. The financial package within the bill is huge and amounts to $819bn.
The US has suffered greatly and was the first major world economy to fall under the global financial crisis the whole world is facing. They have experienced huge job losses putting the average American under an enormous amount of financial pressure and pushing many into financial collapse.
Companies are expected to continue cutting jobs well into the next few years to save themselves financially which paints a bleak future for many financially stressed debt-laden Americans.
Pres. Obama has said in a written statement that the enormous stimulus package will create over 3 million jobs for Americans over the next few years. This will bring hope to many people who are expecting their financial situation to get worse before it gets better.
Give us your views on this decision.
This is the fourth and final instalment of “Landlord’s frequently asked questions” . We try and answer these questions to the best of our abilities but in the event of any dispute between yourself and your tenant contact your local Rental Housing Tribunal. They will be able to instruct you on the legal route to follow when dealing with your tenants.
10.What can I as the landlord do if the neighbours complain about my tenant?
All tenants must comply to the house rules of the complex or area they stay in, if they are in violation of these house rules you should be able to implement the cancellation clause in your contract and give your tenant notice. As always it is best to keep a record of your correspondence with the tenant regarding complaints against them and the actions you intend to take.
11.What can I do if I suspect my tenant is doing something illegal on my property?
Immediately report your suspicions to the police, you can also include a clause in your lease agreement allowing you to cancel the lease immediately if the tenant is found to be committing an illegal act on the premises.
12. Can I use my tenants deposit to repair damage they have done to the property?
Excluding reasonable wear and tear, you may use your tenants deposit to repair damage that they have done to the property. You need to be able to provide the tenant with receipts that reflect the cost of the repairs and you have to return any leftover monies to the tenant. Always inspect the property together with the tenant when they move in and out, you can then compare the two lists and see if they have damaged the property.
As I said above if you encounter any problems with your tenant contact the Rental Housing Tribunal in your province. You can also refer to the Rental Housing Act of 1999, this is easily found and downloaded from the Internet.
Real estate can make you and your family very wealthy, if done correctly. There are many experts that will say the stock market is better, but there are just as many that prefer property. I think the thing about real estate is the fact that we ALL deal with real estate in our daily lives.
You go home to be with your family and have a place to sleep. You go to the building where you work and we ALL go to shopping centres and other businesses.
But the biggest mistake many make is to thing hat it is a free ride when you invest in property. So here are a few rules you can apply to make real estate investment a realistic possibility for you.
That;’s right, property is a long term investment. you can not get rich, wealthy or financially free over night when you invest in real estate you need patience. you should always focus on building your wealth in real estate over a long periods of time, years in fact. If you do you WILL be financially free one day. The great thing about long-term investments are that short-term fluctuations do not really affect them and you will be able to sleep at night. Be careful of get rich quick schemes. They seldom actually never work.
Cash flow is king – Income vs capital growth
Many investors underestimate the importance of cash flow. Without it you will go bankrupt. For this reason it is a good idea to focus on generating income from your property portfolio, the capital growth is the cherry on top. As long as you can pay the bonds, with the rental income, your property can keep growing and when the bond is paid up you get to keep the income as well as the capital growth.
Slow and easy…
Take your time when looking for that special property. The days of finding bargains at the drop of a hat are over, even when the economy does poorly. You have to keep your eyes open and find those properties that can give you positive cash flow immediately, this is difficult I know, but if you keep looking, you will find them. The other option is to buy really low risk real estate, property that has a minimal shortfall. As long as you can afford to py the shortfall out of your pocket you’ll be fine.
Become the expert.
Choose your property type and learn everything you can. Because people tend to think real estate is too difficult or even risky you can become an expert by getting the right info. Research areas and get growth reports. Many sellers don’t know how to research property so you could potentially get bargains because you have the information.
Use your raise to invest.
If you still have a day job you probably get raises through the year. instead of upgrading your life style buy real estate. In a few years you won’t need to work any more and you will be glad you decided to invest in the future and not instant gratification. This is probably the most difficult thing to do but if you motivate yourself you can and will do it.
So. Go out and start looking for that property, always plan first though…
According to FNB’s latest Residential Property Barometer, released on Monday, there may be bad news for home owners hoping for quick sale.
According to the figures released, currently the average time it is taking for a property to sell is 15 weeks and 3 days or almost 5 months. However this is still vastly better when compared to 20 weeks and 1 day which is what it peaked at. Although the time frame has improved it probably also points to most sellers not getting their asking price.
We will have to wait and see what the Tito Mboweni does with the interest rate in the coming months to get a better idea of what homeowners can expect this year and the year to come. The interest rate will influence many homeowners in many ways whether it goes up or down.
The removal of a tenant from a rental property because of the legal steps followed by a landlord. A landlord may evict a tenant who is breach but only by following the legal route.
When a professional assesses your asset or property in order to give you its current market value. This will aid a seller and a buyer by letting them know of if they are paying too much or selling for too little.
Many people who want to save alot of money over the long term will opt to keep paying their higher bond repayments instead of taking advantage of the recent interest rate cuts and those that are likely to follow as the year progresses.
By paying more than your monthly minimum you could save yourself hundreds of thousands of rands in interest over the term of your bond.Besides that you could also shorten the length of your bond. This is good news to most of us, as none of us want to be tied down financially for all eternity.
Some homeowners are however not in a position to continue paying such a high bond and really need the financial relief the rate cuts can bring. But for those homeowners who have become used to paying the higher payment or if you suspect you could pay a bit extra it would be a great idea to check with your lender and ask them to assess how much you would save in the long run by paying a little bit extra each month.
Always check with a qualified professional before making any decisions that could drastically affect your life.
This is the third instalment of “Landlord’s frequently asked questions” , you can find the previous instalments in the sites article archives. We try and answer the questions to the best of our abilities but it is always a good idea to seek out professional legal advice, for example by calling the Rental Housing Tribunal in your province. They offer advice regarding landlord/tenant relations.
7.If my tenant’s lease expired a few months ago and they are still paying for and living in the property may I give them notice to vacate the property immediately?
NO, the first thing you should do is check your lease agreement for a clause specifically for this event and follow what it says. If there is no such clause then you and your tenant have effectively renewed the original lease and all it’s terms including it’s length and period of notice clause. If you still wish to evict the tenant before the end of his newly renewed lease you need to follow the terms set out in the cancellation clause of your lease agreement, if you have such a clause.
8.Can I evict my tenant myself, if not, how do I do it?
Unfortunately no matter how tempting it is you may NEVER evict a tenant yourself. Check what your contract says and if the tenant is in breach follow the legal route and call your local Rental Housing Tribunal. They should be able to advise you on how to obtain a court order to evict the tenant.
9. May I change the locks on the property and lock my tenant out?
NO, this is illegal. It is considered an illegal eviction and you as the landlord could get in serious legal trouble for doing it. If you need to change the locks on the property you must give the tenant a spare key so that they may also access the property.
Let us know how you successfully evicted a problem tenant the legal way.