Since the release of President Nelson Mandela on the 11th of February 1990, the property market has undergone a few changes and some of them have been quite interesting, to say the least.

The average house price in 1990 was R530, 000, for a three bedroom, two-bathroom house, which today would sell for approximately R 1.4 million. The rental for a two bedroom flat was R600-00 per month 20 years ago, for which you would pay at least R5500 per month today.

“We have been through a lot of changes,” says Adrienne Hersch, CEO of ADRIENNE HERSCH PROPERTIES who had been operating as an agent for 7 years in 1990 and was 2 years away from opening her own business. “In 2001 we were going through yet another slump and before we could wipe our eyes, we were in 2004, the biggest boom ever seen, with property growth at a staggering 37.4% putting South Africa in the # 1 spot on the World Wide Property Index ahead of Spain and Hong Kong”

During 1990 the interest rates were at 20.75% and slowly on its way down to a low of 15.25 in 1993, which rose again to a staggering all time high of 24% in 1998.

Adrienne further says, “In June this year, 20 years after Madiba’s long walk to freedom, South Africa will be hosting the Soccer World Cup while we patiently climb out from the bottom of yet another property cycle with interest rates at only 10.5% making it an excellent time to invest in property.

When asked about the future of the property market Adrienne said, “The year started very well with excellent attendance at our showhouses and more sales than this time last year. “Twenty years from now people will tell their children how cheap houses were in 2010 and about the bargains they could have bought at the time”

“Owning property is the greatest financial freedom in the world”

 

 

Most of our agents are reporting a much higher showhouse attendance than was experienced in 2009 or even in 2008, with some properties having as much as 47 potential buyers going through one particular property.

Adrienne Hersch, CEO of ADRIENNE HERSCH PROPERTIES says, “The last two Sundays our agents were inundated with visitors and quite overwhelmed with enquiries, which is a pleasant change to the four or five visitors we had in the past”

Adrienne added, “Our agents found it exhilarating that they had to scramble to get all the names of the visitors, and at the same time dealing  with questions from the various interested parties.”

This time of the year is normally the time that people change jobs or children change schools, coupled with the challenges of travelling in the traffic that gets people scouting for something new or closer to work.

It seems as if 2010 started with people feeling definitely more positive about the near future and are prepared to start looking at upgrading or moving to more appropriate  housing to suit their needs.

 “Buyers are still spoilt for choice, with a lot of homes on the market, but not for too long  says Adrienne”. “As soon as there is an equal number of buyers as sellers, we will see a sharp increase in property prices, which we feel will start in the third quarter of 2010.”

Adrienne Hersch   011-728 7013

 

Wouldn’t it be fantastic if we knew exactly what the property market is going to do next year, or the next 5 years? We would all rush out immediately and buy everything we can lay our hands on, especially if we knew that properties prices would double in 5 years time.

Adrienne Hersch, CEO of ADRIENNE HERSCH PROPERTIES, says “The property predictions for 2009, was that property prices would not grow at all, but ended up rising slightly more than 2%, according to Absa’s latest Property Indicator”

Adrienne further says “I believe that this is the best time to buy property as the market has bottomed out and the year ahead will see a slightly better growth of approximately 6 – 8% for 2010”

Adrienne also says, “The number of showhouse visitors have steadily been increasing since September and that’s normally the first indication that the market is improving”

Dollars, Divorce, Departing as well as moving closer to work are still the main reasons why people sell whereas, the number of buyers that are buying to upgrade have increased steadily after being quite for some time.

With the high gold and platinum prices, and stable interest rates, this will be yet another excellent year to invest in property and look back 5 years from now to a good investment.

 

And it’s worse if you have children

There is hardly any suburb where you won’t hear traffic noise and people have to decide which is worse. Sitting in traffic for an hour each way to work and back, or the sound of traffic when you’re standing in your back garden.

Adrienne Hersch, CEO of Adrienne Hersch Properties says “There seems to be much more traffic on the roads these days than ever before and many people still arrive late for appointments even though they leave half an hour earlier than before”

You can drive past any school after the final bell has gone and you will notice the number of cars still arriving with mom or dad looking very guilty and anxious, knowing their children might get detention

In certain suburbs the traffic seems more congested than ever before during peak hour, and the number of children that have to wait for someone to pick them up is getting a more pressing issue than ever before.

Adrienne says, “It is vital to live near the school that your children attend for a number of reasons.

• Firstly, the stress level of sitting in traffic driving to school every morning, rushing home to pick up the kids and maybe rushing back for sport practice or dropping other kids off, adds a lot of stress to the parents as well as the children.
  
  
• Secondly, there is a huge cost saving not only on your petrol bill, but also on the amount of money you will spend on health issues that are caused by stress.
  
  
• Thirdly, your relationship with your children will greatly improve because there is less stress caused by being late for school.

Adrienne says, “We are all affected by traffic. We either sit in it, or we listen to it”, but make sure you choose the one that creates less stress”

 

You could be in for a very nasty shock with the next big rains and could end up costing you a fortune, even if you have insurance.

Adrienne Hersch, CEO of Adrienne Hersch Properties, says, "Gutter Maintenance is an essential part of property maintenance and needs much more attention, especially as the trees in most gardens have grown bigger and bigger and the storms more violent"

During the dry winter months, a lot of dust and leaves accumulates on the roof as well as in the gutters, which turns to a gooey mud as soon as the first rains fall and blocks up all the gutters.

Adrienne further says "As soon as the first big rain starts to fall, the blocked gutters will overflow and with nowhere for the water to go, except to overflow through your ceilings and all over your expensive carpets and furniture, creating a huge damp problem".

Apart from the inconvenience of mopping up, and candles burning because the lights blew as well, you have to find the telephone number of the bank's insurance division, while at the same time scratch around for you Bond Account number.

Adrienne also says, "Make a point of cleaning the gutters before the rainy season starts and keep all the important telephone and account numbers in an easy to access place"

By now every South African knows that saving electricity is an overriding need and they also know that switching off the geyser when you go to work and switching it back on when you get back home is a good way to save on the home electricity bill.

But did you know there are other silent users of your electricity that can also be reduced?

Computers and electronic devices

• The older the computer, the more power it consumes, even if you are not actively using it
• Set the Power settings on your computer to automatically go into Sleep/Standby mode after 15 minutes or so of inactivity
• If you use a desktop, use an LCD monitor, they use lots less energy than CRT's
• Turn your computer off when you're done for the day
• Use a laptop computer, they use lots less energy than desktops
• Use a power plug strip so you can easily turn off all your computer accessories at once
• A screensaver that shows any image on the screen doesn't save any energy at all, you save energy only if the monitor goes dark by going into standby mode or switch off the screen
• Clock radios, TVs, VHS/DVD players all use power even when they are not running. Switch off at night and switch back on at night

Lights

• Traditional incandescent bulbs are actually small heaters that give off a little bit of light – replace these with energy efficient compact fluorescents light bulbs (CFLs). They use 70% less electricity than regular light bulbs and last for several years longer
• Replace external security lights with motion sensor lights that react to movement. If you have dogs, aim the sensor just above the height of the largest dog
• Replace all-night lights with a light-sensitive bulbs, though these are initially expensive because they are CFLs, they last longer and only switch on when it is really dark, switching off again at first light
• Replace the ballast for long-tube fluorescent lighting as used in many kitchens. Magnetic ballast might use 100W to power two 40W tubes, while electronic ballast might use only 60W. Also, the electronic ballast eliminates flicker and usually eliminates hum. They also generate less heat, which saves additional money on cooling.
• Switch off all lights when not in use – it doesn’t wear out the light and it doesn’t save money leaving fluorescent lights burning. It does not take more power to start up a fluorescent light that it takes to leave it burning.

Appliances

• Fridges and freezers – set the temperatures to best not coldest; fridges from 2-4o C and freezers from -17 o C to -10 o C.
• Don’t put very hot foods in the fridge (it heats it up) and defrost frozen food in the fridge (it cools it down)
• Defrost freezers when ice is at 6 mm, heavy ice uses more electricity
• Washing machines – consider cool water settings or even cold water setting – washing machines use large amounts of electricity to heat the water. Spin dry on maximum to reduce tumble drying time
• Dishwashers – many have eco settings or can be programmed to run late at night, saving on peak electricity demand

Assessing your home and office can save the needed 10% that will assist vital services to keep on running.

For further details call Adrienne Hersch Properties on (011) 728-7013 or email gwen@freelancers.co.za

 

Adrienne Hersch Properties runs an excellent training academy in Houghton that will take prospective estate agents through the necessary training needed before writing the final Estate Agency Board exam.

This course is based on years of practical hands-on experience coupled with superb theory of real estate. The course will cover how to succeed with buyers and sellers; how to manage yourself in business; how to transact sales; the associations within the industry; and the legal aspects of real estate. The course will be lead by Adrienne Hersch, owner of Adrienne Hersch Properties; Gwen Watkins, an experienced motivational trainer and principals of Marto Lafitte & Associates Inc, attorneys.

The course runs from 4 – 18 March 2008 from 09h00 to 15h00 each day at the Academy in Houghton. Candidates get a light lunch, training manual and also have the opportunity to sit a mock exam to prepare for the Board Exams for only R2 750 per person. Classes are kept small to improve learning to lecturer ratio, so prospective students need to enrol as soon as possible.

The final Estate Agency Board exams take place on 20 March 2008 and candidates for that exam need to register with the Board before 22 February 2008.

Adrienne Hersch Academy recently ran a successful estate agents’ training course that attracted new industry entrants as well as practised estate agents preparing for the Estate Agents’ Board exams.

The intensive 11-day course not only fully covered industry subjects such as Succeeding with Sellers; Succeeding with Buyers; Succeeding with the Sale and Property Law but also included Succeeding with Yourself – including Goal Setting, Time Management and Teamwork.

The delegates were high in their praise of the course stating, “I improved my knowledge of the industry and myself and understanding of teamwork and time management.” “The opportunity to hear Adrienne and her practical experiences was an eye-opener on the property industry - feel like I short-circuited the long road to experience.” “I loved everything about the course – content, presentations, hands-on approach and formal aspects of law.” “Will recommend it to all who are entering profession and will recommend it to EAAB with absolute confidence. “ “The way the lecturers were informed and knowledgeable about their careers and the ease in which they got the information across.” “Best training I have ever been to – from day one it was interesting, informative and most importantly I have grown in the way I look at business and people.” “Excellent service training - was worth much more than we paid.“ “Not only the best way I have spent my time but also the best decision I have made - to join this company.”

Adrienne Hersch Academy will run this course again in February 2008 before the Estate Agent’s Board exams in March 2008. According to the Board, this will be the last exam under the old format before the new system of evaluating estate agents comes into effect.  People wishing to register for the exam must contact the Estate Agent’s Board directly.

“The course can only take 30 delegates, so that the hands-on intensity of the course can be maintained,” explains Adrienne Hersch, owner of Adrienne Hersch Properties.  “The course has three parts to it – I run the 7-day sales section, the 2-day property law is handled by expert conveyancing attorneys and the 2-day personal development is handled by Gwen Watkins of Skywalkers Training & Conferencing.

“For me the excitement of the course was its international flavour, we had four delegates from other African countries, and the interesting mix of people with no experience whatsoever to practising estate agents. It made for a wonderful interactive course and I trust that the February course will bring an equally stimulating group together,” concludes Adrienne.

Adrienne Hersch Properties runs an excellent training academy in Houghton that will take prospective estate agents through the necessary training needed before writing the Estate Agency Board exam. 

This course is based on years of practical hands-on experience coupled with superb theory of real estate. The course will cover how to succeed with buyers and sellers; how to manage yourself in business; how to transact sales; the associations within the industry; and the legal aspects of real estate. The course will be lead by Adrienne Hersch, owner of Adrienne Hersch Properties; Gwen Watkins, an experienced motivational trainer and Yvette Lafitte and Rui Marto, principals of Marto Lafitte & Associates Inc, attorneys.

The course runs from 6 November to 20 November from 09h00 to 15h00 each day at the Academy in Houghton. Candidates get a light lunch, training manual and also have the opportunity to sit a mock exam to prepare for the Board Exams for only R1500 per person. Classes are kept small to improve learning to lecturer ratio, so prospective students need to enrol as soon as possible.

The final Estate Agency Board exams take place on 22 November 2007 and candidates for that exam need to register with the Board before 26 October 2007.

For further details call Adrienne Hersch Properties on (011) 728-7013 or email gwen@freelancers.co.za

New income tax rules

On 1 September 2007, the South African income tax law changed regarding the sale of immovable property belonging to non-residents. A buyer, who buys a property valued at over R2 million from a non-resident, has to withhold a certain portion of the sale price and pay it over to SARS (South African Revenue Services).

If the seller is a natural person – then 5% of the purchase price is withheld; if the seller is a company or CC, the amount is 7.5% and 10% is withheld where the seller is a trust.

The purchaser must pay this amount to SARS within 14 days of withholding the amount if the purchaser is a South African resident or within 28 days if the purchaser is a non-resident.

Should you have an queries, please feel free to chat to anyone of our sales consultants.

Electrical Compliance Certificates

When a building is sold, it requires an electrical Certificate of Compliance (COC) – this is an enforceable law in terms of the Occupational Health & Safety Act of 1993.

Buyers and sellers need to remember a couple of important facts when complying with this law.

• For electrical installations completed before 1 March 1994, the issuing of a COC by an accredited person (electrical contractor) was subject to the installation being described as “reasonably safe”
• If there was a change of ownership after 1 January 1994 or any electrical changes made after 1 March 1994, then the issuing of a COC by an accredited person is a legal obligation
• If you have had alterations or additions done that affect the electrical supply, then an additional or new certificate must be obtained and added to the existing one.
• A COC is transferable if the user/lessor has kept up the maintenance on the property.
• If, as a buyer, you make electrical alterations to a property before transfer has taken place, then the seller’s COC is no longer valid nor is the seller required to replace the COC. You are required to get a new COC.
• A buyer can agree to get a COC but this arrangement must be in writing and signed by both seller and buyer.
• Should there be an invalid COC, then the seller would be in breach of the contract of sale for failure to meet the Act’s requirements.
• The Code of Practice SANS 10142-1 is the code for the wiring of premises that must be complied with.

Adrienne Hersch Properties uses bond originators to assist its new home buyers in cutting through some of the red tape that surrounds bond applications.

There are no costs to the buyer for this service because the bank pays the originator’s fees – so the buyer gets the best service completely free.

A bond originator will take down all the prospective buyer’s details. In terms of the National Credit Act, these must include all information on the buyer’s present financial commitments.  He or she will then help the buyer complete a bond application.

The bond originator will then approach the various banks to seek out the best deal for the buyer.  This facilitates the process and helps remove some of the stress of buying a home. 

Once the banks have approved the buyer’s application, the buyer can then decide which offer he or she would like to accept. Often the bond originator can get you a better rate because he or she has a relationship with the bank – this can save the buyer thousands of Rands over the life of a bond.

However, as a buyer, you are free to select your own bank or bond originator. Call us today with your buying requirements.

 

Good news for buyers

The National Credit Act (NCA) goes fully into force on 1 June 2007 and this has considerable significance for property buyers that are defined as consumers under the Act. This is all individuals, certain juristic persons [eg companies, close corporations, trusts (with more than three individual trustees), partnerships and an association of persons]

The institution providing you with a mortgage bond has to disclose all fees upfront before you sign an agreement – this gives you the opportunity to compare costs. This quote also has to include the total interest charges over the life of the mortgage and capital repayments. 

In exchange, the lender will require all of the following information from you in order to process the bond application.

• Whether your marriage or civil union is in community of property or out
• Monthly total income (including partners in civil union or marriage)
• Monthly spending (such as groceries, rent, travel costs and school fees)
• Monthly financial responsibilities (home loan payments, study loans, vehicle finance, maintenance etc)
• Age of applicant
• Solvency status (including whether applicant is under, or has applied for, debt review/judicial management/curatorship
• Whether applicant is party to any other credit agreements ie credit cards, accounts, HP agreements, leases etc
• Whether applicant has a commercial purpose for applying for the loan

At Adrienne Hersch Properties, we have professional staff and agents who will assist you in the whole process – making your next property purchase a virtual realty through Adrienne Hersch Properties

Membership of NAREA announced

We are proud to announce our membership of NAREA (National Association of Real Estate Agencies), which we know will further increase the professional level of all our staff members through its planned national representation of real estate agencies.

This organisation will enable us to speak with one voice on matters of national importance while providing supportive value and benefits for the overall good of the industry.

We feel sure that it will promote and create opportunities for professional interaction amongst members of the association and other organisations in the industry. This will lead to personal and business growth as well as networking for all our staff members.  The added benefits of lectures, reading material and discussion papers means our staff will be able to offer you, our clients, even more than our already keen service ethic.

NAREA, together with the Estate Agency Affairs Board, is going a long way to ensure transformation within the industry – a top priority in Adrienne Hersch Properties, which has already seen a true empowerment in both race and gender.

Dynamic property trend continues

Following a fantastic 2006 for our company in particular and the market in general, I am predicting an even better 2007 for everyone – investors, first-time buyers and sellers.

Ignore the doomsayers who talk about the bubble bursting – this is not a first world economy with stable, predictable trends – this is a dynamic, emerging property market as the middle-income buyer comes onto the scene. These conditions are rare worldwide, hence the lack of understanding about  the dynamics of the spiral.

Since 1994, the property market has spiralled upwards as millions of people have not only access to funds but also the aspiration to a better life.  The initial reluctance to leave traditional residential areas has fallen away as more and more people want to be closer to their work.

We are fortunate in South Africa to have strong economic leadership attracting international property investment – if you haven’t explored the opportunities the property market has for you – call us today for free and friendly advice.