R500 million of the R790 million was used to finance Vivedend for the Vusani acquisition. Vivedend has been doing a phenomenal job in a way that they managed to move from one to nine more properties valued at R515 million. This will further see Vivedend’s portfolio reaching R1 327 million worth of 19 properties, thus increasing the gross rentable area of 187 143 square metres.

Vusani Property Investments were established in 2005.  The Vusani retail and commercial properties acquisition portfolio is owned by them. Regional Executive at Nedbank Corporate Property Finance Gauteng, Ken Reynolds, said that the bank is proud to be named as finance partner of choice for this lucrative property deal.

The deal will see Nedbank being able to underscore its commitment to its investment in platforms aimed at empowering and elevating stakeholders. The bank will also underscore its dedication to the listed property sector.

Reynolds also said that Nedbank seeks to tailor financial solutions that fulfil the bank’s clients’ requirements, and anticipate expansion and cement growth in the commercial property finance industry.+

image courtesy of: getsmarter.co.za

“Green shoots here and there have given early indications that the property market started 2012 on a positive note.” However, Samuel Seeff, Seeff Chairman, says that the market is not entirely out of the woods.

In February, Seeff recorded 900 million Rand in sales as their best month in four years. They managed to reach a whopping 28% increase as compared to last year where they attained 600 million.

We cannot shelve the fact that low interest rates, annual salary increases and the flat house price growth have made homes more affordable as compared to previous years.

Seeff said that this is good news for home buyers as this is slowly relaxing the bank’s lending criteria.

Additionally, unit sales turnover market and property price growth have been subdued since the inception of the National Credit Act seven years ago. Even though Seeff asserted that the property market is not out of the woods yet; the increase in the number of units sold so far gives a bit of positivity that the market will be out of the woods by end of 2013 or at least by the beginning of 2014.

However, this recovery will be gradual and the fact that more buyers are entering the market will cause the sales volumes to be the first to increase.

image courtesy of:  repo-homes.com

South-African residential property developers have had a tough time in the past four years. Commercial Director of Asrin Property Developers, Shiraaz Hassan, said that “when the foundations for a new scheme have begun, over a third of the work it entails has already been done.”

What he meant was that the investigations and the planning of processes with government parastatals, interested parties and municipal authorities should be dealt with before the project’s inception.

He also stated that a lack of depth and thoroughness has played a huge role in causing delays, thus many projects fail to be launched.

The sad part is that many of these projects have the potential to reach high standards and attract investors, but they fail due to the above predicaments. He declared that the only way to avoid these problems in future is to focus on the initial due diligence process. This will certainly see the implementation and the success of the entire schemes.

Furthermore, the cash flow is always affected by inexperienced developers who are often caught short by dysfunctional project schedules and approvals. These inexperienced property developers also fail to consider all rezoning conditions. These normally lead to them not being able to align their cash flow.

On the other hand, Asrin said, experienced developers are always on the edge – knowing what they ought to do before putting themselves into financial constraints.

image courtesy of:  voluntaryarts.org

The Managing Director of Rawson Properties, Tony Clarke, said that landlords have been struggling with courts in the previous years. Landlords used to believe that the law is always favouring the tenants, even though in most cases, the tenants are always on the wrong side.

Adequate housing has always been the court’s agenda to comply with the constitutional rights of citizens. Even though this has been going on for quite a while; the high court has, on the other hand, revealed that there is some sort of recourse, for landlords, should tenants breach the lease.

The case between Upward Spiral vs Jacobs and Another got Clark’s attention. This came after Upward Spiral decided to terminate the Jacobs’ lease because they had damaged the bathroom of another tenant who was legally admitted by the landlord to live there. Moreover, Jacobs was told to fix the bathroom, but he had neither remorse nor intention to repair it.

On his defence, Jacob asserted that the bathroom was already dysfunctional way before its impairment. Upward Spiral was requested to renovate or remove it, but they just shelved the matter.

After receiving a judgement with costs; they applied for a rescinding order, but the magistrate declined it. They then decided to go appeal to the high court, but that too was unsuccessful. The final decision was that they had failed to treat the bathroom matter with urgency and that they didn’t take the lease documentation into consideration.

Clark said this case will definitely encourage the landlords to reinforce the sanctity of contracts.

image courtesy of:  schoemanlaw.co.za

South Africa is recognised as one of the most important developing countries in the world. Not only because SA is part of BRICS, but because the country also incorporates state of the art properties.

Countries that form BRICS are expected to accumulate twice as much economic growth in 15 years to come. This has certainly created foreign interest in South African property. The World Bank recently announced that emerging markets are attracting investors from developed countries and that they are playing a massive role in reshaping the global economy.

Another positive side is that the African continent has gone from being the poorest to being the second (after Asia) fastest growing region in the world. This has opened numerous doors for South Africa not only in the foreign investors’ eyes, but has also established a gateway to the African market which cemented ties with other African countries.

Even though foreign buying is at 4 – 5% on home buying, it is expected to increase as the new world economic order becomes reshaped. On the other hand, the rand was previously weakened by the likes of the euro and the pound, but now due to the exciting and lucrative business and trade opportunities in SA; the rand keeps on finding its feet.

Most foreign investors are, however, looking to invest in major locations such as international airports: Cape Town, Durban, Johannesburg, East London, Port Elizabeth, Polokwane, Nelspruit and Richards Bay.

image courtesy of: bleacherreport.com

• Will it be a holiday house or rental property?

A number of people buy property on the coast and only use it once or twice a year during holidays. You can consider using the house for rental purposes when you or your family isn’t using it.

• Can the property be used as a tourist accommodation?

One of the best investment decisions is to buy a house by the beach and only use it as a tourist accommodation. It offers great investment returns as it’s only used for tourists.

• Area

When considering buying coastal property it’s wise to do extensive research. Are things such as the beach, shopping malls, parks and schools easily accessible? All these factors need to be considered before buying.

• Crime Rate

This plays a huge role when it comes to the value of the house. If it’s situated in an area that has a high crime rate then you might want to reconsider, do your research.

With any investment decision research needs to be done in order to guarantee an investment. South Africa has a lot to offer when it comes to buying coastal property.

It’s your responsibility, however, to do some in-depth research with regard to finding the real estate agent that is most suited to the job, considering they will be the middle-man between you and the seller of the property you are interested in. The agent needs to be qualified to handle the property purchasing process and also very well-versed in putting their clients at ease and assisting them with their investment.

Real estate agents have their finger on the pulse in terms of what is available to purchase on the property market and where the best deals are available; whether it’s a buyers’ or sellers’ market and where you can capitalise on making a great investment in the applicable price range. That’s not to say that you should sit back and allow the agent to make decisions for you – it will still be beneficial for you to do your own research and check the available listings in the classifieds and online. Here you will get a good idea of the property you are looking for, then let the estate agent make contact with the relevant sellers and arrange for show days and house viewing opportunities.

Don’t be afraid to ask the real estate agent to go to work on your behalf – they are earning a commission on the properties they sell after all.

Renting and your budget
The amount of money you set aside for rent every month is very likely to be your highest monthly expense, so ensure that the place you rent is within your budget. Plan your finances properly so that you can honour your lease agreement and pay your rent on time.

Get help from the experts
To avoid making unnecessary mistakes, get the help of an estate agent who knows the ropes of renting and can help you to find a place that’s within your budget and has the facilities you’re looking for in an area that’s convenient for you.

View before signing
Make an effort to see the property and get a feel for it. Don’t rely on photo’s, which can distort your perception of its size. While you’re at it, check out the neighbourhood and see if it suits you.

Compile a snag list
Report any cracks, scrapes and imperfections that need to be fixed before you move in. A snag list is a standard feature of a lease agreement.

Good luck with finding your first perfect place!

Here are tips to keep in mind when buying a house:
Apply for a home loan
Applying for a home loan before looking for a house is a good idea. You will find out if you qualify for a loan and for what amount. As soon as you know what you can afford, it narrows down the house hunting process to within your financial bracket.

Get an estate agent
Estate agents are the professionals when it comes to property, so enlist the help of an agent to ensure you make the right decisions with regard to buying a house.

Location, location, location
Keep your family’s needs in mind when looking for a house to buy. Location is the most important aspect to buying property – if you have a family, your house will need to be near the right school, sports fields and shops, and the right distance from your work.

Keep a cool head when buying property and make sure you have a failsafe plan with the right experts on board. With the long-term nature of buying a house, there’s no room for regret.

Cape Town is famous for its ideal location between the mountain and the ocean, and its unique weather patterns and awe-inspiring coastlines. Areas like Clifton, Bantry Bay and Chapman’s Peak are ranked high as some of the most expensive suburbs. The V&A Waterfront is South Africa’s most expensive residential resort, where land is valued at between R2.5 million and R11 million.

The second most expensive city for property is Johannesburg, where there are 10 suburbs with an average property sale price of more than R4 million. From top-down, the most expensive areas include Sandhurst, Chiselhurston, Dunkeld West, Bryanston and Sandown. Recently, a property in Bryanston was listed for sale at R45 million, which is a great testament to the value of properties in Johannesburg.

KwaZulu-Natal is known for its warm, Indian Ocean waves – the eastern coastline of South Africa has a number of draw cards for people willing to spend a bit of money on property. Ballito Bay and Gillits are two examples of many sought-after coastal spots where holiday makers wish they could spend all year round.

It’s worthwhile to invest in a high value property in your favourite place in our beautiful country.