Having looked at the last 500 Sectional Title Property Registrations from March 2010 to Jan 2012 (+/- 23 per month) some interesting facts about sales prices and price per square metre revealed itself.

The data shows that smaller units, below 100sqm fetch a better price per square metre (R 8163) than bigger units over 100sqm which only fetched R 5969 per square metre.  As an example, a 70sqm unit will sell for +/- R 560 000, a 120sqm unit for +/- R 770 000 and a 180sqm unit for +/- R 900 000 making the bigger units worth less per square metre. The bigger units are normally the ones with double garages and bigger rooms but yet they sell for less. The 500 units that registered during this time sold for an average of R 7276 per square metre with the smallest being 43sqm and the biggest being 198sqm.

From the 500 transactions, 82% (408) got a Bond from one of the four major banks, Investec or SA Homeloans while 15% bought without a Bond. The other 3% got finance in other ways not specified in the reports. The average sales price of all the properties came to R 660 000 with the lowest being R 220 000 and the highest being R 1 100 000. The average sale for Bonded properties was R 615 000 and for Cash sales, R 630 000.

The 408 bonds came to a total of R 250 941 915 against a total purchase price of R 272 276 997, which is 92.16% financed. Although all the banks have different financing criteria most sellers need to prepare for a deposit of +/- 5% to 10%.

The major financial institutions financed 82% of the registered properties as follows:

Interesting to see SA Homeloans with 13% of the cut and Standard Bank granting the most loans (34%) for the specific period.

Other interesting stats from the sale of these properties came from looking at the three areas and the number of sales per area. Honeydew Manor had 6 (124) registrations, Honeydew Ridge had 137 (116) and Wilgeheuwel with 357 (89) registrations. The number in brackets is the average size of the units for that area. While I do think that Wilgeheuwel is the biggest area with the most amount of units, it also has the most amount of small units, bringing the average size down to 89sqm, your typical 2 Bedroom 1 Bathroom unit with a TV lounge and 1 Garage …. +/-. Note to self: Smaller units sell better than bigger units!

Average size for the 500 units came to 97sqm, average price R 660 000 as previously mentioned, which gives you R 6800 per square metre.

Looking at the average price for each area, Honeydew Manor comes in at R 792 000, Honeydew Ridge at R 728 000 and Wilgeheuwel at R 630 000.

Conclusion:

Well, as an agent this helps me to price my listings correctly according to size and area. It also helps me to know the areas better and what buyers are buying. As a Seller, it is just as important to know what your unit is really worth and what you can expect as over-priced properties are not selling and those that are priced right do! As a Buyer, looking at these stats will assist you in finding the value for money, not a steal, although those are out there. Knowing that you are buying at the right price.

Watch this space for more area reports and statistics such as this ………. enjoy, and remember to subscribe to my blog with your email address on my home page.

For all my properties, visit my profile on the RealPro website.

There has been no change to this since it came down from 9.5% in November 2010 and many economists predict that it will stay this way for the remainder of this year. There are many economic factors that play a role in the decision to raise or drop the interest rate but it is no secret that household debt-to-income ratios hasn’t changed a lot during the last couple of years and has stayed very high meaning that most households are under pressure to service all their debt with the income they receive.

Currently, a R 800 000 bond over 20 years at prime (9%) will cost you R 7200 per month and R 6436 over 30 years. With many home owners under financial pressure to sell this IS a good time to buy property. If you take into account that the last interest rate hike was in June 2008 when it went up to 15.5% and before that, the highest point was in Sept 2002 when it went up to 17%. The repayments on the same house over 20 years would have been R 10 831 and R 11 735 respectively ….. eish!

We are currently seeing a huge upswing in activity in Krugersdorp and Roodepoort where there is a big demand for property around and below the R 1 300 000 mark. Houses that are priced right, sell!!

The last 4 to 5 years have not been kind to speculators looking to buy low and sell high unless you bought a bargain, way under market value. Most buyers from 2008 onwards would be lucky to make a profit if they were to sell now unless they have made significant changes to the property, increasing the value but not over capitalising for the area and type of property you have.

With the interest rate being so low, banks are offering prime-plus rates to successful applicants and having a deposit will help a lot to bring your rate down ……. Happy buying!!!

A: Sellers are responsible to settle all outstanding council, municipal and other associated accounts such as levies and special levies prior to or during the registration process. An undertaking can also be given by the Attorney firm doing the transfer, to settle such accounts from the proceeds of the sale upon registration.

As part of the registration process, the Conveyancer needs to get a council and body corporate or home owners association clearance certificate before the registration can proceed. It is important to make sure that it states clearly in the contract (Offer to Purchase) that the buyer is not liable for any of these accounts up to the date of transfer into the new owners name.

Spacious, 4 Bedroom family house with 3 bathrooms, lounge, dining room, big kitchen with laundry area, 2 studies ….. Large secure stand with heated pool, extra big double garage and a 4 x 6m store room.

This property’s is in a good condition, close to schools and other amenities and can be a great buy for a young couple / family stepping up into the residential property arena.

To view more pictures of this property, go to www.realpro4u.co.za ref 475615

With almost 38 years of experience in this thing we call life I know that I can always try to do something better or be more efficient than what I have in the past. This is a great time to look for better ways to do what I do, better. Being in the Real Estate business for the last 5 years and having to sell and market properties for my clients, it doesn’t take a Rocket Scientist to figure out that if I can sell more properties, more often, I will make more money and more of my clients will be happy. This sounds easier than it is as there are a couple of hurdles that need to be overcome.

A couple that comes to mind, in no specific order are:

1. List at the right price
2. Build up a database of buyers / investors
3. Regular communication to clients / buyers / sellers
4. Better and more efficient use of technology, websites, blogs and social networking platforms ….. and and and

…… Not that any of this is new but it’s good to have a constant reminder. More happy clients also means more “word of mouth” marketing that your clients do on your behalf ….. still one of the best forms of marketing.

So I guess after all of this, my New Years Resolution for my business is not just to work “smarter” in stead of “harder” but to have more of my clients do my marketing for me ……

From me, I would like to wish all my clients, buyers, sellers, tenants, colleagues and fellow agents and great festive season and a fantastic 2012. Travel safe wherever you go and come back refreshed so you can achieve all the goals and milestones for the year, personal and professional ones!

Enjoy!

I found a site where these codes can be generated and then downloaded to be used on just about anything from business cards to caps, t-shirts and also as print advertising in newspapers, magazines, brochures and much more.

Check out the following site for generating your own codes: http://www.goqr.me

Codes can be scanned from you smart phone using a scanning application for QR Codes. On my Blackberry I use an application called “BeeTagg” ….. Works well, but check your phones applications for this ……. Enjoy!

Very spacious 3 bedroom 2 bathroom cluster. Lounge and dining room + double lockup garage with low levy and gas stove + solar geezer.

Contact me to view on 072 264 7806 or email, marnus@realpro4u.co.za or visit the property on the RealPro website or just click here to view the property.

The market and business as we knew it was changing and then the new National Credit Act came into play. There were no more 108% loans where the banks financed your loan, your deposit, your costs and your new lounge & dining room suit. Many prospective buyers become tenants and the words “qualified buyer” took on a whole new meaning. The “boom” was no more and the property industry became a touch place to make a living. Many agents and agencies have gone “walkabout” to find greener pastures and the industry became a lot more regulated. We have also been through a recession and many economists are predicting more of the same to come.

So, what should we do now? Well, I might not have 30 years experience in the property business but I have enough experience in life to know that our situation is not unique and that many before me and even more after me will be able to make a success in tough times. Looking at 2012 and remembering my brief 5 years of experience, marketing and selling houses on the Westrand, I am very positive and looking forward to a great 2012. Will it be tough? Yes! Will buyers struggle to get bonds? Yes! Will there be less stock? Probably! But the fact is that there will always be people who need to sell their properties and there will always be those who see opportunity in buying property for themselves or for investment purposes. Economists all over agree that property in SA is still a good long term investment. There are also less qualified agents to assist buyers and sellers so those that make the effort will get the listings and take the offers.

My focus will be on learning, finding more effective ways of marketing to buyers, sellers and agents, building business networks, delivering great service and being more than just an agent. We have so much to be thankful for in this country where owning property is a great privilege for most. Helping someone find a new home or selling there’s so that they may start a new chapter in their lives is what I love doing …….. Thank you for taking the time to read my blog, may you have a fantastic Festive Season filled with love, warmth and happiness and may 2012 be THE year, for you, your family, loved ones as well as your business.

I am building up a directory of services offered by local business in the local community on a Property Website that also only carries properties listed in that area, Krugersdorp and Roodepoort. The idea is for home buyers and sellers to use the directory for any service they might need in the area such as schools, medical centres, emergency numbers, council contact details, electricians, plumbers etc. I also want to use this directory as a referral base for my own clients who have just bought ion the area.

It is still very new but it will grow over time ….. go have a look. To advertise your business here, please contact me or just send a mail to mcsmaximark@vodmail.co.za

KDP Real Estate

RDP Real Estate