Cape Town house prices 'cool off' - expect more of the same
Most areas in Cape Town are experiencing slowing house price growth, with expensive suburbs “hardest hit” and the expectation that this downward trend will continue.
These are findings of the FNB 1Q19 City of Cape Town Sub-Regional House Price Indices, which showed a further softening in house price growth to 1.2% year-on-year in the first quarter, down from 3.2% in the last quarter of 2018.
This was the slowest growth since the global financial crisis at the end of 2009 and the second consecutive quarter of real house price decline i.e. below inflation growth, says FNB Economist Siphamandla Mkhwanazi.
Co-working office and boardroom space for attorneys on the move
There is a global trend that has become increasingly popular, that of the “hot desk” or co-working space within large office blocks.
Following this trend, a co-working initiative by the Attorney Realtor Hub has already garnered a large take-up and support in the legal fraternity.
“The Attorney Realtor HUB was an obvious national platform to use,” says Meyer de Waal of MDW INC in Cape Town, one of the founding members of the Attorney Realtor HUB. “Already 28 firms of attorneys who form part of the Attorney Realtor Hub are participating in this initiative.”
Pros and cons: Property stocks vs buy-to-let investments
When people want to invest in real estate they usually secure a home loan to buy a property - either residential or commercial. But there are other more efficient and less costly ways to invest in the property sector.
Marc Edwards, CEO of Tower Property Fund, says there are many benefits to direct real estate investment, and it is easy to see why buy-to-let is an attractive investment option. However, it is also easy to overlook the considerable costs you can incur, and the drain this type of investment has on your time. Downsides include a lack of diversification, lower liquidity, vacancies leading to loss of rental income, property taxes, insurance and maintenance costs.
This is part of the reason why Real Estate Investment Trusts (REITs) have become so popular. REITs offer many of the same benefits of direct property investment, but without the problems.
Fixtures and fittings: Buyers, don't assume 'what you see' is included
When buyers put in an offer to purchase after viewing a property, they often make the mistake of not checking in detail what it is they’re actually signing for. Buyers will have seen the property, possibly walked through it a few times, but it would most likely have been fully furnished with the seller’s belongings.
It could be that some features of the home might not be left behind or are not permanent fittings or fixtures in the house, so the buyer must ask if there are any items that will be removed or mention items of interest before signing the offer to purchase,” says sales manager of SAProperty.com, Cornel Haskins.
The definition of a fixture is any physical item that is permanently attached (fixed) to real property. He says while there is no legal definition of what constitutes a fitting, it is generally considered that ‘fittings’ are items that are freestanding or are easily removed.