Press Releases December 2004

NEWS FROM NATIONLINK 21 December 2004

News coverage of the devastating loss of life and property that can result from fires should bring home to all householders the need to take preventative measures.

“Fire is an ever-present threat even in a modern house fully equipped with smoke detectors,” says Dr Piet Botha, chairman of the Nationlink estate agency group. “The current drought conditions in many parts of the country also raise the likelihood of veld and forest fires that can easily spark off home fires”.

Recent fire statistics from the US, however, show an alarming degree of complacency among homeowners, “and I'm sure figures in this country would show a similar neglect of basic precautions," he says.

For example, the US figures show that while 40 percent of fire-hit houses had no smoke alarm, most of those with detectors derived no benefit, as 56 percent of the systems had no battery, and 17 percent had dead batteries.

“Smoke detectors are comparatively cheap, and are becoming more commonplace in SA as many security companies now offer them with their burglar alarm systems. But they are no use without regular cleaning, and a monthly check to see that they are activated,” says Botha.

“Homeowners should also note that the insurance coverage for their homes and the contents in the event of fire may be invalidated unless they have taken other steps to eliminate hazards and limit fire damage. Gas bottles should never be kept indoors, for example, and proper lightning protection must be installed if you have a thatch roof.”

Natfiresafe 2 last Electrical compliance certificates now required when a house or flat is sold are a big step forward in fire prevention, but a regular check of the state of the wiring should still be carried out in older homes. The leads for all electrical appliances should also be checked frequently for damage, and care should be taken to ensure that wall plugs are not overloaded. “And while electrical faults are a major cause of home fires in SA, they are not the only danger,” notes Botha. Open flames from candles, often used today not only to provide light but to deter mosquitoes and other bugs, are a constant danger.

Those who have a fireplace in their living room should also ensure that live coals cannot fall out and start a fire, and should regularly check flues and chimneys for cracks or other damage.

Braai fires can also easily get out of hand, especially if lit close to trees or a thatch lapa, so enthusiasts should make sure they always have the garden hose close at hand, and that the fire is properly extinguished before they go to bed.

“And,” says Botha, “just in case the worst happens while you are cooking indoors, you should keep a working fire extinguisher in your kitchen. It could save your house - or even your life."

ISSUED BY NATIONLINK FOR MORE INFORMATION CALL SONJA TOPPER
AT THE NATIONLINK SERVICE CENTRE (021) 975-9316

NEWS FROM NATIONLINK 09 December 2004

The Reserve Bank decision this week to leave interest rates unchanged gives homeowners a great opportunity to reduce their home loan balances – and the risk of being caught in property “bubble”.

“Not that we think there will be a bubble,” says Dr Piet Botha, chairman of the Nationlink estate agency group. “What concerns us more is that while doom-sayers continue to predict that the property boom of the past few years will “inevitably” be followed by a bust in which home values drop suddenly and drastically, very few bother to suggest any counter-measures homeowners can take.

“And one very obvious one is to make use of this period of relatively low interest rates to increase their home loan instalments and get the debt paid off faster. This would prevent many people from ending up in a negative equity situation should a bubble scenario ever materialise.

“In fact, we believe such prudence is in order even if you don’t believe a market crash is imminent, because it is likely to deliver a substantial saving on the total cost of the property.”

Turning to the “bubble” predictions, Botha says that while short-term speculation is becoming highly risky, much of the negative sentiment currently being bandied about is not only inaccurate, but pointless. “It serves only to make people fearful, without giving them any direction.”

Talk of a property bubble ignores the fact that property prices in this country lagged true value for a long period, and most experts who have lived through the property cycles of the past 20 years or more believe that the possibility of a sudden and severe downward correction in the current price pattern is highly unlikely, he says.

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"The economy as a whole is also more buoyant than it has been for years and in any event, the steady emergence of thousands, if not millions, of homebuyers who were previously excluded from ownership is likely to underpin our residential market for years to come.

“Indeed, one is now inclined to question the motives of those who insist on casting these considerations aside and holding doggedly to the view that a price crash is coming, especially when they fail to suggest any precaution or remedy for homebuyers and owners that might get caught in such a crash.”

Botha himself holds with the classic advice to buyers caught in such a bind, which is to hang on to the property and wait for the cycle to turn up again. "A high level of speculative activity in recent times has blurred market perceptions, but this is not day trading. Property buyers should be looking to measure the success of their investments over years rather than weeks - and of course taking proper care not to overextend themselves financially in the first place.”

ISSUED BY NATIONLINK FOR MORE INFORMATION CALL SONJA TOPPER
AT THE NATIONLINK SERVICE CENTRE (021) 975-9316

NEWS FROM NATIONLINK 8 December 2004

With off-beach apartments now priced at R800 000 and more, Amanzimtoti on the KwaZulu-Natal south coast has surfed itself out of the reach of the traditional fish 'n chip holiday homeowner and into the champagne-and-caviar category in just over a year.

But, says Eric Morkot of leading local agency Nationlink, even that entry-level price is likely to be short-lived as agents report “almost bare stock cupboards” even though the peak holiday-home buying season has just started.

Indeed his agency, which dominates the sectional title market in the town, currently has just one beachfront apartment on the books for resale - a 120sqm unit with a price tag of R920 000.

”Those looking for new units will have somewhat more choice, but at a premium price. Starting prices for the units in the two new blocks of beachfront apartments we will be marketing over the holidays range from R1,63-million to R1,8-million.”

And yet, he says, there is no shortage of interest. His agency has received its highest ever number of advance enquiries in the past month, and there has been a general readiness to meet R1-million asking prices, especially among Gauteng buyers. ”This is not really surprising though, as 'Toti has now become the lowest-priced coastal market entry point to Durban's commuter belt, and the main spillover point from the much higher-priced north coast.” Prices, which have risen by between 30 and 60 percent this year depending on area, have been pumped by the high number of “permanents” moving into ‘Toti and buying up beachfront apartments. This has slashed the percentage of beachfront units dedicated to holiday-home use from the traditional 70 percent to less than 50 percent – or under 2000 units.

Morkot’s advice to would-be buyers thwarted by the price rises or lack of beachfront stock this holidays is to purchase either on Toti's ridge, where walk-to-the-beach simplexes, some with sea-views, are available at R500 000 to R600 000, or at Illovo Beach, which has “bright property prospects”. Meanwhile, he notes, Toti's coastal location and comparatively good property values are not the only positives for the future of the town that straddles the N2 freeway and the railway line. Set to start in the opening month of 2005 is the refurbishment of the old Umbogintwini Village, which forms part of a packaged sale including the ‘Twini Golf course by AECI to Keystone Investments.

The R60-million project includes refurbishment of the village's 130 existing homes and the addition of a further 180 homes during the course of next year. This will be followed by a second phase with the construction of a retirement village around the upgraded ‘Twini Club House. A third phase involves the construction of a 90 000sqm retail centre and a further residential node in the form of six-storey apartment blocks on the old golf course.

This development, says Morkot, will have the same positive effect on the area as the development of the Gateway precinct has had on Umhlanga.

ISSUED BY NATIONLINK FOR MORE INFORMATION CALL ERIC MORKOT
AT NATIONLINK AMANZIMTOTI (031) 904-1235

NEWS FROM NATIONLINK 03 December 2004

A home defect that only becomes apparent after an offer to purchase has been made will obviously come as a major disappointment to the buyer, who may have spent months looking for his “ideal” home. But it may not necessitate financial hardship, or cancellation of the deal.

“Even at this late stage, all is not necessarily lost,” says Dr Piet Botha, chairman of the Nationlink estate agency group.

"Bearing in mind that the sellers are probably just as anxious as the buyers to see the home transferred without any hitches, they may still be prepared to negotiate an adjustment of the price, or perhaps to pay for the newly-discovered defect to be repaired.

“Most will realise that if the current buyers pull out of the deal, they will have to disclose the now-known defect to any future buyers, and will thus probably achieve a lower sale price anyway.

“And most will definitely not relish the prospect of the legal action the buyers could instigate if they believe the defect was deliberately concealed from them in order to secure a higher offer.”

Botha warns, though, that the scope of the problem may be bigger than initially thought, and that a need for additional work may only become apparent once repairs have begun. “Thus the buyer who agrees to go ahead with the purchase at a lower price will have to be satisfied that the saving will cover the cost of all the work that needs to be done."

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Indeed, the key to a really satisfactory outcome for both buyers and sellers is to seek independent professional advice on the extent of the problem, the repairs necessary and the probable cost of those repairs. "Then you can negotiate who will pay, and how much."

It is possible, he says, that a seller and buyer will agree to split the cost of the work – a solution that may suit buyers who have already planned some additions or improvements that can be carried out at the same time as the repair work.

ISSUED BY NATIONLINK FOR MORE INFORMATION CALL SONJA TOPPER
AT THE NATIONLINK SERVICE CENTRE (021) 975-9316

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