BUYING IN THE WESTERN CAPE

With an ever increasing footprint in the Western Cape property market, we came across this article by Private Property that is packed full of vital stats for potential property buyers in the Western Cape - and in particular - Noordhoek!

For some, your work may require you to semigrate, for others you've contracted the coastal fever and can't wait to sink your feet into some beach sand, whilst others may simply be looking for a good investment.

According to FNB's Regional Migration Trends report, the Western Cape continues to outperform other provinces in terms of its ability to attract repeat home buyers from other provinces and retain its own.

This north-facing Lake Michelle home with three bedrooms, three bathrooms and two lounges, boasting panoramic views of Chapman’s Peak, was sold for R3.2 million.

According to the report, the big four provinces (Gauteng, Western Cape, KwaZulu-Natal and Eastern Cape) have the lowest percentage of repeat buyers buying in other provinces, with the Western Cape having the lowest percentage of repeat buyers buying elsewhere, recording a total of 12.9% of its total repeat buyers.

Writing in the report, John Loos, FNB household and property sector economist, and Kutlwano Maphapho, FNB statistical analyst, explain that the 2012 level of repeat buyer outflows correlates broadly inversely to relative provincial economic performances over the prior five years (2007-2011), with the major provinces showing both the higher average economic growth rates along with the lower repeat buyer outflow rates.

Keep your eyes open...

Earlier this week we published an article aimed at equipping you to make sound and wise decisions when signing an Offer to Purchase.  With such an important contract in hand, you need to ensure that your signature binds you to an agreement that is reasonable and protects both you and the other party.

There are many things to take into account and we encourage you to take your time to read the contract in its entirety before signing it.

To help you know what to look out for – here are some more prudent points:

1. Faults, renovations and defects:  the days of buying ‘voetstoets’ – what you see is what you get – are now in the past (Since the effect of the Consumer Protection Act, April 2011).  If you are buying through an agent or developer, the seller needs to state all and any faults, renovations and defects of the property.  If they agree to fix these, then that needs to be stated in the Offer to Purchase as well as the date by which the jobs should be completed.  Without a deadline, if they are showing intent to fix the problems, you will have a hard time tying them down to a completion date.  If you are able to, taking photographs of the areas in question will help you ascertain if they have been sorted out properly.

Going in with eyes wide open

Contracts can be daunting – especially if you don’t deal with them in your normal course of work.  Signing an Offer to Purchase is a complex agreement that has many facets to protect both the buyer and the seller.  At Rivigan Property Group it’s our job to know these contracts and know how to communicate them to our clients in a way that is clear, honest - and in their best interests.  Many people run into exciting purchases with their eyes wide shut – hoping for the best.  Unfortunately, if you’re not going to read and understand the contract, you may encounter severe problems later on.
 
Before even getting to the point of signing an Offer to Purchase, we strongly advise that your finances and pre-approved bond details are organised and ready.  It is essential that your financial position be as stable as possible, should it change after signing the contract and if it was signed in good faith, it will not be a reasonable and legal consideration to renege on the contract.

Once you get to the point where you have checked out the property, or the developer, and are happy to sign an Offer to Purchase you are well on your way to a smooth and beneficial transaction.  A signed offer constitutes a Deed of Sale; it sets the precedent for all further legalities around the ownership of the property so it’s important to know all the details.

Here are the first five considerations to take note of in your Offer to Purchase:

Semigration - what's the deal?

 Whilst the term ‘semigration’ may be relatively new, the process is centuries old.  It refers to the translocation of people from one region to another region within the same country.  Emigration is one of the buzzwords in most social circles in our country as we struggle to regain ground within the context of economic and political turbulence.

However, for those who have chosen to stay in this beautiful country and tap into the potential that it offers, semigration is a very likely possibility. 

Reasons for relocation may include factors of security and crime, traffic and infrastructure or family and friends, but according to a study done by FNB the primary driver for semigration is work and financial opportunities. 

"Approximately 7% of all sellers sell in order to relocate within South Africa."

This means that most semigration is in the direction of the City of Gold – Johannesburg, the number one in business opportunities.  Despite the allure of the ocean, mountains and lifestyle, Cape Town falls far behind as number two, with KZN following closely behind in third place.

With this reality, you may very well find yourself needing to move to an area that you’ve never been to and have no idea what questions to ask and what to consider.  The Rivigan Property Group is the expert in the Krugersdorp/Ruimsig area and is perfectly situated to help you in finding a home to purchase or rent if you are planning to relocate.

We have a strict code of excellence that we adhere to in every deal and are focused on achieving the best outcome for our clients.  Contact us today for more information.