Forget the Kitchen Draw — Its time to re-evaluate the way you live.

We spend decades being organised: managing our households, families, and lives. Starting in our twenties, we have acquired : property, people, experiences, marriage, children and other relationships.

We reach an age when we step back and think about where we are, and where we want to be. There are so many competing realities: kids growing up and moving out, parents aging and possibly moving in, changes in jobs, retiring, downsizing.

We should remember the advice of John Keating (Robin Williams) in Dead Poets Society and seize the moment. Free ourselves from the clutter we have accumulated, or we may get stuck in the mire.

How can we go about doing this?

Acknowledge that change is happening.
Think about how you would like to manage the change so that you can define how things will be in the future.
Identify the clutter in your life. Clutter is anything that is obsolete, drains your energy or that you feel is time-consuming.

•Objects: It could be paperwork in boxes that you haven’t opened for years, jewelry you no longer wear, the old business cards on your desk, or the stacks of magazines and books that you will never look at again.

•Obligations: Obsolete roles and responsibilities like boards, committees and clubs. Shedding these can be hard because they involve other people.

•Habits: If you are a perfectionist, a procrastinator or a workaholic, you are doing yourself a disservice. These habits waste time and energy and create stress. We don’t need to be defined by what we do. Instead, we should focus more on who we are. It’s enough to be engaging, interesting and involved.

•People: People can be just as draining as piles of newspapers and magazines. If there’s someone in your life who drags you down, maybe it’s time to reconsider the relationship. It’s not easy to completely remove those people from your life, perhaps you can think about redefining the relationship. You want to be kind, but you must also be honest with yourself about which relationships nourish you, and which deplete you.

Let go of what you identified as holding you back. Change can be hard work – if you reduce the things that hold you back, you can travel further and faster with the same effort.

Keeping moving this is not a once off event. Having started the journey keep the focus and direction clear and commit to staying on the journey.

Good luck

October 9, 2017March 30, 2020

Rondebosch / Claremont Property Market update Oct 2017

Price Pressure

Nationally property prices have been under pressure with some suburbs showing declining real house price over the past few months.

In Cape Town; the remarkable strength of the housing market over the past few years has started to show signs of slight weakening.

The average time a home is on the market before a sale has increased over the past 6 months. It now takes close to 20 weeks on average for a home to sell in Cape Town. A market is considered to be in equilibrium when homes sell in +/- 12 weeks.

With homes staying on the market longer there is a risk of a real house price correction. There is minimal fear of a local (Cape Town) bubble and the risk of significant price declines is considered to be very low.

However, price increases in the Cape Town market are expected to gradually return to the longterm trend line for house price inflation. The spectacular increases seen over the past few years are unlikely to continue.

Have you been holding onto you home, enjoying the 10% +annual increase in value over the past few years? Have you also been thinking about a change? With holding costs (rates, insurance and maintenance) increasing all the time, Now may be the time to begin planning for that change.

In the Claremont and Rondebosch market we started have started to see pressure being transferred to sellers. Over the winter period, average days on the market began getting longer, and in some cases homes were removed from the market not having sold.

Strategies for serious sellers in the current market;

Prepare your home carefully for sale – get ready to show its best face.
Ensure that you price competitively relative to similar homes on offer.
Be ready to negotiate.

Every home is unique and offers different benefits to the market. Its always a good idea to consult a professional agent before putting your home on the market.

September 21, 2017March 30, 2020

Re-think downsizing

Your family home holds precious memories, but as your children grow up and move on to establish their own lives both near and far the question; what next? Inevitably comes up.

Downsizing can evoked negative feelings, but one can think of the change differently.

In her book Composing A Life, Mary Catherine Bateson reflects on how 5 of her friends went about remolding their lives in their 50’s, 60’s and 70’s. She likens the process to (amongst other things) the weaving of a tapestry where existing threads are woven together with new, creating new possibilities.

We should view the empty nester / downsizing phase of our lives in a similar way. The weaving together of a new way of living using threads and memories from the old.

Whatever you choose to call it, you are in the stage of life when, possibly for the first time, you can choose where to live based on your own dreams and desires and not because its close to school or has 5 bedrooms.

Your home will be an important part of the new tapestry you will be weaving.

If you need assistance with selling or buying a home please get in touch

June 27, 2017September 11, 2020

Estate agencies are not passing on efficiencies from improved technology.

Metamorphosis of the estate agency.

This article by Vivian Warby appeared in the Weekend Argus 24 June 2017, highlights changes in the real estate market and how different agencies are reacting.

In summary;

Globally, online portals dominate the real estate market particularly in relation to buyers. This is certainly true in South Africa where Property24 and Private Property are the first port of call for interested buyers. New technology enables agencies to work smarter and more efficiently.

We have seen the emergence of start up agencies seeking to leverage these changes – they offer sellers low or zero commission services – but with reduced or zero agent involvement.

Most buyer and sellers, prefer to deal through an experienced real estate agent. This is because no real estate transaction is the same. Each deal has its own peculiarities which most home owners are unlikely to have seen before. Buyers and sellers prefer to deal with a credible, professional expert able to give prudent and sensible advice.

The daily activities of an estate agent have changed considerably over the years as a result of the technological changes in the industry. There is no doubt that a key element remains, the services of a person with the requisite knowledge and experience to facilitate the closing of deal between 2 parties.

Efficiencies gained by agents have not be passed on to clients.

The Bestnet.Property approach is to passes on efficiencies to our clients, without cutting back services.

We provide full service to clients at very competitive rates.

March 30, 2017April 1, 2020

Semigration* and Topography Drive Cape Town Property Prices

Western Cape is the only province showing significant house price growth in 2016/17.

The real growth in Cape Town house prices is largely attributable to above average performance in 6 markets – Atlantic Seaboard, City Bowl, Near Eastern Suburbs, Southern suburbs and South Peninsula.

According to an article on Moneyweb.co.za this strong price performance is largely due to; the continuing migration of relatively wealthy South Africans to Cape Town and the Capetonian desire to avoid long commuting times which drives people to invest in homes close to their work place.

*Semigration refers to the tendency of people to migrate within SA rather than overseas.

May 8, 2016April 1, 2020

Capital Gains Tax and Non Resident Sellers

This post reflects my basic research on the issue.

Please note This is NOT tax or financial advice please consult you advisors if necessary.

Extracts from the SARS and Private Property websites which i believe are pertinent.

Foreigners are liable for the payment of CGT on the disposal of any immovable property.

There is a 5% withholding tax levied unless you obtain a directive from SARS before transfer. The directive will allow a lesser amount to be deducted depending on the details of the sale – so it would make sense to obtain advice regarding the directive before transfer.

Where properties are owned by individuals or special trusts, 33 percent of the capital gain must be included in the taxable income

A capital gain is calculated by deducting the cost of a property from the proceeds of the disposal of the property. The following are included in the cost:

The cost of acquiring a property, including the purchase price, transfer cost, transfer duty, VAT and professional fees.

The costs of improvements, alterations, renovations and so forth. This will only be accepted if you have receipts or invoices.

The cost of disposing of the property, including the agent’s commission, advertising costs, valuation costs (including valuing the property for CGT purposes) and professional fees.

Expenditure on repairs, maintenance, insurance and rates and taxes is not included in base costs.

It is essential to keep accurate records of these costs. If records are not kept, no deduction will be allowed from the proceeds to determine the capital gain. Records must be kept for four years from the date of submission of the income tax return for the year in which the capital gain or loss is reflected.

For more information see also

SARS website

Private property website

February 2, 2016April 1, 2020

Property Market – Note

Recent press reports paint a picture of falling property prices across the country in 2016/2017.

Slowdown in SA property sales and Prices

While this may be true for the average property in South Africa, those lucky enough to own property in Rondebosch , Claremont and the surrounding areas should not be overly concerned.

There is still considerable interest from people all over Cape Town and South Africa in moving into Claremont and Rondebosch and the surrounding suburbs. The proven draw cards remain proximity to excellent educational facilities, business centres and easy connection to the rest of the city. Not to mention the local shops, restaurant and sporting facilities.

The Reverse Trek is real. Families are relocating to Cape Town to enjoy the excellent lifestyle and educational facilities. The reasons people give for relocating play directly to the strengths of the Southern Suburbs property market.

There are challenges in organising finance and buyers have become quite selective. The reduced exuberance of the buyers side of the market is compensated for by the fact that there are fewer homes on the market. There is still an imbalance in the local market which favours sellers.

It is my expectation that prices will remain strong and are very unlikely to fall despite the economic uncertainty. Sellers will have to be a little more patient and have more grounded expectations.

February 2, 2016April 1, 2020

Managing late payment on a lease

The logical first step to obtain redress after a tenant defaults on its rental obligations is to contact them within 24 hours and council them as to reasons for the default. In any event a letter recording the default and the discussion regarding the rectification of the late payment should be sent within 48 hours.

Depending on the outcome of the initial discussion the default should be managed on a daily basis until resolved. If payment has not been made within 96 hours of the due date the tenant should be notifed of the landlords intention to invoke the breach clause in the agreement. They must be reminded that in the event that the breach is not resolved it could result in the tenant being evicted. Once the late payment extends beyond 120 hours the mater should be handed over to an attourneys to begin recovery proceedings and to finalise the notice of breach as soon as possible. The attourneys will in all likelihood send the tenant a letter of demand requesting the immediate payment of all rental owed. In some situations, for example, prior to instituting claims in the Small Claims Court, a letter of demand is a necessary prerequisite to issuing summons for the recovery of rental. However, regardless of whether it is legally required, there are several reasons to always issue a letter of demand prior to instituting litigation:

In many situations, the threat of legal proceedings may be enough for the tenant to simply pay the amount owed. Alternatively, it may lead to them contacting you to work out payment arrangements and a plan for them to vacate the premises. In either case, the expensive and time-consuming process of litigation is avoided.

Even if the matter is not resolved by issuing the letter of demand, there are important cost consequences to consider. In the case of Havenga v Lotter, 1912 T.P.D. 395 it was noted: “It is perfectly true that a person who feels aggrieved may take out a summons immediately. He need send no letter of demand; but if he omits to send a demand, and a tender is made upon the summons, then he is not entitled to the costs of the summons”. Therefore, if you want to recover the unnecessary costs you had to incur prosecuting your action against the tenant, a letter of demand will often be a prerequisite to such right of recovery. Now, having stressed the importance of a letter of demand, the question arises as to how to go about actually drafting the letter of demand? In almost all cases, it us recommend that an attorney draft the letter of demand, following a full and analytically involved review of the dispute. While other entities, such as debt collectors, may claim to offer the same service, there are several drawbacks to employing the services of anyone other than a qualified attorney to assist:

The only person who can institute litigation on your behalf and represent you in a court of law is a qualified attorney.
A letter of demand coming from someone without this power, such as a debt collector, would not carry the same level of seriousness, especially to a clever tenant which knows the real limitations of the debt collectors powers of recovery.
There are often numerous strategic and legal issues to consider when drafting a letter of demand, even if the matter appears on its face to be fairly simple. For example, an attorney, after having reviewed the lease agreement and after having considered the law, would be able to advise you on additional options, such as – for example, cancelling the lease agreement and re-claiming occupation of the leased premises – as well as various other issues, such as the potential to assert a hypothec over the tenant’s property. Tenants also often come up with a myriad of defences and reasons why they are not obligated to pay rent.
A qualified attorney will be able to quickly sift through these and determine whether they have merit or not. Aware of the superior knowledge a qualified attorney has, a tenant will definitely think twice before relying on unsupportable arguments.
The purpose of the letter of demand is to obtain the most favourable settlement for you. A qualified attorney, with a thorough knowledge of the law, coupled with excellent analytical skills, is more likely than anyone else to be able to draft a letter of demand which convinces a defaulting tenant that it is in his interests to settle the matter immediately without having to go through the legal process.

November 23, 2015April 1, 2020

Fixtures and fitting – what goes and what stays?

Information courtesy of the RE/MAX.co.za blog

Often when disputes arise between buyers and sellers, it is regarding an item of the home that was seen as a fixture, but was removed during the home sale process.

According to Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa, it is for this reason that sale agreement between the two parties, otherwise referred to as the offer to purchase, needs to be clear regarding all aspects relating to the sale of the home. “It is not uncommon for a homeowner to have installed certain items in their home that they intend to take with them when they move. Even if the item is regarded as fixture, a seller is within their rights to take the item, provided the buyer is aware of the fact and is in agreement,” says Goslett. “Alternatively, if the agreement of sale excludes any specific item, the seller is entitled to remove it, which again points to the importance of ensuring that the sale agreement that covers all aspects clearly.”

He notes that disagreements occur when the sale agreement is vague and does not list the specific fixtures that will remain in the property. According to Goslett, the seller should prepare a list itemising exactly what is to be sold with the house prior to listing the property with an estate agent. “The list should be incorporated into the mandate to sell so that the agent can point out to potential buyers any items that will be removed by the seller at a later stage,” he says.

When it comes to fixtures and fittings, the general rule is that when a buyer purchases a property, they receive the land, the permanent physical improvements such as any buildings erected on the land, along with all items that are permanently attached to the improvements or buildings that are erected on the land. This includes all upgrades, fixtures and fittings of a permanent nature. This is why it is best to define what is regarded as permanent nature. According to Goslett, there are three aspects to consider when defining whether a fixture or fitting is of permanent nature:

- The first aspect to establish is the intended nature and purpose of the item when it was attached. Is the item attached to the land or a structure erected on the land and does this item intend to serve the land on a permanent nature?

- How was the item attached? If the item is attached to the degree that removing it would cause damage to the structure or land that it is attached to, then the item should remained fixed and be considered permanent.

- The owner’s intention when attaching the item should be taken into account. If the intention of the owner was to permanently attach the item, then that should be given consideration.

According to Goslett, if an item is bolted, cemented, sown or planted and has taken root it is generally regarded as permanent. He points out that a contentious issue can arise when it comes to structures such as Wendy houses, pergolas or other similar structures. Goslett says that the seller should provide the buyer with plans if the structures are permanent and will remain on the property.

To avoid any confusion or disputes at a later stage, Goslett says that a basic clause regarding the fixtures and fittings should be included in the agreement of sale.

The clause should be similar to the following: The property is sold inclusive of all existing fixtures and fittings of a permanent nature, which the seller warrants are his/her exclusive property, fully paid for and in working condition, including but not limited to: the existing garden, trees, shrubs, plants, curtain rails, rods, pelmets, fitted carpets, the light fittings, stove and/or oven, hanging mirrors, towel racks, shelves, as well as special tap fittings, removable kitchen units, tennis court net, fireplace grate/blower, fitted kitchen storage units, awnings, post box, burglar alarm system, doorbell/knocker, the television aerial and accessories (if applicable), pool filter, pump and all cleaning equipment including automatic pool cleaner (whether fixed or movable, if applicable), swimming pool equipment, inner and outer door keys. “The more specific the clause is the better. This is to ensure that nothing is left open to interpretation by either party.

Taking the time and effort to include all fixtures when the sale agreement is drafted will help to avoid any frustration that could arise later on,” says Goslett, who notes that while there might be a verbal agreement between the two parties, if the agreement has not been reduced to writing it is very hard to prove anything at a later stage should the need arise. “Before placing their home on the market, a seller needs to carefully consider exactly what they are intending to include in the sale and perhaps remove items before the home is opened to buyers,” says Goslett, “However, if it is not feasible to remove the items beforehand it is imperative that there is an open channel of communication and the seller’s intentions are made clear to buyers from the outset. This will ensure that conflict is avoided by both parties,” he concludes.