Realestate

SA Prime Lending Rate

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Prime Lending Rate – South Africa

What is a Prime Lending Rate? / https://en.wikipedia.org/wiki/Prime_rate

A prime rate or prime lending rate (PLR) is an interest rate used by banks, usually the interest rate at which banks lend to favored customers—i.e., those with good credit. Some variable interest rates may be expressed as a percentage above or below prime rate.

We had our first Monetary Policy Committee (MPC) meeting of the South African Reserve Bank last week. The MPC decided on 16 January 2020 to lower in Interest Rate by 25 basis points which meant that the PLR dropped from 10.00% to 9.75%. The next meeting date in scheduled for 17 to 19 March 2020.

IR 2020 4

The lower the PLR the less you pay on your bond, car finance etc, unless your rate is fixed on a fixed percentage with the financial institution. Lowering the Interest Rate is always seen as a positive move for the property market as this will benefit both Buyers and Sellers. Buyers will have a slightly reduced bond repayment which will affect their affordability profile. At the same price, Sellers will have more buyers who can afford their properties due to the reduced rate, etc etc. The difference in repayment of an average bond amount is very small, but this changes as the bond amount gets higher.

Example of bond repayments:

  1. R 1 200 000 bond on a house at Prime (9.75%) over 20 years will cost you R 11 382.20pm as a repayment. The same bond at 10.00% over 20 years would have cost R 11 580.26pm, a saving of R 198.06pm.
  2. R 5 000 000 bond on a house at Prime (9.75%) over 20 years will cost you R 47 425.84 as a repayment. The same bond at 10.00% over 20 years would have cost R 48 251.08, a saving of R 825.24pm

The attached PLR Graph shows the rate changes since June 1998, going up to 25.5% in August 1998 coming down sharply during the next 14 years with some spikes to 8.50% in July 2012. The last 10 years have been constant between 10.50% and 8.50%.

Prime Rate

The biggest benefit to the MPC lowering the rate is that it creates a positive market sentiment which means that buyers and investors are happy to invest in property. The most important factor in the current market is still PRICE. We believe, as there are quite a lot of stock available that we are still in a Buyer’s Market and Sellers need to price correctly in order to get Buyers interested. “Over Pricing” is very negative as many over-priced properties never sell.

The time for making a killing on your property isn’t now. But if you are prepared to sell at a MARKET RELATED price and your property is priced accordingly, you will. Buyers will always negotiate but within reason if your price right.

2020 Have kicked off with a BANG and we hope that you will have great year. Looking to sell? Let us know, we would love to sell your property.

Juanita Steyn – 083 604 1231
Marnus Steyn – 072 264 7806

For all out stock, show-days, listings and news please go to www.steynrealty.co.za

CSOS Community Schemes Ombud Service

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If you belong to a Sectional Title Scheme then you are paying a CSOS Levy on a monthly basis and your complex / scheme has to be registered with CSOS ….. herewith some details.

“The CSOS was established in terms of the Community Schemes Ombud Service Act to regulate the conduct of parties within community schemes and to ensure their good governance. The Community Schemes Ombud Service Act, 2011 (Act 9 of 2011) and the Sectional Titles Schemes Management Act, 2011 (Act 8 of 2011) and Regulation thereto were proclaimed on 07 October 2016.”

For more information visit the CSOS website:

http://www.csos.org.za/

Need to sell? We need your property ….. give us a call:

Marnus Steyn: 072 264 7806
Juanita Steyn: 083 604 1231

PROPERTY

Costs when Buying Property

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Every now and again we get buyers viewing properties or visiting our show houses with no idea that there are transfer and registration costs payable when buying property. Some of them also think that this can be financed with the bond amount.

So just to shed some light on this subject, especially for first-time buyers ….

When buying property, the purchasers (in most cases) are responsible for paying  the Transfer Costs as well as the Bond Registration Costs to the Transferring Attorney upon request. This is done after all suspensive conditions in the Sales Agreement has been fulfilled and needs to be paid in order for the registration process to proceed. In the case where someone buys a property in a new development these costs or a portion of these costs may already be included in the sale. Most property websites and portals as well as banking sites have built-in cost calculators where these costs can be calculated. Please have a look at our website at http://www.steynrealty.co.za for more detail.

Transfer Costs - Web.jpg

Transfer Costs: Is paid on the full sales / purchase price.
Bond Registration Costs: Is paid on the bond amount only.

Both these costs are calculated by the Attorney firms involved according the a schedule and sliding scale. Please look at the following example:

Full Purchase Price: R 1 500 000
Deposit Amount: R  100 000
Bond Amount: R 1 400 000

In the scenario above, the following estimated costs will apply.

Property Transfer Costs (R 50 298.00)
Attorney Fees: R 23 598.00
Transfer Duty: R 25 500.00
Post, petties, FICA and other: R 1200.00

Bond Registration Costs (R 29 985.00)
Attorney Fees: R 22 800.00
Bank Initiation Fee: R 5 985.00
Post, petties, FICA and other: R 1200.00

TOTAL COSTS: R 80 283.00

The Purchaser in the above scenario will then have to have R 180 283.00 cash available to cover the deposit and costs. Costs cannot be added to the bond amount / purchase price as this is not allowed by the Banks or Attorney Firms.

It is very important that prospective buyers take the time to calculate all the various costs and payments that they will be liable for before shopping for a new property.

For any queries on the above, please feel free to contact us or send us an email to marnus@steynrealty.co.za / juanita@steynrealty.co.za

Hope you have a great day …… off to go sell some houses.

 

 

Welcome to 2017

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Welcome to 2017

…. not sure about you but 2016 was not a particularly good year for the Real Estate industry in SA. We saw the Prime Lending Rate go from 9.75% to 10.5% in the first half of the year. This, together with a couple of very negative and concerning economical and political movements put a bit of a damper on the market with most agents I spoke to reporting a drop in sales for the year.

Enough of 2016 and enough negativity over that market, the macroeconomical situation of the country and the dreaded word ….. “Politics” … blah blah blah … we have work to do and properties to market and sell.

2017 is here and we are going to “hook it” …. we are going to “hook it real good”. Stock in the Real Estate market is and always will be king! There are buyers for well priced properties. Although there are many factors that play a role like area (location), condition and specifications ….. “PRICE” will be the determining factor. If you price right, you will sell.

STEYN REALTY is serious about delivering an exceptional service to out clients being Property SELLERS, BUYERS, LANDLORDS & TENANTS. We have the experience, knowledge, marketing expertise, professional attitude and the drive to assist our clients with any Real Estate related query or assistance they might have. Where we can’t assist we will try to point you in the right direction. We have a list of professional and capable bond originators, attorneys, electricians, plumbers etc who we refer to our clients on a regular basis.

Buying or Selling Property is serious business and you need to team up with an Estate Agency who is just as serious about what they do. STEYN REALTY would love to assist you, no matter how big or small your property …. we do it all. We can also manage your rental portfolio, find, screen and place tenants on an ongoing basis.

If you are looking to Buy, Sell or Let-Out a property anywhere in the Roodepoort / Krugersdorp area or you know of someone who is struggling to sell please give us a call.

Marnus Steyn / 072 264 7806 / marnus@steynrealty.co.za / http://www.steynrealty.co.za
Juanita Steyn / 083 604 1231 / juanita@steynrealty.co.za / http://www.steynrealty.co.za

 

 

Fortune favours the brave ….

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Here’s a mind-twister for a Monday ….. I believe that fortune favours the brave so …..

If properties in South Africa sell within 12 weeks of being listed, on average, why hang on to stock where sellers are not prepared to list with me at my valuation amount or even close to it. Why list your property (knowingly) at inflated values in the first place and then hope that buyers will come and make offers.

In the current market segment where we are selling (mostly R 500 000 to R 2 000 000) while taking into account the current market conditions and economic possition of the country, only the well priced properties are selling and shouldn’t take more than 6 to 12 weeks to get offers. I think it’s time that agents change their offering and sellers need to be aware of agents over-inflating property prices in order to secure mandates. Sellers are contracted to long-term mandates of 6 months (and more) which in my view borders on unethical conduct on behalf the agent and also point toward a very uninformed and stubborn (“not serious”) seller. 

As a SELLER (keep the following in mind):

1. Price your property right to sell

2. Choose your agent carefully

3. Discuss a well thought out marekting plan

4. Sign a mandate (mutual commitment)

5. Demand feedback and progress reporting.

As a result of the above, our offering will in future change to a maximum sole mandate term of 10 weeks at our recomended “Listing” price (Only) and will include all the bells and whistles of online and social media marketing / advertising, show days etc. If we can’t sell it within that time with the various marketing strategies we have in place, then we believe that no one will be able to.


To get your property LISTED and SOLD, call:

Marnus Steyn 072 264 7806 / marnus@steynrealty.co.za

Juanita Steyn 083 604 1231 / juanita@steynrealty.co.za 

#Roodepoort #Westrand #Wilgeheuwel #Radiokop #Strubensvalley #LittleFalls #AllensNek #HoneydewManor #Ruimsig etc etc 

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Seller Information

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SELL THROUGH STEYN REALTY

I recently posted this article on our website in an attempt to notify sellers and future property sellers as to the potential pitfalls / costs when selling.

Just in the case of purchasers who need to do their homework before buying, making sure they are credit worthy and what they can afford, Sellers also need to do their homework ….

While touching on a couple of other issues, the article aims to outline most of the potential costs that Sellers may be responsible for during the sales and registration (transfer) processes. It covers the following:

  1. Avoiding Penalty Interest
  2. Bond Cancellation Costs
  3. Compliance Certificates
  4. General Condition of the Property and
  5. Nomination of the Transferring Attorney Firm.

You can read the article by clicking on the link below.

CLICK HERE

www.steynrealty.co.za (2).jpg

For any sales or rental related queries or to get your property listed in the Roodepoort, Ruimsig, Wilgeheuwel, Little Falls, Constantia Kloof and surrounds …. please contact!

Marnus Steyn – 0722647806 / marnus@steynrealty.co.za

Juanita Steyn – 0836041231 / juanita@steynrealty.co.za

http://www.steynrealty.co.za

 

Where is TIME going …?

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August 2016 …. 5 months into our own business and more than 11 years in the Real Estate Industry and here we are …. still going “strong”.

PROPERTY

During the last 5 months we have done a fair amount of transactions ranging from R 2 000 000 to R 500 000 but we need more, much more. We pride ourselves on being pro-active when it comes to marketing and advertising of our stock, technology and the quality of our service, feedback, knowledge and professionalism.

Buying or Selling property is a massive decision and we take it very seriously. We have the necessary knowledge and experience in selling residential homes / clusters as well as sectional title townhouses and apartments to make sure that our clients are in good hands and get the right advice. We also offer rental procurement and management services where we offer a complete service through the TPN Rentbook and TPN Credit Bureau systems.

We get enquiries for sales and rental stock on a daily basis and we need more stock to show our buyers and tenants.

If you are at all looking to SELL or LET OUT your property, please give us a call or an email so we can assist. We cover quite a large area from Pinehaven in the West all the way along Hendrik Potgieter up to the Wilgeheuwel Hospital area in Radiokop. We are also looking for properties in Helderkruin, Kloofendal, Constantia Kloof and Weltevreden Park.

We can be contacted as follows:

Marnus: 072 264 7806 / marnus@steynrealty.co.za
Juanita: 083 604 1231 / juanita@steynrealty.co.za
Our website is: http://www.steynrealty.co.za
We are also quite busy on social media where you are welcome to follow our tips / hints / latest stock and industry related news updates and info ….

For our Facebook page ……. Click here
For our Twitter feed ……. Click Here
You can even follow us on Instagram ….. @steynrealty

We would also love to hear your views and thoughts on the SA Real Estate industry so please interact and give us you opinion.

\WE CAN HELP

 

Success Story – Real Estate

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I had this listing for a while, listed on all the major websites and also with other agencies as part of our Multi-Listing arrangement. The property is situated in a very good area so the viewings were quite regular. Every time we had a Sunday Show Day it was quite busy with some real interest, but no offers.

The owner of the property had already bought another property and it was now up to me to get this one sold so that his transaction could also continue ….. no pressure, I was given until the end of September ’15 …..

2. HELDERKRUIN FAM HOME

At the end of August I went to the Owner / Seller with the following pitch. “Let’s withdraw all the listings and re-list on a sole mandate basis (as the commission was not favorable for sharing), show every weekend, renew all marketing and see what happens”. Part of the deal was that we also reduced the price and re-looked at the commission structure. This is not ideal but both myself and the owner agreed to make a bit less to get the deal done.

The process that followed was quite amazing to say the least:

  1. 2 September ’15 ….. We re-listed on all the sites etc
  2. 3 September ’15 ….. Got a buyer enquiry from Private Property
  3. 4 September ’15 ….. Took prospective buyer through and he loved the property but couldn’t make a final decision
  4. 6 September ’15 ….. We had a Sunday Show day and invited him to come and have another look. The show day was busy as usual. He also came through and I could see he was close to making the call.
  5. 8 September ’15 ….. With a bit of negotiation we took an offer and got it accepted the next day. By this time we had already informed the bond originator (Payneless Bonds) who made contact with the Purchaser and requested all the necessary documentation.
  6. 10 September ’15 …. The Purchaser had all his documents ready and his application was submitted to all the banks
  7. 11 September ’15 …. After only 1 day the banks started coming back with AIP’s (Approval In Principal – subject to Property Valuation)
  8. Monday 14 September ’15 …. we had our first bank valuation done and got our first bond grant
  9. 15 September ’15 ….. We got confirmation that the deposit was paid. We also received more bond grants and there you have it …… the property is now SOLD.

Sold New

13 Days from re-listing to SOLD with deposit and bond grant in place. This is why I love this profession (not job). The mere fact that this can happen with the right assistance, dedication, negotiation and a bit of luck.

I can only applaud Sanette and her team at Payneless Bonds who really jumped at this one and assisted in the fastest time possible. I can really recommend their services …. just go to http://www.paynelessbonds.co.za

If you looking to sell property anywhere on the West Rand, Krugersdorp or Roodepoort …. please contact me and I will try to assist ….. I love selling property! http://www.realpro4u.co.za

marketing

Happy Springday!

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It’s that time of the year again …..

Pools are getting blue’er, gardens are getting greener and in general I think people are happier ….. it’s good time for Selling Property.

For any property Sales or Rentals in the Krugersdorp or Roodepoort areas, please contact me …… I can assist!!

http://www.realpro4u.co.za

sPRING

Tips for getting your property from Listed to SOLD.

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Tips for getting your property from Listed to SOLD!

Do some of your own research:

  • Have a look at some of the “Listing” and “Sold” prices in your area, street, neighbourhood, complex or estate where you stay. Any decent agent will be able to point this out to you but don’t just take his / her word for it. Many agents “buy” mandates by showing inflated valuations creating unrealistic expectations.
  • Pricing is the most important factor when selling. Although “location” is important, you can’t do anything about it unless you stay in a mobile home. A lot can be done to other factors such as condition, accessibility and pricing ….. get the price right, and you will sell quicker.

Become a buyer:

  • Look at your property through “Buying Eyes” and ask yourself the following questions ….
  • Would I buy it in the condition that it is?
  • What would I like to have “fixed up” before I buy?
  • What are the biggest negatives about my property and what can I do to make it better.

Appoint a reputable agent to market and sell your property:

  • We (agents) like to work on Mandates because that shows commitment from your side and I can then spend valuable time and money advertising and bringing buyers to your property. Although it might not always look that way, a lot of time, effort and money is spent on marketing and communicating with buyers before they actually see the property and once an offer comes in, the real work starts. You want to make sure you are dealing with an agent that understands the selling and registration processes so the transaction can be as quick and painless as possible. A mandate can be seen as an employment contract where the salary (“Commission”) is 100% performance / outcome based.

Be accessible:

  • Many properties do not sell because you can never get in to show buyers the property. Between you and your agent you have to arrange that the property can be easily accessible. Most buyers (not all) view properties after hours in the week or weekends and they see more than one at a time so you have to “play ball” here. If a buyer can’t see your property he will go on and buy something else and you might just lose out on “the one”.

Clean up:

  • It’s a fact, neat houses sell quicker than dirty or untidy houses. Buyers are put off by the fact that the owner is not taking care of the property and as much as we try to tell the buyers to look past the mess in the kitchen, unmade beds, clothes all over the floor, underpants (and other similar items) lying around in the bathroom, on the couch etc …… most buyers will not see the “potential” we talk about and leave.

Don’t be stubborn:

  • Selling properties is what we do and I don’t believe that this business can be done as a part-time or side-line business so …… selling property puts food on the table for most agents and we need to sell to survive. As mentioned in point 3 above, pick an agent that you can relate with, trust and work with to sell your property and then go with what he or she tells you to do. If you don’t get along with the agent, don’t appoint him or her and find one you like.

…………… hope this helps, please feel free to pass this on or “share” with friends and watch this space for more tips, hints and industry related news and updates …………. Happy Selling!

SOLD PropertySelling Property