House Valuations!

[Alfred Boehme]

Well, Alfred, if I mail an empty envelope to you, the cost of the post stamp should exceed the value of your house, so it should complete the offer to purchase as a cash transaction then, I assume...

Deal or no deal?

deal, I still need to use it for a few more years

[Michael Alexander]

I was asked the other day..."Would you really buy a house here?"... yes , I would if the price is right.... in fact i would like to buy 3 if I could, build a tourist guest camp outta them and go into the tourism business.... the proper way... not like the rest of the politicians think they can do out here.....

[Alfred Boehme]

  maybe I would depending on the price

[Barbara Eia (Brownless)]

Michael consider it the pound is so strong at the moment i would consider buying and going into the travel business...Think about it when they start offering you to buy    I am very serious

[Michael Alexander]

I will Barbara.... I have massive plans, but will wait till the houses come up and the retail trade takes a dip....I'll keep it in mind!

[Florrie van Zyl (Muir)]

I agree, if the price is right, buy. Property seems to be the only investment that really shows returns. I would even consider buying property instead of paying into a policy, or retirement fund, the returns have been much higher. Like Barbara says, even if the country is going backwards, the exchange rate will worsen for SA but will benefit anyone in tourism. Let me know if you need a business partner.

[Rhona]

Here's another willing business partner; I agree with you guys.........property is the only way to go.

[Dalene Steenkamp (Coetzee)]

Property is one way to go in a good diversified financial plan structure.  Gives you very good return over the longer period due to increase in value, but if you consider the interest rates, your downpayment installments over a period of 20 years, your taxes and counsil rates, personal tax wich may push you into a higher margin level due to rental income, and the value of the property added to your total asset value in your estate could also push you into the estate tax levels (20% of the total value with which your estate value exceeds the exclusion amount, besides normal estate duties).  You should always make your calculations very carefull, when buying property for investment reasons. Also keep in mind the capital gains tax that has to be paid when selling that property.  Only the capital gain on your primary residence property, in which you have to live and not rent out, is excluded to the limited amount, from CGT.

Liquidity also has to be taken into consideration when investing in property.  Meaning - to sell a house does not always take just a day or two, and if you are in major need for cash, you might have to consider a loan or a second mortage etc.  Sometimes you even have difficulties to sell the property, due to lack of interest.

So, what I am saying is:  do your homework well when deciding to invest in property for good gain and marginal return, but make sure that you are backed up with emergency cash.  Also make sure you buy property where you can forsee that there will be a good opportunity for resale for the future.  Geographical situation or the neighbourhood you buy in play very important roles when deciding to buy.

[Michael Alexander]

Gee! Aunty Dalene, you should charge for the advice you're dishing out here...

The Rand has lost 7% in value since the beginning of the year, it regained 1% yesterday, but by 2010 it should be quite strong again......

[Dalene Steenkamp (Coetzee)]

Market volatility happens all the time, but you can bet by it that every 5 to 6 years there is a dip, due to rectifications in valuation of actual stocks listed.  Kinda like a soap bubble.  This is the time you should actually consider to invest  -  you buy in at low prices, so when the market recovers you score good. 

Funny how we all run to the big shops when they have a special or special markdown or red hanger sale, but when it comes to stock and unit trusts we run away!

Hey, I'm not saying you should all run and invest money into these structures now  -  please!  Have your own financial advisor do a proper analysis for you and let him/her put different solutions or options before you AND  -  please determine your own risk profile when considering investment funds.  Ask your advisor to show you the composition of the fund, ask who the fund managers are and what mandates they have, ask for their benchmark performance rates and how well they have measured up to those etc. 

[Michael Alexander]

From my own personal point of view...I think buying shares and investing in money markets is like a big Casino...a global casino... I often watch the Business nes on CNN and BBC and wonder in amazement whent he Exchanges have a bad day, who actually lost money when they tell you that the dow jones lost 4 billion in stock today.....

[georg ruf jr.]

There's just one question that won#t go from my mind. That may be what Dalene was refering to...
To who do you want to sell your house when the rats leave the ship and you have to go, because the unimployment desease is going around und you know your kids won't get a job some day?

[Patricia Lotte]

If all goes as planned, you should have paid off your mortgage by the time you move on to greener pastures. Your kids would then inherit the property (and of course all the inheritance taxes and other unexpected costs!) It's when you don't have kids to leave your assets to that it becomes a dilemma. I don't want to leave everything to some blood-sucking government !

[Clive Symes]

Hi Mike,
Only getting into this late, been really busy.
It used to pee both Kenny & I off, the number of times we have been asked to measure up houses for Township. I'm sure they lose any information you give them. It got to the stage where the Project Engineer at the time ( who shall remain Nameless) instructed me to supply the next person to request the sq metre's of a house  with a bloody tape measure because it was cheaper than sending a draughtsmen.
There are (WERE) files in the drawing office listing the drawing and modification for each house in town.
When Keith Whitelock was GM there were rumors that the houses would be sold off cheaply until some accountant saw they may make a profit and indicated it would have to be at market related prices, (using Cape Town and Joburg as bench marks) anyway that died right there and because the town still needed to be proclaimed.

Has the Town been proclaimed as yet.

[Michael Alexander]

Proclamation is still way way off...... it is not as easy to proclaim this town , as a lot of the other so called towns that were proclaimed over the last 17 years have gone bankrupt.......