Best Time To Buy Real Estate From HUD Foreclosures

What current real estate boom? There's not a week that goes by that CNN or Forbes or Fox News or your local paper media doesn't carry a major article about foreclosures, the housing surplus or more stringent financing by mortgage lenders. EXACTLY! It is the best time to buy Real Estate in decades primarily due to all those reasons, plus for the near term anyhow, the lowest interest rates and the cheapest home prices in our lifetime. This will drive the current real estate boom in 2012. Three times in my past I have bought at the "height" of the market, depending upon long term appreciation for the value of my homes to increase. Well the old model just doesn't work as well now but that can be overcome by adapting new strategies, such as bidding on HUD homes, that I'll cover in this and future articles.

Quality of business will be better this year, says Mr. Y.W. Carr

It would be hard to over-estimate the effect that consumer sentiment has on the property market – and the past 12 months have been a bit of a roller-coaster ride for most South Africans, politically as well as financially.

“However, recent positive moves on both fronts, especially with regard to tackling unemployment, and corruption in the public service, are sending the right message to both local and overseas investors, and we expect stable interest rates and rising household incomes to further boost consumer confidence during the course of 2012,” says Young Carr, CEO of Aida National Franchises.

From a real estate industry point of view, Carr is “fairly positive” although he does not foresee that there will be any significant change in bank lending policies or increase in sales volumes.

“Affordability will no doubt increase, but we do not expect this to translate into a surge in demand or home prices, as many households will still be determined to avoid any new borrowing until they have paid off much more of their existing debt.”

But there will be a difference, he says, in the quality of the business being done. “This means, for example, that homes are less likely to be sold two, three or even four times before someone can obtain a home loan to complete the transaction. It also means that agents are less likely to spend their time and resources on marketing properties that are overpriced.”  

The main reason for this change, he believes, will be that many of the agents and principals who have “toughed it out” over the past three years to stay in the industry have gained much in the way of training, resources and systems and are now able to look beyond basic survival to the growth of their businesses.

“In our own group, for example, we have not only helped our franchisees to keep their doors open by streamlining their existing businesses and making them more efficient, but also spent much time over the past few years creating several additional income streams to help them grow in the future.

“Meanwhile, we are pleased that the newly-formalised real estate industry is starting to attract new entrants once more as it steadily gains back its reputation as the place to build a good career. Aida has also signed up quite a few existing agencies that see value in our brand. This new confidence in the industry – and the property market – is evidenced by the fact that Aida has just processed over 400 applications for SETA bursaries and learnerships for new candidate agents in 2012.”

Issued by Aida National Franchises

Aida head office: 012 682 9600

Contact: Young Carr

Top Berea estate agency joins Aida

A long-established agency operating on Durban's Berea has joined the Aida National Franchises property group and just re-launched under its new banner.

Principal Renu Sewpersad said she was confident her office would further entrench its already-strong market position as part of the Aida group, as there were many synergies that would benefit both the agency and its clients.

"Apart from sharing our vision, Aida is bringing formidable business partners and a stable, reliable brand name to the table."

Aida CEO Young Carr said the Berea agency, established in 2003, had proved its mettle in the local market and would further enhance his group's countrywide representation, bringing the total number of Aida offices in KZN to seven.

Sewpersad says the Berea residential market is currently underpinned by a healthy interest among younger buyers with good credit records.

"Berea currently attracts young buyers between the ages of 25 and 35. Buyers

in this age group are moving out from Durban Central but are not quite ready

to embrace a fully-fledged suburban lifestyle. Situated between the city

centre and suburbia, Berea is the ideal transition destination since many

new residents who prefer a quieter neighbourhood still work in the city.

"The suburb also offers good schools - an important consideration for buyers

with young families - and ample shopping facilities. And the nearest beach

is a mere 3km away."

Affordability also contributes heavily to Berea's popularity among young

buyers, Sewpersad adds. "Units priced between R500 000 and R1m are in

greatest demand and sell relatively fast but buyers' resistance kicks in at

prices above this level.

"However, sellers are now more amenable to negotiation and are willing to

drop asking prices by up to 10% to accommodate buyers who qualify for

smaller bonds."

Issued by Aida National Franchises

Aida head office: 012 682 9600

Contact: Mr.Young W. Carr

Aida Berea: 031 309 4007

Contact: Renu Sewpersad (Principal)

South Africans pack for Hermanus instead of Perth

Hermanus in the Western Cape is replacing Australia in the affections of many South Africans who want a slower and more secure lifestyle.

With the exchange rate currently at about R8 to an Australian dollar it is not only cheaper to move to Hermanus instead of “Down Under”, says Ludwig Schulenburg of the local Aida franchise, but Hermanus also meets all the criteria of the most popular Australian destinations.

"The town is relatively crime free, offers a wonderful lifestyle on the coast, a pleasant climate, and business opportunities aplenty," he says. "And, of course, buyers who opt for Hermanus instead of Perth still have their local support network of family and friends."

Hermanus, traditionally a holiday and retirement destination, now regularly draws economically active buyers from large metropoles in Gauteng, Kwa-Zulu Natal and the Cape, he says, and the new 'settlers' have swelled the number of permanent residents to 55 000.

"Buyers are typically in their forties and relocate to Hermanus to escape the rat race, but the booming local economy allows them to set up own businesses, earn a living at their own pace and have time to spend with their families.

"The local state school, with a 100% matric pass rate for the past 17 years, is an added attraction and a Curro private school, which opened its doors earlier this year, now offers parents the choice of giving their children a private school education."

Holiday homes are, however, still in demand and buyers are taking advantage of market-related prices, Schulenburg says. Sellers, who up until very recently held out for their asking prices, are now much more inclined to negotiate with prospective buyers in order to clinch a deal.

Prices of two-bedroom apartments currently start at around R600 000, townhouses are selling at prices from R800 000, while prices of family homes start at the R1m mark, he says.

Issued by Aida National Franchises

Aida head office: 012 682 9600

Contact: Young Carr

Aida Hermanus: 082 444 0592

Contact: Ludwig Schulenburg

Sleepy Muldersdrift wakes up

Muldersdrift, traditionally a quiet agricultural area characterised by smallholders keeping a few horses, sheep and chickens, has become the new housing hotspot on the West Rand.

"It's the new hip place to be", says Sienie van der Merwe of the local Aida office. "Muldersdrift is now the focus of new residential development on the urban edge and buyers are spoilt for choice between sectional title units and units in housing estates.

"It is conveniently located within easy reach of Lanseria airport and many professionals who have to travel often prefer to fly from  - and live near - Lanseria rather than battle through traffic from the West Rand to reach Oliver Tambo International," she says.

"It is also near the main routes leading to Pretoria and Midrand, where many residents work. And once the upgrade of the R28 crossing to Muldersdrift is completed, access to and from the main routes will be much improved."

New office blocks are also drawing businesses to the area and Van der Merwe expects that this will stimulate the local residential market as employees come to realise the benefits of living close to their work places in an area that also offers a sought-after lifestyle.

"Another draw card is the nearby Ruimsig Golf Course - especially among retirees and businessmen. And the Silver Star Casino on the R28 is a popular entertainment hub on the West Rand. It has become a favourite venue for a night's entertainment at the many excellent restaurants or at one of the regular shows," she adds.

Prices of townhouses in the area start at around R700 000 for a two-bedroom unit, while units in security estates such as Featherbrook start at around R2m.

The demand for development land has seen prices escalate, she says. Undeveloped agricultural holdings of 1ha that can be rezoned for development now reach prices of about R2m.

Developed holdings are selling at prices ranging from R1,5m to R7m, depending on location. "But," says Van der Merwe, "at these price levels buyers are making lifestyle choices - the days of buying a holding in Muldersdrift with an eye to growing a few crops or running a few sheep are numbered."

Issued by Aida National Franchises

Aida head office: 012 682 9600

Contact: Young Carr

Aida Randfontein: 082 854 7196

Contact: Sienie van der Merwe

Aida flag now flying in Fishhoek

Aida National Franchises has acquired a new office in Fish Hoek with the conversion of an existing estate agency to the tried and trusted South African brand.

Co-owner Maggi-Mae Vidas says the office, established in 2008, has built up a sound market presence and she looks forward to introducing Aida's expertise and solid reputation to the existing client base. Aida Cape Lifestyle Homes will serve the whole Cape Peninsula market.

Maggi-Mae says investors are still buying holiday properties in the area although sales are slower as investment buyers take their time to source good value. "Our core market remains local buyers who are attracted by the comfortable lifestyle offered in Fish Hoek and surrounds.

"The area is still very popular among retirees who prefer a comfortable seaside lifestyle within reach of a host of amenities. And then, of course, the more temperate climate here clinches the deal for many retirees as well as family buyers. Superb views are an added bonus for many."

The area has a wide variety of properties on offer, including entry-level flats at prices from R500 000, comfortable family homes starting at about R1m and luxury homes with price tags of up to R10m.

Maggi-Mae adds that the peninsula offers price advantages to buyers. "Properties here offer better value than similar areas closer to Cape Town's city centre while office workers can comfortably commute to workplaces by train.

"Another factor favouring Fish Hoek is that the area is very family-friendly. Good schools, a hospital, several banks offering forex, and a host of excellent restaurants are some of the conveniences that residents enjoy.

"And then there is the family-sized beach with lawns for comfortable weekend outings, while the local sailing club launching off the beach adds a touch of glamour. A resident Great White Shark has become something of a local mascot and attraction - but lifeguards make sure that swimmers remain safe when the predator puts in an appearance," she says.

Issued by Aida National Franchises

Aida head office: 012 682 9600

Contact: Young Carr

Aida Cape Lifestyle Homes: 021 782 9263 

Contact: Maggi-Mae Vidas

First homes sold in new retirement village in Onrus near Hermanus

With its combination of seaside tranquillity and modern convenience, Onrus is a perfect retirement location, and soon now it will also have a purpose-built retirement village where residents can fulfil their dreams of a “cottage by the sea”.

So says Deon Esterhuyse of marketing agency Aida Onrus, who notes that groundworks for the development, named Twee Fonteine, have already been completed and that the community centre at the heart of the village is due for completion by the end of next year.

“Meanwhile, although building has just started on the first free-standing home in the village, which will serve as a showhouse, six of the homes have already been sold, and enquiries are being received daily.”

There will ultimately be 75 full title homes in the development, as well as 42 sectional title units, he explains. “The full title units, ranging in size from 128sqm to 183sqm, will all have two bathrooms and two or three bedrooms plus a single or double garage, as well as a spacious veranda. There will also be the option of an added braai room at a cost of below R4 000/sqm.

“Sited on stands ranging in size from 252sqm to 498sqm, these homes are being sold on a plot-and-plan basis at prices from R1,325m to R1,8m, and buyers will have 12 months from the date they purchase the stand to start building.”

The sectional title units, ranging in size from 28sqm right up to 83sqm, will be incorporated in the central building housing the community centre, which will also contain a kitchen, dining room, ladies’ bar and lounge, assisted living and frail-care facilities. Prices for these units currently range from R560 000 to R1,66m. All prices include VAT.

Esterhuyse says this is an ideal investment opportunity for those who would like to rent their units out prior to their own retirement in future.

He notes that the whole development will enjoy a high level of security, with a single guarded access point and a perimeter wall topped with electric fencing.

“Each home will also be equipped with a panic button connecting it to the nursing station in the community centre, and Elcare, which operates in many retirement villages around the country, will provide professional medical care.”

Finance is available for qualified purchasers.

*For more information about Twee Fonteine, contact Aida Onrus on 028-316-3393 or aidaon@mweb.co.za, or Deon Esterhuyse on 083 284 0027.