RE/MAX Blog

Value and marketability - Is there a difference?Fri 08 Jul 2016

Value and marketability - Is there a difference?
Those who have decided to list their property on the market will all have the common goal of maximising their home’s potential selling price. Regional Director and CEO of RE/MAX of Southern Africa, Adrian Goslett, says that the first distinction that sellers need to make when listing their property is the difference between the actual value of their home and its current marketability.  He adds that there are a number of elements that determine a home value, just as there are aspects that impact a home’s marketability in the current economic environment and phase of the market.
“While the value of a property is determined by looking at things such as its type, size and features and configuration, marketability is more about the readiness of the property to be sold. This relates to aspects such as the home’s condition and aesthetic appeal,” Goslett explains. 
Value
According to Goslett the value of a property is largely determined by the supply and demand in the market, along with buyer’s personal preferences. “For example, when demand for property is greater than the supply of available properties on the market, the perceived value increases. The opposite is also true, in that when there are a lot of homes for sale, but not many buyers – home values can stagnate,” says Goslett. “There is a distinct link between property prices and demand and the value of a home is not established by the seller, but rather the prospective buyer. Essentially what this means is that value is largely determined by what buyers are prepared to pay in the current market.”
It is important to note that while renovations or alterations to a property will change the price level to some degree, it does not always mean that the value of the property will increase. Why is this? Goslett says that homeowners who are renovating with the view of selling the property need to be aware of the current trends in the market and what buyers are willing to pay more for. “A new kitchen or bathroom upgrade will make the home more attractive to buyers, but that does mean that they will be willing to pay an increased amount to the equivalent cost of the renovation,” says Goslett.
Another consideration is when renovated is over-capitalising. If the improvements to the home are beyond what the value that area dictates, it will have a negative influence on the property’s saleability. “Why would a buyer want to pay more for the home, when they can get a similar one in the same area for less?” asks Goslett. 
Marketability
Considering that the marketability of a home is largely determined by how ready it is to sell, preparing the home before it is listed will increase its marketability and ensure that it attracts a greater number of potential buyers. Essentially increased marketability can result in the seller achieving a higher price for the property. “It goes without saying that a home that is clean, neat and well-maintained will be far more appealing to prospective buyers. The marketability of the home is increased by ensuring that it is in its best condition prior to being placed on the market. Although adding a coat of paint and having the garden landscaped won’t necessarily increase the home’s value, it will increase its marketability and make it appealing to larger number of potential buyers - even through the actual features of the home have not been changed,” says Goslett.
He adds that staging the property will also have an impact on its saleability. It is advisable to de-clutter and remove unnecessary items from the home, but still keep it furnished. It can often be more difficult to sell an empty home because it can look bare and it will be potentially difficult for buyers to see themselves living there. An experienced real estate agent will be able to provide valuable advice regarding staging the home and making it more appealing during viewings.
“While there is a distinction between value and marketability, both aspects should be considered and are important for homeowners to ensure that they maximise their potential selling price and stand apart from the crowd in this competitive market,” Goslett concludes.
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Property buying golden principlesThu 07 Jul 2016

Property buying golden principles
The simple truth is that not all property purchases are equal. While one property investment could become the cornerstone to wealth creation, another could lead to financial ruin. What is the difference between the two? 
According to Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa, in order to ensure success and make the most out of their property purchase, buyers need to be well-informed, savvy and make the correct buying decisions from the start. He notes that decisions made during the purchasing process will have a massive bearing on the potential return on the buyer’s investment.
Goslett says that merely purchasing a home at fair market value doesn’t guarantee that the buyer will see healthy returns over the long term. He points out that there are certain golden principles for any property acquisition that buyers would be wise to follow:
Research and ask questions
Before making any decisions a buyer needs to establish whether they are purchasing the property as a home to live in or merely for investment purposes, as this will change the way the buyer approaches the purchase.  “If the home is bought with the intention of being the buyer’s primary residence, the decision making process will be far more emotionally guided. The buyer will look at aspects of the property and the surrounding area that appeal to them personally. However, if the property is for investment purposes it will be more important to research what will appeal to possible tenants in the area and who the tenants might be,” advises Goslett.
He notes that while a buyer will be able to find a great deal of information online regarding the area, the estate or complex, nothing can replace checking out the location in person. “Take the time to drive around the area and walk the streets. Consider what the traffic is like and who your potential neighbours could be, as well as the facilities and amenities in the area. A real estate professional with working experience of the area will be able to provide a comparative market analysis, which will reflect recent stats and figures of sales in the area,” says Goslett.
Simplify and stick to the basics
Regardless of the phase of the property market or external influences – sound property buying principles never go out of fashion. Goslett advises that there are fundamentals that successful property buyers keep in mind at all times. These include aspects such as the property’s location, the value per square metre and the potential rental yield - these will always be the key criteria on which an investor makes a decision.
Subtle differences can have a big impact
It is vital not to underestimate the importance of location and just how much a small variant between two areas can impact property pricing. Even if two separate homes offer the same features, their values can differ greatly depending on where they are situated. “It is possible for property prices to vary substantially from one suburb to the next. In fact, it is even possible for homes to have different values based on which side of the street they are on. From an investment perspective, purchasing the worst home in a sought-after area is far better than purchasing the best home in an area with less appeal,” advises Goslett. 
According Goslett, buyers who are purchasing a property with the intention of letting it out need to consider the fact that various aspects will be attractive to a variety of people - so discovering their niche market is essential. Investment buyers should also look at how much rental stock is available in an area before purchasing a buy-to-let property. The rental property sector is largely driven by demand, and an investment could fall flat if there is an oversupply of properties available for rent in the area.
Have a plan in place
Both property buyers and investors need to have a plan in place when buying a home. “As a property investor, it is important to think about what you would like to achieve with your property portfolio and what needs to be done to get there,” says Goslett. “As a property buyer, it is essential to think about where you would like to settle for the next five to ten years.”
He adds that having goals in place will assist buyers to remain focused and will give them something to work towards. Buyers should never limit their thinking to what they can afford right now, but rather what will be possible for them in the future.
Drop the debt
One of the key elements to any property transaction is access to the necessary finance and affordability. Cash buyers only represent a very small portion of the market, while most buyers will require a bond to purchase a home. According to Goslett, buyers can ensure that their application for finance has more chance of success by reducing their debt-to-income ratio and keeping a clean credit record.  
It is also vital in today’s market to have a deposit of between 10% and 20% of the purchase price of the property. A deposit will increase a buyer’s chances of bond approval and reduce their monthly repayment.
It is more than just bricks and mortar
While the return on investment is often a driving factor in property buying decisions, it shouldn’t be the only factor that is considered. According to Goslett, the basic principle of purchasing a property is that if you wouldn’t want to live in it, it’s not likely many others would either. The property has to appeal to the buyer and they have to want to own it.
“Purchasing a property that provides a healthy return is not just about luck and timing, it’s about much more than that. The most important aspect is to research as much as possible, and only buy a property once all options have been carefully considered,” Goslett concludes.
 
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Selling? Here's what you need to knowThu 30 Jun 2016

Selling? Here's what you need to know
As the market transitions and more inventory becomes available to buyers, sellers will find themselves in a far more competitive environment, says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa. 
“For some time conditions have favoured sellers, with high demand and a low supply of inventory, however the market is slowing shifting as buyers are adopting a wait-and-see approach to the market. As a result sellers now have to be aware of the competition they face in their own neighbourhood, before they decide to list their property,” says Goslett. 
He provides a few aspects that sellers should consider about their neighbours before they list their home:
Who is renovating?
If possible, it would be advantageous to tap into the neighbourhood grapevine and see who is renovating their kitchen and upgrading their bathroom fixtures. These upgrades generally add value to a property and attract buyer’s attention. Goslett says that a real estate professional who specialises in the neighbourhood will be able look up the listing and sale prices of those homes to find out if the updates made a difference to the bottom line. 
How long are homes sitting on the market?
Before listing, sellers should keep an eye on how long it takes for a home to be sold in the neighbourhood. This will give some important insight into how they can expect their home to be sitting on the market and plan accordingly. The FNB Price Index indicates that on average a home is on the market for around 12 weeks before it is sold. “Depending on the neighbourhood, properties available and buyer demand in the area, it could take less time or in some cases a bit more. It all depends on the specific circumstances that surround that particular trading environment. Other factors can also come into play such as pricing the home correctly at what is perceived to be fair market value for the area,” says Goslett. 
Take stock of the available inventory
Goslett says that it can be difficult to obtain a competitive price when inventory is high and buyers are few. “All the sellers in a particular neighbourhood will be competing against one another for the same pool of buyers. If there are several homes for sale within a relatively small radius, it might be worthwhile to wait for a while before listing the property,” advises Goslett. “An experienced agent will be able to provide vital information with regard to the current market trends and the best time to list the property.”
Stay up-to-date on any area planning and zoning news
While buyers want to purchase a property that is within proximity to amenities, they won’t want to stay there while major construction is underway.  Sellers should keep au fait with any upcoming public projects that could impact their property listing timing. If there are any potential projects, the seller can discuss a selling strategy with their agent to work around possible issues.
“A real estate agent with extensive working knowledge of the local market will be able to put all aspects into perspective when considering selling. Sellers will benefit from using an agent that has an understanding of the unique dynamics surrounding their specific neighbourhood,” Goslett concludes.
 
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How millennials can save for a depositWed 29 Jun 2016

How millennials can save for a deposit
While Generation X consumers, who are between 31 and 45 years old, are still driving the property market in most sectors, it is the up-and-coming Millennials who are the future home buying force. However, this younger generation, who are 30 years old and under, have some challenges to face in the current market.
Regional Director and CEO of RE/MAX of Southern Africa, Adrian Goslett, says that many Millennials are in the process of starting their careers and have large student debt that they need to pay off. As a result, it may take some time for them to get on their feet and build up the necessary savings to purchase their first property. “For some the idea of saving for a home while paying rent and making student loan payments is daunting to say the least. Although it might be impossible for some at this stage, for others it could be a matter of having the discipline to make certain sacrifices and set aside money rather than spend it,” says Goslett.
He adds that for the majority of Millennials, as with most first-time buyers, the biggest hurdle to overcome is getting together the money for the deposit, especially considering that banks are asking applicants for between 10% and 30% of the property’s asking price to qualify for finance. 
Deposit
According to Betterlife bond application statistics, the average deposit percentage required by first-time buyers during the month of June was 21.17%. Considering that the average purchase price was approximately R860 000, that equates to a deposit amount required of around R182 000 – not a small feat. 
Goslett says that the best way to accomplish big goals is by starting small and remaining consistent. “Mountains are climbed by taking one step after another. While the thought of saving an amount as large as R182 000 may seem like a massive deed for a younger buyer, it can be achieved by breaking the amount down into smaller, more manageable goals. Even if it is a matter of starting out setting aside small initial amounts – just get started,” advises Goslett, “the sooner, the better.”
He adds that the amount can be increased at a later stage, but it is important to get started and remain consistent, putting money aside every month.  
A good way to save
Ideally, the best way to set a monthly savings goal is to find the difference between your current rental payment and the estimated bond repayment, which should include other monthly costs such as bond insurance, homeowner insurance, rates and levies. If possible, the difference should be set aside as savings. “The benefits of this strategy are twofold,” says Goslett, “firstly it will build up your savings, and secondly it will help you to adjust to the anticipated cost of owning a property.”
According to Goslett, this method of savings will provide the buyer with some insight into whether they are actually financially ready to own a property and what they can afford. If they are able to meet their savings goal consistently, then they will know that they are in a positon to purchase a property within their budget. Buyers, who are struggling to meet their monthly savings goals, might need to adjust their housing budget and bring it in line with what they can realistically afford. 
A visual dream board with a picture of the type of house that the buyer wants to purchase will help to keep them motivated and on track. “It is important to be reminded of why you are doing without certain things, and putting away savings. A visual image will be a daily reminder of the end goal,” Goslett advises.
Finding the savings
The first place to look for savings is the property you are renting. Goslett says that if the rental is more than 30% of your monthly income, then it is too much. “While it might mean scaling back, consider moving to a more affordable rental property. It doesn’t make sense to spend more money on a rental home, if it is holding you back from owning your own property,” he says. 
Finding more savings will require the potential buyer to assess their current spending and scrutinize their every expense. “Money can be saved by making a packed lunch every day, instead of eating out. Other ways of saving include cancelling that gym contract and finding ways to exercise for free or travelling to and from work in a lift club. There are a number of ways to cut back on spending, it just takes some creativity,” says Goslett.  
The right time
There is the concern that while Millennials are building their savings, rising home prices and interest rates will make it more and more difficult for them to get onto the property ladder. While there is merit to the concern, it is best not to rush into buying property until you are completely ready. “Even if it means paying a slightly higher price at a higher rate, it is best to have a solid financial foundation and be confident that you can make the commitment that homeownership requires,” Goslett concludes.
 
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Brexit - Will it impact the SA property market?Fri 24 Jun 2016

Brexit - Will it impact the SA property market?
Last night Britain shocked the world by voting to leave the European Union. Many nations, including South Africa, are now asking how this decision will impact their economies and markets going forward.  With the UK a trading partner to a great number of nations, there is likely to be some effect, even if it is only marginal.
 
“In my opinion,” says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa, “it will be interesting to see how Brexit impacts the South African economy and more particularly the housing market. At the moment everything is merely speculation as we are entering unchartered territory with no nation state ever leaving the EU. Since last night there has already been an impact on foreign currency, which has been behaving extremely erratically.”
 
So how does this impact South Africa?  Goslett says that due to the fact that South Africa is highly reliant on importation of goods, the effect on foreign currency could bring about further inflation pressure as the rand weakenings. “In short, with a depreciating currency, importation will cost more and inflation will increase in South Africa, creating a repetitive cycle. We will essentially be importing inflation,” says Goslett. “A sustained weakened rand will also place further pressure on the Reserve Bank in increase interest rates. There is no doubt that interest rates will continue to climb, which will also reduce potential homebuyer’s affordability ratios. Homebuyers will have to factor in the rising interest rates and ensure they have some financial cushioning.”
 
Goslett adds that the property market could see many first-time buyers holding back and adopting a wait-and-see approach until the full effects of Brexit on the South African economy are revealed. This is usually the case during perceived instability in the market. “Another that we could see is a rise in the cost of credit. Usually during periods of global economic uncertainty, banks become risk averse, tightening their lending criteria. As a result, access to finance becomes increasing more difficult, as more stringent global lending criteria are placed on the banks themselves. Not only will it be harder to get credit from a bank, it will more than likely be more expensive, which will impact on consumer’s affordability levels,” says Goslett.  
 
Head of Home Loans at Standard Bank, Steven Barker, says that while it is too early to confidently predict the impact of the Brexit outcome, it has added further uncertainty to the South African property market. “The consumer is expected to continue to face pressure on household finances in a rising interest rate cycle. Negative moves in the currency market could lead to higher inflation which could put interest rates under further pressure,” he says. “We will have to wait to see how this unfolds, but consumer confidence remains low and the property market is starting to see a slow-down in activity. Lending activities by the mortgage providers is reflective of the interest rate cycle and the deteriorating economic outlook.”
 
Goslett believes that Brexit will have no impact on property prices; however the market is currently in a transition period with momentum shifting towards the buyer. “This is more a result of domestic conditions, than any external foreign factors.  The shift will cause property prices to stagnant for the time being. However, that said, opportunities often reveal themselves in times of change. Those who can identify the changing dynamic early on will be able to reap the benefits and take advantage of what the market has to offer,” Goslett concludes.
 
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What an agent will know, that the internet won'tFri 24 Jun 2016

What an agent will know, that the internet won't
Statistically nine out of ten homebuyers will make use of the internet during their home search process. This is because technology has made the process far more streamlined and buyers are able to wade through masses of information with relative ease. According to Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa, online property search portals are an excellent place for homebuyers to start looking for a home, but there are certain aspects regarding the buying and selling process that a real estate professional will know that can’t be found online. 
Pricing a home according to the market
While it is possible to get a general idea of the property prices in an area, setting a fair market-related price requires in-depth, working knowledge of the area and current market conditions. A real estate professional will consider several factors when setting an asking price, such as local and national market trends, suburb demand, neighbourhood development activity and the latest buyer preferences, to name a few. Although there will be an average price per square metre in a certain area, each and every home is unique and will need to be priced accordingly based on its distinctive offering.
According to Goslett, another aspect that agents can assist with is comparison shopping. He adds that while a homebuyer may be able to compare certain elements online, there will be factors that an agent will be able to help with and provide some guidance. A consultation with a real estate agent can be an invaluable tool, as they will be able to point out elements and make suggestions about things that the buyer may have otherwise missed. “A professional, objective opinion will help the buyer to make the right investment decision,” advises Goslett.  
Offline marketing
Even though online marketing and social media have become an intricate and valuable part of the property marketing process, there is still a place for the more traditional marketing methods in today’s trading environment. A reputable, professional real estate agent will have a network of contacts, experience and market knowledge to successfully round out their marketing plan to ensure the property is exposed to the right target market.
“On the other side of the coin,” says Goslett, “buyers will benefit from using an agent because they will be able to tap into their network and find out about suitable properties before they are even listed online.” 
Key pointers during the process
Finding the right home is only one step in the process to becoming a homeowner.  Goslett says that it is possible for a buyer to find a home that they love while searching online, but what happens after that?  “An agent will be able to guide the buyer through the process of applying for a bond, dealing with conveyancing attorneys, finding a home inspector or providing advice on what to do should the inspector find any issues with the property,” says Goslett.
Negotiation
Real estate agents are skilled, experienced negotiators, which is valuable when trying to reach a fair price for a property that is either being bought or sold. While a website will be able to provide an estimate of how much a home should cost, it won’t be able to evaluate whether that is indeed a good deal or not. 
“An experienced real estate professional from a reputable brand will be able to provide the buyer and seller with a wealth of knowledge that they will not be able to get elsewhere. While there is a great deal of information online, there are still some things that require a more personal touch,” Goslett concludes.
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Things to think about when using moversMon 13 Jun 2016

Things to think about when using movers
Be it purchasing or renting a new home, everyone will experience moving at some stage of their lives. Packing up boxes and doing all the heavy lifting yourself can be a physically draining task, not to mention the stress of all. Deciding to make use of a professional moving service can eliminate a lot of the hassle and make the process much smoother, provided of course you choose the right company, says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa.  
“As with most services it is best to use a mover that has been referred to you by a trusted friend or family member. However, in the instance where there is no-one who can provide the contact details of a reputable moving service, there are aspects to consider that will assist you in making the right decision,” says Goslett. 
He provides a few points for those looking to use a professional mover to consider:
Search portals and public information
Most consumers will have access to a wealth of information via some kind of smart device. There is little that cannot be found on the internet with the majority of companies having an online presence. Most service providers will have a website where they list their services, service history, area they operate in, a rough estimate as to how much it will cost and contact details. From the information gathered, it will be possible to compile a list of possible choices. Is it best to be weary of companies that do not provide their address or information about licensing and insurance. 
Aside from general online search, social media networks are also a good source of information and testimonials. “Social media has given the consumer a voice and platform where information can be freely shared. While a website gives the organisation a chance to say what they want about themselves, social media has given their clients a chance to share their opinions about the organisation,” says Goslett.
Ask for a quote 
To be able to provide an accurate quote, the moving company will need to come to the house and get a clear understanding of the volume of boxes and furniture that will be transported. Goslett says it is very difficult for a mover to provide a precise quote over the phone – they should do an onsite inspection and provide a written quotation.
“Do not choose to work with a mover that wants a contract signed or deposit paid before they are willing to provide a quote – the quote should be free. 
Ask questions and get information upfront
It is important is get as much information as possible upfront. Ask the mover questions such as their hourly rate, how many people will be there to move your goods and if there are any additional costs such as fuel or packing materials.
Is the mover insured?
There is always an element of risk when goods are being transported, especially if the move is a far distance. Goslett says that the mover should be able to provide some kind of insurance during the move. “Generally a mover will not cover everything in its entirety, but they should be able to give a certain level of insurance or guarantee in case of breakage or items going missing. Taking photos of all pieces of furniture will help to prove liability on the part of the mover if any items are damaged in transit,” he advises.
In addition, it is also advisable to contact your insurance company before the move to check what they will cover during the transportation of the household goods. Goslett notes that homeowners should find out what is required in case of loss, as some insurance companies may need receipts, appraisals or photos of valuable items. 
Check the paperwork 
The mover should provide an inventory list of all the household contents that they will be transporting, along with the pickup address and the final destination of the goods. Goslett says that it is important to check the list to make sure it is correct and everything has been listed. Homeowners should also read any other fine print in the paperwork as well as any other documents provided by the mover. It is advisable to keep a copy of all documentation on file for later reference if required.
“Although moving can be a stressful exercise, with the right moving company, it can be a far less daunting task. Selecting a reliable service provider will ensure that the move is as smooth as possible, making it something that everyone can look forward to,” Goslett concludes.
 
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Are the housing market scales tipping?Fri 10 Jun 2016

Are the housing market scales tipping?
Is the market slowing or merely shifting into another phase? Recent property sales figures suggest that the market is currently in a transition phase with demand for property seeing a decrease during the first half of this year. According to Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa, while the market has favoured sellers for some time, the dynamics are changing and scales are tipping the scales in homebuyers’ favour.
He adds the property market follows a cyclical predictable pattern where there are periods of growth, following by a slowdown before recovering. Understanding the dynamics of the ebb and flow of the market will be a distinct advantage to buyers when looking to get their foot in the door.  
“For a while there has been high buyer demand and low levels of inventory available on the market. This situation has favoured sellers and driven the price of property up over the last few years. Although there is no shortage of buyers in the market, many have decided to sit out for the time being due to factors such as the possible downgrade, rising interest rates, the country’s political situation and inflated prices set by sellers in the current market,” says Goslett. “If demand for housing continues to wane, property inventory will increase and the market will become far more competitive among sellers. In a more buyer-slanted market, sellers will need to ensure that they price their homes correctly in order to sell faster than the neighbour they will be competing with.”
According to the FNB Property Barometer published on 3 June this year, while there is currently a good supply and demand balance in the property market, which resulted in positive house price growth in real terms, there are perceived signs of weakening. According to the report there has been an increase of residential supply on the market on a monthly basis. Although the number of properties on the market remains constrained, there has recently been a noticeable rise, with supply seeing positive growth for the last five months consecutively.  
“With more homes entering the market and the pool of potential buyers decreasing, sellers will have to ensure that their homes are priced correctly. Over-inflated prices will only serve to chase away buyers, with the property remaining on the market for longer than necessary. This especially true if there are other homes in the same area offering similar features, but at market related prices. The fact is that an asking price that is market related will appeal to a far larger range of buyers, than one that isn’t,” advices Goslett.
He adds that a property that is inflated by around 10% above its market related value is much less likely to sell within 30 days of it being on the market, compared to one that is priced within 5% of its market value.  The reason it is important to sell a home within a certain time frame is because potential buyers start to question why is hasn’t sold yet. “There is often a negative association with a property that has been on the market for longer than the average time, which can lead to it eventually selling for below its actual value,” says Goslett.
He notes that a reputable real estate agent with specific area knowledge is a good resource that sellers can use to determine what buyers have recently paid for properties within an area. “Estate agents will have records of how much properties with similar offering to the seller’s home have recently sold for in the last three to six months. While the asking price of the home is still ultimately the seller’s decision, an agent will be able to provide guidance in correctly pricing the home for the current market conditions,” says Goslett. 
He concludes by saying that working with a reputable, experienced real estate agent and making sure the asking price is correct from the outset, will ultimately make all the difference in achieving the seller’s goal in a challenging market.
 
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Ensure your home meets your future needsWed 08 Jun 2016

Ensure your home meets your future needs
Making the decision to purchase a property is very exciting, but it is important to understand that it is a major financial commitment that should not be entered into without the proper consideration, says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa.  He notes that given the long-term nature of a property investment, there are a number of essential elements that should be carefully measured beforehand, to ensure the buyer is making the right decision and is purchasing a property that meets their needs both now and in the future. 
“Purchasing a property is a decision that will have an impact on the buyer’s financial well-being both now and in the future. This is why it is vital that the buyer makes an informed decision that is based on their life plans, looking at both their criteria now and how their needs could evolve over the next five to ten years. Rushing into the decision without considering your long-term plans and goals could end up costing a lot more money in the long run. It is essential make a property buying decision with future plans in sight,” advises Goslett. 
Before a buyer even looks at properties, Goslett says that they should sit down and determine what features they will currently need in a home, as well as the feature they may require in the future. A few elements to consider would be the number of bedrooms and bathrooms, the need for a garden or the number or type of parking facilities.  There may also be special criteria such as energy-efficient features, a swimming pool and fireplace or wheel-chair accessibility. 
These are some examples of questions buyers might ask when looking for a home that will meet their future requirements:
• Do I need a home office?
• Do I plan to have children?
• Do I have children who will be moving out soon?
• Am I close to retirement?
• Will I need a home that can accommodate different life stages?
• Do I have an older relative who might come to live with me?
Each and every buyer will have their own unique criteria that will be specific to their life stage and future plans. If a buyer is at the stage in their life where they are planning to have children, proximity to good schools would be a priority, whereas a buyer who is nearing retirement would want a home in a quieter suburb. 
“The biggest restriction that buyers face when looking to purchase a home that will fit in with their future plans is affordability. Financial restrictions could mean that buyers will need to compromise on certain aspects, even if only for the time being. If a newly married couple who want to start a family need a third bedroom, but can only afford a two-bedroom home, they could find a home that they can add onto when they are financially ready. This way the home will meet their current needs, while having the potential to grow into their future plans,” says Goslett. 
He notes that regardless of the type of home the buyer decides on purchasing, sustainability is a key issue to homeownership. “Again due to the long term nature of homeownership, the most important aspect to any property purchase is to ensure that purchaser can afford and sustain the financial obligation before entering into the agreement. In order to assess this, the can make use of the resources available to them such as financial advisers, banks and bond origination companies such as BetterLife,” says Goslett. 
He adds that bond repayments are not the only financial consideration when it comes to affording a property, as there are other costs involved in both the property transaction and homeownership. It is vital to take these additional costs into consideration when assessing affordability as they can add up to a relatively large amount. 
According to Goslett, another essential aspect to consider in every property purchase is location. “Even if the property meets the buyer’s needs, if it is situated in a bad area it is probably not going to be the right property to purchase. Location is a key influencer when it comes to a home’s future investment potential. It is far better to compromise on the features of the home than on where it is located,” advises Goslett. “Buyers who purchase a property in the right location that meet both their short and long-term needs will be able to enjoy the benefits of an accommodating home that grows in value over time,” he concludes.
 
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Check the body corporate rulesTue 07 Jun 2016

Check the body corporate rules
Due to the lifestyle and security benefits they offer, sectional title units are a very popular choice among South Africa buyers, says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa. He adds that another drawcard to these types of properties is that they are often more affordable than freehold homes, making them the ideal purchase for first-time buyers.  
“There are several benefits to purchasing a sectional title unit such as the fact that they offer a more communal lifestyle and generally require less maintenance on the owner’s part. This type of property has proven to be a highly sought after since its introduction and often outsells other types of properties in many regions throughout the country.  Those who purchase sectional title homes can enjoy living in a secure, communal development, without having to pay premium prices,” says Goslett. 
He notes that another aspect that has attracted buyers to sectional title units is the fact that the costs of basic services such as water and electricity are shared. Goslett says that because the costs are shared, residents in sectional title homes will pay less for these services than their counterparts living in freehold homes. 
According to Goslett, another significant aspect that allures buyers to sectional title homes is the lower maintenance costs because of the fact that the owner only has to maintain their unit’s interior, while exterior maintenance is carried out by the complex’s body corporate. “Additionally, any levies paid by the owners should cover any upkeep and upgrades that the complex will require in the future. This will assist to ensure that the properties within the development appreciate in value over time,” says Goslett. 
There are many advantages that purchasing a sectional title unit affords the buyer, such as a secure yet reasonably-priced home purchasing option. However, challenges can arise and benefits dampened, if the homeowner is not fully aware of the rules and regulations stipulated by the body corporate before they purchase. “It is imperative that a buyer first obtain a copy of and carefully read through the rules that govern the scheme before they buy a sectional title home. This is because the body corporate rules specify what the current homeowners within the scheme deem as acceptable,” says Goslett.
He notes that the rules establish what homeowners are allowed to do or are prohibited from doing within the confines of the complex. They provide existing homeowners as well as new homeowners with guidelines and ground rules with regard to homeownership within the complex. 
“While rules stipulated by other homeowners may not seem too serious, the body corporate rules are actually registered with the deeds office to guarantee that they are enforceable. This is why it is vital that buyers fully understand all the rules that they are agreeing to by purchasing the property. If there is anything that the buyer is unclear of, they should contact the trustees to get a more detailed explanation,” advises Goslett. 
He notes that an issue that often comes up is around the body corporate rules regarding pet ownership. “It is generally best to get written permission from the trustees allowing your pets in the complex to avoid any backlash at a later stage,” advises Goslett.  
Another important aspect that sectional scheme buyers should pay attention to is the financial state of the scheme.  Goslett advises that potential homebuyers are within their rights to request to view the financial statements of the body corporate to ensure that the scheme is not running at a loss. “By looking at the financial statements a buyer can determine whether there is enough money to cover the operational costs of the complex, as well as any future expenses that could arise,” says Goslett. “Apart from the financial statements, the minutes of the last annual general meeting will also provide some insight regarding any proposed special levies or possible issues that the trustees have dealt with over the last year.”
Goslett advises that potential buyers also review the plans of the complex to ensure that all buildings on the premise have been approved by the required organisations and the municipality. He warns that the reason why this is important is because all current homeowners within the scheme will be liable for any cost incurred to correct the issue and re-register the scheme with the Deeds office. 
“There is little doubt that sectional title properties will remain a sought-after purchasing option among buyers both young and old. This is largely due to the numerous benefits that these types of homes offer. Those who opt to buy a sectional title unit, as with all property purchases, should take the time to do their research to ensure they are making an informed decision. Reading the body corporate rules of a complex is an ideal way for purchasers to know what they are buying before they sign an offer to purchase,” Goslett concludes.
 
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How do you know you are ready to buy?Mon 06 Jun 2016

How do you know you are ready to buy?
Buying a home is a milestone and step towards owning an asset that could impact the purchaser’s financial situation for the rest of their lives. While it is an incredibly exciting time, says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa, it is important that the buyer only takes the step towards homeownership when they are completely ready to do so. This is because owning a property requires desire, sustainability and a long term financial commitment. 
“Apart from finding the perfect home and dealing with the often complex process of a property sales transaction, there are a few other aspects that first-time homebuyers need to contend with, such as learning to become a responsible homeowner,” says Goslett. “Browsing through properties online or visiting a show house or two doesn’t necessarily mean that a person is ready for what being a homeowner entails. There are numerous factors that need to be considered from both a financial perspective and from an emotional standpoint beforehand the buyer makes the decision as to whether purchasing a home is right for them at that time.”
Goslett provides potential home buyers with a few pointers to mull over before making their final decision:
Are you planning on staying in one place for some time?
Considering that purchasing a property often requires a deposit, bond costs, attorney fees, insurance premiums and maintenance costs, it rarely makes financial sense to purchase a home for a short period. Goslett says that it normally takes between five and seven years before a homeowner will see any kind of financial return on their property investment, so buying only makes sense if the buyer is planning to stay in the house for at least that period. 
“Property should ideally be seen as a long-term investment, so a buyer should consider their future plans and where they see themselves over the next five to possibly ten years. These plans will depend on the buyer’s family circumstances and their employment situation. If the buyer is ready and able to settle in one place for a reasonably lengthy time frame, they may be ready to purchase a property,” says Goslett. 
Are finances in order?
While there are buyers who are able to purchase a property in cash, most of the general population will require a loan from a financial institution to buy a home. According to Goslett, a potential buyer’s bond approval is highly dependent on their ability to show the necessary levels of affordability.  “Before applying for a bond, buyers need to focus on minimising their expenses to create as much expendable income as possible. It is also not advisable to take on any other big ticket debt, such as a new car repayment. This will have a negative impact on the buyer’s ability to obtain the finance,” says Goslett.
He adds that obtaining pre-approval through a bond originator such as BetterLife is a great way for prospective buyers to gauge how ready they are financially to own a property, as well as what they may need to do to get there. 
Is the saving in place?
It is impossible to separate homeowner readiness and saving. Apart from the fact that most homeowners will be required to put down a deposit of around 20% the purchase price of the property, there are the maintenance costs, a contingency fund and of course, moving expenses.
“Transitioning from a tenant to a homeowner means taking on the full responsibility for the property. If anything in the home requires repairs or maintenance, the buck stops with the owner. For this reason, it is a good idea to be financially prepared by having a contingency fund in place to be able to deal with any repairs as and when required,” says Goslett.
Is the timing right?
Timing is a vital element to homeowner readiness. The best case scenario would be for the buyer to be ready to buy, but also be able to wait if required. If a buyer is currently renting, they don’t want to be stuck with another six months on their lease and lose out on their right home, but they also don’t want rush with only a month to find a home. 
“Buying a home is a big decision - it is never good to rush into it without giving it the necessary consideration. That said, it is also not ideal to hold back too long and let an opportunity pass by because of not being prepared,” advises Goslett.
Be realistic
One sign that shows you are ready to own a home is understanding that it is not always going to be easy. In reality being a homeowner takes time, effort and of course money. “However,” says Goslett, “even though there are likely to be a few challenges that homeowners face along the way, the end result is a home that they can call their own,” he concludes.
 
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Grow with UsTue 31 May 2016

Grow with Us

When you become a RE/MAX estate agent, you’re joining a family that’s been together for more than 43 years. Over the years, we’ve established ourselves as industry leaders in property sales to be regarded as one of the best agencies in the world.

Associate with the Best

When you become one of our real estate agents, your name immediately becomes synonymous with excellence, meaning you can easily earn more money and expand your skill set.

How do we help you do this? By offering you the opportunity to grow and learn through:

·         Exposure to excellence - We employ exemplary agents at all of our branches, so you can learn from them and their experience while you’re on the job. Many of our agents have taken advantage of the education opportunities provided by RE/MAX, so they really do have the edge when it comes to selling houses.

·         Global Learning Centre - By using this online portal to your advantage, you can study a range of topics to expand your real estate knowledge. Courses are frequently updated and are reliable sources of information that you can access anytime and from anywhere – all you need is an internet connection.

One of Us

Partnering with us as an estate agent means more than just education opportunities. We also provide our agents with over 4000 leads daily, so you don’t have to worry about being short on work. And with branches in more than 90 countries across the globe, there is employment potential on an international scale.  

Contact your nearest RE/MAX branch to find out more about becoming an estate agent.

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Fostering Growth Tue 31 May 2016

Fostering Growth

There is a wealth of benefits to starting a RE/MAX franchise in South Africa. Aside from joining what’s more like a family than a business, you’re set up for astronomical growth while reaping the rewards of the established RE/MAX brand.   

Empowering You

We want you to take yourself and your franchise to new heights, and we will do all we can to help you make it a success. We believe in opening doors for our estate agents and franchise owners, all in the pursuit of helping you achieve your dreams.

Some of the ways RE/MAX inspires growth in our franchisees include:

  • Daily leads - We use a revolutionary lead generation system to provide your agents with high-quality sales opportunities. With more than 4000 leads coming your way every day, it’s hard not to turn them into profits.
  • Multi-platform marketing - We help spread the word of your business so you don’t have to. We advertise across multiple mediums, including television, radio and digital spaces, so our message reaches a huge audience. This means that, by default, your RE/MAX franchise is advertised without costing you a cent.

Join Our Family

When you partner with RE/MAX by starting a franchise in South Africa or by becoming an estate agent, we’ll take care of you. You’ll be joining the ranks of a company that’s worked for over 40 years to build and maintain a solid and positive reputation, ensuring your name becomes synonymous with success.

Contact your nearest RE/MAX branch today to find out more about starting your own franchise. 

 

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Making the most of your property purchaseMon 30 May 2016

Making the most of your property purchase
While all property purchases have their merits, they are not all equal. In order for a buyer to make the most out of their property purchase, they need to make the right buying decisions from the start to ensure they give themselves the best possible opportunity at a good return on their investment, says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa.
“Although recognising and purchasing a home at a fair market value is a good start, it is not the only thing that will guarantee long term appreciation on the buyer’s investment. Buyers will need to apply certain principles and guidelines for property acquisition that would improve their potential for investment growth in the future,” says Goslett. “Sound property buying fundamentals never go out of fashion. These include key aspects such as the property’s location, the value per square metre and the potential rental yield - these will always be the key criteria on which a savvy investor makes a decision.”
Goslett provides a few elements for buyers to consider when entering the property market:
Research and ask questions 
Before anything else buyers need to determine why they are purchasing the property. “Ask yourself whether the property is purely to live in or whether it is an investment property, as this will completely change the approach and how the property will be viewed,” says Goslett. “If the property will be for the purchaser to live in, the motives and influencing factors on the decision making process are more emotionally driven. The elements that will be important are the features and amenities that appeal to the buyer personally. In the instance where the property is bought for investment purposes, it is more important to research the demographic of tenants in the area and what would appeal to them.”
A buyer will be able to get a wealth of information online about an area, estate or complex. “That said, it is always best to go to the area and check it out personally. Drive around, walk the streets and speak to some of the residents currently living there. This will provide a good idea of what the area is like, the facilities and amenities on offer and the demographic of people the area would most appeal to. A real estate agent who specialises in the area will also be able to provide a comparative market analysis detailing the selling prices of homes there over the last six months,” says Goslett.
Subtle variances can make a big impact
Although two properties can be located in the same region, they could differ in price based on the suburb they are in or even which side of the road they are on. Subtle variances in a home’s location can make a big difference to its potential for appreciation. For this reason it is best to purchase the worst house in the best location, then the best house in the worst location – the home can be changed, the location cannot. Goslett says that a property’s selling price is linked to the demand in that area in which it is situated, so homes within sought-after areas will generally increase in value faster than homes in less appealing areas.  
“Buyers who purchase an investment property with the intention of renting it out, need to consider that certain things appeal to some people and not others, so discovering their target market is essential. Investment buyers should also look at how much rental stock is available in an area before purchasing a buy-to-let property. The rental market sector is driven by demand, and an investment could fall flat if there is an oversupply of properties available for rent in the area,” advises Goslett.
Have a plan in place
Property buyers and investors need to have a plan. Investors need to have a clear idea of what they want their portfolio to look like in the long term, and buyers need to know if the home they purchase will meet their needs in five to ten years’ time. “Having a plan and setting gaols will assist buyer and investors to remain focused and will give them something to work towards. Buyers should never limit their thinking to what they can afford right now, but rather what will be possible for them in the future,” says Goslett. 
Get rid of debt
A key element to any property transaction is access to finance and affordability. While there are certain buyers who are able to purchase properties with cash, the large majority of the population rely on bond finance from a bank. To improve their chances of bond approval and to increase their affordability ratio, buyers should try to reduce their debt levels where possible and keep their credit rating as high as possible. Having a deposit is also a must for those looking to purchase property. A deposit will increase a buyer’s chances of bond approval and reduce their monthly repayment.
More than bricks and mortar 
While the potential to make a profit on a property purchase is often a driving factor in property buying decisions, it should not be the only factor that is considered. A property is more than just a pile of bricks and mortar - it is a home and place where people live. Goslett points out that the basic principle of purchasing a property is that if you wouldn’t want to live in it, it’s not likely many others would either. The property needs to appeal to the buyer and they have to want to own it.
“A property that offers excellent returns over time is not just about luck and timing, it is much more than that. The most important aspect is to take time and research as much as possible. It is never a good idea to buy a property on a whim without carefully weighing up each option,” Goslett concludes.
 
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Stay in the rental market or buy?Wed 25 May 2016

Stay in the rental market or buy?
With 2016 touted as a financially challenging year, many buyers may be hesitant to take the step towards homeownership and are quite content to stay within the rental market for the time being, says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa.
 
“There will be consumers who will remain within the rental market because they are worried about the country’s economy and how the factors surrounding the market will impact their financial wellbeing. There will also be those that simply enjoy the freedom of being able to stay in different areas without having to sell a property to relocate. Another group of consumers will stay in the rental market because they financially cannot afford to buy a property that offers them the same features as their rental property,” says Goslett. “Many consumers are eager to buy property, but don’t have the affordability levels or savings to get their foot in the door. With the increased cost of living and interest rate hikes that consumers have endured over the last while, many prospective buyers have been forced to stay within the rental market until their financial situation improves.”
 
According to statistics from bond originator BetterLife, the average deposit requirement by banks for first-time buyers this year is around 17% of the purchase price of the property. Given the fact that the average purchase price of a home bought by a first-time buyer is around R850 000, consumers have to save between R110 000 and R180 000 just for a deposit, not to mention the other costs associated with buying a home. “With so many South African’s struggling with personal debt, it can make it extremely difficult to save up the required deposit and costs required for a property transaction. Those who wish to improve their chances of getting into the market will need to try and reduce their debt-to-income ratio and start putting money aside as soon as possible,” says Goslett.  
He notes that while the bond approval rate is up to around 74%, there are still large numbers of consumers who are unable to meet bond approval requirements. “The constraints placed on consumers by the increased cost of living will see to it that the rental market continues to thrive.  However, if the interest rate continues to increase it will have a knock-on effect on the price of rentals as investors will have to pay more for any credit they may have,” says Goslett. 
Due to the fact that property should be viewed as a long-term investment, some consumers may find it a more viable option to stay within the rental market until they are settled and ready to commit to a particular home and area for the next five to ten years. According to Goslett, if a consumer is undecided about where it is that they would ultimately like to live or want the freedom to be able to relocate to another city unencumbered by the responsibility of homeownership, it is best that they continue to rent.
He adds that on the flipside, an advantage of buying a property is that it is a kind of forced saving, in that the homeowner is placing money into an asset they can sell at a later stage. “According to Reserve Bank figures South Africa has one of the lowest savings rates in the world and it is getting worse. Purchasing a home is a way for consumers to put money aside for the golden years. Selling the property once it has been paid off and downscaling will no doubt offer welcomed financial relief when it is needed most. South Africans that have rented for their entire lives will have no asset to sell. Ideally, if a consumer decides that they are going to purchase a home, it is best to get into the market as soon as possible. The sooner they do, the sooner they will have a paid off asset to work with,” says Goslett.
Irrespective of whether a consumer continues to stay in the rental market or decides to rather purchase a home, there are advantages and disadvantages to both options.  Each consumer needs to evaluate their circumstances and make the best decision that meets their personal needs. “Renting offers the tenant a certain amount of flexibility before they make a long-term commitment, while buying a home can provide the owner with an asset to their name that will certainly show good returns in time to come,” Goslett concludes.
 
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The right information will assist the agentMon 23 May 2016

The right information will assist the agent
An open communication channel is imperative to the relationship between a prospective homebuyer and the real estate professional they choose to work with, says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa.  He notes that in order for an agent to fully understand what the buyer wants, the buyer needs to feel comfortable that they can divulge information to the agent - openly and honestly.  
“The more information a buyer is prepared to give their agent, the better their chances are of finding the right home which meets all their needs. However, there is often rather sensitive information that is entrusted to an agent, such as how much a buyer can afford, so it is important that the agent is reputable and trustworthy. If a buyer works with an agent they trust and are comfortable to freely share information with, the process will be far easier and quicker,” says Goslett. “With the information that the buyer provides the agent, they will quickly be able to narrow down the search and pinpoint the perfect property.”
In some cases buyers are reluctant to provide the agent with information regarding their financial situation because they want to get a bargain price on a property. Goslett says that in instances such as this, buyers will tell the agent they can only afford to buy a home at a much lower price than what they actually can. According to Goslett, there are two reasons why buyers choose to do this, the first being that they are looking to test the market and see what is available to them at this price range. The second is because they haven’t reached the point where they trust the agent and see them as an ally looking out for their best interest. “Knowing that agents work on a commission basis can lead to buyers thinking that the agent is only showing them properties within the upper range of what they can afford to secure a higher pay cheque out of the deal. If the buyer is working with a reputable agent from a respected agency, they can rest assured that the agent will have both the buyer and the seller’s interest at heart,” says Goslett. 
He adds that a good agent will understand that the real estate business is about building and maintaining relationships, not earning a commission from selling brick and mortar. “A good agent will be focused on securing a client for life, rather than just the commission from one transaction.  It is in their best interest to do the best possible job and find the right fit for both the buyer and seller, ensuring that the transaction meets everyone’s criteria. The more information an agent has, the faster the buyer can get in and make an offer on the right property,” says Goslett.
According to Goslett, buyers who approach the process of purchasing a property in an upfront manner by disclosing all their criteria and exactly what they are willing pay to ensure that all their needs are met, walk away far more satisfied than those who don’t provide the agent with all the relevant details.
Apart from their financial information, it is also important for buyers to have a clear idea as to what features and elements they are looking for in a home. “Before approaching an agent, prospective buyers should sit down and make a list of their must haves, as well as the things they would like, but could compromise on. Once a buyer knows exactly what it is that they want, it is far easier for them to communicate this to their agent and give them a clear picture of the type of property they require. This will make house hunting a far easier process,” says Goslett.  
For a successful business relationship, the agent and the buyer need to be on the same page. The only way this can happen is through open communication. “Fully understanding each other is essential so that an agent can determine exactly what it is that the buyer is looking for. Communication plays a vital role in successfully finding the perfect home for the buyer,” Goslett concludes.
 
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Rates remain where they are for nowFri 20 May 2016

Rates remain where they are for now
Despite growing inflationary pressure, the South African Reserve Bank has decided to keep the interest rates at their current levels to provide some financial relief to consumers during this hiking cycle. The benchmark repo rate will remain at 7% and the prime interest rate will stay at 10.5%. 
Regional Director and CEO of RE/MAX of Southern Africa, Adrian Goslett, says this is welcomed news considering that a rate hike at this stage could be detrimental to many consumers, who are already dealing with increasing food prices, rising electricity tariffs and petrol price hikes. “It is one thing dealing with one or two increases; however households have been subjected to several pricing hikes across the board, creating a compounding negative impact on their financial wellbeing,” says Goslett. “For a number of consumers a rate hike at this stage could be more than they could bear. In fact, we are already seeing an increase in the number of distressed properties entering the market this year. Further rate hikes will lead to more and more homeowners having to let go of their properties throughout the course of the year.”
He adds that while economists are predicting that inflation could reach around 8% by the end of the year, previous rate hikes have done little to curb inflationary pressure at this stage and economic growth is marginal at best. “Higher rates would only serve to further slow economic growth as most consumers are loan dependent to some degree. As the cost of credit increases, fewer consumers will be able to afford high-ticket items such as property and cars,” says Goslett. 
During the next month all eyes will be on the possible threat of a credit rating downgrade to sub-investment status.  If this happens, it will make South Africa a less attractive investment option, which will likely result in a depreciation of the rand. This means that imported goods such as oil and the food the country has to import due to the drought, will be more expensive. This would push inflation up, causing the SARB to once again hike rates. 
Consumers need to use this breather constructively and pay down debt where possible. “Prospective homebuyers and homeowners alike should draw up a budget to assist them in dealing with the challenging economic environment they find themselves in.  Consumers will be in for hard times ahead, if they don’t streamline their spending and build up their cash reserves,” Goslett concludes.
 
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Effects of higher interest rates on the marketThu 12 May 2016

Effects of higher interest rates on the market
This month marks the third Monetary Policy Committee meeting, where the Reserve Bank will decide whether the prime lending rate will be hiked or remain at its current level of 10.50%. Given the fact that inflation is on the rise and has once again breached the top end of the target band, and the continued weakening of the currency, the Reserve Bank will be under pressure to raise the interest rates despite the low economic growth.
Regional Director and CEO of RE/MAX of Southern Africa, Adrian Goslett, says that with inflation expected to reach around 8% towards the end of the year, the Reserve Bank will be hard pressed not to push rates up, even though previous hikes have not done anything to curb inflation . He notes that another rate increase at this point amid petrol price hikes, rising food prices and electricity tariff increases, would only heap burning coals onto consumers heads. “With the compounding effect of the ever increasing cost of living, even a marginal increase in rates could be the proverbial ‘straw that broke the camel’s back’ for numerous consumers. Many households are already struggling to make ends meet, so further hikes will be a tough pill to swallow,” says Goslett. 
He notes that as the majority of prospective homebuyers are reliant on loans to purchase property, increases in the rates are likely to slow the market to some degree.  “Credit will cost consumers more and they will be paying higher repayments on their bonds. Essentially buyers will be paying more and getting the same, or in some cases less. Rate increases will impact affordability levels so potential buyers may be forced to compromise on certain homes features. Those who are not prepared to compromise will have stay within the rental market until they can afford the home they want. Bearing in mind those rentals will also likely increase in order for landlords to meet their growing financial constraints,” says Goslett. 
He adds that banks place a lot of emphasis on affordability ratios during the bond application process. An increasing interest rate makes it more and more difficult for aspirant homebuyers to show the necessary levels of available finances for bond approval. However, the interest rate is not the only element that will have a bearing on the buyer’s potential to afford a bond. The buyer’s personal finances will play a far greater role in determining how much the buyer will be able to repay on bond instalments. A rise in the interest rate will have less of an effect on the buyer’s affordability ratio than high levels of personal debt. 
“Prospective homebuyers and homeowners alike should draw up a budget to assist them in dealing with the challenging economic environment they find themselves in.  Consumers will be in for hard times ahead, if they don’t streamline their spending and build up their cash reserves,” Goslett concludes.
 
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Canada's largest Keller Williams office convertsWed 11 May 2016

Canada's largest Keller Williams office converts
Success means something different to everyone. However, no matter what it means for you, we can all agree that success is a direct result of growth. It is hard to imagine that RE/MAX INTEGRA, Ontario-Atlantic region, Canada, is still focused on growing considering they account for a third of the greater RE/MAX organization, but that is exactly what they are doing having recently converted Canada’s largest Keller Williams office. 
On April 27th, the RE/MAX INTEGRA regional staff along with Jeff and Margie Hooper, owners of the former Keller Williams Ottawa Realty, made the announcement that they would be merging their business with Ken McLachlan, Debra Bain and Steve Tabrizi of RE/MAX Hallmark Realty Ltd. Amongst the two offices, which have since converted and are located in Orleans and Central Ottawa, Ontario, Jeff and Margie grew their business to be the largest Keller Williams office in Canada, consisting of nearly 300 agents.
This was a big decision, but according to Margie Hooper, it was the power of the RE/MAX brand that drew the leadership team to make a change. “Being part of the RE/MAX INTEGRA network means our agents not only get to leverage a brand that is present in over 95 countries worldwide, it means they have access to some of the best resources in the industry,” says Hooper.  “With RE/MAX Launchpad and the RE/MAX Launchpad Productivity Suite that lives within it, agents are provided with industry leading tools they can access easily with a single sign-on. From there, our world class training team provides the training and support needed to successfully leverage the tools in day to day business. At RE/MAX INTEGRA, we provide agents with the resources they need to build and grow a successful business, and the growth we are seeing will continue to propel us into a global marketplace.”
RE/MAX INTEGRA are excited to welcome their fellow colleagues just north of the border, Jeff and Margie Hooper, along with their new sales associates, into an environment where their knowledge and expertise will be leveraged. This is an exciting time for RE/MAX INTEGRA, as well as the newly formed brokerage RE/MAX Hallmark Realty Group, and we look forward to sharing more stories about the growth within our network.
 
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Avoid these real estate investment mistakesWed 11 May 2016

Avoid these real estate investment mistakes
Investing in property is much like running any other business, in that it requires research, conscientiousness and an acute attention to detail. As with owning a business, a property investor needs to capitalize on opportunities in the market and more importantly minimize their potential for making costly mistakes. Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa, says that there are certain mistakes that property investors could make that would be more detrimental than others, so it is important to understand what they are and how to stay clear. 
“When it comes to property investment it is far better to learn from other’s mistakes, then make them yourself. An incorrect investment decision could potentially be devastating, affecting the investor’s financial well-being both now and in the future. Those who are new to the real estate investment landscape should learn from savvy, seasoned investors and avoid possibly dangerous business mistakes,” says Goslett. 
He provides a few mistakes that property investors should watch out for:
Not seeing people as an asset
While property is the commodity that real estate investors use as a means to supplement their income, it is certainly not the only asset that investors have in their arsenal. There are few things that are worth more than the people the property investor chooses to work with. While an investor may buy and sell many different properties over the span of their real estate investment career, the best investors will have the foresight to understand that their network and relationships with the right people can net them more profits than any one property deal. 
“Property investment is not just about bricks and mortar, it is a people business. It is important not to focus only on the bottom line and neglect the people that made the deal possible. Building and nurturing the right relationships is one of the key elements to real estate investment success. A good rapport with people can propel any business to the next level.  It is vital to work with property professionals who are reputable, experienced and well-connected,” advises Goslett. 
No plan B
There are several aspects that need to come together to ensure a successful real estate investment. An experienced investor will be aware of this and have a system in place to ensure that as little as possible is left to chance. However, even with what would seem like a fool-proof-plan, there could always be unexpected elements that will be need to be accounted for.  “In reality not all plans will go as expected. In fact, it is important that investors have a backup plan to cover themselves in the eventuality that their original plan fails. It is never good to assume that all will fall into place without complications. Those who have more than one plan to rely on will have a higher inclination towards success. Never be content with having everything riding on one method or system,” says Goslett.
Growing the portfolio too quickly
Every profitable property that an investor owns will add to their bottom line and increase their ability to expand their portfolio. However it is important know when to expand and when to hold back and maintain. 
“While expansion is good, growing too quickly can run the investor at the risk of expanding beyond their means. This will essentially set the investor back, rather than propelling them forward. A property investor should continuously be aware of the market and take cautious steps when looking at expanding their portfolio. An interest hike for example, has financial implications on a homeowner who owns a primary residence, how much greater will the impact be on an investor with several properties in their stable? It is vital that investors understand their capacity for growth as well as their limitations,” says Goslett. 
“Growing and managing a successful investment portfolio requires merging the right plans, the right people and latest the technology.  Investors need to work with people who can contribute to their growth, implement plans that can repeat successful results and utilize technology that will maximize their efficiency,” he concludes.
 
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