Harcourts News

South Africa's Finance Minister Tito Mboweni delivered his maiden budget yesterday. It was expected to be a tough budget by many pundits and it certainly delivered on that sentiment. We know that in order for South Africa to achieve positive economic growth Government is going to have to be tougher on state-owned enterprises. This was a central theme for the Minster and he was very clear about the effect these SOE's have on our economy.

What was reassuring was the Minister's clear focus on rebuilding a stagnating economy.  "It is all of our duty to tend the seed and see that it grows strong, tall and fruitful. It is a budget for the future,” he explained.

The past few months consumers have experienced serious financial pressures as costs continue to rise and bleak economic trends affect the activity in most major sectors. Property was one of those markets that certainly felt the knock-on effects.

The budget, although far more balanced and focused on renewal and growth, it was disappointing that no pressures were relieved on consumers in the property market. The property market is incredibly susceptible to the message and plans in the Budget and how they are instituted.

As predicted VAT remained unchanged at 15% and there was no an increase in personal and corporate income tax. However, the Minister revealed that there would be an increase in fuel levies. Petrol: 29c per litre and Diesel: 30c per litre. In addition, it is expected that real GDP growth in 2019 will rise to 1.5% and then strengthen to 2.1% in 2021.

If we can see the Minster and the Department stand strong on its desire to clamp down on SOE lending as well as aim to reduce pressure on the consumer, the economy will undoubtedly start to gain ground and we will be able to restore both consumer and investor confidence which in turn translates into increased economic activity.

Statement by
Richard Gray
Harcourts Africa Chief Executive Officer

Whether it is a buyers or seller's market accurate valuation and pricing of your home is imperative if you aim to have a successful transaction. Realistic pricing is relevant to accurate market value and often buyers will compare your home to the properties in the area so they can gauge an insight into the true market value.

Market fluctuations and economic pressures undoubtedly influence the price of property and we've seen some homeowners having to drop expected prices due to the external economic factors affecting the market from a holistic perspective.

Therefore, If your property is over-valuated it not only wastes valuable marketing time but it can very often gain a stigma that negatively affects the perception of the home going forward. In the end, you may end up getting far less for your property than could have been initially obtained. No matter how well your property is marketed, if the price isn't right, it won't sell.

When a property is accurately valuated and the agent commences marketing of the listing this creates immediate demand. The first 6 to 12 weeks are the most important when marketing a property.

The first step is to contact an agent with an extensive target market presence. Browse digital property platforms, forums, portals as well as published newspapers and magazines to best see which agents have a true understanding and footprint in the region you wish to sell. Then, similarly, use that research time to assess where your property's value is located in the market and try and scale it correctly. Not just comparing the size and location but added features also.

Agents use many accurate tools that take an array of factors into account when valuating your home. Pair this data with expert insights into the current climate of the market and trends of buyers and sellers and an agent is able to present your property to a diverse network exposing it to the right buyers.

Although South Africa's economy has been under pressure in recent years with rising costs placing consumers in a price pinch, compounded by volatile market fluctuations causing unpredictable cyclical trends - Harcourts South Africa experienced unprecedented growth over this same period. Sales have grown 115% in the past five years, the amount of agents have doubled and 2017 was Harcourts' most successful year on record.

Buyers and sellers of property are constantly bombarded with a plethora of information and advice on when the right time is to buy, what economic factors to consider and other insights that often leave them confused. It is here where the onus of guidance and ethics for a real estate agent play a crucial role.  

Searching the internet has become the norm for consumers looking for homes to rent, with classifieds websites recording huge traffic increases in this category over the past few years.

One of the major attractions to investing in property is your capital growth, in addition to your ongoing rental income.  For that to be true, you need to ensure that your property is well maintained and cared for.  A bad tenant can do significant damage that you may have to repair, eroding much of your capital growth.

When times get tough in the real estate market, home sellers really need to know what prospective homebuyers can afford, so they can set their asking prices accordingly.

Most homeowners know by now that they must have a valid Electrical Compliance Certificate (ECC)  if they want to sell, because their property can’t be transferred to a new owner without one.

What they may not know, however, is that they are actually required to have an ECC at all times – and required to get a new one every two years, or whenever any alterations or additions are made to the electrical system on their property – whether or not they are planning to sell.