Property World

TIPS FOR GIVING YOUR ADULT CHILDREN A HAND IN PURCHASING A FIRST PROPERTY

PARENTS considering helping their children to get a foot on to the property ladder have no better time than to do it now.

Here are a couple of ways to aid them, says Carl Coetzee, chief executive of BetterBond:

• Buy together: You can buy a property with your children. Pooling funds in this way could help secure a bigger bond or better property and is certainly a more cost-effective way for first-home buyers to get into property.

If you decide to buy a property as a co-owner with your children, but you don’t want to be tied to monthly bond payments, you could cover your share by taking out a second bond on your own home or release funds by downsizing and buying a smaller home.

However, he adds: “Using profit you’ve made from your house sale in this way should only be done if you have sufficient pension funds in place.”

• Help them save: If your young adult children are working, but still living at home, it’s a good idea to charge them rent, and put a portion of it aside in an interest-bearing account in your name, to give them towards a deposit when they’re ready to become first-time homeowners.

Older homeowners can help their adult children buy property by taking out a second bond or downsizing.

IF IN TROUBLE, APPROACH YOUR BANK BEFORE YOUR BANK APPROACHES YOU

HOMEOWNERS unable to pay their bonds should not wait for their mortgage holder to take legal action before doing something about the situation, says Bruce Swain, chief executive of Leapfrog Property Group.

It is understandable that owners will often be overwhelmed by anxiety and simply hope they will find a way out, eventually. But they need to face the issue head-on in order to minimise the damage, he says.

“We’re probably only really starting to see the impact of Covid-19 on personal finances now and, sadly, this is reflecting in the number of distressed properties clients are approaching us with.”

He advises homeowners in this situation to immediately contact their bank and, if they want to sell, a trusted property adviser.

“Do this as soon as you miss a payment or, better yet, as soon as you realise you’re going to miss your next payment.”

Swain adds: “In most instances, the bank wants to find a workable solution for recovering the loan and might even consider extending the loan period. Banks may even be prepared to re-finance the debt that remains after the sale of the property, over an extended period of time, without blacklisting you.”

Avoid the anxiety of home loan repayment struggles by contacting your bank as soon as possible.

MILLENNIALS GO THEIR OWN WAY

GLOBALLY, millennials have overtaken baby-boomers as the largest property buying demographic and their needs are very different from their predecessors –including what they expect from estate agents.

New-age real estate agents are revolutionising the profession.

In the real estate industry, the new guard is beginning to make their distinctive mark by doing things differently, says Yael Geffen, chief executive of Lew Geffen Sotheby’s International Realty.

“They are extremely brand savvy – not only do they recognise the value of establishing their own personal brands, they know that the best way to do so is to align themselves with established and successful, large real estate brands.

“They also continually engage with clients and potential clients. They don’t just use social media to advertise properties for sale, they cultivate a strong following by making and posting their own videos which share as much about them as people and professionals as it does about real estate. ”

However, Geffen believes the most important quality is authenticity.

“Authenticity is a critical key to success but it has to be genuine... Self-awareness and transparency take considerable self-reflection and the conviction and courage to strive to do the right thing are not always easy but it’s well worth the effort as you’ll not only reap professional rewards, but personal ones too. ”

Being a good tenant can pay off

Taking care of small repairs and maintenance could put you in good standing with your landlord.

TENANTS might be in a strong position to negotiate a low – or even no – rent increase with their landlords, given the difficult state of the rental market,but their conduct as tenants will have the biggest influence over their chances.

Those who hope to position themselves well for rental negotiations, should consider these recommendations provided by Grant Rea, rental specialist at Re/Max Living:

• Always pay your rent on time and in full. This might mean consistently paying one day before the rent is due. Ensure all utilities are paid promptly.

• Keep the agent/landlord informed of any necessary maintenance issues and be flexible with access for repairs.

• Be reasonable and understand that the agent or landlord cannot be obliged to attend to any and every small maintenance item. Sometimes fixing it yourself will aid your cause when negotiating a lower increase.

• Keep the property neat, clean, and presentable.

• Keep a record of items you have attended to or improved within the property. Remind the agent or landlord of these without trying to coerce a lower increase.