Real Estate Investor Magazine South Africa April/ May 2020 | Page 38

IMPROVING
Attracting buyers
& tenants
Make your home 2020 Friendly
ADRIAN GOSLETT
A
ccording to the Regional Director and CEO of RE/
MAX of Southern Africa Adrian Golsett, over this
period homeowners should listen to the suggestions
of reliable real estate advisors who know what features are
winning buyers and tenants over within their given suburb. income and will need to be declared to SARS within that tax
year. The rental income you receive should be added to any
other income you may have, but will also be reduced by certain
permissible expenses incurred including rates, bond interest,
and property levies.
He says “Real estate professionals also know what
homeowners are up against within a particular area and price
range. This information can prove invaluable when it comes to
the marketing of a property to generate extra income.” However, Goslett explains that with short-term rentals,
homeowners can only deduct these expenses in proportion to
the amount of days the property was rented out, which can in
some cases lead to a homeowner paying more in tax for the
year than what the short-term rental amount earned him/her
in profit.
As much as the current market largely favours buyers and
tenants, Goslett suggests that certain realities could be used to
the advantage of sellers and landlords.
“For example, by installing eco-friendly alternative energy
sources to their homes, homeowners can choose to turn
the ongoing crisis around our national power supply into an
opportunity to add value to their home,” He says.
Each suburb, however, might have slightly different
drawcards for buyers and tenants. For example, in Cape Town
CBD “the big draw cards include a garage or secure parking,
as well as a well-maintained or newly renovated kitchen and
bathroom,” explains the Broker/Owner of RE/MAX Living, Susan
Watts.
“For sectional title units in our area, pet-friendly properties
are a big plus for many buyers these days. For freehold
properties, a state-of-the-art security system and low-
maintenance features seem to win buyers over,” she explains.
Similarly, Broker/Owner of RE/MAX Property Associates
,Caron Leslie explains that security features and smaller
gardens are popular options in the Northern suburbs of Cape
Town.
“Homes with modern finishes, upgraded bathrooms and
kitchens, as well as wooden or tiled flooring also seem to be
favourable among buyers in our area. The safest and most
affordable renovation option for homeowners who are hoping
to attract buyers or tenants in our area is to update their home
with modern finishes,” Leslie suggests.
In the last few months, it was noticed that an increase in the
demand for homes with garden cottages or flatlets.
Whether selling or renting, owning a home can be a great opportunity
to generate income, particularly in these tough economic times. Many
homeowners are turning to their largest asset, their homes, in search of
extra income to get them through the month.
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APRIL/MAY 2020 SA Real Estate Investor Magazine
“This is mainly because extended families are buying
together to have a more affordable living arrangement. If there
is an additional rental income from a flatlet, it makes a property
more appealing to buyers even if they were not initially looking
for it,” says Broker/Manager of RE/MAX All Stars, Nadia Aucamp.
For homeowners who are considering renting out part
of their home on a short-term basis in order to generate a
little extra income, Goslett cautions them to factor in the
tax calculations. “Short-term letting is still classified as rental
If selling or renting is not an option, then homeowners can
look at cutting back on certain household expenses to make
their money stretch a little further.
“While insurance is a necessity for homeowners, it does
not have to be a financially draining burden. Shop around
and see what options are available from the various insurance
providers. Competition in the market forces insurance
companies to launch new products regularly and consistently
try to find ways to undercut their competitors. So, while your
policy might have been the most competitive when you first
shopped around, it might no longer be the best policy a year
later,” he advises.
Another trick homeowners could try is to request that their
bank reduce the interest rate on their home loan. However,
only a few banks would be willing to provide this service
and will only grant it provided that the debtor has shown an
impeccable payment record.
“It is a bit of a long shot but, if you are successful, you stand
the chance to save thousands. You would need to submit a
formal request to your bank stating how well you have kept up
with your payments and requesting that they re-evaluate the
interest rate based on the fact that you’ve proven to be a low-
risk client. If this does not work, it might be worth exploring
which rates you could receive at other financial institutions
to use as leverage for your negotiations. Unfortunately,
originators such as BetterBond do not assist with switching
home loans, so you would have to do this research yourself.”
If cutting back on household expenses is not enough for
homeowners who are struggling to make ends meet, then
meeting with a reliable real estate professional might prove
helpful. “Equipped with the knowledge of the market and the
know-how of operating in the industry, real estate professionals
can help homeowners identify a home’s potential to generate
income and can advise on the best option to follow in order to
turn this potential into reality,” Goslett concludes.
For more real estate advice, or to arrange a meeting
with a real estate professional, visit the world’s largest real
estate brand at www.remax.co.za.
SA Real Estate Investor Magazine APRIL/MAY 2020
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