Real Estate Investor Magazine South Africa July 2016 | Page 9

PROPERTY ADVICE LEASE NEGOTIATIONS Q I MICHAEL BAUER PROPERTY SPECIALIST My tenants lease expired and as per the original contract he has the option to renew for a further year, with a negotiated increase. He has said that he would be renewing but then decided to cancel after a couple of months. What can I do? t depends on the renewal option and the terms and conditions of the lease that was renewed. Usually, there is an early termination clause in the lease (to be compliant with the Consumer Protection Act), which allows the tenant to cancel by giving 20 business days’ notice at any time during the fixed term lease. If the tenant exercises this right to cancel in this way, then the landlord is entitled to claim reasonable damages (those are not damages on the property itself, but financial damages due to early termination) from the tenant. Those must be substantiated by means of invoices and proof of advertisements, etc. If he is able to take part then I would need an answer of around 100 words in the next few days. OFFSHORE Q P GILES BESWICK INVESTMENTS STATEGEST The economic advantage of moving money to the UK is clear, but why should I invest in property specifically? What makes the UK property market so strong? roperty prices have increased by 9% year on year according to the latest figures, while buy-to-let investors have seen their returns grow by 1,400% in the last 19 years. Quite simply, it’s an asset that has a proven track record of growth. The property market can boast products that are resilient towards external economic factor, such as student property, which is the UK’s number one asset. Student accommodation, as an asset, achieved consistent returns for investors, throughout each year of the global recession, while alternative assets such as bonds and equities floundered. FINANCES Q U We live with my husband’s stepfather and he wants to transfer the house into our name. He has a small bond of R300K. What is the simplest way to do this? nfortunately with any transfer of property, you will need to draw up a sale agreement, agree on a price, and do the transfer via a conveyancing attorney. Your step dad will then have to cancel his bond once the transfer has gone through and you will then need to sign a new bond document in your names as you will be the new owners. CAROL REYNOLDS ESTATE AGENT DO YOU HAVE A PROPERTY QUESTION YOU WOULD LIKE ANSWERED BY OUR EXPERTS? If so, post it on ASK THE EXPERTS on www.reimag.co.za or email [email protected] www.reimag.co.za Ask The Property Experts click here JULY 2016 SA Real Estate Investor 7