Real Estate Investor Magazine South Africa June 2016 | Page 9

PROPERTY ADVICE GREEN DEVELOPMENTS Q Y Are there any building code restrictions on the use of green materials? es, there are but in my opinion Green building guidelines are over engineered and people try to sell there own products and focuses more on commercial buildings with massive budgets where I believe the handbook should be on the back of a matchbox. The diverse opinions of salesmen, local regulations and green building guidelines are what confuses the majority of consumers and the reason why so little people convert. A confused mind cannot make a decision. ETTIENE PRETORIUS DEVELOPER OFFSHORE Q L Where is the best place in the UK to invest? Many international investors are traditionally drawn to London, is this still the best market? ondon has an enviable track record of making investors a lot of money; for example, those who bought a property in the capital at the average price in 1995 of £126,295 will have seen a return of £485,045 on their investment in June 2015. However, the latest figures suggest that London has hit an affordability ceiling. Knight Frank recently noted a reduction in interest in London property from key international communities, as only the very rich can afford to purchase property in the market. GILES BESWICK INVESTMENT STRATEGIST FINANCES Q H MEYER DE WAAL ATTORNEY I’ve started a business involving buying and selling repossessed property but don’t have an un-bonded property to use as collateral, (I do have a life policy in place). What avenues can I use to secure finance? ow do you intend to pay for these purchase transactions? At an auction you usually have to put down a deposit (10 %) as well the auctioneer or sheriff commission. The balance must then be paid in cash – but you would be able to register a mortgage bond to cover the balance of the purchase price. If you only have the security of a policy – it may not be sufficient to raise a loan – unless you can cash in the policy in advance to raise sufficient cash to buy the property in cash. With ‘affordability’ being one of the main requirements as ‘prescribed’ in terms of the NCA – a regular income is one of the most important requirements to raise a home loan – unfortunately an asset alone (police or a paid-up home) is not the strongest leg to stand on. 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 JUNE 2016 SA Real Estate Investor 7