Real Estate Investor Magazine South Africa May 2016 | Page 23

›› RESIDENTIAL ›› PROPERTY FACT VS FICTION FACT: BUYING TIES YOU DOWN While renting provides a certain degree of freedom, allowing you to leave as soon as your lease is up, buying a home can become a valuable entrepreneurship opportunity, allowing you to rent out your home for profit. If you buy a home, you can move wherever you like while continuing to collect rent. FICTION: BUYING ALWAYS COSTS MORE UPFRONT Many people choose to rent because they can’t afford the down payment on a house. This is understandable; after all, some lenders require as much as 20% of the home value upfront before they will loan the rest. However it is important to note that some houses can be purchased with a no money down option, which can help you buy the home of your dreams for less upfront than a security deposit and the first and last month’s rent on an apartment. FACT: IF IT’S BROKEN, YOU FIX IT Longtime renters are accustomed to the convenience of having their maintenance needs taken care of for them. Of course, when you own a home you are responsible for taking care of your own maintenance needs – from plumbing to landscaping to heating. However, if you enjoy yard work and are home improvement savvy, you may actually come to enjoy it. Fortunately, with a homeowner’s warranty, making home repairs is very feasible. AMANDA CUBA BILL RAWSON KENT GUSH Amanda Cuba has been appointed as Chief Operating Officer of RE/MAX of Southern Africa with immediate effect. Co-owner of Z-Capital Properties, a prominent black empowered company, which purchased a 45% share of RE/ MAX of Southern Africa early in 2015, Cuba will be taking a more hands-on role in managing the company’s day-to-day operations. Bill Rawson, chairman of the Rawson Property Group, has cautioned prospective home buyers, banks and tenants to take action to protect themselves against the effects of the recent Supreme Court of Appeal (SCA) judgment that property owners can be held liable for historical municipal debts dating back up to 30 years. Despite the economic conditions of the last couple of years, Kent Gush Properties (KGP) had their best year ever in 2015 with over R1-billion in turnover and proved resilient given the uncertain trajectory of interest rates. The managing director, Kent Gush, co-founded KGP in 2009 Chief Operating Officer www.reimag.co.za Chairman Managing Director MAY 2016 SA Real Estate Investor 21