Real Estate Investor Magazine South Africa November 2016 | Page 27

new at all except food and basic necessities until you
have reached your savings goal.
And speaking of goals, he says, it is always easier to
save if you have a specific purpose for doing so – such
as a special holiday at the end of the year, perhaps, or
being able to take time off to study, or the deposit on
a home of your own.
“Saving for better times, rather than the proverbial
‘rainy day’, is more likely to give you the incentive to
save every day – and the results can be quite dramatic.
Just R10 a day, for example and you will have more
than R3500 after-tax in your savings jar at the end
of the year.”

How to find stock to sell

Agents need clients, and to find owners who will list
their properties with you, you need to understand what
motivates people to sell - and be on the lookout for any
of these things happening in your neighbourhood or
among your network of family, friends and previous
clients.

The most common motivators in the
current market are:
* Risk of foreclosure. In a struggling economy, a
significant number of sales are what is known as
distressed properties. Many homeowners find
themselves with a mortgage they can’t afford either
due to job loss or increasing monthly payments, and
it is far better for their credit record to sell quickly
than to face foreclosure.

* Relocation. Sometimes people who have to move
due for family reasons or to take up a new job offer
will need to sell their current home - and quite
possibly in a hurry.
* Downsizing. This is an increasingly common reason
for homeowners to want to sell. Baby Boomers are
now entering retirement and are faced with empty
nests. They are looking to sell and find a home that’s
smaller or more manageable.
* Family changes. People who are starting families or
newlyweds may want a change from their downtown
loft apartment to a small house or home in an area
that can accommodate children with schools and
different amenities. They will be looking to sell for
a good price.
* Financial pressure. People who are in need of
money will be looking to sell their home as asset
for the biggest amount of profit - and also quite
possibly in a hurry.
* Investment. There are people who are always
buying and selling properties and keeping a few of
these investors permanently on your contact list is a
great idea. Investors will sell in order to buy another
property, to realise a profit and raise cash or to avoid
further losses on depreciating values.

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