Real Estate Investor Magazine South Africa September 2015 | Page 25

REI RESIDENTIAL

EXPERT Q&A

HOME OWNERS ASSOCIATIONS ABLE TO
BLOCK SALES OVER OUTSTANDING LEVIES

The logic behind this was that an agreement would be reached
between the HOA and the bank, in the case of a property being
sold in execution, that once the bank had received the amounts
due to them they would then pay the outstanding levy amounts
over to the HOA in question. This, however, in some cases has
not happened and the HOA was left to fight the debtor for the
amounts due themselves, which resulted in many being put at
risk financially
HOAs and bodies corporate are wholly dependent on levies
being paid in full, as this is usually their only source of income
to pay for services for the scheme.

Back-up power generates home buyers’ interest
Body corporates for apartment blocks in Cape Town have started
installing power generators to keep lifts working, stairwells lit
and electric gates functioning during load shedding - a move
which not only keeps residents happy, but also boosts buyer
appeal.
Fitting the average house with one of these solutions for
emergency power supply would cost between R15 000 and R40
000. So while it would be a fairly attractive feature, it is small in
terms of the average house price of R1.7m to R10m

Younger buyers take up to 61% of Cape market
sectors
According to Lightstone statistics, between 50% and 61% of
residential properties sold in Rondebosch East and nine other
middle-income suburbs go to 18 to 35-year-olds, many of whom
are doing it, at least in part, with parental funds. Younger buyers
are active in Devil’s Peak, Walmer Estate and Woodstock.
With frustration at uncertain returns from equity market
retirement investments, and a need for extra bricks and mortar,
late Boomers are opting for second homes to house their student
offspring. Now, the younger generation is scrabbling to buy
property so they can get a stake in the market that’s fast gaining
values that could put first-timers out of the running.
www.reimag.co.za

Chris Renecle
Managing Director: Renprop
Q What is the importance in selecting
the right property management
company

There are different kinds of management
companies that have more experience
dealing with certain kinds of assets. It is
extremely important that the management
of commercial or residential property
assets is handled by a company with the
right knowledge, experience and qualified
individuals to be able to meet the owner’s
objectives.
Q What basic services should
investors expect

The basic services that can be expected from
a standard management agreement are the
collection of rentals and rental analysis, bill
payments, maintenance of the property,
financial reports, tenants relations and the
supervision of