In today’s prevailing economic climate the property market is still very much a recovering one and current home owners tend to hold on to their properties for a little longer. It is therefore becoming increasingly difficult for new home buyers to crack the nod onto the proverbial property ladder.
In spite of this, it is still considered to be a buyer’s market and affordability has become the name of the game. As a result, and primarily because of the significant capital outlay when buying proper-ty, many people are choosing to share the expenses of purchasing property and opts to buy a house with a friend or family member. Co-ownership is therefore especially attractive in that by jointly purchasing and owning property, you reduce the individual’s financial commitment involving home ownership significantly.
In light of the above we have noticed that more and more lenders are offering home loan packages especially designed for co-owners.
The most important aspect to buying property with family or friends is transparency. If you’re buying property with friends or family it is pivotal that the appropriate agreements are set up in advance in which it is addressed what you all want to get out of the venture, how you plan to fund the investment and what happens if one of you wants to sell their share of the property in the future.
Due to the deposit, transaction costs, bond repayments, maintenance and utility bills being shared among the co-owners, it is important that adequate records of all payments made relating to the property are being kept. To practically manage this we suggested that a joint bank account be opened from which the mortgage payments will be drawn. This account could also be used to pay for any agreed shared expenses. One bank account will enable everyone to keep track of payments and expenses more easily than if they were going in and out of separate personal accounts.
It is important to note that the fact that the property is owned by various owners does not negate the responsibility of each owner individually. Everyone involved in the transaction is responsible for the bond repayments, meaning that if one person defaults on payments, everyone is liable.
Anybody considering purchasing a property is choosing a good time to invest. Co-ownership affords property buyers who do not have a large enough deposit or income to secure a mortgage on their own, the opportunity to own part of a property through investing with family or friends.
Information supplied by Guthrie & Rushton Attorneys.
Of the 6 homes sold to house ministers and deputy ministers, 5 are in Van Riebeeckshof and 1 in Oude Westhof. The media reported that unrelated high prices were paid for these properties. This is an area of concern to estate agents as this would inflate market valuation figures to unsustainable levels. One of these properties was on the market for at least 4 years and struggled to sell.
We believe that the security in the area should benefit from the presence of these new residents as the visibility of police cars and security vehicles is at an all time high.
We at Louise Reyneke Properties feel that our “best kept secret for happy living” area is now out in the open. May we all benefit from being “put on the map”!!
Welgedacht
Kanonberg
Protea Valley
Van Riebeeckshof
Oude Westhof
Welgedacht
Kanonberg
Protea Valley
De Bron
Follow the following link to "LIKE" our page at http://www.facebook.com/pages/Louise-Reyneke-Properties/193093617383109?ref=hnav and receive a complimentary bottle of Hazendal Reserved Red 2008. Offer valid until the end of August 2011. Limited to the first 50 residents.
South African courts frown heavily upon those who decide to take the law into their own hands. This was made very clear by our High Court in a recent case.
A homeowner in a sectional title scheme fell behind in the payment of monthly levies. The body corporate reacted by locking his motor vehicle out of the scheme by suspending the owner’s access disk to the complex he lived in. In taking this bold action the body corporate simply suspended the owner’s rights to access unilaterally and without first looking to a court for permission to do so. These actions, according to the body corporate, were condoned by the scheme’s Conduct Rules. In terms of the Conduct Rules the body corporate is entitled to “disconnect and lock out electricity supply or perform any other act necessary…..” to enforce compliance with the Rules .
However, the courts disagreed with the body corporate’s decision. The court ruled that a person in peaceful possession of a property could not be disturbed unless a court order authorised it. In effect, the body corporate’s action resulted in an illegal infringement of the personal rights of the homeowner. The court awarded full access to him. In addition to this, the court made a punitive costs award against the body corporate, making the situation even worse for them, in that they were ordered to pay the owner’s legal costs on the scale as between attorney-client.
This case is another clear indication from our courts that no person is entitled to take the law into their own hands. To condone such action would eventually lead to a state of lawlessness. We accordingly encourage you to seek legal advice before taking action.
Information supplied by Guthrie & Rushton Attorneys.
On the 18th of September, Louise and her team members, Angela le Roux and Sirette Smith, organized a 3km fun run through the Majik Forest in Tygerberg.
With amazing food, exhibitions by BMW Forsdicks and freebies from local businesses, this fund-raiser focused on preserving this unique local asset and turned out to be hugely successful.