Tips For Buying A Renovators Dream

 Buying a home that is in serious need of renovation is not for everyone and can be riddled with disaster.  However, for those who do have the know-how and finances, it could be a very profitable and rewarding endeavour.  The difference between a successful investment and a money trap lies in choosing the right fixer-upper home from the start. 

The perfect home that everybody wants may be hidden under a variety of elements that would normally turn many buyers away, such as peeling paint and a sagging ceiling.  An investor looking to find the ideal fixer-upper will have to see past all that to visualise the home's true potential.

If you are thinking of buying a fixer-upper, here are some pointers to consider:

Location:
No matter what kind of property a buyer is interested in, one aspect that will always need to be considered is location.  A property's location will largely determine its value once it has been fixed up and put on the market.  If the house and neighbourhood are in need of repair, there may be a risk of over-capitalising and having a nice house in a bad area.  From an investment perspective, it is always better to purchase property in a desirable area that is close to a range of amenities - the rule is to rather buy the worst house in the best suburb than the best house in a suburb which is not well located.

Composition:
Generally the most sought after type of home in a particular area is the one to choose.  If most of the buyers in an area are looking for a three-bedroom home, then don't buy a two-bedroom one, or if sectional title or estate properties are the way to go, choose an investment home where demand is strong.

Design:
The general layout and design of the fixer-upper home needs to work.  Moving walls or rectifying a home that has been designed badly can be very expensive.  The layout of the home should flow and be practical.  For example, if a buyer has small children they would not want bedrooms to be on opposite sides of the property.

Condition:
It is important to consider the overall condition of the home to decide whether the renovations are manageable or require major changes.  If too much needs to be done to make the house liveable, it may be worthwhile looking elsewhere.  Aesthetic improvements are typically less costly and take less time than other modifications.

Less costly easy fixes:
-  Filling small cracks, repainting both interior and exterior
-  Sanding and refinishing wooden floors, tiling or laying down new carpets
-  Updating lighting with contemporary styles
-  Refurbishing or replacing skirting boards
-  Fixing broken windows
-  Adding a deck
-  Resurfacing kitchen cupboards
-  Upgrading bathroom fixtures
-  Replacing doors

Potentially costly fixes:
-  Shoring up foundations
-  Additing additional rooms, a garage or moving walls
-  Replacing window frames throughout
-  Replacing the roof
-  Replacing all plumbing and electrical
-  Pouring concrete for driveways, sidewalks, steps
-  Complete kitchen or bathroom remodels (even though these changes can add value to a home)

Happy Valentines Day

IMF REVISES SA’S GROWTH FORECAST FOR 2014

By Mariam Isa

The forecast in the International Monetary Fund’s latest World Economic Outlook surpasses the 3.8% predicted in its previous October report

THE International Monetary Fund (IMF) has revised its growth forecast for South Africa next year significantly upwards, predicting the economy will expand by 4.1%, up from an estimated 2.8% this year.
The forecast in the IMF’s latest World Economic Outlook surpasses the 3.8% predicted in its previous October report and is well above both market consensus and official estimates.
The Treasury sees the economy expanding by 3.8% next year, while the Reserve Bank expects growth of 3.6%. Consensus forecasts compiled by Reuters predict the economy will grow by 3.5% next year.
There were no reasons given for the IMF’s updated estimate for South Africa.
Global growth will strengthen gradually this year, but the recovery will be a bit slower than anticipated in October, the lending body said.
"Policy actions have lowered acute crisis risks in the euro area and the US. At the same time, policies have supported a modest growth pickup in some emerging market economies," the IMF said in its report.
"If crisis risks do not materialise and financial conditions continue to improve, global growth could be stronger than projected. But downside risks remain significant, including prolonged stagnation in the euro area and excessive short-term fiscal tightening in the US."
Growth in global economic output was set to quicken to 3.5% this year from 3.2% last year, and accelerate to 4.1% next year, the IMF said.
But it revised its outlook for activity in the euro area downwards, predicting that it would contract by 0.2% this year, compared with an October forecast for growth of 0.2%.
Next year, the IMF sees output from the euro area, which is one of South Africa’s main trade partners, expanding by 1%.
Even though policy actions have reduced the risks and improved financial conditions for governments and banks in the periphery euro economies, this had not yet translated into improved borrowing conditions for the private sector, the IMF said.
"Continuing uncertainty about the ultimate resolution of the global financial crisis, despite continued progress in policy reforms, could also dampen the region’s prospects," it added.
Growth in the US was set to slow to 2% this year from 2.3% last year, and then accelerate to 3% next year — broadly unchanged from October estimates, the IMF’s forecasts showed.
"In particular, a supportive financial market environment and the turnaround in the housing market have helped to improve household balance sheets and should underpin firmer consumption growth in 2013," the IMF said.
Growth in emerging market and developing economies was set to build up to 5.5% this year from 5.1% last year, before quickening to 5.9% next year, the IMF said.
"But weakness in advanced economies will weigh on external demand, as well as on the terms of trade of commodity exporters, given the assumption of lower commodity prices in 2013," the IMF said.
Emerging economies had to rebuild policy room for maneuver but "the appropriate pace of rebuilding must balance external downside risks against risks of rising domestic imbalances," it added.
The IMF left its forecasts for China unchanged, saying growth was expected to pick up to 8.2% this year from 7.8% last year and accelerate to 8.5% next year.
Its near-term growth outlook for Japan was left unchanged at 1.2% this year but was revised down to 0.7% next year, from 1.1% in October.

HELLO FROM PLETT, FEBRUARY 2013

The Season has come and gone. The children are back at school. The new Grade 1s have broken in their new school shoes, had their first sports day, and are settling down into the routine of “big school”. The weather is good and the year is off to a great start.

The signs are good that we have seen the worst of the bad times and that confidence in the economy is improving throughout the country. The IMF, in its World Economic Outlook has revised its growth forecast for South Africa, predicting that the economy will expand by an estimated 2.8% this year and an encouraging 4.1% in 2014. Similarly the Treasury, The Reserve Bank and Consensus reports compiled by Reuters, predict growth between 3.5% and 3.8% in 2014. (See the full article)

February is the month for lovers, with Valentine’s Day on the 14^th. Show your loved one that you care and buy him or her, a new house, or at least a nice little lock-up and go apartment for those romantic weekends away. We have some fantastic buys and will even work late on the 13^th, so that you are not disappointed. Don’t delay. Contact us today.