Residential property: 2017 and beyond……


Ida du Plooy

Harcourts Dolphin Coast.

 “Real estate investing, even on a very small scale, remains a tried and true means of building an individual’s cash flow and wealth”. Robert Kiyosaki

 Coming to the end of 2017 and taking stock of the year that was, the one sentiment that prevails at the end of the year is that of “wait and see”….

With the start of 2017 optimism in the property market was at a high with investors keen to invest in one of the major growth-points in South Africa – The North Coast of KZN and specifically Ballito and surrounds. But political uncertainties, financial down grades and major natural disasters like drought and floods changed the mood somewhat to that of caution and uncertainty.

But with negative sentiments abounding, the truth about property will always be the same:

“Now, one thing I tell everyone is learn about real estate. Repeat after me: real estate provides the highest returns, the greatest values and the least risk.” Armstrong Williams

 In the light of recent ‘shock’s’ on the stock market, the question on where to invest one’s hard earned money is debateable. As with buying shares, there are also risks and dangers when buying property. Here are a few risks to be watching out for.

 Home-Buying: What to look out for.


  1. The Transfer Process:

Submitting an offer and having it accepted by the seller is exciting, but it is certainly not the end of the property sales process. The transferring process is the first of many obstacles that can affect the selling and buying of a property. A wide variety of things need to be considered and organised. Take the time to research the process and its possible pitfalls to ensure that you are ready for any situation. Make sure that you have a close relationship with your agent as well as your conveyancer to guide you.

  1. Bond approval

If possible, it is advisable to get pre-approval from the bank with a written loan commitment letter that you can show the seller. However, being pre-approved is not a guarantee that you will get the finance. Certain factors could cause the bond application to fall through, such as a change of employment or job loss. Here it is once again advisable to work with a good agent as well as a reputable bond originator.

  1. Appraisal is less than expected

The bank providing the loan will send an appraiser to value the property to ensure it covers their invested interest in the home. The value of the home must be at least as much as you are willing to pay for it. The bank wants to make sure that if you default at any stage, they will be able to recoup their losses. Once again the invaluable services of a good agent is needed when a new price has to be negotiated.

  1. Cancellation: You want to back out of the deal

All properties below R250 000, compels that the OTP should contain a cooling-off period where you can step away from the transaction. However, all other property transactions above this level are legally binding as soon as it is signed. When a property transaction is cancelled, the Consumer Protection Act comes into play. Legal advice in any such cases is absolutely necessary. Negotiating any cancellation of a sale agreement between the seller and buyer needs the skills of a good estate agent.

However, if negotiations prove to be unsuccessful and you do not comply with the stipulations within the contract, one will be at risk of contract breach, and could be liable to pay damages and the estate agent’s commission if legal action is instituted.

  1. A major defect is found during the home inspection

According to South African legislation, all property transactions are still subject to the ‘voetstoots’ clause if it is contained in the OTP. The word ‘voetstoots’ need not appear but the law still applies in all real estate transactions.. The clause protects sellers against any claims arising from patent (openly visible) defects, as well as latent (hidden) defects in the property.

However, if the seller knows about a latent defect and wilfully or fraudulently withholds this information, voetstoots does not protect the seller. That said, proving prior knowledge of latent defects is very difficult. The effect of voetstoots is often qualified by a disclosure annexure which often forms part of the offer to purchase. Within the annexure, the seller declares in detail the condition of various aspects of the property.


The property transfer process can be stressful for both parties, especially with the wide variety of things that need to be considered and organised. Take the time to research the process and its possible pitfalls to ensure that you are ready for any situation.

The Best Advice when investing in property:  Choose a legally registered and reputable Estate Agent to work with you step by step until the property transfer has successfully been concluded. Then sit back and enjoy watching your investment grow: Property : “ the basis of all wealth, the heritage of the wise, the thrifty and the prudent” – Lou Scott.

At Harcourts Dolphin Coast, we are proud of the service we give all Buyers and Sellers, making the purchase of their Ballito property a happy experience.

At Harcourts Dolphin Coast Property is our Business


People our passion.

 Have you given Real Estate as a career a thought?  At Harcourts Dolphin Coast we provide FREE Logbook and NQF 4 qualification to all successful applicants. Our new Intern Agent intake to commence early in 2018. Send you CV to


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