CABS is the country’s largest building society, which has of late been undertaking some of the largest housing development projects in the country.

BULAWAYO — The Central African Building Society (CABS) has opened a state-of-the-art banking centre in Bulawayo.
The mortgage lender is a unit of the Zimbabwe Stock Exchange-listed financial services group, Old Mutual Limited.
It is the country’s largest building society, which has of late been undertaking some of the largest housing development projects in the country.
The CABS Centre in Bulawayo has been undergoing renovations in the past three months, culminating in its reopening last month.
A senior executive said last week that the renovations affirmed the lender’s commitment to providing relevant products to the market in a paperless environment, adding that renovations had commenced on October 19, 2015.
Managing director, Simon Hammond, told the Financial Gazette Property that the renovated centre now encompassed the Old Mutual green zone, where the insurance giant’s products can be accessed.
A significant part of the renovations budget went into the establishment of the green zone, according to Hammond, who said it was the first time that the facility was incorporated into the CABS Centre.
CABS has been undertaking a rebranding programme that it says is meant to align with Old Mutual.
The refurbishment programme, which would be implemented in phases, is expected to cover all CABS branches countrywide after completion of the first eight units, according to Hammond.
He said the mortgage lender was currently renovating the Kelvin Corner branch in Harare, the Southerton branch and the Central Avenue Harare branch.
Branches in Gweru and Zvishavane were also undergoing a facelift.
“The renovations involved establishing the green zone where all Old Mutual products can be obtained,” Hammond told the Financial Gazette Property last week.
“Completion of the renovation exercise was on January 29, 2016.
“The new environment is now more comfortable and spacious and caters for more clients. It is also attached to the green zone to provide our clients with added convenience when transacting,” Hammond said.
CABS offers transactional accounts, savings products, loans, banc assurance, corporate banking, trade and international payments, internet banking and mobile banking while Old Mutual’s financial solutions range from administering pensions to investments on the stock and money markets.
Hammond was not at liberty to disclose the cost of the project.
“A significant amount was invested towards the renovations of CABS Centre Bulawayo and the green zone. The better part of the budget went towards the green zone since it was a new establishment.”
“CABS is a solid partner that provides you with a convenient, holistic product offering in a refreshed environment.
To improve on efficiency and to make it easier for individual clients to transact, CABS continues to encourage clients to use e-commerce for banking,” said the CABS boss.
One of the key housing development projects being undertaken by CABS is at Budiriro in Harare, where it had completed 2 800 units by October last year.
Hammond said then that about 500 units had been sold.
“To date we have sold over 500 houses from the 2 800 that have been constructed which comes to about 20 percent of the total project.
“The uptake of the project although still low is slowly improving after we opened it up to multiple home owners and those not on the waiting list. CABS continues to implement strategies aimed at improving the uptake of the houses,” he said.
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Understand the costs of owning a home

Becoming a homeowner may be a thrilling concept, but the realities of owning a house are not always sunshine and roses – jumping in with your eyes closed could land you in a potentially uncomfortable position.
Thankfully, with a little preparation and honest self-assessment, you can avoid the common pitfalls, not only of the buying process, but of the house hunting process as well.

This is according to Wayne Albutt, the Rawson Property Group’s regional sales manager for the Western Cape, who shares his step-by-step guide to ensure you enter the market with your best foot forward.

Step 1: Check your credit rating

Let’s face it, there aren’t many of us who can buy a house without some kind of financing, but securing finance can be almost impossible if you’re blacklisted, have a bad credit rating, or have no credit record at all.

“There are a lot of South Africans who are completely unaware of the black marks on their credit record, and it can be a nasty surprise when you approach a bank or bond originator with an agreement of sale and discover that no-one is interested in giving you a loan. If there’s even a one-in-a-hundredth chance that your record isn’t spotless, do yourself a favour and check it before you set foot in your first show house.

“That way, if anything is wrong, you can take the time to clear your name and rehabilitate your record before falling in love with that perfect house,” says Albutt.

He says one of the easiest ways to check your credit record is to visit a bond originator that can take you through the whole process, as well as give you a good idea of the size of the home loan you might qualify for – a useful thing to have later on in the process.

Step 2: Consider whether buying a home is the best option for your current and future lifestyle

Albutt says once you’ve ascertained that financing is possible, it’s time to consider whether buying is a good lifestyle choice for you.

“Owning property can be rewarding, but it’s a lot of responsibility, and it’s not the right thing for everyone at all stages of life,” he says.

“Think about your current lifestyle as well as where you’ll be in five or ten years’ time. If you’re likely to move jobs, move cities or be away for large parts of the year, the flexibility of renting may outweigh the benefits of owning.”

Albutt says renters are also protected by things like the CPA and the Rental Housing Act, and have minimal maintenance costs and responsibilities.

However, what renters don’t have is the freedom to do whatever they want with their space, and the satisfaction of knowing that their monthly housing costs are contributing towards a valuable asset.

“The biggest thing to remember is that buying a house is long-term commitment. If your property stops suiting your needs, you can’t just up and go – at least not without possibly taking a financial hit,” says Albutt.

“If you can’t be sure your life isn’t going to change dramatically in the near future, property ownership might not be the best decision for you at this stage.”

Step 3: Understand the costs of owning a home

If you’re certain that buying will suit your lifestyle, you’ll need to consider whether it’s affordable in the long run, which means understanding the ongoing costs of owning a home.

This includes home loan repayments, rates and taxes, and the inevitable maintenance that will need to be done, as well as the cost of turning someone else’s house into your home.

Albutt says bond repayment calculators are widely available online, but a bond originator is the best bet for finding out what size mortgage you’d actually qualify for.

“Don’t rely on that old rule of thumb that you’ll qualify for bond repayments up to a third of your income. Everything depends on your monthly net surplus,” he says.

“It’s also important – especially now – to over-budget for things like bond repayments. Interest rates are rising and you will be paying more in future. Rates and taxes are also likely to increase far above inflation for the next few years – I’d predict at least 20% in the next two years, and up to 100% in the next five in the average property sector.”

As for maintenance costs, Albutt says you should set aside a minimum of 1% of the value of your home per year – that’s R10 000 a year on a R1 million home – to increase or maintain the value of your asset. An average of as much as 3% to 5% annually may even be required.

Step 4: Understand the costs of buying a home

Being able to handle the costs of ownership is one thing – the costs of buying are another.

“The upfront costs of buying a property generally have to be paid out of pocket – you can’t just add them to your home loan,” says Albutt.

“A lot of people think it’s just the deposit they need to save for, but there are some other significant costs to keep in mind as well. For example, attorney’s fees are often a surprise to unprepared buyers.”

On a R1 million house with a R900 000 home loan, transfer costs, including transfer duty, Deeds Office fees, attorney’s fees and incidentals, currently total over R26 000. Add to that home loan costs of nearly R22 000, and a 10% deposit, and you’ll need at least R150 000 cash on hand to make the purchase happen.

Albutt says for a R2 million house, those numbers more than double. The easiest way to budget for these costs is to use an online transfer cost calculator. This will be fairly accurate, but not a guaranteed figure.

Step 5: Draw up a wish list

Albutt says if you’ve successfully made it through steps 1 to 4, chances are, buying a house is a good decision for you. Now, you get to move on to the fun stuff: drawing up a wish list of what you want in a home. However, be careful how you do this – most buyers get it wrong.

“Try to stay away from physical things when drawing up a wish list, and focus on the ‘why’s, not the ‘what’s. For example, don’t write down ‘high ceilings’ when what you love is old-style homes or a feeling of space. Don’t write ‘big kitchen’ – write ‘I love to cook’.”

Albutt says a good real estate agent will be able to interpret these elements in order to show you homes that will not just accommodate you, but support and enhance your lifestyle and that of your loved ones.

“Don’t forget to consider the needs and preferences of everyone that will be sharing your home. It’s important that you get to know your partner’s tastes and requirements, and find a compromise that works for you both,” he says.

Step 6: Find a suitable area

While aspirations are important, Albutt warns against being tempted to go over budget in order to get into your first-choice suburb.

“It’s better to compromise on area than to overextend yourself financially, but it’s up to you whether you’d prefer the best house in a lesser suburb or the worst house in a better suburb,” he says.

“While the latter is almost certainly a better investment, the former may provide a better lifestyle, and you’ll need to weigh up which of those is more important to you, or find a balance somewhere in between.”

Step 7: Select three real estate agents to work with

Having chosen your ideal suburb or suburbs, it’s time to get in touch with a few real estate agents who are active in that area.

Albutt says choose one primary agent, and another two secondary agents to encourage healthy competition and a motivated search. However, don’t just sit back and expect your chosen agents to come to you. Be proactive when it comes to getting updates, as South African agents are more used to serving sellers than buyers, and might need a friendly nudge every now and then to prioritise your search, he says.

Albutt says by following these seven steps, you should be well on your way to finding a property that will make you happy, but if you’re still in doubt, take some time to sit down with an experienced real estate agent and run through any concerns you may have.

“Buying property doesn’t have to be scary if you’ve done your homework.”

He says as for the next step: don’t look for a house, look for a home. Property24.com

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On average, houses in Kariba Heights are fetching between US$130 000 to US$140 000 while those in high density suburbs cost between US$20 000 and US$50 000 for a four-roomed residential property.

KARIBA – High property prices are driving potential investors out of this resort town.
As a result, most properties are losing value while lying idle because there are simply no takers for them at current prices.
Kariba has three high density suburbs namely Mahombekombe — which is the oldest — Nyamhunga and Batonga. Kariba Heights, a low density suburb, caters for the well-heeled.
The town also boasts of a few hotels, several lodges and houseboats.
Lately, not many people have been able to afford properties in this resort town owing to the harsh economic conditions which have hit potential buyers where it hurts most — the pocket.
Properties in Kariba are generally expensive because they are specially built due to the high temperatures in this resort town throughout the year.
“Generally, properties are too expensive here and very few can afford them,” said Kariba Incorporated Residents and Ratepayers Association chairman, Sam Mawawo.
On average, houses in Kariba Heights are fetching between US$130 000 to US$140 000 while those in high density suburbs cost between US$20 000 and US$50 000 for a four-roomed residential property.
Even owners of houseboats are finding the going tough; some houseboats have been on the market for more than five years.
Selling property in this town is becoming a challenge as potential buyers can hardly risk their monies due to Kariba’s remoteness and the generally poor returns on their investment.
Another frustrating thing is that some of the sellers do not have the requisite documentation or titles for the properties, which they claim to own.
It would appear that those who do not have documents to their properties grabbed these assets from former white commercial farmers who abandoned them at the height of the chaotic land reforms in 2000.
Kariba has an estimated population of 28 000, according to 2012 Zimbabwe National Population Census.
Its economy hinges on kapenta fishing, tourism and game viewing among others.
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A house being demolished in one of the illegal settlements in Harare

Farai Mabeza
A MIDDLE-aged woman, cle-arly distraught and at the same time fed up by the blame games, mudslinging and banter between politicians Douglas Mwonzora and Jacob Mafume, stood up at the back of the room to make her contribution. She had only one question.
“What we want to know is what do we do as people whose houses were demolished? We don’t care about whose councillors did what; or whatever,” she said.
The meeting had been convened by the Combined Harare Residents Association (CHRA) to focus specifically on the people affected by the demolitions of illegal settlements in and around Harare.
With political temperatures heating up within the ruling ZANU-PF party, and now dominating every inch of front page news, people who were caught up in the eye of the storm risk becoming forgotten.
Most of the people do not even know how they are going to begin rebuilding their lives.
Zimbabwe Lawyers for Human Rights director, Irene Petras, told the meeting that focus should be on the lives that were shattered and not just on the properties that were destroyed.
“We are not talking about just bricks being brought down but about lives being disrupted.
“The real cost of the demolitions is in the lives of those affected, the people on medication, the children going to school,” Petras said.
While it is clear that many believe in pursuing the legal route to get some sort of recourse for the victims, particularly compensation, Petras believes that human rights empowerment is more important.
“You need to deal with the ability of the people to understand that they have rights, the right not to be moved without a court order. There is not enough money to represent everybody in court. That is why we do representative cases,” she said.
Mwonzora, the Movement for Democratic Change (MDC-T)’s secretary general, advocated a more radical approach.
“I am not telling anyone to do this, but this is what I would do. If I saw a truck coming to destroy my home, without any court order, I would stone the truck and its occupants. These things happen because us, the people of Zimbabwe, allow them to happen,” he said.
With the people at a loss on how to salvage their lives, Petras urged civil disobedience.
“If my house has been destroyed, the person who has destroyed it must provide an alternative or I will go to Town House or wherever their offices are and stay there until I am provided with a new house. I think that will help to show the human toll of these demolitions,” she said.
CHRA chairman, Simbarashe Moyo, bemoaned double standards by political leaders.
“I have realised that Harare South is one constituency created out of illegal settlements but it is being regularised. Why this selective application of the law?”
Harare has seen a spike in illegal settlements over the last decade fueled by corruption at the city council and by land barons and housing cooperatives, who pledge allegiance to ZANU-PF, yet in actual fact they are out to swindle desperate residents of thousands of their hard-earned money.
The city council has said that residents should respect its land use policies. Some of the homes were constructed over sewage pipes or on wetlands.
Many of the affected people, like the majority of their countrymen, have lost jobs over the past few years and no longer have the financial means to build new homes.
The MDC-T has the majority of elected councillors in Harare, but they say that council staff members, who support, or fear ZANU-PF regularly ignore council decisions.
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Since 30 September 2015, voids remained largely stable at 26 732 square metres, representing 25% of the lettable portfolio.

Mashonaland Holdings rentals continue to be under pressure from the subdued economic activity. Giving a trading update for the four months to January 2016, during the company’s 49th Annual General Meeting (AGM), Chief Executive officer Manfred Mahari said falling occupancy levels and downward rent reviews resulted in a 7% drop in revenue to $1.9 mln.

“We have put strategies in place to ensure that we attract new quality tenants on the market and also retain good quality tenants already in the portfolio”, he said

“In addition, new revenue streams are being actively pursued. High quality service delivery and responsiveness to customer needs will also be a priority”

Since 30 September 2015, voids remained largely stable at 26 732 square metres, representing 25% of the lettable portfolio.

Mahari said as a result voids related costs (40%) as well as provision for credit losses (23%) and property management costs (23%) were the key drivers of the company’s expenses.
The property expenses at $493 669, were up by 1% from the previous year and 11% above the current budget of $445 992.

“The resultant property expense to income ratio was 26 percent compared to 23 percent in the same period last year.”

Administrative expenses, at $0.7 mln, were 3% above those in the same period last year and 17% above budget. The admin expenses to income ratio improved to37% from 40% in the comparative period.
Mahari noted that cost containment measures remain a priority.

Operating profit for the period under review at $0.8 mln was 19% below both the comparable period and budget. The margin eased to 39% compared to 45% achieved in the same period last year.
“We have put revenue growth and cost containment strategies to improve operating profit”, he said.
Rental debtors grew by 20% to $2.3 mln from the year end position of $1.9 mln and this was largely attributed to Government ministries and departments in the company’s portfolio.

“We remain confident that government will honour their debt. Management is aware of the tight liquidity space but we will continue to actively seek ways of reducing these arrears,” said Mahari.
The resulting arrears ratio was 34% compared to 28% in September 2015.

In terms of property maintenance, Mahari mentioned that their properties are in a good state of maintenance in terms of building fabric, plant and equipment. Installation of the new lift for ZB Center Bulawayo, procured at a cost of $157 000 was in progress.

“This completes the first round of the replacement plan for all lifts in the office buildings portfolio, bringing the cumulative investment on new lifts to $1.2 mln.

Turning to property developments, OK Houghton Park project is expected to be completed by July 2016 and the entry yield for the project is 6%. Completion of the project is expected to free up the space being let to OK for further strategic re-letting.
Given the persistent liquidity challenges and lack of affordable mortgage, alternative options are being considered for realizing value on the Hazeldene landbank in the short term.

The AGM also voted for the extension of the company’s share buyback scheme for another year. FinX

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First impressions matter. If your home is overpriced when people first see it, chances are good that they won’t look at it again.

Hoping that a buyer will overpay for your home isn’t a strategy, it’s a wish. It is also self-defeating.

This is according to Elaine Chetty, licensee of Seeff Richards Bay, who says as a seller, you naturally want to get ‘top dollar’. The chances are also good that you have a deep emotional attachment to your home. Combined, these factors often lead sellers to insist on a high price.

“Our analysis of website activity shows that new listings get an average of 50 to 60 page views on the day they hit the market. Houses with price drops get only 15 to 20 views,” says Chetty.

“First impressions matter. If your home is overpriced when people first see it, chances are good that they won’t look at it again. We estimate that a house listed for sale gets 3.5 times more web traffic in the first seven days than it does one month later. After the first three days web traffic to existing listings slows by more than 65%. Within three weeks it’s down by 85%,” says Chetty.

In short, she says your home’s debut is its best chance to shine. An overpriced property is more likely to be ignored.

“In this current market, don’t expect a rush of lower offers either; people won’t assume that you’re willing to negotiate,” says Chetty.

“By the time you lower the price, your home will have the taint of being a ‘languisher’, stuck on the market. Fair or not, a home fresh on the market at R1.2 million looks different than one reduced from R1.5 million to R1.2 million.”

Chetty says even if objectively it’s a good home, if it’s been on the market for a while, many buyers will wonder if there’s something wrong with it. Once that stigma is there, it is going to be hard for a seller to get full asking price.

If there has already been a price cut, she says savvy buyers will start circling. This is not a good situation for sellers to be in.

“Remember, most buyers will look at your home on the first day it comes to market – so make that impression count by pricing right. You’ll get more and better offers that way, and you’ll get them sooner,” says Chetty.

“Ensure that you get solid advice from your estate agent to guide you on the ideal price to ask for your property, given the recent sales made in your area.” Property24.com

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Transport, Communications and Infrastructure Development Minister, Joram Gumbo

ZIMBABWE will take advantage of the presence of about 400 global airline executives at the African Airlines Association (AFRAA) annual general assembly (AGA) scheduled for Victoria Falls in November to market to the world the upgraded Victoria Falls International Airport.
It will be an opportunity for these influential executives to get a feel of the airport which is currently going through a major facelift at a cost of about US$150 million as they fly in for the indaba to be hosted by the national airline, Air Zimbabwe (AirZim).
AirZim assumed the AFRAA presidency in November last year.
The refurbishment is expected to be completed in May, about six months before the annual general assembly, thereby offering a world class gateway into one of the most popular tourism destinations in the world.
The Civil Aviation Authority of Zimbabwe (CAAZ) has launched an aggressive marketing drive to attract direct long haul aircraft into the resort town after expanding the airport’s runway to four kilometres, from 1,5 kilometres.
On completion, the airport will handle 1,2 million foreign passengers per year and about 500 000 domestic travelers.
Before the expansion, it only handled about 400 000 passengers yearly.
Transport, Communications and Infrastructure Development Minister, Joram Gumbo, said Zimbabwe will use AFRAA to demonstrate to the world that the country was ready to abide by its pledge to open its skies to global airlines.
“We cannot have this infrastructure (Victoria Falls International Airport) if we are not prepared to open our skies to other airlines,” said Gumbo.
For those who will be flying in for the assembly, it will be an opportunity to tour the facility, have a feel of its facilities and decide on whether they would launch direct flights into the resort town.
“The benefits to be accrued from the upcoming AGA are varied and for AirZim, we are happy that our flagship role to brand and market Zimbabwe has started,” said AirZim’s public relations manager, Shingi Dhliwayo.
“Our takeoffs and landings daily to the various destinations translate to pushing brand Zimbabwe ahead…and the presidency (of AFRAA) is the culmination of these efforts. We are confident that we are the critical ingredient to the emergence of Zimbabwe and Africa as an economic giant linking Zimbabwe with a world of opportunities and bringing opportunities to Zimbabwe. Our teams are enthused by these developments and come 20 November, Africa will fall in love yet again with Zimbabwe’s most hospitable service,” she said.
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CONTROVERSIAL Harare businessman, Bernard Mutanga’s up-market house has been auctioned by the Sheriff of the High Court over a case involving a diamond buying deal that went sour.
The double storey property with an estimated open market value of US$400 000, was sold for US$150 000 last week. Valuers sent by the Sheriff to evaluate the property were denied access, resulting in a situation where there was very limited details of the property. As a result, there was only one bidder who was interested in the property, so it was sold to him subject to confirmation.
Mutanga, who is the president of the Braitwood Institute of Gemmology and chief executive of the Zimbabwe Diamond Processing Centre, allegedly swindled a local diamond processing company, African Star Diamonds, of US$100 000 in 2011.
His company had received the money to buy diamonds from the Minerals Marketing Corporation of Zimbabwe (MMCZ).
In February 2011, African Star Diamond, a company registered to buy and polish diamonds, experienced serious problems in acquiring the gems from MMCZ resulting in its senior official, Hatineti Kevin Sachikonye, approaching Mutanga for assistance.
The negotiations resulted in African Star Diamond transferring US$100 000 to Mutanga in order for him to buy raw diamonds from the MMCZ on its behalf.
The businessman allegedly withdrew and converted the funds to his own personal use.
In 2012, African Star Diamonds got Mutanga arrested over the matter, but the courts ruled that the case was civil, rather than criminal.
He was set free.
It is a result of the civil proceedings in the courts that Mutanga’s property in Harare, listed as 692 Quinnington, a 5 031 square metre piece of land with a double storey building — also known as number 58 Hawkshead Drive, Quinnington — was set for auctioning.
Mutanga — a businessman with solid political connections — has been involved in a number of controversial cases, most of them property-related.
He was the character behind the infamous Bernwin Development Company in the late 1990s until the early 2000s before he ventured into the country’s equally controversial diamond sector.
Around the year 2000, Mutanga masterminded the arrest of two senior managers of Beverley Building Society (now part of CBZ Holdings) who had devised a way of stopping him from diverting funds from two loans that Bernwin had secured from the building society in 1999 for the development of residential properties in Chadcombe, Harare.
The arrests resulted in the managers successfully suing law enforcement agents for civil damages, while Bernwin and Beverley sued and counter-sued each other.
Many home seekers in Harare and Mutare lost money after investing into Bernwin’s housing schemes.
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Don’t be tempted to miss or stop paying altogether

YOUR home loan is arguably your most important debt and asset. Staying on top of home loan repayments should be a priority. As generally one of your biggest monthly contributions, it is difficult to get back on top if you fall behind.

“Everyone finds themselves stretched financially at some stage. With holiday debt still around, school fees just paid and interest rates up, you may find yourself with no breathing room and your biggest and most important debt – your home loan – is suddenly a big commitment,” says Patricia Temba, head of collections at FNB Housing Finance.

The very heart of the issue is that your income needs to exceed expenses. The only way in which to make this work is to increase your income or lower your expenses.

Temba provides a few tips on doing this:

1. Be overly strict for a few months

Make the money you earn work for you by implementing strict measures to get back on top of your payments.

“Print out a bank statement and look at each expense leaving your bank account,” suggests Temba.

“More than likely, unnecessary expenses are coming off, whether it is pay TV, entertainment or even unnecessary banking fees, each rand saved will help. There is not much point in having Pay TV or ordering pizza in if you don’t have a home in which to enjoy these luxuries.”

She says it is important to note that this isn’t forever, just until you are back in a comfortable space.

2. Look at places to cut down

There are some necessary expenses that you can’t forgo. However, there are places to negotiate and cut down.

“Insurance is one place that is open to negotiation, so spend some time gathering quotes and renegotiating your insurance contracts,” says Temba.

Another place to cut down is services such as cell phone bills.

“While having a cell phone is considered a necessary expense, racking up huge data costs to surf the internet or chatting for hours with friends is not necessary,” says Temba.

You can also look at your water and electricity bill consumption. Just by being more vigilant you can save on these expenses.

3. Temporarily reduce or push pause on other investments

You can push pause or temporarily reduce contributions to retirement annuities and other savings accounts.

“This is not a long-term solution to solve your cash flow problems – and definitely don’t be tempted to cash out as there are tax implications, but reducing your savings commitments for a few months may give you breathing space until you are back in a position to service your debts and continue investing and saving,” says Temba.

Make sure that as soon as you are in a position to, you reinstate all your investments and savings contributions.

4. Earn extra income

If you are really not getting on top of your expenses and you are exceeding your income consistently, you will need to look at other ways in which to earn extra income.

“Again this is not a long-term solution, but can help relieve the immediate pressure until you are able to cover your responsibilities again,” says Temba.

“Consider working overtime to earn a bit more income. Another possibility is to cash in leave days – if you have the option.”

Other ways to earn a bit more cash could be to rent out an extra room for a few months.

Don’t stop paying

“Don’t be tempted to miss or stop paying altogether,” says Temba. “Even partial payments show good faith, and interest will accumulate slower – helping you to catch up.”

However, partial payment isn’t a long-term solution, she says. If you are really struggling, speak to your bank. Admitting you need help as soon as you realise that you are heading into financial difficulty will go a long way to protecting your home.

“Your bank will make provisions for you to ensure that you keep your home. Repossession is the last resort, and a bank will assist you in every possible way to ensure that this doesn’t happen,” says Temba.

“There are a number of solutions that the bank can offer to help you if you are having financial difficulties, however, it is up to you to also proactively take steps to help yourself out of the position you have found yourself in.” Property24.com

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Dawn Properties’ chairman Walter Kambwanji

ZIMBABWE Stock Exchange-Listed property concern, Dawn Properties Limited, has shut down its operations in Bulawayo due to low business the Financial Gazette’s Companies & Markets (C&M) can report.
Sources at Dawn Properties told C&M that the company was going through a restructuring process and the termination was a result of prolonged loss making by the branch.
The move by Dawn is not surprising as many businesses in the country’s second largest city have been forced to shut down or relocate to the capital Harare due to viability challenges, leaving thousands of workers jobless.
Another factor that has led to the continuous closure of firms in the country, and Bulawayo in particular, is the low buying power of citizens, with experts saying this has contributed to industrial decline.
Contacted for comment, Dawn’s executive director, Brian Kashoni, requested written questions, which were sent on Thursday last week.
But Kahoni, later referred this newspaper to Walter Kambwanji, Dawn Properties’ chairman.
Kambwanji confirmed that Dawn Properties had shut operations in Bulawayo.
“The Board made the decision to close the Bulawayo office after a review of the business model,” said Kambwanji.
“ All units which were unable to operate profitably were closed. It was also decided that we would support our Bulawayo clients from our Harare office.”
With the rate at which firms are closing down or scaling down operations in Bulawayo, analysts say the city, which was once the country’s industrial hub, is facing massive de-industrialisation.
A significant number of tenants have huge arrears in rentals due to a depressed economy, a situation that has affected the property market.
Landlords have been forced to reduce rentals as the tenants’ default rate has reached unprecedented levels. This general decrease in retail rentals is expected througho and next year.
Brainworks Capital Management (Private) Limited now holds 61,65 percent shareholding in Dawn Properties Limited after acquiring a further 18,58 percent in April last year from African Sun Limited.
Although the group has a predominant tourism exposure owning properties in the tourism sector, including hotels such as Carribea Bay in Kariba, Crowne Plaza Monomotapa in Harare, Elephant Hills Resort and Conference Centre in Victoria Falls, Great Zimbabwe Hotel in Masvingo, Holiday Inn Mutare, Hwange Safari Lodge and Troutbeck Resort in Nyanga, Dawn Properties is also involved in property development activities.
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FINANCIAL services group, FBC Holdings, last week made a successful US$445 000 auction bid for a factory belonging to embattled Trinidad Industries’ after unpaid workers had secured a court order to attach and sell the property to recover money the company owes them in unpaid salaries.
But representatives of Trinidad workers this week were making frantic efforts to have the sale cancelled on the basis that the property had been sold for a song.
The winning bidder, FBC Bank, is an interested party in the saga as it has a US$400 000 bond against the immovable property, number 7 George Avenue, Msasa in Harare — so it would be paid ahead of any other creditor.
What this effectively means is that if the auction sale of the property —which has an open market value of US$1,4 million — is confirmed by the Sheriff of the High Court, the workers who initiated the sale with the hope of salvaging at least something of what the company owes them in unpaid salaries, would not get anything.
FBC Bank has a registered bond against the immovable asset to the tune of about US$400 000, a statutory obligation that has to be met before any other creditor is paid.
“We had hoped that the factory would be sold for at least US$1 million, so that the bond is paid and the workers also get paid,” Mavhuto Mlauzi, the disappointed chairman of the company’s workers’ committee, told the Financial Gazette’s Companies & Markets after the auction.
“What the factory has been sold for is barely enough to pay off the bond, which means workers will not be getting anything,” Mlauzi said.
The companies’ former 82 workers — including some who have since died during the protracted labour dispute — are owed a collective US$560 000 in salaries.
In the event that the FBC Bank bid is accepted by the Sheriff of the High Court, it would mean that the financial services group would pay the US$445 000, which money would return to it as part of the bond settlement, while the ownership of the multi-million dollar factory would be transferred to the banking group.
An FBC official at the auction said he had no authority to discuss the issue.
Both the ex-Trinidad employees and the company have 15 working days to challenge the confirmation of the auction sale on the basis that it could have been sold at an unreasonably low price, provided that they can provide evidence that a better buyer can be found.
It is this 15-day window period that the workers are trying to take advantage of to stop the sale.
Mlauzi said the workers had agreed to cancel the sale of the property and were engaging their lawyers to do that.
“Yes, we are going to stop the sale because the money realised is too little. We will have a private sale after we have stopped it,” Mlauzi said.
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The bank is also expected to assist local authorities in project preparation to bankability stage and in the process strengthening the case of obtaining bonds borrowing power certificates from the parent ministry.

THE  Infrastructure Development Bank of Zimbabwe is targeting to deliver 20000 stands by 2018 as part of efforts to contribute to the national target of 1.25 million stands.

Under ZimAsset, Government is targeting 330 000 housing units by 2018 however it will only deliver 25 000 units with the rest expected to come from other initiatives. The country’s housing backlog is currently estimated at 1.25 million, with the City of Harare alone standing at about 200 000 in 2015.

According to a draft Housing Sector policy which the bank is seeking stakeholder comments for, IDBZ is planning to introduce specific Housing Development bonds for targeted projects with clearly identifiable sources of repayment.

This will entail engaging external institutional investor institutions and development finance institutions (DFIs) such as Afreximbank, Shelter Afrique, PTA Bank, Development Bank of Southern Africa and others as a way of augmenting limited domestic resources.

The IDBZ’s Housing Sector Policy aims at providing a framework for the provision of inclusive, safe and sustainable low cost housing through financing of offsite and onsite infrastructure.

“The strategy seeks to contribute towards this national target by delivering around 5 000 serviced stands annually from 2015 to 2018, thus giving a total of 20 000 stands,” read part of the policy.

The bank is also expected to assist local authorities in project preparation to bankability stage and in the process strengthening the case of obtaining bonds borrowing power certificates from the parent ministry.

IDBZ also plans to spearhead the revival of the Municipal Bond for financially strong and disciplined local authorities as a way of complementing the limited budgetary resources set aside for financing bulk infrastructure development and rehabilitation. FinX

Planning to buy a home usually takes a long term-strategy, with many buyers having to either save for a deposit, assess affordability or scout for the perfect property to call home.

This is according to Richard Gray, Harcourts Africa Chief Executive Officer, who says then when the time finally comes and the country’s economy seems to be unstable – interest rates are higher, banks are implementing stricter lending criteria, doomsayers are warning against long-term investments, buyers could be caught in a funnel of information and be left confused and unnecessarily wary.

The local property market has shown relative resistance to economic instability and buyers continue identifying opportunities, he says.

Gray says the first thing buyers need to know is that if you can afford to buy, you’ve done your research, located a reputable agent, then this is the best time. High value property opportunities tend to become more available in times of economic uncertainty.

ooba, national bond originator, reported that in January of this year, 54% of applications received were that of first-time buyers, and with a home loan approval rate of 73% during that month, property remains attractive. Which proves that buyers are still interested despite market fluctuations.

“Opportunities for buyers present themselves in all sorts of places,” he says.

“For example agencies like Harcourts, who are on all four banks’ distressed sales panels, can introduce buyers to sellers who are selling their properties under the bank distressed sales programmes. These are normally realistically priced and the banks provide some incentives to buyers.”

Other opportunities seemingly resistant to the economic downturn have been in the affordable sector.

“If you’re thinking of buying a second home to let, and your affordability calculations are conservative, divulge your plans to your agent and keep an eye on properties in affordable communities,” says Gray.

“There are many prospects in the market. If you play open cards with your agent and have taken the time to carefully select an agency then this market can prove to be a great opportunity for a long term investment.”

To take note of though, he says the fundamentals apply across the board, no matter what the economic pressures are.

“Do your research. It is crucially important to keep an eye on property sales and listings in your areas of interest to take note of prices, trends and successful agents,” says Gray.

“Laying this foundation provides you with relevant information that will assist you in determining your affordability, community of choice, nearest amenities and which agent to pair with.” Property24.com

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GWERU’S mayoral mansion, a potential cash cow for the cash-strapped local authority, has been lying idle for over a decade, despite earlier plans to transform the facility into a lodge.
Council last year resolved that the mansion, which was last occupied by former mayor Sessel Zvidzai in 2004, would be transformed into a state-of-the-art lodge.
But plans to turn the property in the leafy suburb of Kopje into a cash generator stalled, with council now spending thousands in hotel accommodations for its commissioners.
Property in the mansion has allegedly been looted over the years.
Acting town clerk Edgar Mwedzi said council was no longer pursuing the idea of transforming the mansion into a lodge, but would rather let out the property to interested tenants.
“The idea we have now is to let out the mansion to anyone who is willing to use the facility,” said Mwedzi.
He said council was already negotiating with a potential tenant, hinting a deal would be finalised soon.
The mayoral mansion is one white elephant that Gweru has for years been urged to exploit at a time its coffers are running dry with dwindling streams of income to sustain the council’s 2016 budget.
“We had inquiries from the Judicial Services Commission who want to use the facility for the High Court, but we have a challenge because there is no parking space,” said Mwedzi.
“The issue of running water has also been a challenge in Kopje, a situation that has led many households to sink boreholes.”

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City of Harare spokesman, Michael Chideme

A NUMBER of property investors are finding themselves in a tricky situation where they incur huge outstanding municipality bills after purchasing immovable properties without conducting any due diligence exercise to check the properties’ standing with local authorities.
Investigations by this newspaper revealed that many property buyers find themselves in a situation where they are unable to complete the transfer of properties they would have bought either privately on the market or through public auctions in their names because of the outstanding municipal bills for rates that by law become their burden the moment they purchase the properties.
In some cases, so huge are the outstanding bills that they do not make the investments worthwhile.
A recent visit by the Financial Gazette’s Companies & Markets to an immovable properties auction sale conducted by the Sheriff of the High Court of Zimbabwe revealed that many buyers only discover the extra cost after they have made a purchase.
When an immovable property is sold, it becomes the responsibility of the purchaser to meet the costs related to the transfer of the property into their name.
When the purchase is made through a public auction, these costs include the auctioneer’s fees (five percent of the purchase price), conveyances charges (three percent) payable to lawyers handling the transfer, government’s stamp duty (four percent) and all outstanding municipal arrears related to the property before transfer of ownership is concluded.
It is this strict condition that the buyer should settle all outstanding municipal bills before the transfer process is concluded that has seen many investors who buy properties at public auctions being stranded after doing so in a hurry without doing any background checks with the local authorities.
At an auction conducted by a real estate agent recently, , the Sheriff of the High Court, Macdoff Madega, took his time to explain the risks that some property buyers take when they just bid for properties whose standing with local authorities they do not know.
He said the moment an investor buys a property, it becomes their responsibility to pay for all the outstanding rates due to council, which arrears have to be cleared in full before transfer is done, unless they make some sort of arrangement with the local authority.
This resulted in some prospective bidders insisting on knowing the properties’ outstanding rates bills before making their bids.
The same applies to properties sold privately on the market.
One of the buyers whose US$350 000 bid won Tanaka Power’s industrial complex in the Workington industrial area which was attached by the Infrastructure Development Bank of Zimbabwe, only discovered that the property owed the Harare City Council a whopping US$97 000 in unpaid rates. Realising that this amount, when added to the bid price and other costs would end up costing not less than US$500 000, after the end of the sale, the buyer started making enquiries about how he could withdraw his bid, but it was too late.
At the same auction, FBC Holdings —whose representative had done his homework — made a winning bid of US$445 000 for troubled Trinidad Industrial Private Limited’s factory in Msasa, after factoring a US$20 000 municipal bill that the property owed to the City of Harare.
City of Harare spokesman, Michael Chideme, confirmed that it was a legal requirement for rates to be paid in full before ownership of an immovable property changes hands.
“Before title can be passed there is need for rates clearance certificate, which can only be granted if debt is cleared. It would be in the interest of the buyer to clear debt if they want title,” Chideme said.
The Bulawayo City Council is suing Amakhosi Theatre Productions after it failed to pay service rates for more than two years, resulting in the bill ballooning to US$86 000.
In the event that Bulawayo’s former cultural home—which is now being used as a bus terminus—is sold to an unsuspecting buyer before the outstanding bill is settled, that bill becomes the buyer’s burden, making it more costly to the purchaser.
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Property held for five years or more before being sold for profit may not always yield enormous profits, but seldom loses value.

INVESTING in market shares can be a lucrative venture, particularly when market conditions favour the investments you’ve made, but investing in property is an alternative to be considered.
This is according to Charles Vining, Seeff’s managing director in Sandton, who says property held for five years or more before being sold for profit may not always yield enormous profits, but seldom loses value. It is perhaps not as exciting or lucrative as share trading in some instances, but it is a “safe bet” in the medium to long term.

“Using Kumba Iron Ore as an example – it may have recovered in recent weeks, but it would not have been a good investment at all if you had purchased R3 million worth of shares five years ago and sold it earlier this year,” he says.

“Five years ago on 25 February 2011 it would’ve cost R467 for a Kumba share, but the trading price was a mere R67.50 per share on 25 February this year. Had you invested R3 million at the time and sold it again on 25 February this year, you would have suffered a loss of R2.5 million, only being able to sell the same shares for R435 000 in total.”

He says African Bank is another example of how investing in shares can have unfavourable results – R3 million in African Bank shares, if purchased five years ago, have a zero value today.

Conversely, Vining says a bank like Capitec performed well and shareholders are now enjoying great capital gains.

“Of course investing in shares will sometimes pay off. In this instance, Capitec shares acquired five years ago at R3 million had a market value of around R8.9 million in February this year. This sort of investment is high risk, but can also be high reward,” he says.

“One must mention that the shares of many blue-chip companies hold their value and enjoy steady gains. Staying with banking as an example, Standard Bank has enjoyed a stable share price if you take a five-year view – shares on 25 February 2011 were trading at R100 and on 25 February 2016 were trading at R108. Money invested using this example would have been protected and enjoyed some growth.”

To illustrate property as an alternative investment source, Vining references a well-known estate in Morningside where clusters sold for an average price of R2.8 million in March 2011.

“A house in the same estate is selling for R4.9 million today, resulting in a capital gain of R1.9 million in five years.”

Vining says property in the suburb of Bryanston shows similar results. Cluster homes in a popular estate sold for an average of R3 million each in 2011, and those same properties now sell at an average price of R4 million.

“Over the medium to long term, property investors usually enjoy capital gains, and often earn rental income during the period that they hold an investment property for. It is unusual to sell a property for less than you bought it for five years prior,” he says.

“In Sandton, sectional title is particularly good as an investment. When investing in larger property, the investor must be prepared to keep the property in good condition over a few years. Anywhere central to Sandton is a good investment, especially suburbs within a five to 10km radius.”

Vining says it’s important that property investors work with reputable agents and understand the pricing dynamics in their suburbs of interest so that they don’t buy ‘too high’.

Also, while they may make some improvements to the property, it’s of paramount importance that investors don’t overcapitalise and raise the expected price of the property too far above the ceiling value of similar properties in the area.

Samuel Seeff, chairman of the group, says while overall property sales activity and price growth is expected to slow further this year in light of the overarching economic climate, he expects the market to remain resilient, especially in high demand areas such as Cape Town’s Atlantic Seaboard and City Bowl, Southern Suburbs, Sandton and key areas in Pretoria.

While it may well be that many areas, especially the middle-class areas, are beginning to feel the pinch, the feedback from our branches is that in most areas, demand and sales activity for the first quarter of this year is still much on par with the same period last year.

“In any event, when we look back at how top-end areas have performed since the 2007/8 downturn, we see excellent growth and resilience and that should underscore any decision as to whether to invest in property,” says Seeff.
“Advice to investors is to keep in mind that while bricks and mortar are excellent investments, it requires a long approach. If you are looking for return on investment and quick wins, you are likely to be better off putting your money into property investment funds.” Property24.com

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The auction sale is subject to confirmation by the Sheriff within a week, in the event that the company does not contest it, after which ownership would be transferred to the buyer.

THE Sheriff of the High Court has auctioned Kingstons House, the headquarters of Kingstons Holdings, in central Harare, after ZB Bank secured a court order to attach and sell the property to recover a debt of more than US$300 000.
The property — which has an open market value of US$1,8 million, was sold for US$1 170 000 to an unidentified bidder of Asian origin, one of the two that showed keen interest in the multi-purpose four-storey structure.
Drew Fraser International Estate Agents conducted the auction before a crowd of more than 300 people at the Railton Sports Club in Harare.
The auction sale is subject to confirmation by the Sheriff within a week, in the event that the company does not contest it, after which ownership would be transferred to the buyer.
Even in the event that Kingstons tries to save the property from being sold by ZB Bank, the property would still be exposed to seizure by any of the other 100-plus creditors that are owed more than US$5 million by the embattled firm.
Among other Kingstons’ creditors is the Zimbabwe Revenue Authority which is owed over US$500 000, Old Mutual (over US$300 000) and the National Social Security Authority (over $200 000).
The struggling company, which is majority owned by government, is in the business of selling books, magazines, newspapers and a variety of educational and other stationary.
Meanwhile, the premises of collapsed agro-implements dealer, Tanaka Power, a company owned by one of Zimbabwe’s leading indigenous businessmen, Mike Chidziva, have been attached and sold after the 82 year old businessman failed to repay an undisclosed loan to the Infrastructure Development Bank of Zimbabwe.
The multi-purpose, double storey complex, sitting on a 4000 square piece of land located along Nuffield Road in Harare’s Workington industrial area, was last month auctioned for US$350 000, exactly what the auctioneers, Drew Fraser International Real Estate, had valued it at.
Chidziva is just but one of the latest of several high profile Zimbabweans to have their assets attached and sold after failing to meet their financial obligations as economic hardships worsen.
Among prominent Zimbabweans who have had their assets seized to satisfy judgment debts are former chief executive officer of Premier Services Medical Aid Society (and also former Zimbabwe Football Association chairman), Cuthbert Dube; businessman and politician, Temba Mliswa; president of the Zimbabwe Commercial Farmers’ Union, Wonder Chabikwa; former Zimbabwe Broadcasting Corporation chief executive officer, Happison Muchechetere; former legislator and opposition politician, Job Sikhala; and businessmen, Cecil Muderede, Simba Mangwende, Tawanda Nyambirai and Bernard Mutanga.

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The Buffalo Range airport tower

GOVERNMENT has started renovating the Buffalo Range Airport, about 150 kilometres south of Masvingo.
Refurbishment of the airport is part of ongoing programmes aimed at improving accessibility to the country’s major resorts, including Kariba, Hwange and Victoria Falls, where the US$150 million facelift of the Victoria Falls International Airport is nearing completion.
Transport and Infrastructure Development Minister, Joram Gumbo, told reporters in Harare recently that renovations had started at Buffalo Range Airport, the gateway into the southeastern resorts, such as the Gonarezhou National Park and other private conservancies.
“We are looking at opening our airports,” Gumbo said at the unveiling of the African Airlines Association general assembly, which will be held in Victoria Falls in November.
“Buffalo Range is one of them. Renovations have started at Buffalo Range Airport. In Kariba we have to make sure the airport is renovated. We are working at improving facilities at Joshua Nqabuko Nkomo International Airport,” Gumbo said.
Renovations of the airports have been on the cards for many years.
Two years ago, government said it planned to expedite the projects in order to allow national airline, Air Zimbabwe (AirZim) to spread its domestic destinations and improve tourist arrivals.
But since then, three private domestic airlines have been launched in Zimbabwe.
These might be interested in servicing the domestic routes, depending on whether enough traffic would be available.
fastjet Zimbabwe, the low cost airline, launched last year, while another budget carrier, flyafrica.com, is already operating in the country.
Rainbow Airlines, which launched last year, is expected to start flights in Zimbabwe soon.
In August 2014, AirZim resumed flights to the resort town of Kariba, beginning the difficult task to revolutionarise the destination.
“We will continue with the launching of new routes,” said former Deputy Minister of Transport, Petronella Kagonye, at the launch of the flights.
“Our strategy is that our airline will work on servicing domestic routes and grow outward from there. Destination Zim is poised to enjoy growth. Hwange and Buffalo Range will be reconnected by AirZim. Plans are at an advanced stage to re-launch the routes.”
AirZim had previously connected the resorts, dropping them at the height of bloody farm invasions and economic and political destabilisations which roiled the industry at the turn of the century, sparking global travel warnings that discouraged tourists. AirZim discontinued consistent and reliable flights into Kariba in 1996 after it ceased to make business sense expending on a loss making route.
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Office parks remain the biggest segment contributing 35% to the property portfolio and for 2015 its contribution to revenue, at 35% matched its size.

PEARL posted a set of financials largely showing a standstill position for the year ended 31 December 2015 when compared to 2014. Revenue slipped 3,53 percent to US$8,4 million, weighed in the main by declining occupancy levels and pressure on rentals especially for the retail segment (both CBD and Suburban) of the property portfolio. This was aggravated by property expenses which soared 19.62% to $1.13m on the back of increasing voids and the accompanying costs of maintaining vacant buildings. Net property income resultantly declined 2.73% to $8.4m translating to a rental yield of 7.05%, down from 7.50% for 2014. Pearl had revised downwards the value of its investment portfolio by 4.10% to $135.02m, which was however not enough shoring up rental yields.

Office parks- office parks remain the biggest segment contributing 35% to the property portfolio and for 2015 its contribution to revenue, at 35% matched its size. Performance was strong with occupancy of 96% and rentals of $9.95/m² up 2.05% compared to 2014. Management attributed this to very strong demand for one of its office parks where UN agencies are keen to take up space. Further to that, corporates in Zimbabwe have shown preference for out of town office space, hence this stellar performance is likely to be sustained.

CBD offices– CBD offices remain the problem area with very low occupancies of 50.35%, (down 3.67%) and increasing pressure on rentals that averaged $9.75/m² (down 0.61%). The huge vacancies imply high operating costs which in turn translates to lower rental yields. CBD offices have thus been the biggest driver to the decline in yields and management is looking at reconfiguring CBD office space to smaller suites that can suit SMEs in a bid to mitigate this hemorrhage. Expectations are however that this segment can only reawaken once the economic fortunes of the country as a whole improve, businesses become profitable and demand for office space soars.

Industrial- The Industrial segment performed reasonably well with occupancies remaining high at 92.97% albeit having declined marginally from 93.51% in 2014. The albatross for this segment is the low rentals which are the lowest in the portfolio. For 2015 however, rentals did improve, adding 8.97% to $3.28/m² and providing 16% of group revenue. The sector is yet another GDP play whose fortunes are inextricably tied to general economic conditions in Zimbabwe.

CBD retail – CBD retail suffered from vacations in 2015 with occupancies ending the year 16.79% down at 77.48% and rentals similarly declining to $9.14/m² (down 4.09%). Like CBD offices, the segment is in need of reconfiguration of lettable space to make it palatable especially to small businesses. Management is alive to this fact and intends to pursue this strategy in the event that tenants who can take whole units are not secured. CBD retails has room for improvement if such innovations are undertaken.

Suburban Retail-   Deflationary pressures that weighed down on retail sales translated to a decline in rentals for the segment by 6.83% to $9.27 despite occupancy remaining very high at 99.49%. This state of affairs is unlikely to change in 2016 and the risk remain high that rental collections will once more decline. Like all the units that are suffering, a turn in general economic fortunes for the country is the only viable stimulant for improvement in the segment. FinX
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Investing in maintenance and repairs is not only money wise but could also be crucial to a sale.

WITH house prices increasing and the economic growth forecast at an all-time low, now’s the time to invest in your home so you can capitalise on its value.
This is according to Ariel Pheiffer from SA DAMP, who says whether you’re selling now or in the future, home improvement projects pay off.

Ariel shares some value-adding tips…

1. Create space

Ariel says to achieve this, homeowners should knock out a non-structural wall or remove a kitchen island. He says anything that opens the space and creates a sense of flow in the house will generate a response from buyers who can afford to be choosy.

He says for a minimal financial outlay, you could transform the feel of the house.

2. Landscape

Tangled trees and unkempt bushes can obscure views, darken interiors, promote mould and block a good look at the house.
Ariel says landscaping is one of the top three investments that yield the biggest returns. According to a 2007 survey of 2 000 agents conducted by HomeGain in the US, an online real estate marketing site, an investment of around $500 or R8 000 in landscaping could bring a return of four times that. This could make a significant difference in the price.

Nobody likes to spend money, but landscaping might be the most important thing, even if owners have kept up the house.

If buyers can’t see what they’re getting, they just move right on, and if neglected, Mother Nature may go wild at a considerable cost.

3. Let in the light

Lighting, the number one item on the 2007 HomeGain survey, which includes everything from a dimmer switch to the increasingly popular sun tubes, noticeably enhances a home’s appeal.

Use reflective material to funnel natural light from a globe-capped hole cut in a rooftop, down through a ceiling fixture into a room. Ariel says sunlight is great, and moonlight is even better – natural light is your best option and will add value.
A few other ways to light things up include fixing broken panes, making sure the windows are open and installing lights that use motion detectors that turn themselves off.

Ariel says remember that high wattage bulbs make small spaces feel larger, and soft lighting brings warmth to empty spaces.

4. Don’t put off care and maintenance

Before thinking about an expensive upgrade for your kitchen, address the basics, he says. Homeowners should insulate, repair plumbing leaks, replace rusty rain gutters, inspect the fireplace and septic system, replace or repair leaky windows, install storm doors and weed the flower beds.

These kinds of fixes go a long way toward value, he says. People think they have to put in a lot of money to see a big difference, but they really don’t.

Investing in maintenance and repairs is not only money wise but could also be crucial to a sale.
According to Ariel, agents from across the country say the houses that get attention in this buyers market are in tip-top shape. He says what’s important in this market, now more than ever, because there is so much inventory, is that the houses that sell are in pristine condition and are priced for the market.

5. Go green

Research published by The Appraisal Journal estimates that energy savings add 20 times the annual savings to the value of your property.

Energy savers make your house more desirable, says Ariel. When renovating, he says consider greening your home because now, for the first time in five years, buyers are asking about the utilities.

Today, we are in a situation where energy consumption is a critical concern and we need to consider options to add value through energy savings initiatives.

6. Home begins at the front door

Don’t underestimate the power of a front door. Many people make up their minds in the first 7 seconds of entering a house.

Ariel says surveyed agents recommend a working door bell, and don’t forget an overhang such as an awning or portico above the front door. If you don’t have a way out of the rain or shelter from the sun while you’re fumbling for your keys, you’re missing out.

7. What’s under your feet?

Don’t undervalue the materials you’re standing on. Ariel says 94% of real estate professionals recommend spending money on floors. But it doesn’t have to cost a lot of money, it just needs to look good.

He says small projects with a big impact include repairing broken tiles, patching damaged floor boards and tossing out wall-to-wall carpeting.

In some cases, however, a new floor is in order. Let’s face it, he says an ugly floor is an eye sore, and any self respecting buyer will walk away from a house due to the finishes.

A tight economy means that buyers are looking for value for money, and an ugly or damaged floor is hard to hide.

8. Easy bath upgrades

Agents say spiffing up the kitchen and bath is a sure bet for adding value to your home. These kinds of improvements can get expensive.

Ariel says it may not be economical to do a major renovation if you’re trying to spend as little as possible before putting a house up for sale. But some upgrades are cheap, easy and fast, especially when it comes to the bathroom.

He says homeowners can replace frosted glass with clear glass, clean the grout, remove rust stains, apply fresh caulk, update doorknobs and cabinet pulls, replace faucets, and install a low-flush toilet.

9. Neutral wall colours

If you’re getting ready to put a house on the market, don’t allow walls with chipped paint to go unmaintained. If you need to do more than just a touch up, Ariel says choose neutral colors.

He says get out of your personal taste as buyers want to be able to project their own ideas onto a space – and sellers can help with toned-down wall colour.

10. Get a durable exterior wall finish

It goes without saying that if your house looks bad, with cracks, mould, bald pebbledash etc., it will lose a significant part of its value. Homeowners should install weatherproof exterior wall coating, which will add much more value to the house than what they initially paid for it.

According to Ariel, buyers want to know that the house will be standing there after you leave. He says they want to be reassured that it will still be standing 15 years down the line.

Presenting documentation to show what you have done to the property will add a lot of value and may possibly ensure that you get your asking price. When it comes to renovations, homeowners should also use a contractor worth their guarantee and do their research, he says. Propery24.com

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