It is clear that 2008 was a dismal year for the economy and
financial markets.

Absa this week released the December 2008 numbers for mortgage advances, which showed that advances by monetary institutions slowed to 13,2% from 14,9% in November, based on data that this was significantly lower than the high of almost 31% year on year that was recorded in October 2006, and was also the lowest year-on-year growth rate recorded since August 2003.

The bank said the slowing growth in mortgage advances last year was to a large extent driven by the sharp drop in new mortgage loans approved by banks in respect of residential property.

The residential segment has the biggest share in total mortgage advances. Data available for new residential mortgage loans approved up to the end of the third quarter of last year showed a decline of 30% on a year-on-year basis was released by the South African Reserve Bank.

With a 2% decline in nominal residential property prices and a 2.5% drop in interest rates projected for the year, there has seldom been a better time to buy.

Property investors who are not as severely influenced by economic factors will find a lucrative market for investing, and reaping the rewards as the downward trend in residential property prices turns skyward again.

Valuation of your Property

The single most important factor in the sale of your property is its valuation, in order to achieve the best possible price. There are so many different aspects of a home's value—age, type and room count bedrooms/bathrooms, size, upgrades, etc. The list is pretty
extensive. Professional advice will eliminate the guess work and help you determine a realistic price so that you can get your home sold at the highest price in the shortest period of time!

Presentation of your Property

If you are planning to sell your home you need to make it stand out from all the others that are on the market.

Often sellers overlook this simple but key part of the marketing pro- cess. At a basic level, the property should be kept clean and tidy. Curtains should be drawn to allow in as much light as possible and any unnecessary clutter put away.

It makes no sense spending a lot of money on a new bathroom when the roof is leaking. Also take care of minor repairs and spruce it up!

Choice of Agent

Choosing the right agent and planning the most effective advertising campaign is the last step before launching your property onto the market.Take your time when searching for a realtor. You basically want someone who is knowledgeable about selling in a buyer's market and someone with an assertive personality. Important is to ensure that the agent is fully accredited with a NQF4 qualification!

Zirkia says “ buyers who make clever and smart decisions will reap benefits no matter what the state of the market is. The same goes for investing in real estate. Change your strategy with the changing market. I think any of us no matter what our background can still make money in real estate. Taking risks you can afford, and not overstepping your financial means”. Definition of a home as I understand - an anchor in a community where a family can live, work, and play.

Over the past decade, a home became an exciting investment, more a place to buy and sell than to live in. It seems the emphasis now is on “investment” reflecting periods of inflating values; easy credit and profit, in fact some people made their living by buying and selling homes or “BUY TO LET”.

Buying a property to let is one of the most popular forms of property investment and which is regarded as one of the most widely accessible ways of investing.

But beware - Buy to Let or buy to regret

Property is a long term investment and should not be considered in any other way.

Always treat buy to let investment as a medium to long term project - it's usually best to have at least a 10-year outlook.

It is important not to be influenced by your own preferences - remember you won't be living there! Ensure the property matches the local market needs.

Many people rush into buying a property to let without giving any thought as to what financial gains they would like to receive in return for their time, money and the risk they take on. Not all homes are easy to rent. There are a number of variables that determine whether a home has potential as a rental.

Buy to Let property is a great investment opportunity which when done properly and with care, can yield great returns over the short, medium and long term.

An inexperienced investor may push forward into a property that might be very risky and not return the kind of cash they expect in either appreciation or cash-on-cash return.

Investing in residential property is not without its risks and some considerable drawbacks remain. The main risk is that if you get your sums and property selection wrong, you could find that your buy to let investment' is now a buy you regret.

Take the risk out of your property transactions, SAVI Property advisory services can assist in

Market research and trends analysis

Reports on the market value of property

Valuations for mortgage purposes

Independent advice on buying and selling property

Feasibility evaluation and research for developments
and investments

Depreciation schedules on residential investment property

Determinations for rental disputes

Asset valuations for financial reporting

Compensation assessments for compulsory acquisition

Valuations for building insurance

Valuations for division of family or business property assets.

The residential property market has taken a big knock as consumer spending dwindles because of the global financial crisis.

The number of residential building plans approved between January and November last year declined by 17.8 percent year-on-year as the property market continued to take strain.

Jacques du Toit, property and vehicle markets analyst at Absa, said housing construction was expected to decline further on the back of lower demand and a bleak economic outlook for this year.
The latest figures from Statistics South Africa show a continued slowdown in residential property activity, with only 77998 building plans — valued at
R17.85-billion — approved by local authorities between January and November last year.

Du Toit said this figure was 25.5 percent down year-on-year, compared to
R23.98-billion recorded for the same period in 2007.

The number of residential buildings completed showed a decline of 8.9 percent to 64473 units — valued at R14.83-billion — compared to 70766 units the previous year, at a total value of R16.38-billion.
Makwe Masilela, analyst at Nehawu Securities, said the depression in the property market was also reflected in the poor performance of construction stocks on the JSE.

Aveng is down to R26.35 from R51.15 last January, while Murray & Roberts is trading at R43.50 from R88. Wilson Bayly Holmes- Ovcon has dropped from R112 to R99. Pretoria Portland Cement has also shed R11.50 to R27.95 from R39.50 last January.

Zirkia Olivier CEO of SAVI (Valuation Company) exposed to the property market and business since 1986 says prices are simply normalizing.

On the supply side of housing, there remains a sizable overhang of unsold homes on the market. The supply of both new and existing homes is very high by historical standards.

We are definitely in a buyer's market and although this is good news for buyers, it is bad news for sellers. If you find yourself in a dilemma to sell your home even though it may not be the best time, see to it that your property catches the eye.

A successful sale is the combination of

correct pricing,

choosing the right estate agent and

intelligent placement in the market.