An A – Z for Home Buyers

Buy the smallest house in the best area that you can afford if you want to invest in Real Estate.. You will get your money back and more!

This is the advice of Suzi Orman, American personal finance guru. But, given the spiraling costs of entry level homes 'in the right area' you may have to simply opt for what you can afford  regardless of area. However, to get added value for money, you must look for potential.

IS IT A TRUE INVESTMENT?

To gauge potential for high returns when you buy now to sell later, you have to look at a house creatively. Try to visualize possible changes to an existing property that will increase its appeal to the market.

HOW TO ADD VALUE TO THE OUTSIDE APPEARANCE

Just by making the following changes you can add thousands in value to your house, say national property sellers Homenet.

A coat of paint  outside first. Most homes improve dramatically with the right colour scheme; avoid dark greens, blues or bright yellows on large expanses of wall.

Cutting and trimming back existing shrubs, trees and overhanging branches often creates an airy feel to the property.

A new garden layout or garden path leading to the entrance will also do wonders.

STRUCTURAL CHANGES

The following features are often neglected:

» A proper, neat and freshly painted garden  

   wall or perimeter palisade fence makes a 

   huge difference; with a remote controlled 

   security gate, it wins first prize.

» A tarred or paved driveway perks up a 

   home immediately. It says a lot about the

   house and its owner.

» Enclosing a stoep or balcony creates more

 spacing.

Look for a place where you could later build a granny flat. Sometimes a garage adjoining the house can be turned into a flatlet that you could rent out. The more people to pay the bond, the better. A pool is not a must unless the neighborhood dictates it; rather consider an extra garage.

CONDITION OF THE HOUSE

Evaluate the property in terms of what you will have to spend to get it up to an acceptable standard. Pre-purchase property inspectors, Inspectors SA, recommend that a visual inspection should include the following:

» Type of building material used and roof

   construction.

»Floor areas, carpets which need replacement, broken tiles?

»Dampness, inspect walls for paint peels  

   and bubbles.

» Fascia boards and woodwork.

» Gutters, pipes for rust and blockages.

»Plumbing, sanitary ware and water           

  pressure in taps. Check drains.

» Cracked or skew walls.

» Pool problems.

» Broken windows, handles, locks and gates.

» Paintwork and plaster cracks.

IMPROVEMENTS TO INCREASE VALUE

If you wish to develop a property even further, you should look at things like:

» An up-market front door.

» A tiled entrance hall.

» Granite worktops in kitchen and built-in wardrobes to the ceiling.

» Tiles in the kitchen and bathrooms tiled to the roof.

» Window boxes, false window shutters or window canopies.

Look at the area norm and lift the house slightly above that. But watch that you don't overspend on items that do not truly enhance the value of the property

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