Saturday Open Thread

It's the Satuday Open Thread!

Green Point: Asking Price Down R480 000

Back in Feb 2010 a 62m2 apartment in one77 Green Point had an asking price of R1 900 000. A year later a 61m2 apartment in the same block has an asking price of R1 420 000. That's nearly R500 000 down in asking price.

Saturday Open Thread - The Repo Rate: Going Up?

It's the Saturday Open Thread. This weeks topic: Interest Rates - Stable for 2011 or will we see a bump up in the Repo Rate before the end of the year?

Saturday Open Thread: Property Disasters

It's the Saturday Open Thread. This week's topic starter: Property Disasters - What do you know out there that have been utter real estate disasters. My contribution is Senator Park which still requires an armed guard when the landlords collect the rent.

Brooklyn: The Palms - Specuvestors Hoooooo!

Palm Springs is a newish development that was unfortunately built in Brooklyn. There are 354 units and of those 146 belong to a Trust, CC or (Pty) Ltd. Can you say 'specuvestor heaven'?

Reader JT writes:

Bought a unit here in 2008 to let it sleep for a few years for about R 450 000

Initial levy payable to Permanent Trust has now been increased by 50% from R 300 to R 502.

Reason for this is that they never accounted for the behaviour of the low budget/illegal immigrant/5 people in a single room scenario – not to mention the gym equipment being vandalised and communal areas falling apart.

I currently let my unit out for R 3200 a month

It was a bad choice as an investment – time will tell if it works out

So bought for R450 00 and currently reanting for R3 200 gross, with levies includes it's R2 700/month net.



If you bought it for cash you're earning 7% return. If you didn't put at least R150 000 down (that's a 33% deposit) you're losing money and judging by the way the levies are going up, will continue to lose money for a while.

However there seems to be a slight problem with the rates accounts. JT continues:

Turns out the developer never properly registered the units in individuals names – so the R 4000 in rates that I paid up to Feb last year to what I was told was my account is now frozen and I have to prove that I paid it.

I apparently have a new account that is in debt to the tune of R 4500 – but I have still to receive a rates statement.

Just a little legal note, if rates are not up to date the council will not issue a rates clearance certificate and no sale can proceed. If you need to sell you're going to have to get the bottom of that rates story.

Saturday Open Thread: Estate Agents

It's the Saturday Open Thead. This week's topic: "Estate Agents? Yeah! or Meh."