Selling House

When it comes to selling a home there is more to it than just putting the property on the market, sellers need to have all of their compliance certificates in order before taking the step of put their home up for sale.

We discuss which certificates sellers will need to have in order to ensure a smooth, hassle-free property transfer process:

Electrical Certificate

It is compulsory for homeowners to be in possession of a valid Electrical Certificate of Compliance (ECOC) when selling their home. ECOC’s are valid for a period of two years. This document verifies that the electrical work and installations that have been completed on the property are up to standard in accordance with the regulations as required by the South African National Standards. When a home is sold, a valid ECOC is required before the transfer of ownership can take place.

An electrical certificate will cover the distribution boards, all wiring as well as earthing and bonding of all metal components, which include antennae’s and satellite dishes. It will also cover the socket outlets, light switches and all isolators for fixed appliances. However, an electrical certificate will not cover any fixed appliances such as the geyser, stove, motors, fans or underfloor heating.

Sellers should opt to have the home inspected before they put their home on the market, as this will give them the opportunity to remove any TV antennae that have been replaced by satellite dishes, as well as remove any incorrectly installed electrical items such as extension leads, temporary lighting, water features or garden lights.

Electric Fence

In addition to an electrical certificate of compliance, homeowners who’ve had electric fencing installed as a security measure, will require an Electrical Fence System Compliance Certificate. It is vital to note that an ECOC and Electrical Fence System Compliance Certificate are two separate and different documents. The Electrical Machinery Regulations of 2011 issued under the Occupational Health and Safety Act 85 of 1993, places an obligation on the user of an electric fence system to have an electric fence system certificate of compliance. This requirement does not apply to a system that was installed prior to 1 October 2012. As with an ECOC, this certificate will be required where an addition or alteration to the system has been undertaken or where there is a change of ownership of the premises on which the system exists. The electric fence system must be certified by an approved installer and the certification is valid for two years.

Water Installation

In 2010 the City of Cape Town introduced a new water by-law, which stipulates that a water installation certificate of compliance must be issued before transfer of a property can take place. A water installation certificate is an area-specific by-law that only applies to properties sold within Cape Town or where the City of Cape Town is a municipal authority.  The law requires that a new certificate must be issued each time the ownership of the property is transferred.

The intent of this law is to limit water wastage as much as possible as well as to protect the buyer from latent defect claims and high water bills due to leakages.

This certification checks that the hot water cylinder installation complies with standards set by SANS 10252 and SANS 10254. It also ensures that the water meter registers when a tap is open and stops completely when no water is drawn. It also ensures that no storm water is discharged into the sewerage system and that there is no cross connection between the potable water supply and any grey water or groundwater system which may be installed among other things.

While it may be assumed that the water installation certificate covers all aspects of the plumbing – it does not. It is important for buyers to bear in mind that the water installation certificate is not a plumbing certificate and therefore does not fully cover all aspects of the home’s plumbing such as waste water. This certificate also does not cover any leaks on waste or sewer water or drainage.

Gas Compliance

On 1 October 2009, Regulation 17 (3) of the Pressure Equipment Regulations (OHS ACT of 1993) came into effect, which states that a Gas Certificate of Conformity must be issued when there is a change of ownership. This certificate is valid for a period of five years.

The gas certificate is to ensure that gas components are in a safe, working condition and do not have any leaks. It also certifies that the emergency shut off valves have been installed in the correct positions. There are several other aspects that the gas certificate covers such as ensuring that gas components are correctly positioned in relation to electrical points and that outside cylinders are the required distance from doors, drains, windows and electrical appliances.

Beetle Certificate of Clearance

While there is no law that requires a seller to provide the buyer with a beetle certificate of clearance, it has become standard practise and is often a condition written into the sale agreement in many coastal areas. In the past many financial institutions refused to provide bonds to buyers without proof that the property had been inspected for these insects and today, many banks and insurance companies still require a beetle clearance certificate when property is transferred to new ownership.

Beetle certificates are not usually required for sectional title properties, or where the property is situated inland where beetle/woodborer problems are less common than in coastal areas.

The beetle clearance certificate is only issued once the property has been inspected for any visible signs of wood destroying insects and deemed to be free of any such insects.

Sellers should try to be as prepared as possible and get all of the necessary documentation in place before putting their home on the market to ensure that they have less to worry about during the sale process.

SOURCE: blog.privateproperty.co.za

The bougainvillea is blooming, the shade from that tree you planted all those moons ago is deep and satisfying, and your thoughts have turned to selling. But is summer the right time for that?

The estate agents agree: it definitely is.

Although it’s one of the most hackneyed pieces of wisdom from residential estate agents, it nevertheless remains true that spring and early summer are ideal times to sell. And summer is better because the house projects better at that time of year.

Kerb Appeal

Kerb Appeal, your first impression when you draw up to the kerb at a potential new home – is fundamentally important, so it makes sense for sellers to pay attention to making the house and garden look as neat and as attractive as possible.

As they say – spend a little to gain a lot.

Again – this is something that the agents all agree on.

It’s exceptionally important, and sellers cannot be reminded too often that every Rand spent on smartening their home will be a good investment in the long-term. Such initiatives as replanting the garden to give it more colour, upgrading and cleaning the swimming pool, and, inside the house, cleaning all carpets, curtains and tiles can and do make a huge difference to visitors’ impressions.

And there’s another benefit to summer, too: The good weather and long evenings make it easier for people to get out and look at homes and to meet estate agents.

Turnover

The figures prove the truism – more properties are sold in summer than in winter – but that the long, warm, sparkly days of summer are only part of the reason for this.

Summer is also the busiest time of year in coastal regions. This is when the towns receive the largest influx of overseas visitors and South African holidaymakers, and many of them are looking to invest in areas such as the Garden Route – which is an extremely attractive investment destination.

It is pointed out, though, that almost everyone selling their home in the present climate should find that they’ve been able to achieve above inflation growth on their home’s value – and that you’ll probably find yourself “in a position to make a significant profit.”

Consistent Price Growth

Absa’s house price indices report for November showed that prices of medium- and large-sized homes have returned a more-or-less consistent growth path since early 2012 – despite a slowdown during 2014.

Average prices in these two categories are now R1 173 000, and R1 818 000 respectively – which represents nominal growth increases of 7% and 8% an annualised basis.

When you compare these prices to those of a decade ago, the old message is reinforced – investing in a home for your family to live in is the wisest move anyone can make.

SOURCE: www.privateproperty.co.za

You show a buyer around a property and on paper it seems like a perfect fit – the right price, the right number of rooms and the right location. But when push comes to shove, they don’t make an offer and you’re left scratching your head wondering why.

The truth is buyers can be put off by seemingly small flaws. Fortunately these deal-killers can be easily rectified by working together with the seller to eradicate them.

Deal-killer #1: Dirty Bathrooms and Kitchens

Dirty bathrooms and kitchens are usually the first reason given by buyers for them viewing a property unfavorably.

When a buyer views a property they try to imagine themselves living in the property and a lack of cleanliness and hygiene can be a real barrier to this. Fortunately this is easily fixed with a bit of 409 or Clean Green and some elbow grease.

Deal Killer #2: Odors

Viewing a house is mainly a visual experience but that does not mean that house hunters turn off their other senses during a viewing. And there is nothing that can turn a buyer off more quickly than nasty smells at the property.

It might be a tough conversation but you need to point out that Fido or their 40 a day cigarette habit has left the house smelling a bit funky.

Advise the seller to clean carpets and curtains thoroughly, air the property out by leaving doors and windows open and maybe even lighting some perfumed candles.

Deal Killer #3: Clutter

Clutter makes the home seem smaller than it really is and gives the impression that the house lacks storage space. Sellers should consider moving larger items into storage temporarily and pack away all ornaments and trinkets. Besides making the house look bigger, a clutter free home also enables the buyer to imagine what their things would look like in the space.

Deal Killer #4: Little Malfunctions

Small malfunctions in an otherwise beautifully presented house may also stop buyers from making an offer. The faulty light switch, the cupboard door that comes off in their hand, the leaky tap and the broken stair that they trip over may not cost a lot to repair, but can create the impression that the place is falling apart.

Walk through the property with the seller and point out all the little fixes that need to be done. Explain to then why the relatively low cost of the repairs could be the difference between selling the property and it remaining on the market. If you can, recommend a reliable handyman to save them the hassle of having to find one themselves.

Deal Killer #5: Untidy Communal Areas

If the outside and communal areas of an apartment is dirty or unkept, the buyer might question how well it is run by the management company. In fact, buyers might even make the decision not to buy while still in the hallway outside. Admittedly, the seller can’t control what happens in the communal areas but they can get it vacuumed and cleaned on the days that viewing are booked so that it looks presentable.

SOURCE: http://blog.privateproperty.co.za/

If you are selling your house, and don’t have approved plans, you could find yourself in a lot of trouble. And if you are buying a house, and don’t ask whether the seller has approved plans, you might end up inheriting some very expensive problems.

Legal Implications of Selling a House without Approved Plans

Since the law requires everybody to have plans drawn up in a particular manner, and approved by the local authority in their area, it stands to reason that every house will have plans. But this is not always the case, and a lack of approved building plans is clearly a major problem for many people buying and selling houses and other buildings in all parts of South Africa.

Hardly a day goes by that we don’t get asked questions on this website that relate to issues concerning plans. Sometimes people only discover that there are no plans years after they have bought a property, either because they eventually want to do alterations, or because they want to sell. Other times people find at the point of sale that a house they are buying does not have plans, and they want to know whose responsibility it is to have plans drawn up retrospectively (“as built”).

The reality is that if alterations and additions have been carried out on a property without municipal (local authority) approval and the property is then sold, it can become quite a complex legal matter.

An article by STBB Smith Tabata Buchanan Boyes that we have referenced gives some clarity about the implications of selling a house without approved plans.

Are Building Plans and Building Approval Always
Required for Houses?

As STBB explain, the National Building Regulations and Building Standards Act  specifies the need for building plans and approval. More specifically, it is the local authority that governs exactly what can be done in terms of its zoning regulations and the NBR. So it is they that give approval (or deny it) for all building work and renovations on ALL properties. “Minor building work”  is viewed differently and most municipalities will be more lenient when it comes to minor building work.

The Act states that the municipality, at its own discretion, may be approached for a relaxation of the necessity to obtain approval of plans. But note that this must be asked for and approval received in writing. Read our page on minor building work  for more information.

How the Issue of “Voetstoets” Affects
Building Approval and Plans

The agreement made between two parties when a property is sold will in most instances include a voetstoets clause. Essentially this clause indicates that the purchaser accepts the risk relating to defects existing at the time of the sale, patent or latent (but not visible). The exceptions to this clause are instances where the seller deliberately and fraudulently conceals latent defects from the purchaser, that he or she was aware of at the time – in which case the seller will remain liable for these defects. But of course the purchaser will have to provide evidence that the seller knew what was wrong.

Note that the position is somewhat altered if the Consumer Protection Act applies to the agreement between the parties, e.g. where the seller is a developer.

Our law takes into account that any property with buildings erected without municipal approval is a property with a latent defect. The voetstoets clause will normally cover latent defects and a seller will not automatically attract liability if he sells a property with unauthorised building works. But if the seller knows that there are no plans and he organized and did the renovations himself, and he deliberately does not disclose this fact (with the intention to defraud the purchaser), the seller cannot hide behind the voetstoets clause.

Problems That Can Arise

The lack of approved plans could lead a municipality to refuse to allow any further renovations a purchaser might have had planned. In the worst case scenario the municipality could order that the illegally erected structure or additions be demolished.
A (latent or patent) defect that is of a significant nature, and affects the use and enjoyment of the property, does allow the purchaser certain remedies. The most far-reaching of these is cancellation of the agreement, which he is entitled to do, if the purchaser can prove that the defect is so serious that he would not have bought the property had he known this. Other courses of action include the reduction in purchase price or a claim for damages, depending on the seriousness of the defect and the specific circumstances involved.

In many cases an offer to purchase a house will be dependent on the purchaser obtaining home-loan finance from a bank or other institution. And in most instances, (though not all), the financial institution will want to see up-to-date approved plans before finance will be granted. If the plans lodged with council do not match the house as it stands, then the sale could fall through and set the seller’s plans back for quite a length of time, together with additional costs to rectify the problem.

The local authority is also entitled to levy fines on any “illegal” building work that was done without approval.

There is more on the “Voetstoets Clause” and the CPA (Consumer Protection Act) here: the-consumer-protection-act/the-cpa-the-voetstoets-clause

SOURCE: http://sans10400.co.za/

As more and more areas experience inventory shortages, demand for property is expected to continue rising. This, coupled with the fact that many areas have seen a positive price growth over the last few years, could be swinging the property market in the seller’s favour.

Although the market conditions are slowly giving the seller the advantage, there are still a few key elements that they’ll need to adhere to in order to ensure that their property is sold for the best possible price, within the shortest period of time.

While fewer properties on the market make it a much more competitive environment for buyers, and they could soon see sellers in a far better position during negotiations, this doesn’t mean that they should sit back and wait. When it comes to getting the optimum result from the property sale, he says sellers still need to apply some basic but vital principles to the property sale process to achieve the best possible outcome.

Here are the top five tips to help sellers achieve the best result when selling their home.

1. Research Your Agent Options

Many home sellers often make the mistake of choosing an agent that offers them the lowest commission rate or the highest price for their home. While these elements are a consideration, they should not be the only factors that the decision is based on as they can negatively weigh on the transaction in the long run. It is advisable to choose an agent that has experience in the specific area in which the property is situated. Another aspect to take into consideration is the agent’s company. Is it a well-known, reputable brand with the support of a large network? It is also vital that the agent presents the seller with a market plan providing the seller with steps as to how they plan to get the property sold.

2. Don’t Forget the Small Print

It is important that sellers are fully aware of what they are legally binding themselves to. For this reason sellers should go through each and every point in their contract with their real estate agent and discuss any issues or aspects of the document that they are unclear on. There are various mandate options, each of which have prescribed responsibilities for both the agent and the seller. Being unaware of the terms and conditions in the contract and what the seller is responsible for in a property sale transaction could be a costly lesson to learn.

3. Don’t Push Up the Price

Possibly one of the most vital elements of any property sale is correctly pricing the home. The irony is that over-inflation of the property’s price will more than likely result in the seller settling for a much lower price than what they may have if they had priced the home according to fair market value in the first place. Overpricing will drive buyers away from the property and towards others in the area that are priced correctly. If a buyer can get a property in the same neighbourhood for less money, they will opt for that property over the more expensive one as they will feel like they’re getting a bargain. Homes with inflated prices take far longer to sell, which can negatively affect the perceived value of the home. The estate agent should provide sellers with a Comparative Market Analysis of the area, which will help them gauge the correct price the home should be marketed at.

4. Showcase the Home at its Best

It goes without saying that a well-kept, tidy home will be far more appealing to potential buyers than one in need of care and attention. The focus should be on the property and the features that it offers, rather than the items lying around the home or dishes in the sink. Presentation is a key factor that rests on the seller’s shoulders. Part of this would include making all the necessary repairs and ensuring that everything is in good working order.

5. Skip Out on Show Days

Regardless of whether the seller is friendly and accommodating, having the seller present on show days could make buyers feel uncomfortable to explore. With the sellers not at home, buyers feel free to roam through the property and ask the estate agent questions. It is therefore best to leave the hosting to the estate agent. Applying these principles will assist the seller in achieving the desired result of selling their home for a fair price, within a reasonable time frame. Looking at the property objectively and seeking the advice of an experienced real estate professional as to what improvements can be made to the home will also add to the seller’s chance of success, he explains.

A home that is correctly priced and well-maintained will find the right buyer in today’s market.

SOURCE: www.property24.com

All too often, conveyancers, the Deeds Office or the City Council are blamed for the delays in transferring properties. In many cases this criticism is well founded, however, often delays can be prevented if sellers take certain steps before they sell their property.

Ulrik Strandvik, a senior partner at Gunston Attorneys, says sellers are often not aware of these steps. He advises any person contemplating selling their home to check that these steps have been taken and to prepare themselves before they become an issue.

Strandvik says the idea that they can somehow be sorted as the sale progresses is almost invariably wrong – in most cases, going ahead without observing these essential issues may delay and quite possibly jeopardize the sale agreement.

He shares some helpful tips…

– Ensure that all rates are paid up. The City Council will not issue a rates clearance certificate until all outstanding rates and services have been paid, together with the payment of advance rates and services.

A property cannot be transferred without a valid rates clearance certificate.

All too often, the seller is in arrears with their rates or cannot afford payment of the advance amount required. The seller will then either have to obtain bridging finance or take a short-term loan from their bank, family or friends. This will no doubt delay the transfer.

– If the seller has no bond, he or she must ensure that they have the property’s original title deeds. If there is a bond, the original will be lodged with the bank.

Title deeds have an unfortunate tendency to be filed somewhere and then simply disappear. If a title deed gets lost, the conveyancer will need to apply for a copy at the Deeds Office, which costs money and takes time.  As the seller, be sure to take note of the whereabouts of your original title deed and, if you cannot find it, immediately instruct a conveyancer to apply for a registration copy at the Deeds Office to avoid potential delays.

– If the home is bonded, ensure that all the payments on the bond are met and paid up and, equally important, give the bank sufficient notice that you intend to sell and to cancel the bond. If this is not done, the bank is entitled to charge a penalty for early termination of the bond.

Furthermore, if you, as the seller, are aware that your bond settlement, together with all other costs, will be more than the buying price (and result in a shortfall situation), make the conveyancer aware of this fact as soon as possible so that the necessary steps can be taken with the bank.

– If the unit is part of a sectional title complex, make sure that you have a copy of the latest financial statements (annual accounts) and the management and conduct rules of the body corporate before you sell your unit. Often a buyer would want sight of these before they put in an offer, but more importantly, the bank that the buyer has applied to for a bond would require these before they grant the loan.

In some cases, the body corporate’s financials are not up-to-date and this may lead to the deal not going through. So it is important, as a seller, to do your homework before you sell your unit.

– If the seller is in a sectional title unit, gated community or any similar development where levies are payable or certain living and design guidelines apply, it is essential to sort out with the homeowners association or body corporate or whatever other body any issues that may exist before signing a sale document.

More often than not, there is a title deed requirement that such an association must consent to the sale. If there is a dispute between the association and the seller, they may be entitled to withhold such consent until the dispute is resolved to their satisfaction. Therefore, sellers should make sure that they either have a clean slate with their body corporate or homeowners association or that they take the necessary action to sort out the issues before the property is sold. It would be unfair to the buyer if transfer was delayed due to an existing dispute between the seller and the association.

– Make the necessary plans to ensure that you move out of the sold home on the agreed date and do not try to delay this, especially at the last minute. The problems late handovers can cause to the buyer, who has probably vacated his previous premises on time, can be serious.

The above list is not exhaustive, but deals with those issues that regularly cause delays. These steps are also not applicable to all sellers in every situation. The underlying principle is that a prepared seller is an essential ingredient to a smooth and successful transfer process.

SOURCE: www.property24.com

Home staging is about highlighting your property’s strengths, downplaying its weaknesses and appealing to the greatest possible number of prospective buyers.

Pack away extra bits and pieces and present a spacious, tidy and fresh home.

Imagine a first date without the makeup or perfectly sculpted hair; without dressing up and looking your best. When you put your home on show, think of it as a first date with the prospective buyer. Here are a few tips on how to make a good first impression…

1. Clean! Clean! Clean!
And we’re not just talking about a quick once-over like you do regularly. It’s time for a deep clean. Do you ever wipe down your light switches? Dirt and grime can build up and, while it’s not easily noticeable, it can add to the general feel of the home.

Start tackling all those little things you’ve been meaning to do around the house. Bulbs that need replacing or doors that get a little stuck. Things we’re quite happy to live with in our own homes, can often detract from that ‘I can move in here tomorrow’ feeling we want from the buyer.

2. Play dress-up

Reposition sofas and chairs into cosy conversational groups and place pieces so that the flow in a room is obvious. Not only will this make the space user-friendly, but it will also open the room and make it seem larger.

Move furniture, artwork and accessories around. Just because you bought an armchair for the living room doesn’t mean it won’t look great in the bedroom. Perch a little-used dining room table in front of a window, top it with accessories and use it as a writing desk or library table.

3. Furniture groupings

There’s a belief that rooms feel larger and are easier to use if the furniture is against the walls, but that isn’t the case. Instead of doing things the ‘old’ way, furnish your space by floating furniture away from the walls.

Reposition sofas and chairs into cosy conversational groups and place pieces so that the flow in a room is obvious. Not only will this make the space user-friendly, but it will also open the room and make it seem larger.

4. Declutter

Pack away extra bits and pieces and present a spacious, tidy and fresh home. That old treadmill that doubles as a drying rack? Consider asking a friend to store it for a while and open up the space you have.

One of the things that make homes look warm and welcoming is great lighting.

5. Room transformations

If you have a room that only gathers junk, repurpose it into something that will add to the value of your home like a reading room, a study or meditation room.

6. Home lighting

One of the things that makes homes look warm and welcoming is great lighting. Don’t depend on just one or two fixtures per room. Make sure you have three types of lighting: ambient which is general or overhead lighting, task lighting which can be achieved through pendant, under-cabinet or reading lamps and accent lighting, which is normally found on tables and walls.

7. Finish with a beautiful scent

As a finishing touch, add a beautiful scent. Studies have shown that a fresh scent of citrus, vanilla or lemon can help endear your home to a potential buyer.

Be careful not to over-do your scent though. Further studies have shown that the old favourite smell of baked goods can do more harm than good by distracting a potential buyer rather than engaging their attention.

Stick with the classic, simple scents and add a touch of freshly cut flowers to brighten up the space.

SOURCE: www.property24.com

As with any purchase, a portion of all registered property sales ends up in SARS’ coffers. Thus, the impact of additional costs, over and above the purchase price of a home, becomes so much more significant for, especially, first-time buyers. When buying a property, the cost of the transfer duty or the VAT, whichever is applicable, is calculated on the purchase price and becomes due prior to the registration of a sale.

Transfer Duty For Existing Property

The sale of an older or an existing property attracts transfer duty, so that the new ownership can be registered at the Deeds Office. Specific applications exist for private individuals, businesses, closed corporations and family trusts, or when a home-based business takes up more than 50% of the total land space of a property.

First-time buyers benefit from purchasing homes priced below R600 000, which are exempt from transfer duty. When considering overall finance costs associated with buying a house, it is worth calculating possible savings through comparisons.

For instance, when paying 3% duty for a house priced between R600 001 to R1 000 000, or 5% between R1 000 001 and R1 500 000, and 8% on the balance of values exceeding R1 500 001.

VAT On Newly-Built Structures

Vendors’ Tax of 14% is included in the price of a property and applies to newly-built structures that are purchased directly from a developer, such as a sectional title unit in a complex or a house in a private estate. Conveyance attorneys say the tax status of a seller determines whether transfer duty or VAT is payable by the purchaser. Different measures apply, depending on whether a seller or a purchaser, or both including that of auction sales, are registered as tax vendors.

Transfer Costs Or Transfer Duty

The breakdown of transfer costs relate to the cost of registration of a property, irrespective of the purchase being made through an agent or a developer or privately. Transfer duties and transfer costs are not one and the same thing, and transfer costs are often included in a developer’s costs.

Justine Joubert, partner at Rob McWilliams Attorneys says that transfer duty is payable to SARS upon transfer of the sale of a property, whereas transfer costs represent a conveyancing attorney’s fees for completing the transfer process on behalf of the seller and purchaser. Other taxes not due at the time of transfer of a property, but which require provision in a personal income tax return for the applicable assessment period, include Capital Gains Tax. Consulting a property expert can lead to considerable tax savings when buying your first and most affordable home.

SOURCE:  www.privateproperty.co.za

Are you pressurised by family and friends to downsize or perhaps your own difficulty to cope with a big empty house and large garden? Do you often ask yourself: Do I really need all this stuff?

The best time to decide on how to live your life once you’ve retired is when both partners are still alive and are still mentally and physically active.

The decision to downsize sets you on an emotional rollercoaster and can often leave you with more questions than answers. Get some tips…

What does downsizing mean?

Downsizing means simplifying your life by reducing your possessions and moving to a smaller home. It is often inevitable especially when you’re no longer able to physically or financially keep your home.

As you get older, it becomes more difficult to maintain a large home and garden, and all the possessions you’ve accumulated over your lifetime start to become a burden.

1. The reality of timing

Time is a critical consideration. You need to be emotionally ready to downsize.

The best time to decide on how to live your life once you’ve retired is when both partners are still alive and are still mentally and physically active.

If a spouse suddenly dies, the responsibility of sorting through the shared belongings and selling the house ultimately falls on the remaining spouse and the children.

The older you become, the more difficult it becomes to move. Moving costs money, so it is important to downscale before your move and only move the stuff that you really want in your new home. Enlist the help of your children in sorting and purging, but often it is wiser to get professional organisers to assist, eliminating having to deal with all the family attitudes and emotions.

2. Selling your home?

Selling your home can be an emotional experience as it has become a huge part of who you are.

– Consider what you’re going to do with the money from the sale. Are you going to invest it and rent or buy a smaller space? See an investment advisor for advice.

– What would the return on investment or the sale of the smaller property be in a couple of years’ time?

– Consider expenses, levies, maintenance, security and potential hidden costs for the new home. Smaller does not necessarily mean cheaper. Do your homework to ensure that you really save in the long run.

3. Shed your excess baggage

You have spent much of your life accumulating possessions. This is the most difficult part of downscaling, and finding that the things you’ve valued all your life, no one actually wants, that the things you thought would bring in money, just have to be given away to charity. All of this is emotional and can wear you down.

The decision to keep the possessions should be based on the necessity of the items and not their importance to your past.

– Gift any valuables, heirlooms and sentimental items to your heirs, minimising estate duties later.

– Anything that doesn’t fit into your new home, which neither you nor your children want, can be given to a charity or sold to unburden your heirs from excess stuff when you’re gone.

4. Assess your needs

Consider the size of your new home carefully. Decide how you want to live your daily life and the activities you intend on participating in, remembering your hobbies, health and interests. Where would your children stay if they came for a visit? Would you still be able to entertain friends?

5. Decide where you want to live

Do you want to live in a smaller independent house, a retirement cottage or an apartment in a retirement complex? Is it important to live close to a child or intimate friends?

Do you prefer living in the mountains, at the coast or in the big city?

Before you move, ensure that you’re absolutely happy about the climate and area where you want to live out your last days.

6. Do your pricing

Make sure that your expectations of bolstering your retirement by downsizing are realistic. Take the financial and mental impact into account. Moving takes a big chunk out of your wallet and is emotionally draining. You might even have to invest in new furniture to fit into your smaller home. You might need to make upgrades to accommodate wheelchair access or a suitable equipped shower.

Consider living a downsized lifestyle before being forced to. Downsizing can make your life simpler, easier and cheaper. Live the life you’ve imagined with less maintenance, less stress and more money to do the things that you enjoy.

SOURCE: www.property24.com