Banks in South Africa ensure that the interest rates on home loans are as competitive as possible – while there is a limit to how low they can ‘discount’ interest rate offerings. For home buyers ‘shopping’ around for the best available home loan product it does pay to remember this when considering where to apply for financing for your home.

Eskom has recently applied to administer a tariff increase of 16% annually for the next five years, an increase that will overtake most South Africans’ wage increases. The increased electricity cost will also send the prices of food and other living expenses soaring – making it increasingly important for those buying orrenting property to reprioritize the features they require in a home.

The coastal areas of Durban have been showing a steady increase of property sales each month as buyers realise that the outlying regions – particularly Amanzimtoti - are only a short drive and 20km away from Durban itsel

Sellers need to consider the impact the prevailing economic climate will have on the sale of their property. It is, however, a general rule of thumb in real estate is that the right property at the right price will sell at any time. As a seller you may be able to help the process along by listing your house in the summer months. This is because the real estate market tends to see a higher level of interest and activity from buyers from October and on towards the end of the year. The last part of the year is for many people often accompanied by salary hikes, annual bonuses and the decision to upscale or downscale their lifestyles for the upcoming New Year.

The process of transferring property can be both onerous and costly, and many sellers – and buyers – are ill-prepared for this vast amount of paperwork. It is thus vitally important that before you sign that sales agreement you are aware of how the transfer process works as well as the implications this will have on your budget.

In part one we dealt with the first 14 ‘need-to-know’ terms in the world of property purchase or sales from ‘amortising loan’ to ‘gearing’. It can be daunting if one doesn’t understand the processes and terminology involved in real estate transactions, so we’ve tried to explain some of the most common terms as simply as possible.

In the world of real estate there are often words and terms that come up in the process of buying or selling property that may seem unintelligible to the average person. Here is a list of common terminology you will come across as well as the simplest explanations and definitions.

When not managed properly, mortgage debt can place an enormous amount of stress on homeowners. A fair amount of homeowners are ignorantly labouring under the weight of a home loan that is well in excess of their home’s current value. This may be because of the fact that interest rates are at such a low and they are comfortably able to afford their monthly instalments. As such it doesn’t seem to be a big deal that their homes are currently a liability instead of an asset. Some owners will find themselves back in equitable territory when the values of their homes increase. Some, however, are not that lucky and may feel that the only way to sensibly reduce their indebtedness is to sell their home.

The capital city of the Northern Cape, Kimberley, is going to open the doors of the new Northern Cape University in 2014. While the local planning will include university residences it is unlikely that this housing will be sufficient to accommodate the influx of new students.

In the wake of the recession that hit South Africa hard from 2008 to 2009, the market and consumer confidence seems to be slowly but surely strengthening. Even though the annual growth rate of the country is expected to remain below 3%, there appears to be more confidence in the recovery of economic stability. The question remains though – is there a light at the end of the tunnel? Analysts fear that there is no prospect of world markets returning to ‘normal’ any time soon.