Renting, building and buying Flashcards
(13 cards)
What must be taken into a account when rent, buy or building a house?(6)
size of fam
lifestyle of fam
stage of life of fam
financial circumstances
location of prop
bond approval
person renting called?
person letting out property called?
tenant/lessee
landlord/lessor
what is a lease
a legal agreement between a landlord and a tenant that allows the tenant to use the property for a set period of time in exchange for rent.
what must you do before you start building a house(5)
when the building is complete who registers it and what do they do?
- house plans must be drafted by architect
- plans must be submitted to municipality to be approved
- choose contractor with a good rep
- get financing for building the house=home loan/bond
- have building inspectors regularly check the building operation
NHBRC (National Home Builders Registration Counsel)
helps make sure that homes in South Africa are built safely, legally, and properly, and that home buyers are protected from poor workmanship.
what must you consider before buying a house (5)
the location
the safety-burglar bar, safety gates
needs of fam
available finances
general condition of prop(roof, ceiling)
Renting ads(5)
- more affordable
- monthly rent fixed
- tenants dont pay property rates or service charges
- tenants arent responsible for maintenance of prop
- tenants have mobility-move out if given notice
renting dis(5)
- rent increases annually
- no investment in property
- difficult to find suitable prop to rent
- tenants arent allowed to make structural changes to prop
- owner can delay in fixing faults
building ads(8)
- experienced owner-builder can build house cheaper than buying one
- house can have latest designs and tech
- appliances, paint, flooring can be selected to owners taste
- house can be designed to suit the owners needs and taste
- house can be completed according to owners own time schedule
- fewer immediate repairs because house is new
- Choose the location you want to live
- house is built in developing area, therefore increase in value in resale for future
- complete privacy
building dis(5)
- risk of faulty construction and poor design
- cost more than buys a house
- construction is delayed=inconvenience + stress for the owner
- managing and supervising subcontractors can be difficult
- expensive to establish a new garden
ads of buying full title prop(5)
- buyer becomes the legal owner of the entire prop
- prop can be used as a security for a bank loan
- good investment or asset
- profit can be made by renting out the house
- prop can be left to fam
disads of buying full title prop(5)
- owner is responsible for security and safety of house
- owner is responsible for maintenance and repairs
- owner is responsible for payment of property rates and service charges
- could be difficult to sell the house if you have to move unexpectantly
- could be a bad investment if the area deteriorates
ads of buying sectional title prop(5)
- profit can be made by renting out the pro
- prop can be left to fam
- safter as the units are closer together and there is better security
- enjoyment of communal facilities eg pool and gardens
- maintenance costs are less compared to full title prop
disads of sectional title prop
- more expensive to buy than to rent
- owner must comply with decisions of corperate body
- less privacy that full title prop
- owner must pay monthly levy covering property rates, service charges, insurance and maintenance work
- long-term financial commitment
