Lake Properties Pro-Tip

Lake Properties, Cape Town is a young and dynamic real estate agency located in Wynberg, Cape Town. We offer efficient and reliable service in the buying and selling of residential and commercial properties and vacant land in the Southern Suburbs including Bergvliet,Athlone,Claremont,Constantia,Diepriver,Heathfield,Kenilworth,Kenwyn,Kreupelbosch, Meadowridge,Mowbray,Newlands,Obervatory,Pinelands,Plumstead,Rondebosch, Rosebank, Tokia,Rondebosch East, Penlyn Estate, Lansdowne, Wynberg, Grassy Park, Steenberg, Retreat and surrounding areas . We also manage rental properties and secure suitably qualified tenants for property owners. Another growing extension to our portfolio of services is to find qualified buyers for business owners who want to sell businesses especially cafes, supermarkets and service stations. At Lake Properties we value our relationships with clients and aim to provide excellent service with integrity and professionalism, always acting in the best interest of both buyer and seller. Our rates are competitive without compromising quality and service. For our clients we do valuations at no charge

Sunday, 23 November 2025

What to Look for in a Property Before You Buy

What to Look for in a Property Before You Buy

Buying a property is exciting, but it is also a commitment that can easily become expensive if you overlook the wrong details. Whether you’re a first-time buyer or upgrading to something bigger, you need to know exactly what you are walking into. Here is a practical, human-centred guide to help you assess a property with confidence.

1. The Location: The One Thing You Cannot Change

Location remains the single biggest driver of property value. A beautiful home in a declining area will always struggle, while an average home in a strong location will hold value.

Look at:

How close you are to schools, transport, shops, major routes, and medical facilities.
The safety and general feel of the neighbourhood.
Traffic patterns, noise levels, and whether the street is busy, quiet, or a cut-through.
Planned future developments — malls, roads, rezoning — that can affect value.

If the area doesn’t feel right, do not force the deal.

2. Structural Condition: The Real Cost Hides in the Walls

A fresh coat of paint means nothing if the building itself is failing. This is where buyers get caught with hidden repairs after transfer.

Pay attention to:

Cracks in walls (straight cracks are often cosmetic; jagged or widening cracks are concerning).
Damp marks, mould, and musty smells.
The roof — look for sagging, leaking, missing tiles, or signs of patchwork repairs.
Plumbing issues such as slow drainage or weak pressure.
Electrical issues like outdated DB boards or exposed wiring.
Uneven floors, sticking doors, or slanted ceilings.

If you see anything suspicious, get an independent inspector. It’s a small cost compared to a massive future repair.

3. Legal and Compliance Documents: Don’t Get Caught After Transfer

The paperwork matters. After the property transfers, every problem becomes your problem.

Check:

The title deed for restrictions, servitudes, or conditions.
Approved building plans — the house must match the plans on file.
The zoning and what it allows or restricts.
Whether the seller has up-to-date compliance certificates (electrical, plumbing, gas, beetle where relevant).

Skipping this step is one of the most common buyer mistakes.

4. Price and Market Value: Is the Property Actually Worth It?

Don’t get emotionally attached to a property before checking if the price makes sense.

Compare:

Recent sales of similar properties in the area.
Price-per-square-metre.
How long the property has been on the market.
General market conditions — is it a buyer’s or seller’s market?

Sometimes a fair price simply isn’t a good price.

5. Layout and Practicality: Does the Home Actually “Work”?

A home can be beautiful but poorly designed for daily living.

Look at:

Whether the bedrooms are placed sensibly.
If the living areas flow naturally.
Kitchen layout and workspace.
Condition and style of bathrooms.
Natural light throughout the home.
Space practicality — yard size, garage space, storage.

A functional home keeps long-term satisfaction high and resale value strong.

6. Security: A Non-Negotiable in South Africa

Security features directly influence desirability and insurance premiums.

Check:

Burglar bars, gates, and alarm systems.
Electric fencing, perimeter walls, and CCTV.
Whether the area feels secure and well-lit.
Controlled access for complexes or estates.

If the property feels unsafe now, it will feel twice as unsafe once you live there.

7. Ownership Costs: Budget Beyond the Bond

The bond repayment is only one part of owning a home.

Plan for:

Monthly rates and taxes.
Levies if it’s a sectional title or estate.
Insurance costs.
Regular maintenance and repair expenses.
Any renovations you will want to do.

Make sure the full picture fits your financial reality.

8. Future Potential: Can You Add Value Over Time?

A good property today should still be a good property five or ten years from now.

Evaluate:

Whether you can extend or renovate.
Space for additional rooms, studios, or rental flats.
Area growth — is the suburb improving, stable, or declining?
Whether younger buyers are moving into the area (a strong indicator of future value).

Good potential protects your investment long-term.

9. Neighbourhood Feel: The Part Buyers Often Overlook

Spend time walking or driving through the area at different times.

Consider:

Noise levels during evenings and weekends.
How neighbours maintain their homes.
Activity on the street — kids playing, people walking, or constant traffic.
The overall community energy.

A neighbourhood tells you as much as the house itself.

10. Red Flags: Walk Away When These Pile Up

Pay attention to:

Sellers refusing inspections.
No approved plans.
Serious structural cracks.
Damp everywhere.
Overpricing.
Poorly run or financially unstable body corporates.
A sense that the seller is hiding something.

Trust your instincts. Pressure buying leads to regret buying.

Lake Properties Pro-Tip

Before making an offer, schedule a second viewing — alone or with a trusted advisor — and view the property as if you are trying to find faults. The flaws you uncover during that second look are usually the ones that cost buyers the most after transfer.

Call to Action

Ready to explore the best investment opportunities in Cape Town?

Contact Lake Properties today and let our experts guide you to your ideal property.

If you know of anyone who is thinking of selling or buying property,please call me

Russell

Lake Properties

www.lakeproperties.co.za

info@lakeproperties.co.za

083 624 7129

Monday, 10 November 2025

How to Negotiate the Best Price When Buying a house in South Africa

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How to Negotiate the Best Price When Buying a Home in South Africa — fully elaborated, in plain human terms

Buying a home is exciting — and stressful. Negotiation is where the dream meets the numbers, and small moves now can save you hundreds of thousands of rand (or at least give you far better value). Below is a step-by-step, practical, human guide you can actually use — with examples, scripts, and exactly what to include in paperwork. I’ve written this like I’m sitting beside you with a coffee, not lecturing from a textbook.

1. Start with the right mindset

Negotiation isn’t a fight — it’s a problem to be solved together. You want the house; the seller wants a fair outcome. Treat the other side with respect, be firm about your limits, and keep emotion out of the decision-making. Calm + preparation = power.

2. Do real homework (not just a quick Google)

Know the market around the house you want:

Comparable sales: Look for houses that sold in the last 3–6 months in the same suburb (same number of bedrooms, similar stand size, condition). Those are your best price guides.
Days on market: If the house has been listed for months, the seller is likely more flexible. If it sold within days, expect competition.
Price history: Has the seller dropped the price previously? Repeated drops usually mean willingness to negotiate.
Local drivers: New schools, planned developments, sectional title levies, municipal rates increases — all affect price and leverage.

The more precise your facts, the more credible your offer.

3. Get bond pre-approval — it’s negotiation gold

A bank pre-approval (bond pre-approval) says you are serious and capable of paying. Sellers and agents treat pre-approved buyers differently — often prioritising them. If two offers arrive and one buyer is pre-approved, the seller will usually pick the cleaner, faster transaction even at a slightly lower price.

4. Make a fair but strategic first offer

Don’t insult the seller with a tiny lowball; don’t overpay because you’re anxious. A sensible rule:

In a balanced or buyer’s market: start about 5–10% below asking (adjust for condition).
In a hot seller’s market: you may need to start closer — 2–3% below or even at asking.

Always include a short, professional justification: “Based on comparable sales and the cost of the roof repairs we observed, we offer RX.” That shows you’re reasonable and informed.

Example script for a written offer:

“We submit an offer of R1,450,000 payable in cash/bond, subject to inspection and finance approval. This offer reflects recent comparable sales in the area and the estimated cost to replace the roof and kitchen appliances.”

5. Use inspection findings to adjust price (or ask for fixes)

Include a subject-to-inspection clause in your Offer to Purchase (OTP). If the inspection reveals problems, you can either:

Ask the seller to fix specific items before transfer, or
Ask for a reduction in purchase price to cover repair costs, or
Ask for a credit at transfer so you can arrange the repairs yourself.

Make sure any agreed fixes or price adjustments are written into the OTP. Verbal promises are worthless at transfer.

6. Smart paperwork: the Offer to Purchase (OTP) matters

In South Africa the OTP is the legal vehicle — get it right.

Include clear clauses for:

Deposit amount and paid-by date
Finance clause (if bond is needed) with a realistic timeline for bank responses
Inspection/structural/pest clause with deadlines
Occupation date and possession terms (who pays rates and levies from when)
Fixtures & fittings list — exactly what stays and what goes
Suspensive/conditional clauses (e.g., “subject to the sale of buyer’s property” — be careful, this weakens your offer)

If you don’t have experience drafting OTPs, get a conveyancer or an estate agent you trust to check the wording.

7. Consider creative concessions — price isn’t the only lever

If the seller is firm on price, you can ask for value in other ways:

Inclusion of selected furniture or appliances
Early occupation (if seller needs to move out before transfer) or delayed occupation (if you need time)
The seller to pay for certain certificates or minor repairs
A shorter or longer occupation date that helps their plans

Often sellers will trade these extras instead of dropping price.

8. Use timing and psychology

Make the seller the hero: “We’d like this to be easy for you — we can transfer by X date if that suits.” That can win hearts.
Don’t show desperation: If the seller thinks you’ll pay any amount, you lose leverage.
Stagger offers thoughtfully: If your first offer is rejected, consider a single measured increase — don’t keep raising small increments. Show you’ve reached your limit.
Best and final: If competing offers exist, ask for “best and final” from bidders — but use this only if you’re ready to close.

9. If a bidding war starts — know when to step back

Bidding can push a price past fair value. Decide ahead of time what the property is worth to you (including possible renovation costs) and do not exceed that number. Walk away if the price goes beyond your financial comfort — other properties will come.

10. Use an experienced local agent or negotiator

A good estate agent knows:

The local market nuance,
How the seller likes to negotiate,
How to craft OTP clauses to protect you,
When to push and when to step back.

Agents are worth their commission when they save you money or protect you from legal missteps.

11. Financing and costs you must plan for

When talking numbers, include:

Bond registration fees
Transfer duty (if applicable)
Conveyancer fees
Rates and taxes clearance certificates
Moving costs and immediate maintenance

These increase the true cost to you — don’t let an apparently cheap purchase blindside you at transfer.

12. Negotiation phrases and scripts you can use

Here are short, polite lines that work in real conversations or emails:

“We’re very interested — based on recent sales and the repairs needed we’re offering RX. This is a clean offer with bond pre-approval and a 10% deposit.”
“Would the seller consider including the built-in kitchen appliances? That helps us quite a bit and keeps the offer level.”
“If you prefer to keep the asking price, we’d ask that the roof be fully replaced before occupation, or for a RXX credit at transfer.”
“We can be flexible on occupation date if that helps — transfer on or before [date] is fine for us.”
“We’re pre-approved and ready to move quickly — would the seller accept RX if we sign within 48 hours?”

Keep it short, factual, and friendly.

13. When negotiation fails — what to do

If you and the seller can’t agree, remain courteous. Sometimes sellers come back after a week or two (they’ve relisted or had other offers fall through). Keep a polite line open: “If circumstances change, please contact us.” You might get a second chance.

14. Legal & ethical notes (practical but important)

Never misrepresent your financial status — this damages trust and can invalidate deals.
Make sure all agreements are in writing (OTP and annexures).
Use a registered conveyancer for transfer — they will check the legal title, rates clearance, and ensure proper transfer.
Avoid “subject to sale of buyer’s property” clauses unless absolutely necessary — they weaken your position.

15. Final checklist before you sign

Bond pre-approval received (if needed).
Independent inspection report obtained and any concessions agreed in writing.
OTP reviewed by lawyer/agent for clarity on occupation date, fixtures, and conditions.
Total costs calculated (transfer duty, conveyancer, bond registration, moving, immediate maintenance).
You have your walk-away price firmly set.

Lake Properties Pro-Tip

Always negotiate from a place of preparation and options.
Do your comparables, get pre-approved, and set a hard top price before you make an offer. If the seller won’t budge on price, ask for extras that reduce your immediate costs (appliances, repairs, early occupation, or a transfer credit). A reasonable seller will often trade something to keep the sale moving — and that “something” is often worth more to you than the last few rand you tried to shave off the asking price.

Call to Action

Ready to explore the best investment opportunities in Cape Town?

Contact Lake Properties today and let our experts guide you to your ideal property.

If you know of anyone who is thinking of selling or buying property,please call me

Russell

Lake Properties

ww.lakeproperties.co.za

info@lakeproperties.co.za

083 624 7129

Friday, 31 October 2025

Should You Buy Property During a Market Slowdown?

🏡 Should You Buy Property During a Market Slowdown?

When the property market slows down, many buyers hit pause — waiting for things to “pick up again.” But the truth is, a market slowdown might actually be one of the best times to buy. If you understand the dynamics of the slowdown and approach it strategically, you could secure a property that delivers exceptional long-term value.

1. Understanding a Market Slowdown

A market slowdown happens when property sales decrease, price growth flattens, and listings stay on the market longer. This can be caused by higher interest rates, economic uncertainty, or shifts in buyer demand.
But slower doesn’t mean weaker — it means more balanced. Buyers have more time, more options, and more negotiating power.

2. Why a Slowdown Can Be a Smart Time to Buy

a. Lower Competition:
During booming markets, buyers often compete in bidding wars. In a slowdown, fewer people are making offers, giving you the upper hand to negotiate price and terms.

b. Better Prices:
Sellers tend to become more realistic when properties don’t move quickly. You might find homes that are priced below market value — especially if the seller is motivated.

c. More Room for Due Diligence:
When the market is hot, buyers rush. In a slowdown, you have time to conduct thorough inspections, review contracts carefully, and make informed decisions.

d. Interest Rate Opportunities:
If interest rates are high now, remember they often fluctuate. You can refinance later when rates drop — but you can’t always find the same property again at a lower price.

3. Key Risks to Consider

Buying in a slowdown still requires caution:

Property values may stagnate short-term.
Selling quickly might be harder if you change your mind.
Economic uncertainty could affect rental demand in some areas.

That’s why it’s vital to focus on fundamentals — location, quality, and long-term growth potential.

4. Best Buying Strategy

Look for undervalued neighbourhoods with ongoing development or infrastructure upgrades.
Negotiate wisely — ask for seller concessions like covering transfer costs or minor repairs.
Think long-term — property is a slow-growth investment, and downturns often lead to stronger rebounds.

💡 Lake Properties Pro-Tip:

A market slowdown separates the speculators from the smart investors. If you buy wisely during a quieter phase, you’ll often find yourself sitting on real value once the cycle turns upward again. Cape Town’s prime areas — especially near the coast and secure estates — tend to recover first and strongest.

Meta Description (for SEO):
Thinking about buying during a market slowdown? Discover why slower property markets can present smart investment opportunities for South African buyers — with insights from Lake Properties.

Suggested SEO Tags:
property market slowdown, buying property South Africa, Cape Town property investment, real estate tips, Lake Properties

“Explore homes that match your lifestyle with Lake Properties — your Cape Town property experts.”

If you know of anyone who is thinking of selling or buying property, please call me

Russell

Lake Properties

www.lakeproperties.co.za info@lakeproperties.co.za

083 624 7129

Tuesday, 7 October 2025

How do you as an estate agent handle lowball offers from buyers

1) Mindset (the foundation)

It’s business, not personal. Buyers probe; many low offers are tests or negotiation anchors. Don’t react emotionally.
Every offer is information. Even a low offer tells you the buyer is interested, or that your listing copy/price/condition has a perception gap you can fix.
You control the process. You can counter, request proof, ask for terms changes, or walk away. Don’t feel forced to accept or reply defensively.

2) Step-by-step protocol (how to respond, every time)

Pause and evaluate
- Confirm buyer’s proof of funds or mortgage pre-approval.
- Check earnest money / deposit amount and any unusual contingencies.
Analyze the offer as a whole (price, deposit, financing, closing date, contingencies, inclusions, inspection, appraisal clauses).
Compare to your bottom line (the lowest you will accept) and to market comps.
Decide a strategy — one of: (A) Counter with price + explain comps, (B) Counter with non-price concessions (shorter close, higher deposit), (C) Ask for buyer justification / proof, (D) Issue “best and final,” (E) Reject politely and keep marketing.
Respond professionally (agent should send the reply; sellers should avoid emotional language).
If negotiation continues, keep records and set firm deadlines for responses.
If you accept, document protective terms: deposit, timeline, appraisal gap coverage (if any), inspection escrow, etc.

3) Negotiation levers (things you can trade instead of cutting price)

Earnest deposit size (increase to show buyer commitment).
Closing date flexibility (shorter or seller rent-back).
Which inspections/contingencies remain (e.g., buyer accepts AS-IS or waives certain contingencies).
Repair credits vs price reduction (give credit after inspection instead of lowering list price).
Inclusions/exclusions (appliances, furniture).
Appraisal gap coverage (buyer covers X if appraisal low).
Financing terms (e.g., allow seller carryback for a short time — only if you know what you’re doing).

Use combinations: e.g., accept a price slightly lower if buyer increases deposit and shortens closing.

4) Scripts you can use (copy / adapt)

A — Quick polite rejection (if you won’t engage):

Thank you for the offer. At this time we are not able to accept that price. If you’re able to revise, please send an updated offer with proof of funds or pre-approval.

B — Counter with price + comps (professional):

Thank you. We appreciate your interest. The sellers have reviewed the offer and are prepared to counter at R1,425,000 based on recent comparable sales (attached). The sellers request proof of funds or a lender pre-approval within 24 hours and a R100,000 earnest deposit. Closing flexible to suit your timeline. Please advise.

C — Ask for buyer to justify a low offer:

Thanks for submitting. We’re curious what led to the offer amount — is it based on an inspection, appraisal expectation, or repairs you’re budgeting? Please provide justification and proof of funds so we can continue discussions.

D — Best & Final request (use during multiple offers):

We have multiple offers and invite you to submit your best and final by 4:00 PM on [date]. Please include updated financing proof and earnest deposit amount.

E — Walk-away / final “no” (firm):

We appreciate the offer but it’s below our acceptable range. If you’d like to continue, please submit a realistic revised offer.

F — Post-inspection lowball reply (offer to negotiate repairs instead):

We reviewed the inspection concerns and are willing to offer a R25,000 repair credit (or make the agreed repairs) in lieu of a price reduction. Please confirm whether you accept that remedy.

5) Worked numeric example (step-by-step arithmetic — how I’d recommend countering)

Scenario: Listing price = R1,500,000. Buyer offers R1,200,000 (a lowball). You want to calculate the gap and decide a counter.

Calculate the difference (asking − offer):
- 1,500,000 − 1,200,000 = 300,000.
  So the difference is R300,000.
Calculate the percentage difference:
- Divide difference by asking: 300,000 ÷ 1,500,000 = 0.2.
- Convert to percent: 0.2 × 100 = 20%.
  So the offer is 20% below list.
Decide a countering anchor (typical strategy: anchor near 95% of list rather than meet the low offer halfway). Compute 95% of asking:
- 0.95 × 1,500,000 = 1,425,000.
  So a 95% counter is R1,425,000.
Reasoning: 95% preserves negotiating room, signals seriousness, and narrows the gap from R300,000 to:
- 1,425,000 − 1,200,000 = 225,000.
  So the new gap is R225,000 (still large, but leaves room to get to your bottom line).
Alternate smaller concession: if you prefer to be firmer, counter at 97%:
- 0.97 × 1,500,000 = 1,455,000 → R1,455,000.

Rule of thumb from this example: For a very low offer (≥15–20% below) you generally don’t accept the midpoint; instead counter high (90–97% of ask) and force buyer to climb or justify.

6) Special cases & how to handle them

Cash investor / flipper who lowballs

They often factor repair costs and resale margin. Ask for their scope of work and timeline. If their number is below the cost threshold, walk. If you want a quick sale, consider a middle option but insist on a strong deposit and fast closing.

Buyer with weak financing (low offer + mortgage)

Ask for an increased deposit and proof of lender pre-approval with a name and LOE (letter of endorsement). If financing is shaky, seller protection clauses or higher deposit protect you.

Post-inspection renegotiation (buyer lowballs after seeing inspection)

Offer a specific repair credit or perform the repairs. Avoid ad hoc large price cuts — quantify repairs with contractor quotes before conceding.

Multiple offers

Use “best and final” deadline to extract the most value. Don’t counter each buyer with a separate incremental increase—either set a highest-and-best deadline or choose the strongest offer and counter only that party.

If buyer is insulting or unreasonable

Keep reply brief and professional or have your agent respond. Do not argue. Protect your bargaining position and reputation.

7) When to accept a low offer

Consider accepting if one or more of the following is true:

It meets or exceeds your bottom line (the walk-away price you set).
Buyer offers superior terms (cash, quick closing, large deposit, waived contingencies).
Market conditions indicate inventory is high and relisting will take months.
The carrying cost of continued marketing (mortgage, levies, agent fees, staging) outweighs the difference.
If you accept, document protections: deposit size, no-contingency clauses if applicable, and explicit appraisal/inspection handling.

8) Communication & timing best practices

Respond promptly and professionally. Even a short rejection/counter within 24 hours keeps momentum. (You can instruct your agent to respond fast.)
Always ask for proof of funds or lender LOI before deep negotiation.
Keep negotiation in writing (email/contract) to avoid misunderstandings.
Set deadlines for responses to avoid endless lowball back-and-forth.

9) Presentation — how to justify your counter

When you counter, attach a short, professional packet:

3 recent comparable sales (within 1 km / 3 months) with photos and adjustments.
A list of upgrades/improvements you completed (dates + receipts if possible).
A clear summary of why your price is fair (location, school zone, condition).
This converts emotion into evidence.

10) Quick checklist before replying to a lowball

[ ] Confirm buyer’s proof of funds / pre-approval.
[ ] Verify earnest deposit amount and whether it escalates.
[ ] Pull 3–5 recent comps and sales data.
[ ] Reconfirm seller’s bottom line (lowest acceptable price + non-price terms).
[ ] Decide negotiation strategy (price vs terms vs reject).
[ ] Prepare a professional written reply using one of the scripts above.
[ ] Set a firm response deadline (e.g., 24–48 hours).

Lake Properties Pro-Tip (expanded)

Always treat lowball offers as negotiation openings, not insults. Start with a calm, evidence-backed counter anchored near 90–97% of your price when the offer is far below list. Use non-price levers (deposit, closing date, contingencies) to extract value, and keep the buyer’s proof of funds front and center. Finally, have your agent act as the buffer — emotions waste deals; facts close them.

Tuesday, 30 September 2025

The Trojon Horse massacre in Thornton Road

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What led to it

By 1985, South Africa was in a State of Emergency. Student protests, school boycotts and street demonstrations against apartheid were taking place almost daily, especially in Cape Town’s coloured townships such as Athlone.

On 15 October 1985, young people gathered along Thornton Road, near Alexander Sinton High School, to protest.
They were throwing stones at passing vehicles — a fairly common form of township resistance.
The apartheid state wanted to crush these protests and intimidate communities. Instead of dispersing the crowds openly, police devised a deceptive ambush tactic.

The “Trojan Horse” tactic

The plan was chillingly simple:

A railway truck drove slowly into the area. On the back of the truck were large wooden crates, apparently carrying goods.
Hidden inside those crates were armed policemen from the South African Police and Railway Police.
Once protesters came close and began throwing stones, the police suddenly burst out from the crates and opened fire with live ammunition.

This ambush became known as the Trojan Horse Massacre because the truck, like the Greek myth, concealed attackers who struck once they were inside enemy territory.

The shooting itself

When the shooting erupted:

Three young people were killed instantly:
- Jonathan Claasen (21)
- Shaun Magmoed (15)
- Michael Miranda (11) – who wasn’t even part of the protest, he was simply in the wrong place at the wrong time.
Many others were wounded, including schoolchildren.

What made the event especially notorious was that it was captured on film by international television crews (notably CBS News). The footage of police bursting from crates and gunning down students spread worldwide, causing outrage and embarrassment for the apartheid government.

Who was responsible

The South African Police (SAP) and Railway Police, acting as part of a Joint Security Task Force, carried out the operation.
Orders for the “Trojan Horse” decoy tactic came from higher command levels — not just the men on the truck.
The Truth and Reconciliation Commission (TRC) later confirmed that this was a deliberate counter-insurgency operation, not a spontaneous reaction to violence.

Aftermath: Inquest & prosecutions

The families of the victims, supported by human rights lawyers, fought hard for justice:

Inquest (1988):
- A judge found that the police had acted “unreasonably” in the way they used lethal force.
- Despite this, the Attorney-General initially refused to prosecute.
Private prosecution (1989):
- Families brought their own case against 13 policemen.
- The trial was long and difficult, but in December 1989 all accused were acquitted.
TRC hearings (1996–98):
- The TRC revisited the case.
- Victims’ families testified about their loss.
- Security force members admitted aspects of the operation but largely evaded personal accountability.
- No one was ever successfully punished for the killings.

Why it matters

The Trojan Horse Massacre became a symbol of apartheid’s brutality: using deception and live fire against schoolchildren.
It highlighted the impunity of security forces: even with video evidence and an inquest ruling, the courts of the time would not convict.
Today, memorials and annual commemorations keep the memory alive. The TRC officially recorded it as a gross violation of human rights.

✅ In summary:
The police shot at students in Thornton Road because they were using an ambush tactic designed to punish and terrify protesting youth. The apartheid security forces were directly responsible, but despite inquests and private prosecutions, nobody was ever convicted.

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Friday, 26 September 2025

When is a 30 year bond more advantages than a 20 year bond.

Lake Properties

Lake Properties

Monthly payment: longer term → lower monthly repayment because the same principal is spread over more months.
Total interest paid: longer term → much more interest paid over the life of the loan, because interest accrues for more months.
Equity build: shorter term → faster principal repayment, so you build equity faster with a 20-year bond.
Payment composition: with longer terms early payments are mostly interest; with shorter terms a larger share goes to principal earlier.

Concrete example (so the trade-off is obvious)

Example assumptions (illustrative only):
Loan amount = R1,000,000 (one million rand)
Interest rate (scenario A) = 10.00% p.a. (repayment loan)
Compare: 20-year (240 months) vs 30-year (360 months) at the same interest rate.

Using the standard mortgage formula (monthly rate = annual ÷ 12; monthly payment M = P·[r(1+r)^n]/[(1+r)^n−1]):

At 10.00% p.a.

20-year (240 months):
- Monthly payment ≈ R9,650.22
- Total interest over life ≈ R1,316,051.95
- Total paid (principal + interest) ≈ R2,316,051.95
30-year (360 months):
- Monthly payment ≈ R8,775.72
- Total interest over life ≈ R2,159,257.65
- Total paid ≈ R3,159,257.65

So: choosing 30 years saves you ≈ R874.50 per month but costs you about R843,205.70 extra in interest over the life of the loan (with the same interest rate).

If the 30-year loan also carries a slightly higher rate (common in the market), e.g. 30-year at 10.5% vs 20-year at 10%, the monthly gap shrinks and the extra interest rises even more:

30-year at 10.5% → monthly ≈ R9,147.39 (so only ~R502.82 per month cheaper than the 20-yr at 10%), and total interest ≈ R2,293,061.46 (roughly R977,009.51 more than the 20-yr at 10%).

How equity and early repayments compare (same 10% example)

After 1 year of payments:
- 20-year: you’ve paid down principal ≈ R16,547.38.
- 30-year: you’ve paid down principal ≈ R5,558.79.
  So the 20-year builds ~3× more equity in year one.
After 5 years: principal paid ≈ R101,975.57 (20-yr) vs R34,256.80 (30-yr).

This shows how much slower principal reduction is on a 30-year bond — early years are dominated by interest.

When a 30-year bond makes sense

Tight monthly cash flow / uncertain income. If your budget is tight or your income can drop (commission work, contract work, business risk), a lower monthly payment reduces default risk and stress.
You’ll use the freed cash for higher-return opportunities. If you reliably invest the monthly saving and your after-tax return is higher than the mortgage interest you’re avoiding, the longer term can make sense (but this is an active investing decision and not guaranteed).
You need flexibility early on — e.g., young buyers who expect income to grow, parents paying school fees, or someone building a business.
You want the option to pay extra but not be forced to. A 30-yr loan lets you make small payments when cash is tight and bigger ones when you can — many people like that optionality.
Short holding horizon for the property. If you plan to sell within a few years, the total-interest penalty of 30 years matters less because you won’t be on the full-term schedule.
Keeping emergency cash. If choosing 20 years would drain reserves or leave you without an emergency fund, pick 30 years and keep liquidity.

When a 20-year bond is usually better

You can comfortably meet the higher monthly payments.
Your priority is paying less interest and owning the home sooner.
You value building equity fast (helps with future refinancing or borrowing against the property).
You don’t have higher-return uses for the extra monthly cash — the math often favors faster repayment.

Ways to get the best of both worlds

Take a 30-year repayment bond but make extra payments whenever possible. That way you keep low required payments but reduce the term when cash allows. (Check with your bank about prepayment rules/penalties.)
Use an offset account (if offered) or a separate savings account: keep cash close to the bond and lower interest effectively by offsetting balances.
Make “bonus” or yearly lump payments from raises/bonuses — many people treat their raises as a source for extra bond payments rather than more lifestyle inflation.
If you’re disciplined, invest the monthly saving (the R874.50 in the example) into a low-cost, diversified portfolio — but only if you’re confident about returns and risk tolerances. Compare expected after-tax returns vs mortgage rate.
Refinance later: start with a 30-year now for flexibility; if income and rates change, refinance into a shorter term later.

Risks & practical checks

Interest rate differences matter. Lenders often charge a slightly higher rate for longer terms — this reduces the monthly advantage and increases life-time interest.
Prepayment penalties / administration fees — check your bank’s rules before committing.
Behavioral risk: having a lower compulsory payment can tempt some people to spend the difference rather than save or invest it. If you’re not disciplined, a 20-year can be safer for the “forced savings” effect.
Inflation & income growth: if you expect inflation and rising income over decades, the real burden of a long loan falls, which can favor 30 years. But that’s contingent on future events.

Quick decision checklist

Ask yourself (honest answers):

Do I need the lower monthly payment now to avoid financial stress? (Yes → 30-yr looks better.)
Can I absorb the higher monthly payment without risking my emergency fund? (Yes → 20-yr looks better.)
Do I have higher-return uses for the monthly saving and the discipline to invest them? (Yes → 30-yr can make sense.)
Will I likely sell the property soon? (Soon → 30-yr’s extra interest matters less.)
Does the lender charge a higher rate for 30 years or prepayment penalties? (If yes, factor that in.)

Lake Properties Pro-Tip: If you’re unsure, pick flexibility: take the 30-year bond only if your bank allows penalty-free extra repayments (or has an offset), and then treat the mortgage like a 20-year by paying the equivalent 20-year monthly amount whenever you can. That gives you the safety of a low required payment and the option to own your home faster — without burning your emergency fund.

If you know of anyone who is thinking of selling or buying property,please call me

Lake Properties

083 624 7129

www.lakeproperties.co.za

info@lakeproperties.co.za

Tuesday, 23 September 2025

What if on party to the sale dies before the process is completed

Here’s a more detailed explanation of what happens in South Africa when one party dies before a property transfer is completed, broken down by stages of the process:

1. A Deed of Sale Has Been Signed but Transfer Not Yet Finalised

This is the most common scenario. Here's what happens depending on which party dies:

If the Seller Dies:

The signed Deed of Sale (Offer to Purchase) is still valid.
The property now falls into the deceased seller’s estate.
The executor of the estate, once appointed by the Master of the High Court, is responsible for completing the transaction.
The buyer must wait until the executor is officially empowered to act (via Letters of Executorship).
The property transfer will be registered in the buyer’s name, but only once the Master has approved and the executor signs the necessary transfer documents.

Possible Delays:

Estate reporting process (usually 4–8 weeks or more).
Delay in appointing executor.
Clearance certificates from SARS and municipality may be delayed if the estate is complex.

If the Buyer Dies:

The buyer’s rights under the sale agreement are now held by their estate.
The executor of the deceased buyer’s estate must assess whether to proceed with the purchase (e.g., does the estate have funds, is the purchase still desirable?).
If the executor decides to proceed, the property will be transferred either:
- Directly to a named heir or beneficiary, or
- Into the estate, then later transferred or sold again.

Important:

If the sale is a cash transaction and payment has been made, the executor has a legal and practical reason to proceed.
If the purchase was to be financed with a bond, and the bond wasn’t finalized before death, the deal may collapse unless the estate can fund it.

2. No Deed of Sale Was Signed Before Death

In this case, there is no legally binding contract. Death cancels any informal or verbal arrangements. The executor of the deceased’s estate is free to sell (or not sell) the property or decide whether to proceed with a new sale.

3. Deceased Was Married

South African marital regimes can affect property transfer after death:

In Community of Property: The surviving spouse owns half the estate and must be involved in the transaction.
Out of Community of Property: The deceased’s estate owns the entire property (or their share), and only the executor can proceed.
With Accrual: Depends on the value of each estate at death; might require accrual calculation before transfer.

4. Other Practical Considerations

Transfer Duty: Payable by the buyer, regardless of whether they are alive or deceased.
Conveyancer Role: Must work closely with the executor and Master’s Office.
Wills and Beneficiaries: May determine whether heirs are entitled to inherit or sell the property if no transfer occurs.

A problem property doesn’t have to be a deal-breaker. With the right strategy, these homes can turn into excellent investments. Always request a detailed inspection report, verify municipal approvals, and lean on an experienced estate agent. At Lake Properties, we specialize in identifying potential issues early and guiding buyers and sellers to successful, stress-free transactions. Remember: informed decisions make all the difference.

If you know of anyone who is thinking of selling or buying property,in Cape Town,please call me

Russell Heynes

Lake Properties

083 624 7129

www.lakeproperties.co.za

info@lakeproperties.co.za

Monday, 22 September 2025

How does the body corporate recover fees from a delinquent sectional title owner .Why is it important to recover the debt owed

Lake Properties

1) Quick legal background — who must pay and why

Every owner in a sectional-title scheme is legally obliged to pay contributions (levies) to the body corporate so the scheme can run (maintenance, insurance, security, utilities, reserve fund, etc.). The main law governing levy liability and collection procedures is the Sectional Titles Schemes Management Act (STSMA).

2) Early procedural steps the body corporate should follow (and why they’re required)

The STSMA and the Prescribed Management Rules set out governance and certain procedural duties (for example, trustees must notify owners of levy amounts and due dates within prescribed timeframes). Best practice and the rules require clear written notices so owners can’t later claim they didn’t know what was due. CSOS guidance and the PMRs also require that certain notices and processes be followed before formal enforcement steps.

Typical practical sequence (timelines can vary, but these are common stages):

Monthly statements & reminders — continue issuing monthly levy statements. (Paper/e-mail and a clear ledger help later proof.)
Friendly reminder → final demand — if the levy is overdue, the trustees/manager send a formal letter of demand. PMR rules require that owners are given notice of levies and the consequences. Early, firm communication often resolves cases without legal costs.
Trustee resolution to charge interest / collection fees — if trustees decide, the body corporate may charge interest on overdue amounts (the PMRs permit this but interest must comply with statutory caps such as those in the National Credit Act). The trustees must pass a written resolution to apply interest/collection rules.
Negotiation / payment plan / mediation (CSOS) — many schemes try to agree on payment plans; the Community Schemes Ombud Service (CSOS) can assist or adjudicate disputes between owners and bodies corporate. Engaging CSOS can be faster and cheaper than full litigation.

3) When the body corporate uses lawyers and goes legal

If reminders and negotiation fail, the usual escalation is:

Hand over to attorneys / issuing a formal demand on attorney letterhead — this signals seriousness and often includes an intention to claim legal costs. Many conduct rules and PMR provisions allow the body corporate to recover “reasonable” collection costs from the defaulting owner. Whether every legal cost is recoverable depends on the scheme’s rules and the courts’ reasonableness tests — but attorneys’ fees commonly form part of the claim.
Summons / court action — the attorneys can institute debt proceedings in the Magistrates’ Court (for smaller debts) or High Court (for larger or complex matters). If the court grants judgment, enforcement remedies become available.

4) Enforcement remedies after judgment (what can actually be done)

Once the body corporate has a court judgment or other enforceable instrument, common remedies include:

Garnishee (attachment) orders — the court can order direct attachment of funds (a bank account) or of a debtor’s employer salary (emoluments/garnishee) subject to statutory protections for subsistence.
Attachment and sale of movable property — sheriffs can attach and sell movable assets.
Sale in execution of the unit — where necessary and after following legal procedures, a sheriff sale of the unit can occur and proceeds applied to pay creditors (this is a serious, last-resort option). In extreme cases the body corporate has in the past applied for sequestration of a debtor; sequestration can result in sale by the trustee of the insolvent estate so creditors are paid in order provided by insolvency law.

Important—transfer and the “levy clearance”: a conveyancer must certify (under s.15B of the Sectional Titles Act) that the seller’s levies are paid or secured; in practice a body corporate can therefore block transfer of a unit where levies are unpaid — the levy-clearance process is powerful leverage. Courts have also limited unlawful use of clearance certificates to force unrelated compliance: the certificate may be withheld for unpaid amounts but should not be used to coerce compliance with non-financial matters. Recent case law therefore requires trustees to use the clearance mechanism correctly.

5) Costs and interest — who pays what?

Interest on arrears: PMRs permit charging interest on overdue levies, but interest must be set by a trustee resolution and must not exceed the maximum rate set under the National Credit Act (and should be applied in line with the PMRs). That prevents unreasonable “penalty” interest.
Legal fees & collection expenses: if the scheme’s rules permit it and the costs are reasonable, legal and collection costs can be recovered from the defaulting owner as part of the debt. The courts assess reasonableness if contested. If some costs are disallowed, the shortfall may have to be met from the administrative account (i.e., by other owners).

6) Special situations — tenant, sequestration, mortgage bondholder

Tenant / rental income: CSOS orders can in some circumstances direct a tenant to pay rent directly to the body corporate until arrears are cleared (co-respondent procedures apply). This is useful when owners rent out units and do not pay levies.
Sequestration / insolvency of owner: if the owner is sequestrated, the body corporate becomes a creditor in the insolvent estate. Sometimes bodies corporate have sought sequestration to enforce payment; the insolvency process can result in the sale of the unit and levies being paid as a cost of realisation in priority over some claims.
Bondholders (banks): a mortgage bondholder’s secured claim usually ranks ahead of ordinary levy claims in many execution contexts, but depending on rules of insolvency and sale procedures, the levy claim can sometimes be treated as a “cost of realisation” — specifics depend on the facts and court orders.

7) Why recovering levies matters — the practical reasons (short & long term)

Cash-flow & service continuity: levies pay common-area electricity, water, security, cleaning and insurance. Without funds these services fail immediately. (Schemes still have mortgage-like bills to pay.)
Fairness & moral hazard: unpaid levies shift costs to paying owners and encourage more defaults if unchecked. Prompt recovery discourages deliberate non-payment.
Property values & maintenance: chronic arrears cause deferred maintenance, which lowers rental/value and makes the scheme less attractive to buyers.
Insurance & legal risk: if the body corporate can’t pay insurance premiums or municipal accounts because of levy shortfalls, everyone is exposed to much higher risk and costs.

8) Practical, usable tips for trustees (to prevent and manage arrears)

Adopt clear levy and collection rules in the conduct rules and record trustee resolutions for interest and recovery steps.
Communicate early and often: consistent monthly statements, and a short first-reminder timeline, cut down disputes later. Keep a clear ledger.
Use payment plans sensibly: where owners are genuinely struggling, a documented payment arrangement (written and signed) often yields better returns than immediate litigation.
Use CSOS before costly litigation: CSOS adjudication can be quicker and cheaper for disputes and payment orders.
If you go legal, check recoverability: instruct lawyers who specialise in sectional-title levy recovery and confirm what costs are likely to be recovered if a matter goes to judgment.

9) What owners should do if they can’t pay

Tell the trustees early and propose a realistic plan — trustees are often willing to avoid litigation if a sustainable plan is proposed.
Don’t ignore final demands or court papers — once judgment is granted, enforcement remedies are real and can include garnishee orders or execution against the unit.

Lake Properties Pro-Tip

Treat levy recovery like managing a building’s “cash arteries” — act early, document everything, and balance firmness with practical repayment options. A small amount recovered early (plus a reasonable repayment plan) usually saves the scheme far more in legal fees, distress and lost value than chasing a large debt later.

If you know of anyone who is thinking of selling or buying property,in Cape Town,please call me

Russell Heynes

Lake Properties

083 624 7129

ww.lakeproperties.co.za

info@lakeproperties.co.za

Thursday, 11 September 2025

A Day in the Life: Living in Newlands

Lake Properties

Lake Properties Lake Properties

There’s a soft, leafy hush that greets you in Newlands — the suburb sits right at the foot of Table Mountain, its streets lined with camphor and plane trees, and on a wet winter morning it feels as if the whole place has been freshly rinsed. Newlands is one of Cape Town’s upmarket Southern Suburbs and, thanks to its winter rains and mountain-fed microclimate, it’s often described as one of the wettest suburbs in South Africa.

Morning — coffee, camphor trees, and a slow start
Your day usually begins slowly here. Locals love a relaxed breakfast under the old camphor trees at spots like The Gardener’s Cottage (Montebello), where brunch is as much about the garden setting as the food. It’s the kind of place where neighbours run into one another, dogs nap in the shade, and someone always has a gardening tip to share.

If you’re the outdoorsy type, a short walk after coffee takes you into Newlands Forest — a patchwork of pine and indigenous trees, little streams and popular trails that link up toward Kirstenbosch. Hikers and families use these paths for a quick morning leg-stretcher or a longer scramble up towards the mountain’s eastern slopes.

Late morning — errands, design, and small shops
By mid-morning people drift into the small local centres — Montebello’s design hub, a few independent boutiques, or head across to neighbouring Claremont for the bigger shops and Cavendish Square mall. The vibe here is residential-first: you’ll find lots of family-run businesses, a couple of cosy bakeries and delis, and plenty of green front gardens. (If you’re house-hunting, you’ll notice many properties have mature gardens — a big plus for families.)

Afternoon — slow lunches and sporty afternoons
Afternoons can be lazy: long lunches, homework with a view of the mountain, or a quick trip into town. The commute into Cape Town’s CBD is straightforward — it’s roughly 9 km and about a 20-minute train or short drive on a good day — so many residents work in the city but come home for the quieter evenings.

If you’re sticking around the neighbourhood, match-day livens things up. Newlands’ sporting heartbeats — the historic Newlands Cricket Ground (and the older rugby stadium precinct) — mean there are days when the suburb fills with the chatter of fans, the smell of braais and the rustle of extra traffic. It’s part of the local character: family-friendly, loud and proud when sport’s on.

Evening — pubs, pizza, and quiet streets
As the sun drops behind Devil’s Peak and Table Mountain, Newlands softens. The Foresters Arms (“Forries”) is a classic local pub — decades old and still a favourite for a casual dinner or to catch a game. Elsewhere you’ll find intimate restaurants and takeaways that suit the low-key, community-oriented nights that many Newlands residents prefer.

Community feel — who lives here and why
Newlands attracts families, professionals, and people who value easy access to nature without sacrificing proximity to the city. Schools in the southern suburbs, leafy streets, and the neighbourhood’s overall quiet make it a strong draw for buyers who want space and a suburban rhythm. On weekends the suburb feels neighborly — people walking dogs, kids on bikes, homeowners tinkering in gardens.

Practicalities — the things you notice after six months

Weather: the winter rains are real — roofs, gutters and good drainage matter here more than in drier suburbs.
Match days: sporting fixtures bring crowds and traffic, so proximity to the grounds is great for fans but can complicate parking and noise for some homes.
Transport: strong train and road links make commuting easy, but like any popular suburb, peak-time traffic can build on the M3/M5 corridors.

Why people stay
People stay in Newlands because it feels like a small town tucked against a mountain: green, safe-feeling, and proud of its local cafés, pubs and sports culture. You can run a 30-minute loop in forested trails in the morning, pick up fresh bread mid-afternoon and still have time to watch a sunset over Table Mountain from your back lawn.

Lake Properties Pro-Tip:
When you’re house-hunting in Newlands, bring a simple checklist: inspect gutters and roof condition (winter rainfall is heavy), ask about sound insulation and parking on match days if the property is near the stadium precinct, and walk the route to the nearest forest access — a home with an easy gate-to-trail stroll is worth a premium for many buyers. Finally, visit on a weekend and a weekday morning to feel both the calm and the match-day energy before you decide.

If you know of anyone who is thinking of selling or buying property, please call me

Russell Heynes

Lake Properties

www.lakeproperties.co.za info@lakeproperties.co.za

083 624 7129

Friday, 5 September 2025

Are there any affordable starter homes under R1M in the Southern Suburbs of Cape Town’s .

Cape Town’s property market has been stronger than many other metros — average residential prices are well above the R1M mark and have been trending up in recent years, so truly cheap bargains are rarer and often smaller or in need of work.

At the same time, market growth has not been runaway — the FNB House Price Index shows modest year-on-year movements, meaning there are still opportunities for buyers who move quickly and make sensible choices.

Where you realistically still find something under R1M (and what to expect)

The Southern Suburbs is a broad area — while Claremont, Rondebosch, Newlands and Constantia generally sit well above R1M, there are pockets and property types where R1M can still buy you in. Use portals and local agents to watch these pockets closely.

Wynberg / Plumstead — small one-bed or two-bed apartments, older blocks and sectional-title units. Example: active/recent listings in Wynberg include apartments listed well under R1M.
Retreat, Steenberg, Lotus River, Ottery, Grassy Park — in these suburbs you’ll more often find small free-standing houses, simplexes or townhouses for R1M or below. They tend to be smaller plots or homes that need renovation.
Bank-assisted / repossessed stock & older apartment blocks — occasionally produce sub-R1M bargains, especially for cash buyers or those prepared to renovate. (Look under “bank assisted” or “repossessions” on the big portals.)

What R1M buys you (realistic expectations)

Apartments / flats (most common) — 1-bed or compact 2-bed. Older blocks, sometimes with security and a small parking bay. Lower levies are possible but check building maintenance.
Townhouses / simplexes — 2 beds, small garden/yard, sectional title complexes. Good for starter families wanting a small outdoor area.
Small free-standing homes — possible in the less expensive pockets (Retreat, Lotus River, parts of Ottery), but often require upgrades or are on smaller stands.

Pros & cons of buying under R1M in the Southern Suburbs

Pros

Enter the market in a desirable region (schools, transport links, amenities).
Potential for capital growth if you buy sensibly (location + improvements = good upside).
Shorter commute to central Cape Town than many cheaper areas.

Cons

Smaller living space or older condition at this price point.
You may trade off on security/maintenance standards in older buildings or lower-income pockets.
Faster competition for sub-R1M properties — they move quickly.

Practical buying strategy (how to actually secure one)

Get bond pre-approval first — a ready bond pre-approval (amount and proof) lets you act quickly when a sub-R1M listing appears. Use bank/online mortgage calculators and have your documents ready.
Work with a local agent who specializes in the pocket — they often know of off-market stock or coming listings before portals update.
Search the big portals daily and enable alerts (Property24, PrivateProperty, MyProperty). Be ready to view the same day.
Be realistic on condition — expect to do some cosmetic/functional work (kitchen, bathrooms, painting) unless the property is a rare, well-priced gem.
Consider sectional title for convenience/affordability — but read levy statements and sinking fund histories carefully.
Have a solicitor/attorney ready — transfers and bond registrations can take weeks; having a conveyancer lined up speeds the process.

Due-diligence checklist (must-check items)

Title deed & property description — check erf/extent and any servitudes.
Municipal accounts & rates — ask for the latest statements and any arrears.
Levy statements & minutes (for sectional title) — check sinking fund, special levies, and building repairs history.
Occupancy & rental status — are tenants in place? Are they paying?
Condition report — damp, roof, electrics (SANS 10142 risks), plumbing. Hire an inspector for structural concerns.
Zoning & building compliance — particularly if you plan to add value later.

Renovation & short-term value-add ideas (if the property needs work)

Paint, flooring, and kitchen cosmetic upgrades give very high visible ROI.
Convert underused space (garage or garden cottage) into a rental unit if zoning allows — can dramatically improve yield.
Security upgrades (alarm, better fencing, lighting) add buyer/renter appeal in many pockets.

Market timing & negotiating tips

When supply is tight, strong offers with good proof of finance win. A polite, clean offer with a quick transfer/shorter conditions period can be attractive to sellers.
If the property needs work, get a contractor’s rough quote; use it when negotiating price or asking for repairs/credit.

Short examples & market signals

Major property portals list many Southern Suburbs properties — search their “Southern Suburbs” category and filter by price to spot pockets that are still sub-R1M.
There are live/ recent Wynberg apartment listings below R1M on portals — concrete proof that sub-R1M purchases remain possible (usually apartments or smaller units).
Broader price indices show Cape Town’s average prices are above the R1M mark and regional asking-price growth has been meaningful — so expect competition and act decisively when you find a fit.

Lake Properties Pro-Tip (practical checklist you can use immediately)

Pre-approval first. Don’t look without it — sellers ignore buyers who can’t prove finance.
Daily alerts + one go-to agent. Set portal alerts for R900k–R1M in your chosen suburbs, and sign one agent to avoid duplicate viewings.
Inspect at different times. Visit at morning and evening to check traffic, noise and safety.
Ask for levy & rates statements up front. If you’re buying sectional title, getting those documents before your offer avoids nasty surprises.
If you can, bring a small cash deposit. Even R50k–R100k can make your offer stronger and reduce bond hassles.
Think 3–5 year horizon. Buy a starter with the plan to add value (cosmetic + rental), then upgrade when equity increases

If you know of anyone who is thinking of selling or buying property,in Cape Town,please call me

Russell Heynes

Lake Properties

083 624 7129

www.lakeproperties.co.za

info@lakeproperties.co.za

Thursday, 28 August 2025

Why is date of acceptance very important in an offer to purchase

The date of acceptance in an Offer to Purchase (OTP) is extremely important because it determines when the agreement becomes legally binding on both buyer and seller. Here’s why:

1. Contract Formation

An OTP is only an offer until the seller signs and accepts it.
The contract is not binding until the seller accepts and dates it.
The date of acceptance marks the official start of the agreement.

2. Suspensive Conditions

Many OTPs include suspensive conditions (e.g., buyer must obtain bond approval within 30 days).
These time periods usually start running from the date of acceptance, not from when the buyer signed.

3. Deadlines and Timelines

Transfer process steps, bond approval, deposit payments, compliance certificates, and occupation dates are all calculated from acceptance date.
Without the date, there could be disputes over whether a deadline has been met.

4. Legal Certainty

The acceptance date removes any doubt about when the agreement took effect.
If not clearly recorded, either party could argue about timelines or even claim the contract never became valid.

5. Risk and Possession

The date of acceptance is the point at which the buyer becomes bound to purchase and the seller becomes bound to sell.
It also establishes when risk and benefit arrangements in the OTP begin to apply.

✅ In short: The date of acceptance is the anchor date that ensures the contract is valid, timelines are enforceable, and both parties know their obligations clearly.

Friday, 22 August 2025

On the day my bond is paid up.What do I do now let it lay at the bank or do I collect it from the bank

Let’s go deeper and break it down clearly step by step for South Africa:

✅ What Happens When Your Bond Is Paid Up

When you’ve paid your last instalment, the bank will issue a bond paid-up letter confirming the account has a zero balance. But that doesn’t mean the bond is automatically cancelled at the Deeds Office — the bond remains registered against your property until you take the next step.

🔑 Your Options

Option 1: Leave the Bond at the Bank

The bank keeps the bond registered at the Deeds Office.
Your title deed remains with the bank (in digital storage since SA went paperless in 2019, but you can still get a copy).
You don’t owe anything, but the property is still “encumbered.”
You’ll continue paying a small admin fee (usually R50–R80 per month).
Benefit: If you want another loan in future (like a further bond or access facility), it’s faster and easier since the bond is already in place.

Option 2: Cancel the Bond (Recommended for most homeowners)

Here’s how it works:

Request cancellation from the bank
- Contact your bank and tell them you want to cancel the bond.
- They will issue a “Consent to Cancel” to a conveyancing attorney.
Attorney appointment
- Only a conveyancer can lodge the cancellation at the Deeds Office.
- You can choose your own attorney or let the bank appoint one.
Documents required
- Paid-up letter from the bank.
- Bond account number.
- Your ID and property details.
Deeds Office process
- The attorney lodges the cancellation documents at the Deeds Office.
- The Deeds Office updates the records, removing the bank’s name.
- Your property becomes “unencumbered” (100% yours).
Costs involved
- Attorney fee: usually around R3,000 – R5,000 (depends on attorney scale).
- Deeds Office fee: a few hundred rand.
- These costs are for your account, not the bank’s.
After cancellation
- The bond account is closed permanently.
- No more monthly admin fees.
- You can request an e-title deed copy for your records.

⚖️ Which Should You Choose?

If you want your property to be free and clear → Cancel the bond.
If you want to keep the option of borrowing quickly against it → Leave it open (but you’ll pay small ongoing fees).

👉 A good rule of thumb: If you’re not planning to borrow again within the next year or two, it’s better to cancel and save money long-term.

Thursday, 21 August 2025

What must you do if you know that you are going to miss a bond instalment

Perfect, let’s go step by step and go deeper into what happens in South Africa if you miss bond instalments 👇

🔎 What Happens If You Miss a Bond Payment?

✅ First missed payment (0–30 days late)

The bank’s system flags your account as in arrears.
You’ll get an SMS, email, or phone call from the collections team.
The bank might charge a late payment fee + interest on the arrears.
Best move: Pay as soon as possible, or contact the bank to make an arrangement.

✅ Second month missed (30–60 days late)

You’re now 2 months in arrears.
The bank will start calling more urgently and may send written notices.
If you still don’t pay, they may block access to further facilities (like redraws or credit cards if linked).
Risk: Your credit record is now at risk of being negatively affected.

✅ Third month missed (60–90 days late)

You’re now seriously in default.
The bank can issue a Section 129 Notice (National Credit Act).
- This is a legal letter saying you are in breach of your home loan agreement.
- It warns that if you don’t settle or make arrangements, they can start legal action.
At this stage you still have the right to:
- Reinstate the bond by paying the arrears.
- Negotiate repayment arrangements.
- Enter debt review (through a registered debt counsellor).

✅ 90+ days late (legal stage begins)

If you ignore the Section 129 notice, the bank can:
1. Summon you to court for repossession.
2. Ask the court for a judgment and a writ of execution (to attach your property).
3. The sheriff of the court can then put your house up for sale in execution (public auction).

⚠️ Important: Even if the house is sold, if the auction price doesn’t cover your bond, you are still liable for the shortfall.

🛡️ How to Protect Yourself

Talk to your bank early — don’t wait until month 3.
Ask for payment restructuring:
- Extend your loan term to lower instalments.
- Pay only interest for a period.
- Get a short “payment holiday.”
Apply for debt review before legal action if your finances are tight overall.
Sell the property voluntarily if you know you cannot recover — you’ll get a better price than a bank auction.

⚖️ Timeline Summary

1 month missed: Small fees + warning.
2 months missed: Collections intensify, credit score at risk.
3 months missed: Section 129 notice, legal threat.
3–6 months missed: Bank can go to court → repossession.

👉 In short: Missing 1 payment isn’t the end of the world if you act fast. But missing 3+ payments without communication can put your house at serious risk.