Property evaluation...

[AndyD]

If a house is in poor condition it will be valued lower than a similar one in the same area that's in good condition.

When you buy a house you can get an engineers report, electrical report, bug report, plumbing report etc to highlight any quality of safety problems and avoid any nasty surprises.

[tec0]

If a house is in poor condition it will be valued lower than a similar one in the same area that's in good condition.

That is what is suppose to happen sadly I have proof that sellers will ask the same money for a bad house in the same aria as the good house. I know of a property that is not worth more than R150k and yet the asking price is equal and in some cases more than the other properties in the same aria.

Now I know the history of the house and you will basically only buy the property in the end. The structure is toast.

When you buy a house you can get an engineers report, electrical report, bug report, plumbing report etc to highlight any quality of safety problems and avoid any nasty surprises.

Now I feel we are in the same ball park. I feel that the inspections must be done by the seller not the buyer and that the fixing costs must be considered when an evaluation is past. Sadly this doesn’t happen, and that is why we need an enforceable system. Basically it will protect both the buyer and seller.

[tec0]

Buying and selling property is no different from buying and selling cars. A bank won't lend you R700K to buy a Golf I. The bank values the property to ensure that if you were to default of the loan that they will be able to recover the loan by reselling the property (ok, in theory)

The problem is not the value of the property per se, the problem is the replacement cost of the loan.

The truth is if you have to pay the true value of a property and not the thumb-suck value the chances are that the property may become cheaper and you may even be able to improve on it since you paid less for it. However because houses are over evaluated you end up needing to take a bigger loan.

So basically the evaluation system will protect you against over spending on a bad property. I don't think that is a bad thing...

[Just Gone]

You can not solve all problems with legislation. In fact I already think there is too much legislation.

Simply, if you feel the property is too high in value, then either make an offer you think is right, or move on.You will be surprised how often they accept your offer. It's about negotiating the right price.

I agree with Justloadit above - if I want to buy a house, get it checked out by the relevant professional - I then adapt the house / rebuild portions to suit me, then it is my choice - I dont need any "regulation" to tell me that a brick is old. In fact I would prefer to buy an older house - they built them better in those days.

Go to Australia or the UK and see what a legislated nanny state is like ........... I do not want to live like that !

Valuations depend on the area, the demand, the condition of the house, the municipal value and input from the estate agent ! I dont think this govenment has the time to "legislate" the condition of houses - I think we are big enough to handle that ourselves ....... and if you are not then you must get a professional to help you.

[tec0]

I agree with Justloadit above - if I want to buy a house, get it checked out by the relevant professional - I then adapt the house / rebuild portions to suit me, then it is my choice - I dont need any "regulation" to tell me that a brick is old. In fact I would prefer to buy an older house - they built them better in those days.

I also agree with this, you must do an inspection in order to know what you are getting yourself into but in the end regardless of the inspections the prices remain very high for very poor quality properties. herein is my concern, the inspection get's "downplayed". Yes you can walk away from the property but this seems to become the statuesque.

Go to Australia or the UK and see what a legislated nanny state is like ........... I do not want to live like that !

An old property cost less in those countries as shown on the house and home chancel.

Valuations depend on the area, the demand, the condition of the house, the municipal value and input from the estate agent ! I dont think this govenment has the time to "legislate" the condition of houses - I think we are big enough to handle that ourselves ....... and if you are not then you must get a professional to help you.

Sadly you have no room for negotiations anymore. Fact is the more money they can make of you the better of they will be so they have no reason to open any channel of negotiations. With legislation those channels remain open.

[Just Gone]

An old property cost less in those countries as shown on the house and home chancel.

REALLY ........... ........... a simple little semi detached house in the UK will easily set you back .... 50 000 pounds plus ....... multiply that by 11 and do the maths !!! Take into account the size of the property as well ............. it is def not "less"

[Blurock]

To build a new house costs more than buying an existing, established property. Consider the time, effort and cost to establish a garden and all the hidden costs related to building a new house and you can understand why people are willing to pay more for an older house.

If the house is run down and in a state of disrepair, it will not sell at a ridiculous price. There are always alternatives on the market, so walk away and look for something else, or sit and wait until the seller reduces his price.

Regarding protection for the buyer; it is up to you to see that you trust the people who issue certificates for wiring, borer etc. The bank or bond financier will also do their inspection, but do not rely on them to protect your rights as buyer.

[AndyD]

Tec0, I think from what you're saying it sounds like you're confusing asking price with the actual value. There's lots of people around who'll take a chance with an over inflated asking price.

[Dave A]

Sellers can ask whatever price they like. The value is determined at the price point where the sale is made.

I'll concede there is some "institutionalised" influence as to where that price point should be, but it's pretty negligible and unsustainable compared to the natural forces of common sense and of supply and demand.

[Blurock]

The employer or the state can never be held responsible for providing housing. In a fluid and free labour market where people can choose where and for whom they want to work, you can never pin people down to just one address for ever.

I have met a couple from an ex communist country who had to wait 9 years for a one bedroom flat in a crummy suburb. They are both doctors and decided to flee to South Africa when they had the opportunity.

In Italy it is common for boys to stay with their parents until well in their 30's, before they move out on their own. Obviously mama's cooking will have a lot to do with that decision. In many cultures it is customary for the family to stay together in the same house. However, changing economic cycles and markets have forced job seekers to relocate to where there are better work prospects. Migrant labour has also had it effects and appears to be an issue in countries such as China and Mexico.

Some people are fortunate to inherit property from their parents, others have to save up for their own. Some of us are rich, some of us are poor. This is as a result of our own choices in life and how the dice has fallen for us. Unfortunately that does not entitle us to free housing.

Once you own a house, the government will do its best to tax you out of the house. To own a place of your own is not a right, but a privilege. As the saying goes, "my house is my castle".