Depending on your outlook and your current financial situation, these are either challenging times in the property market, or the start of a period of great opportunity says Johan Strydom, Managing Executive of propertygenie.co.za

"It¿s no secret that the housing boom of the past couple of years has slowed substantially," says Strydom. "Rising interest rates, stricter lending policies and declining consumer confidence have all put a dampener on house prices and sales."

"While the consensus view amongst economists, estate agents, bond providers and bond originators is that the market downturn is temporary, it is nevertheless expected to continue until at least late 2009 / early part of 2010.

So while in the short term the situation seems tough for sellers, it's anything but for the home buyers who have some time and funding available. In a market like this, patient, astute buyers can negotiate some pretty decent deals.

"¿The secret is for buyers to take a little time to do their homework," says Strydom.

Below are some key ways for buyers to leverage their negotiating power:

Understand your own finances:

Before a buyer starts looking around for houses, they should have as precise an idea as possible of what financing they have available for the transaction. A recent propertygenie.co.za survey revealed that the majority of homebuyers only do rough estimates of what they think they have available before starting the home-search process.

"While this may have been sufficient a few years ago, the introduction of the National Credit Act in mid 2007, and stricter lending policies from financial institutions, it is now vital to know exactly what you can afford", states Strydom.

An experienced bond originator like ooba (formerly MortgageSA) can assist buyers with a comprehensive pre-qualification to accurately assess their buying power. An additional upside of doing this work up-front is that once a buyer does find the right home, a lot of the financial paperwork is already underway.

Understand the Seller¿s Situation:

Having an insight into the seller's motivation for selling can be invaluable when negotiating on the final price.

"If the owners are under pressure or in a hurry to move, it is more likely that they will accept a lower offer," comments Strydom. "It could also be useful to understand what, if any the outstanding mortgage is on the property as there are costs to the seller in servicing the debt the longer the property remains unsold."

Don¿t be afraid to ask questions both of the seller and the estate agents.

Find out how long a property has been on the market:

The longer a property has been on the market, the more likely that it is overpriced for current market conditions.

Over-pricing a property is possibly one of the worst things a seller can do, but conversely it also presents one of the greatest opportunities for astute buyers who can expect price cuts up to 15% from buyers who are becoming desperate.

Research Comparable Homes:

The value of a property at a given time is governed by the current market, in that area. The real estate market is typically localized so it is important to have a good understanding of what similar homes in terms of size, space and location are selling for at a particular time.

"One of the easiest ways to do this comparative research is to use a property portal like propertygenie.co.za which showcases houses for sale by neighborhood from all the leading estate agencies," advises Strydom. "A large inventory of homes for sale in an area, especially in a buyers' market, typically gives the buyer the leverage to negotiate aggressively on price".

Price is not the only negotiable:

Often if a seller won¿t budge on the selling price, they could still be negotiable on other issues.

"Sellers can often be focused on the final offer, and the more attractive the price, the more flexible they could be on other points," says Strydom. "Buyers should also consider asking for concessions on transaction costs or items of repair or improvements."

New developments may require a slightly different approach:

In the case of newly built homes or new developments, developers are often less willing to lower selling prices, especially where they are selling identical units in the same development.

"In these instances though, developers may well be amenable to provide other incentives such as upgrades or free landscaping to sweeten a sale" says Strydom.

So while buyers may not be able to negotiate that strongly on asking price, there are still significant gains to be on these types of transactions.

Overpowering doggy smells are the biggest turn off for prospective buyers viewing a home according to an online poll by propertygenie.co.za, South Africa's largest property listings website that showcases over 155 000 properties nationwide.

Johan Strydom, general manager of propertygenie.co.za, said that the poll showed that 31% of people said pungent pooch aroma was their biggest deterrent when home viewing, followed by 24% that noted tired bathrooms and kitchens made them hurry to the exit.

"We all love our dogs but it¿s worth remembering that when they spend a lot of time inside they tend to smell the place up. When you live with it everyday you get used to odour le canine, but when it comes to selling your home, your dog might not be your best friend," said Strydom.

The poll showed that the next biggest turn off was the lingering smell of cigarette smoke with 18% of people saying that was their biggest no-no, followed by unbearable décor (14%), ugly burglar proofing (9%) and foul fridges and stoves (4%).

When asked about how sellers showed their homes in the best light, 36% of respondents to the propertygenie.co.za poll said that a thorough spring clean was their top tactic followed by 19% who said they gave the exterior a makeover by painting the outside and ensuring the garden is more Chelsea Flower Show than junkyard.

The next most popular strategy was adding flowers and coffee table books (14%), followed by a basic tidy (13%). And 9% of people said they would do nothing special when it came to selling their home while the same percentage said they would hire a professional home stager.

Said Strydom: "It really is important for sellers to make an effort in this buyers' market. A good rule to remember is that what you are really selling is a lifestyle, not just bricks and mortar. People need to be able to picture themselves in your home so too much of your personality and taste on show will make it harder for them to do that."

When it came to probing exactly how home buyers determined their budgets, a whopping 55% said they make a rough estimate from personal calculations while 23% took guidance from their banks.

Only 16% first went through a pre-approval finance process with a bond originator and a paltry 6% sought help from a financial advisor.

"Given the huge amount of paperwork required by the National Credit Act and the large variation in lending criteria by banks in these tougher times, we strongly advise people to get a reputable bond originator like ooba on your side to steer you to the best homeloan rate," concluded Strydom.

Buying off-plan is an affordable and convenient option for people hoping to buy property but find themselves priced out of the market because of soaring interest rates and high property prices.

"New developments tend to be more inexpensive than buying established properties," says Careen Mckinon, Developments Manager at MortgageSA South Africa's leading bond originator that places one in five South Africans in their homes. "There is the valuable saving on transfer duties as purchasers are not expected to pay transfer duties and some developers even include registration costs in the price."

"When buying a development 'what you see is what you get'," says Mckinon, "The price of the development is fixed with no hidden costs that could jeopardise your finances such as renovations or legal fees."

New developments require a deposit depending on the project; it can either be a percentage of the purchase price (5% or 10%) or a deposit to secure the unit. The deposit amount can vary from R2000 to R10 000 depending on the developer and buyers have to start paying off the bond on registration of the bond.

New developments cater for a variety of needs which include urban developments as well as suburban cluster developments which appeal to families as they usually offer good security, a village atmosphere and leisure facilities.

New sectional title developments are also helping to accommodate mature buyers, in the form of retirement villages and for those with a particular passion, there are lifestyle estates, aimed at golf and equestrian enthusiasts, private nature reserves and heritage developments.

"There are potential problems when buying off-plan which includes delays in completion leaving some homeowners stranded," warns Mckinon.

"New developments are also geared towards investors planning on renting the property out," says Mckinon. "But, there have been problems with speculators investing in property and not being able to find tenants once the property has been completed.

"It is therefore advisable to research the area and ascertain the level of demand before committing yourself," says Mckinon. "Also, if you have decided to purchase a development with the intention of renting, ensure your budget allows for months when there are no tenants to cover your bond."

The interest in new developments is evident as property websites in South Africa are beginning to include them in their search offering.

Propertygenie.co.za launched its own dedicated development section in December 2007 featuring 40 different new developments. Each development has its own mini-website within the property portal allowing visitors to browse through the different offerings.

"We added new developments onto the website after extensive research last year with various developers," says Johan Strydom, Managing Executive of propertygenie.co.za, South Africa's largest online search property portal that lists over 140 000 properties nationwide.

"The interest is evident as there has been over 17 000 page views in December 2007 and over 20 000 in January 2008," says Strydom.

"Because new developments are bought from a plan, the internet is an ideal vehicle for sourcing and researching properties as home seekers are able to research various locations and properties best suited to their budget and lifestyle," concludes Strydom.

Property prices are likely to rise between 10 and 15% in 2006 according to South Africa¿s leading bond originator.

Saul Geffen, Managing Director of MortgageSA says, "We remain optimistic about prices for 2006 although we do anticipate a cooler market. We therefore expect prices to appreciate by between 10 and 15% in 2006.

"The level of property price increases that have been experienced over the past few years were unsustainable. The fact that growth rates are coming closer to normality makes a bubble situation less likely. A more normal and sustainable market is developing as growth rates slow"

Geffen says that MortgageSA¿s forecast is based by analyzing the sales of the country¿s top estate agencies and the trends of the bonds they place with banks on properties, across various price ranges nationwide.

"Property remains a good investment. Even the forecasted lower returns are better than many other asset classes locally and internationally and people should bear this in mind and not be too negative about property just because the rate of increase has slowed down. The key drivers of property fundamentals still look positive."

Geffen says that price increases in middle to lower income priced properties are likely to be higher than those in the upper priced areas and that he expects similar or slightly lower unit transaction volumes in the year ahead.

"Overall the outlook for the property market remains bullish. SA economic growth is increasing steadily, in many instances at higher rates than elsewhere in the world and this is leading to real wage growth, reduced unemployment and increased direct foreign investment. The economy is robust and this means a stable macroeconomic outlook for some time to come."

Geffen also points to the emerging black middle class and that increased government spend is allowing more and more people into the formal economy, resulting in increased purchasing power.

"And as we head towards 2010 and closer to World Cup Soccer, we expect to see positive spin-offs for the residential property market."

As house price growth moderates, buyers are becoming far fussier and are no longer settling for less than what they truly want ¿ all the more reason for sellers to make their homes as appealing as possible. Saul Geffen, CEO of MortgageSA, South Africa¿s leading mortgage originator, says that sellers should be mindful of the ¿new mood of selectiveness and increased desire for value for money¿ that currently pervades buyers¿ mindsets.

¿It¿s a lot different to two years ago," notes Geffen. ¿Buyers are now looking very carefully at properties and spending more time 'kicking the tires' rather than leaping in for fear of missing out on the boom.

"House price growth is expected to be around 11% in 2006 and possibly single figures in 2007, so sellers should do all they can to present their property as attractively as possible to meet buyer preferences and realise full value on their properties." Mortgage SA¿s top 9 things that will make a potential buyer want to pay less:

Rooms overcrowded with furniture. It might seem cosy to you, but if there¿s no space to even turn around, it¿s not going to appeal to someone who likes space - and everybody likes space.

Bright carpets with patterns. You might be nostalgic for the 70¿s and retro is certain to be popular again, but carpets from decades past may not be by your buyer¿s psychedelic dream.

Badly-built extensions. If your home has an awkward extra room that disrupts the flow and form of the house, it¿s not going to appeal to many people even though it means extra space.

Carpets in the kitchen or bathroom. This is probably quite an icky thing in most people¿s minds and buyers will be thinking of the cost of removing the carpets. It might also lead people to think that you¿re trying to hide something underneath.

Too many clashing colours. If your interior decorating looks like it was done so no colours felt left out, potential buyers may be looking for some money off.

Garden gnomes. Hide, hide, hide. Some people may think they¿re really cute, but why take the risk of turning off buyers before they have even stepped inside?

Lime scale and dirt in the bath or around the shower. When your potential buyers peer into the bathroom and see grime everywhere, they may well question what other surprises are tucked away and what else is in poor condition.

Gloomy lighting. Poor lighting can give a rather depressed ambience to any home. Bright equals cheerfulness so good illumination is a must.

Dirty light switches. If you haven¿t cleaned your light switches for a long time, then be warned; to a potential buyer it could suggest that the wiring might be bad.

Says Geffen, "Although you may currently have one or more of the things listed above in your home, fixing them is a lot cheaper than ignoring them."

Buying a home is one of the smartest investment decisions anyone can ever make ¿ and here¿s the data to prove it.

Saul Geffen, CEO of MortgageSA, South Africa¿s largest mortgage originator, says that there is a lot of conflicting advice out there at the moment because the market has cooled.

"It¿s a spurious argument that some commentators are putting forward that because house price growth rates have moderated that people should rent.

"Investing in the property market is a long term decision that does not rest on every wriggle in interest rates or the current pace of appreciation.

"Buying property is one of the basic tenets of long term wealth creation and that should be at the top of people¿s minds.

Geffen says that in its Survey of Consumer Finances, America¿s Federal Reserve has consistently found a huge gap between the wealth piled up by homeowners and that accumulated by renters.

Average net worth of homeowners vs. renters Annual income : Owners vs Renters
$80,000 and up : $451,200 vs $87,400
$50,000 to $79,999 : $194,610 vs $25,000
$30,000 to $49,999 : $126,500 vs $10,600
$16,000 to $29,999 : $112,600 vs $4,240
Under $16,000 : $73,000 vs $500
Source: VIP Forum, Federal Reserve Board

"As this table clearly shows, homeowners are significantly wealthier than renters- a fact that is consistent across all income groups.

"Home ownership builds wealth in two ways: through the ¿forced savings¿ of paying off a bond, and through appreciation - the rise in the home¿s value over time.

"The earlier you get in the game, the quicker you can get that appreciation working for you.

"The longer you rent, the harder it becomes to buy. You fall further and further behind."

4 keys to profitable home ownership

You¿re most likely to win by owning, rather than renting, if the following are true:

You plan to stay put at least three years and preferably more. In most markets, it can take three to six years for a home to appreciate enough to offset the costs of selling and moving. In markets that have had a great run it¿s best to enter a property investment decision with a 5 year investment horizon or longer plan to ride out a real downturn.

You¿re psychologically prepared. Home ownership means dealing with whatever comes up - from noisy neighbors to clogged plumbing. You can¿t just call the landlord for help or pack up and move as easily as when you were renting.

You have some extra savings. Home buyers who spend every cent they have buying a house are often blindsided by repairs, maintenance and all the other costs of owning a home. Then they go into debt trying to keep up their current lifestyle. Smart home buyers make sure they have an amount in savings at least equal to two bond payments after the deal closes, and preferably much more. You manage your money well. That 'forced savings' aspect discussed above works only if you can keep your hands out of the cookie jar. Otherwise, it¿s too easy to drain away your wealth with home equity loans, further advances and second bonds. If you¿re the kind of person who lives on credit cards and doesn¿t know where the money goes, you¿d be wise to clean up your financial act long before you go hunting for a house.

R 20 million for a three bedroomed apartment in Cape Town¿s V&A waterfront may seem like a ridiculous sum to pay by South African standards, but it compares favourably with Sydney and remains significantly cheaper than upmarket apartments in other international playgrounds.

Saul Geffen, Chief Executive of MortgageSA, South Africa¿s leading mortgage originator, said that even the most expensive South African apartments still trailed their international peers. He said London and New York top the list of most expensive city real estate, followed by Boston, San Francisco and Paris.

"A 130 m2 two bedroom, two bathroom apartment in London or New York will set you back about R 10 ¿ 12 million, which equates to about R 82 000 per m2, while a top Waterfront 3 bedroom apartment currently on the market for R 20 million equates to a price of R 30 000 m2 ," Geffen said.

Moving away from the Waterfront, sea-facing apartments in De Waterkant, Mouille Point, Sea Point, Bakoven, Clifton and Camps Bay come on to the market at between R 20 ¿ 25 000 m2. City Bowl penthouses are currently priced in the region of R 16 000 per square metre

Gauteng¿s most expensive apartments at Sandton¿s Michaelangelo Towers are also priced competitively alongside other financial capitals of the world. There a two bedroom apartment is currently on the market with an asking price in the region of R 32 000 m2, with apartments in less opulent complexes in Sandton asking R 16 ¿ 18 000 m2.

And Geffen said Durban is a relative steal with even the most expensive apartments in Berea asking R 12 ¿ 14 000 m2.

City Apartment prices in ZAR / m2
London (Chelsea) - R 88 000
New York (upper East side) - R 82 000
San Francisco - R 55 000
Madrid, Spain - R 33 000
Gauteng (Sandton) - R 16 ¿ 32 000
Cape Town - R 16 ¿ 30 000
Sydney Australia - R 29 000
Brisbane Australia - R 20 000
Durban - R 12 ¿ 14 000
Beijing, China - R 10 000

(Sources: www.propertygenie.co.za , November 2005 Coldwell Banker Hunt Kennedy ¿Global Metropolitan Condominium Home Price Comparison Study¿, CB Richard Ellis)

Geffen said apartment style living was still a relatively new phenomenon for South Africa¿s urbanites.

"Historically, South African¿s have wanted the house and garden, but as financial hubs like Sandton emerge, and cities like Durban and Cape Town remain business and hospitality centers we predict more and more people will want to be close to the action."

Geffen also believes that foreign buyers and corporate interest will continue to drive demand for upscale apartments. In addition, he notes ABSA economist Jacques du Toit said that SA houseprices across the board will be 80 percent higher in 5 years time as the local market continues to catch up to international valuations.

"We don¿t see the market softening for top-end apartments ¿ in fact this end of the market could well enjoy sustained real price growth due to its underlying value in the eyes of purchasers," he said.

MortgageSA, South Africa¿s leading mortgage originator today warned that the slowdown in house price growth means first time buyers need to exercise a degree of caution when buying a home.

"With house prices growth expected to be 12% in 2006 and probably less in 2007, capital growth may not cover the interest costs of a standard 108% mortgage for the first few years,¿ says Saul Geffen, Managing Director of MortgageSA. ¿That shouldn¿t scare you off, but it does mean you have to buy well," Geffen said.

The introduction of 108% bonds, which cover transfer duties and start up costs as well as the price of the property, have been a huge boon to expanding home ownership in South Africa. Many first time buyers are unable to provide a deposit and the 108% bond has got around this. And Geffen said it remains the case that banks are still very willing to lend first time buyers money and competition for new customers is fierce.

"Vigilance is what we recommend to first-time buyers at the moment. Make sure you have the headroom in your repayments to accommodate a possible interest rate rise, and shop around for the best deals," Geffen says.

MortgageSA¿s Top Ten Tips for first time buyers are:

1. Construct your own personal cashflow model and see how much you can really afford

2. Get information about all the costs upfront, levies, transfers etc. These can be as much as 8% of the cost of the property

3. Seek advice ¿ reputable bond originators give impartial advice for free

4. Shop around ¿ the lending market is competitive and there are many different products available. Don¿t jump at the first offer you are given

5. Strengthen your negotiating position by getting pre-qualified for mortgage finance

6. Check the title deeds to ensure there are no onerous title deed restrictions or servitudes

7. Get a specialist to check for structural defects or roofing problems before you buy. Also, pay attention to plumbing and electrics.

8. First time buyers should know the difference between occupation and possession. The change of ownership only takes place on the day that the transfer is registered at the Deeds Office

9. Look to maintain your level of payments if interest rates fall. Your bond originator will happily run the scenarios for you of putting away a bit extra every month into your bond repayments, and the effect this has of reducing the total cost of your loan

10. Putting a bit extra into your bond every month also turns your bond into a virtual high interest, tax-free savings account, since that money can be accessed at a later date for spending

For most of us, buying our home is the biggest investment we¿ve ever made ¿ yet too many of us go into the process uninformed, without a real sense of the risks (and hidden costs) involved. But, says MortgageSA, there¿s really no need to panic if you follow a few basic rules of thumb. Chief Executive Saul Geffen says these are some of the most important questions to ask:

Is the location of the home right?
It¿s often said that there are only three things to consider when buying property ¿ location, location and location. The old adage still holds true, says Geffen: "Your property should be an investment which will continue to grow in value in the years to come. So buyers should always look at the surrounding areas ¿ what sort of infrastructure is there, where are the nearest schools, how good or bad is security? You must consider all of these factors before putting in an offer, as they will be considered when assessing the value and the potential return on investment when you eventually sell your home."

How big a deposit do I have to put down?
Buyers should also consider the loan-to-value ratio ¿ in other words, how big a percentage of the home¿s value they have to put down as a deposit. This deposit is the equity one is willing to invest in the property, offset against the total amount of the home loan. Says Geffen, "It is a good idea to try and put down 20% as a deposit, as the bank will typically grant you a higher rate of concession than if you invested only 10%. It¿s also worth noting that you are not always obliged to put down a deposit. Some banks are happy to cover 100% of a bond plus costs ¿ however, this will impact on your interest rate discount."

How do the repayments compare to my salary?
It¿s also important to consider the repayment-to-income ratio, to determine whether you can really afford to keep up your loan repayments, and aren¿t setting yourself up to default. Typically, advises MortgageSA, the buyer¿s mortgage repayments should not exceed 30% of their gross monthly salary.

For how long will I be paying off my bond?
A 20-year (240 month) repayment term for the mortgage is fairly standard amongst most lenders. Buyers should be aware that they can negotiate for longer or shorter terms. "But," cautions Geffen, "this can affect the total cost of the mortgage in terms of interest paid over the long term. It should also be noted that some lenders will not grant bonds to buyers who may not be economically viable for the full 20 years ¿ in other words, those who are close to retirement age."

By asking these simple questions, potential buyers can take a lot of the guesswork out of what is after all a major investment, requiring careful consideration. Online resources centres can also be a good source of support, and can help buyers assess the financial implications of buying a home. Amortization, transfer cost and affordability calculators, like the ones available on www.mortgagesa.com, have been designed specifically to help buyers identify the various scenarios they may face, and work out how much flexibility they have should any of these factors change.

For professional advice on considering the financial aspects of property investment, contact MortgageSA on 0860 0123 60

The increase in traffic congestion, rise in petrol costs and slow upgrade of transport systems are driving people to buy property closer to their places of work.

"There is a global trend of people buying near their workplaces, and South Africa is no exception", says Saul Geffen, Chief Executive of MortgageSA, South Africa¿s leading bond originator that places one in five South Africans in their homes

According to the Road Traffic Management Corporation 714 340 new vehicles were sold in 2006 with an increase of 7.9% expected for 2007. The result is over 1,700 new cars a day on South African roads with the majority of these driven within the cities.

The government is unable to match the steady increase in traffic volume with the necessary upgrades in the road system and suitable public transport. These factors, coupled with an 18% increase in petrol since the beginning of the year resulting in the highest price of petrol ever recorded, affect thousands of South Africans commuting to work everyday.

"Commuting can be stressful, expensive and time consuming," says Geffen.

Commuting is also bad for your health. Research done by the University of California at Irvine¿s Institute of Transportation Studies found that hours spent behind the wheel raise blood pressure, cause workers to get sick and stay home more often and intensifies muscle pains and headaches.

"Increasingly people are choosing to plough the extra money saved on the high cost of travel into a purchase of a house nearer to their place of work, rather than face being stuck in traffic for hours" says Geffen. "It is becoming a lifestyle choice to live closer to your place of work".

With the rapid growth in economy, South African cities are beginning to parallel major international cities such as London, New York and Sydney in terms of traffic congestion and transport issues.

"South Africa is beginning to follow global trends in terms of transport problems and this directly affects property choices" says Geffen.

This trend has had a major influence on property prices as the value of properties within office centres based in areas such as Sandton and Rosebank, in Johannesburg and City Bowl in Cape Town have increased sharply.

But, while many people would like to move closer to their offices, affordability is a problem. Workers sometimes feel that commuting is a cheaper option than buying a property in an area near to their office centres. This needn¿t be a deciding factor as Geffen explains.

"People looking to buy closer to work shouldn't feel pressurised to buy within that specific area, especially if it stretches their finances to the limit" says Geffen. "Rather, they should spend more time researching the surrounding areas. More than likely they will find an area that drastically reduces the amount of travelling time and is quickly linked to their office via back roads that is better suited to their price range."

According to South African National Roads Agency there are currently 180 000 cars travelling on the N1 between Pretoria and Johannesburg. With the construction of the Gautrain along this route South Africans may find further similarities to other international cities as properties in close proximity to the stations face growing demand.

"Government is addressing the public transport situation, albeit slowly. Whilst the first phase of the Gautrain is only due to be completed in 3 years time, with no apparent relief in traffic congestion, the future benefits of living near a reliable public transport could be well worth the investment" Geffen suggests.

Nearer to the completion of the Gautrain an increase in property prices in the areas surrounding the station is expected.

South Africans are bracing themselves for the price of an average home hitting R1m in 2008 as the property market continues its steady march higher.

Tracy French, Provincial Manager at MortgageSA, South Africa's leading bond originator that places one in five South Africans in their homes, says looking at the recent trends in house price data from the ABSA House Price Index, it is likely that the average price of a home in SA will top R1m in 2008.

Nominal house price growth of 15.5% year-on-year (y/y) was recorded in April from a revised 15.7% in March, according to the latest Absa House Price Index.

This brings the average price of a house in the survey to R911 800 in April 2007.

A 10% increase from this level over the next year would see average prices hit just over R1m by May 2008.

"We are definitely in a golden era of South African property as house price growth continues unabated. The rate of increase has cooled from the heady days of 2004, but there are still double digit increases that are providing long term investors with an exceptional wealth creating opportunity.

"South African economic growth remains strong, more people than ever are entering the property market and the country is growing in popularity as a tourist and property investment hotspot."

French says that while higher values have priced some people out of the market, others are sitting on their hands hoping for a better opportunity to buy.

"Unfortunately, they are likely to be disappointed ¿ the best time to buy property always seems to be last year. Potential house buyers should not waste time and get onto the property ladder as soon as possible."

French says that an analysis of house price gains from the year 2000 serves to make the point - and illustrate the power of compounding returns.

"If an investor bought a house for R500 000 7 years ago, the value of that house would now be worth an amazing R1 747 000, a return of 250%.

"If we look at the breakdown of house prices gains each year since the turn of the millennium according to the Absa House Price Index, we see yearly gains of:

Year House price increase

A few minor changes to the interior of a house or flat can easily create the illusion of space in smaller properties.

?Creating a sense of space doesn?t have to be difficult, require an interior design degree or be inordinately expensive,? says Tracy French, Provincial Manager of MortgageSA.

?The reflective value of light is indispensable when creating space,? says French. ?Dark colours absorb light and shrink already small areas. Bright and lightly coloured walls will not only lift up the whole room but also give the impression of height.?

?But,? she warns, ?be careful of creating too much ?busyness?. A rule of thumb in smaller areas is to keep the scheme simple and monochromatic.?

Continuity and flow comes from choosing and matching pieces with similar appeal. The effect is soothing and, in this way, nothing jumps out at the viewer.

?Use as much natural light as possible? advises French. ?Natural light penetrates an interior space up to 7m and should be used to its fullest potential.?

?A positive way of maximising the effect of light is to take advantage of mirrors,? she says. ?Mirrors create depth by replicating light and also by creating the illusion of a doubled room. To make the most of this, don?t only use hanging mirrors but also mirrored surfaces such as counters and coffee tables.?

?To generate volume at night scatter a few lamps throughout the room,? says French. ?You can also use a mix of lights such as downlighters, standing and desk lamps which will brighten up the room and bounce different waves of light off different surfaces.?

The optimum use of furniture is also a good way to create space.

?Throw out anything that is not absolutely necessary which includes bulky and dark furniture, even if it did belong to your grandmother,? suggests French. ?You may find removing even one item creates far more space.?

?Rather invest in simple, streamlined furniture,? she says. ?Try to have pieces that have legs and are not boxy. Not only will you have created space but also the functionality of the room improves as well.?

On the same note, choose furniture that serves more than one function, such as a couch that turns into a bed. Storage boxes can be used as counter space or form part of a coffee table. Be careful not to use pieces that take up too much height as this crowds the room.

Placing furniture along the walls will automatically create more space in the centre of the room. Clear the walkways and keep the floor clear; if you can see from one room to another it immediately opens up the entire space.

?Focus on living within a corner leaving the furthest areas from the door open and uncluttered? she advises.

?Large carpets are good to define the space as they create an impression of generousness and continuity ? they should not be heavily patterned as plain textures work best,? French suggests.

Finally, keep the window dressings simple.

?Blinds and curtains should be hung from midway between the ceiling and the top of the window to make sure that these are not too voluminous for the space they are in,? French concludes.