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Monday, 11 December 2017

Of far-reaching Zimbabwean economic changes, hope and where to find bargain investment properties in the possible new era!

Patrick Chinamasa Zimbabwe’s finance minister last week presented a budget that can successfully turn around the country’s economy. This brings hope to millions of Zimbabweans resident in the country and those scattered in the diaspora who have been experiencing hardships for a long time since the infamous black Friday of 1997.  Positively commenting on the budget various economic analyst from industry organisations like CZI, ZNCC, ZCMA, CCZ, OEAZ, ZCFU etc said the budget’s masterstrokes were serious measures to cut government expenditure and the revision of the Indigenisation Act so that the 51:49 threshold would only apply to diamond and platinum sectors an independent weekly The Standard reported on Sunday 10 December 2017.  There is no doubt that the possibility is now there that investors can come into the country and increase the much needed FDI. As a result property investors also will soon become liquid and property dreams will become reality. This therefore, should bring us to talk about one of the serious problems that property investors usually face in the property market and my various proposals about how can this be resolved.
SELLING YOUR HOUSE ? THREE REASONS WHY YOU CANT DO IT YOURSELF (DIY).

Selling your house is a process about which DIY (do it yourself) doesn’t work. Many people tend to prefer the DIY way when doing various things in their lives. Probably, this is the reason why some manufacturers sell refrigerators with some parts like handles not installed but having some kind of inlets for the consumers to do it themselves. There can be many reasons why people prefer DIY. These ranges from the contentment that comes after one successfully achieves a personal task to the possibility of saving the hard earned money. Selling your house however, is something that you cannot achieve the DIY way because you compulsorily need help from other people who have trained to give special service to the complex process of selling immovable property. There are many reasons why this is so but here I will give three. More ...


THE BURDEN OF PROPERTY SEARCHING

You see people who get lump sums of cash or loan offers from a bank which are great opportunities to buy immovable property suddenly find themselves engaged in a lot of work in order to locate the right kind of a house, flat, piece of land, building, factory etc. This happens because finding the right real estate is made difficult by the fact that property prices varies greatly from area to area and cannot be compared to each other. But to the prospective buyer time will be running out because some windows of opportunities like a bank loan closes whilst cash has a temptation of being used for other things. Indeed, time is of essence to many prospects - the sooner they secure a property to buy the better. To this end this article will give you critical information about where and how exactly can one find or source properties that are for sale in Zimbabwe.


1.WHERE ? PUBLIC AUCTION OF PROPERTIES UNDER FORECLOSURE

This is the sale of immovable property due to failure by a mortgagee to service his or her loan. Generally, property is considered to be under foreclosure when the mortgagee fails to service the loan for a period of three months. The biggest advantage of these kinds of properties is that the bank or financier is not motivated to sale more than what was borrowed and direct costs incurred. Banks in Zimbabwe usually lend between 75% and 80% of the open market value. So you can get a bargain here.


HOW ? AUCTIONEERS AND ESTATE AGENTS

Auctioneers. This will probably be the first place to find properties under foreclosure. You can regularly check with established auctioneers for such opportunities.

Estate agents. Some borrowers facing the possibility of defaulting on their loan payments prefers to engage the estate agent themselves so that the house can possibly be sold at a value higher than that the bank will get through auctions.


2. WHERE ? REAL ESTATE AGENTS

Estate agents are the only individuals authorized by law to sale immovable property as a third party. The estate agents license also encompass valuation and property management and in these areas also they are the only people authorized by law to operate. This means estate agents dominate the property market as they have access to various properties originating from diverse sources like deceased estates, liquidation of assets by companies, individual sales, sales by private developers etc and they get involved with a wide spectrum of other influential professionals like chartered accountants, legal practitioners and leading personalities in sports, business, and politics.

HOW ? ESTATE AGENTS COUNCIL OF ZIMBABWE ( EACZ )

The best place to find an estate agent to deal with is the Estate Agents Council of Zimbabwe because it is the regulator of estate agents in Zimbabwe. On its website it has a list of all bona fide agents and another of those who are blacklisted for various offences ( this helps in getting rid of pernicious fraudsters ) as of that financial year. The council will also advise on the scale of commission property practitioners are required to charge by law. If you first enquire with the EACZ the advantage is you will be able to work with whatever agent you choose as an informed individual.


3. WHERE ? BUILDING SOCIETIES OR  BANKS

Building societies in Zimbabwe like CABS and FBC have been involved in the development of real estate in places like Budiriro 5 and Mainway Meadows respectively. By being involved in the provision of both real estate and mortgage finance these banks believe they give their lending business great leverage. By visiting banks you can also discover the opportunities of foreclosure properties before they are exposed to the market at the auctions.

HOW ? CALL BUILDING SOCIETIES


4. WHERE ? LOCAL AUTHORITIES or RURAL, TOWN AND CITY COUNCILS           

Though local authorities do not prefer to call their provision of immovable property in the market as real estate but housing they do have excellent opportunities real estate investors cant ignore. Local authorities do have properties strategically located on busy roads and business centers . At first they prefer to lease these to investors but this however, gives the investor the right of first refusal in the event the council decides to sale.


HOW ? CALL HOUSING AND PHYSICAL PLANNING DEPARTMENTS

The housing department is a local authority’s estate agent responsible for the sales of immovable property. The physical planning department has the physical plans of the local authority and is responsible with ensuring that whatever development that happens on the group is in line with the plans. So its wise for an invest to be always in touch with these sections of a municipality so that one is aware of what and where opportunities are available in a local authority’s jurisdiction.






In a thrust to remain focused on the purpose there might be some detail of interest the author did not give. You are therefore, welcome to enquire throw the GET AN EXPERT pop up widget on the bottom right corner of PC or the one that covers the entire screen if using a mobile gadget. Please also help the author write better by posting comments about what you think on issues raised herein. Remember your feedback is priceless!




DISCLAIMER
This article is made available for educational purposes only as well as to give you general information and a general understanding of real estate investing, not to provide specific advice. The article should not be used as a substitute for competent advice from licensed practitioners.

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