|
|
Quality Of New Stock 'a Concern'
"There are however certain disturbing issues in the market. Developments are a particular interest of mine and I am concerned about the structural quality of some of the new stock that is coming on to the market.
"In smaller towns, contractors seek to protect their reputations with good workmanship, but in the bigger centres, this may not always be the case."
He says that this issue has a lot to do with rushed demand for new housing stock: "New entrants to the market in my region account for a large percentage of the estimated 400 000 new property owners recorded countrywide during 2006. These new buyers are not necessarily well informed about structural standards and not all developers are conscientious about standards."
Van Rooyen does note that there are numerous developers who are doing their best to produce excellent products within the parameters of affordability. He believes that estate agents have a role to play in educating buyers on quality issues and that the banks are the ultimate arbiters of the value of a property and should be strict in this respect.
He explains: "In a worst case scenario, let's say a development of today has structural problems five or 10 years down the line and the buyer, with a 20-year bond in place, therefore runs the risk of being saddled with a depreciating asset. That's obviously not good news in terms of realising the benefits of wealth creation via property.
Notwithstanding these concerns however, van Rooyen says that the industry is vibrant and exciting: "I am looking forward to my new career with one of the most successful and stable franchise property marketing organisations in the country. Homenet has an enviable track record and a reputation for concern and empathy for consumer needs."
|
Posted on Tuesday, May 22, 2007 (Archive on Thursday, May 31, 2007)
Posted by hayleym Contributed by hayleym
| | Return |
|
|
|