Bringing Sense Back Into Property Market

ALLOW me space to air my concerns on the ever-escalating property market in Windhoek.

Housing is no longer a basic need but rather a money-making business. Benefiting the most are those who can afford to acquire properties at exorbitant prices, do little touch-ups and sell at ridiculous profit margins.Banks and estate agents play a big role in stimulating an environment of speculation in the property market in the country, especially in Windhoek.The duo are interested in accumulating exorbitant profits for some selfish reasons whilst ignoring the plight of the public.As a result more and more people cannot afford properties, the hardest hit being the middle-income group.Banks play a pivotal role in any society and this is a fact.However, as a business entity, they are profit-driven.The main issue is that, when coming to market related property valuation, banks are not playing a fair game – or maybe their ambitious methods of property valuation is to blame.A house selling for N$300 000 in 2005 might be selling at half a million today.This is shocking, because not even our economy is growing at this alarming rate, and as a result, houses in Windhoek have become more super-expensive compared to other parts of the country.Something needs to be done to stop this trend because it is drawing us more and more into poverty instead of delivering us from it.Estate agents or “middlemen” have established themselves as a household name in Windhoek and the coastal areas.They only go into areas where properties are in high demand, the standard of living is generally good and where the property market offers greater potential for speculation.It’s for this reason that you find a lot of them in Windhoek, Swakopmund and Walvis Bay.Their presence in these areas was supposed to be that of helping potential buyers to find affordable houses to buy, whilst at the same time helping both homeowners and prospective purchasers.Estate agents were supposed to be neutral to both parties, and in a sense create a conducive environment that would see the conclusion of a “fair” and “just” transaction.To this end, we came to learn that, estate agents take sides, in all cases they take the side of the seller.Conveyancers: in order for a property to be rightfully yours it has to follow the legal channel, and for this, you pay a deed of transfer which is calculated as a percentage of the value of your property.This is OK, but a flat fee would be very useful taking into consideration our economy in the making.In order to combat speculation, people should promote more “private sales” done on the basis of “fair property valuation practices”.I would therefore propose that, a property magazine similar to Property News and House Finder be born which will be fully dedicated to advertising private sales.There is a greater need for a higher-level intervention at local or national level where this issue can be discussed in the open, e.g.in parliament.Banks and estate agents should play fair because the society vest trust in them, and this will become more complicated if they are suspected of malpractice.Conveyancers should act more fairly and justly by introducing affordable transfer rates for the common good of all people.The City of Windhoek should improve on their methods of auctioning as these also contribute to speculation.Lastly, increases in the property market should be related closely, if not on par with housing packages offered on the job market.If employers and banks can work together, then a conducive environment for all will be created, and for this reason, Windhoek, despite its scarcity in developable land will be a good place to live in.Let’s not rush the land market – a stressed population is not a productive population.Faniel Maanda WindhoekBenefiting the most are those who can afford to acquire properties at exorbitant prices, do little touch-ups and sell at ridiculous profit margins.Banks and estate agents play a big role in stimulating an environment of speculation in the property market in the country, especially in Windhoek.The duo are interested in accumulating exorbitant profits for some selfish reasons whilst ignoring the plight of the public.As a result more and more people cannot afford properties, the hardest hit being the middle-income group.Banks play a pivotal role in any society and this is a fact.However, as a business entity, they are profit-driven.The main issue is that, when coming to market related property valuation, banks are not playing a fair game – or maybe their ambitious methods of property valuation is to blame.A house selling for N$300 000 in 2005 might be selling at half a million today.This is shocking, because not even our economy is growing at this alarming rate, and as a result, houses in Windhoek have become more super-expensive compared to other parts of the country.Something needs to be done to stop this trend because it is drawing us more and more into poverty instead of delivering us from it.Estate agents or “middlemen” have established themselves as a household name in Windhoek and the coastal areas.They only go into areas where properties are in high demand, the standard of living is generally good and where the property market offers greater potential for speculation.It’s for this reason that you find a lot of them in Windhoek, Swakopmund and Walvis Bay.Their presence in these areas was supposed to be that of helping potential buyers to find affordable houses to buy, whilst at the same time helping both homeowners and prospective purchasers.Estate agents were supposed to be neutral to both parties, and in a sense create a conducive environment that would see the conclusion of a “fair” and “just” transaction.To this end, we came to learn that, estate agents take sides, in all cases they take the side of the seller.Conveyancers: in order for a property to be rightfully yours it has to follow the legal channel, and for this, you pay a deed of transfer which is calculated as a percentage of the value of your property.This is OK, but a flat fee would be very useful taking into consideration our economy in the making.In order to combat speculation, people should promote more “private sales” done on the basis of “fair property valuation practices”.I would therefore propose that, a property magazine similar to Property News and House Finder be born which will be fully dedicated to advertising private sales.There is a greater need for a higher-level intervention at local or national level where this issue can be discussed in the open, e.g.in parliament.Banks and estate agents should play fair because the society vest trust in them, and this will become more complicated if they are suspected of malpractice.Conveyancers should act more fairly and justly by introducing affordable transfer rates for the common good of all people.The City of Windhoek should improve on their methods of auctioning as these also contribute to speculation.Lastly, increases in the property market should be related closely, if not on par with housing packages offered on the job market.If employers and banks can work together, then a conducive environment for all will be created, and for this reason, Windhoek, despite its scarcity in developable land will be a good place to live in.Let’s not rush the land market – a stressed population is not a productive population.Faniel Maanda Windhoek