The National Home Builders Registration Council is clamping down on developers flouting rules and cutting corners.
The council, which protects the interests of homeowners and regulates the home-building industry, is investigating 22 cases.
"These 22 matters," said marketing manager Beatrice Motsisi, "have been tabled before the disciplinary committee for prosecutions."
Since last April, 41 builders have been prosecuted. Penalties range from a warning to a R25000 fine or having registration being withdrawn.
The council's new chief executive, Sipho Mashinini, has declared war on builders and developers flouting technical guidelines as specified in the council's home-building manual.
"Home builders are compelled to register with the NHBRC in order to practise as builders. In this way we can monitor workmanship and prosecute those flouting regulations.
"We are committed to the maintenance of standards and are going on a nationwide education drive to ensure housing consumers understand their rights and are protected from shoddy work by home builders," Mashinini said.
He added that all new homes must be enrolled with the council 15 days prior to commencement of construction, so that housing consumers obtain protection from the five-year warranty scheme provided by the council. "However, many housing consumers are unaware of their rights, which is why we are launching a massive education drive as part of our strategy."
Bargains get young buyers onto ladders
Young working professional couples are searching for bargains as the country's property market recovers after a three-year cooling period caused by soaring household debt, interest rate hikes and the partial introduction of the National Credit Act.
The country now has an excess of housing stock, particularly in certain price categories, due to repossessions and houses being put up for sale by owners who are financially over-extended, said Lew Geffen, chairman of Sotheby's International Realty SA.
Middle-class houses, which were once in short supply and out of reach for many young professional, are now within their sights.
The young couples are negotiating with estate agents and sellers for entry-level prices for homes in traditionally middle-class suburbs in Johannesburg, Durban and Cape Town - where homes are valued at between R900000 and R5-million. Although these prices may seem out of reach for many, the young, ambitious house hunters are bargaining for entry-level and average prices.
Today, R900000 will get the buyer a little fix-me-upper in a good suburb or a smaller cluster home in some of the most sought-after middle-class enclaves.
The latest house price index compiled by Absa, one of the country's biggest mortgage lenders, puts the price of an average middle-class home - measuring between 141m² and 220m² - at R998600, compared with R917600 last June.
But some savvy young buyers are negotiating with desperate sellers and walking away with bargains, according to estate agents. However, some buyers are settling for smaller homes in good suburbs, boosting average prices.
Smaller houses - measuring between 80m² and 140m² - now boast average prices of about R843700, compared with R653000 about 12 months ago. Both these types of properties - mostly little fix-me-uppers - have topped the demand list among young couples.
Jacques du Toit, Absa's senior property analyst, said: "This is because, while many households are still under financial pressure, mortgage interest rates are at their lowest level since the mid-'70s and banks' lending criteria less stringent than a year ago.
"So, as a result of these latter conditions, demand for housing has picked up but financial stress has forced people who want to buy property to look at more affordable, thus smaller, housing.
He said: "Rising electricity prices, water tariffs, property rates and taxes linked to owning a property also have to be considered (when buying)."
Average prices for large houses - measuring 221m² to 400m² - are about R1.4-million.
"Home ownership is, of course, a great way to start building wealth, and most financial advisers will tell you it is never too early to get on to the property ladder," said Martin Schultheiss, CEO of Harcourts Africa.
"But the truth is that the average age of first-time home buyers has risen steadily in recent years, from 27 to 33 in the US, for example; from 27 to 34 in the UK and here in SA from 28 to 35, according to the latest available figures."
This trend, he said, was due to the fact that many young adults now worried about being able to keep up the repayments on a home of their own if their circumstances or the financial climate were to change. Suburbs which are attracting young couples, according to Pam Golding Properties, include:
* Johannesburg: Brackendowns, south of Johannesburg, where entry level prices average R700000, while entry prices in Kensington, east of Johannesburg, start at about R900000.
* Pretoria: Eldoraigne, where the entry price is R950000, while in Rooihuiskraal entry prices average R800000.
* Cape Town: Peers Hill and Silverglades in Fish Hoek boast several homes featuring entry-level prices of about R950000. In Sunningdale and Parklands, prices range from R800000.
* Durban: Entry-level prices in Glenwood start at about R750000. A bachelor apartment can cost R350000, while a one-bedroom apartment would sell for about R450000. A two-bedroom would cost about R650000, while a three-bedroom one can fetch R750000.
* Pinetown: About 10km from Durban, entry-level properties vary from R350000 to R500000.
* East London: Beacon Bay, which consists of about 3500 homes, the entry-price tag is about R850000, while the entry-level price in nearby Vincent is R1-million.
Pam Golding Properties this week sold a three-bedroom home in Beacon Bay's Edge Road for R1.3-million within two days, to a young couple.
Times LIVE
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The Facilitators are the One Stop NHBRC Service Centre for all Developers, Contractors and Home Owners. For more information visit our website at:
www.the-facilitators.com
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