Property reports clarified

propertyHARARE - Many contradictory reports about property in the last few months have confused a market that is already difficult to analyse, particularly as there are virtually no reliable statistics available on property prices achieved in Zimbabwe.

The commercial rent board is approving viable rents, whereas the residential rent boards decisions appear to be based on social not financial considerations, on all property rented to Zimbabweans. If, after legal fees and the inevitable delays, you are lucky enough to get a Rent Board judgment, the Messengers of Court are now charging approximately US$1,000.00 to evict a tenant.

Although there has been a drop since last year in some prices, the cost of proper maintenance and the required improvements will prevent many properties from achieving a viable return, even when the economy is slowly improving.

There is a dramatic difference between the market in areas where multiple occupation, no maintenance and a decline in services has become the norm, and property that is in sought after areas that is in good condition.

Some property is therefore already increasing in prices despite the limited volumes of all sales and could well improve substantially when loans become available in four to six months time.

Many properties, however, are still not achieving the prices owners are demanding, despite the lack of maintenance and the areas their homes are in.

Many residential property owners who are abroad or are moving for financial reasons, still refuse to face the major impact renting will have in our current legal environment on the value of their homes. Holding onto a home where the rent cannot cover maintenance and costs, in the hope that our anticipated national economic recovery will boost the value of their investment faster than it is deteriorating is an error we see occurring on a daily basis.

Whether investing or selling if you require any further advice or detailed information or wish to retain us to act on your behalf please contact John Spicer on [email protected]

Post published in: Economy

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