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It’s a scenario which plays out time and time again. Children grow up and leave the nest to try and make their way in the world, only to find themselves sandwiched between trying to assist their parents financially and finance their own lives. There are of course numerous reasons why this plays out. People are living longer than they used to, breadwinners pass away, a parent or parents lose their jobs, unexpected and expensive medical issues crop up or there are simply too many mouths to feed. Whatever the case and despite the best intentions, children usually end up assisting their parents financially because of a lack of proper financial planning. Unfortunately, children inevitably end up being approached by their parents during a time in their lives when they can least afford it i.e. while they are trying to support their own families and service a bond and other costs. People who fall into this bracket are commonly referred to as the ‘sandwich generation’- those who are caught between their own financial needs and the financial needs of their parents. Most parents don’t want to become a financial burden to their children later on in life. Indeed, for many, it’s stressful and embarrassing to have to approach their children for assistance with housing and medical bills. Needless to say it can very difficult for the children involved too. To prevent this from happening to your child, its best to take action sooner rather than later and look after your own financial goals first. Adequate retirement savings plays a key role in this regard says Ronald King, head of technical support at PSG Wealth. He explains that while you should of course try to give your child the best opportunities you can, it’s also important to rein in spending at the expense of retirement savings. Placing the matter in context, King says that for every R4 000 needed per month in retirement, R1m is needed in capital at today’s monetary value. He adds that a good medical aid scheme will entail another R1 500 000 in capital to fund comprehensive cover for two until the age of 95. Food for thought indeed. Adds King: “Investing in your retirement first will reap richer rewards for your child’s future than if you spend that same money on coaches and extramural activities. Over and above your retirement savings, you can still provide for these extras if you can afford to, but remember that next to a good education, the most important gift you can give to your child is your own financial independence.” Another way to try and offset the possibility of a sandwich generation scenario is to try and bring down your property costs. If you have a bond on your property, consider paying more into it now which will not only shorten the term of your bond but save you money in the long run too. In addition to addressing your long term financial needs, it’s important to discuss ways in which your child can help offset costs too. Chat to your child about what they want to study and how they could perhaps contribute to their costs by finding a part-time job. In a similar vein, should your child remain at home or return home during their studies, make it clear that they need to contribute either by way of helping around the house and/or paying rent. In a nutshell, adequate planning well ahead of time can make all the difference to being a burden on your children later on in life or enjoying the time you have with them to the fullest.

The air is dry and cold, the surrounding landscape has turned brown and dull and the nights are long. Winter had made itself known which typically signals a collective shift towards hauling blankets out of cupboards and wiping dust off heaters. Your bathroom, which inevitably becomes the coldest room in the house during winter, can also be made ‘winter-ready’. According to Tile Africa’s marketing manager Debra Retief, there are a number of things people can do to heat up bathrooms while improving them at the same time. Heated towel rails: A heated towel rail is just one of the many stylish accessories that can be used to transform a bathroom from a purely functional room into a truly luxurious warm ‘cocoon’ where you can relax and boost your metabolism. There’s also nothing quite like drying off in the middle of winter with a freshly heated, toasty towel. Notes Retief: “Heated towel rails are trendy, available in a wide range of styles and will complement any bathroom. Though labelled as the ultimate luxury item for your bathroom this winter, heated towel rails are not as costly as you may expect. Heated towel rails also don’t consume a large amount of electricity as most brands have developed solutions that use less electricity, while maximising heating efficiency. “For instance, Tile Africa supplies heated towel rails featuring Dry Element Technology (DET) which provide direct ‘intelligent’ heating. Only the horizontal bars and not the vertical bars of the towel rail heat up too which saves electricity.” Ditch that icy floor: If the thought of stepping out of a nice, warm bath or shower onto an icy floor makes your toes curl, you may want to consider investing in underfloor heating in the bathroom. There are numerous underfloor heating options available on the market which are quite cost effective and energy efficient says Retief. Given the nature of the installation process, it’s best to integrate underfloor heating right from the start when your house is being built or during a renovation project. Underfloor heating raises the ambient temperature in the room, making it pleasant to step out of the bath or shower no matter what the temperature is outside. If you can’t stretch to underfloor heating, chat to an electrician about installing a bathroom-safe heater. If you do go this route, make sure you work with a professional. You don’t want to take chances with electronics in the bathroom. If this isn’t an option either, simply opt for a nice, plush memory foam bathmat which can also take the edge off an icy floor. Invest in an awesome bath: A bath during the winter months can be positively heavenly and warm you through and through. Notes Retief: “Apart from their core cleaning function, baths are a soothing reward, a meditative reprieve and provide a truly personal experience.” With this in mind – and again if you can afford it – invest in a bath that looks the part and retains heat. Materials such as copper, limestone and soapstone retain heat well and will help keep the water warmer for longer while you spoil yourself with a book or magazine or just a good soak. When purchasing a bath, make sure it gels with the rest of your bathroom, is comfortable and fits within the allocated space. Other winter warmers: Although décor doesn’t heat up a space as such, it certainly helps to create the impression of warmth. For instance, in the bathroom, you could add soft, appealing lights, paint the walls a warm, inviting colour and add natural and wood accents. Lastly, if you are of the slightly eccentric persuasion and chilly toilet seats leave you cold during winter, there are number of heated toilet seat products such as the ‘Toasty Tush’ which can be ordered online.

A recent report released by John Loos, the household and property strategist with FNB, indicates that agents who participated in the group’s Agent Survey believe that around one third of first time buyers are suffering from buyer panic. What's interesting is that although first time buyers may be buying up a storm, there doesn't seem to be any real reason for the frenzy. "The June FNB House Price Index rose by a “mediocre” 5% year-on-year, and this growth rate is only slightly above CPI inflation,” says Loos. “The good news should be that there appears little reason for first time buyers to panic that they may not be able to afford the price of a house in future if they don’t buy now, because home values are not rising fast.” South Africans have always placed home ownership high on their agendas and yes, while it is important for people to own their own homes, buying a property before you can afford to do so can have disastrous consequences. Ask most homeowners and they will tell you that the first couple of years of home ownership are the most difficult. This is perhaps understandable - a major asset has been bought, but it's not only the bond instalments that are going to have to be factored into the financial equation. Expenses such as rates and taxes, electricity and water have to be paid on a monthly basis and while non-payment of utilities can mean that the supply is cut, municipalities have a much more severe way of dealing with those who don't pay their rates - they repossess the property. The other problem is that interest rates are not static and the costs of servicing a bond will increase if the South African Reserve Bank increases the repo rate. It could be argued that a property is an asset and could be sold if the homeowner finds himself in trouble. The problem with that mind-set is that property is generally not a short term asset. Those who sell within a few years of buying often find themselves on the losing end and this is mainly due to the 'other' costs associated with homeownership. Things such as transfer fees and conveyancing costs can take a huge chunk of buyers' savings and even if the home is sold at a profit, the amount received will seldom be enough to cover all of the seller's costs. Buying a home is always going to be an emotional experience. However buyers, particularly those who are investing for the first time, should never allow this emotion to cloud their judgement. Every possible financial implication should be weighed up very carefully before a buying decision is made, and anyone who realises that his budget stands a good chance of being strained by the purchase would be better served delaying the decision until he is in a better financial position. Owning a home, but lacking the financial resources to maintain the property or to sustain any form of enjoyment outside the home is incredibly stressful. Yes, homeownership may be important, but it's not important enough to ruin a life. Take away the emotion, do the maths and make sure that you are in a strong financial position before deciding to plunge into the property market. This doesn't mean that you'll never own your own home, it merely means that you will have to rent for a few more years before you are in a position to make a well-thought out and sensibly-budgeted purchase.

Take the headache out of home buying – know what questions to ask Whether buying your dream home or a fancy new set of wheels, doing your homework upfront and knowing what questions to ask is essential in preventing any surprises down the line. ooba, South Africa’s biggest bond originator, has been finding the money for home owners for over 15 years and is well placed to offer expert advice on how to take the headache out of home buying. Assess your Affordability The question of affordability is an obvious one and very important to bear in mind from the beginning. In addition to thinking about the deposit, you need to also consider the monthly bond repayments and whether you will be able to afford to keep your property in a good condition. A good place to start is to get prequalified by ooba; this will give you an idea of what you can afford. Before signing off on the property, do a spot check to ensure that, should you need to do renovations, this has at least been accounted for in the asking price. Ensure that the location suits your lifestyle Location is crucial in ensuring that your home fits the lifestyle you lead. It is important to consider the following factors when thinking about the area you are buying in: what is the distance from home to work, is the property in a developing area where you see the resale value increasing at a considerable pace and lastly, is the neighbourhood safe? Gather a history of the property and area Do some research on the property and area; find out how long the property has been on the market and how long the current owners have been living there. If it’s possible, speak directly to the owners to find out why they are moving, just to make sure there is nothing wrong with the property. Also approach neighbours to get an idea of what their experience of the area has been. All this information should answer the question: is the property a worthy investment? Get certified Ensure that all your compliance certificates have been issued by an authorised independent contractor; these include the electricity, plumbing, gas if there is gas on the property and extra’s such as the electric fence certificate. The last thing you want is a nasty surprise with regards to compliance issues once you have moved in.

There are many good reasons why sectional title property is so popular in this country. The security of living in close proximity to your neighbours and sharing the costs of any security measures taken is possibly one of the main motivations behind this buying decision. However, there are many other benefits associated with living in a sectional title scheme, particularly when the complex has a strong, well run body corporate. Every buyer should insist on seeing the financials of the body corporate before deciding to buy into a sectional title scheme. Potential buyers should also walk around in order to gauge the overall condition of the scheme. Things such as peeling or blistered paintwork, untidy and neglected gardens and green swimming pools need to be noted. These things should be considered basic maintenance and a body corporate which is struggling to keep up with this should be viewed with caution. Levies are essentially a form of forced savings. Home maintenance is expensive and paying into a levy fund ensures that money is always available to maintain a complex. Unlike sectional title owners, those who own freehold property have to ensure that money is set aside for ongoing maintenance. Things unfortunately have a tendency to go wrong at the least opportune moments, which, given the expense usually involved, can prove to be disastrous for an unprepared homeowner. Those who own sectional title property are in a much better position when it comes to maintenance. For starters, the body corporate is responsible for the common property of a scheme and this includes the exterior of the buildings. It is also responsible for any security measures that fall outside the unit, including things like armed patrols, secured entrances and electric fencing. Anyone who owns a swimming pool can attest to the expense of keeping it in pristine condition but this too forms part of the body corporate’s responsibilities. Levies vary from complex to complex and it makes perfect sense that they will be higher in schemes that enjoy more features. That said, quite frankly, it doesn't matter how much the levies are if the body corporate doesn't keep tabs on every last cent spent, or if it doesn't use the money collected effectively. Special levies should not be regarded as a bail out for a badly run sectional title scheme. Special levies, as the name suggests, should only be raised to cover an unforeseen expense. We use the word unforeseen loosely, as the planning to raise special levies usually takes place at an AGM. In other words, special levies are not simply dumped on an unsuspecting unit holder at the drop of a hat - most schemes provide for a sort of ‘slush fund’ in order to cover any emergency maintenance. The moral of the story is simple: check the financials, check the general state of the property and make sure to keep the right people in charge of the finances at all times by exercising your vote as an owner. The last thing anyone wants is a body corporate chairman who uses levy funds for that brand new swimming pool... right in front of his very own unit.

Home buyers all over the world are increasingly opting for smaller homes packed with energy-saving equipment, luxury finishes and state-of-the-art-techology Modern lifestyles combined with the tough economic conditions of the past few years have brought about significant changes in the SA property market, especially with regard to the size of homes and stands. The latest FNB Property Barometer reveals, for example, that the size of residential stands in new developments, which averaged 1 000m2 between 1970 and 1974, has shrunk sharply to just over 500m2 since 2010. At the same time, the average size of the homes being built on those stands has dropped from the 1970–’74 average of 203m2 to 146m2 in the past two years and is still on a declining trend, while new sectional-title units now average only about 90m2 compared with 130m2 at the end of 2004. What is more, the FNB stats show that only 11,5% of new homes being built today have staff quarters and only 9,1% have a swimming pool. And since 2010, even garages have begun to be shed, with only about half (51,6%) of ] the new homes now having even a single lock-up garage as standard. Meanwhile, says Lanice Steward, MD of Cape agency Anne Porter Knight Frank, there has been a noticeable drop in the number of fourbedroom homes being built (the McMansions of the boom years) and an increase in two-bedroom homes – a trend that is no doubt being fuelled by the rising costs of home ownership and the determination of many empty-nesters to downscale to smaller, more secure and more manageable properties that don’t have rooms they never use. And SA is not alone in this experience. Statistics from all over the world show that current buyer preferences across the age spectrum are tending towards smaller homes, and not just because that’s all that’s available or all they can afford. Many people are very serious now about lowering their carbon footprint by buying homes that consume fewer resources to build and take less energy to run, while others are realising that if they have less house, they can have more home – that is, more luxury features. A recent study by the National Association of Homebuilders (NAHB) in the US, for example, found that by 2015, the average new home would not only be at least 10% smaller than now, but also much ‘greener’, more packed with technology and more suited to the smaller modern family unit. The NAHB acknowledges that the economic downturn has accelerated the trend, with smaller homes obviously costing less to build, buy and maintain. Most of today’s consumers, it notes, are also very focused on keeping utility costs down and, because home-price growth is slow, lack the equity to upgrade to bigger homes. However, it says, they might not want to anyway, since the average family size is shrinking and changing lifestyles mean a growing preference for convenience over space. In line with this, the NAHB predicts that the exclusive lounge or living room will increasingly either merge with a family room/great room including a kitchen area, or become a smaller study/library or music room. And although SA does not exactly follow the US market, a similar trend is emerging in new developments here, with more space often taking a back seat now to ‘green’ features such as solar geysers, water-saving measures and energy-efficient appliances. In short, function is rapidly becoming at least as important as form, which is a major shift for house-proud South Africans and one that potential home sellers should note. As for home buyers, says Berry Everitt, MD of the Chas Everitt International property group, those purchasing ‘off-plan’ now should make sure that their new property will be fully wired for modern communications, entertainment and security systems while it is under construction. ‘In this age of home computers, satellite TV and Internet-capable fridges, this is just as important as specifying the right carpets, tiles and countertops. It will eliminate the need for duplicate equipment, complex hook-ups and trailing extensions in your new home, not to mention the disruption and inconvenience of having additional wiring installed later on.’ Items to co nsider, suggests Berry Everitt , include: • additional plug points for computers, home-theatre systems and kitchen appliances; • a ‘clean’ power supply for your home computers; • additional TV aerial connections where you want them; • a multiple-outlet satellite TV connection; • additional, wired-in speakers for a music system; and • wiring for your security system’s movement sensors, panic buttons and perhaps even closed-circuit door or gate cameras. Taking this thought further, Adrian Goslett, CEO of RE/MAX of Southern Africa, suggests that the next logical step will be the ‘smart’ home that is fully computer controlled or, even more likely, remotely smartphone controlled. ‘With network connections and rapid advances in technologies able to transform o