| Dear Investor,
You will have no doubt realised from our latest newsletter that the various phases of transfer, are due to begin shortly. There is still a few months work required on the single residential plots area before all the roads and services are in, but we will begin the administrative procedures shortly in order that no problems delay the transfer process. Transfer itself is anticipated for May 2009.
Last year, we presented you with two options in respect of your property. Option 1 being the sale of your plot, and option 2 being the transfer of the property into your personal entity. The procedures relevant to the option you chose are contemplated below. Please adhere to them as strictly as possible.
You opted to Sell the plot:
As it currently stands your plot has not yet been sold. The economy in the country is suffering as a result of negative perception across the board. Add to this the catastrophic influences caused by the crumbling banking sector and the changed attitudes of local financial institutions to lending and we have a pretty bleak picture. Many analysts have intimated that 2009 will be a ‘buyers’ market with a confident surge taking place again in the property sector come mid to late 2009. We tend to agree with this philosophy due to what we’ve experienced in the market so far this year. Fortunately, you are in a uniquely strong position, having already paid for your property. We sincerely believe that holding onto rare property such as this for as long as possible is the most prudent method to maximising your investment.
We realise that you opted to sell the property. However, our advice would be to take transfer of the erf and hold onto it at least until the market experiences another positive surge. In time, exponential value will also be added due to the building of homes and people inhabiting Riverspray. It’s quite amazing how value is enhanced when a development is built up.
Please Note: We are embarking on an aggressive 2 month marketing drive in which we hope to sell the remaining properties in Riverspray. In the event that your property has not been sold before 17 April 2009, then you will be obliged to take transfer in accordance with the relevant conditions stated below.
Honey Attorneys (Cape Town Office) will be administering the transfer process. They will be in contact in due course to initiate and detail the following procedures:- You shall be required to conclude an Agreement of Sale
- The VAT portion, calculated at 14 percent on the original Cash Price of your plot, will be payable (into the Attorneys Trust Account) upon request by them.
- Fees in respect of the transfer of your property must be paid. These differ depending on the cash value of your property but will amount to approximately 2,5% of said value.
- All relevant transfer documentation must be signed.
If you have not properly understood the above procedure or have any other queries please don’t hesitate to contact us immediately.
Congratulations once again on your purchase of a stand in a fantastic development, this at a considerable margin under market value. We thank you for your investment and faith in Riverspray. It has proved to be a magnificent project and we look forward in anticipation to future endeavours with you.
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