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18 July 2014
FROM THE EDITOR

Firstly, we would like to wish you a happy International Nelson Mandela Day. May his legacy live on as we strive to make a world a better place for all.

Secondly, yesterday marked a second increase of the Repo rate by the Reserve Bank's Monetary Policy Committee since the beginning of the year. MPC decided to raise the Repo Rate by 0.25 of a percentage point to 5.57%, taking the Prime Rate to 9.25%. Read an article titled Time to Fix Your Interest Rate? for a full story. You can also read Further increase in repo rate a dampener for property market for more.

According to mortgage origination group BetterBond Home Loans, the interest rate increases announced yesterday by Reserve Bank Governor Gill Marcus will translate, for existing homeowners, into an increase of some R122 a month on a 20-year home loan of R757 000 – the current national average approved bond amount. For a more detail story, read What the rate rise means to borrowers.

In the latest real estate report from Absa bankhouse - prices in South Africa have generally seen some growth in the first quarter of 2014 but in the popular middle sector of the market it is nominal. Read House prices growth in South Africa set to remain in single digits this year for more.

Adrian Goslett, CEO of RE/MAX of Southern Africa insists that, although the market has begun to shift in the seller’s favour, those wanting to achieve the best possible price in today’s market will still need to ensure that their property makes a good first impression and stands out from the competition. For his full article read Correct pricing and aesthetic appeal boosts seller's chances.

Lastly but definitely not least, we take a look at a town that, like many other South African towns in the 1800s, started off as a farm and was named Roodepoort, an Afrikaans word that means Red Valley because of the red soil that is still found in the area. See our Focus On section for more interesting facts about this historical town.


Enjoy!
The editor


Property of the Week

Little Falls, Roodepoort, Gauteng, South Africa
This home is a built to last in the highly sought after Little Falls, Roodepoort

News
Time to Fix Your Interest Rate?

On Thursday the Reserve Bank's Monetary Policy Committee decided to raise the Repo Rate by 0.25 of a percentage point to 5.57%, taking the Prime Rate to 9.25%. This is the second increase made by the MPC since the beginning of the year...


Further increase in repo rate a dampener for property market
While the residential property market in South Africa absorbed and adjusted to the January (2014) interest rate hike relatively seamlessly, there were concerns...

What the rate rise means to borrowers

The interest rate increases announced yesterday by Reserve Bank Governor Gill Marcus will translate, for existing homeowners, into an increase of some R122 a month on a 20-year home loan of R757 000 – the current national average approved bond amount...


Rate rise may make a bigger than expected difference

Yesterday’s interest rate increase was not unexpected, as Reserve Bank Governor Gill Marcus has been warning since the last meeting of the Monetary Policy Committee that it would occur if the rate of inflation breached the 6% level...


House prices growth in South Africa set to remain in single digits this year
House prices in South Africa have generally seen some growth in the first quarter of 2014 but in the popular middle sector of the market it is nominal, according to the latest real estate report from Absa bank...

Property market steaming ahead
The latest statistics from BetterBond Home Loans, show ongoing positive activity in the residential property market...

Property recovers from poor start
The JSE’s listed property sector has not managed to maintain its run of the past few years of beating the broader all share index, but it has managed to stage a strong rebound from a disastrous start in January to give investors a small return for the year to date...

Africans investing more in South Africa's Real Estate than Foreigners
Africans are grabbing a bigger slice of south Africa’s property investments as a depreciating rand in the wake of a peaceful election makes it cheaper for regional investors to buy real estate on the continent’s most prosperous economy...

Breaching a deed of sale can have very serious consequences
In tight economic times such as the present, there will always be an increase in the number of cases where a Deed of Sale is breached and ‘it goes without saying’ that this can lead to serious consequences...


Clauses to look out for in Commercial Leases

Commercial tenants aren’t as well protected by legislation as residential tenants, so make sure your lease doesn’t expose you to losses...


HOA registrations of spaces must be checked

In typical Homeowners’ Associations the various areas such as roads, the entrance and parks or green spaces within the development are split into categories: public open spaces or private open spaces and these various areas often remain registered in the developer’s name...


Access bonds by far the best way to finance upgrades and renovations to residential properties
With suburban house prices now rising at 8% to 9% per annum and with the large, sometimes overgenerous bonds of yesteryear now far harder to come by, there has been a return to the traditional concept...

Correct pricing and aesthetic appeal boosts seller's chances
Although the market has begun to shift in the seller’s favour, those wanting to achieve the best possible price in today’s market will still need to ensure that their property makes a good first impression and stands out from the competition...





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Focus On

Roodepoort, Gauteng, South Africa
Welcome to Roodepoort, a South African town that was founded in 1884 when Fred Struben discovered the first payable gold in the area. Like many other South African towns in the 1800s, this mining town started off as a farm and it was named Roodepoort...

>> View properties in Roodepoort

In The Area

The areas we are going to take a closer look at this week are;

  • Sandton
  • Crown Mines
  • Knysna
Steady demand for land in Sandton
The demand for undeveloped land in Sandton is ever present and prices have increased over the past two years as developers and buyers who want to build signature homes of their own vie for residential stands...

Crown Mines Jewel to be auctioned
Aucor Property has announced that its next multiple commercial auction to be held in Johannesburg will take place on the 14th of August 2014 at 12h00 at the Maslow Hotel in Sandton...

New resort for Knysna as holiday home market heats up again
The property market in the Garden Route town of Knysna is clearly in recovery, with the number of home sales having increased by about 55% over the previous year...

News Continue

Why your home is an asset

I read Patrick Cairns’ article “Your house is not an asset” recently, not realising that it would be a feature of my day. I had gone to see a new client (who had also read the article) and while he was filling in the balance sheet section of the information sheet, he started the debate...



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To the Editor

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"This is not advice. Clients should not act solely on the basis of the material contained in this newsletter. Items herein are general comments only and do not convey advice per se. Also changes in legislation may occur quickly. We therefore recommend that formal advice be sought before acting in any of these areas."

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