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Property News - 19 February 2015

FROM THE EDITOR

In his state of the nation address last week, President Jacob Zuma fuelled fears about foreign land ownership in South African by saying that foreigners would be barred from owning land and South African citizens will not be able to own more than 12,000 hectares, or the equivalent of two farms.

Presidential spokesman Mac Maharaj clarified recently that the ban on foreigners will apply only to agricultural land, and not residential property. Read more in No ban on foreign ownership of South African residential property, says SA government

We have received numerous comments on President Zuma address last week, we share some of them in Response to last week's Foreign Land Ownership question

What exactly is Eskom asking from Nersa? The national energy regulator (Nersa) expects to know by the end of the week whether Eskom wants a total review of Nersa’s earlier decision to grant Eskom an 8% annual tariff increase for the five years from 2013/14 to 2017/18 (MYPD3).

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The editor


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FARM: Mokopane, Limpopo
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In the News this week


No ban on foreign ownership of South African residential property, says SA government

No ban on foreign ownership of South African residential property, says SA government
Following plans to introduce a bill banning foreign ownership of land in South Africa, made public last year, the South African government has clarified for the first time that the ban will not apply to residential properties, but only to agricultural land...
No ban on foreign ownership of South African residential property, says SA government

What exactly is Eskom asking from Nersa?

What exactly is Eskom asking from Nersa?
The national energy regulator (Nersa) expects to know by the end of the week whether Eskom wants a total review of Nersa’s earlier decision to grant Eskom an 8% annual tariff increase for the five years from 2013/14 to 2017/18 (MYPD3)...
What exactly is Eskom asking from Nersa?

More buyers with more money boost property market

More buyers with more money boost property market
The average home purchase price in SA increased by 5,6% in the 12 months to end-January to R930 000, according to the latest statistics from BetterBond Home Loans, SA’s leading mortgage origination group...
More buyers with more money boost property market

Low interest rates and steadily rising prices make this a good time to invest in residential property

Low interest rates and steadily rising prices make this a good time to invest in residential property
Although it is quite frequently said that the major lending institutions are so averse to risk that it is extremely difficult to get a home loan, the current situation, says Mike van Alphen, National Manager of the Rawson Property Group’s bond origination division, Rawson Finance, has many advantages for those potential property investors whose credit records are unimpaired...
Low interest rates and steadily rising prices make this a good time to invest in residential property

Beware of lending large amounts of money

Beware of lending large amounts of money
Lending an amount over R500 000 to a buyer or seller of a property is an unusual situation, but, says Annette Evans, regional general manager of the Institute of Estate Agents, Western Cape, consumers need to be aware of the implications of a contract before they structure it to allow the lending of money between the parties involved...
Beware of lending large amounts of money

Home buyers and sellers: know what is included in and what is excluded from the sale of a property

Home buyers and sellers: know what is included in and what is excluded from the sale of a property
Many disagreements between buyers and sellers of immovable property come about because of a misunderstanding as to what the seller may remove when vacating the property – and what has to remain there...
Home buyers and sellers: know what is included in and what is excluded from the sale of a property

Contributing factors to stock shortages

Contributing factors to stock shortages
After the rosy days of 2004/5/6, when the banks were handing out money which ended in the financial collapse of 2009 and there was a complete constraint on the lending of money, things are now beginning to normalise...
Contributing factors to stock shortages

Light up your security - and your pretty garden

Light up your security - and your pretty garden
Outdoor lighting has become big business in recent years – and not only because a well-lit property is less attractive to criminals and more secure...
Light up your security - and your pretty garden

Green Building Council launches new Green Star SA Interiors tool

Green Building Council launches new Green Star SA Interiors tool
Continuing its vision to lead the transformation of the South African property sector into an environmentally sustainable industry, the Green Building Council South Africa (GBCSA) has launched its new Green Star SA Interiors tool - taking green building into the heart of every South African business...
Green Building Council launches new Green Star SA Interiors tool

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Focus On


Mokopane, Limpopo, South Africa

Mokopane, Limpopo, South Africa
New mining puts the shine on Mokopane property market

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Focus on Mokopane, Limpopo, South Africa

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Response to last week's Foreign Land Ownership question:

Dr Andrew Golding, CEO Pam Golding Property:

“Every time this issue rears its head, it further serves to erode confidence in the country as an investment destination – mainly as a consequence of issues of uncertainty. And while nationally this is still a proposal, the fact is that by its very nature it erodes foreign direct investment appetite, and potential investors who may be weighing up South Africa versus a number of other destinations will potentially simply choose to invest elsewhere.

“Certainly it is worth reiterating that the level of foreign buyers of residential property in South Africa is so insignificant relative to the total market, but more importantly, the benefits of foreign investment in property in this country and the knock-on effect of that investment far outweigh any perceived negative.

“Leasehold is not a conventional South African methodology and would require significant understanding and implementation of dramatic changes to current property practice, not to mention the question of whether or not this is a Constitutional issue as well.”

Rose White - Principal Chas Everitt Hoedspriit, Phalaborwa and Tzaneen

I think the government has not thought this bill through sufficiently. In one breath they say that they are concerned about food security and this is why they want to do it, then they say foreigners are buying expensive houses in the Cape. You wont be able to produce much food from a garden in a house in the Cape!

They would do better empowering the people or black farmers who have received land claimed farms or grants to buy farms and make sure that those farmers are producing food on their land. There is so much farm land lying fallow due to a lack of support or knowledge on how to farm.

Lew Geffen, Chairman of Lew Geffen Sotheby’s International Realty

“President Zuma’s statement that the government intends to promulgate legislation prohibiting foreign land ownership in South Africa is a severe miscalculation that is likely to have serious repercussions on investor confidence in the country.

“Considering the fact that foreign land ownership stands at less than 5%, this should not even be on the government’s agenda at a time when we are facing far bigger problems such as the energy crisis and we can, quite frankly, not afford to shake investor confidence in South Africa more than it has been already.

“While the percentage of foreign ownership is low, the calibre of ownership is exactly what we need in this country; captains of industry, multinational corporations and international social influencers of one type or another. With this proposed legislation what we are effectively saying to them is they’re not welcome here.

“My suggestion to foreigners is make hay while the sun shines; buy land now before this legislation is promulgated and a cut-off date is announced, because I can’t see the government stripping foreigners of assets without an international outcry. Those who own land before the cut-off date, should be able to retain it.”

Wendy Machanik - Real Estate Guru

It is an absolute disgrace and negative step not allowing foreigners to buy in SA – this will definitely affect the economy and deter is not stop altogether foreign investment into this country.

This foreign investment policy and the maximum 12,000 hectare ownership of land are definitely steps towards the degeneration of this country.

Both these steps will negatively impact on the property market

There is no doubt whatsoever that SA is fast following in the footsteps of the rest of Africa. This is a tragedy as this was a most promising county with a great future, this is no longer the case.


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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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