Weekly Newsletter
Friday, 03 July , 2009
Property Search | Estate Agents | List your property

Edition 26 of 2009, Friday, 03 July 2009

Dear Reader

South Africa like so many other countries are going through tough economical times. This is not new to us. For those of you who have been following the newsletter on a regular basis will know that the real estate sector is one of the sectors that are currently experiencing the most difficult times. Home owners that are looking at selling their properties and also home owners that are looking at renting out their properties knows what I’m referring to. Unfortunately it seems that there are still not light at the end of the tunnel;

The total number of liquidations recorded for May 2009 increased by 6.8% year-on-year from April’s 41.3% increase, data released on Monday by Statistics South Africa shows. The highest number of liquidations occurred in the financing, insurance, real estate and business services sector at 120, although this is off the 150 seen in the previous month. Next worst was wholesale and retail trade, catering and accommodation at 77, followed by manufacturing at 34. Mining and quarrying only saw one liquidation from 24 a year ago. I-Net Bridge

Days after SA Reserve Bank governor Tito Mboweni took a break from lowering South Africa's interest rates, house price data and analysis from two big banks shows property values are still falling. FNB's June house price index shows the "accelerating deflation trend remains intact" while Standard Bank's monthly property report and median house price figure confirm that the strain has not alleviated in the residential market. Unfortunately, says Standard Bank, the weakness in the market is set to continue, it said. House prices: Warnings of worse to come Residential House prices and Standard: House prices decline 4.9% y/y

With the FIFA Confederation cup now out of the way South Africans is preparing to cash in on 2010. This we see even on the “soapies” showing on national television. Is renting out your property for 2010 the right thing to do? Beware!

  • Rental scams commandeer real ads from Internet
  • How to cash in on property in 2010
  • To the editor

In answer to last week’s newsletter, What will the impact of this decision be on the real estate industry? Eskom's 31.3 percent electricity tariff increase will have a negative effect on the commercial property industry, the SA Property Owners Association (Sapoa) said on Thursday. "The huge increase will definitely have an effect on the property industry in an economy where vacancy rates are now higher, arrears are not uncommon and many retailers are closing down," said Douw de Kock, chairman of Sapoa's energy efficiency task team. Eskom buggers property

Homes in every sector of the market in Somerset West are attracting families and investors keen to own property in this popular Western Cape town, with the majority of properties offering good value for money. That’s the word from Joan Gibb, principal of the local Chas Everitt International franchise, who says the Somerset West market has rallied well in the face of the economic crisis and property downturn in contrast to surrounding areas. In the area – Somerset West

Enjoy!
The editors


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>> Real Estate news – Property execs eye second homes in Europe, Africa

LONDON (Reuters) - Global real estate markets may be in the worst shape seen for generations, but the dream of owning a second home lives on.

We asked guests at Reuters Global Real Estate Summit to tell us where they would like to buy a vacation residence or city bolthole, and continental Europe and Africa topped the list.

ALDAR PROPERTIES ALDR.AD - John Bullough, chief executive...

>> London's luxury property market ticks up

New property stats: rich investors opt for top-end London, a popular city for well-heeled South African residential real estate buyers.

In another sign that the world's well-heeled are finding property an attractive and relatively safe bet, the latest residential figures for super-prime London properties shows prices rising for the first time this year...

>> Real estate opportunities now in Swaziland

The worldwide economic crunch has left its mark on the tiny mountain kingdom of Swaziland – but also created opportunities for South African property investors.

Gaetan Ning, owner of the local Aida franchise, says residential sales in the country have dropped about 20% since last year, while auction numbers are up. “Local buyers are cautious and we are seeing the impact of the recession on our market for second and third homes, traditionally the mainstay of the local property market...

>> House prices: Warnings of worse to come Residential House prices

Fresh residential property data, analysis shows prices still falling - and "no light at the end of the tunnel".

Days after SA Reserve Bank governor Tito Mboweni took a break from lowering South Africa's interest rates, house price data and analysis from two big banks shows property values are still falling.

FNB's June house price index shows the "accelerating deflation trend remains intact" while Standard Bank's monthly property report and median house price figure confirm that the strain has not alleviated in the residential market...

>> Standard: House prices decline 4.9% y/y

The Standard Bank median house price index (smoothed) decreased by 4.9% y/y in June, following on average declines of 3.3% y/y in the first five months of the year, the latest Standard Bank property gauge showed on Wednesday.

"The trend cycle of the June data confirmed that there is still no light at the end of the tunnel and that the weakness in the property market is set to continue," said Standard Bank’s Johan Botha...

>> Rental scams commandeer real ads from Internet

Almost anything can be hijacked these days, thanks to the Internet, including advertisements for houses for rent.

And, although the risks to the property owner are minimal, according to the FBI, lured would-be renters could have money or their identity stolen by responding to the ads.

Karen Hamm of Port Orange could have been one of those victims. In need of a new place to rent, she drove past a home on Northern Road that she found on Craigslist -- a three-bedroom, two-bath, ranch-style house with a two-car garage offered for $700...

>> How to cash in on property in 2010

Home-owners are set to make easy bucks letting out properties to soccer fans. Sepp Blatter, estate agents give the low-down.

Football for many people is about the glory of the sport but when South Africa won the bid to host the FIFA 2010 Soccer World Cup, it opened a whole lot of economic opportunities for citizens to explore.

A year to go before the event, to be held in June 2010, news has emerged that the country is facing serious accommodation shortages for the over 400 000 foreign soccer fans expected to race our shores...

>> Bank charges: stop them gobbling rental income

Mike Spencer - Old-fashioned advice to curb a silent cash guzzler.

Are bank charges chewing into your rental income? I recently received a notice to let me know about the increase in bank charges on my property bonds. R52 pm service fee for each bond including second bonds, Plus R12,50 for each cheque I use to pay my bond and R16,50 when I paid in cash...

>> Interest rate outlook 2009-2010

Although a seemingly peripheral consideration, windows can play a surprisingly important role when buying a home and should be carefully inspected.

So says Harcourts Africa CEO Martin Schultheiss, who notes that older houses tend to have a few questionable window frames and latches in need of attention or even replacement due to weather or insect damage...

>> Eskom buggers property

Eskom's 31.3 percent electricity tariff increase will have a negative effect on the commercial property industry, the SA Property Owners Association (Sapoa) said on Thursday.

"The huge increase will definitely have an effect on the property industry in an economy where vacancy rates are now higher, arrears are not uncommon and many retailers are closing down," said Douw de Kock, chairman of Sapoa's energy efficiency task team...

>> Guard your credit record for the future

In the current global recessionary climate it has become more important than ever to protect your credit record.

In the past, says Martin Schultheiss, CEO of Harcourts Africa, banks were willing to make concessions for consumers with less than perfect credit records. “And, as consumers, we became used to defaulting on loans without severe repercussions...

>> Cape West Coast property will struggle for a further year

The huge problems currently being experienced in the Cape Town/Cape Peninsula property market are exacerbated to an alarming degree right now on the Cape West Coast, says Paul Henry, the MD of Rawson Developers and Construction.

The difficulties here, he said, arise from the fact that a significant percentage of the homeowners on the West Coast live elsewhere and buy here for holiday or retirement purposes – these are, therefore, their second homes...

>> Flat rentals are falling

News from the latest Rode's Report is there’s still no magic on the flat rental front, with rental growth generally fizzling out across all of the major metropolises.

In the first quarter of 2009, rental growth in Johannesburg slowed to six percent. In the other metropolises such as Durban (nine percent), Port Elizabeth (seven percent), Cape Town (six percent) and Pretoria (five percent), rental growth was also curbed somewhat by rising vacancies. Given consumer inflation of 8.4 percent for the first quarter of 2009, this means real rental growth declined across all of the regions...

>> Chas Everitt Home MakeOver - A Home Makeover with a Difference!

>> July fee increase for SA property lawyers

Siegie Heiriss - New property transfers, mortgage bond fees - at-a-glance.

In my conveyancer's diary of 8 June 2009, I mentioned that the Association of Law Societies had published a new recommended fee guideline for conveyancing matters.

This guideline, which will probably be followed by most conveyancers, will apply to new instructions received by the conveyancer as from 1 July 2009...

>> Western Cape Institute "cannot accept" fee increases for signboard erection

In a week which saw Capetonians reeling under announcements regarding increased electricity and petrol prices, the local property industry was also hit by the SA Reserve Bank’s refusal to lower interest rates further – as had been requested by most of the leading figures in the industry – and indications from Tito Mboweni that we may have seen the last interest rate drop for some time.

Then, on top of all this, the Cape Town City Council decided to make Cape estate agents’ lives still more difficult by almost tripling the fee for erecting their signboards...

>> Disqualifications from voting in sectional title meetings

Owner meetings

The right to vote is one of the normal consequences of membership of an association. An owner of a unit in a sectional title scheme is automatically a member of the body corporate and will usually have the right to vote at all of its general meetings either personally, by proxy or through another legally recognized representative.

However an owner's right to vote at general meetings may be limited by prescribed management ("PMR") 64 in certain circumstances. It provides that an owner may not vote for ordinary resolutions at general meetings if...

>> To the editor

The following article was send in by one of our readers and also CyberAgent software users;

Gladdebekswendelaar

Rapport 07/06/2009 03:02 - (SA) David van Rooyen

Iemand moet ’n baie gladde mond hê om ’n yslike netwerk eiendomsagente en tientalle prokureurs en eiendomseienaars meer as tien maande te laat glo dat hy eiendom ter waarde van R4 miljard koop, en met buitelandse geld gaan betaal, terwyl daar nooit sulke finansiering beskikbaar was nie.

Dit is presies wat mnr. Raymond Rabie, besturende direkteur van ’n obskure eiendomsmaatskappy in Boksburg wat hy uit sy huis bedryf, reggekry het.

Rabie, die seun van die eertydse Nasionale Party-minister, mnr. Jac Rabie, is die afgelope week deur die betrokkenes, wat nou uiteindelik besef dat daar niks van die transaksies gaan kom nie, bestempel as iemand wat jou “eie hemp aan jou sal terugverkoop”.

Rabie het hom voorgedoen as ’n ontwikkelaar van laekoste-huise wat ’n unieke metode ontdek het om huise betreklik goedkoop te bou. Hy het ’n span agente aangesê om vir hom ontwikkelingsgrond te soek. Hy het ook in duurder ontwikkelings belang gestel omdat dié ontwikkelings kontantvloei vir die laekoste-huisvesting sal verskaf.

Hy het uit die staanspoor voorgegee dat daar miljarde rande se finansiering uit die buiteland beskikbaar was, en daarmee wou hy sy oorlede pa se droom laat waar word.

Rabie is die besturende direkteur van Hae Kgole Real Estate and Developments wat as Mayi?khule Real Estate and Developments sake doen en as sodanig geregistreer is.

Sy span agente het oor ’n tydperk van maande meer as 160 geskikte eiendomme regoor die land opgespoor en hy het aanbiedings om te koop vir 89 daarvan onderteken. Die waarde van dié eiendom bedra sowat R4,3 miljard.

En elke keer as hy waarborge moes lewer, het hy daarin geslaag om die verkopers en hul prokureurs te oortuig om hom uitstel te gee sodat die finale reëlings vir die finansiering getref kan word.

In die geval van 32 eiendomme, wat saam sowat R1 miljard werd is, het hy selfs sover gegaan as om die oordragdokumente te laat opstel en te onderteken.

En hy het op ’n dokument wat in Sake24 se besit is waarborge gegee dat sy finansiers ’n onherroepbare, onvoorwaardelike kredietbrief ten gunste van Hae Kgole vir $1 miljard (sowat R8 miljard) uitgereik het.

Die eerste paaiement van dié geld sou binne 10 dae ná 16 Februarie uitbetaal word, waarna nog maandelikse paaiemente sou volg.

Die buitelandse geld het egter nooit vorendag gekom nie, en Rabie het elke keer geweier om te sê wie sy finansiers is, of om aan die verkopers enige dokumente van sy onderhandelinge met hulle te toon.

Die bom het drie weke gelede gebars toe ’n ontevrede verkoper se prokureur uitgevind het dat Rabie se buitelandse kontak die Nederlandse maatskappy Joint Capital Assistance (JCA) is.

Dit het toe geblyk dat JCA glad nie finansiering verskaf nie, maar net onderneem om finansiering namens kliënte te soek.

’n Bietjie speurwerk op die internet het getoon dat JCA self in groot omstredenheid gehul is omdat hy groot betalings vooraf vereis van kliënte wat finansiering soek en byna nooit met die geld vorendag kom nie.

JCA se mnr. Bernard van Meelen het per e-pos bevestig dat hulle talle telefoonoproepe en aansoeke van Rabie ontvang het, maar dat daar nooit enige ooreenkoms was om finansiering vir hom te soek nie.

Dit is toe dat die agente, sowat 60 prokureurs en 89 verkopers besef het dat daar niks van Rabie se beloftes gaan kom nie.

En Rabie self hou hom sedertdien skaars.

Op van sy briefhoofde is daar net ’n selfoonnommer. Sake24 het die nommer herhaaldelik, van vroegoggend tot laataand, geskakel, sonder dat enigiemand antwoord. Die sage van onvervulde beloftes gaan hierdie week ’n nuwe fase bereik wanneer al die betrokke prokureurs en verkopers in Johannesburg vergader om te besluit wat hul volgende stap gaan wees.

Regsoptrede teen hom lyk na ’n sterk moontlikheid.

Rabie het die agente en prokureurs selfs die dokumente laat voltooi wat nodig is om geld die land in te bring, al was daar duidelik nooit sulke geld nie.

Rabie se manewales het daartoe gelei dat eiendomsagente tien maande lank aan sy transaksies gewerk het sonder om enige kommissie te verdien, en een van hulle, ’n weduwee, het reeds haar huis en motor verloor. Van die verkopers, wat al maande wag vir hul geld terwyl bokoste oploop, ondervind ook erge geldelike probleme.

Dit gaan dus ’n ontstoke klomp mense wees wat Donderdag in Johannesburg byeenkom. En almal gaan seker één vraag vra: Hoe kon hy ons so lank aan die neus rondlei?

Share your comments with us by sending it to news@cyberprop.com

>> Weigh up purchase options in retirement villages

When you decide the time has come to sell your family home and move to a retirement village, you will most likely have to choose between sectional title and life rights options.

“And there are quite a number of factors you will need to consider in making the decision,” says Keith Nash, sales director of Sable Homes, the developer of the Retreat at Hazeldean retirement village to the east of Pretoria...

>> In the area...

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

  • Somerset West
  • Centurion
  • Knysna
>> In the area 1 – Somerset West

Somerset West property market rallying

Homes in every sector of the market in Somerset West are attracting families and investors keen to own property in this popular Western Cape town, with the majority of properties offering good value for money.

That’s the word from Joan Gibb, principal of the local Chas Everitt International franchise, who says the Somerset West market has rallied well in the face of the economic crisis and property downturn in contrast to surrounding areas...

>> In the area 2 – Centurion

In a remarkable achievement considering the current economic downturn, a real estate agency in Centurion increased its sales in April and May by a whopping 300%.

Riëtte Oosthuizen, who was recently appointed manager of the RealNet offices in Centurion, says that the figures for June also look promising and she sees further growth potential for the franchise...

>> In the area 3 – Knysna

Pam Golding Properties' sales in Knysna during May was up by 52 percent compared to the same month last year.

"Historically, Knysna's residential property sales occur mainly between November and May and as an area in total we are seeing sales activity back up to levels experienced two years ago. Our total sales for May 2009 were R14.9-million compared to R9.8-million for the same period last year. In other words, it's up by 52 percent," says Ling Dobson, area principal for Pam Golding Properties (PGP)...

>> Focus on Worcester, Western Cape, South Africa

Cape Town, includes the Worcester district as far as Wolseley, Slanghoek and Hex River Valley and stretches as far south as Villiersdorp and covers the Nuy cellar to the east.

The Worcester district is the largest and one of the most important wine-making areas in the country, producing close on 25% of South Africa's total volume of wine and spirits...

>> View Properties in the Western Cape
>> View Properties in Worcester

>> Property of the week

Western Cape, Worcester, Fairway Heights

Something completely different. Lots of glass for an unbelievable view of the mountains.

Bedrooms: 5
Bathrooms: 2
Garages: 2

Search for property in your area

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>> Phoenix Global Investments cancels listing

Mike Flax, Executive Director of Madison Property Fund Managers announced this week that Madison will not be going ahead with the listing on the Bermuda Stock Exchange of their proposed Phoenix Global Investments Fund. This, he said, was due to the disappointing results of subscriptions in the Initial Public Offering (IPO) which fell short of the Madison’s self-imposed minimum level. Those who subscribed for shares on the IPO of the new fund are being reimbursed...

>> Software at its best!

Cell Phone enquiries from the public

Buyers driving past your advertising boards will be able to see an unique Internet Number allocated to the specific property. They will then SMS that number to 35476 and will receive an SMS back with all the details of the property. At the same time the agent / agency will also be informed of a potential buyer. How's that for technology working for you! The cost - mahala! Free to all CyberAgent subscribers.

Here's a diagram on the way this process will work...

  1. Agent captures the details of the property and pictures into CyberAgent
  2. Agent updates the property to the Internet
  3. The Internet server sends back a unique number for that property
  4. Agent puts up his "For Sale" board together with our SMS board
  5. Potential buyer sees the "SMS" board and SMS's the unique number to the Internet server
  6. The Internet server sends back an SMS with all the property details and a link to the website where he/she can view pictures on the propert

If you would like to know more about the above features and benefits that CyberAgent offer, visit: www.cyberagent.co.za or email: sales@cyberprop.com

For Sale Property:
Eastern Cape Freestate Gauteng Kwazulu Natal Mpumalanga North West Northern Cape Limpopo
Western Cape

To Rent Property:
Eastern Cape
Gauteng Kwazulu Natal North West Western Cape


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