Weekly Newsletter
Friday, 7 November, 2008
Property Search | Estate Agents | List your property

Edition 43 of 2008, Friday, 07 November 2008

Dear Reader

The next US President, Barack Obama has as tough job on hand. He was urged to help the US Nation’s housing finance agencies who are struggling to provide mortgages to poorer and moderate income property buyers. Will he bring a change in the US and also International property market? Send us your view points to news@cyberprop.com

When the going gets tough... the scamsters get going! This week we heard of a lady renting an apartment, and then sub-letting it to ten different people. This deal of course came to a sudden crash - but only after the scamster made off with a couple of thousands, that the defrauded people had paid - as a deposit! John Charles Mackay claims he's not in the same league as these fraudsters - after being taken to court for the Starbucks to SA deal that fell through.

This week our newsletter is filled to the brink with many interesting articles:

  • Why Africa is still appealing to investors
  • We look at the local property market :
    • The future of the local market
    • How house prices are still falling
    • Where there are still bargains to be found
  • Nedbank and their mortgage finance dealings
  • Pension Fund Managers are still looking to real estate for investment
  • SARS - a crack in the wall...
  • Low cost housing - the huge demand that can't be met

We focus our eyes this week on Hazyview in Mpumalanga.

We thank you for your correspondence - we have a few answers on questions you sent us last week.

The editor


>> Real Estate news - Africa still has investor appeal

Johannesburg - Foreign investors in South African equities and bonds may be heading for the exits, but the outside world is far from turning its back on Africa as a whole, according to investment manager Stanlib.

The contrast in sentiment was highlighted by Dylan Evans, Stanlib's UK-based director of global investment marketing...

>> Local property market outlook bleak

Price growth is at its slowest pace in 15 years and risks moving into negative territory, warns Absa Property Reporter

THE outlook for SA’s housing market in the near future is dismal, with statistics released yesterday showing that house prices last month rose at the slowest pace in more than 15 years...

>> House prices drop again

After showing a modest increase in September, Standard Bank's median house price fell back by 2.5 percent year-on-year in October, it said on Monday.

The median house price in level terms was R580 000, the same as in August.

"After a period of mostly National Credit Act (NCA) induced volatility, Standard Bank's residential property index returned to normality during July and August which presented a clearer depiction of house price trends," the bank said...

>> Keep your cool and focus on the hotspots

CAPE TOWN (November 06) - While the residential property market remains under considerable pressure there is still good opportunity for buyers wishing to capitalise on the current market and who have available funds or high equity, according to Dr Andrew Golding, CE of the Pam Golding Property group.

Commenting on the current status of the market he points out in a company media release that naturally bonded transfers have slowed more rapidly than un-bonded transfers - which have remained fairly consistent since late 2004...

>> Now Nedbank cuts back on mortgage finance - again

As Nedbank executive shrugs off rumours bank is in trouble, it clamps down on residential home loans - again.

As Nedbank (JSE: NED)chief executive Tom Boardman moved to reassure the markets that the bank was not in trouble this week, his home loans department was telling mortgage originators that it was tightening up lending criteria - again...

>> Still betting on bricks and mortar

Pension Fund managers in many markets offshore may well continue to sell down their property holdings on the back of global credit and recessionary fears. However, it appears South Africa's retirement industry is not following suit...

>> Sars "misses a property trick"
David Warneke

How to cut tax and make everyone's money go much further - expert

Realestateweb's guest columnist and tax Partner at Cameron & Prentice Chartered Accountants David Warneke revisits the Revenue Laws Amendment Bill of 2008 - which has implications for property investors. He says a new housing allowance is only second prize.

The Revenue Laws Amendment Bill of 2008 proposes an allowance for employers who sell low cost housing to their employees...

>> Strong demand for low cost housing very difficult to meet, says Rawson Properties' Chairman

Eighty percent of the demand for residential housing is now aimed at the sub R500,000 market and a large portion of the remaining demand is for homes in the R500,000 to R1 million bracket, says Bill Rawson, Chairman of Rawson Properties...

>> Stag, The Edge


Stag Properties is set to launch a R156 million two phase development in Cape Town’s East City precinct, which, says Stag’s CEO, John Schooling, will be one of several projects completely transforming this area and “restoring it to its rightful place in the city’s life”.

Known as the City Edge Hotel and Suites, the new complex will consist of 166 apartment units, 40 of which will form part of a Relais Hotels managed rental pool. All the apartments will be sold under sectional title.

>> Val de Vie investors enjoy healthy returns

Investors who bought property at the inception of the Val de Vie lifestyle estate in the Cape Winelands are already seeing a return on their investment.

So says Henriette Basson of Chas Everitt International Properties which services the Paarl/Franschhoek area, who notes that a number of stands at the popular lifestyle estate have increased in value by around 25% since the launch of its first phase in late 2005...

>> To the editor

In response to the letters we received last week:

It was reported that the rental market in Randfontein and Klerksdorp is still going strong and home owners has not yet dropped their prices.

In answer to the question; can I put my property into the hands of more than one agent to find a tenant and whoever finds the tenant first will get the contract to administer the property? Yes Michael you can.

This week to the editor:

I would like to know how much (approximately off course) it would have cost to construct a luxury 100 sq m flat with two bedrooms, a lounge/dining room, balcony, full bathroom(shower, bath, bidet, vanity basin and toilet) with a lock up garage, laundry facilities and luxury finishing - imported wall and floor tiles and taps in 1994. I would really be most grateful for the information.
Thank you

Send your viewpoint to news@cyberprop.com

>> In the area...

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

  • Rosebank
  • Musgrave
  • Helderberg Basin
>> In the area 1 - Rosebank


Of all the Cape Town southern suburbs to be transformed by the last six years of the property boom, Rosebank is quite possibly the frontrunner, says Lanice Steward, MD of Anne Porter Knight Frank, the firm which for some two years now has had a close association with Knight Frank of London...

>> In the area 2 - Musgrave

New Morningside development sells well

A new apartment development in Durban’s trendy Morningside area is selling well to young buyers, with R6,5m worth of off-plan sales already in the bag.

Lyndsay Seiler of leading real estate agency Homenet Musgrave says the market was ready for such a development, which places emphasis on security, low maintenance and high quality fittings and finishes...

>> In the area 3 - Helderberg Basin

Value for money in Helderberg Basin

The Helderberg Basin in the Western Cape, home to such picturesque towns as Somerset West and Gordon’s Bay, remains popular among property buyers thanks to a wide choice of value-for-money properties.

Gerrit van Zyl, co-owner of the Aida franchises in these towns, says buyers and investors are currently now spoilt for choice across a wide price spectrum...

>> Focus on Hazyview, Mpumalanga, South Africa

In the heart of the Lowveld, a a few kilometres outside the Kruger Nationl Park and close to scenic wonders like God's Window and Blyde River Canyon, Hazyview is perfectly positioned for exploring this enchanting region...

>> View Properties in Hazyview
>> View Properties in Mpumalanga

>> Property of the week

Mpumalanga, Hazyview

Bedrooms: 3
Bathrooms: 3
Garages: 2

Kruger Park Lodge provides a 9-hole, 18-tee golf course along the banks of the Sabie River, just ten minutes from the world famous Kuger National Park.

Search for property in your area

Enter City/Suburb:
>> Deal-maker denies he's a scamster
Andrew Golding

Businessman John Charles Mackay has denied he is a con artist, saying the collapse of deals worth more than R1-billion had caused him nothing but embarrassment and ruin.

Pam Golding Properties chief executive Andrew Golding and executive director Jacob van Niekerk launched legal action against their former schoolmate in the Cape High Court after a joint venture to bring the US coffee chain Starbucks to Southern Africa fell through...

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