Weekly Property News
08 July 2011

Dear Reader

Although there has been a slight house price growth for the month of June, according to ABSA Home Loans, it seems that the holiday, leisure and coastal properties are still suffering the most. These sectors have not only seen the biggest drop in prices but also has the most unsold stock in the market. Says Jason Lee, Rawson Auctions’ strategist and legal expert. For those who are looking for that holiday home or that second home it seems that now is the time to buy.

On the other hand you might want to think twice;

The future of real estate investing may be less about owning property and more about buying the stocks of real estate investment trusts. Although many homeowners have seen the value of their homes plunge, investors have seen strong returns over the past 12 months. REITS.

Headlines: Absa Home Loans has seen some nominal house price growth in June in the middle segment of the SA housing market, after some price deflation occurred in recent months. Nominal price growth of just more than 1% was recorded on a year-on-year (y/y) basis in middle-segment housing in June this year, after prices were declining in the first five months compared with the corresponding period in 2010, Absa monthly house price data showed on Thursday. Absa property analyst Jacques du Toit said base effects played a role in the month under review, as price growth was tapering off 12 months ago. Absa's house price edges up

Market news: Most experts agreed that the worst is almost over, and that house prices will begin a steady if slow overall recovery next year. In addition, our experience is that sales activity has already picked up nicely in certain parts of SA and in certain sectors of the market, reducing the average time that a property is on the market before being sold from 19 weeks to 15. And with more bonds being granted now, we are sure this will translate before long into widespread value growth. The Real Estate Market – Berry Everitt

The editor

In This Issue
Featured Property

KwaZulu Natal, Hibberdene
- Bed: 3 | Bath:2
Beautiful home in elevated position in peaceful and tranquil setting. Second / holiday or retirement home...

CyberProp Property Count: 08/07/2011

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Properties for Sale: 146,619
Properties to Rent: 10,267

Local News

Hikes to hammer property

Strong indications that the South African Reserve Bank might start lifting interest rates before the end of the year will have an impact on both commercial and residential property prices warns a property auction expert...

Absa's house price edges up

Absa Home Loans has seen some nominal house price growth in June in the middle segment of the SA housing market, after some price deflation occurred in recent months...

The Real Estate Market – Berry Everitt

Although real estate sales have slowed down in the past few years, the pace of change in our industry has just kept getting faster, and many agents are battling to keep up with all the new technologies, new legislation and new consumer needs...

Below-prime bonds history?

The days of banks offering home loan rates below the prime interest rate are over.

Jan Kleynhans, the chief executive of FNB Home Loans, said yesterday home loan pricing was under pressure and he did not believe rates below the prime rate were sustainable...

The seven big hazards of trying to sell privately

Selling your home yourself and keeping the commission in your pocket instead of paying it to an estate agent may sound like a good idea, especially in a slow market, but you should be aware of the dangers before you decide on this approach...

The seven golden rules of property aquisition

It has been widely publicised that the South African property market is well on the road to recovery, although house prices remained under pressure in the first quarter of the year, and are expected to continue to do so, as reported by many financial institutions...

Most costly city on Earth

The soaring Australian dollar has turned the country's four biggest cities into some of the most expensive locations in the world, according to a new global survey published Thursday...

Buyers snap up homes in trendy inner cities

While South Africa’s property prices continue to decline with people still feeling the pinch, first-time buyers are snapping up trendy homes in affordable areas...

Construction slowdown hits Group Five

Construction group Group Five revealed on Tuesday that fully diluted headline earnings per share for the full year ended 30 June 2011 are expected to be between 45% and 55% lower (253c per share to 309c per share) compared to the 561c per share in F2010...

Band together, get a bond

Aspirant buyers struggling to get mortgage bond approval might look at a co-ownership agreement with friends or family. The banks are quite happy to lend a hand…

Investment clubs

Ongoing press coverage about the difficulties encountered by today’s property investors has recently highlighted a number of issues – but there is a general agreement that the lack of bond finance/capital has been the defining factor in the drawback by so many who previously regarded property as their prime investment channel...

Making and changing rules

Managing a sectional title scheme and, to a large extent, living in a scheme are activities regulated by the provisions of the Sectional Titles Act (the Act) and two sets of rules. The two sets of rules are prescribed in annexures to the regulations of the Act. I will refer to them as the prescribed management rules (PMR) and the prescribed conduct rules (PCR)...

Coastal and holiday properties tipped for those on the hunt for bargains

COf all the SA residential property sectors hard hit by the 2008 – 2010 downturn, it has been the holiday, leisure and coastal communities which have seen the biggest price drops and the most unsold stock on the market, says Jason Lee, Rawson Auctions’ strategist and legal expert.

Fresh insights and key trends delivered to South Africa

International real estate expert, Steve Murray, will be imparting his knowledge with South African agents in August, exclusively through RE/MAX of Southern Africa...

Focus On

Hibberdene, KwaZulu-Natal, South Africa

Hibberdene, the gateway to the Hibiscus Coast of Kwazulu Natal is a cozy little seaside town situated 97 km south of Durban and within an hour's drive to the Wild Coast Casino. It lies halfway between Scottburgh and Port Shepstone...

>> Properties in Hibberdene
>> Properties in KwaZulu-Natal

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5. KwaZulu Natal
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In the Area

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

  • The country side
  • Johannesburg
In the area 1 - The country side

If you long to downscale to a simpler lifestyle free of the work pressures, security risks and high rates and taxes associated with cities and large towns, now might be a very good time to move to the country...

In the area 2 - Johannesburg

Johannesburg CBD metamorphosis continues

Since the city’s turnaround strategy was adopted in the early 2000s, Rea Vaya BRT (Bus Rapid Transit), properly tarred roads, new taxi ranks and more affordable residential accommodation are some of the positive infrastructural changes being implemented...

To the editor

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Local news continue

Advice as to how trustees hit by CSTM demise should proceed

As the trustees of some 22,000 sectional title units formerly managed by Constantia Sectional Title Management (now in liquidation and under investigation) are receiving advice from many quarters - some good, some bad, those affected by the situation may be interested to hear what Michael Bauer, General Manger of IHFM Property Managers, advises right now...

Transferring a property to a trust deprives the donor of rights re that property

There are, says Garth Watson, a director in the legal firm, Gunstons Attorneys, a number of good reasons why a property investor might choose to set up a trust for his beneficiaries – but, he adds, those who do this and include a property in the trust’s assets often do not appreciate that the transfer of the property to a trust effectively divests them of ownership of that property...

Re/Max Launches 2011 World Long Drive Championship

RE/MAX of Southern Africa invites all long drivers and golfers to test their driving ability at the launch of the RE/MAX 2011 World Long Drive Championship...

New Companies Act 2008 - From CIPRO to CIPC

Prof Graham Paddock With effect from 1 May 2011, CIPRO is no more. The new Companies and Intellectual Property Commission has taken over the functions of both the Office of Companies and Intellectual Property Enforcement (OCIPE) and the Companies and Intellectual Property Registration Office (CIPRO)...

New foodie tenants at Cardiff Castle

“If ever there was a 100% successful upgrade of a commercial property it has to be this one,” said Bill Rawson, chairman of Rawson Properties recently. He was referring to the Cardiff Castle building in Newlands, Cape Town, which owned by investors associated with his group...

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