Weekly Newsletter
Friday, 10 July , 2009
Property Search | Estate Agents | List your property

Edition 27 of 2009, Friday, 10 July 2009

Dear Reader

Over the last few months we’ve reported that the banks attitude of withholding home grants are hugely to carry the blame for the poor performance of the residential sector and that the lack of credit was undermining the property market. We’ve seen cries from various of the larger property groups for the banks to come to the party and we’ve received various emails from readers requesting for the banks to do away with the required deposits.

FNB's chief executive of home loans, Jan Kleynhans, this week raised his head above the parapet to dispel what he believes are some unfair criticisms that have developed around the granting of finance for property deals. And, he gave some pointers as to what buyers, sellers and estate agents need to do to improve their prospects of finalising deals. In an article published on Realestateweb about FNB's home loan policy, Kleynhans writes that property sales remain poor and prices continue to slide because of some "deep-seated misconceptions". Property lessons from a home loan heavyweight

MR. Kleynhans, earlier this month, said that although FNB is not a dominant mortgage-granter and secures about 15 percent of the property market they are slowly increasing their share and that more than 50 percent of declined home loan applications is due to a combination of excessive debt, high living costs or poor credit records.

Will we see responses from the other banks on what FNB had to say? What is your viewpoint on what was said? Send it to news@cyberprop.com

Tenants often labour under a misconception that their personal belongings are covered under their landlord’s insurance cover for the property. So says Berry Everitt, CEO of the Chas Everitt International property group, who notes that the confusion usually arises because the insurance policy on the property owner’s bricks-and-mortar may well cover damage to a tenant’s belongings if that damage is caused by something that went wrong with the building itself – a burst geyser, for example. One of the tips he shares is to get at least three quotes from different companies. Tenants need to insure their own belongings

Dear Mr Thorne,

It has come to our attention through complaints by other tenants at the building that you have a dog at your premises. Under the agreement you signed as part of the Strata, animals are not permitted.

Please call or email me to discuss this matter as soon as possible.

Yours sincerely,

Does this sound familiar? Read more in No pets allowed?!

Enjoy!
The editors


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>> Real Estate news – Cyprus Real Estate: The Jewel Of The Mediterranean

Cyprus is a popular vacation destination, especially for Europeans who come from the dreary corners of the continent. The island boasts over 300 days of sunshine, a Mediterranean lifestyle, and a friendly population that speaks adequate levels of English to facilitate communication with visitors. Tourists can hang out at the beach, climb Mount Olympus, hideaway in quaint mountain villages, check out byzantine churches, and visit monasteries...

>> Zambia’s Heart of Africa launched

Zambia’s first fully-integrated lifestyle development, Heart of Africa, has now been officially launched – and is being very well received.

That’s the news from Mike Rowley of Legacy Holdings, the developer behind the project, which was also responsible for projects such as The Lost City and Nelson Mandela Square.

Indeed, says Janet Irwin, principal of Harcourts Zambia, which has been mandated to market Heart of Africa, more than 30 homes in the development were reserved prior to launch.

>> Sending mixed signals

The June oobarometer price index recorded a nominal increase in year-on-year house prices of 1.2 percent.

"The latest oobarometer shows a very slight improvement in year-on-year house prices," says Saul Geffen, chief executive of ooba. "Rather than suggesting a recovery in the market place, this may be attributed to a shift to higher priced properties in June, given affluent homebuyers’ ability to better adapt to strict bank lending practices...

>> Recession whips property

The global recession has not affected South Africa as badly as Europe or the US, but it has led to the significant lowering of housing prices, mortgage origination company Bond Choice said on Thursday.

Managing director for sales Kevin Mountjoy said this had brought new home ownership within the reach of a new band of potential first time investors.

Average home loan applications, he said, had dropped to between R550 000 and R600 000 with the top-end segment the most significantly affected in terms of volumes.

>> Property affordability favours buyers

The SA property market has recently seen the biggest decline in prices since 1986, and this together with a 450 basis point decline in interest rates since December has significantly improved home affordability.

Colleen Gray, MD of CENTURY 21 South Africa, says the average house price to average income ratio as calculated by First National Bank has moved strongly in favour of buyers as a result of a decline in sale prices of more than 10% in the year to end-June...

>> Distressed buyers create opportunities for property investors

Those who remain sceptical about the possibilities of a property revival are also inclined to query the repeated reports in the press claiming that investors and speculators are returning to the residential property market – but this is happening, says Mike Greeff, CEO of Greeff Properties, and the reasons for this, he believes, are not hard to find.

“Right now,” said Greeff, “the number of distressed homeowners is at an all time high. This is creating bargains for those with cash or with the ability to get a bond...

>> Sell the family home and sail into a new life

Empty-nesters – parents whose children have left home to study, travel or move to their own homes – often find it difficult to sell their family homes because of the memories and emotions attached to these properties.

Many also put off the decision because they feel that downscaling will be accompanied by a dramatic decline in their lifestyle...

>> Property lessons from a home loan heavyweight

Buyers, sellers, estate agents could do more to clinch deals.

These days much of the blame for tough market conditions being experienced in the residential property sector is being place on banks.

Critics reason that banks have raised deposit requirements and discounts to the prime rate of interest for buyers, offsetting any potential benefits from the South African Reserve Bank rapidly lowering the guiding repo rate since December. It's become common knowledge that most home loan applications are rejected...

>> Nah, we're not desperate sellers!

Most upmarkert properties are on auction for "convenience, not distress" - sellers.

In the current market, trying to sell a property is hard enough as potential buyers cannot get home loans from banks.

As a result, many properties sit on the market for longer and at times, the sellers resort to renting them out rather than settling for less than their asking price.

Auctions it would seem are becoming the trendiest and quickest method of selling property...

>> Expats boost property

HOME is where the heart is…

There has been a large increase in queries regarding local property from expats living abroad which indicates that South Africa is seeing an increase in the number of expats returning home. Is this because of the current economic climate in countries abroad — or is South Africa becoming increasingly appealing to those who originally left for greener pastures..

>> Tenants need to insure their own belongings

Tenants often labour under a misconception that their personal belongings are covered under their landlord’s insurance cover for the property.

So says Berry Everitt, CEO of the Chas Everitt International property group, who notes that the confusion usually arises because the insurance policy on the property owner’s bricks-and-mortar may well cover damage to a tenant’s belongings if that damage is caused by something that went wrong with the building itself – a burst geyser, for example...

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

>> No pets allowed?!

Dear Mr Thorne,

It has come to our attention through complaints by other tenants at the building that you have a dog at your premises. Under the agreement you signed as part of the Strata, animals are not permitted.

Please call or email me to discuss this matter as soon as possible...

>> Palms have become a defining characteristic of Shelley Point

If you were to ask any visitor to the Shelley Point security estate 160km north of Cape Town (by road) what he remembers best about the estate, the chances are that he would mention four things: the impressive adherence by all homes and the communal buildings to the Cape Vernacular white walled, black roofed, architectural style, the high standard of the golf course, the whales and dolphins of St Helena Bay – and the palm trees...

>> Big game hunter now hunts down property sales

FORMER big game hunter, who tracked lion and leopard over vast tracts of land across Zimbabwe, turned his skills to real estate in one of South Africa’s premier franchises – and recently won a national award.

Anton Coetzee , who works in partnership with the Pam Golding East London area principal Hanlie Bassingthwaighte , was judged the National Franchise Agent of the Year...

>> To the editor

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

 

>> In the area...

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

  • Alberton
  • Melkbosstrand
>> In the area 1 – Alberton

Rental demand rockets in Alberton

Rental demand in Alberton is outstripping supply as prospective homebuyers continue to be turned away by the banks.

So says Ronell van Niekerk, principal of the local Chas Everitt International franchise, who notes that any type of rental property priced at R5000pm or less is being snapped up as soon as it comes on to the market.

>> In the area 2 – Melkbosstrand

Building slowdown boosts Melkbos prices

Development constraints are giving a lift to home prices in and around beautiful Melkbosstrand on the Cape’s western seaboard.

Willie Steinmann, principal of the new Chas Everitt International franchise in the village, says that while the area offers an enviable lifestyle and has great appeal, very few new homes are being built here, a fact that strongly underpins the value of existing homes...

>> Focus on Knysna, Western Cape, South Africa

Knysna, as a tourist destination, offers an eclectic mix of attractions and activities - something for everyone. Diverse in its mix of people and its surroundings, this diversity is reflected in a range of choices of eco-tourism, cultural-tourism and heritage-tourism.

Knysna is situated on South Africa's only National Lake, which is also the country's largest permanent estuary. The waters of the Indian Ocean channel through two large sandstone cliffs, The Heads, forming the gateway to the old harbour (Thesens Jetty) from where ships carried timber to the far corners of the globe, into the wide lagoon basin...

>> View Properties in the Garden Route
>> View Properties in Knysna

>> Property of the week

Garden Route, Knysna, Pezula

Time stands still in this 7400m? fynbos paradise offering breathtaking sea views. This exquisite "Out of Africa" home has four individual suites, butler's unit, spacious open plan kitchen/lounge/dining room...

Bedrooms: 4
Bathrooms: 4
Garages: 2

Search for property in your area

Enter City/Suburb:
>> Green Star SA – Simulations and Submissions Seminar

The Green Building Council of South Africa (GBCSA) presents this 3 hour seminar to provide energy modelers, Green Star SA Accredited Professionals and others involved in Green Star SA projects with information and resources regarding the support documentation expected for Green Star SA submissions, for those credits in which simulation can be used to demonstrate compliance.

The following credits will be covered:

  • Ene-0/1: Energy Conditional Requirement and Greenhouse Gas Emissions
  • IEQ-2: Air change effectiveness
  • IEQ-9: Thermal comfort
  • IEQ-4: Daylight
  • IEQ-5: Daylight glare control

This course takes the format of a 3 hour afternoon seminar, run by the GBCSA Technical Team in conjunction with with Paul Carew of PJ Carew consulting. Guidance will be provided on the individual credits and their intent, the requisite documentation for both “Design” and “As Built” projects will be clarified, with demonstrations if how a building meets these, and energy modeling reports will be used as examples of what should be included in documentation to demonstrate credit compliance to the assessors.

The GBCSA strongly encourages anyone working with Green Star SA modeling credits to attend this seminar, which should clarify the documentation requirements and answer many of your questions.

Course Fee

  • Members- R 750 ex VAT
  • Non members- R 1250 ex VAT

Dates:

  • Wednesday 19 August 2009~ The Forum , Bryanston, Johannesburg
  • Wednesday 25 August 2009 ~ The Vineyard, Newlands, Cape Town


BOOK NOW to avoid disappointment! Registrations are done online and are taken on a first come first serve basis.

For more information please consult our website at www.gbcsa.org.za

>> 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 property

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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