Weekly Property News
Friday, 10 September, 2010
FROM THE EDITOR

Dear Reader

According to the media the government is business crippled and the real estate industry is hampered and this all because of the National strikes we saw the last three weeks. Yes there might be a delay with the issuing of clearance certificates that can influence the property market but that is old news. Fresh off the press is the South African Reserve Bank’s decision to drop the repo rate by 50 basis points.

The major South African banks has already announced that they have reduced their lending rates by 50 basis points. Standard Bank (SBK) said it would be decreasing its prime and home loan base lending rates from 10% to 9.50%, effective Friday 10 September 2010. These rate changes apply to new and existing clients.

There has been some debate again of late about whether the fixed difference between the repo rate and the prime rate of interest is too large at 3,5 percentage points, and whether government should move to shrink it, but property experts are arguing against such a move. Don’t fight the interest rate gap, says Everitt

The Reserve Bank is to be congratulated on walking the fine line between stimulating economic activity to try to stem the tide of job losses, and not encouraging credit extension in the household sector, which is still heavily debt-ridden. This according to Richard Gray, the new CEO of the Harcourts Africa property group. Rate cut a confidence booster

The interest rate cut can also be expected to provide a welcome boost to the property market by improving affordability for many home buyers – currently one of the major constraints to a robust recovery in the property market. Adrian Goslett, CEO RE/MAX of Southern Africa. Lowest interest rate in 31 years

The most positive effect of this week’s drop in interest rates on the residential property market will be to make home ownership more affordable for first-time homebuyers. So says Jan Davel, the new MD of the RealNet group. Rate cuts will make loan qualification easier

Enjoy!
The editor

In This Issue
Featured Property

Mpumalanga, Badplaas
Vacant Land


CyberProp Property Count: 10/09/2010

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Properties for Sale: 143,402
Properties to Rent: 10,265

Local News

Property buyers face a bleak 2011

As the global economic outlook remains uncertain, property investors should brace themselves for a slowdown in the capital appreciation of their existing assets...


Don’t fight the interest rate gap, says Everitt

There has been some debate again of late about whether the fixed difference between the repo rate and the prime rate of interest is too large at 3,5 percentage points, and whether government should move to shrink it, but property experts are arguing against such a move...


Rate cut a confidence booster

This week’s interest rate cuts should help to underpin the tentative recovery that has been evident in the property market this year...


Lowest interest rate in 31 years

The 50 basis point (0,5%) interest rate cut announced in today’s Monetary Policy Committee (MPC) meeting was widely expected by leading economists, and enthusiastically welcomed by consumers as well as the property industry...


Rate cuts will make loan qualification easier

The most positive effect of this week’s drop in interest rates on the residential property market will be to make home ownership more affordable for first-time homebuyers...


Surveys provide property investment guidelines

Residential property surveys provide valuable pointers to soundly-based buying decisions in a volatile property market, says a leading property commentator...


Did the strikes affect the SA residential property market

“The answer is very definitely “yes”,” says Tony Clarke, MD of Rawson Properties. “Investor confidence, which had been noticeably encouraged by the World Cup event, has dropped markedly...


Land is next - Malema

The ANC Youth League was eyeing changes to the property clause in the Constitution after its ardent push for the nationalisation of mines, the organisation's president Julius Malema said on Thursday...


Interim interest payments during building may be deducted from loan

Rawson Properties franchises serving Johannesburg are currently marketing over 3 000 residential units in various developments. This is going well, but they are finding that those buying into plot and plan schemes quite often do not understand the interim interest payment arrangement, says Sean McCauley...


Chop power costs with heat pumps

Everyone knows that the geyser is the biggest energy-glutton in the house, gobbling up 30 to 50% of the monthly electricity usage all by itself...


Gas installations have to be certified

A rapidly increasing number of homeowners have reacted to the electricity load-shedding crisis and to the prospect of rapidly increasing electricity costs by installing gas powered energy systems, says Sean McCauley, regional executive director of Rawson Properties Gauteng and adjacent precincts...


Summer on its way and is a good time to sell

At the Cape homebuyers tend to hibernate in winter and become more active in summer – which means that if you are thinking of selling a home, now is the time to be finding a good agent (with a wide referral network), to get an accurate valuation and to ensure that a start is made to the advertising campaign...


Property syndications: tread carefully

Private investors eyeing property syndication schemes should do their homework before committing funds or a signature to any agreement...


Get a plan before you give a mandate

In the current real estate market, home sellers need to be sure that their estate agent has real marketing muscle – and is committed to using it...


Selling a home too fast can also lead to problems

This may come as a surprise to many people in some way involved in the residential property sector, but selling a home fast can lead to problems for the agent...


Improvements that pay

Some luxurious but costly improvements that are commonly viewed as value-builders are actually losers when it's time to sell...


Sectional title versus freehold ownership

Due to a number of reasons, including heightened security, affordability and a more communal way of life, sectional title living has been growing in popularity over the last decade or so...


RE/MAX Competition - Out with the old and in with the new

In line with the mantra that the spring season inspires, RE/MAX of Southern Africa aptly launched its 2010 room makeover competition on spring day, where one lucky person has the chance to win a room makeover valued at
R100 000...


Chas Everitt office appeals for more toys

As part of the nationwide ChasCares social responsibility programme, the East London West branch of the Chas Everitt International property group recently ran a hugely successful toy donation drive in aid of the CHOC Childhood Cancer Foundation...


Focus On

Badplaas, Mpumalanga, South Africa

Badplaas is situated in Mpumalanga between Machadodorp and Carolina. Badplaas is famous for the hot sulphur spring which bubbles out of the ground at a rate of 30 000 litres an hour, and which used to be known to the local tribes people as Emanzana -"the healing waters"...

>> Property in Badplaas
>> Property in Mpumalanga


Search For Properties

1. Western Cape
2. Garden Route
3. Northern Cape
4. Eastern Cape
5. KwaZulu Natal
6. Free State
7. North West
8. Gauteng
9. Mpumalanga
10. Limpopo

Search for property in your area

Enter City/Suburb:

In the Area

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

  • Durban
  • Clarens
  • Bela Bela
In the area 1 - Durban

Olympics plan an exciting prospect for Durban property market

Durban’s plan to bid for the 2020 Summer Olympics could be just the shot in the arm the local property market needs...


In the area 2 - Clarens

Clarens estate now on show to the world

The Chas Everitt International flag is now flying high at The Clarens Golf & Trout Estate, close to the picturesque village known as the Jewel of the Free State, thanks to the decision of a local property expert to purchase a Notebook® licence...


In the area 3 - Bela Bela

Homebuyers in Bela Bela are steering clear of new estate developments and seeking out existing homes and apartments in the Limpopo town..


To the editor

According to Bill Rawson, Chairman of Rawson Properties there should be a cut of at least 1% to allow significant change in residential property sales. What is you view on this? This question was placed in last week’s newsletter and although we know that 1% was not in the order of the day let’s look at what some of our readers had to say;

I have been trying to sell my property since January this year. I have dropped my price, I have been getting buyers but problem is they don’t qualify for finance. Its a tricky one, but i must say the effects of 2009 recession are still lagging on.

Simphiwe


I doubt that the drop in interest rate will give leeway for potential purchasers, considering the stringent ‘bank/NCR rules’. I do however appreciate NCR, however developers / sellers, further increase their pricing, and this is one of the main reasons why there is a sluggish movement in Sales.

I have been in the market for a second property for approximately 3 years, i have watched, analysed and researched, waiting for ‘that specific’ one, to no avail.

Call it ill-luck, but by now i know exactly what a good bargain, together with the location.

Hee Ha, to the NCR bringing into play the new act on rights of an individual. Many property contracts are “one-sided”. I also had one of my contracts torn by a very Popular Developer, due to my apposing concession clauses, that i firmly believe , had the right to dispute. Its ridulous.

Regards
Sushilla

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RE/MAX Property Associates, who are one of the three resident agencies within the Sunset Links Golf Estate, situated in Sunset Beach, has gone all out to assist in a local community initiative...

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