Weekly Newsletter
Friday, 13 February, 2009
Property Search | Estate Agents | List your property

Edition 6 of 2009, Friday, 13 February

Dear Reader

In last week’s newsletter we focused on the 1% interest rate cut and we asked our readers the following; I expect the SARB to lower rates and the banks to lower interest rates to 13% by April 2009, to 12% by June 2009, to 11,5% in August 2009 and to 11% in October 2009. What’s your opinion?

70% of the readers was of the viewpoint that interest rates will drop with another 2,5 to 3% before end of 2009. Is this just hopes or will it become reality? We can only wait and see.

“Cutting interest rates will not help the housing market unless the banks get over their “property panic” and lower their deposit requirements.” “But with the banks now requiring minimum deposits of 25% on purchases of empty land, even creditworthy clients are being shut out of the market and developers are being forced to become bankers in order to get any deals done.” Banks must come to the party, says top developer

I found the above article very interesting as I received the following cry from one of our readers, I would like to know - how is it possible for first time home buyers with no deposit to be able to afford buying a home? Read more in To the editor

This week we take a closer look at the 2009-10 budget announced by Finance Minister Trevor Manuel and the impact it might have on the property industry;

Treasury officials conceded yesterday that if the global economic downturn proved to be deeper and more prolonged than expected it would pose a significant risk to the economic growth forecast they used to underpin the 2009-10 budget announced by Finance Minister Trevor Manuel this week." (Business Day)

"The personal tax relief of R13,5bn will do much to relieve pressure on the consumer. This factor, coupled with falling inflation and interest rates, will also have a spin off effect in that existing home owners will be able to cope far better with their existing debts and bonds. It will also take the pressure off those who might previously have sold their properties too quickly.

The "no real surprises" Budget means the property market will not receive the mild boost it deserves as an engine of growth for the economy

People will always buy and sell property and supporting social
infrastructure development will ensure that more consumers will be enabled to enter the market on a sustainable basis.

As to specifics, the proposed spending on infrastructure, social
development and rural upliftment are all positive from the property point of view, even if only in the long term.

Have you thought about using peach pips for your floor? Unique way of creating atmosphere in the home, using peach pips

Get a grip… get a golf membership

The Players GC is offering CyberProp newsletter subscriber the change to enter the wonderful world of golf and get all the benefits they need as a golfer without having to outlay thousands of Rand’s to get it.

Enjoy!
The editor


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>> Real Estate news – Dubai’s real estate prices fall by 25% since its peak in Sep 2008

‘International Property Show - Dubai 2009’ to highlight world-class competitively priced properties

Real estate prices in Dubai have dropped by 25 per cent compared to its peak in September 2008, according to recent market reports. In line with this, the ‘International Property Show - Dubai 2009’, the biggest transactional property exhibition in the region, is set to capitalise on the shift in property prices in Dubai by providing end-users and investors an opportunity to acquire their ideal property units at relatively lower prices. Strategic Marketing and Exhibitions (SME), the organiser of the event, has also revealed that the event will host world-class developers within its three day run, from February 15 to 17, 2009 at the Dubai International Convention and Exhibition Centre...

>> Comments on rate cut - Institute of Estate Agents

RATES CUT WELCOMED - BUT THE BANKS’ INABILITY TO GIVE BONDS IS THE REAL PROBLEM, SAYS INSTITUTE OF ESTATE AGENTS CHAIRMAN

Ivan Neethling, the Chairman of the Western Cape branch of the Institute of Estate Agents (and National Treasurer to the organisation) has joined with other spokespeople for the residential property sector in welcoming the 1% drop in the interest rates announced on 5th February by the South African Reserve Bank’s Monetary Policy Committee. However, adds Neethling (again echoing other property spokespeople), it will take a great deal more than this to revive an industry in which sales are down 40% to 50%, prices have dropped by up to 30% and the number of agents has fallen by 50%...

MORE BANK FUNDED MORTGAGE FINANCE NOW ESSENTIAL, SAYS INSTITUTE

Although this may not have been their intention, the banks’ inability and reluctance to lend mortgage finance, a situation exacerbated by the National Credit Act, has hit the lower end of the market harder than any other, says Ivan Neethling, the MD of StartProp and the Chairman of the Institute of Estate Agents Western Cape. Three years ago Neethling founded and set up the StartProp real estate agency and today it employs 40 people in four branches - Constantia, Belhar, Mitchell’s Plain and Khayelitsha...

>> Banks must come to the party, says top developer

Cutting interest rates will not help the housing market unless the banks get over their “property panic” and lower their deposit requirements.

So says Keith Nash, sales and marketing director of leading residential developer Sable Homes, who notes: “Even at the current interest rates, there is steady demand for new homes and, more importantly from our point of view, for stands...

>> National Budget 2009

It's national budget time and hence Sanlam again offers you comprehensive commentary on the Budget 2009, announced by Finance Minister Trevor Manuel, on 11 February.

Click here for a comprehensive overview of the immediate impact of the budget on the macro economy, as well as what implications the budget announcement holds for you as an individual and for your business.

What we have for you:

We trust you will find this information useful for future planning. Please contact your Sanlam adviser or broker should you need a personal meeting or financial planning.

Sanlam
Thinking ahead, are you?

>> Property & Budget 2009: What's good, what's bad

Denise MhlangaReal estate and tax experts size up this week’s budget and what it means for property players.

Real estate and tax experts size up this week's budget and what it means for property players.

It came as no surprise to Romeo Makhubela, chief investment officer at Metropolitan Asset Managers, that transfer duty was not eased when finance minister Trevor Manuel delivered the 2009 Budget Speech on Wednesday...

>> Budget 2009/10 – Comments

Read comments from Sotheby's International Realty, Chas Everitt International , Homenet, ERA South Africa, the Institute of Estate Agents and Aida on Trevor Manuel's new Budget

Lew Geffen, chairman of Sotheby's International Realty in SA says Finance Minister Trevor Manuel is to be commended on Budget that is a neat balancing act between the demands and needs of the poor on the eve of an election and the need for restrained borrowing and spending to protect SA from the worst effects of the global financial crisis...

>> The Players GC - Get n grip get a golf membership

The Players GC is offering you the change to enter the wonderful world of golf and get all the benefits you need as a golfer without having to outlay thousands of Rand's to get it.

Benefits of membership include:

  • An official National Golf Network golf handicap card and official handicap
  • Discounted affiliated rates at courses due to SAGA affiliation. (saving you between R50 to R200 per round)
  • 2 Complimentary lessons with a PGA professional in your area worth R350
  • A free subscription to Universal Golf ezine
  • 4 Strokesaver distance guides of golf courses in your region worth R120
  • Monthly newsletters with competitions, getaways, golf tips and discounts on golf equipment

Value added services

We at The PGC do not only provide golfers with a cost effective alternative to get all the benefits they need as golfers, but also provide our members with value added services exclusive to The PGC.

These services include the following:

  • Members are welcome to email or fax scores through to us that they were unable to enter due to unforeseen circumstances and we will submit those scores to avoid the unpleasant experience of a penalty calculation which normally has a big affect on your handicap as well as handling all related queries regarding your handicap.
  • As a PGC member you will have the luxury of contacting us with any golf related query and we will personally do everything in our power to assist you in any way possible

We can offer you this incredible golf membership for only R1199 per year a R200 discount on the normal rate.

And Even more

Join from now till the end of the March and stand a chance of entertaining 3 of your friends or clients by winning one of 4 four balls at a prestigious golf course in your area worth R1800 per four ball.

To take up this incredible offer contact Neil De Bruyn on 011 998 2999

Or visit www.theplayersgolfclub.co.za and complete an online application form.

>> House prices dropping

The January oobarometer price index shows a decrease of 4.8 percent in the price of the average house.

"The oobarometer shows that the property market is continuing its negative trajectory," says Saul Geffen, chief executive of ooba (formerly MortgageSA).

The average purchase price was at R818 905 in January 2008 compared to R779 033 in January of this year...

>> Global meltdown is bringing expatriates back to SA, says Rawson

The much publicised return to South Africa of young professionals and upwardly mobile expatriates is a reality, says Bill Rawson, Chairman of Rawson Properties – and it is assisting the residential property market to climb out of its doldrums, albeit probably not to the extent that some spokespeople for the property sector have suggested...

>> Property market remains ‘in the family’

THE black middle class may be propping up the residential property market, yet those raking in the money from the house trade remain almost entirely white, News24 reports.

Much of the more than R10billion that the real estate industry earns yearly in commissions ends up with a few family-owned businesses that have not achieved much in terms of advancing black participation in the market.

After 15 years of democracy there is not even one black-controlled real estate business of consequence in the market...

>> Solution to rental disputes

Greater awareness among Western Cape landlords and tenants regarding the Rental Housing Tribunal may prove beneficial, writes ANNA-MARIE SMITH

CAPE NEWS

THE Western Cape Rental Housing Tribunal was appointed by government in 2001 and acts independently as a local watchdog to protect both parties involved in rental agreements of residential property...

>> Unique way of creating atmosphere in the home, using peach pips

At the age of six Alla le Roux was taken by his parents to Klein Zoar – the house where Wolraad Woltemade stayed during his epic rescue of the crew that was shipwrecked in Table Bay.

Klein Zoar had a peach pip floor which made such a lasting impression on Alla that in 2004, when he bought a house that had been built in 1860 in Paarl and had to renovate, his first objective was to take out most of the existing floors and replace them with peach pip floors...

>> To the editor

Reader: Could you send me more info on building houses with sand

Editor: Read more about building houses with sand in our blog; http://blog.cyberprop.com/default.blog

Reader: I would like to know - how is it possible for first time home buyers with no deposit to be able to afford buying a home? Were must we just get +- R110 000 to put down as a deposit? There's no hope for young married couples that wishes to bay their own home. Even if you could qualify for the loan and have good credit record there is no way we would be able to put down that amount of deposit required, so if we don't save for at least +-2 years, we can’t make it, and at last in 2 years everything has changed again, and we would be back to square one... I just feel so hopeless regarding this...

Kind Regards
Chantal

Editor: Are you feeling like this reader or if you have any advice for Chantal please send it to news@cyberprop.com

>> News from – Green Building Council of South Africa

Green Building Council of South Africa calling for sponsorship

The Green Building Council of South Africa (GBCSA) is calling for sponsorship in order to develop the next tool in the Green Star SA environmental rating system for buildings.

According to Bruce Kerswill, Executive Chairman of the GBCSA, the tools assess the environmental performance of buildings on a range of issues including energy, water, materials and emissions, and provide an objective assessment of how “green” a building is...

>> In the area...

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

  • Pretoria & Brits – small holdings
  • Kempton Park
  • Bantry Bay
>> In the area 1 – Pretoria and Brits

Pretoria and Brits smallholdings popular

Agricultural smallholdings in the Pretoria/Brits corridor have found favour among property buyers who prefer rural lifestyles, thanks to the improved accessibility brought about by the Bakwena highway.

Len Bornman of RealNet Plotte & Plase says the highway has had a major impact on property sales in the area. “Residents can now reach Pretoria in about 15 minutes and Johannesburg in less than an hour, which makes it viable for them to commute to city jobs...

> In the area 2 – Kempton Park

The latest trend to manifest in the family-orientated Kempton Park is that black families are pooling their resources to overcome lending restrictions and buy shared properties.

So says Mario Grobler, principal of leading local agency Homenet OR Tambo who notes that these buyers are increasingly approaching the banks for bonds with collateral derived from two or three relatives or even two separate families. And they are being approved...

>> In the area 3 – Bantry Bay

CAPE TOWN (February 09) - Pam Golding Properties has announced its securing of the highest price ever paid for a house in Bantry Bay – R36,54 million, for a luxury home situated on a rare half acre plot, with over 1 000sqm of living space. This figure substantially tops the previous record of R30 million, achieved last year in a private sale.

PGP’s area manager for the Atlantic Seaboard and City Bowl, Basil Moraitis, says the buyers are a young couple from the UK who intend to use the residence as their summer home. The house is situated on Avenue Marina, in a particularly exclusive enclave of the suburb close to the boutique hotel Ellerman House and several celebrity homes. It has panoramic views over Robben Island and beyond, and is completely sheltered from the Cape south-easter.

The home was sold within four weeks of listing, and for a record price, despite the current market conditions.

>> 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.

Hibberdene has five popular beaches, of which four are netted for safe bathing. All beaches are manned by lifeguards during season.

>> View Properties in Hibberdene
>> View Properties in KwaZulu Natal

>> Property of the week

KwaZulu Natal, Hibberdene

Bedrooms: 6
Bathrooms: 4
Garages: 4

Search for property in your area

Enter City/Suburb:
>> Cape disadvantage areas now have many good agents

Those who believe that the real estate agencies serving the less affluent areas in Greater Cape Town are more informal and less professional than their big brand rivals in the prestige suburbs simply have not appreciated how radically these organisations have changed - and this, says Ivan Neethling, Chairman of the Western Cape Institute of Estate Agents, is due largely to the training programmes promoted by the Institute over the last few years. These, he said, have established new benchmarks which all estate agencies in these areas have had to try and achieve...

>> Offering from Webmail

>> 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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