Weekly Newsletter
Friday, 15 August, 2008
Property Search | Estate Agents | List your property

Edition 31 of 2008, Friday, 15 August 2008

Dear Reader

"THE Reserve Bank held its repo rate steady at 12,0% today, as expected, citing concerns about economic growth and despite inflation surging to a record high." This indeed was the best news for property owners this week.

"While the decision will obviously not give any relief to homeowners who remain under financial pressure, it will certainly start to stem the tide of falling sentiment," said chief executive Herschel Jawitz. Realtors welcome rate decision

Home loan shocker: FNB pulls plug on property credit. This article that was placed in last weeks newsletter was indeed a shocker in the property industry. Various readers wrote and wanted more news. In answer to your questions we place the following two articles in this weeks newsletter;

  • FNB bonds 'reassessed' by iAfrica

  • Ombudsman, FNB agree on re-assessments by The Times

The real estate world is abuzz with news that a French Riviera home called the Villa Leopolda, built by King Leopold II of Belgium in 1902, has sold for $750 million to a Russian oligarch. Most Expensive Home Or Image Accessory?

This week our focus is on Klerksdorp in the North West Province and Betterbond shares some tips on House Marketing Mistakes to Avoid.

Enjoy!
The editor


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>> Property news - Retail real estate sector shows the way

Global research details how retail property has outperformed industrial, office and residential in the long term

ON A global basis, retail property appears to be the best-performing commercial property sector in the long term, according to research collated by Investment Property Databank (IPD)...

>> Realtors welcome rate decision

Realtor Jawitz Properties on Thursday welcomed the SA Reserve Bank's decision not to raise interest rates.

"While the decision will obviously not give any relief to homeowners who remain under financial pressure, it will certainly start to stem the tide of falling sentiment," said chief executive Herschel Jawitz.

Recently, there had been some good news with a drop in the petrol price, no power outages and the possibility of a settlement in Zimbabwe, he added...

>> SAR Bank interest rate decision marks the start of better times

Thursday’s decision by the SA Reserve Bank to hold interest rates at their current levels will be seen in the property market as the turning point at which trading conditions could begin to improve, says Rob Lawrence, a business development manager at Rawson Properties.

“In my view,” said Lawrence, “the market had already begun to bottom out before this announcement. Attendance at Rawson show houses the last few weekends has been excellent and the number of telephonic and email enquiries was higher than it has been for at least nine months...

>> FNB bonds 'reassessed'

First National Bank was not withdrawing already approved bonds, but rather 'reassessing' bonds where homes had not yet been transferred, FNB home loans chief executive Jan Kleynhans said on Monday.

Reacting to criticism from the Ombudsman for Banking Services, Advocate Clive Pillay, Kleynhans said bonds granted more than a year ago were being reassessed. "This applies to situations where people have bought off-plan, or where the home is still being developed...

>> Ombudsman, FNB agree on reassessments

First National Bank (FNB) said that it had held frank and fruitful discussions with the Banking Ombudsman, Advocate Clive Pillay, in which they had agreed that the bank’s criteria for re-assessing home loans approved in principle more than a year ago are "fair and equitable".

FNB said it was aware that its original statement on its re-assessment decision may not have been clear, and may have inadvertently caused unnecessary confusion and concern...

>> Keep children safe in the home

Many parents who take precautions to keep their children safe from dangers in the outside world are quite unaware that accidents in the home are one of the major causes of hospital or clinic visits.

Luckily, a few simple precautions and a dash of common sense can prevent many mishaps that could cause injury says Martin Schultheiss, CEO of the giant Homenet real estate group. The following checklist is a good start:

>> Residential sellers still not facing reality

Lanice Steward, MD of Anne Porter Knight Frank, has drawn the attention of property sellers to figures in the latest FNB Residential Review which indicate that properties now remain on the market significantly longer than previously. Just over 80% of residential properties now take up to four months to sell. Only the sales rate in the lower income groups remains stable, with homes taking on average eleven weeks to sell.

Eighty-five per cent of homes, said Steward, now sell below the asking price and the average length of time taken is 15 weeks...

>> Middle-income group shows rental stress

Middle income households who rent are beginning to show economic stress, Andrew Schaefer, managing director of national property managers Trafalgar, said.

"Our offices throughout SA report that vacancies in flats renting at R4,000 to R7,000 per month are rising, a typical occurrence in the late downward phase of the economic cycle," he said...

>> Most Expensive Home Or Image Accessory?

The real estate world is abuzz with news that a French Riviera home called the Villa Leopolda, built by King Leopold II of Belgium in 1902, has sold for $750 million to a Russian oligarch.

In the gossip-filled sewing circle that is high-end real estate, Russian tycoon Roman Abramovich was originally rumoured as the buyer, though he has denied it. The rumour was difficult to believe anyway, as it was only last week that the Chelsea Football Club owner received permission from Kensington and Chelsea council to build his own $285 million dream home in that section of London. He's only worth $23 billion after all...

>> Tax effects of lease premiums

Parties often enter into leases of vacant commercial or industrial land, subject to payment of a ‘lease premium’ by the lessee to the lessor. Tax Partner at Cameron & Prentice Chartered Accountants, David Warneke, explains the tax effects of lease premiums.

The first point to note is what exactly is envisaged by the term ‘lease premium’. In a leading case, CIR v Butcher Bros (Pty) Ltd it was held that it means ‘a consideration having an ascertainable money value passing from a lessee to a lessor … distinct from and in addition to or in lieu of rent’. It differs from rent in that it is paid in respect of the whole period of the lease. It is usually paid in a lump sum at the commencement of the lease...

>> Property enters "millionaire-makers'" phase
Brennan Carey

Young investor who lives off his real estate assets says stocking up on carefully selected residential property now will prove profitable.

Realestateweb guest columnist Brennan Carey, a professional property investor, shares his thoughts on the current market.

South Africa in the current political and economic climate has many challenges - of that there is no doubt. Those who choose to stay face many challenges, no matter what their race...

To the editor

Reader: Thank you very much for your weekly newsletter which I find very informative and interesting. You mentioned in of of your articles average building cost and I was wondering whether you have information on present building costs or where I could get building costs from.

Regards
Willie Combrinck

Editor: If the you can answer Willie on his question you can send it to news@cyberprop.com

>> News from - Property Active Centurion

Property-Active invites u to come and enjoy a fabulous exhibition with us At the Pta Show from the 27th August to 7th Sept. There will be lots of prices and vouchers to be won. Don't miss out on our dynamic team. Headed by dynamic female Rachel Lottering and partner Wayne van Niekerk and there team of active agents. Look out for our black, white and green sign that says beyond comparison.

RENTALS!! The way to go! Contact us for all your rentals in this economic situation. Shed your load on us. Let us do you're renting for you!

Our brilliant rental team will act fast and efficient on all requests.
Contact Schumca for more details:

Property Active Centurion
Tel: 012 653 4443
Fax: 012 653 5996

>> Problem property nets owner a Disney trip

An investment property that had languished on the market for more than a year earned Johannesburg businessman Jason Rowe more than he bargained for when he listed the home with Chas Everitt International.

Not only was his property sold in record time, but he also emerged the winner of the property group’s countrywide competition in which an all-expenses-paid trip for four to Disney World was up for grabs...

>> Focus on Klerksdorp, North West, South Africa

The first magistrate of the small community that settled on the banks of the Schoonspruit in 1837, Jacob de Clerq, gave his name to a town founded by Voortrekkers and built by gold mining.

In 1886, thousands of prospectors descended on the quiet rural aggregation of Klerksdorp, and today the city enjoy a healthy economy based on mining and agriculture, for which it is the center of a large district...

>> View Properties in Klerksdorp
>> View Properties in North West

>> Property of the week

North West, Klerksdorp, Doringkruin

Bedrooms: 5
Bathrooms: 3
Garages: 3

Search for property in your area

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>> BetterBond's tips to home buyers and sellers

House Marketing Mistakes to Avoid

There’s no doubt our property market has cooled down. These market conditions make it more difficult to sell a house, yet some still sell. So, why do some homes get offers and others sit on the market? Here are some of the mistakes you should avoid:

Pictures speak volumes and are noticed before the written word. Since it’s the first thing a potential buyer might see, why leave a bad first impression? The job of the photo is to entice the buyer to want to see more of the home in person.

In the description of the property, tell a potential buyer why she should make an appointment to see the home. Good marketing tells a buyer why this particular property is better than the dozens of others on the market. Tell them what makes the property unique, what was the motivating factor that made the seller buy the home in the first place.

Don’t waste time allowing an unqualified prospect to view the property. Make sure you choose an Estate Agent that will eliminate the possibility of negotiating with potential buyers who are simply not qualified to make the purchase. All potential buyers should be pre-screened before valuable time is lost.

Don’t refuse to make profit inducing repairs. Often, minor improvements will yield much more than the repair cost at the time of the sale. Ask your Estate Agent to point out what repairs will significantly increase the value of your home.

Don’t prevent access for showings. The more accessible your home is for potential buyers to see, the better the odds are of finding a person to pay your asking price. You never know if the one that couldn’t get a viewing was the one that got away!

Don’t test the market by putting your property up for sale unless you’re serious about selling. The right Estate Agent will find you buyers, and if you’re not serious about selling, you will be the one who ultimately blows the sale.

Don’t overestimate the value of your property. Many sellers overestimate the value of their home based on what they’ve put into the home over the years. The value of the property should be determined by the marketplace. If your property is selling for a higher price than other similar properties in the same area, it simply won’t sell.

Article by: Cheryl Marais – Direct Marketing Manager - Betterbond

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