Weekly Newsletter
Friday, 16 January, 2009
Property Search | Estate Agents | List your property

Edition 2 of 2009, Friday, 16 January 2009

Dear Reader

This week ABSA forecast that prime and mortgage interest rates to come down by a cumulative 300 basis points during the course of 2009 reaching a level of 12,5 % by year-end. This definitely created hope for home owners. I am of the opinion that the current economy can’t recover without stability in the real estate market. Do you agree? Send your opinion to news@cyberprop.com

In an article published on iAfrica, David Chislett, Pick ‘n Pay Fresh Living magazine, gave 11 reasons to say positive about South Africa;

11 reasons to stay positive

So you can't think of anything positive to say about South Africa right now? Well, sure, we're not surprised, but let's not panic. Here's some ammunition to counter the opinions of the doom-mongers who you meet at dinners and braais every week!

1. South Africa cares!

It's true. Despite our reputation for crime and violence, the average South African cares so much that 93 percent of us give donations of our money or time to charitable organisations. As individuals we donate R12-billion each year.

2. South Africa has it all!

With our massive cultural, geographical and biological diversity and natural beauty, we are home to eight world heritage sites, from the Greater St Lucia Wetland Park to the Vredefort Dome in North West Province.

3. Development

Since the first democratic government was elected in 1994, more than 1.47-million houses have been built, says www.southafrica.info.

4. Everyone loves our wine!

Over 363-million litres of South African wines were sold offshore in the 12 months to July 2008, an increase of 27 percent over the previous 12 months. This is despite a global economic slowdown and gloomy forecasts for the wine trade in general.

5. We have world-class writers

Nadine Gordimer and JM Coetzee have both won the most coveted literature prizes in the world: The Nobel prize for literature and the Booker prize.

6. We are going green fast!

After 13 years of research by the University of Johannesburg's Professor Vivian Alberts, South Africa can boast solar panels made from a unique metal alloy that converts light into energy at a fraction of the usual cost. The aim is to produce 450 000 solar panels every year.

7. We really are reaching for the stars

Sutherland in the Karoo is home to one of the three largest telescopes in the world. Known as the Southern African Large Telescope (Salt). It was built by an international team right here in South Africa.

8. Our musos impress the world

Jazz greats Hugh Masekela, Miriam Makeba and Vusi Mahlasela conquered the international stage, dance duo Goldfish wowed Ibiza, hard rockers Seether are huge and tenor Johan Botha is a regular on the opera circuit overseas.

9. The FIFA 2010 World Cup!

The world's premier football showcase will bring an unprecedented number of visitors to SA.

10. Our Paralympians

They brought home a stunning 30 medals and won the respect — and hearts — of everyone who watched the Games in Beijing.

11. Madiba magic

We know everyone lists our fantastic national hero Nelson Mandela, but he is more famous than the protea or even Table Mountain — an incredible South African who we celebrate today and always.

The editor


>> Real Estate news – International market – Ethiopia & Bulgaria

The Ethiopian Real Estate Market Slows

As in many countries of the world, the Ethiopian real estate has been booming for much of this decade. In many areas, prices doubled and even tripled in a span of a few years. The highest appreciation in home prices occurred in the five-year period between 2003 and 2008...

Bulgaria 2008
By Oxford Business Group*

Though Bulgaria was sidetracked by the economic slowdown, the country fared better in 2008 than many of its neighbours and fellow members of the EU, maintaining higher levels of growth, seeing a fall in inflation and recording solid rates of foreign direct investment (FDI)...

>> Batten down the hatches ‘til July, says expert

Not until July can homeowners and sellers expect the property market to show any real improvement.

That’s the word from Berry Everitt, MD of the Chas Everitt International property group, who says that while the next six months will present many opportunities for brave investors, and should see at least one more interest rate cut, “I don’t think the general confidence that is vital for a resurgence of the market will take hold until the second half of the year”...

>> Property outlook “bleak” but not all bad news

JOHANNESBURG (January 14) – FNB expects year-on-year price deflation to dog the residential property market for most, if not all, of this year.

However, while conditions for the market look bleak, John Loos, FNB Home Loans Property Strategist says in its recently released overview of the December market, that it’s not all bad news...

>> Property in 2009

Despite the expectations for lower interest rates and inflation, the outlook for the South African residential property market in 2009 remains bleak, senior property analyst at Absa, Jacques du Toit, says.

Levels of activity are set to stay subdued up to the second half of the year while prices in the middle segment of the market may decline by as much as 2.5 percent in nominal terms this year.

A further real decline in house prices of up to eight percent is expected in 2009, based on projected consumer price inflation trends and a drop in nominal prices, he said...

>> Pricing is pivotal, says Realty1IPG chief

With house price growth having slipped to a 12 year low emotions among sellers are running high, according to Mike Bester, CEO of Realty 1IPG (International Property Group), who says there are three main emotions likely being experienced by most sellers in today’s suppressed market.

The first is defiance, evidenced by sellers confronted with unwelcome pricing advice from their agents, he says...

>> SA house prices falling through the basement

Latest statistics suggest that the property market is set for a moderate decline this year, but people close to the pulse of the industry like estate agents believe there will be further severe falls in house prices and private property developments might be curtailed.

This will be good news for house buyers and property investors towards the end of the year.

The Absa house price indices, released on Friday, show that prices in the middle segment of the market grew by only 4% — the lowest growth rate since 1996...

>> Rich, famous, gvt employee: everyone's feeling property pain

Whether you're a tax collector or rich fund manager, it's become a struggle to pay rent, offload property debt

From lowly tax auditors to high-flying hedge fund managers - everyone's struggling to pay for the roof over their head these days, discovers Tabloid Tuesday, in this wrap of recent property news.

"The tax man cometh - to help" - himself, hopefully. Tabloid Tuesday reporters, fatigued by confusing tax returns and burdened by property-related tax administration, were intrigued to spot that headline on our favourite tax site, Moneywebtax.

>> Sellers take heed!

Surprisingly, given the dismal conditions currently prevailing in the KwaZulu-Natal property market, sellers still persist in ignoring the advice of property professionals and insist on over-pricing their homes.

Russell Hayes of ERA Unique Westville says while this 'maybe it will sell' mentality may not preclude a sale, it typically delays the process until the price is adjusted to more realistic levels and almost inevitably results in a lower price than the estate agent recommended at the outset...

>> Voetstoots for beginners

A voetstoots clause in an agreement of sale protects the seller against failure to obtain statutory approval for building alterations on the property which render the property unfit for its purpose.

A voetstoots sale of land means that the land is sold "as it stands". Voetstoots literally means sold ‘with a shove of the foot'. In general, a voetstoots clause is designed to protect a seller of property from liability for damages arising from hidden, unknown defects in the property. This legal principle therefore does not apply in the circumstances where a seller is aware of the existence of such latent defects and, in bad faith and with the intention to defraud, deliberately conceals the defects from a purchaser...

>> News from – Homelink Estates in Gordon’s Bay

The Value of Professionalism and Experience

Many homeowners marketing their homes for sale think selling privately is the way to go to sell their homes in this tougher market. The argument of no commission, a slightly lower asking price and knowing your own home better than anyone else unfortunately is not enough to justify going it alone in this market if you are a serious seller.

Len Wilmot of Homelink Estates in Gordon’s Bay says “Using the services and expertise of a specialised and professional estate agent is crucial if you seriously want to sell and avoid getting caught up in the viewings, negotiations and emotions of selling your property...

>> Focus on Barrydale, Western Cape, South Africa

Barrydale has the contrast of the beautifully severe Klein Karoo vistas right next to a lush and green fertile valley. And nestled in between, a cluster of cottages, once built for "nagmaal" and now much sought after by discerning people wanting to recapture the peace and tranquility of country life.

>> View Properties in Barrydale
>> View Properties in the Western Cape

>> Property of the week

Western Cape, Barrydale

Close to the village of Barrydale this 274 Hectare property has much to offer. Two houses, 4 equipped self catering cottages, private wine "kelder" and large barn. 1 Hecatre Shiraz vines with good yield. Good mountain water flows into earth dam...

Search for property in your area

Enter City/Suburb:
>> City of Joburg pulled 'con job' on residents

The City of Joburg has pulled a "con job" on its poorest residents. This is the opinion of the inner city Property Owners' and Managers Association (POMA) and the Johannesburg Inner City Business Coalition (JICBC).

The new tariffs and valuation roll have brought a host of problems for landlords and tenants, and now the two organisations are threatening the city with legal action if it fails to resolve the issues...

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