Weekly Newsletter
Friday, 17 April, 2009
Property Search | Estate Agents | List your property

Edition 15 of 2009, Friday, 17 April 2009

Dear Reader

All eyes will be on South Africa this coming week as 22 April 2009 is approaching. We’ve heard and will still hear plenty more promises in the days to come. “Interest rate cuts are among the policy responses proposed to minimise the impact of the global financial downturn”, ANC treasurer-general Mathews Phosa said on Wednesday. "Reserve Bank consideration of lower interest rates, as will now be done on a monthly basis...[and] removing internal hurdles to competition," were among the proposed responses outlined by Phosa. Rates to be razed?

What is Politics?

A little boy goes to his dad and asks, "What is politics?” Dad says, "Well son, let me try to explain it this way: I'm the breadwinner of the family, so let's call me capitalism. Your Mom, she's the administrator of the money, so we'll call her the Government. We're here to take care of your needs, so we'll call you the people. The nanny, we'll consider her the Working Class. And your baby brother, we'll call him the Future. Now, think about this and see if it makes sense.

What is Property?

A big, burly man visited the pastor's home and asked to see the minister's wife, a woman well known for her charitable impulses. "Madam," he said in a broken voice, "I wish to draw your attention to the terrible plight of a poor family in this district. The father is dead, the mother is too ill to work, and the nine children are starving. They’re about to be turned into the cold, empty streets unless someone pays their rent, which amounts to R 5,500.00" "How terrible!" exclaimed the preacher's wife. "May I ask who you are?" The sympathetic visitor applied his handkerchief to his eyes. "I'm the landlord," he sobbed.

My question to you this week, “How does politics and property compare”? Send your view point to news@cyberprop.com

Three interest rate cuts since December have failed as yet to have any real impact on the residential market, says Ivan Neethling, Chairman of the Western Cape branch of the Institute of South African Estate Agents – and the reason for this, he says is still the banks’ much criticised reluctance to engage with the bond market as expected of them – and as promise at least by some. Neethling points a finger at the banks for the “disastrous” drop off in homes sales

In the area, last week we focused on Marister (Benoni) and in response we received the following from one of our readers;

Thank you for reporting on our lovely spot. Why did you have to call on quad bikes to come and pester us? One cannot have peace and quiet, bird live etc. with idiots racing up and down the road the whole day!!. We have to listen to one revving up his motor as I write!! Keep up with the other good articles we receive!. Thanks Chris! I’ve come to a conclusion, “You just cannot win them all”

The editor


>> Real Estate news – South Africa Real Estate: Turning Investors' Heads

South Africans are positively giddy that Suze Orman, a personal finance expert who is a household name in the U.S., has chosen to buy property in their country. She purchased a home in Northcliff, one of Johannesburg's poshest areas, according to iafrica.com. Apparently, South Africa is the only other country besides the US where Orman owns a place.

Orman's purchase, local real estate professionals hope, speaks well of the property market in the country. Johannesburg is becoming the city of choice for professionals and companies who want to take advantage of its closeness to African markets, Lew Geffen, Chairman of Sotheby's International Reality, told iafrica.com...

>> Property market: dark days indeed

Falling interest rates won't stop prices from dropping or ignite sales volumes - new property data, scary home loan rejection rates.

Falling interest rates won't stop property prices dropping or ignite sales volumes. The lack of credit available in the market is keeping a lid on South Africa's residential real estate market and this time we need a marked improvement in economic growth and a drop-off in unemployment figures before banks start lending again...

>> Glimmer at end of the tunnel

Recent market gains can’t be dismissed as a mere respite

I LOOKED forward to the long weekend.

I had gathered a pile of articles and magazines and promised myself that by the end of the four-day holiday I would be better informed to comment on how the government’s bail-out packages were likely to shape the outlook for the global economy, and how the decision to drop charges against ANC leader Jacob Zuma might influence South Africa’s future...

>> Neetling points a finger at banks for the "disastrous" dropoff in home sales

Three interest rate cuts since December have failed as yet to have any real impact on the residential market, says Ivan Neethling, Chairman of the Western Cape branch of the Institute of South African Estate Agents - and the reason for this, he says, is still the banks’ much criticised reluctance to engage with the bond market as expected of them - and as promised, at least by some.

Neethling said that he had come away from a recent meeting with three major banks convinced that they are finding reasons not to invest in the bond market rather than looking for reliable bond applicants...

>> A Home Makeover with a Difference!

This exciting initiative, now in it's second year involves selecting a Children’s Home and giving them a Home Makeover, transforming them into bright, new, comfortable and stimulating home environments for the children who live there.

If you are interested in participating in this rewarding project or prepared to donate materials that can be used please contact the Chas Everitt office near you or Tracey Everitt...

>> Rates to be razed?

Interest rate cuts are among the policy responses proposed to minimise the impact of the global financial downturn, ANC treasurer-general Mathews Phosa said on Wednesday.

The slowdown in foreign exchange due to the commodities "meltdown", is one of the country's biggest challenges, he told a gathering of the ANC's Progressive Business Forum at Gallagher Estate in Midrand...

>> SA is easy

A whole list of successfully managed international sports events has proved to the world that South Africa is a safe haven for this type of activity — and has the skills and dedication to see that they run smoothly.

This was according to Tony Clarke, MD of Rawson Properties, who listed 24 major events ranging from the Rugby World Cup, the A1 Grand Prix and the Nedbank Golf Challenge to the Comrades Marathon and certain surf-ski and mountain biking events to bear witness to his statement...

>> Why I'm not a fan of property - Piet Viljoen

SA property has held up relatively well; Viljoen's not the only fund manager to think it's over-priced.

Regarding Capital Management founder Piet Vijoen does not think the listed property sector is offering good value at the moment. Viljoen is not alone in this view; last month Moneyweb noted that Prescient’s Herman Steyn was not a big fan or property, bonds or preference shares.

South African property shares have held up pretty well, not falling as much as other listed counters. According to Equinox, the best-performing unit trust over a five-year period is the Stanlib Property Income Fund...

>> Property sellers beware: 4 financial pitfalls

*Watch out for these buyer “risk points” before you agree to a deal.

Sellers acceptance of offers to purchase a year or so ago was usually a mere formality with few hitches, but in today's environment, sellers need to be on high alert when entertaining offers to purchase. Grant Gavin of RE/MAX Panache gives pointers on how sellers can protect their interests in the sale process...

>> Mortgage finance for the self-employed

JOHANNESBURG (April 16) - The banks have become a lot more cautious when assessing self-employed mortgage bond applicants. Gone are the days that an income letter from an accountant, supported by six months bank statements, sufficed.

In this challenging economic climate, banks want to scrutinise the stability of the organistion before they will consider a self-employed applicant as a viable debtor, irrespective of the security offered as collateral. It’s now all about affordability and sustainability! So how do self-employed entrepreneurs ensure that they are first in line when it comes to laying their hands on some of the available funds in the banks’ coffers...

>> New electrical certificate rulings now being used

New rulings regarding the issuing of electrical compliance certificates for residential properties, which will come into effect from the 1st of May this year (2009), will simplify the demands made on sellers and buyers of residential property.

Pointing this out, Lanice Steward, MD of Anne Porter Knight Frank, said that the regulations had traditionally made it mandatory for the seller of a property to give the purchaser a certificate confirming that the electrical installations were in working order...

>> Greening your life

There’s no doubt that gardens add value to our lives. They have been around in one form or another since the Dark Ages and are becoming increasingly important to the health and welfare of city dwellers.

A well tended garden can sell a home in an instant, so the time and resources spent on upgrading the garden will be well worth the effort. Having said that, it is not necessary to spend a fortune to make a garden attractive...

>> Many investors now have well over one-third their assets in property

The accepted financial wisdom, said to have been first propounded by Rothschilds was that an individual’s investments should be roughly equally divided (one-third each) between cash, investments (in this day the stock exchange) and property – but this view is taking a knock right now, says Lanice Steward, MD of Anne Porter Knight Frank.

Not surprisingly, said Steward, there have this year been major investors who have now opted to have up to two-thirds of their resources in property - and who are now delighted with their decision...

>> Estate Duty – The Donation of Limited Interests

Following on the example in the last edition of Finance Matters, Estate Duty savings as opposed to Estate Duty deferment can actually be achieved with the utilisation of limited interests.

In the last edition, I covered the use of usufructs as an effective means of protecting assets for future beneficiaries and also highlighted the associated benefits of this type of disposition due to the deferment of the Estate Duty liability. As indicated by the example, no savings are actually achieved in the long term because of the value included in the estate of the usufructuary when the usufruct terminates. Using exactly the same example, however, if the usufructuary were to donate his usufruct to the bare dominium holder during his lifetime, the eventual estate duty liability could be significantly less...

>> To the editor

To the editor;

I have recently had plans approved for building alterations to my property in Jeffreys Bay.
The plans are for a 40sqm extension to an existing property.

My question is simply, if I choose to have the extension built to the same dimensions in timber rather than brick will I need to submit new plans?

Mike Hancock

From the editor;

The best would be to speak to your Local Council that approved your building plan in the first place.

It all depends on their “kindness”.

To the editor;

The following property humour was send in by Caroline de Wet, RE/MAX 2000;

Send your viewpoints or comments on any of the articles, or questions you may have to news@cyberprop.com

>> News from Durr Plattekloof

Where to Turn When Your Home Doesn’t Sell

Cape Town – If your home has just come off the market and hasn’t sold, don’t be discouraged. The reason your home did not sell may have nothing to do with your home or the market. In reality, your home may have been one of the most desirable properties for sale.

If your listing has expired and you still want results, before you put your home back on the market, take a step back and review your situation...

>> In the area...

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

  • Stellenbosch
  • Louis Trichardt
  • Centurion
>> In the area 1 – Stellenbosch

Property owners in the Western Cape town of Stellenbosch should be as pleased as punch with the way local prices are holding up in contrast with tumbling values elsewhere in the country.

So says Elmarie van Huyssteen, principal of the local Chas Everitt International franchise who notes that a shortage of property in the town that has persisted since the boom years is helping to prop up prices. “And most owners and investors here can afford to sit out the property storm, so there has been no panic selling and no sudden rush of auctions or foreclosures...

>> In the area 2 – Louis Trichardt

The property market in the small Limpopo town of Louis Trichardt is weathering the downturn better than most.

So says Jana Smith, principal of leading local agency Homenet Jana Marie, who notes that property prices in the town have remained fairly stable over the past six months with no real decline. Foreclosures and auctions have yet to occur on any scale, retail and residential development is going ahead and enquiries and sales have remained brisk...

>> In the area 3 – Centurion

A central locality, easy access to business and retail nodes and a plethora of affordable sectional title apartments and townhouses means that Centurion, remarkable in recent years for its upmarket lifestyle estates, is still an ideal option for first-time buyers.

Paul Greyling, principal of the local Chas Everitt International franchise, says the town’s sectional title properties have been popular among buy-to-let investors in recent years and that many are now coming back on to the market at good prices because the rentals that can be achieved do not cover the monthly home loan instalments at current interest rates...

>> Focus on Makhado ( Louis Trichardt), Limpopo, South Africa

Originally named after the Voortrekker leader Louis Trichardt, the town was recently renamed Makhado. It is a town in perfect harmony with its spectacular surroundings. Louis Trichardt is located at the foot of the densely forested Soutpansberg Range in a highly fertile, rapidly growing agricultural area...

>> View Properties in Makhado/Louis Trichardt
>> View Properties in Limpopo

>> Property of the week

Limpopo, Louis Trichardt

Bedrooms: 5
Bathrooms: 3
Garages: 3

Search for property in your area

Enter City/Suburb:
>> Hard work pays off

Top mortgage originators are rewarded for dedication and commitment

What are the trademarks of a good bond origination consultant, one that is considered to be a top performer? Marsha Haupt, Betterbond director of sales, explains the qualities of a top performing origination consultant. “A good mortgage origination consultant maintains high standards of professionalism and reflects a professional image in all they do. Their general attitude towards work is characterised by integrity and a high degree of concern for quality as well as adhering to the codes laid down for the property industry...

>> Offering from Webmail

>> Software at its best!

The Property Manager provides you with a very extensive and detailed list of criteria which you can capture for your property listings and gives you the control to decide how you would want these properties to be displayed on the Internet

  • Manage property for sale and previously sold
  • Activate or deactivate Internet listings with immediate effect - no waiting!
  • Keep track of your On Show and On Special properties and list them on your website
  • Print and email multiple reports
  • Unlimited number of pictures
  • Keep a history database

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