Weekly Property News
17 June 2011
FROM THE EDITOR

Dear Reader

"Leaks are a favoured tool of the political plotter. I think journalists have to be really, really aware of that and cautious," says Franz Kruger, the head of radio journalism at Wits University. I’m sure there are many home owners that wish for “leaks” in the real estate industry that will assist them in deciding whether they should sell or not, buy or not. It’s clear that the property market is well on its way to recovery but still far from full recovery.

Headlines: South Africa's major banks have experienced an improvement in mortgage bond arrears despite stubbornly high household debt levels and signs that last year's recovery in the residential property market is petering out. Rael Levitt, the chief executive of Auction Alliance, said last week that the recent negative growth in real house prices meant more than 200 000 homeowners were probably stuck in a negative equity situation, where the value of their outstanding home loans exceeded the value of their homes.

Levitt claimed that a further 300 000 homeowners were either behind on their payments or already in the foreclosure process, adding that the housing market had deteriorated this year after improving following the slump in 2009, and was now showing signs of entering "a double dip".

Market news: “Looking forward, it seems that Africa remains highly prioritised when it comes to global investment strategies. The Ernst & Young survey reported that 42% of the businesses surveyed considering investing further in the region and an additional 19% of executives confirmed they will maintain their operations on the continent. Companies that have already invested and included Africa into their overall investment strategy are particularly positive,” says Adrian Goslett, CEO of RE/MAX of Southern Africa. Investors returning to SA property market

Enjoy!
The editor

In This Issue
Featured Property

Gauteng, Vereeniging, Three Rivers East
House
- Bed: 5 | Bath: 4
Majestic landmark on the Sugarbush River.

Local News

Bond arrears dip as property prices fall

South Africa's major banks have experienced an improvement in mortgage bond arrears despite stubbornly high household debt levels and signs that last year's recovery in the residential property market is petering out...


Property ain't all that

Property is not a good (or bad) investment per se and, like every other investment on Earth, it most definitely can go wrong...


Investors returning to SA property market

The South African property market is well on its way to recovery, with more than just the low interest rate creating opportunities for investors...


Where will the smart money in property be going in the next twelve months?

I have absolutely no doubt that it will be channelled into commercial and industrial property.

My reasoning here is simple. The barriers to entry in these fields are now high because the banks almost never give more than 60% bonds on commercial units- and insist that it be amortised over ten to twelve years...


Homeowners scaling down

More homeowners are selling their properties to downscale due to financial pressure, according to the latest FNB Estate Agent Home Buying Survey released on Tuesday...


When is the right time to buy a home?

Ask any estate agent at any time if now is the right time to buy a home and the answer will be affirmative, with all the obvious reasons being offered, such as: it is a buyers' market, rather own your home than rent, the market is turning, it's a good investment, and so on...


Pitfalls of buying to let

I am sure many of you have heard stories of people who have made fortunes through buying to rent over the years...


Restricting foreign land ownership in SA gives a negative message

Tony Clarke, the Managing Director of Rawson Properties, has responded ‘despairingly’ to statements made by Gugile Nkwinti, Minister of Rural Land, Development and Land Reform in which he said that a policy of ‘precarious tenure’ for foreigners owning or leasing land in South Africa will again be investigated...


Builders question halt on tenders

The construction industry has decried the Public Works Department's six-month moratorium on all new departmental tenders and adjudications, describing the move as another major blow for the beleaguered building sector...


New high profile home for Building Centre

After 53 years, the Cape Town Building Centre, which exhibits the largest and most comprehensive display of contemporary building products and ideas, is moving to a new home with easy access at ground level in a standalone building...


Additions that add value

Many homeowners are opting to renovate their home to accommodate their changing requirements or to fix it up before they sell with the hope that it will add to the market price of the property...


Adding value through eco-friendly development

Gone are the days when new developments used to attract buyers with manicured lawns and extensive hard landscaping - nowadays the demand is all for natural vegetation, indigenous trees and wildlife left undisturbed as much as possible...


What can be done about bad landlords

Much media coverage has been given, especially since the onset of the recession, to the difficulties landlords can and do experience with disorderly or defaulting tenants, says Tony Clarke, Managing Director of Rawson Properties...


Residents breaking the law by having too many occupants in ST units

A big problem now faced by many of South Africa’s sectional title schemes, especially those in densely populated areas, is that of tenants subletting space in their units to larger numbers of people than the unit was designed to take...


Fundamental tasks of trustees

In its ongoing campaign to “educate” the trustees of bodies corporate and homeowners’ associations, IHFM, the fast-growing property management company, has time and again to remind them that certain basic tasks are their responsibility and, if they neglect their duties here, they are actually in contravention of the Sectional Title Act and in breach of their constitutions...

Focus On

Vereeniging, Gauteng, South Africa

Vereeniging, with the meaning of joining (uniting), is located at the rail and road crossing point between the two old republics: Zuid-Afrikaansche Republic and the Republic of the Orange Free State...

>> Properties in Gauteng
>> Properties in Vereeniging


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;

  • Cape Town
  • Westville
In the area 1 - Cape Town

Cape residential property is about 25 percent to 30 percent more expensive than residential property in Gauteng; a fact, says Anton du Plessis, CEO of Vineyard Estates, that does not deter many Gauteng buyers from moving south, even though they may have to downscale quite appreciably to make such a move possible...


In the area 2 - Westville

The sedate and stately borough of Westville, near Durban in KZN, is getting a new lease of life as buyers with young families target the area because of its excellent schools and central location...


To the editor

Good morning

Your website is most helpful but can you advise me on:

  • with a Sectional title unit, how long do I have in order to register for Rates & Taxes?
  • is this relatively easy to do? Cost?
  • Do I pay a deposit on Water & Lights at jhb council? Or does Body corp do it for me?
  • how do I calculate deposit for Water & Lights?

Regards
Des

From the Editor: I would recommend joining the Paddocks Club, the online coaching and support community for sectional title and other types of community schemes. They will be able to give you professional advice on all these matters. - www.paddocksclub.co.za

Send your viewpoints to news@cyberprop.com


Local News Continue

Correct budgeting

One of the most important tasks that Propell, the sectional title levy funders and collectors, so often have to tackle when they are commissioned to help a scheme is to “educate” the trustees on the importance of correct budgeting...


REMAX first term results

RE/MAX of Southern Africa, which was ranked as the largest real estate brand in the country in a May Finweek feature, has recorded continued growth in sales in the first four months of 2011...


Training the key to good deals, says Aida chief

The real difference between top performing agents that continually achieve the best results for their clients and those who just muddle along is training, training and more training...


I've got the power

RE/MAX of Southern African recently hosted Power Brunches with property expert, author and trainer, Ed Hatch.

Ed Hatch has been a licensed realtor since 1977 and as the senior instructor for the Council of Residential Specialists and the president of Ed Hatch Seminars...

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CyberProp Property Count: 17/06/2011

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Properties for Sale: 143,850
Properties to Rent: 10,582