All four major banks have announced a 50 basis point increase in their prime lending rate and the mortgage rate to 13.5%. Absa and Standard Bank will raise their rates from tomorrow, while Nedbank and First National will raise their rates from Monday.

Earlier, the South African Reserve Bank announced that it would raise its key repo rate to 10% to tame rising inflation and high consumer spending...

The interest rate rise announced this week, which pushes the home loan "base" rate to 13,5 percent, may be good for the rand and the overall economy, but it will not be good for the property market.

"This will be the straw that breaks the camel's back," says Lew Geffen, chairman of Sotheby's International Realty in SA. "It may not result in an immediate drop in prices but will result in a quick decline in sales volumes, and that will ultimately lead to much slower price growth."

In the US, as the housing boom of 2001 to 2005 drove prices beyond the reach of many households, mortgage originators hit on a brilliant device for pushing their products.

They offered low-income households mortgage loans they wouldn't normally have been able to afford - at what they called "teaser rates".

For a specified period, borrowers were allowed to make monthly repayments, which covered only the interest cost of the loan. When the period expired, the normal repayment schedule kicked in...

THE effects of the implementation of the National Credit Act, a relatively expensive residential market and higher interest rates are now being keenly felt, with First National Bank (FNB) reporting that activity in the residential property market is at its lowest level since the inception of the FNB Residential Property Barometer in 2003.

According to the latest FNB Residential Property Barometer, first-time buyers are also feeling the pinch of a tighter residential environment with the proportion of first-time buyers decreasing to 16% of all buyers from 32% in early 2005...

Are you looking to buy a property? From 1 September purchasers of fixed property worth more than R2-million will be required to deduct a withholding tax from the price paid to the seller, if the seller is a non-South African resident.

This means the onus lies with you, the purchaser, and your conveyancer or estate agent to determine whether the seller is a non-resident. If you don't, it could make you liable for the tax...

The value of South African recorded building plans passed at constant 2000 prices in June decreased for the first time this year by 1.4% year-on-year (y/y) from a revised 5.9% y/y (6.2%) in May, Statistics South Africa (Stats SA) data showed...

Springbok lies in a deep low plain between rugged mountains, about 600 km north of Cape Town. It is the commercial and cultural center of Namaqualand, located directly on the N7 which connects the Cape and Namibia.

The small Namaqualand towns of Pofadder, Garies, Kleinzee, Port Nolloth and Alexander Bay all within less than one and a half hours drive from Springbok. It is also close to the famous Namaqualand wildflower reserves and to the remote Richtersveld National Park...

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Engel & Völkers wins at home and abroad

It's award season at Engel & Völkers South Africa! Ferdi de Lange, the company's Johannesburg license partner, recently attended the Engel & Völkers International awards ceremony, hosted by Christian Völkers at his Mallorca estate. De Lange was the winner of one of only five awards handed out each year, walking off with the award for the Best Shop Branding for the Village Walk, Sandton office. "I'm particularly proud of this award as Engel & Völkers' signature shops are one of the key factors that set us apart from other brands," says de Lange...

There are plenty of pitfalls before you seal the deal

There are always appropriate steps to investing in real estate and hopefully, you've garnered many of them right on these pages. However, there are also inappropriate steps sellers can walk down when it comes time to put their house on the market...

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 property

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 Northern Province Western Cape

To Rent Property:
Eastern Cape Gauteng Kwazulu Natal North West Western Cape

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