Weekly Newsletter
Friday, 18 January 2008
Property Search | Estate Agents | List your property

Edition 2 of 2008, Friday, 18 January 2008

Dear Reader

This week the rand touched its weakest level since late December amid a global flight from risky assets and many property owners are concerned about where it is all going to end.

According to John Loos, FNB Home Loans Property Strategist there is no need to worry. "Firstly, it may be comforting to know that residential property crashes are not common. In fact, in over 40 years since the mid-1960s there has only been one, and that was in the mid-1980s. Already, therefore, this would suggest that the chances are slim. How does the current environment compare? This time around (compared to the 1980s), I expect the economy to hold up far better in the long term, thus providing little chance for a slide in the affordability ratios al la mid-1980s. Rather, the affordability issue will continue to be addressed by a move towards smaller units on smaller stands and, unfortunately, the end of the spacious lifestyle that many middle class South Africans have come to accept as the norm."

The world's housing markets in 2007 and 2008, an article not to be missed this week. "South Africa is rapidly cooling, after more than five years of double digit house price increases. The housing market is likely to be dampened by political uncertainty associated with the 2009 election, given the pro-redistribution rhetoric of front-runner Jacob Zuma"

In the wake of the panic property buying of the mid-2000s, many would find it hard to believe that house prices can actually drop in value. But they can, and have, dipped below what they are worth, Can houses drop in value?

This is your last chance to register for the launch of the Chas Everitt International Overseas Properties opportunity. A launch function will be held on Wednesday 20th February 2008 at the Mount Nelson Hotel in Cape Town. Read more in CEI Overseas Properties Launch Press Release

Familiar with the following;
I could not agree more... but how deceiving are the agents? Take this house for instance (Ref: 370864) It looks so pretty on the pictures, in fact, it looks perfect... what they failed to took in the photo's are the neighbours whose driveway run through your property and around your house! But even better, they failed to show that there is no fence between you and your neighbour so you share their kids, you share their black dog and you share their friends... I mean, love though neighbour but this is a bit much!!! Visit our blog CyberProp Blog for more postings.

The editor


>> Real Estate News - Analysis: The world's housing markets in 2007 and 2008

INTERNATIONAL. In 2007, the US housing market crashed, and Europe’s housing markets slowed. House prices in Asia Pacific and the Middle East gained momentum. But a report says the biggest concern for the Middle East is still oversupply. Dubai is swamped with new properties to be delivered in 2008 and 2009, according to Global Property Guide.

Bulgaria saw the world’s strongest house price growth at 30.6% (15.4% in real terms) up to the end of third quarter 2007, from a year earlier...

>> Rate hike on the way - Absa

The SA Reserve Bank (Sarb) is expected to hike interest rates by a further 50 basis points at the end of January, Absa's economic research unit said on Wednesday.

This was in spite of retail trade sales data released earlier by Statistics South Africa showing that consumer spending continued to buckle.

The data showed that retail sales growth slowed to 0.2 percent year-on-year in November, from an upwardly revised 1.9 percent in October.

However, in spite of this sharp drop in retail sales, Absa's economic research unit expected rates to rise.

"Although the end-January monetary policy decision is a difficult one and will still be informed by other data releases, we expect the Sarb to hike interest rates by a further 50 basis points at the end of January," it said.

The Sarb was an inflation targeting central bank — and so the risks to inflation of high international oil prices, food inflation, second round inflationary pressures and the prospects of electricity and other tariff increases were likely to outweigh slower economic growth, Absa said.

>> Tips for investing in vacant land

There is more to investing in property than just buying rental units, with the attendant worry about finding suitable tenants, collecting rents and maintaining your asset.

So says Berry Everitt, MD of the Chas Everitt International property group, who notes that one other option, for example, is to buy vacant land and wait for value growth...

>> Capital gains tax - Personal vs Trust

When deciding on the best way to purchase property you must first look at your objective regarding the property. You need to ask yourself the following questions:

1. What do I intend to do with the property? Am I buying it for a short-term period or will I hold on to the property for an indefinite period of time?

2. Am I going to renovate the property and sell it, to make a profit? If you do this on a regular basis, then you will be classified as a property developer and you will pay income tax of 40% on the profits and not the Capital Gains Tax (CGT) at 10% (tax rates will be dependent on your income tax rate with the maximum payable)...

>> >> Too young for property?

Too young for property?

Young people are putting off buying their first home for social reasons as well as financial ones according to UK research, a phenomenon that is evident in South Africa too.

Saul Geffen, Chief Executive of MortgageSA, says that while high prices are obviously a deterrent to young people getting onto the property ladder, huge lifestyle changes and priority shifts are a major factor also contributing to affordability problems...

>> Can houses drop in value?

Yes. Here’s the South African picture – stats.

In the wake of the panic property buying of the mid-2000s, many would find it hard to believe that house prices can actually drop in value. But they can, and have, dipped below what they are worth.

That's a financially hazardous situation for people who have borrowed to buy an asset because it means, if you don't have sufficient equity - or value - in your home, you can be paying more for your property than it is worth...

>> Focus on Kroonstad, Free State, South Africa

The neat pleasant town of Kroonstad, the third-largest town in the Free State, lies two hours drive from Gauteng, making its position on the map as important as in the agricultural economy it supports.

>> View Properties in the Free State
>> View Properties in Kroonstad

>> Property of the week

Free State, Kroonstad, Kroonheuwel

Bedrooms: 4
Bathrooms: 2

Well situated 4 Bedroomed Guesthouse with fully equipped 2 bedroomed flat that gives you a very good income...

Search for property in your area

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>> News from - Nationlink Property Group

Positive job prospects good for property

A positive employment outlook is always good news for the property market, and the SA job prospects for 2008 are excellent.

So says Dr Piet Botha, chairman of the Nationlink estate agency group, who notes that while increased employment does not necessarily spell a rise in property prices, it generally means an increase in the number of sales...

>> CEI Overseas Properties Launch Press Release

Launch of Overseas Property Sales Company - A first in South Africa

Marketing South African real estate internationally remains a committed focus of Chas Everitt but now the leading property group is bringing the world of international property investment to South Africans.

The launch of this venture is well timed due to the convergence of a number of factors, chief amongst these being...

>> Software at its best!

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 propert

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