United Kingdom buyers continued to swap their depressing drizzle and rocky beaches for south-east Queensland’s sun, sand and surf at a growing rate.

Last financial year, they snapped up $112 million worth of residential property alone in the Sunshine State...

One of SA's leading estate groups will open a communication channel directly with the SA Reserve Bank president and so to put the plight of homeowner directly in front of Tito Mboweni.

RE/MAX of Southern Africa is encouraging homeowners to send to them letters of concern about inflationary pressures on monthly mortgage repayments and the spin-off effect on South African households.

The letters will be presented to Mboweni by Jeanne van Jaarsveldt, RE/MAX of Southern Africa's director of finance and marketing.

"With the next monetory policy review scheduled for this week, RE/MAX of Southern Africa is calling to the South African reserve bank to retain interest rates," Van Jaarsveldt says.

"SA homeowners should raise their voices, and tell Mboweni exactly how they are being affected.

"Home is where the heart is, but if The SA Reserve Bank does not leave the current monetory policy unchanged and furthermore considers a reduction in interest rates by 1% in the third quarter, that heart may stop beating.

"Homeowners are under severe distress with soaring food costs, power and fuel. There is an alarming increase of personal insolvencies by 58 %. This is the biggest leap since 1999."

Homeowners affected by The SA Reserve Bank's interest rate hikes can tell Mboweni how they feel by sending their e-mails to talk_to_tito@remax.co.za.

WHILE there is no doubt that the property market has cooled, there is still interest at the top end of the market, with a certain breed of buyer willing to splash out on prime properties from R10m-R20m. But since the price tag of our feature home, Bird’s View, in the well-established suburb of Sandhurst, Johannesburg, is R60m, only über-rich buyers need apply. Although R60m may seem like a hefty sum, the 5500m² of property with dynamic views and the home itself, measuring about 1900m² ² under roof, could make the asking price a little more palatable. The land is a combination of two stands measuring 4267m² and 1250m² , which have two separate title deeds...

Capitalisation rates — the property equivalent of the forward earnings yield of shares — have remained put despite a deteriorating inflation and interest rate outlook. This is according to the latest Rode’s Report on the South African Property Market which reports on surveys conducted during the fourth quarter of 2007.

However, notes property economist Erwin Rode: “With local growth prospects that have become more shaky as a result of a more precarious international growth outlook and supply constraints, most notably electricity, capitalisation rates could come under some pressure as investors reassess the risks...

South Africans are being advised to keep their belts well tightened until the second half of 2009 - that's when economists expect inflation, interest rates and household debt to decrease and a more positive economic climate to take over.

In other words, 2010 should be a year that can be celebrated for reasons other than hosting the World Cup in South Africa...

Homebuyers and sellers should re-think their strategies in the current property market, placing less emphasis on price as such and more on matching their respective prices.

Gerhard Kotzé, CEO of the ERA South Africa property group says this may appear self evident, but that all too often buyers and sellers set their prices independently of one another due to their own pre-conceived ideas of what their property is worth or under the influence of inexperienced agents, and thus set deals up for failure...

The historic and scenic towns of Paarl and Wellington in the Boland region of the Western Cape are proving highly sought after among those relocating from major centres such as Johannesburg, Cape Town and Durban in search of a more appealing country lifestyle, says Annien Borg, MD of Pam Golding Properties Boland region.

"There's no doubt that this is an increasingly evident trend, further evidenced by the fact that approximately 90 percent of buyers in the Paarl and Wellington areas are seeking a lifestyle farm in order to escape from a city environment. Predominantly a wine farming district with other agricultural activities such as fruit, wheat and buchu farming, lifestyle appeal remains a key factor, coupled with the fact that these areas offer sound value for money," she says...

CAPE PROPERTY SELLING

The presentation of your home is all-important

Cape Peninsula residential property prices are holding up well and, indeed, continuing to grow. There are now some 30% more homes on the market than last year, said Lanice Steward, MD of Anne Porter Knight Frank.

In this situation, she said, it is of the utmost importance that sellers present their properties to buyers in an appealing way.

Go to any local Dead’s Office and you can find property records detailing real estate ownership in your community -- sometimes records that date back hundreds of years.

These records are important because they provide today's owners with proof that they have good, marketable and insurable title to the property they are selling. Equally important, such records enable buyers to provide proof of ownership when they sell.

The closing process, which in different parts of the country is also known as settlement, is increasingly computerised and automated. In many cases, buyers and sellers don't need to attend a specific event; signed paperwork can be sent to the closing agent via overnight delivery...

Do you consider your mortgage a bad debt, or a good debt?

When the bank advances you money that is not yours to buy a property, one would consider the debt to be good debt. The property is after all an asset escalating in value, and in essence has not cost you any money.

How you then manage that debt determines what it will ultimately cost you.
A mismanaged bond will soon feel like a bad debt when you struggle to make up payments you missed, or when you keep borrowing against the loan for ‘bad debt’ items.

To reduce the cost of your debt, and save money, consider this:-

• paying your first payment early, would alone reduce your repayment period by some 16 months and save you about R104 000 on a R500 000 bond;
  
• paying an additional R100 each month on the same loan would reduce your repayment period by 18 months and save you some R95 000;
  
• paying your 1st payment early and R100 additional per month would reduce your repayment period by 31 months (2.5 years) and save you in the region of R180 000; and
  
• for the bold — paying double your instalment each month would reduce the period to only 54 months (less than 5 years) and save you a hefty R857 000 in interest.

(Picture from unknown publication of the Weekend Argus - Money Section)

From: ProProp Property Consultants

Editor: The question; do you consider your mortgage a bad debt, or a good debt? Colin and team thank you for your letter. From my side I think this is a question that can be debatable to the end of day. I would like to know what the response would be from our readers.

Send us your view point to news@cyberprop.com

Paarl, a mere 60 kilometers from Cape Town and less than an hour by car from the golden beaches of the Indian and Atlantic Oceans, is renowned not only for its illustrious past and unrivaled scenic beauty, but also presents holiday makers an exciting tourist destination.

Paarl is one of the oldest towns in South Africa and particularly known for its mountain or "Paarl Rock".

>> View Properties in the Western Cape
>> View Properties in Paarl

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How to Market Your House

‘Using strong marketing techniques to sell your home is just smart business’, says Cheryl Marais, Direct Marketing Manager for Betterbond. With our home loan interest rate now standing at 15%, it is even more difficult to get the price you want for your home. It is definitely a ‘buyer’s market’ and if you’re serious about selling your house, try and be realistic and consider the price that your estate agent recommends. The first step in getting your price is to make sure your house is photographed properly. Many home buyers begin a home search online, so good photos are essential. Listings without a photo or with only an exterior shot are often passed over and ignored. Buyers are visual. Here are a few tips when photographing the front of your house to make sure it looks great:

• Remove vehicles from the driveway or the front of your home;
  
• Shoot close-up and angled photos;
  
• Avoid shade on the house; and
  
• Clear away any unsightly vegetation blocking the front door or path to your door.

What other photographs will the buyer want to see of your home?

• A photograph of a clean, de-cluttered kitchen. Don’t have dirty dishes on the counter tops;
  
• A clean bathroom, with matching bath and hand towels;
  
• A tidy lounge and dining room;
  
• One or two bedrooms, you don’t have to include them all. Make sure the beds are made and the room is tidy; and
  
• A picture of the garden or pool area.

The buyer has to imagine living in your home. Make the first impression count.

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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

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