Edition 41 of 2007, Friday, 19 October 2007
It is biltong, beer, braai and rugby time this weekend! One thing
is for sure, a nation will stand together Saturday night to shout
for the Boks! Go bokke!
The South African real output index of the finance, that will be
business services, insurance and real estate increased from
160.2 in 2004 to 169 according to the latest Productivity SA Statistics.
According to Efficient chief economist Dawie Roodt this growth was
expected but it will slowdown due to the hike in the interest rate.
While on the subject of interest rates, Reserve Bank governor,
Reserve Bank governor Tito Mboweni this week defended the Bank's
decision to increase the interest rate last week. Furthermore he
issued a warning that rate may hiked again. Oil prices at a historic
high can only weigh in on inflation and interest rate expectations.
Arguments that the bank will not raise rates in December due to
it being the retail month of the year does not hold water. Who can
still remember the rate increase in December 2006?
Seven interest rate hikes since June last year have ratcheted up
the pressure on homeowners and new entrants to the commercial
property sector, with indications that many are feeling the
pinch and are being forced to sell. Property market feels
squeeze of rates spiral
With the new National Credit Act and rising interest rates having
brought more balance to the Western Cape property market,
it could be time for buyers to start looking for bargains.
This is the view of several Chas Everitt International agency principals,
who said this week there had been a return to realistic pricing
and that good buying opportunities were arising, particularly in
cases where higher interest rates had put property owners
under pressure Its time for Cape buyers to get off the
a critical shortage of retirement accommodation in South Africa
even in the country's exclusive retirement estates Critical
In answer to our question regarding Eskom and the electricity crisis
we experienced last week a letter from one of our readers stood
As Eskom digs itself deeper into the hole of incompetence and
mismanagement, businesses, homes, and building developments will
have generators as a matter of course and Eskom power will be allow
the generators to be stopped half the time. Wise homeowners and
building managers would be well advised to put voltage regulators
on their incoming lines as the spikes (high voltage surges) coming
through are demolishing equipment left right and centre.
The next step will be to have water tanks and water purifiers
as the water supply starts to deteriorate. On the few days a week
we fill up our tanks with impure water and then clean it for use.
Unduly pessimistic? I think not. The situation will eventually
improve and we will bring the whole country into the first world
but first we have to pay a visit to the third world, inefficient
and corrupt officials, bad roads, flickering and sporadic power,
laughable public health (have you eaten your beetroot today?) and
whatever you do don't drink the water.
Gideon, your bottle of sparkling wine is on its way.
In our CyberProp
Blog we look at the high demand for student accommodation