Weekly Property News
20 July 2012
FROM THE EDITOR

Dear Reader

Good news for home owners, the SA Reserve Bank has cut the repo rate by 50 basis points bringing the prime rate down to 8,5%. "While it is recognised that such a move on its own will not overcome the challenges facing the economy, it is felt that it can help alleviate some of the pressures faced by some sectors," Governor Gill Marcus said yesterday.

Chas Everitt International property group; Berry Everitt, MD of the Chas Everitt International property group, says today's 0,5 percentage point cut in interest rates - which will take the standard mortgage rate to its lowest level in almost 40 years - is a welcome surprise that will act as a positive catalyst in the residential property market.

Betterbond; Rudi Botha, CEO of BetterBond, SA's biggest mortgage originator*, says today's repo rate cut, which will take the prime and mortgage rates to 8,5%, should bring a new crop of home buyers into the property market. "The lower mortgage rate will undoubtedly affect affordability, enabling many who previously fell short of the ability to qualify for a bond to now achieve their goal of buying their own home. The monthly repayment on a bond of R500 000 will now drop to about R4340 from R4499, and the qualifying monthly income for such a bond to around R14 467 from R14 997.

Jan le Roux, CEO of Leapfrog Property Group, feels that the cut might not be in the best interest of the economy at large, but it does offer a small respite to the residential property market and will benefit both buyers and sellers in the long run.

Economists are now also considering whether the Reserve Bank's Monetary Policy Committee could drop interest rates further read more in Another rate cut on the cards?

Enjoy!
The editor

In This Issue

Gauteng, Midrand, Halfway Gardens
Residential - Bedrooms: 4 | Bathrooms: 4 | Garages: 4
This stunning property is approximately 1000sqm in size on a 1 hectre corner stand property...

News

Interest Rate Reaction- Chas Everitt International Property Group

Berry Everitt, MD of the Chas Everitt International property group, says today's 0,5 percentage point cut in interest rates - which will take the standard mortgage rate to its lowest level in almost 40 years - is a welcome surprise that will act as a positive catalyst in the residential property market...


Interest rate reaction- Betterbond

Rudi Botha, CEO of BetterBond, SA's biggest mortgage originator*, says today's repo rate cut, which will take the prime and mortgage rates to 8,5%, should bring a new crop of home buyers into the property market...


Real estate supports lowered repo rate as important step

On Thursday the Reserve Bank decided to lower the repo rate. The rate has been lowered by half a percentage point leaving it at 5%. John Loos, Household Sector and Property Strategist at FNB Home Loans, admitted to being surprised as the possibility of such a cut was only expected in September...


Another rate cut on the cards?

Economists are now considering whether the Reserve Bank's Monetary Policy Committee could drop interest rates further, after Thursday’s 50 basis points cut...


House prices start rising

House prices continued to increase in the second quarter of 2012, according to the FNB second quarter house price review released on Tuesday...


Property prices fall 'most in 30 years'

House prices fell year on year in the first six months of this year to post the largest contraction recorded since the 1980s, property economist Erwin Rode said yesterday...


Bank valuations disorting property market

The conservative approach of the lending institutions to granting home loans is now putting selling prices under pressure - and distorting the property market in the process...


Slow growth for South African buy-to-let sector

Buy-to-let investors in South Africa are registering lower demand for real estate in the country than previously...


Why buy the home you live in?

Question:
I am a 38-year-old woman. My only assets are my retirement annuity (into which I've been investing 15 percent each month since I started it many, many moons ago) and an emergency fund in a money market account...


Home deposit requirements rising again

The banks are granting more 100% bonds – but they have also raised the deposit requirements once more for those homebuyers that do not qualify for 100% loans...


Capital growth versus income

Michael Bauer, general manager of IHFM, the property management company, an investor in buy to let property himself, said last week that in these times where the capital growth on investments in property is not as high as it was a few years ago, one has to look carefully at the income you will be receiving rather than the capital growth of the property itself...


Know your body corporate rules

Sectional title units have become increasingly popular as more and more people prefer the security that living in a gated, controlled development offers, but there is a vast majority buying into sectional title schemes who are blissfully unaware of the fact that they are bound by their body corporate rules, said Lanice Steward, MD of Anne Porter Knight Frank...


Principles of good rent collection

Often asked what rental collection principles he follows in his rental agency, David Beattie, principal of Chorus Letting, who specialise in residential letting in Cape Town, said that he finds most tenants do want to keep a decent roof over their heads and they know that the way to get this is to pay their rent on time and in full...


Tenants and landlords responsibilities in maintaining a property

Good property management is possibly the biggest factor to keep in mind when building wealth in property, says David Beattie, principal of Chorus Letting, who specialise in residential letting...


Leases and the law

There are various laws which govern the way one does business, particularly when it comes to renting out premises...

Focus On

Midrand, Gauteng, South Africa

Built around the M1 halfway between Johannesburg and Pretoria, Midrand is an accurate reflection of current economic expansion of Gauteng...

>> Properties in Midrand
>> Properties in Gauteng


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;

  • Midvaal
  • Western Cape
  • Mossel Bay
In the area 1 - Midvaal

Located halfway between Johannesburg and Vereeniging, the Midvaal area is rapidly turning into Gauteng’s next boom area - and a hot choice for homebuyers and property investors...


In the area 2 - Western Cape

When it comes to natural beauty, there is no place in the world that can compare with the Western Cape. It has an assortment of various cultural backgrounds, giving the province multi-ethnic flavours.


In the area 3 - Mossel Bay

Mossel Bay property picks up

Residential sales in the Mossel Bay property market have picked up markedly in the past three quarters thanks largely to cash buyers relocating to the town.


To the editor

Share your comments with us by sending it to news@cyberprop.com


IEA Western Cape - Celebrating their 75th Anniversary

The Institute of Estate Agents Western Cape in Pinelands is celebrating their 75th Anniversary this year and will host their Annual General Meeting combined with a Dinner Dance on Thursday 23 August 2012 at the Kelvin Grove Club in Newlands at 19:00.

Corporate sponsorships are available at R5000 per table of 10 which includes two free tickets to attend the dance. Further tickets are available at a cost of R380 per person.

“Don’t miss this excellent opportunity for you and your company to be part of this prestigious occasion.”

Please contact Wardah on 021 531 3180 or email wardah@cape.ieasa.org.za to secure your table.


Local news continue

The 'Rands and Sense of Green Buildings' is launched

The financial viability of commercial green buildings is foremost on the minds of South African property developers, and a new report from the Green Building Council of South Africa (GBCSA) delves into this issue, driving home the compelling business case for green building...


Mozambique property made simple by Chas Everitt expert

If there’s one thing SA investors need to know about buying property in Mozambique, it’s the fact that there is no such thing as a “99-year lease” in that country...


GBCSA News

The GBCSA is committed to bringing our valued members inspiring news, events and exclusive opportunities, to keep you updated and to give you the competitive edge. These events and opportunities are not organised by the GBCSA so please contact the relevant people for more information...


CyberProp Property Count: 20/07/2012

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