Weekly Property News
Friday, 21 May, 2010
FROM THE EDITOR

Dear Reader

In 21 days our beloved county South Africa will be hosting the first African World Cup and by doing so not only will we create a lasting legacy but will we also be bringing in tourists in their numbers boosting the economy. The expected capital inflows and direct investments can keep growth rates above 4%. It should also create a positive impact on the property market and not only in the short term but also on the long term. However it wasn’t a good week for South Africa;

  • The JSE plunged 3,23% on Thursday. Gold and other commodities showed losses of up to 10%
  • The Rand reached its weakest level in more than six months against the dollar breaking through the 8.00 barrier
  • Not only are strikes continuing but are they also spreading. The National Union of Mineworkers declare work stoppages at Eskom from next Wednesday. This could threaten electricity supply during the Soccer World Cup. Already it was on Bloomberg that should England loose this year they can blame the lack of electricity in the stadiums.

What was positive for the property industry is that the numbers of civil summonses issued decreased by 5,4% year-on-year in March. This according to data from Statistics South Africa.

Headlines: “We now learn that South Africa had the best performing housing market in the world over the longer term according to figures from the authoritative ‘Economist’ magazine. The publication’s Global House Price Index shows that SA house prices rose by a cumulative 418% over the past 12 years (1997-2009). That far outstrips any of the other 20 housing markets tracked by the index. The next best performers were Australia, Britain and Spain with growth of 181 %, 175% and 167% respectively. And now for the good news about SA property

Market news: There are still challenges, but the US economy and property market are definitely in a “better place” than they were a year ago, and that bodes well for real estate elsewhere in the world.That’s the positive message to emerge from a recent meeting in San Diego of Sotheby’s International Realty directors and managers from around the world, who took note of a US National Association of Realtors report that sales of single family homes had shown a year-on-year increase of 16,3% in March to 5,3m units, while the median home price had risen 0,4%. Global real estate prospects better, says Sotheby's International Realty

Enjoy!
The editor

In This Issue
Featured Property
Gauteng, Johannesburg, Linksfield Ridge

Beautiful View site Home! Beautiful View site Home soaring over magnificent Linksfield Ridge. Ultra modern with Exquisite Features, Simply stunning Receptions encased in floating Glass, Gourmet Kitchen with a view site Breakfast area...

 
CyberProp Property Count: 21/05/2010

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Properties for Sale: 135,740
Properties to Rent: 10,112

International News

Africa’s middle class: striving to develop a continent

BOSTON — An investment analyst in Ghana who avoided life as a subsistence farmer by winning a college scholarship.

A real estate agent in South Africa who sells homes to "black diamonds," as the country's upwardly mobile blacks are known...


Local News

10 steps to a happier housing market

What steps should the new government take to improve the UK's housing market? Liam Bailey, Knight Frank's head of residential research, suggests 10 simple changes to get Britain's home buyers, sellers, landlords and tenants smiling again...


Global real estate prospects better, says Sotheby's International Realty

There are still challenges, but the US economy and property market are definitely in a “better place” than they were a year ago, and that bodes well for real estate elsewhere in the world...


And now for the good news about SA property

South African property owners have had a veritable cornucopia of good news in recent weeks, starting with the unexpected announcement by the South African Reserve Bank that it would cut interest rates slightly, helping to ease the bond repayment burden of hard pressed households...


SA property returns decline for second consecutive year (View Pdf Report)

South African property returns have declined for the second consecutive year, although they still managed to produce a marginally positive capital growth in a market with weakened fundamentals...


Dormehl Property Group’s view point on the house price index

Owen Dormehl, CEO of Dormehl Property Group says “April’s double digit house price increase is positive news indeed. Hopefully it will endower our major banks with the confidence they require to now further relax their lending criteria which in turn will have the much needed knock-on effect of assisting with the momentum required to sustain this early evidence of real estate price growth...


Fixed interest rates

If, for whatever reason, it is important to bondholders to be able to budget ahead with complete accuracy, it could be a good idea to fix the interest rate on their bonds for a stipulated period – but for most of us this is not a wise step to take as it will almost certainly result in our paying anything up to 4% more than the market rate over the one to ten year periods for which fixed rates are usually granted...


Access bond has limits

In offering their clients more control over their personal finances, about 10 years ago the banks introduced a "flexible home loan" product, a far cry from the traditional home loan that merely needed to be repaid at a fixed installment over a fixed period. Even though the product has been on the market for some time, a lot of focus has been placed on its advantages, while its limitations have received very little attention...


Depressed state of residential building activity continues

Residential building activity in the South African housing market continued to experience a substantial amount of strain on a year-on-year basis up to March 2010. On a month-on-month basis conditions in the planning phase deteriorated further, while some improvement was noticed on the construction side...


Sell now - you will not lose out

Many property owners in the Western Cape are finding it difficult to sell their homes because they simply will not adjust their price expectations, says Mike Greeff, CEO of Greeff Properties...


Assessing exactly how much a buyer can afford

One of the challenges that every estate agent has to face, said Anton du Plessis, CEO of Vineyard Estates, is to decide whether the potential buyer can in fact pay more than he said he is able to or, alternatively, whether he is, in fact overstating what he can pay...


Buying distressed golf courses can make you money

Gary Player Group has launched a US$1bn (R7,6bn) fund to buy up distressed golf estates around the world, and has secured half the amount, according to property website Global Edge...


Housing 'has to improve'

An investment in human settlements is an investment in the future, President Jacob Zuma said on Tuesday...


Reckless lending court decision

The recent court case in which ABSA Bank was convicted of “reckless lending” in terms of the National Credit Act will reinforce the tendency of all SA banks towards being ultra-cautious in the granting of bonds and this is “regrettable”, says Tony Clarke, MD of Rawson Properties, because they had just begun to show signs of easing up on their loan criteria...


Location.. location.. location

Owen Dormehl, CEO of Dormehl Property Group said “Apart from price, the most important factor to the vast majority of today’s purchasers definitely is security, security, security...


Fireplaces

With Cape Town now officially into its winter season and regular rainy days becoming an accepted part of the week, the Cape Town Building Centre is, as always at this time of year, fielding numerous enquiries about fireplaces...

Focus On

Focus on 2010 FIFA World Cup™ fever in Johannesburg, Gauteng, South Africa

One of the most artistic and awe-inspiring football venues on the African continent, the newly-reconstructed Soccer City Stadium will host the first and final matches of the 2010 FIFA World Cup South Africa™...

>> Property in Johannesburg
>> Property 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;

  • Durban’s Berea/Morningside
  • Johannesburg
In the area 1 - Durban’s Berea/Morningside

Colonial Home on the Market in DurbanDurban’s Berea/Morningside suburb, which is Durban’s most central and established, probably houses the best evidence of the city’s distinctly colonial past – an eclectic mix of grand old homes with an array of architectural styles that include Victorian, Edwardian, Art Deco and, these days, even contemporary....


In the Area 2 - Johannesburg

Joburg rate clearance nightmare

Property sellers in Gauteng are becoming increasingly disgruntled with the Johannesburg City Council which has fallen behind with the processing of thousands of rate clearance certificates - essential for the conclusion of property transfers...


To the editor

The following was posted on our blog:

To the editor:

I have read that a Sectional Title AGM Can be helt up to 15 months after the last one, is this true?

S Matthee

To the editor:

This is not true. The AGM must be held 4 months after the financial year end. If there is a new body corporate established, they have to have a AGM within 60 days.

Hope this helps.
Mike
www.sectionaltitlesa.co.za

To the editor:

IF YOU CANNOT ATTEND YOUR SECTIONAL TITLE AGM, APPOINT A PROXY

Hi there Sonja,

The answer to your questions are:

1) He/she cannot vote in his personal capacity for his/her own unit, but he/she can attend a general meeting and counts to the quorum. But he/she can vote as a proxy for other owners. Remember, proxy do not have to be owners, so it does not matter if there are in good standing.

2) If all outstanding levies are settled and the Chairman or the trustee have sufficient proof, i.e. a letter from the attorney saying that all funds have been received, it is deemed settled. Simply because the money is not yet transferred into the body corporate's account has no relevance.

Hope this helps.
Mike
www.sectionaltitlesa.co.za

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News from the Building Centre

SA's architects and specifiers never quite catch up with the products that latest technology makes available, says Building Centre GM

Talking to a group of visiting upcountry building developers/contractors who are planning an on-going residential development with a large number of units, Jamie Heathcote-Marks, General Manager of the Cape Town Building Centre, said that it was ‘encouraging’ to see developers and their architects actually checking out what is available on the market by visiting a venue such as the Building Centre, which has some 200 exhibits...


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Green going mainstream

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