Weekly Property Newsletter
Friday, 21 August, 2009

Although home loan payments are now more than 25% lower than what they were in December last year there was not much feedback from the property industry on last week’s decision of the Reserve Bank to cut the repo rate. I find this difficult to understand if you take in consideration that Mboweni cited falling house prices among one of the factors that was taken in account. One would expect the property industry to be jubilant. Or are they just careful?

Herschel Jawitz chief executive of Jawitz Properties says that any cut will take pressure off existing homeowners and that property is now becoming more affordable.

MD of Rawson Properties Tony Clarke was one of the few that was “more or less” expecting a cut in the repo rate. “The weak domestic growth,” said Clarke, “in my view calls for a further drop as soon as possible.”

A survey of real estate executives in 27 countries showed South Africa, the United States and New Zealand faring worst as the market downturn worsens. Distressed sales of global comm. properties rise-RICS

Last week we asked you if you are thinking of upgrading your property or even looking at building that dream home and gave advice from two of the property industry gurus. Lew Geffen, chairman of Sotheby’s International Realty answers this week in Upgrade in time for the upturn

The editor

In This Issue
Featured Property

Limpopo, Haenertsburg

Property Type: Hotel | Bedrooms: 18 | Bathrooms: 20

Real Estate News International

Distressed sales of global comm. properties rise-RICS
LONDON, Aug 17 (Reuters) - More countries are seeing a rise in distressed sales of commercial properties in the second quarter, with South Africa, the United States and New Zealand faring worst as the market downturn worsens, a report showed...

Local News

SA economy: recovery in sight
South Africa's gross domestic product (GDP) growth contracted by three percent in the second quarter of 2009, indicating that the economy is still in recession, but with signs that a recovery is in sight...

Real estate agencies welcome interest rate cut
Real estate agencies have welcomed the South African Reserve Bank’s latest decision to cut interest rates by 50 basis points...

Latest 0.5% drop in interest repo rate will help - but Rawson MD expects another soon
Tony Clarke, MD of Rawson Properties, was one the few chief executives in the residential real estate sector who has “more or less” expected the latest drop in the Repo rate – despite what he described as the SAR Bank’s “innate conservatism”...

The housing market at present paints a false picture
The strangest thing about this market, says André Hamman director of Huizemark, is the fact that it is perceived to be a buyers’ market characterized by a surplus of sellers, few buyers and property prices under heavy downward pressure...

Lower inflation positives for property
While much is made of the effect that lower interest rates and home loan repayments will have on the property market, more needs to be said about the benefits of keeping the inflation rate on a downwards course...

Why property won't mend
There are many optimists out there who predict that house prices will start to recover by the end of 2009. Let’s think this one through…

Investors return to the property market
Investors are beginning to re-appear on the property scene, suggesting that the “smart money” is seeing real opportunities at this stage of the market cycle...

SA's house prices are on the rise
Lightstone's repeat sales data shows house prices are moving up again...

Crime situation still a cause for concern says Rawson MD
South African property owners have over the past 20 months weathered several major storms with commendable success – but one factor, crime, is still a cause of concern and a serious dampener on the property market, says Tony Clarke, MD of Rawson Properties...

Upgrade in time for the upturn
The rapid decline in the home loan interest rate since December and the resulting increase in affordability has set the stage invitingly for savvy homeowners to upgrade to bigger and better properties before prices start to rise again...

Divorce wranglings can make selling a home difficult
Recent months in the Anne Porter Knight Frank sales experience have once again shown just how complicated house sales can become when they are caused by a divorce...

Knock-out property rentals
Some Cape landlords are hoping to transform an R8 000/month rent into a R60 000 windfall during the 2010 soccer tournament. Residential owners in Mouille Point, Green Point, Sea Point, De Waterkant and the city foreshore and harbour areas are apparently planning to charge possibly five times the going rate, writes Lanice Steward, MD of Anne Porter Knight Frank...

News From

Paddocks - Fixing damp

I own a sectional title unit and I'm having problems with damp in the majority of the walls. I can only deduce that this is because of ground moisture seepage.

Am I liable for the cost of repair?

Upcoming Events

Focus On

Haenertsburg, Limpopo, South Africa
Driving east from Pietersburg (Polokwane) to Haenertsburg, the land rapidly changes from flat, dry bushveld to steep hills and valleys covered in lush green forests...

>> View Properties in Haenertsburg
>> View Properties in Limpopo

Chas Everitt Home MakeOver

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1. Western Cape
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6. Free State
7. North West
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In the Area

The areas we are going to take a closer look at this week are;

  • Helderberg
  • East London
  • Midrand
  • Western Cape
In the Area 1 - Helderberg
No winter chill for Chas Everitt Helderberg

There may be more cold fronts coming, but the team at the Chas Everitt Helderberg office already have spring fever following a record month in July in which they notched up home sales worth more than R32m...

In the Area 2 - East London
Luxury properties still selling well in East London

The demand for homes in the upper sector of East London’s property market has remained steady in the face of the economic downturn – mostly thanks to the fact that many buyers in this sector have access to cash...

In the Area 3 - Midrand
Thirty-somethings favour Midrand estates

Lifestyle estates in Midrand are recording solid sales thanks to sustained interest among established professional people...

In the Area 2 - Western Cape
Statistics and figures produced by SPS (Selected Property Services), a computerised properties for sale information facility supported by nine prominent estate agencies serving the Bloubergstrand, Table View, Parklands...

To the editor

Do you think that as a homeowner that the time is right to fix your interest rate on your mortgage or should you wait a little longer? Send your viewpoints to news@cyberprop.com

From the editor:

The majority feedback that we received from our readers was that they feel it is not a good time to fix mortgage rate as they feel interest rates should come down more

To the editor:

How come there is always 3 and a half percent between the repo rate and the prime rate? I understand that this is where the banks make a profit but when they charge 13 and a half from 10 percent repo then they make a 35 percent mark-up but now at a repo of 7 they make a 50 percent mark-up! Am I understanding this correctly?


If you have an answer for Peter send it to news@cyberprop.com

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