Weekly Property News
02 December 2011
FROM THE EDITOR

Dear Reader

As 2011 is reaching the end it seems that the real estate industry is lifting it spirit;

It may seem hard to believe, but the average home price in SA today is more than three times what it was 10 years ago – despite all that has happened since the sub-prime crisis of 2008 plunged the world into a financial slump. However, thanks to lower interest rates now than in 2001, you don’t need to earn three times as much - or more - to buy the average home. “And that just goes to show, not only that it pays to invest in property for the long term, but also what a great purchasing opportunity prospective buyers have at the moment.” Berry Everitt, MD of the Chas Everitt International property group

The property market is like a seriously ill patient. All indications are that the patient will recover - given the right medication such as the government's R1 billion mortgage-backed insurance fund. The National Housing Finance Corporation (NHFC) chief executive, Samson Moraba, confirmed last week that the fund will be operational by October 2012 and will aim to galvanize banks into approving more home loans. Bruce Swain, Managing Director of Leapfrog Property Group

Despite still facing challenges, the property market in South Africa is performing better than some of its counterparts elsewhere in the world. It has "become clear to me that the South African real estate sector is coming through bad times less damaged than that of the USA".Tony Clarke, Managing Director of Rawson Properties.

Headlines: The composite building confidence has lifted in the fourth quarter 2011 after holding steady in the preceding period, according to First National Bank and the Bureau for Economic Research (FNB/BER). The latest FNB/BER building confidence index increased to 29 points from 23 points, boosted by retailers and manufacturers of building materials. "The higher sales can be attributed to the need to do maintenance and renovations of existing buildings after a long delay," said FNB chief economist, Cees Bruggemans. FNB/BER building confidence lifts in 2011

Market news: House price growth is on the downturn once again, after a brief uptick around mid-year according to FNB's House Price Index. The November average house price was still 3.2% higher than November a year ago (year-on-year), but this represents a slower growth rate than the October revised year-on-year growth rate of 4%, and represents the third consecutive month of slowing year-on-year house price growth. The average price of homes traded, according to the FNB House Price Index, was R804,242. House prices on the downturn

Enjoy!
The editor

In This Issue

Northern Cape, Upington
House :
Idealy situated next to the river this 4 bedroom 3 bathroom house with airconditioning and swimming pool...


CyberProp Property Count: 02/12/2011

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Properties for Sale: 141,586
Properties to Rent: 10,915


Local News

South African economy registers 1.4% growth

South Africa's economy grew by 1.4 percent in the third quarter of 2011, a sluggish improvement from the 1.3 percent posted from April to June, the national statistics agency said on Tuesday...


FNB/BER building confidence lifts in 2011

The composite building confidence has lifted in the fourth quarter 2011 after holding steady in the preceding period, according to First National Bank and the Bureau for Economic Research...


Positive outlook for South African property sector

Despite still facing challenges, the property market in South Africa is performing better than some of its counterparts elsewhere in the world...


Where To For Property in 2012?

No one could claim that the South African property market has done well in 2011. Sellers are finding that their estimated prices need to be lowered; buyers are eager but struggle to buy with banks hesitant to approve home loans...


Low bond/income ratio spells good times for homebuyers

It may seem hard to believe, but the average home price in SA today is more than three times what it was 10 years ago – despite all that has happened since the sub-prime crisis of 2008 plunged the world into a financial slump...


Why property will remain weak

The overhang of residential property's "shadow inventory" is massive and will likely weigh on market dynamics for the next 18 to 24 months, according to analysts surveyed by Auction Alliance...


House prices on the downturn

House price growth is on the downturn once again, after a brief uptick around mid-year according to FNB's House Price Index...


Originators still your best bet if you want a home loan

If you want a home loan, your best chance of getting one is still through a mortgage originator...


Banks upping unsecured loans but holding back on mortgage loans

Recent statements, figures and advertising campaigns, says Rob Lawrence, national manager of the bond originators, Rawson Finance, indicate that in pursuit of higher profits, South African banks are upping their lending on unsecured loans while still continuing to hold back on their mortgage bond loans...


The poor are the hardest hit by the banks' tight approach to the issue of bonds

Various statements made over the last few years by Rawson Properties’ directors to the effect that people at the lower end of the housing market are those hardest hit by the National Credit Act when they apply for a housing loan were confirmed this week by Alvin Suklall, Rawson Properties’ franchisee for Parow Valley and its surrounding areas...


Gauteng tolling won't be scrapped, ANC decides

Thousands of people thronged to the Johannesburg City Hall early this month in protest against the implementation of the Gauteng road tolling system...


Start building your property portfolio while you are young

“The problem with giving sound advice in the property market,” says Lanice Steward, Managing Director of Anne Porter Knight Frank, “is that people are always inclined to suspect one’s motives. However it is surely significant that almost all the chief executives of South Africa’s estate agents are now saying that the current time is a good one in which to start building capital through property - and I agree with them.”


Constitutional Court decision could hamper upgrading of residential stock

Investment property owners, especially those who are the landlords of low cost residential property in high density urban areas, are right now awaiting, with some trepidation, the outcome of a trial in the Constitutional Court, which, says Gunstons Attorneys’ commercial director...


Ugly battle over 'platinum strip'

On Monday business will resume at a prime real estate office that was literally torn apart in a bruising war for control of South Africa's platinum property strip...


Burst pipe at the Building Centre delays official opening

The grand opening of Africa’s biggest and best permanent building exhibition – the new 860m² Building Centre, now sited at Northgate Estate just off the N1 highway, has had to be postponed until early in the new year due to a burst pipe flooding the entire complex with 50mm of water last Sunday, when no one was there...


Auctioneer Joey Burke raises over R1.5-million for charity in one month

In the course of just one month, Auctioneer Joey Burke of GoIndustry DoveBid SA has raised over R1.5-million for charities in Cape Town, inspiring people to dig deep into their pockets with his unique fast-and-funny style of ‘auction-tainment’...


If a tenant buys the property he lives in does the rental agent get sales commission

Quite frequently, says Bill Rawson, chairman of Rawson Properties, a tenant living in a property will grow so attached to it that if and when his financial circumstances improve, he will offer to buy the property, or the owner might of his own accord decide to sell the property, giving the tenant the first option...

Focus On

Upington, Northern Cape, South Africa

Bound by the Orange River and the Kalahari, Uping`ton is the principal city in the Northern Region, an ideal winter holiday resort with all the modern conveniences on the major routes to Namibia and Kalahari, Augrabies, Fish River Canyon and Northern Cape...

>> Properties in Upington
>> Properties in the Northern Cape


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In the Area

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

  • Amanzimtoti
  • Plettenberg Bay
In the area 1 - Amanzimtoti

Transnet’s R100bn plan to turn Durban’s former international airport site into a new dug-out port is an exciting prospect for the property market in Amanzimtoti, the town also known as the gateway to KwaZulu-Natal’s South Coast holiday playground...


In the area 2 - Plettenberg Bay

Homeowners in Plettenberg Bay who are hoping to sell their properties during the upcoming holiday season need to review their asking prices urgently...


To the editor

Dangers of using unlicensed estate agents

As it happens we have fallen prey to a thieving agent, Marita Grobbler of Wellish Properties. She advertised a property to rent in Niona Park, Pretoria North to which we responded.

Being impressed with the property and price and having done a search of Wellish properties, found on a google search and in Cyber Prop we paid our deposit and contract fee electronically. The occupation date was for 01 December 2011 with a 3 year term.

The lease agreement was signed on the 15th November and returned to Marita Grobbler. We received a signed copy, by the Owner, Riaan Prinsloo, and proceeded to make arrangements for the move, i.e. measured for curtains etc.

When we arrived at our 'new residence' yesterday we were met with confusion and an occupied house. This Marita Grobbler is now unreachable and has not had the audacity to contact us or return our money

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


Local news continue

Trustees often tempted to underbudget levies

All too often, says Michael Bauer, general manager of IHFM, the property management company, when the trustees of sectional title schemes set the budgets for the new financial year, which now has to done prior to the financial year end of the body corporate, they bow to pressure from their members – who are almost invariably reluctant to see levies rise – and set the levies too low...


Bodies coporate need to be aware of rights when faced with levy defaulters

Owners of sectional title units who run up substantial levy arrears and then try to sell their units without meeting these debts – or whose units are being sold in execution – will discover that the Sectional Title Act (clause 15 (b)) prevents them dodging the levy debts even though they plan to leave...


Debt recovery is a lengthy expensive process

It is surprising, but true, that there are many sectional title property owners who still do not appreciate exactly why monthly levy collection is essential, says Michael Bauer, General Manager of the property management company IHFM...


New amendments to Prescribed Management Rules

Several new amendments to the Prescribed Management Rules (as set out as Annexure 8 to the Sectional Title Act) came into effect on 28th October - and these, says Michael Bauer, general manager of the property management company IHFM, will radically change certain traditional practices in sectional title schemes...


Sandton could lead the revival of the top end of Gauteng's homes market

Cash-flush Sub-Saharan visitors eye Sandton homes says Ennik

“Spurred on by a groundswell of home buying interest from the rest of Africa, central Sandton could well lead the revival in the upper end of the residential property market in Gauteng.”


GBCSA at COP17

The GBCSA and the World Green Building Council are going to be active at the United Nations COP 17 international climate change talks [1] in Durban from November 28th to December 9th 2011. No matter what kind of international agreement is reached (or not), we know that action has to be taken and buildings are key to climate action...

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