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Weekly Newsletter
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Friday, 22 February 2008
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The Gulf's rich are beginning to invest in dowdier places as well WHEN oil sheikhs splurge in the West, they make headlines: some Qataris, for example, in partnership with some Britons, recently bought a chunk of London's fashionable Chelsea for $1.9 billion. They make news, too, with big-tag items at home, for instance in the two richest statelets in the United Arab Emirates (UAE), with the world's tallest building in Dubai or a new Louvre museum in Abu Dhabi. Yet with less fanfare, Arab oil money may have a bigger impact elsewhere, in poorer countries outside the Gulf...
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| >> Budget and property / Chas Everitt |
Budget appropriate, says CEI Berry Everitt, MD of the Chas Everitt International property group says the Budget is appropriate in terms of current economic conditions. However, he regrets that finance minster Trevor Manuel did not hike the threshold for transfer duty on property transactions from the current R500 000. "New entry into the market could have been boosted if minister Manuel raised the threshold, since property values have escalated recently. It leaves a small pool of properties that will not attract transfer duty and thus limit choices for poorer sections of our community that want to invest in their own homes." Everitt adds that the additional spend on infrastructure development as well as the reduction in corporate tax are to be welcomed. "It sends out a message of confidence, which will reassure the market. "I would, however, have liked to see greater emphasis on capital gains tax relief and relief for companies and employers investing in low income housing."
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| >> Budget and property / Nationlink |
Actually, there are plenty of property positives in the Budget While the response from the real estate industry has generally been negative, there were quite a few positives for property in this week’s Budget. The first of these, says Dr Piet Botha, chairman of the Nationlink estate agency group, was Finance Minister Trevor Manuel’s assurance that inflation will be within the target range of 3 to 6 percent by the end of this year...
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| >> Budget and property / Institute of Estate Agents |
Dr Willie Marais, national president of the Institute of Estate Agents (IEASA), says that while the Budget again makes billions available for housing and infrastructure that would substantially improve the lives of millions of South Africans, there is a serious question mark over government's ability to convert such funds into actual product. "It was with this in mind that IEASA recently joined the International Housing Coalition, the organisation that co-ordinates efforts around the world to address the issues of housing provision for the poor, and is now in a position to offer much practical information and advice to government to help speed up housing delivery, in line with the Millenium Development goal of eradicating squatter camps by 2014. "To achieve this goal, and to enable the delivery of sufficient low income housing to meet the growing demand, it will be necessary for government to look beyond itself draw in as many players from the private sector as possible. "Meanwhile, we heartily welcome the provisions in this year to make life easier for small businesses in tax terms. More than 75 percent of the real estate industry is made up of small operators and the increase in the VAT threshold and the possible introduction of a simpler tax system for those with a turnover of less than R1m is most welcome. Article from: www.ieasa.org.za |
| >> Budget disappointing - Jigsaw (ERA Property Group) |
Finance Minster Trevor Manuel's budget was disappointing from a property perspective, says Pieter Ferreira, director of Jigsaw, the holding company of Aida National Franchises and the Realty 1 property groups. "There is very little incentive for new homebuyers to enter the property market. We would have welcomed a higher threshold before transfer duty on property transactions become payable. "A stable and sustained property market depends on new entrants and the 2008 Budget did nothing to make it easier for poorer buyers to acquire their own properties," Ferreira says...
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| >> Budget and property/Sotheby International Realty in SA |
Reacting to the Budget today, Lew Geffen, chairman of Sotheby's International Realty in SA, said it did not contain much to encourage the real estate industry, but that in the current climate "I suppose no news is good news". On the macro front, he noted, the massive allocation to Eskom and substantially increased spending on the police and education had been on his wish list as they would boost consumer confidence...
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| >> Budget and property / Homenet |
Mr Manuel failed to address the need for a more broad based overhaul of home buying costs says Martin Schultheiss, CEO of the Homenet Group. “These costs inclusive of bond registration, transfer duty and conveyance fees, work out at 6-8% of the price of the property. “By contrast figures we have researched show that in the UK, the home buyer can expect to pay about 1,4% in costs inclusive of legal fees, search fees (involving a deed search in local council records), Inland Revenue Stamp Duty land tax, bank transfer fees and land registration. “It’s also notable that the interest portion of bond repayments in the UK is tax deductible, something should have been considered for this budget up to a level of say, R1m in property value to encourage first timer home ownership. “At the very least, such as a concession to private property investors who let properties below a certain monthly rental, could assist in solving the current housing shortage.”
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| >> Budget and property / Realnet |
“Of concern is that Mr Manuel failed to address issues specific
to the property industry including rising building costs, shortages of
materials and skills, questionable building standards, long planning delays
and over-extended property infrastructure said RealNet CEO Tjaart van
der Walt. “The commitment to stabilising the electricity supply situation is welcome as being key to the future of the property market but it remains to be seen whether promises are converted into deeds. “Encouraging ‘partnerships’ between government, the financial sector, developers and social housing organisations to address the needs of the affordable housing sector are welcome in that property ownership at these levels creates wealth, but Mr Manuel needs to spell this strategy out in greater detail. “Increased infrastructure spending and an undefined ‘reinforced’ fight against crime are obviously also welcome commitments in that the property market is very sentiment driven. A commitment to reduce interest rates as soon as possible would have been welcome, based on Mr Manuel’s expectation that inflation will fall to an average of 4,9% in 2009
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| >> Budget and property / Sable Homes |
JO Pelser, MD of leading housing developer Sable Homes, says the proposed huge increase in spending on infrastructure such as power stations, railways road and 2010 facilities in heartening for a construction industry that is losing skills and expertise at a rapid rate. "This spending - provided of course that government can find the capacity to administer the funds and actually get them into projects on the ground - will not only be a major contributor to job creation but help keep badly needed skills in SA for when the property market improves. At the moment we are losing vital skills fast to countries such as Dubai, Oman and China where there is massive construction under way." In addition, he says, the delivery of infrastructure to previously undeserved areas would mean that these areas were already serviced and "developable" once the property market turned, and would enable much more rapid delivery of housing to meet demand than was currently the case. Meanwhile, increased provisions for housing, schools and hospitals would not only boost confidence but also aid job creation and retention in the construction industry, and ultimately underpin demand for bondable housing.
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| >> You and the budget |
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It's national budget time and hence Sanlam again offers you comprehensive commentary on the Budget 2008, announced by Finance Minister Trevor Manuel, on 20 February. Click here
for a comprehensive overview of the immediate impact of the budget on
the macro economy, as well as what implications the budget announcement
holds for you as an individual and for your business.
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| >> Focus on Langebaan, Western Cape, South Africa |
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View Properties in the Western Cape
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| >> Property of the week |
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| >> News from - PRO-PROP Property Consultants |
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| >> Letter to the editor |
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In response to the article written in your newsletter of February 8 with the Title:” RE/MAX urges state to launch first-time buyer "package". I absolutely agree with this article but would like to bring to the attention of your readers the following: Have your potential new house inspected !! Why do I want to bring this point across...
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| >> Syndic8 Solutions |
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| >> Software at its best! |
If you would like to know more about the above features and benefits that CyberAgent offer, visit: www.cyberagent.co.za or email: sales@cyberprop.com |
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For Sale Property: To Rent Property: |
Budget
2008! The new buzz. First it was the New National Credit Act,
then the increase in interest rates and now the Budget of 2008.
Factors that plays a vital role in the property market. One
cannot help to wonder what will be next.
For
those of you that can remember last week's article and the invitation
to Richard, one of our readers, to submit his article; it's here;
Letter to the Editor. Thank you Richard your bottle of sparkling
wine is on its way. In response to the article written in your
newsletter of February 8 with the Title:” RE/MAX urges state
to launch first-time buyer "package". I absolutely agree
with this article but would like to bring to the attention of your
readers the following: Have your potential new house inspected
!! 
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