Weekly Property News
Friday, 23 April, 2010

Dear Reader

Will it or will it not? I’m still not sure what the impact of the World Cup 2010 will have on the property industry. Do you? Saul Geffen, CEO of ooba, says while consumers are probably right not to expect an immediate effect on property prices as a result of the World Cup, in the medium term it is likely to have a positive influence. Geffen says the huge infrastructure drive by the government to improve the country’s roads, public facilities, transport networks and airports for the Soccer World Cup should contribute towards higher property values in the surrounding areas. “We expect the continued recovery in the property market to be gradual, with growth in excess of inflation over 2010.” Send your viewpoint to news@cyberprop.com

Market news: The latest statistics released by bond origination company ooba reveal that the recovery in house prices continued year-on-year in March with above inflation growth. The oobarometer price index recorded a year-on-year nominal price increase of 9.7 percent to R850 864 from R775 559, a slight deceleration from the 11.4 percent year-on-year price growth recorded in February.

Headlines: The difficulties currently being experienced by applicants for bond finance are another good reason for a further 0,5% drop in the interest rate, says Bill Rawson, Chairman of Rawson Properties. “In the 39 years that I have been in property,” he said, “it has seldom been more difficult to get a bond. The applicant has to show that over a period of at least six months his cash flow has been able to support an outlay equal to whatever he will be paying on his bond. 0,5% cut in the interest rate now essential

“Buying first usually means you won’t have to move twice. Many repeat home buyers have had to move to an interim rental property because they couldn’t find a replacement home by the time they had to turn their existing home over to the new buyers.” Advice from Berry Everitt, CEO of the Chas Everitt. It's safer to sell before you buy a new home

The editor

In This Issue
Featured Property
Cape Town, Camps Bay

This luxurious villa is spectacular for nature lovers. Bordering the nature reserve with fantastic sea and mountain views. Offering two dwellings, a two bedroomed property with a spacious study and 3 bedroomed property...

CyberProp Property Count: 23/04/2010

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Properties for Sale: 134,598
Properties to Rent: 10,061

Local News

0,5% cut in the interest rate now essential

The difficulties currently being experienced by applicants for bond finance are another good reason for a further 0,5% drop in the interest rate, says Bill Rawson, Chairman of Rawson Properties...

The housing boom is back

The latest statistics released by bond origination company ooba reveal that the recovery in house prices continued year-on-year in March with above inflation growth...

Market rentals showing impact of tougher economic times

According to the latest Rode's Report on the SA Property Market, in the fourth quarter of 2009 the overall growth in market rentals for office space was weak. This was especially evident in Cape Town (-6%) and Johannesburg (-4%) decentralized, where rentals were, on average, lower than what they were a year ago...

Get a foot in the door with rent-to-buy

Although the banks currently have several mortgage products available especially for first-time buyers, it is still difficult for many to qualify for a home loan due to the stringent requirements of the National Credit Act...

Self-employed entrepreneurs can battle to get finance

South Africa, says Rob Lawrence, National Manager for Rawson Finance, has in the last decade seen a big rise in the number of self-employed people. These entrepreneurs, he says, usually operate either as sole proprietors, through registered close corporations or Pty (Ltd) companies...

Courts favour poor homeowners over banks

It is reported that the courts are now more inclined to interpret the provisions of the National Credit Act in favour of those whose homes the banks try to repossess, particularly if they are from disadvantaged backgrounds...

If building for yourself, check builder out carefully

Lanice Steward gives some advice to owner-builders

Those who build for themselves, possibly after also doing much of the design themselves or in collaboration with a designer, can bring about substantial savings and can gain great satisfaction from the whole process, says Lanice Steward, MD of Anne Porter Knight Frank...

Expert advice for buyers

The very first thing that you need to do, before you even start looking for houses to buy, is to work out what you can afford and what size bond you qualify for...

It's safer to sell before you buy a new home

Many homeowners are looking at the upgrading opportunities presented by the current market and making offers to purchase bigger and better properties before they have even listed their existing homes for sale...

What is the domicilium citandi et executandi?

Latin phrases, as well all know, are much liked by those who draw up legal agreements – but they do have a tendency to confuse the average reader...

Beware of terms and conditions delaying transfer

It still comes as a surprise to her, says Lanice Steward of the Cape residential estate agency, Anne Porter Knight Frank, how many people, including some estate agents, do not carefully read through the terms and conditions on which bonds are granted to them...

Ensure show house is in tip top condition

A few days and a few rands spent on preparing a home prior to putting it on show, almost certainly will result in its achieving more offers at higher prices, says Simon Raab, Greeff Properties’ Sales Manager for the Southern Suburbs of Cape Town...

Open mandates open the door to home sale problems

Even if your property for sale has been on the market too long for your liking, you should not be tempted to switch from a sole mandate with one estate agent to an open mandate involving several agents...

Property upgrades do show good returns

If there was any doubt about the matter, a US study shows that well conceived home improvements do generally enhance values and saleability...

Window repairs to sectional title units

The owners of units in sectional title schemes are usually aware that it is the body corporate’s duty to maintain and, if necessary, repair all common property in their schemes while they themselves are responsible for all maintenance in their section...

Put your HOA to the wellness test

If there was any doubt about the matter, a US study shows that well conceived home improvements do generally enhance values and saleability...

Action against problem tenants

One of the questions put to managing agents by trustees and owners of sectional title property with disturbing frequency, says Michael Bauer, General Manager of IHFM is, “We have a major problem with tenants in our scheme and their general disregard for the rules of the scheme. Can we evict them?”

Innovative flooring products

If there is one aspect of home design which has benefited more than most from ongoing improvements in technology it is flooring, says Cheryl Neave, PR Manager for the Cape Town Building Centre...

Focus On

Focus on Cape Town, Western Cape,
South Africa

Cape Town - the Mother City of South Africa. Cape Town is a city of many attractions, a mix of cultures, landscapes, architecture, lifestyles, customs and scenery. Cape Town offers you mountains, beaches, sea, rivers, wind and a wonderful climate...

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>> Property in the Western Cape

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In the Area

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

  • Potgietersrus (Mokopane)
  • Cape Town
  • Boschenmeer
In the area 1 - Potgietersrus (Mokopane)

Mokopane rentals white hot

Strong rental demand among mine contractors in Mokopane (formerly Potgietersrus) is underpinning the property market in this Limpopo town...

In the Area 2 - Cape Town

Cape Town, South Africa Real Estate: Winning Over the World

For a while, it seemed an overwhelming majority of South African headlines were negative -- poverty, HIV/AIDS epidemic and horrible crime rates . These issues still plague the country but it is pressing forward with wobbly confidence as its getting ready to host the 2010 World Soccer Cup. South Africa is anxious to show itself as an emerging leader...

In the Area 3 - Boschenmeer

The Chas Everitt International flag is now flying high at Boschenmeer, one of the country’s premier golfery estates, thanks to the conversion of a top local agency to the national brand...

To the editor

The FNB synopsis is quiet correct. Estate Agents must now recognize that their target market has changed considerably from the traditional white middle-class families to now be the upwardly mobile black families who want to reside in established suburbs with good schools as these purchasers place a tremendous value on education. There is bound to be a knock-on effect, especially when we take into account that our black population vastly outnumbers those of the other race groups. As the ratio of black purchasers has increased by more than 50% over the past five years I think we can safely predict that this sector of our market will again increase by at least 50% by 2015 as South Africa’s large employers will continue to pursue BEE initiatives. For sellers to capitalize on this phenomenon they will need to see that their ‘agents of choice’ market their properties through the media and the internet in such a manner that it adequately reaches this aspiring client base. Generally speaking our black middle-class families are enthusiastic buyers who show excitement when participating in the real estate market which they are keen to enter as they definitely appreciate the long-term benefits of real home ownership”.

Owen Dormehl, CEO of Dormehl Property Group

Send your viewpoint to news@cyberprop.com

News from

Grant Gunston Attorneys - Whatever your business, the new Consumer Protection Act will make it necessary to review your contracts

South African companies of all sizes will almost certainly find that they have to redraft many of their contractual documents if they are to avoid running into trouble as a result of the new Consumer Protection Act, says Grant Gunston, Senior Director of Grant Gunston Attorneys...

Rama - Skills training in Tshwane gets a major step up from Rama

Low-cost skills training for poor unemployed people in Tshwane’s north-west areas is set for a huge boost thanks to a groundbreaking public-private partnership deal between the Tshwane metro council, the University of Pretoria and Rama Horizon Developments, the company involved in the multimillion rand Rama City project...

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