Weekly Newsletter
Friday, 23 November 2007
Property Search | Estate Agents | List your property

Edition 46 of 2007, Friday, 23 November 2007

Dear Reader

We all know that Donald Trump made his money with Real Estate. But is he or any member of his family prepared to share the secret? "By nature, I’m not a rude guy. So if someone asks me real estate questions, I do try to listen and give some insight, even if I’d just rather listen to my iPod, catch up on some reading or sleep". Words by Donald Trump Jr.

“The ubiquitous ABSA property index, used by every estate agent who wishes to add a little pressure to a sale, is misleading because it doesn’t show the volume of transactions,” says Matthew Lester, Rhodes University Tax Professor and well-known columnist. “But if you dig a little deeper you’ll find that the 18 month property boom which started around 2003 has been over for quite some time. The property market is well and truly overcooked.” Here’s how to play it smart and safe in 2008

Can I make whatever alterations I want to make to my sectional title? After all I am the property owner. This is a question received from a reader. One of our CyberAgent users, Anne Porter Knight Frank Properties gives us a clear answer Sectional title owners do not have the right to alter their properties indiscriminately

What is a sectional title unit? A Sectional Title Unit consist of a section of a building/s together with an undivided share in the common property. All the sections together with the common property comprise "the Scheme"

According to a spokesperson for the Estate Agency Affairs Board (EAAB), the number of registered estate agents exceeded 84 000 in September this year “Today’s successful buyers and sellers have become those who elect to work with educated professionals whose ability extends beyond listing a property.”

News from Nedbank - Richard Edwards, Manager, New Business for Nedbank Corporate Finance this week said the Cape Nedbank's forecast is that the interest rate will rise by another 0,5% still in this year. Thereafter he believe it will likely stay flat for a while

Lastly this week; we received more news on Rudco, the Company with the "to good to believed" home loan mortgage rate of 6%. Rudco has consistently missed several deadlines for corrective action as instructed by the National Credit Regulator (NCR), and its latest deadline is 23 November, just three days before the new division of Rudco - Intel Property Group - is launched in the Western Cape on 26 and 27 November, to potential franchisees.

In our CyberProp Blog we look at why Swellendam is facing a shortage of affordable housing.

The editor


>> Real Estate News - $29.5m only to knock it down - welcome to Vaucluse (Australia)

THE new owners of Australia's most expensive house are planning to knock it down.

Formerly from South Africa, the Krok family, who made their fortune from cosmetics and casinos, paid $29.5million for Tahiti, a Sydney harbourside mansion at Vaucluse.

News of the demolition comes as new figures reveal the minimum price for a spot on Sydney's quarterly top-10 property sales list has hit $10.5million...

>> Here’s how to play it smart and safe in 2008

Is this irrational exuberance?

It may well be, says Rhodes University Tax Professor and well-known columnist Matthew Lester, speaking at a recent BDO Spencer Steward function.

It’s not easy being an emerging economy, what with interest rates that change direction depending on US consumers’ appetite for shopping and the apparently unquenchable thirst of the oil-guzzling-fire-breathing dragon that is China...

>> How to survive interest rate hikes

In June last year the prime overdraft rate in South Africa was 10.5 percent. It is now 14 percent, and there is a distinct possibility of a further 0.5 percent rise before the end of this year or early next year.

"These facts are well known to most South Africans paying off mortgage bonds, but there are many who have not yet calculated just how much more this is now costing them each month," says Sean McCauley, Northern Region director for Rawson Properties...

>> Private investors weigh options

MORE property is coming onto the market as smaller private investors become willing sellers.
These investors bought commercial properties when interest rates were lower, but are now feeling the “squeeze”, say some market commentators.

By contrast, the listed property sector is largely unaffected by the increase in interest rates and is thus able to support the prices achieved in the past year...

>> Sectional title owners do not have the right to alter their properties indiscriminately

It is not yet widely appreciated in South Africa that if a person buys into a sectional title property and then wishes to make changes which can affect the aesthetics of the scheme or the “welfare” - a very general term - of others living in it, they have to receive the approval of the vast majority of those in their complex or in their estate.

Pointing this out recently, Lanice Steward, MD of Anne Porter Knight Frank, said...

>> Boschendal's new owners pay R180 mil to complete the purchase of the 2,240 HA estate

The new owners of Boschendal have demonstrated their commitment to obligations made to the community and to Anglo American in an almost tangible manner by completing the second phase acquisition of Boschendal lands even though they are still awaiting planning approval for their initial property developments. The latest acquisition increases their investment to over R500 million in land and development...

>> Ability of agents in the spotlight

NEAR-MANIC consumer demand during South Africa’s real estate boom, which peaked in 2004, impacted on the country’s property sector in a number of ways.

It depleted stock levels to record lows, which in turn encouraged sellers to set premium prices – and saw buyers pay them – says Mike Bester, CEO of Realty 1 International Property Group. In so doing, entry level affordability was dealt a harsh blow, while the average middle market price soared, hitting R950 000 in September, according to Absa...

>> Focus on Jeffrey's Bay, Eastern Cape, South Africa

Jeffrey's Bay - Home of the best right hand point break in the world!

International surfers flock to catch the legendary waves in this, a paradise of sunshine, aloes, dolphins, shells, perfect points & classic reefs. Surfers & others who found it hard to leave such an idyllic spot have turned Jeffreys Bay into a year round fun place to be, creating a thriving local craft industry besides the surf shops on just about every corner...

>> View Properties in the Eastern Cape
>> View Properties in Jeffrey's Bay

>> Property of the week

Eastern Cape, Jeffreys Bay, Wavecrest

Bedrooms: 3
Bathrooms: 3
Garages: 2

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>> Press Release from Andre de Villiers - Western Cape Regional Chairman - Chas Everitt International

The direction of the property market is at the start of every new year a favourite topic amongst real estate commentators. After a year that has seen the introduction of the National Credit Act as well as substantial increases in interest rates these two issues seem to dominate current discussions.

Those trying to balance a monthly budget should not find an interest rate increase unexpected, although it is never good news for homeowners...

>> Nedbank chief bullish about South African property prospects

Speaking at the recent South African Property Owners Association (SAPOA) Gala Award Dinner at Port Elizabeth, the first of its kind ever to be held in this city, Richard Edwards, Manager, New Business for Nedbank Corporate Property Finance (Cape), said that inflationary pressures and the resultant 3,5% rise in interest rates in the middle of 2006 had not, as yet, impacted too severely on the property sector - nor did he foresee any disastrous falling off in investment although this is already “beginning to find new avenues”...

>> From the CyberProp Blog

Swellendam faces shortage of affordable housing

Strong demand from lifestyle buyers in the picturesque town of Swellendam in the Western Cape has pushed property prices beyond the reach of many local buyers.

Although the new National Credit Act has put a slight damper on sales, demand from lifestyle buyers is still strong, says Laura Clack, area specialist for leading local agency Homenet Overberg...

>> Software at its best!

We are constantly look for avenues to advertise the properties of our CyberAgent users and will continue doing just that.

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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