Weekly Newsletter
Friday, 24 April, 2009
Property Search | Estate Agents | List your property

Edition 16 of 2009, Friday, 24 April 2009

Dear Reader

South Africans came together this week and cast their votes on Wednesday. My question to you last week was, “How does politics and property compare”?  In the 5 year history of the CyberProp.com newsletter we haven’t seen the kind of response that we received this week. It was clear that size might count but politics does count.

Only our political parties can help with a rescue plan to save the current property market”, Zena

 Yes, politics does play a role, but right now it is the “flippin” banking sector who is crippling our economy and especially the property market with their unrealistic views on approving bonds/finance, specifically to self employed citizens!!!”, Andries

“Not all is doom and gloom. I’m sure that after these elections we can now only go forward and that we will see the property market stabilising within the next few months”, Peter

I don’t know what’s going to happen in a new administration, all I know is that there will be no change in overall policy.” Said Reserve Bank chief economist Monde Mnyande in a speech to the business school at University of the Witwatersrand. The central bank’s Monetary Policy Committee meets next week on 29 and 30 April where after Governor Tito Mboweni will announce its rate cut decision. Steep rate cut expected next week.

A question doing the rounds, particularly among those who have finance or can raise it, is: does one buy residential property now that prices have fallen so much?
Timing is the key to property market killing
.

 

In 1699, during Governor W.A. van der Stel's travel in South Africa, he looked down on this beautiful valley and named it "Het Land van Waveren" after a well-known estate near Amsterdam belonging to his mother's relatives. The first white settlers of the Dutch East India Company arrived here shortly afterwards and the town of Tulbagh developed. Focus on Tulbagh, Western Cape, South Africa


Enjoy!
The editor


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>> Real Estate news - Fall in UK house prices slowing

Many properties still being listed at unrealistic prices.

Asking prices for homes in England and Wales fell an annual 7.3% in April, the smallest drop since January, property Web site Rightmove said on Monday. That follows an annual drop of 9% in March and adds to evidence that the pace of house price falls may be starting to moderate as the flow of credit picks up after coming to a virtual standstill last year.

There remains a big gap between initial asking prices and eventual selling prices, however, and Rightmove said many properties were still being listed at an unrealistic price...

>> Steep rate cut expected next week

Analysts say cut needed to to boost an economy that looks set for its first recession in 17 years.

(Reuters) - South Africa's central bank is likely to keep its aggressive monetary easing stance next week with a steep rate cut to boost an economy that looks set for its first recession in 17 years.

Financial market turmoil and recession in developed countries have knocked Africa's biggest economy, hitting exports of resources and vehicles, and plunging the key manufacturing sector into a sharp decline...

>> SA has not yet experienced a rapid re-pricing of its real estate

We have not witnessed the rapid re-pricing of real estate that is being experienced elsewhere

Investment in South Africa's commercial real estate market produced double-digit nominal total returns of 13%, the SAPOA/IPD Property Index for 2008 shows. However, once last year's high inflation rate of 11,5% is factored in, these returns equate to inflation-adjusted ‘real returns' of just 1,3% for 2008.

The South African performance was driven by robust income growth. Capital growth, though was markedly slower than in 2007, but was nevertheless positive across all sectors, which further underpinned the result.

>> Home selling mistakes

Selling your property, especially in the current property slump, may seem impossible, but property owners can increase their chances by avoiding common home selling mistakes says Jenny Rushin, Provincial Property Finance Manager for ooba (formerly MortgageSA).

Incorrect pricing
Attaching an incorrect price tag to your home is one of the biggest mistakes sellers make...

>> A Home Makeover with a Difference!

This exciting initiative, now in it's second year involves selecting a Children’s Home and giving them a Home Makeover, transforming them into bright, new, comfortable and stimulating home environments for the children who live there.

If you are interested in participating in this rewarding project or prepared to donate materials that can be used please contact the Chas Everitt office near you or Tracey Everitt...

>> The golden rules for buying property in a soft market

Prices are down so now is a good time to buy, but that doesn’t mean you should throw caution to the winds. There are some golden rules to follow when buying property – in any market.

So says Leonard Dann, director of CENTURY21 South Africa, local arm of the world’s largest real estate organisation...

>> Timing is the key to property market killing

Auction house boss says strike now for the housing bargain of a lifetime, writes David Pincus

A question doing the rounds, particularly among those who have finance or can raise it, is: does one buy residential property now that prices have fallen so much? They have been declining since the middle of 2008 and dropped 4.2% year-on-year in March, according to mortgage originator ooba, formerly MortgageSA...

>> Bond payments fully covered

LARGE, EXPENSIVE CAPE HOMES BOUGHT PRIOR TO 2004 ARE NOW BRINGING IN IMPRESSIVE RENTAL RETURNS

A surprising number of Greeff Properties clients are opting now to rent out their homes rather than to put them on the market and the reasons for this, says Mike Greeff, Chief Executive of Greeff Properties, are not difficult to understand...

>> Beware the pitfalls of rent-to-own, says IEASA

With banks now insisting on large deposits before granting home loans, many buyers are looking at other purchase options, including rent-to-own agreements.

And in theory, says Dr Willie Marais, national president of the Institute of Estate Agents (IEASA), both parties to such agreements win. For the would-be seller, the advantages include...

>> Estate Agent Institute chairman says a change of attitude by banks on mortgage bond lending is now essential

How much longer will the banks remain impervious to the ongoing criticism from estate agents, homebuyers and sellers that they are wrecking the residential property industry?

This is the question many will be asking after hearing Ivan Neethling’s, Chairman of the Western Cape branch of the Institute of Estate Agents, latest report on the frustrations now being experienced by agents due to the drastically small number of bond applications being passed...

>> JZ, his wives and the president's houses

Will our machine-gun happy new president be good for property prices? What’s on the market near him; values, details.

He had humble beginnings in Nkandla, a rural village in KwaZulu Natal, but Jacob Gedleyihlekisa Zuma will soon be ensconced in palatial splendour at the Presidential residences in Pretoria and Cape Town.

The ANC president affectionately known as JZ, or just by his clan name Msholozi, will soon have to decide fast which of his five wives will become South Africa's first lady. He will be the first polygamist to head the nation.

There has been much speculation in the last few days before the elections about how he will manage his spousal situation. For example, which of the five wives is set to be the first lady? And where will they all stay...

>> Malangatana, the artist from Africa

He sprinkled water onto the paper, mopped it up a little then proceeded to draw on it in pen and red ink. A self - portrait soon emerged, some parts obscured as a result of the water.

Then the artist went on to complete the composition by writing his address around the portrait.

Anyone seeing the composition would imagine the paper was splashed by mistake – but that is not so...

>> Current downturn not much worse than pervious cyclical downswings

Residential property should be a long term investment and those who go into it for short term gains are ignoring its fundamental cyclic nature, says Tony Clarke, MD of Rawson Properties.

“Those who are complaining loudest about the recent downturn have almost always bought in the last three years,” said Clarke. “In many cases they expected values to continue to rise indefinitely and were banking on a short term profit gain. These attitudes are unwise and have always been shunned by the more mature investors...

>> Possible pitfalls in legal property documentation pointed out by Steward

Those signing a property-related legal document, e.g. a Deed of Sale, will find that they are required to initial every page and any alterations made on the page.

However, warns Lanice Steward, MD of Anne Porter Knight Frank, those doing this should be aware it is sometimes possible for the other party to the agreement to add in extra conditions or facts in the spaces that are still not completely filled in.

For example, a clause listing the fixtures and features in a home which are to be transferred with the property can very often be added to, to include items that were not originally discussed...

>> To the editor

To the editor;

Look at the above property and the influence voting had on it. The first two pictures were taken of Beira, Mozambique in 1975 and the other two pictures taken in 2007. Thirty-two years of freedom in Africa. Do I have to say more? 

From the editor;

Thank you for the pictures Hester. In the end I’m sure that most of the readers will agree with you that politics and property goes and hand in hand

To the editor;

“Buy rental insurance. If your tenant absconds you are covered for a certain period of time. I have discovered two companies that offer rental insurance: one has pure insurance and the other is a company that handles the rentals as well”  Please give me more information on rental insurance for my investment properties. Vikki Mamvura-gava, Windhoek, Namibia

To the editor;

I would like to find out what is happening with estate agent Sun Homes?

Can somebody from the institute of estate agents in Western Cape please explain.

I would really appreciate it.

Hajra

From the editor;

Hajra I’ve asked Mr. Ivan Neethling’s, Chairman of the Western Cape branch of the Institute of Estate Agents for his response.  If any of our CyberAgent users in the Western Cape or any of our readers can answer Hajra on the question please forward your answer to news@cyberprop.com

Send your viewpoints or comments on any of the articles, or questions you may have to news@cyberprop.com

>> News from Durr Plattekloof

Discover 3 Ways to Save Thousands When You Buy a Home

Cape Town – If you’re like most homebuyers, you have two primary considerations in mind when you start looking for a home. First, you want to find the home that perfectly meets your needs and desires, and secondly, you want to purchase this home for the lowest possible price.

When you analyse those successful home buyers who have the experience to purchase the home they want for thousands of rands below the seller’s asking price, some common denominators emerge.

Negotiating skills are important, but there are three additional key factors that must come into play long before you ever submit an offer.

This topic has been the subject of extensive analysis by industry experts, and a summary of their findings, and a specific step-by-step purchase plan for homebuyers, can be found in a new special report called “ Homebuyers; How to save Thousands of Rands When You Buy” 

This free report outlines the psychology of how a seller sets their asking price, and gives you 3 simple steps to follow, before you even set foot in a seller’s home, which will ensure you are able to successfully slash thousands of rands off the price of the home you want.

To hear a brief recorded message about how to order your free copy of this report, phone the Call Free number 0800 448844 and enter ID#1003. You can call anytime, 24 hours a day, 7 days a week. OR call our office 021 9111150, email ultent@mweb.co.za

>> In the area...

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

  • Germiston
  • Kempton Park
  • Pietermaritzburg
>> In the area 1 – Germiston

A strong industrial base is helping the Germiston property market to bear up well under the pressure of the current downturn.

That’s the word from Leonora Swart and Simon John Smith, principals of the Homenet offices in East Rand town, who say that while prices are down 10% to 15%, the demand for residential property is being sustained by employees of the many industrial concerns in Germiston and neighbouring Wadeville...

>> In the area 2 – Kempton Park

Estate agents in the Kempton Park property market are reporting growing confidence among buyers.

The renewed confidence is translating into better sales in the middle segment of the market, which simmered down towards the end of last year, says Francois Joubert Jnr of the local Aida Kempton Park office.

“Our agents have noted a marked increase in interest in homes in the price range between R600 000 and R900 000,” he says. Many of the new prospective buyers have been renting accommodation and have been swayed by falling interest rates to buy their own homes...

>> In the area 3 –Pietermaritzburg

Properties in Pietermaritzburg have come down in price but many potential buyers are unable to take advantage of the price cuts due to strict bank lending protocols.

So says Myandra Chetty, principal of leading local agency Homenet East who believes that the lending protocols should be re-visited, as many buyers are now “falling through the cracks” unnecessarily...

>> Focus on Tulbagh, Western Cape, South Africa

The secluded valley is well-known for its large variety of veld flowers, of which many are displayed at the annual agricultural show held late in September each year.

In 1699, during Governor W.A. van der Stel's travel in South Africa, he looked down on this beautiful valley and named it "Het Land van Waveren" after a well-known estate near Amsterdam belonging to his mother's relatives. The first white settlers of the Dutch East India Company arrived here shortly afterwards and the town of Tulbagh developed...

>> View Properties in Tulbagh
>> View Properties in the Western Cape

>> Property of the week

Tulbagh, Western Cape

Property Type : Farm
Size : 10,000.00
Description : Magnificent smallholding with spectacular views of mountains, valleys, orchards and dams. Traditional-style country house with wooden floors and thatched roofs. Building total 650 m²

Search for property in your area

Enter City/Suburb:
>> New approach in sectional title developments

Bringing sectional title experts in during the planning stage of Park Lane, a new sectional title office park in Pinelands, has paid handsome dividends for the developer.

Park Lane, which consists of two double storeys and one triple storey office block, is strategically situated just off the N2 highway next to the Vincent Pallotti Hospital.

Intersect Sectional Title Administrators, a subsidiary of Spire Property Group, were awarded the management contract and brought in right up front at the planning stage...

>> Software at its best!

The Property Manager provides you with a very extensive and detailed list of criteria which you can capture for your property listings and gives you the control to decide how you would want these properties to be displayed on the Internet

  • Manage property for sale and previously sold
  • Activate or deactivate Internet listings with immediate effect - no waiting!
  • Keep track of your On Show and On Special properties and list them on your website
  • Print and email multiple reports
  • Unlimited number of pictures
  • Keep a history database

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

For Sale Property:
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Western Cape

To Rent Property:
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Gauteng Kwazulu Natal North West Western Cape


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