Weekly Newsletter
Friday, 26 September, 2008
Property Search | Estate Agents | List your property

Edition 37 of 2008, Friday, 26 September 2008

Dear Reader

Wikipedia Encyclopedia refers to politic as the process by which groups of people make decisions. The term is generally applied to behavior within civil governments, but politics has been observed in all human group interactions, including corporate, academic and religious institutions.

If the US property market can affect foreign market can politics in South Africa have an affect on the property market?

My answer is yes. Both social economic and political influence are significant factors that can have an affect on the property market. The insecurity of property rights slows growth in unequal or otherwise polarized societies. Furthermore, if a government commits over the long run to redistributive and secure policies it definitely incur less risk of slowing economic growth which on the other hand plays a major role in the property market.

However in my opinion it is not these factors that plays a role directly but it is the media. The media have a tremendous impact not only on the prices of property but also on prospective buyers. What people read in the newspaper and hear on the television often becomes the focus point and does influence their decisions. A negative headline can for sure influence a persons willingness to buy.

What was the result of the last weeks political situation on the property market in South Africa? In answer to this question I found three articles that could help you in answering this question;

  • Presidential politics & property investments
  • Economists take Mbeki’s exit in stride
  • Politicians won't move property market yet

People will go to extremes to sell their property. Read what a British businessman who has found it difficult to sell his home did; Can't sell your house?

Last week's letter to the editor; I signed an offer to purchase a property last year. The deposit was paid, and bond granted. Now the attorneys contact me to say that the deal has been cancelled, but NO REASON has been given. They are also not responding to my requests for a reason. In response to this letter several readers wanted to know if a written request was handed to the attorney as that is always the first thing to do.

Enjoy!
The editor


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>> Real Estate News - Will Africa ever own her share of space?

News of a difference..

Over the years, space exploration has yielded diverse interests globally.
Now scientists endeavour to bring to earth new findings about the outer space and its untapped potential, which potential has given rise to a debate and scrabble for the real estate in the sky.

At the centre of the debate is the geostationary orbit located 35, 900 kilometres directly over the Equator.
Because the rotational period here equals that of the earth, objects appear stationary over a fixed point when viewed from the earth’s surface.

>> Presidential politics & property investments

Realestateweb reporter 22 September 2008 Moneyweb

Some estate agency bosses say the firing of President Thabo Mbeki is less important than interest rates.
After a series of blows to consumer sentiment since the start of the year, the big question on many estate agents' and property owners' lips is whether the weekend axing of President Thabo Mbeki will be good or bad for the market.
The residential sector has taken a battering this year, with an estimated 20 000 estate agents leaving the market amid plummeting sales' volumes and as property prices have ticked downwards.

>> Economists take Mbeki’s exit in stride

Cape Town - Economists have downplayed the impact on markets of the dramatic news that President Thabo Mbeki would exit the presidency early, saying local investors were far more worried about the US banking crisis.

While there was uncertainty over the composition of a caretaker government, there was no new cause for concern about policy continuity.

Others even argued that it was becoming more likely that under a new presidency there would be no dramatic policy departure.

Arthur Kamp, an economist at Sanlam Investment Management, said that while the rapid change in political leadership announced over the weekend was "not unimportant", there had been no change in policy for the markets to digest.

>> Politicians won't move property market yet

FNB's John Loos says residential market has "bigger fish to fry", in assessment of recent events.
The recent change of guard at the helm of South Africa Inc. has rattled people - and is "unlikely to change an already deteriorating residential market trend", according to FNB Home Loans' property strategist John Loos.

He believes dramatic political events which have seen low-profile politician Kgalema Motlanthe being named as next President and Cabinet Ministers resigning en masse have caused a "stir" but will not have a significant impact on residential real estate.

In a report issued on Thursday he said: "Insofar as such events create negative sentiment in and towards the country, they are potentially negative for residential property performance."

The direct impact, said Loos, can be in the form of higher emigration rates from sensitive "suburban" markets, which are still dominated by the three minority population groups.

>> THE OUTLOOK FOR SA RESIDENTIAL PROPERTY PROVIDED INTEREST RATES DO NOT RISE

by Anne Porter Properties

A recovery could occur by December, says Steward.

 Lanice Steward, MD of the Claremont based agency, Anne Porter Knight Frank, has already said in a public release that there is surprising resilience in the SA residential property market, that sellers are showing a greater sense of realism and are coming round to accepting the 15 to 20% price falls of the last year.

>> SA's recipe for a property shortage
There's excess stock in the market, but that's only for now. A property logjam is looming - estate agency boss

Gerhard Kotzé, chief executive officer of the ERA South Africa property group, warns that a potential shortage of property stock is brewing with major implications for property values and investment returns down the line.

This may be difficult to imagine given current market conditions, there are early indicators that such a scenario is in the making.

>> Changing the face of SA's pale, male property industry

A serious review of laws is needed to stimulate the property market and encourage first-time buyers.

This is the view of Jeanne van Jaarsveldt, financial director of ReMax of Southern Africa, who said he would like to see the current threshold on payment of transfer duty to kick in on sales above R1 million. This should be accompanied by meaningful tax breaks for first-time buyers...

>> Office rentals rock

Soaring building replacement costs are pushing up office rentals and they are forecast to go higher, partly due to demand in line with the current low vacancy rate. In terms of rentals, A+ grade offices in Gauteng lead the pack, followed by Cape Town, Pretoria and Durban.

As a result of these low vacancies, says the latest Rode Report, many tenants signing new leases find themselves entering into contracts at market rental rates close to or in excess of the rental rates required to make new office developments viable. "To make a new office development work," says the report, "a developer would require a gross market rental of approximately R140 m²/month."

>> How to decide where to buy

Anyone who has ever house hunted is familiar with the feeling of entering a home and thinking: “This is it”.

However, says Homenet CEO Martin Schultheiss, while instinct plays an important part in a purchasing decision, it’s important to try and remain objective about the area in which it’s situated. A dream home could quickly become a white elephant in a declining neighbourhood.

“In this context, an experienced estate agent will be able to impart useful information that should indicate an area’s prospects.

>> Weigh up purchasing options first

Buying a property as an individual is the simplest and cheapest method but a
growing number of people are opting to purchase a property in other legal
entities due to the greater protection offered.

However they should tread carefully and consider the pros and cons -particularly involving tax - of each type of entity before deciding which best suits their needs.

"Buying in your personal capacity involves a simple registration process and negates the added administration of operating a legal entity, which may involve auditors, financial statements and resolutions. Another bonus is that transfer duty is charged at a lower rate. The downside, however, is that the property will form part of the individual's estate and will be available to creditors in the event of insolvency."

>> Some ideas for a ‘now’ sale

If your job or life circumstances give you no choice but to sell your home in the current market, and you really need to sell soon, you are going to have to go “above and beyond” to find a buyer.

So says Dr Piet Botha, chairman of the Nationlink estate agency group, who advises that to start with, you will need to think and act like a salesperson, and separate your emotional attachment to your home from your financial interest in your family's largest asset.

>>IT IS STILL DIFFICULT TO GET AN INDICTMENT ON A NEW BUILDING LIKELY TO OBSCURE YOUR VIEW

As a result of recent court rulings, the perception has grown in the South African property market that a property owner is entitled to enforce his “rights to a view” as part of his general property ownership privileges - but this is not so, says Mike Greeff, Chief Executive of Greeff Properties.

“This fact is important to note,” he said recently, “because there is still a small handful of people who are buying houses in the belief that their view can be protected in perpetuity.”

>> Retirement Living

Words: Louise Mitchell

Picture it – swimming pool framed by manicured lawn, tennis court sporting a smiling foursome, spacious bedrooms and en suite-bathrooms, lush fairways, evening entertainment, healthcare facilities, spa, Wi-Fi, and well-trained staff to respond to your needs. Don’t get confused: this isn’t the brochure for a Caribbean holiday resort; it’s the one for the luxury retirement complex.


>> To the editor

From the reader:

Dear Sir / Madam,

SECTIONAL TITLE MANAGING AGENCY

 For my personal experience, there is an outcry from investors in this market sector. Reason being that, 90% of people that I have consulted, seem not satisfy with the way the existing managing agency , especially in Gauteng Province do not have interest at heart that these investors are building a legacy for their generation to come, by letting the status of their investment (property) to diminish.

>> News from - Paddocks

In this article Prof. Paddock summarizes the financial, physical and administrative duties of the body corporate for which trustees are responsible.

Each scheme must have a body corporate that is responsible for “the control, management and administration of the common property for the benefit of all owners”, and for the enforcement of the scheme’s rules. This is laid down in section 36 of the Sectional Titles Act of 1986.

>> GBCSA gears up to do green building rating assessments

The Green Building Council of South Africa (GBCSA) is currently laying the groundwork in order to commence the rating of buildings in terms of its Green Star SA rating system.

“The Green Star SA ‘Office’ rating tool aims to be finalised by November, and people wishing to have their buildings rated for Green Star SA certification will then be able to submit applications to the GBCSA,” says Bruce Kerswill, Executive Chair.  “The ratings are a strictly objective, transparent process, and are conducted by independent assessors.  Applicants will submit detailed documentation according to requirements set out in a Technical Manual.”

Focus on Mafikeng, North West, South Africa

Mafikeng

Mafikeng, North West, South Africa

Mafikeng, situated next to Mmabatho, the vibrant provincial capital of the North West Province and has an interesting history, rich culture and wildlife variety.

Mafikeng is situated next to Mmabatho, the vibrant provincial and commercial capital of the North West Province. It is a town with an interesting history, rich culture and wildlife variety.

The name Mafikeng (Mahikeng) means "The place among the rocks". This name was given to the area by early Barolong chiefs who had settled along the Molopo River near the present day village of Rooigrond after a period of intertribal war.

>> View Properties in Mafikeng
>> View Properties in the North West

>> Property of the week

Mafikeng, North West

Ongelooflike huis op Golf Estate. Gaste en hoofslaapkamers het eie badkamer. Al drie badkamers het elk 'n bad en stort, waarvan 2 spa-badens is. Daar is elektroniese besproeiing met 'n boorgat. Die leefarea in die huis het 'n sentrale lugversorging en die hoofslaapkamer het sy eie. Die huis het 'n fairway uitsig. Daar is ook 'n bubble garage en 'n wendy hut. Op die stoep is daar 'n ingeboude braai en in die tuin ook 'n oop boslapa met vuurmaakplek.

Bedrooms: 4
Bathrooms: 3
Garages : 2

Search for property in your area

Enter City/Suburb:
>> BetterBond's tips to home buyers and sellers

London - A British businessman who has found it difficult to sell his luxury mansion because of the credit squeeze has thrown in his Lamborghini sports car with the offer, it was reported on Thursday.

Rick Hill, 30, hopes that the extra attraction will appeal to a wider range of buyer, who will be asked to pay 1-million pounds (US$1,85-million) for the home and 150 000 pounds for the yellow Lamborghini.

Estate agents said Hill had the novel idea of including his car in the deal after conventional attempts to sell his luxury property, which boasts an indoor swimming pool, led nowhere. - Sapa-dpa

www.iol.co.za

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For Sale Property:
Eastern Cape Freestate Gauteng Kwazulu Natal Mpumalanga North West Northern Cape Limpopo
Western Cape

To Rent Property:
Eastern Cape
Gauteng Kwazulu Natal North West Western Cape


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