Weekly Newsletter
Friday, 27 February, 2009
Property Search | Estate Agents | List your property

Edition 8 of 2009, Friday, 27 February

Dear Reader

Are we are we not? According to Cees Bruggemans, Chief Economist First National Bank South Africa could already be in a recession. What I find interesting is that Bruggmans, since June 2008, has been predicting a recession and that his views were dismissed. “I was completely on my own” he said. When will one every be right?

It doesn’t matter if you are right or wrong. What is of importance to property owners is what will happen with interest rates. Will the CPI inflation of 8.1 percent, that was above forecasts, have a negative influence on rate cuts in 2009?

Mike Schussler, T-Sec:

"An interest rate cut is likely but the lower inflation data expected tomorrow will certainly open the door for interest rate cuts.

"We have been hit by the global situation and anyone who thinks we are not in a recession is wrong. We are in one now."

Fanie Joubert, Efficient Group:

"The annual figure is in line with what we expected, but the quarterly figure is worse than expected.

"It confirms that the economy is under strain. We will have to see what the next quarter's figure will be. If it is negative again, it will mean that we are in a technical recession."

Tony Twine, Econometrix:

"I think it will accelerate a relatively rapid interest rate cut - probably before the April meeting (of the MPC).

"It is not good news for the forex markets and it is unlikely to impress several of the boards on the stock exchange."

Kgotso Radira, Investec Group Economics:

"Q4.08's GDP outcome is significantly worse than market expectation and shows that the economy is slowing at a more rapid pace than expected. The underlying trend of the production side of the economy shows that the slowdown is broad based across most sectors and we expect it to continue in Q1.09.

"The worse than expected GDP growth outcome increases the chances of an early interest rate cut as had been previously indicated by the Governor of the Reserve Bank. Clarity on this should be provided as the week progresses."

"If the SARB does cut interest rates before the April MPC meeting, we expect 100bp and 50bp at the April Meeting. The current state of the real economy does warrant significant interest rates cuts in order to avoid a long protracted economic slowdown."

Carmen Altenkirch, Nedbank:

"The economy in the fourth quarter contracted much sharper than what was expected, reflecting the impact that the slowdown in the advanced economies had on our local economy.

"It also increases the chance of an early MPC meeting being called."

What is your view point? Send it to news@cyberprop.com

Article of the week is for sure Renting 101 by Kabous le Roux. He share brilliant tips on renting a home;

  • Find a place
  • Take your time
  • Don't put up with discrimination
  • Everything is negotiable and more..

Enjoy!
The editor


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>> Real Estate news – Canadian real estate returns fall to 14 year low, says IPD & Residential property prices in the US down over 18% on average in 2008

CHICAGO, Feb. 19 /CNW/ - IPD today released the 2008 results for the ICREIM / IPD Canada Annual Property Index, which at the end of December 2008 covered C$96.5 billion of commercial real estate. The Index saw a total return for 2008 of just 3.7%, down sharply from the 15.8% recorded in 2007, and the lowest level since 1994...

>> Only 1 more week to stand a chance to win R 1000.00

If you want to be a lucky winner with Design> Magazine make sure that you subscribe now. Design>Magazine will be giving away R1000.00 for another week to one lucky subscriber. Make sure that you stand a chance to be a lucky winner by registering now. Do not miss next week's edition as we will list the names of our final 2 winners.

>> Mboweni pours cold water on rate hopes

RESERVE Bank Governor Tito Mboweni has poured cod water on talk that a special meeting of the Bank’s monetary policy commttee (MPC) is imminent, but did not rule it out entirely.

He told bankers yesterday that he had chosen his words carefully when he hinted early this month that poor economic data might prompt the MPC to convene ahead of its next scheduled meeting in mid-April...

>> South African property market recovery being hampered

The property market in South Africa has not been hit as hard as some other international real estate sectors but power shortages and lack of liquidity are hampering recovery, it is claimed.

The commercial sector in cities like Cape Town and Johannesburg shows promise with several substantial office developments due for completion in 2011, according to Colliers International...

>> Bond pitfall for home owners

Property owners attempting to cancel their bonds when they sell are finding that some banks have been “making things very difficult”. Lanice Steward, MD of real estate company Anne Porter Knight Frank Properties, says the first of banks’ new rules makes it necessary to give three months’ notice of a cancellation.

This gives rise to numerous problems, the most obvious of which is that in today’s market it may well be impossible to sell your home within three months...

>> Tata ma chance!

(Legal rulings) DURBAN (February 20) - What does a homeowner do when the bank issues a summons because the homeowner is in arrears with bond payments?

Well, advises Durban Attorney Seig Heiriss in one his regular market briefings, he can raise a defence that the homeowner is “over-indebted” and ask for relief as provided in the Credit Agreements Act.

But, Heiriss warns, it is not that easy and the homeowner may just end up “taking a chance”.

In two separate court decisions [both hot off the press, February 2009 judgements], one here in Kwazulu-Natal

[http://www.saflii.org.za/za/cases/ZAKZHC/2009/3.html ]

and one of the Witwatersrand High Court

[http://www.saflii.org.za/za/cases/ZAGPHC/2009/22.html ],

the Court rejected the homeowner’s request for relief from over-indebtedness and granted judgement for the bank against the homeowner.

Article from: www.rodneyhayter.com

>> Over-commitment still a problem for many over-ambitious young homebuyers, says Greeff

Traditionally, says Mike Greeff, Chief Executive of Greeff Properties, young people who wanted to get into home ownership started in humble, low cost homes, often in unfashionable areas. They then sold them after five or six years later and moved up to something more expensive, repeating the process again several years later.

“That has been the pattern, the trend for most of my life - but in the last decade we have seen a new breed of buyer come onto the market, the type who cannot wait and “wants it all” right now...

>> The Players GC - Get n grip get a golf membership

The Players GC is offering you the change to enter the wonderful world of golf and get all the benefits you need as a golfer without having to outlay thousands of Rand's to get it.

Benefits of membership include:

  • An official National Golf Network golf handicap card and official handicap
  • Discounted affiliated rates at courses due to SAGA affiliation. (saving you between R50 to R200 per round)
  • 2 Complimentary lessons with a PGA professional in your area worth R350
  • A free subscription to Universal Golf ezine
  • 4 Strokesaver distance guides of golf courses in your region worth R120
  • Monthly newsletters with competitions, getaways, golf tips and discounts on golf equipment

Value added services

We at The PGC do not only provide golfers with a cost effective alternative to get all the benefits they need as golfers, but also provide our members with value added services exclusive to The PGC.

These services include the following:

  • Members are welcome to email or fax scores through to us that they were unable to enter due to unforeseen circumstances and we will submit those scores to avoid the unpleasant experience of a penalty calculation which normally has a big affect on your handicap as well as handling all related queries regarding your handicap.
  • As a PGC member you will have the luxury of contacting us with any golf related query and we will personally do everything in our power to assist you in any way possible

We can offer you this incredible golf membership for only R1199 per year a R200 discount on the normal rate.

And Even more

Join from now till the end of the March and stand a chance of entertaining 3 of your friends or clients by winning one of 4 four balls at a prestigious golf course in your area worth R1800 per four ball.

To take up this incredible offer contact Neil De Bruyn on 011 998 2999

Or visit www.theplayersgolfclub.co.za and complete an online application form.

>> Problems await the landlord who delays maintenance or employs cheap contractors, say Indawo spokesman

The tight conditions now being experienced by property owners - including many who own multi-million rand buildings - have resulted in “a fairly large percentage” delaying or even totally neglecting the maintenance of their properties. So says Graham Hartle, Sales and Marketing Manager of Indawo, one of Cape Town’s largest painting, refurbishment, waterproofing and asbestos removal companies.

The tough conditions, adds Hartle, have also seen a proliferation of unreliable, untrained, fly-by-night contractors handling maintenance work. Some of these, he says, have had absolutely no previous experience in this field...

>> Renting 101

Along with decreased affordability of property, the stringent requirements of the National Credit Act and banks' recently developed aversion to 100 percent mortgages, renting the flat or house you live in gained favour amongst many people in the last few years.

In addition, falling home prices and the expectation of further declines have swayed many would-be buyers to rent while adopting a wait-and-see attitude...

>> How to find a bargain

Each day another headline tells us just how bad the property market is, but loads of savvy investors are piling in and picking up bargains in this period of weakness.

So, how do you find a property bargain?

Ben Seymour-Brown, manager of group direct sales for ooba (formerly MortgageSA), suggests home hunters follow these five tips...

>> Smart Living

The idea of home automation can be daunting if you have never seen a centralised system in action. But rest assured, once you get used to it, you won’t want to live without it.

Taking the effort out of eco-consciousness, while making your life a whole lot easier, home automation brings with it a host of benefits. You save on time and energy consumption, enhance your lifestyle and gain more peace of mind in one fell swoop. When considering this leap into the automated world, though, it’s best that you consult specialists in the field of home automation to guide you through the minefield of what can and can’t be done. In the long run, using knowledgeable experts will give you consistent savings that will offset the initial outlay, with far greater convenience...

>> To the editor

UNIQUE AND POPULAR CAMPS BAY CENTRE BOOMING

The trendy and popular landmark retail centre of Isaacs Corner, located in a unique location on Camps Bay beachfront, is proving to be a firm favourite of regulars to the area and the centre recently attracted Billabong as a tenant, who opened their doors in November 2008.

Spire Property Management, who manage the centre on behalf of Thynk Property Partners, explain that this prime seafront development has a restaurant/leisure focus, and tenants include Col’Cacchio Pizzeria on the first floor, with Vida e Caffee, Kauai and now Billabong on the ground floor.

Thynk Property Partners re-developed the property situated at 55 – 61 Victoria Road with work being completed in October 2007 for tenants to open for trade over November & December 2007.

The building was previously owned by a well known Capetonian, Mr Philip Isaacs, who was recognized in the Guinness Book of records as the world’s oldest practicing pharmacist. Isaacs acquired the building in 1946 for 3,500 pounds, and ran a pharmacy from the premises whilst living above in the apartment. In 2003, at age 98 Isaacs retired and passed away a year later. The property was then sold on auction in November 2005.


“This is a wonderful property in a high-profile, upmarket area and Spire are thoroughly enjoying managing the contract” says Marc Edwards, general manager of Spire.

According to Leon Quenet, CEO of Thynk Property Partners, who developed Isaacs Corner, the centre is enjoying growing popularity thanks to the dynamic tenant mix combined with the properties prime location.

“We have enjoyed every part of getting Isaacs Corner off the ground, from the projects inception right through to the centres inaugural opening day. I think Philip Isaacs would have been most pleased with the buildings metamorphosis.”

By Spire Property Management on Isaacs Corner - a trendy retail centre in Camps Bay

>> News from – Chas Everitt International Property Group

Chance to buy a piece of top resort

Woodridge Country Estate in Kwa-Zulu Natal has recently received approval to construct a sectional title development within the estate borders, thereby providing investors with the opportunity to own property on the estate.

Located in the heart of the KZN midlands next to Michaelhouse school and overlooking the beautiful Balgowan valley, Woodridge Country Estate offers four-star accommodation and facilities and is a favourite for conferences and weddings...

>> In the area...

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

  • Melkbosstrand
  • Port Elizabeth
  • East London
>> In the area 1 – Melkbosstrand

MELKBOSSTRAND RETAINS IT CHARM – AND HOLDS ITS PRICES

Residential property prices in the Cape West Coast town of Melkbosstrand have proved to be far more resilient than those of most towns, not only in the Cape but throughout South Africa, says Lynette de Lange, who is one of three agents serving the Dave and Ann Marie Evans-owned Rawson Properties franchise which serves Melkbosstrand, Duynefontein and Riebeeckstrand...

>> In the area 2 – Port Elizabeth

Cash buyers come to the fore in PE

Cash sales are coming to the fore in Port Elizabeth in evident reaction to stringent bank lending restrictions.

Dave Summerton, principal of leading city agency Homenet Summerton, says many buyers are going the cash route to capitalise on the next market turnaround and that up to 66% of purchases being made in some areas are now cash purchases...

> In the area 3 – East London

East London market shaping up for recovery

The East London property market appears to be shaping up for recovery, possibly sooner than many other areas of South Africa.

That was the good news spelled out by Gerhard Kotzé, CEO of the ERA South Africa property group, at the official opening of the ERA Buffalo Regatta this weekend, when he drew parallels between the regatta and the property market in the greater Buffalo City area...

>> Focus on Umhlanga, KwaZulu Natal, South Africa

Umhlanga is one of the most popular beach resort destinations on the east coast of South Africa. The bathing is safe and the warm Indian Ocean waters wash one of the most beautiful coastlines in the world.

Situated just north of Durban with the golden sandy beaches that stretch northwards for more than 200 kilometres, all the way to the spectacular Greater St Lucia Wetland Park. Inland endless fields of sugarcane give way to the tumbling area of the 1000 Hills.

>> View Properties in Umhlanga
>> View Properties in KwaZulu Natal

>> Property of the week

KwaZulu Natal, Umhlanga Rocks

This beautiful apartment is in the very heart of one of South Africa’s most popular holiday destinations. It has magnificent 180-degree sea views and overlooks the Umhlanga Lighthouse and world-renowned bathing beaches...

Bedrooms: 3
Bathrooms: 3
Garages: 1

Search for property in your area

Enter City/Suburb:
>> Route 62 leads foreign buyers to Montagu

Montagu on Route 62 in the Western Cape’s Klein Karoo has become a favourite destination among overseas property buyers.

Johan Gous of the local Aida estate office says the town’s position between the Keisie and Kinga Rivers on Route 62, SA’s scenic version of America’s famous Route 66, gives it great exposure among local tourists and international visitors...

>> Offering from Webmail

>> Software at its best!

Cell Phone enquiries from the public

Buyers driving past your advertising boards will be able to see an unique Internet Number allocated to the specific property. They will then SMS that number to 35476 and will receive an SMS back with all the details of the property. At the same time the agent / agency will also be informed of a potential buyer. How's that for technology working for you! The cost - mahala! Free to all CyberAgent subscribers.

Here's a diagram on the way this process will work...

  1. Agent captures the details of the property and pictures into CyberAgent
  2. Agent updates the property to the Internet
  3. The Internet server sends back a unique number for that property
  4. Agent puts up his "For Sale" board together with our SMS board
  5. Potential buyer sees the "SMS" board and SMS's the unique number to the Internet server
  6. The Internet server sends back an SMS with all the property details and a link to the website where he/she can view pictures on the propert

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:
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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