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Weekly Property News
28 October 2011
FROM THE EDITOR

Dear Reader

An interesting survey was done; the survey asked real agents to place the areas that they serve into one of four categories, i.e. High Net Worth areas (average price = R4.8m), Upper Income areas (average price = R2.7m), Middle Income areas (average price = R1m), and Lower Income areas (average price = R720 000). Which segment do you think was rated at the top?

Headlines: The government should cut interest rates trade union Numsa said on Wednesday. With this they should also bring back capital controls.

What some of the experts had to say about interest rate cuts;

An interest An interest rate cut next Tuesday from the RBA is close to certain. The low inflation result for the September quarter should give the RBA plenty of confidence that its restrictive policy stance of the last year, in combination with the most dramatic fiscal tightening Australia has ever seen, will see inflation stay at or even fall below the middle of its 2 to 3 per cent target range. Stephen Kououlas - Interest rate cuts set to begin

The South African residential property marketing sector will benefit “perhaps far more than most people realise” from a further 0,5% drop in the interest rates, says Tony Clarke, MD of Rawson Properties – and he expects this to come after the next Monetary Policy Committee meeting. What is more, he says, on the figures now being discussed by SA’s economists, right now is very definitely the right time to introduce a further rate cut. Further interest rate cut likely

Market news:
"Former black townships" continue to outperform other value bands significantly in terms of house price growth, according to FNB Home Loans. The most affordable sub-segment of the affordable part of the major metro market is the so-called "Former Black Townships". Of the houses transacted in major metro townships, the average estimated price was R265 113. It would thus come as little surprise to see our Major Metro Former Black Township House Price Index outperforming the rest, growing year on year by +10.3 percent in the third quarter.  Township property is booming

Enjoy!
The editor

In This Issue
Featured Property


Krugersdorp, Gauteng, South Africa
Commercial
495.00
Grate forl attorneys with ample parking. The Property is situated in a quiet street in the central business area of Krugersdorp.

CyberProp Property Count: 21/10/2011

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Properties for Sale: 144,097
Properties to Rent: 10,729

Local News

Interest rate cuts set to begin

An interest rate cut next Tuesday from the RBA is close to certain.

The low inflation result for the September quarter should give the RBA plenty of confidence that its restrictive policy stance of the last year..


Further interest rate cut likely

The South African residential property marketing sector will benefit “perhaps far more than most people realise” from a further 0,5% drop in the interest rates, says Tony Clarke, MD of Rawson Properties – and he expects this to come after the next Monetary Policy Committee meeting.


Know your levy commitments

The "middle income" segment is depicting the most solid "fundamentals of the suburban markets" according to FNB's estate agent survey.


Optimistic about the current market

While the property market is still a long way off from where it used to be, Peter Gilmour, Chairman of RE/MAX of Southern Africa, is still optimistic about the current market.


Township property is booming

"Former black townships" continue to outperform other value bands significantly in terms of house price growth, according to FNB Home Loans..


Commercial property managers keep schemes viable

The very difficult conditions now being experienced in the commercial property sector have shown more clearly than ever before how vital the property manager is in keeping the landlord-tenant relationship alive and well, says Tony Clarke, MD of Rawson Properties and the director in charge of Rawsons’ new commercial property franchise division.


SA property investors now turning to buy in cash as banks remain reluctant to lend

It seems there is a growing trend, in the USA and SA, for commercial property investors to increasingly opt to pay cash for properties due to the recalcitrant attitudes of local banks to lend money as the credit crunch continues to linger.


Electricity the biggest cost in property

Electricity not only remains the single biggest operating cost contributor, but the rate at which it is growing is also the highest


Stress testing bond applicants

THE LOGIC OF ‘STRESS TESTING’ BOND APPLICANTS ESCAPES HIM, SAYS RAWSON FINANCE NATIONAL MANAGER


Get qualified help with contingency clauses

Although it’s not ideal, there are times when home sellers are more inclined to accept offers to purchase from buyers who still have to sell their existing homes.


Counter-offers can result in original offer becoming invalid

Sellers of residential property, says Lanice Steward, MD of Anne Porter Knight Frank, do not always realise that if they try to raise a buyer’s price by making a formal counter-offer and write this into a proposed deed of sale for the buyer and if the buyer then rejects their suggested price, in most sale agreements the original offer falls away and becomes null and void.


Attracting buyers to your home

With buyers spoilt for choice in the current market, sellers will have to up their game to make their home stand out from the rest, says Adrian Goslett, CEO of RE/MAX of Southern Africa. He notes that aside from the correct pricing of a home, creativity is key to attracting potential buyers in today’s tough and competitive real estate market.


Know your levy commitments

Levies are unavoidable when you own Sectional Title property, so you need to plan for them from the beginning and make sure you can afford them in addition to your home loan repayment.


If you employ more than one agent you could end up paying double commission

Despite fairly considerable coverage in the media regarding the possibility of property sellers having to pay double commissions, instances still crop up regularly where the seller has found himself forced to do this.


 

Focus On

Jeffrey's Bay Eastern Cape, South Africa

Holidaymakers first began to flock to this lovely shore after a trading store was set upper Jeffrey in 1894. It has since developed and blossomed into the delightful holiday and retirement centre it is today, and has expanded to include Aston Bay, Kabeljous-on-Sea township and Paradise Beach, and still within a short drive to Port Elizabeth.

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


Search For Properties

1. Western Cape
2. Garden Route
3. Northern Cape
4. Eastern Cape
5. KwaZulu Natal
6. Free State
7. North West
8. Gauteng
9. Mpumalanga
10. Limpopo

Search for property in your area

Enter City/Suburb:

In the Area

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

  • Alberton
  • Cape Town
In the area 1 - Alberton

Established as a residential suburb 106 years ago, Alberton, which is situated on the East Rand of Gauteng, is a popular community that is close to the Johannesburg CBD and that enjoys good access to the city’s major highways and byways..



In the area 1 - Cape Town

Cape Town city council has scrapped plans for an innercity double carriageway - on land proclaimed for road development in 1973 - unlocking more than a hectare of property for development.


To the editor

Share your comments with us by sending it to news@cyberprop.com


Local news continue

Consumer Protection Act and tenant's rights

The City of Cape Town has received 16 public submissions on the proposal to rename Western Boulevard after Helen Suzman, with the majority giving the suggestion the thumbs up, but roughly a third calling it "political, a waste of resources and a misplaced priority"...


Propell arranges seminars for trustees

Trustees in sectional title schemes often do not understand the significance of their role and how their lack of knowledge can ultimately have a detrimental effect on the scheme they are responsible for, says Catherine Cockcroft, sales manager of Propell, the levy funding company


Establish exactly when the buyer takes responsibility for a property

CLARIFY THE DATE AT WHICH THE OWNERSHIP RISKS PASS TO THE BUYER – OR RISK LOSING OUT

It is, says Sean McCauley, important that both the seller and the buyer of a property establish exactly when the buyer is liable for all the risks on that property once the deal is set in motion.



Amendments to the Sectional Titles Act

Recent welcome amendments to the prescribed management rules, Annexure 8 of the Sectional Titles Act of 1986, were published in the Government Gazette in September 2011.



Green building

Last Chance to Register for our Convention & Exhibition

The upcoming Green Building Council Convention & Exhibition is shaping up to be something rather special…

CyberAgent, the real estate software solution

CyberAgent Anywhere Introduction Video

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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