Weekly Newsletter
Friday, 29 May, 2009
Property Search | Estate Agents | List your property

Edition 21 of 2009, Friday, 29 May 2009

Dear Reader

Thank you! The SA Reserve Bank cut the repo rate by 100-basis-points to leave prime at 11 percent. This cut will for sure bring a relief to homeowners and also the consumer. Be warned! There would be no further significant rate cuts was the advice from the SARB Governor Tito Mboweni.

The rate cut was not the top story this week. The fact that South Africa is now in a recession, the first in 17 years, stole the lime light this week. The finance and real estate industry, which makes up a fifth of the economy, dropped an annualised 2.3 percent in the first quarter, compared with 3 percent growth in the previous three months. South Africa Falls Into First Recession in 17 Years

What’s happening around the world? Slowing economic activity and a credit crunch contributed to a decline in housing activity, prices and construction in most major economies. South Africa experienced the biggest drop in property prices in two decades in April as the economy moved towards recession. Due to low consumer confidence, soaring unemployment and challenging credit conditions which limit access to financing, the housing sector will face further stress especially as interest rates continue to be high in real terms. The State of Real Estate Around the World: No Signs of Stabilization?

The household sector, plagued by lower levels of employment and declining real disposable income, was expected to continue experiencing financial strain this year, Absa said on Monday. This was in spite of declining interest rates, according to senior property analyst Jacques du Toit. House prices under strain

Book review by Bev Hermanson from:

Title: The Long Emergency
Author: James Howard Kunstler

You may wonder what this alarmist book has to do with property development in this country. It is written in an emphatic style and is, from cover to cover, a long wail about what American society could be facing. However, it’s a sad fact that when America sneezes, the rest of the world catches a cold. And as we subscribe to modern living in our cities, we would be well advised to take note of some of his points, as they relate to our state of being just as much. Trying times for suburban development

Enjoy!
The editor


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>> Real Estate news - South Africa Falls Into First Recession in 17 Years

May 26 (Bloomberg) -- South Africa’s gross domestic product contracted in the first quarter, pushing Africa’s biggest economy into recession for the first time in 17 years as manufacturers and miners scaled back output and fired workers.

GDP fell an annualized 6.4 percent, the most since the third quarter of 1984, after declining 1.8 percent in the final quarter of 2008, Statistics South Africa said in a report released in Pretoria today. Economists surveyed by Bloomberg had forecast a 3.9 percent drop in output...

>> The State of Real Estate Around the World: No Signs of Stabilization?

Today we take a look at the health of residential and commercial property markets around the world. Slowing economic activity and a credit crunch contributed to a decline in housing activity, prices and construction in most major economies. Eastern Europe and the Baltics, as well as the U.S. and UK, have endured some of the sharpest declines. In many countries, not only in the U.S., the bottom of the property markets still seems far off, with sales, prices and starts forecast to continue declining, albeit at a slower pace, through much of 2009...

>> How SA's property prices rank

The global housing market is likely to remain under intense pressure for the remainder of 2009, according to the Knight Frank Global House Price Index Q1 2009 report, released on Tuesday.

Lack of credit, uncertainty about the shorter-term future, especially the financial security and in some markets, oversupply and the cumulative effects of many years of strong house price growth has been blamed for the pressure seen in the global housing market. However, despite the sombre news there were still markets where house prices rose...

>> Rate cut brings debt relief for homeowners

JOHANNESBURG - The cut in the repo rate on Thursday will provide debt relief for homeowners and consumers, the Pam Golding Property group said in a statement.

Earlier, the Monetary Policy Committee of the SA Reserve Bank trimmed the repo rate by 100 basis points to 7.5 percent...

>> Cautious on rate cut

The cost of living for South Africans is soaring, but the lack of economic growth might not prompt the drastic cuts in interest rates needed to help long-suffering consumers, economists said yesterday.

This followed the release by Statistics SA of consumer price index data, used by the Reserve Bank for its inflation target, which revealed an increase of 8.4 percent in April 2009 compared with the previous year...

>> SA liquidations move above 1 350 mark year-to-date

The number of liquidations in South Africa surged by 41,3% year-on-year in April to 349, increasing to 1 357 the number of liquidations that have occurred between January 1 and April 30.

Overall, the total number of liquidations rose by 45,3% when compared with the same four-month period last year.

Statistics South Africa said on Monday that the increase in the number of liquidations for the period was the result of a 48,2% increase in voluntary liquidations, from 827 to 1 226, as well as a 22,4% rise in compulsory liquidations, from 107 to 131...

>> House prices under strain

The household sector, plagued by lower levels of employment and declining real disposable income, was expected to continue experiencing financial strain this year, Absa said on Monday.

This was in spite of declining interest rates, according to senior property analyst Jacques du Toit.

In the first quarter of 2009 nominal house prices declined on a year-on-year basis for the first time since late 1986 while in real terms (after adjustment for the effect of inflation) prices dropped over a wide front as a result of inflation trends and declining nominal prices, he said...

>> Trying times for suburban development

Book review by: Bev Hermanson
Title: The Long Emergency
Author: James Howard Kunstler
Produced by Grove Press, New York

You may wonder what this alarmist book has to do with property development in this country. It is written in an emphatic style and is, from cover to cover, a long wail about what American society could be facing. However, it’s a sad fact that when America sneezes, the rest of the world catches a cold. And as we subscribe to modern living in our cities, we would be well advised to take note of some of his points, as they relate to our state of being just as much...

>> Current Cape residential property market is playing into the hands of the bargain hunters, says StartProp Chairman

If you have spare cash or are one of those relatively few people who still has access to bond finance, the Cape rent-to-buy market is now offering bargains that, it can confidently be predicted, will not be repeated for years to come.

This was said recently by Ivan Neethling, CEO of Startprop, the independent estate agency that focuses on homes in the lower middle and lower bracket areas...

>> Demand still strong in Northern Suburbs

The property markets of Cape Town’s Northern Suburbs are performing well under pressure.

That’s the news from Charl Louw, principal of the local Chas Everitt International branch, who says that demand for property in areas such as Durbanville, Bellville North and Century City has remained relatively high and that good prices are still being achieved...

>> First "Green Shoots" of an upturn in Cape residential property now evident, says Greeff

Cape real estate agents, says Mike Greeff, CEO of Greeff Properties, have been so criticised for voicing positive forward-looking views on the residential property market that he is reluctant to “stick his head above the parapet” on this subject – but he said, it has to be reported that there are now signs that the sorely needed recovery is on the way.

Greeff bases his optimism on the fact that his company’s March and April sales figures were 38% and 53% up on those of the same months in 2008...

>> Residential - Is it better to rent or buy?

Piet van der Walt, Managing director of Sanlam Home Solutions shares his views on buying versus renting property.

The recent turmoil in housing markets worldwide coupled with increasing mortgage stress locally has many potential home owners wondering whether to buy or rent?

This debate is not something new and while there are definite long-term advantages of owning your own home, not everything is a bed of roses...

>> Rental tax deductions

David Warneke. Tax expert explains whether you can claim a tax loss if your rental property doesn't cover the bond.

Question

If we have a property and we are currently renting it out but the rental is not enough to cover the bond, can we claim for a tax loss from the taxman for the shortfalls...

>> Madiba visits 'treasured' home

Former president Nelson Mandela on Wednesday returned to the house in Alexandra where he once rented a room, the Nelson Mandela Foundation said in a statement.

Mandela had rented a back yard room at the house as a young man in 1941, the foundation said...

>> Sophisticated self storage development goes ahead in Tokai

SA Self Storage Investments (“SASSI”), the fastest growing self storage company in South Africa today (and destined to be the biggest by mid-2011), is developing a new R40 million state-of-the-art facility on a strategic site at Tokai.

This project is a joint venture between SASSI, Faircape, Acucap and Nedbank Corporate Property Finance (Cape). Faircape are handling the construction...

>> News from Iafrica

Property need-to-knows Part 2

This is part two of a two part series (read part one) in which Gawie Venter discusses eight things you must know before buying or selling property…

Financing mistakes can sink a deal

Financing property in the wrong way will make you pay more in the long run and can put unnecessary strain on your cash flow...

>> News from Dale Capital


Dale Capital, the new owners of the Shelley Point Hotel, country club, spa, gymnasium, golf shop and related facilities have announced that they are going ahead with the building of a second accommodation block.

DALE CAPITAL WILL SELL HALF THE SUITES AT NEW SHELLEY POINT HOTEL

Suites will go into a rental pool with a guaranteed return

Dale Capital, the new owners of the Shelley Point Hotel, country club, spa, gymnasium, golf shop and related facilities announced this week that they are going ahead with the building of a second accommodation block, very similar in style and size to the first, newly-completed block. This means that by May 2010 the Shelley Point Hotel will have 88 suites...

>> In the area...

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

  • Wapadglen
  • Auckland Park
  • Amanzimtoti

>> In the area 1 – Wapadglen

Demand for sectional title units in suburbs east of Pretoria is climbing once more.

This is the news from Nelis Bezuidenhout of the RealNet office that serves Wapadrand, Faerie Glen and Garsfontein.

“Activity has increased in the past few months, no doubt spurred by the latest interest rate cuts, and sales are up despite many potential buyers being kept out of the market by the fact that the banks now require deposits of between 10 and 15% and are no longer advancing loans for transfer costs...

>> In the area 2 – Auckland Park

Buy-to-let investors are beginning to take an interest once more in Auckland Park, which is one of Johannesburg’s prime spots for student accommodation.

So says Lewis Kennett, sales agent for leading local agency Homenet/ Harcourts Jon Rosenberg, who notes that investor interest has been rekindled by the fact that entry-level bachelor lofts in the area are now being marketed for around R350 000...

>> In the area 3 – Amanzimtoti

Cash buyers are having a field day in Amanzimtoti on the popular KZN South Coast.

“There are bargains galore in all property classes and price ranges but buyers are currently really targeting beachfront apartments,” says John Ronnenbergh, owner of the local Aida franchise...

>> Focus on Witsand, Western Cape, South Africa

Witsand is a beautiful small village that lies on St Sebastian Bay. St Sebastian Bay on the Cape South Coast is by far the most important nursery area for Southern Right Whales on the African Coast.

>> View Properties in Witsand
>> View Properties in the Western Cape

>> Property of the week

Western Cape, Witsand

This exquisite fully furnished guest home with 8 self catering apartments, comprises of 1 and 2 bedrooms+ au pair room with separate entrances, is situated on the best whale watching spot...

Search for property in your area

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>> State spending the key

THE government’s R800bn infrastructure development programme is the prime driver behind a countrywide surge of major construction projects that is helping to offset some of the worse effects of the economic downturn.

Large cranes dot the skylines of many of SA’s cities and roadworks and bridge-building and blasting operations are an everyday occurrence as the countdown begins to 2010 in the short term, as well as major infrastructure enhancements further down the line.

Fred Platt, CEO of Accéntuate, says: “Much of the focus in SA will be on government infrastructure spend. If what has been budgeted for — and if what government has said it will deliver up to and beyond 2010 comes to fruition — then this will certainly be a buoyant sector of the economy...

>> 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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