Weekly Newsletter
Friday, 31 October, 2008
Property Search | Estate Agents | List your property

Edition 42 of 2008, Friday, 31 October 2008

Dear Reader

Is the South African property market recovering? I think that is a question on the lips of many of our readers. Most are opting for a “wait and see” approach. Of interest is that according to our web stats the traffic on all our sites has generally increased over the last few weeks as more Internet browsers are searching for property. This is clear in the statistics for the number of properties viewed from April to October 2008.

Month

Views

April

2,959,149

May

3,725,213

June

3,723,095

July

3,522,457

August

3,667,788

September

4,886,942

October

5,130,475

What do the experts say, is there hope for a recovery of the property market in the near future or not?

Berry Everitt, MD of the Chas Everitt International property group, says interest in tangible assets such as property is rising rapidly as investors watch the value of stock holdings plummet. “Investors are flocking back to property, with attendance at show houses notching up an incredible 300 percent increase in the past month,” Wary investors returning to property in droves.

Azar Jammine, chief economist at Econometrix, said recently he expected inflation to start falling in the months ahead and double-digit wage hikes to kick in. “Jammine predicts a reversal in the year ahead,” says Mike Bester, CEO of Realty 1 International Property Group, “and he also said that the 12% to 15% pay rises that are now being seen will provide relief in the run-up to the drop in interest rates that is expected in early 2009. If this happens, it will obviously help to kick-start the property market, as it will enable buyers to meet the affordability criteria better than they can at present.” Is an upturn really on the way?

No hope until 2010 for the property market. This was the message from John Loos, FNB. According to FNB, tough times for property sellers, mortgage originators and estate agents are to continue although the demand for residential property is expected to pick up towards mid 2009 should there be rate cuts. Ouch! More bad mortgage figures point to scary property scenario

Emerging data showed that the demand for rental properties has slowed down forcing landlords to lower their asking rentals. What is your viewpoint? This was the question that was put forward to our readers in last week’s newsletter. The response to this question was phenomenal. Read more in To the editor

A combination of mountain, beach and vlei, this town near Cape Town offers much in the way of accommodation, restaurants and other amenities. It has long, sandy beaches, safe bathing, pavilion, esplanade, amusement park and swimming pools. Focus on, Muizenberg, Western Cape, South Africa

Enjoy!
The editor


Ünsubscribe

>> Real Estate news - Africa: Africa And Global Finance - Potential Resistance?

Far-reaching strategic debate is underway about how to respond to the global financial crisis, and indeed how the North's problems can be tied into a broader critique of capitalism.

At minimum, the ongoing chaos offers new ideological space and material justifications for African finance ministries to re-impose exchange controls and re-regulate finance, and to find sources of hard currency not connected to the Bretton Woods Institutions or Western donors...

>> It’s business as usual for PUTs

Real estate is an essential long-term component of a well-balanced investment portfolio

Mandy Ramsden, Chairman of the Association of Unit Trusts (APUT), comments on National Treasury’s latest document regarding the Real Estate Investment Trust (REIT) proposals.

In December last year, the National Treasury released a discussion paper on reforming the listed property industry in South Africa, aimed at bringing it in line with global best practice...

>> Now is very definitely the right time to buy

Now is very definitely the right time to buy South African residential property, SAYS RAWSON MD.

This no holds barred, totally straightforward message was put out this week by Tony Clarke, MD of Rawson Properties.

"I have," Clarke said, "become tired of the gloom and doom merchants whose advice is now to hold back and wait and see. To me it is crystal clear that if their advice is followed it will result in many missing the boat...

>> Wary investors returning to property in droves

The local property market is a beacon of hope for hard-pressed South African investors who have become wary of the erratic swings in the stock market.

Berry Everitt, MD of the Chas Everitt International property group, says interest in tangible assets such as property is rising rapidly as investors watch the value of stock holdings plummet. “Investors are flocking back to property, with attendance at show houses notching up an incredible 300 percent increase in the past month,” he says...

>> Is an upturn really on the way?

JOHANNESBURG (October 30) - With a number of estate agents reporting sudden increases in show house activity, and the economists lauding the slowing of demand for credit, it’s easy to believe that rock-bottom has been reached and the upturn has begun.

However, the country needs to take account of a number of factors before assuming the worst is over, says Mike Bester, CEO of Realty 1 International Property Group.

“It’s not clear what the basis is for this enthusiasm,” says Bester. “Until interest rates start to come down, the NCA’s affordability criteria remains the single largest obstacle to accessing home finance, and many buyers simply do not have the necessary deposit to qualify for a mortgage...

>> Ouch! More bad mortgage figures point to scary property scenario

Don't expect the residential property market to recover before 2010. And, be warned: commercial property is looking worse than expected.

This was the message from FNB today, in its analysis of September South African Reserve Bank outstanding mortgage advances figures, which were released this morning.

A graph showing mortgage growth declining steadily since 2006, which is when interest rates started rising, highlighted the weakening trend in the residential sector...

>> Need a fix?

"The best candidate for a two-year fixed bond rate is an individual who has absolutely no leeway in their monthly budget. If you have stretched yourself to get your home and can take on no additional expenses, then a two-year fixed rate will at least give you peace of mind that should interest rates go up, your repayments will stay the same," says Leon Barnard, Director of Personal and Business Banking Products at Standard Bank.

With the present economic climate and many individuals finding their disposable income rapidly depleting, the decision to fix your interest rates is the million dollar question in many cash strapped individuals’ minds. However, consumers must bear in mind that while fixing interest rates allows for better cash management, it is a long-term commitment...

>> Pet-loving sellers could be at a disadvantage

Many people feel that a home without a pet is just a house, and are happy to let their four-legged friends roam their residences unrestricted – but a pet-soiled home can put off potential buyers.

Martin Schultheiss, CEO of the giant Homenet estate agency group says that agents frequently have to tackle the subject of pets with home sellers. The topic can be a difficult one to broach, given its sensitivity, but ignoring the issue could cost a sale...

>> Yuppies take to living in residential city space

Themixed-use development of vacant office space in CBDs in SA has gained popularity as accommodation among yuppies.

Bill Ward, CEO of property and facilities management, Colliers International, says the trend has not attracted SA’s traditional suburbanites.

“The trend to reside in the inner city, with components of residential, leisure, retail and office intermixed, is more successful in Cape Town, largely because the city never really lost its appeal and was revitalised at an early stage by the Victoria & Albert Waterfront development...

>> Landlords cautioned

Landlords capitalising on demand for rental property in the current economic climate should be cautious about raising rentals too fast and too far.

Gerhard Kotzé, CEO of the ERA South Africa property group, says evidence from the group’s agents operating in the marketplace suggests that a high percentage of property owners are foisting hefty rental increase significantly above the official inflation rate on to their tenants in an effort to keep up with higher bond repayments brought about by higher interest rates...

>> Guidelines for choosing a sectional title managing agent

Managing Agents are appointed by body corporate trustees in terms of management rule 46(1) under the Sectional Titles Act. The appointment must be by way of a written contract signed by at least two trustees. The appointment should be for an initial year and then be renewed each year.

When it comes to terminating the managing agent’s contract, the trustees should give notice to the existing agent, get a new contract signed by the new agent and expect the takeover process to take about two months...

>> Opportunities await investors able to cash in on demand for student accommodation

Every year about this time estate agents start advising the parents of children who are moving on to university or technikon next year, or, indeed, who are already at these institutions, to consider the advantages of buying an apartment for their offspring rather than paying rent.

>> South Africa Property and Real Estate Professionals to Benefit from Free Training & Educational Channel

RE/MAX shares DSTV training and educational channel with SA real estate Professionals through 'Open Time' format in November

Cape Town, October 27 - RE/MAX of Southern Africa, the country's largest real estate group, today announced the launch of a free national marketing and sales training channel on DSTV for all South African residential and commercial real-estate agents and property professionals during the month of November...

>> To the editor

According to emerging data it showed that the demand for rental properties has slowed down forcing landlords to lower their asking rentals. What is your viewpoint?

This was the question that was put forward to our readers in last week’s newsletter. Unfortunately we can only place a few of the answers we received;

To the editor:

Rent market is BOOMING in Rustenburg. No lowering of rent here. Mines have shortage of housing.

Ala Breytenbach
Prinsipaal, CEA, NQF4

To the editor:

I have also found a slowing down of the demand for rental properties in the high end of the market. Landlords who were previously very ambitious with their rental demands,( probably because the media kept informing them that the rental market was booming and they could almost charge what they wanted) have sat with empty houses and have been forced to adjust their rentals.

I still have high demand for properties under the R6000. mark.

Kind regards,
Christine Chambers
Email: rentals@remax-onehundred.co.za
Website: www.remax-onehundred.co.za

To the editor:

Rental properties in the Pretoria area is still booming!

To the editor:

Thanks for the latest news letter. How's the situation in the areas Randfontein to Klerksdorp affected?

Kind Regards
David
Carletonville

To the editor:

I have my property with an agent to administer but they don’t seem to be able to find a tenant. I have not signed any agreement with them. My question is: can I put my property into the hands of more than one agent to find a tenant and whoever finds the tenant first will get the contract to administer the property?

Michael

Send your viewpoint to news@cyberprop.com

>> News from - Green Building Council of South Africa (GBCSA)

GBCSA reports on world-wide green building convention

The Green Building Council of South Africa (GBCSA) was represented at this years World Sustainable Building (SB08) Conference, which took place in Melbourne, Australia from the 21st to the 25th of September 2008.

Jason Buch, Technical Manager for the GBCSA who attended the conference, explains that the event brought together leading green building thinkers and practitioners from around the world to discuss best practices and the latest developments in green building technology, as well as assessment systems, economics, water and energy systems, integrated design and market transformation strategies...

>> In the area...

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

  • Muizenberg
  • Plettenbergbay
  • Bishopscourt Village
>> In the area 1 - Muizenberg

MUIZENBERG NOW OFFERS THE BEST VALUE IN THE CAPE PENINSULA, SAYS RAWSON FRANCHISEE

A recently published brochure from Rawson Properties’ Muizenberg franchise, shows that this part of the Cape Peninsula can still offer homes at 2005 price levels, says the Muizenberg franchisee, Errol King.

No other area, he claims, is now offering quite such good value...

>> In the area 2 - Young retirees head for Plett

Traditionally a playground for the rich and famous, Plettenberg Bay is now attracting a new generation of retirees, both young and old.

Tim Hutchinson, principal of leading local agency Homenet Pick of Plett, says the Garden Route town is fast becoming a hub for those who have made their fortunes while still comparatively young. Unsurprisingly, a large proportion of them are cash buyers...

>> In the area 3 - Bishopscourt Village - a hidden secret

One of the big successes in the Southern Suburbs property world, Bishopscourt Village, is to this day largely unknown to the majority of Capetonians, say the Greeff Properties’ agents Ford King and Simon Raab who serve this area. Even the name of the area, adds Mike Greeff, Chief Executive of Greeff Properties, is known to very few.

The village, which lies between the Liesbeek River and Bishopscourt Drive, took on its identity in the 1930s when a successful businessman, a Ukrainian immigrant by the name of Isaac Ochberg, acquired the land for development. However, most existing buildings date from the 1960s...

Focus on Muizenberg, Western Cape, South Africa

In the early part of the nineteenth century, apart from fishermen's huts and the military barracks, the only homes in Muizenberg were a few scattered farmhouses, such as Weltevreden in Main Road, Lakeside. In 1825 an inn called Farmer Peck's opened. This inn was famous for its ham and eggs, and offered "excellent beds without any fleas!"

However, a letter that appeared in the South African Commercial Advertiser in 1830 complained about the bad state of the road to Simon's Town, which made it "impossible to proceed faster than a foot's pace". By 1844 matters had improved, and the road between Simon's Town and Cape Town was declared a main road, marked with milestones...

>> View Properties in Muizenberg
>> View Properties in the Western Cape

>> Property of the week

Western Cape, Cape Town, Muizenberg

Bedrooms: 4
Bathrooms: 4
Garages: 3

This secure living apartment with mountain, sea and vlei views comprises 3 balconies, 4 bedrooms all with built in cupboards, 2 bathrooms main en-suite...

Search for property in your area

Enter City/Suburb:
Chas Everitt to open in Mauritius

The Chas Everitt International property group is shortly to open an office in Port Louis, capital of the idyllic Indian-Ocean island of Mauritius, in conjunction with prominent local property sales and development group Davyland.

The joint venture has been established in response to increased demand from South Africans who want to buy holiday homes on Mauritius or relocate there permanently, says Chas Everitt Franchising CEO Barry Davies...

>> 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


Ünsubscribe