 11 May 2012, 08:11:36
Having already spent twelve months on an 18 month Graduate School of Business
postgraduate PBI Diploma in Management course, Lanice Steward, Managing Director
of the estate agency Anne Porter Knight Frank, has commented that those who are
sceptical about the value of such courses have almost certainly 'got the wrong
end of the stick'.
"To me," she said, "it has been remarkable how this course run
by Elanca Shelley has helped us at APKF to make good decisions at the appropriate
time. It has, for example, influenced our training programmes, our commission
policies and in my own case it has helped establish the priorities to which
I have to attend urgently. I am now inclined to recommend the course to any
senior or potentially senior person in property management and marketing providing
they can face the prospect of doing an average of 15 to 20 hours extra-mural
study per week and breaking away for several eight day intensive tuition periods
at the GSB every few months."
The diploma course, added Steward, has been especially valuable in helping
her and the APKF management team to plan the way ahead for the company in conjunction
with their UK associates, Knight Frank, who have been in Cape Town recently
for an all-Africa conference.
"The senior Knight Frank management," said Steward, "are extremely
optimistic about the potential for many African countries. They are presently
represented in nine of these and hope to expand their footprint."
Knight Frank's Wealth Report, compiled in conjunction with Citibank, said Steward,
reports that the average growth in property values in Africa as a whole was
just over 8% in 2011, South Africa with 3,4% growth being in many respects one
of the less successful performers.
"The strategy now being worked on will give Knight Frank's Africa operations
steady growth over the next decade and will take the brand into new territories,"
she said.
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11 May 2012, 08:11:06
The small Breede River Winelands Rotary Club has followed in the footsteps
of one of the larger Rotary clubs based in India - which recently raised R28
million for an eye hospital in Agra.
While the Rotary Club of Taj Mahal Agra raised R2,8 million for its Eye Project,
the far smaller Breede River Winelands Rotary Club emulated the spirit of the
Rotary Foundation by raising R210 000 in a Rotary matching grant for the Breede
River Hospice in Robertson, Western Cape.
Rotary International is a worldwide organisation which brings together business
and professional leaders to provide humanitarian service, encourage ethical
standards in all vocations, and to help build goodwill and peace in the world.
A secular organisation, Rotary is open to all persons regardless of race, colour,
creed, gender, or political viewpoint - and currently boasts 34 000 clubs and
over 1.2 million members worldwide.
The Eye Project championed by the Indian Club is indicative of the type of
work that is done by Rotary around the globe. Showing the level of personal
commitment often displayed by Rotarians, one of the leading businessmen of Agra,
Shri Satish Wadhwa - and his son Rahul Wadhwa - also assisted the project by
donating a piece of land measuring 2 200 square feet for the Eye Hospital.
The Eye Project is one of the most successful Rotary projects in India to date.
Keith Poole, charter member of the Breede River Rotary Club - which includes
Rotarians from the towns of McGregor, Montagu, Bonnievale, Ashton and Robertson
- said the recent R210 000 raised for the Breede River Hospice is one of the
most successful projects undertaken by the 'country club' since it was established
in 2005.
Three Rotary Clubs - two from Germany and the Breede River Rotary Club - joined
hands to raise the R210 000, which is having a "noticeable impact on the
lives of patients and staff in the area that includes Robertson, Montagu, McGregor,
Ashton and Bonnievale''.
The Breede River Hospice provides palliative care to people with life-threatening
illnesses in the territory of the Breede River Winelands Rotary Club, situated
in a rural area spanning 2 500 square kilometres compromising a total population,
from five towns, of around 100 000.
At the start of 2009, a team of 11 medical professionals, 17 community care-givers
and 10 support staff were providing services to over 300 patients. "The
team," said Poole, "was highly skilled and motivated, but the facilities,
equipment and transportation available proved to be a major obstacle to them
rendering their much-needed services.
The R210 000 raised went into providing a raft of equipment for the hospice,
including laptops, shop fittings, a motorized safety gate, turbine roof ventilators,
blood pressure meters, office chairs, data projector, buzzers and keypads on
gates, a blood oxygen meter, Glucometers, electronic haemoglobinometers, stethoscopes
and a data projector for training.
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11 May 2012, 08:09:10
With buy-to-rent investment in residential property once again becoming popular,
an influx of assertive, independent-minded entrepreneurs are, as in previous times,
making their presence felt in the property world - and often, says Lanice Steward,
MD of the Cape estate agency Anne Porter Knight Frank, they enter this new field
brimming with confidence that they can go the DIY route, finding a managing tenant
without the 'extra' or 'unnecessary' expense of employing a rental agent.
"I am not saying that such landlords will inevitably learn a lesson the
hard way in these matters," says Steward, "because experience shows
that some do succeed all along the line. Nevertheless, it is regrettably true
that many, perhaps the majority, make fundamental mistakes which would never
entrap a trained professional.
"Lesson No 1 to be learned by those without experience in this field,"
says Steward, is never to waive the rental deposit.
"For one or other reason the tenant may try and persuade the landlord
that there is no need for such a deposit. However deposits are, in fact, authorized
by the Rental Housing Act, which stipulates that they have to be put into an
interest bearing bank account and that the interest has to accrue to the tenant.
Furthermore, the interest paid must not be less than the rate given by the same
bank on savings accounts.
"If such a deposit is not paid by the tenant, the landlord has no fallback
cash to be drawn on if and when the tenant damages the property or defaults
on his rent - as can happen even with good tenants."
However, adds Steward, the landlord must see the money as sacrosanct and must
not fall into the temptation of using it for other purposes and then trying
to calculate the interest that it would have earned. This, she says, can lead
to the landlord later finding he is unable to pay it back.
Common mistake No 2, says Steward, is to give the tenant access to the home
before the deposit and one month's rental are paid upfront.
"If a landlord-tenant relationships starts in this way," she says,
"the tenant may continue to try and take advantage of the landlord in all
subsequent dealings. Furthermore, on moving into the house he may start raising
objections and give reasons for not paying rent."
Mistake No 3, says Steward, is to be lax about the credit checks every reputable
agent uses.
"It is in this aspect that so many DIY landlords fall down," says
Steward. "Lacking the agents' access to credit bureaux they rely on word
of mouth recommendations and perhaps a telephone call to the employer. They
then sign on a tenant who may have several credit black marks against his or
her name, which of course he has been very careful not to reveal."
Mistake No 4 is to be casual about getting a reference from the tenant's previous
landlords - if he has had them. Here, says Steward, it is important to get at
least two references because landlords have been known to give a favourable
reference simply to get rid of a tenant they dislike.
Mistake No 5 is to neglect to draw up an inspection manual when the tenant
moves in and then to get the tenant to sign it. Such check lists, says Steward,
should be accompanied by photos of each room and of any defects. These lists
become very important when it comes to establishing the damage for which the
tenant is responsible (i.e. ordinary wear and tear) in contrast to those defects
which were already evident when he moved in.
Mistake No 6 is to neglect to visit the tenant regularly to check on how he
is caring for the property. There should, says Steward, be at least three visits
per annum, excluding the initial occupation visit and the end of lease checkup.
In some cases, she says, signs will crop up which indicate that the tenant is
'on the skids', e.g. having financial or partner problems. When such signs become
evident it may be necessary, she says, to visit far more often and then to take
firm action to get the rental payment necessary and to ensure that the property
is cared for.
"Anne Porter Knight Frank's experience shows that if and when a tenant
is having difficulties he may regard his landlord as the last person whom he
feels he is obliged to pay. That mindset, which is all too common, has to be
dealt with very firmly."
All in all, she stresses, ("and this is an objective opinion and not based
on self-interest") professional rental agents tend to fare better than
DIY landlords when it comes to tenant management and it is, therefore, wise
to employ them and forget the relatively small fees they charge.
"Considering the pitfalls ahead a good rental agent's services are cheap
at the price.
"As in so many other fields," says Steward, "there is no substitute
for experience and inexperienced landlords have been known to lose a great deal
of money."
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11 May 2012, 08:08:23
Rawson Commercial Properties' attempts to foster a dining/entertainment node in
the lower Newlands precinct (where they own the Cardiff Castle and the Butlers/Golden
Spur buildings) has taken another big step forward with the securing of The Slug
& Lettuce to occupy a 130m² Main Road fronting outlet in the Butlers/Golden
Spur building.
Tony O'Brien, manager of Rawson Commercial, said that The Slug & Lettuce
was exactly the sort of strongly branded, international group that this relatively
small complex needs.
"The Slug & Lettuce," he said, "is part of the Hussar Group
which has over 200 outlets in the UK. These vary from full-on pubs in the traditional
English style to chic, restaurants and informal bistros focusing on healthy
food and good presentation. In South Africa the Slug & Lettuce are in Green
Point, Long Street, Gardens and Pretoria and now Newlands. It is said that they
intend shortly to be in Constantia and Stellenbosch."
The new Newlands outlet, said O'Brien, will be more bistro-ish than pub-like
with pizzas and burgers being their specialities with features reminiscent of
UK pubs. Its big advantages, apart from its international reputation, said O'Brien,
are that they will open from 7am for breakfasts (reputed to be "special")
till late in the evening. Secure parking is available less than 40m away behind
the Newlands swimming pool.
It is also, of course, ideally placed to serve Newlands Cricket and Rugby crowds
before and after games.
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04 May 2012, 14:07:14
The Sotheby's International Realty global network now encompasses more than 600
offices and almost 12 000 sales associates in 45 countries and territories worldwide,
having grown by almost 7% in the past year despite difficult real estate conditions
in many markets.
The Sotheby's International Realty brand has now also acquired the license from
the Sotheby's Auction House to develop the brand in Australia, the only region
where it did not previously hold the rights.
"The strong growth of the group in the past year demonstrates the value that
both real estate professionals and clients place on the services we offer, as
well as the power of the Sotheby's International Realty name and its reputation
for excellence," says Lew Geffen, chairman of Sotheby's International Realty
Affiliates.
"One of the network's goals for last year was to continue to expand in key
luxury markets worldwide, and that was achieved with the addition of 12 new companies
worldwide and the acquisition of the licensing rights for Australia, which will
give us representation in a critical international market."
Outside the US, the brand has expanded its network in the past 12 months to provide
its real estate services in: Milan in Italy; Costa Brava and Costa Blanca in Spain;
Estonia; Aruba and, most recently, Taiwan and Israel.
In the US, it has added 10 new or merged residential real estate brokerage firms
to its network.
And in South Africa, Sotheby's International Realty also continues to expand with
new franchises recently opened to serve homebuyers and sellers in the Ballito,
Vaal, Blouberg and West Coast areas.
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04 May 2012, 14:06:53
Owners of all businesses, but particularly those which are small and medium
size, says Bill Rawson, Chairman of the Rawson property group, regularly ask
him one question: "Is it a good idea to buy one's own premises or should
I continue to rent?"
The answer, says Rawson, is almost always, "buy", and this is particularly
true and appropriate right now, especially if the property contemplated is a
residential building which has been rezoned to have commercial rights. The only
proviso, he says, is that the deal should be seen as a long term one, i.e. the
buyer should plan to hold the property in his own name for at least five years.
"The very obvious major advantage of buying for oneself is that the bond
rate will be fixed at a fairly low level and right now in South Africa the consensus
of opinion among economists is that it is unlikely to rise before late 2013.
Furthermore, when it does so, the general prediction is that it will probably
not rise by more than 1% or 2%.
"By way of contrast, commercial property rentals are rising steadily -
an increase of ± 8% per annum is now almost standard and this means that
five years down the line the tenant will be paying 50% more rental each month.
These facts surely make buying a good proposition."
A client of Rawson Properties who operates in the distribution business asked
him recently whether she should buy a rezoned residential building in the back
streets of Claremont. As she does not need a high profile position for her business
Rawson advised her to go for it - and he is perfectly confident, he says, that
the advantages of the purchase will become increasingly obvious to her over
the next few years.
Rawson did, however, warn that South African banks, now operating in strict
compliance with the National Credit Act, will almost never issue a bond on a
commercial building for longer than ten years. This in effect means that the
buyer has to be able to pay roughly double what he would be paying each month
on a 20 or 25 year residential bond.
If, however, the building was previously zoned residential and has since been
rezoned, it is quite possible, says Rawson, that the banks will consider bonding
it on a residential basis - especially if the owner or a tenant lives in part
of the building.
"This option," says Rawson, "is very definitely worth applying
for where the premises, as is so often the case, were once upon a time a home."
Rawson has himself followed his own advice and now owns a major portfolio of
buildings, many of which are now commercially owned but were originally residential
buildings.
"Next year," says Rawson, "such properties will appreciate in
real terms. However, property values tend to be cyclical and by 2015 I expect
that we will again be seeing steady annual value rises. If you can possibly
afford it, now is a good time to secure your own premises, no matter what sort
of business you operate - after all the monthly bond repayments on a business
are tax deductible."
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13 April 2012, 13:58:04
Gauteng luxury property specialist Ennik Estates has been appointed to help market
“The Houghton” – a R2-billion-plus development which overlooks the 7th and 12th holes of the newly-completed Jack Nicklaus signature golf course (in the century-old upmarket Johannesburg suburb of Houghton).
The golf course the centrepiece of about 170 acres of pristine private parkland in which the estate is set.
Ennik Estates is the exclusive affiliate in Gauteng of Christie’s International Real Estate, the US$100-billion sales a year global luxury property arm of the world’s largest and oldest fine art auction house.
“The Christie’s affiliation will enable Ennik Estates to add a powerful international investor-focused dimension to our local marketing campaign for The Houghton – a development which I firmly believe is now by far the best and most secure luxury lifestyle estate offering in Johannesburg since Melrose Arch,” says Ronald Ennik, CEO of Ennik Estates.
(Prior to launching Ennik Estates, he was closely involved with the successful marketing of the first two residential phases of Melrose Arch.)
“The Houghton could become a home-from-home for global corporates and executives who frequently use Johannesburg city as a base for doing business in Sub-Saharan Africa,” says Ennik.
After a recession-induced false start in 2008, The Houghton was redesigned and re-launched in 2010 with an enhanced value proposition that has already attracted over 100 high-calibre buyers – many of whom have taken occupation in the first phase of the development, which was transferred at the end of January 2012.
“They have bought across the entire spectrum of the offering, from the R3,5-million, 150sqm two-bedroomed units (with en suite bathrooms) to the penthouses, which range from R5,9-million to R39-million,” says Ennik.
“The big attraction at The Houghton is that home prices are roughly a third lower per square metre than at Melrose Arch and other like-on-like developments in Sandton, which have nowhere near the same expanse of parkland on their doorstep,” says Ennik.
“Right now, The Houghton is the crown jewel in the Johannesburg market for this type of aspirational lifestyle investment,” he adds.
“Most of the future buying interest in The Houghton will more than likely be concentrated among successful entrepreneurs, corporate executives and directors, well-heeled empty nesters, the professions, top-end buy-to-let investors,” says Ennik.
“Houghton is an exceptional suburb. It has embraced the new democracy to the extent that it has become the most cosmopolitan top-end area in Johannesburg. It has remained to this day one of the city’s most sought after residential addresses,” he concludes.
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05 April 2012, 08:41:29
 Security, energy efficiency and real affordability are likely to prove a winning combination for the developers of the new Villa Platino estate in booming Burgersfort.
Property demand in the little Limpopo mining town has soared over the past two years, and there is great excitement about the new development as it offers an excellent opportunity for homebuyers and investors to enter the market at an affordable price.
Elsa de Bruyn, principal of the local RealNet agency that is marketing Villa Platino, says stand and building packages in the estate will start at R490 000 for a two-bedroom house, while packages including three-bedroom, two bathroom homes with lofts will range from R650 000 to R750 000. Also available will be three-bedroom home packages with three bathrooms and a study priced at between R800 000 and R850 000.
“This compares extremely favourably with existing similar homes in Burgersfort and other estates nearby, and with a new school and a new shopping centre under development in Burgersfort, there is now no reason why the families of those working on the nearby platinum mines should not make this their permanent home, instead of having to live far away in Lydenburg or Steelpoort.”
Indeed, she says, several of the local mining companies keen to provide housing for employees have also expressed strong interest in the estate.
“In addition, investors have realised that Villa Platino will provide a golden opportunity to gain from the very high rental demand in Burgersfort that is typical of most mining towns. Two-bedroom flats here are now renting for around R5500pm, while three-bedroom townhouses can easily fetch R7500pm. The few freehold family homes that do become available are very sought-after and rentals start at around R9000pm.”
The overall architectural theme of Villa Platino will be Tuscan, and architectural guidelines have been established to ensure harmonious living and protect home values. Energy efficient elements have been built into the designs to keep home ownership costs down, and the developer also promises affordable levies.
Communal facilities in the estate will include two swimming pools, entertainment areas, parks and sports fields.
RealNet already has a long list of those interested in buying property in Villa Platino, and a deposit of R5000 is required to secure a stand while the developers await rezoning.
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05 April 2012, 08:40:10
Property sellers, beware: there have recently been a number of court cases in which the judge has acknowledged the “effective cause” principle. No matter how long ago or how casually the buyer was introduced to the seller and no matter who he subsequently deals with, the agent who did this will in SA law be entitled to a commission. In the most recent case to come before the courts (Chambers vs Burger) the claimant was rewarded with a commission verdict despite the final agreement being done with another (although connected) buyer and for a lower price. In this case the agent had been asked to find suitable farms for the settlement of emerging farmers. An offer was taken through one of the government schemes which is involved with the buying of land for black farmers. Although this bore no fruit, later another scheme by the same government department did a deal directly with the seller. The agent claimed, justifiably, that she had introduced the buyers to the farm and they might not have known about it otherwise. The court agreed with this argument. Lanice Steward, MD of Anne Porter Knight Frank, said that it was good to see agents’ efforts acknowledged. In former times, she said all sorts of “issues” had resulted in agents not being compensated even though they had played a part in bringing about the sale. This is now far less likely to occur.
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30 March 2012, 08:02:19
Another high profile Cape estate agency CEO, Anton du Plessis of Vineyard Estates, has now commented on the much discussed Erwin Rode statement about the 25% overvaluing of SA residential property. “If we are talking about the real value that a reputable estate agent would put on a home in, say, the central Southern Suburbs of the Cape Peninsula, it is to me quite clear that Rode’s statement cannot be taken seriously. “However, it has to be accepted that, despite ongoing coverage of this subject in the property media, there still are sellers who have not adjusted to today’s market values and who overprice so ludicrously that if and when they finally achieve a sale, it is close to 25% below the asking price.” In today’s market, says du Plessis, sellers will usually inflate their prices by ±10% so as to leave room for bargaining and, when they finally sign, will do so at 6 to 7% below the price they had actually anticipated getting. For example, an Upper Kenilworth seller might ask R5,5 million expecting a price of R5 million and settle for R4,8 million – a 13% drop on the asking price but a 4% drop in reality. If he was one of the “deluded” as regards his home’s true value he would probably have asked for R6 million, only to end up with the same sale price of R4,8 million. He would then have thought that Rode’s statement of a 25% overvaluing was correct. “In fact,” says du Plessis, “he was never in the right ballpark on his pricing – so the fact that he had to drop ±25% is irrelevant. The sale price achieved does not reflect a 25% drop in the actual value of the home.” Just how far out sellers can be in their valuations, says du Plessis, was shown recently when a home in Upper Kenilworth was brought to the market at R10 million only to sell after 8 months of exhausting reassessments for R7 million. “That home was never worth R10 million,” said du Plessis, “and the seller had only himself to blame for not accepting the valuation of an experienced agent at the outset. In most cases, a reputable agent should walk away from a property that he considers to be priced far above 10% of his assessment.” Similarly, said du Plessis, a home in Newlands listed at R6 million was sold at R6 million – a 33% drop. “Again, that seller might be tempted to believe that Rode’s blanket valuation was not far wrong – however, once more, the list price was totally unrealistic.” When valuing a home, said du Plessis, an experienced agent will always avoid using a standard formula because every home has to be assessed on its specific merits and flaws. He will take into account what the current owner paid and how long ago he paid it. “If the home was bought in the last three years, the chances are that the buyer will make no “profit” at all, especially considering the cost of transfer duty at ±7% of the value of the property and that this extra outlay makes absolutely no difference to the actual value of a property. However, any home bought before 2008 will almost certainly have risen in value “In the end, when advising the client on price, the good agent has only one sure yardstick – the prices obtained recently on similar houses in roughly the same area. Even then, the right price might well be turned down by the buyer because one or two more other homes on the market are threatened with liquidation and are forced to sell well below market values.” Du Plessis, who is now operating from an office in his home at 16 Tenant Road, Upper Kenilworth, says that 2012 is showing all the signs of being a good year. In his first six weeks this year he sold R11 million worth of homes (three in all) in Upper Wynberg, Upper Kenilworth and Bishopscourt Village, with a further offer currently awaiting bond approval in Bishopscourt proper. “The market is again looking healthy. I do not foresee any dramatic changes taking place but rather a consolidation of values and slight increase in trading volumes,” he said.
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16 March 2012, 08:22:49
 From Left – Len Pears, Quagga Property Brokers, James Gibson, CEO of Edelweiss and James Gorrie from Gorrie & Findlay Developers. |
While some are downsizing others are expanding. Len Pears, Director of Quagga Property Brokers, has just concluded a sale to a leading pharmaceutical firm at Capricorn Business Park. Construction of a new purpose deigned manufacturing plant is underway for Edelweiss Pharmaceutical, contract manufacturers of complementary medicines and cosmetics represented, by CEO James Gibson, with the expected completion in July 2012 The new premises in Capricorn Park are being developed by Gorrie & Findlay on a turnkey basis. Gorrie and Findlay represented by James Gorrie have been master builders since 1968. “The R16.42 million 2400m2 plant will streamline Edelweiss’s operation and allow for additional production assisting the company to grow further in 2012” says Len. For enquiries please call Len Pears of Quagga Property Brokers 082 828 2858 or email pears@fast.co.za or visit www.quaggapropertybrokers.co.za
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16 March 2012, 08:17:17
Despite reasonably adverse trading conditions within the property sector during 2011, RE/MAX of Southern Africa continued growing from strength to strength and remained one of the country’s leading real estate groups. CEO of RE/MAX of Southern Africa, Adrian Goslett, said at the group’s recent national convention held at Sun City that the success during 2011 was a result of RE/MAX agents going above and beyond to give their clients excellent service and understanding that the property industry is more about fostering relationships than selling a product. At the end of 2011, the group reported a 33% growth on registered sales compared to the 2010 figures, which had grown by 37% on the figures from 2009. “The results are a reflection of the remarkable effort that RE/MAX Broker/Owners and agents have put in to achieve the impossible. RE/MAX of Southern Africa has continued to perform extremely well in conditions that have taken a toll on others in the industry,” says Goslett. The national convention, which was attended by over 600 delegates from all regions in Southern Africa, was a chance for RE/MAX of Southern Africa to celebrate its results and award the top achievers of 2011. There were a number of awardees from all regions who were commended for their outstanding sales performance based on various levels of registered commission achieved during 2011. The long list of awards included 274 agents attaining Silver Club status, 193 agents achieving 100% Club, 122 agents awarded as Gold Club members, while 91 agents were awarded Platinum Club status, A further 82 agents were awarded for being part of the Millionaire’s Club, while 34 became Chairman’s Club members and 12 reached the top tier of Diamond Club. In addition, a number of RE/MAX agents received exciting career awards with 17 entering the Hall of Fame for their exceptional sales results and minimum of three years of service with the brand, and eight receiving Lifetime Achievement Awards for their exceptional sales results achieved over the seven or more years that they have been with RE/MAX of Southern Africa. Some top performers also laid claim to special awards presented for 2011, with the winners including Dieter Harck of RE/MAX One Hundred who was awarded as Broker/Owner of the year for a Single Office in a Metro area, while Maurice and Domonick Lodewick of RE/MAX Lifestyle Estates took the honour in a Non-Metro area. Glenn Norton of RE/MAX Masters and Kobie Potgieter of RE/MAX Independent Properties were presented with Broker/Owner of the Year in a Multi Office in the Metro and Non- Metro Areas respectively. Kobie was also awarded the Broker/Owner Individual of the Year by registered commission. Mark Brickles went home with the award for Broker/Owner Sales Team of the Year by registered commission. Broker/Manager of the Year was shared by Susan Watts of RE/MAX Living and Cameron Jansen of RE/MAX Central. The award for highest sales volume by registered commission for a Multi Office went to RE/MAX Masters, while the Sales Associate of the Year by registered commission was awarded to Tracey Snyman of RE/MAX Masters. Sales Associate of the Year by number of transactions was awarded to Sandy Lupton of RE/MAX Superior, while Zelda Caddie was awarded Sales Team of the Year by both Registered Commission and number of transactions. Nic van den Berg of RE/MAX Jowic took both the Passion Award and Recruiter of the Year Award. The Leadership Award was presented to Grant Gavin of RE/MAX Panache, while the Admin of the Year Award went to Yondi Rodgers of RE/MAX Jowic. The Eagle Award, which is bestowed on individuals that have well and truly soared above the crowd and achieved the pinnacle of excellence, was presented to Caron Leslie and Jose de Abreu, Broker/Owners of RE/MAX Property Associates. This award has only been presented once before in the history of RE/MAX of Southern Africa. When top achievers were asked what business tool they could not live without and why, many responded that in today’s age with the vast amount of technology at hand, agents need to be available 24/7, so the one business tool that they can’t live without is their smart phones. The Best Small Office of 2011 was presented to RE/MAX Marine in Richards Bay, the single office with the highest sales volume by registered commission was RE/MAX Platinum, which also received the highest average commission per agent in a Non-Metro area, with RE/MAX Property Merchants taking the honour in a Metro area. What is the secret to RE/MAX agent’s success? Know your customers – they are not to be looked at as merely a target market. Listen to them and build relationships. Be honest, give nothing less than excellent service and cultivate a caring business environment. Goslett says that while 2012 will have its challenges, there is little doubt that RE/MAX of Southern African will continue to strive to be the best real estate group offering the best service. “During 2011, RE/MAX Broker/Owners made sure that their offices and agents received the required NQF qualifications, with many achieving qualifications above what was required. Many of the agents also became Certified Distressed Property Experts so that they could provide a professional and comprehensive service to their clients. With investment opportunity in the market and the number of bond applications approved by financial institutions growing, the year ahead should prove to be another good one for the property market and RE/MAX of Southern Africa,” Goslett concludes.
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13 March 2012, 14:13:03
Due to the vast increase in demand and opportunity to expand, RE/MAX of Southern Africa has recently widened its horizons and opened a new office in the Namibian capital of Windhoek. The new office, which is called RE/MAX Properties Unlimited, will be headed up and co-owned by Wessel Louw and Kyra Stipp as Broker/Owners. The office will mainly service the Windhoek suburbs but will also branch out into north, south, east and central Namibia. While the global economic slowdown did have its influence on the housing market in Namibia, demand has continued to grow for housing, particularly on development plots with the most sought-after residential locations found mainly in the suburbs that spread over the hills around Windhoek. This is the first time in the last two years that RE/MAX will have an office in Windhoek, and, given the vast growth in demand for property, it is likely to be a huge success. “Visitors who have not been in Windhoek in the last year or two will definitely notice the differences,” says Stipp, “There is a lot more hustle and bustle. Development has been astounding, with more people flocking here almost daily. The infrastructure has been improved and more roads have been built to accommodate the increase in traffic, along with more buildings and housing to provide for the growing demand.” Stipp notes that while most of these elements are good economic indicators, she says it has affected many of the citizens in Windhoek both positively and negatively. “With this growth, we are currently in a situation where supply does not meet the actual demand, which has led to property in Windhoek being relatively expensive. Perhaps the biggest effect of under supply is the ever increasing threshold for entry into the market. Middle-class young couples and first-time buyers are struggling to afford a townhouse – bottom-line, prices are high,” says Stipp. An entry level home such as a two-bedroom apartment or small three-bedroom home in need of renovation and no special features, can cost between N$ 800 000 to N$ 1,5 million, depending on its location. Mid level homes in an average area with features such as a swimming pool, large garden and security system will cost anything from N$ 1,2 million and N$ 2,2 million. The most expensive homes, which will typically be outside of Windhoek on new estate developments, are priced from N$ 5 million to N$ 12 000 000 and will have all luxury features one would expect. Adrian Goslett, CEO of RE/MAX of Southern Africa, says: “Considering the vast increase in demand for and development of property in Namibia, it is the right time to reintroduce the RE/MAX brand to the market. We believe that the RE/MAX brand will add considerable value to the Namibian real estate market overall as well as to individual buyers and sellers.” The new office aims to provide an excellent service to its clients and fly the RE/MAX colours with pride. “The common dream and ultimate goal of RE/MAX Properties Unlimited is to create a difference in the lives of the agents that work with us and to make the real estate experience something amazing for each and every buyer and seller. RE/MAX definitely has the tools and technology readily available for our use and together with RE/MAX of Southern Africa we believe we can change the way real estate works in Namibia,” Stipp concludes.
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13 March 2012, 14:11:27
Throughout the South African property development and construction sectors, says Paul Henry, Managing Director of Rawson Developers, one of the most active of the Cape residential property development companies, those involved are having to introduce exceptionally tough price cuts which may - or may not - keep them in business for the coming year.“Almost all building materials other than cement and cement-based products,” says Henry, “have come down substantially. Three large aluminum suppliers have closed their doors in the last half year and the slow recovery has led to a price war. “While we, as developers, obviously welcome the ongoing drops in prices, some of which in the boom era were far too high,” says Henry, “it really does concern us that the future of many merchants and suppliers, many of whom have given good service over the years, is now threatened. Several we know of are working simply to promote turnover and move stock, not to make any sort of profit. This kind of situation can only last for a relatively short time.” Many of the professionals serving the construction sector, some of whom four or five years ago had more work than they could really cope with, are now, says Henry, without commissions and facing a future in which, despite being prepared to cut their fees drastically, they simply cannot see any significant new commissions on the horizon. Developers of multi-unit sectional title schemes like Rawson Developers, says Henry, have learned over the last few years to be very innovative - probably more so than in any stage in the last decade. “What we have learned about cutting costs,” says Henry, “is of course very valuable and experience has shown that redesigning units to make them even smaller can be done without their losing their appeal. We have also learned to source less expensive substitute materials, some of which are very attractive. In addition, certain tasks have been deskilled so as to make them less expensive. However it has to be recognized by the government, which theoretically believes in homeownership, that the 70% decline in home unit deliveries is not at all healthy for the country. Those of us in touch with the less affluent areas in and around the big cities know that urban and township overcrowding of residential units has now become a national problem - which only increased homeownership can solve.” “Market lethargy caused by job losses, low salaries and a lack of bond finance has,” said Henry, “slowed home delivery and home buying down to such an extent that the unemployment rate in this sector is now very serious. Rawson Developers recently placed an advertisement for a quantity surveyor, and received more than 150 applications from qualified people. “Never in my experience has the situation been as bad as this.”
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13 March 2012, 14:09:57
Developers of multi-unit sectional title residential developments all too often find that, having gone to great lengths to hand over their scheme along with its communal facilities and its gardens in a near-perfect condition, the project begins to deteriorate soon after the handover and snag rectification period is complete.“Unless you have been a developer yourself, it can be difficult to imagine just how demoralising this is,” says Paul Henry, Managing Director of Rawson Developments, one of the most active of Cape developers - they have five sectional title schemes coming on stream this year. What is it that causes this almost instant decline in the look and appeal of a new residential development? “One of the main problems,” says Henry, “is the appointment of incompetent managing agents. It has been said that, as in other fields, only 20% of managing agents are truly competent. Quite often such applicants as unsuccessful estate agents who worked previously on selling the scheme, an unqualified relative of the conveyancing attorney or a retired small time bookkeeper will get the job - despite having minimal experience in property management, maintenance, insurance and the like.” Such managing agents also, he says, frequently lack the all-important people handling skills required to ensure that difficult residents toe the line. Before a managing agent is appointed, says Henry, checks should be made not only on his past track record but also to ensure that he (or she) is a registered member of the Estate Agency Affairs Board and of the National Association of Managing Agents. “Quite frequently,” says Henry, “one hears of cases of where the managing agent visits a development only occasionally or where the monthly accounts for the trustees are simply not delivered. There have even been instances where, illegally, no AGM took place or was held long past the stipulated period.” The financial affairs of managing agents, adds Henry, should be closely watched at all times because big thefts from trust accounts have occurred which have had serious consequences for the members. Also likely to lead to problems on sectional title developments, says Henry, is the ‘unfortunate’ tendency to accept as trustees people who, again, lack experience in this field and who take on the job simply to do the chairman a favour or to join a friend already on the board. “This type of lacklustre trustee often has no real interest in the development at all. If he is a buy-to-let investor he may well be completely ignorant of the conditions in the project itself and may have only one aim, i.e. to keep down the levies.” Trustees, says Henry, should not only demand regular accounts from their managing agent but should also insist on monthly tours of the entire complex. “The best trustees, in my experience,” says Henry, “are those who actually live in the building and whose welfare therefore is affected. It has to be admitted that being a trustee is a rather thankless job, but this is no excuse for people accepting the position and then totally neglecting their duties to other trustees and members. Instances have occurred where trustees were only interested in their own apartments or homes and simply did not understand that they have to act and make decisions on behalf of all the owners.” Fairly frequently, says Henry, in order to see that the development does not deteriorate, at Rawson Developments, he or one of his fellow directors will buy one or more units in the project and make sure that they are trustees of the body corporate. Under such conditions, he says, schemes can be handled in such a way that they appreciate in value month-by-month and year-by-year.
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06 March 2012, 09:14:30
As the hot summer months roll on as a constant reminder of the prevalent concern of global warming, it is arguable that water shortages may have become this century’s most burning environmental issue, says Dot Foster, Broker/Owner of RE/MAX Oaktree, whose office operates in Stellenbosch. “Water is a precious commodity and a resource that we all need to survive, so saving water is vital for the sustainability of our environment. With homeowners in South Africa consuming an estimated 30% to 50% of water on watering and maintaining their gardens, it seems that this is the most ideal area where the most water can be saved. While an attractive, established garden can add considerable value to a property, a water-wise garden that takes less water to maintain but is still beautiful makes sense from an environmental and financial view point,” says Foster. Adrian Goslett, CEO of RE/MAX of Southern Africa says: "With water a dwindling resource and many consumers becoming more environmentally conscious, a greater emphasis has been placed on green properties. More and more buyers and tenants alike are placing a higher value on eco-friendly properties. Homes with water-wise gardens are attractive because they reduce cost and waste while still maintaining their aesthetic appeal.” According to Foster, an established garden can be made water-wise with relatively little effort. However, ideally a garden should be designed to be water-wise from the start. The more water-wise the garden is from the outset, the easier and cheaper it will be to maintain and keep beautiful. Foster gives a few tips that homeowners can use to establish their water-wise garden: Choose the right plants Once the decision has been made to concentrate on water-wise plants for your garden, go down to the local nursery and discuss which ones will work in your garden. As a general rule, only indigenous plants should be used as they consume very little water and require minimal maintenance. Certain bedding plants can consume a lot of water, however by adding mulching to the bed and water retention granules to the soil, the need for water can be substantially reduced. Group plants with similar watering requirements Grouping plants that require more water together will mean that only certain areas of the garden will need to be watered regularly. Showcase these plants and have them as a prominent feature of the garden. Once these plants are established, watering can be reduced dramatically. Plants that require less water can then be considered for the rest of the garden. Reduce lawn areas The fewer areas that require watering, the better and lawns guzzle water. Assess how lawn much is needed for things such as entertaining, children playing and pet exercising, and consider reducing these areas without reducing the enjoyment. Consider adding hardscaping features such as a paved or cobblestone footpath, which will reduce watering areas as well as add to the aesthetic appeal and overall feel of the garden. The lie of land may influence placement of hardscaping features, particularly if drainage is affected, and water features should be in shaded areas to reduce evaporation. Lawn maintenance It is important not to cut the lawn too short during growing season. As a general rule, sprinklers should only water areas that need it and sprinkler timers should be set to early mornings and late afternoons. If it rains, override the system because too much water results in shallow root growth and will encourage fungal and other attacks on the lawn. “With soaring temperatures and lack of water that Stellenbosch endures this time of year, water-wise gardening is essential. It is not just about saving an important resource, but also sustainability and of course saving money with the higher cost of living today,” Foster concludes.
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06 March 2012, 09:13:44
Early in 2009, all sales associates with the RE/MAX Rangro office in Benoni signed a declaration that they would not succumb to the pressures of the recession. The results speak for themselves judging by the office awards recently held at the RE/MAX Randgro Imbizo, where the strategies and marketing plans for 2012 were also launched. Jan Grové, Broker/Owner of RE/MAX Randgro, paid tribute to the professional team of sales associates for their commitment to service excellence resulting in a 32.3% increase in sales compared to the previous year. “The exceptional achievement and results can mainly be attributed to the dedication and passion of our team and of course the exclusive, world-class training and a respected brand name,” he said The event was officially opened by Adrian Goslett, CEO of RE/MAX of Southern Africa, who also provided an overview of 2011, who congratulated RE/MAX Randgro on its successful year. He said that despite all indications of slow and steady trading conditions for the 2011 year, RE/MAX of Southern Africa posted its best winter (June – September) sales results in the history of the company. “Added to this, the group’s sales figures for January to October were up 30% on the same period last year, while December’s sales results hit an all time high.” The occasion also earmarked the RE/MAX Randgro’s annual awards, which are a prelude to the national awards that will take place the end of February at the RE/MAX of Sothern Africa convention at Sun City. The RE/MAX Randgro sales award achievers that were celebrated were divided into different award categories which are based on commission earnings. The achievers include: The Silver Club awardees, who achieved more than R5m in sales, were announced as Terri Teunissen, Karen Labuschagne, Lyne Boyers, Jacqui Newman, Marika Grové and Christine Furner The 100% Club awardees, who achieved more than R7.5m in sales, were announced as Alet Allis, Fernando Dos Santos, Wendy Dos Santos, Marlene Currie, Lynne Heger, Rina van Wyk, Charl Burger, Warwick Bonnette and Laura de Stefani. Gold Club awardees, who achieved more than R12m in sales, were Mary Andalaft, Lidia Zorrer and Juanita Louw, while Christine Roberts was awarded Platinum Club status for achieving more than R16m in sales. Rhoda Toker, Teri de Beer and Brenda Penny made up the Millennium Club category awardees for achieving more than R22m in sales. Talking about the year ahead, Grové said: “As for 2012, the expectations are for an improvement in property market conditions over last year, despite the continued global financial turmoil. The economy has not yet stagnated and the demand for accommodation increases daily.” He said that with interest rates at a 37-year low and house prices also offering buyers good value for money, there has never been a better time for consumers to boost their asset base by acquiring an additional property - especially credit-worthy investors/homeowners who have extra equity in their properties, and who therefore can apply for gearing to raise a deposit for the additional property or properties. “Although a nominal capital growth, if any, can be expected in the short term, investors should be patient because the market will eventually turn around again - as Mark Twain once said: ‘Buy land, as they’re not making any more of it!’ Buyers and property investors must always remember that real estate should be regarded as a medium to long term investment,” Grové concluded.
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24 February 2012, 08:57:51
 Property situated within the KwaZulu-Natal north coast suburbs of La Lucia and Durban North have shown consistent demand and consistent value growth, according to Grant Gavin, Broker/Owner of RE/MAX Panache which operates in these areas. He bases this statement on the fact that RE/MAX Panache sales results and market share for last year were the best ever in the history of the company, which first opened its doors in 1996.
That is quite a statement, especially considering that market conditions were fairly flat during 2011, and even still, last year’s sales exceeded the previous best sales levels last seen in 2007, at the peak of the property cycle. Gavin says that this increase in demand and sales can partly be attributed to the fact that the North Durban suburbs comprise a very big selling area and right now, demand for homes in the these areas are very high. These areas are conveniently situated close to the Umhlanga business district as well as the King Shaka International airport. They are also only five minutes away from the Umhlanga beaches and 5 to 10 minutes from Durban beaches. “We are also noticing a lot of people moving down to Durban from Johannesburg which also probably has something to do with the expanding business areas in La Lucia and Gateway.” Gavin says that last year, RE/MAX Panache achieved sales of R675 million which equates to an average of R56 million worth of sales each month. During the height of the last property cycle in 2007, RE/MAX Panache recorded R575 million worth of sales, the same as recorded for 2010, which was not considered to be a great year for property all round. Market share statistics for the period from December 2010 to November 2011, which were based on registered sales versus the suburb registrations as indicated by Lightstone, a property data and statistics provider, also painted a pretty picture. RE/MAX Panache dominated in Glenashley, a suburb where the average property sells for R1,8 million, with an impressive 50% market share. In Durban North, where the average selling price of a home is around R2,3 million, and Umgeni Park where the average selling price is R1,4 million, RE/MAX Panache attained a 28% market share of all sales recorded in the suburbs by the deeds office. Other areas showing good market share results were La Lucia at 24%, Glen Anil & Glen Hills at 24% and Sunningdale 22%. “Durban North is a dominant suburb for us,” says Gavin, “and nearly one in three sales in the area were concluded by us. The fact that we have an office in central Durban North is definitely a contributing factor. The same could be said for Glenashley where we also have an office. In this area every second home sold during 2011 was sold by RE/MAX Panache.” RE/MAX Panache currently has a team of over 55 highly qualified and professional agents, which is less than the number of agents they had operating in 2007. Despite this, the current team is exceeding 2007 sales levels. “This proves that our company has retained a higher calibre of agent since the new education requirements kicked in, and these agents are more productive as a result,” says Gavin. Gavin also notes that for the major suburbs that RE/MAX Panache sells in, the total sales figure for this period was R1,7 billion or R141 million per month in property transfers. “Our combined market share for these suburbs was 26% which translates to more than one of every four homes is sold by RE/MAX Panache in the greater Durban North area.” Adrian Goslett, CEO of RE/MAX of Southern Africa, congratulates RE/MAX Panache on its exceptional success, saying that this office is proof that achieving outstanding results is possible despite current market conditions if agents are professional, driven and diligent when it comes to providing extraordinary customer service.
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24 February 2012, 08:57:34
Kobie Potgieter, Broker/Owner of RE/MAX Independent Properties, expects this year to be much better than last. When asked why she has such a positive outlook amid predictions of a flat market for the foreseeable future, Potgieter says that despite a slew of negative influences on the market, there are positives aspects to consider as well. “We have the challenges with banks only approving around 50% of bond applications, inflation continues to rise which translates to lower disposable income and there is very little economic growth nationally. Added to this, sellers still expect unrealistic prices for their properties, while job losses remain a reality. “However,” she says, “there are some brilliant opportunities out there for the taking.” Potgieter explains: “Port Elizabeth has the largest portion of industrial zoned land next to our new deep port harbour of Coega. Feasibility studies are currently being undertaken on projects to the value of R213 billion at Coega. Due to the fact that very little property development was completed between 2009 and 2011, property demand is growing daily. Since 2011 we have seen an increase in occurrences of multiple offers being signed on the same property. Agents are better qualified and more equipped to price properties more realistically for the current market conditions. The higher demand for rental properties is also encouraging for investors, and they are coming back into the market. Port Elizabeth’s manufacturing figures are looking particularly encouraging, which implies potential job creation and an increase in housing demand.” With an outlook like this, it is not surprising that this Port Elizabeth RE/MAX franchise owner has added more accolades to her name, as Greyvensteins Attorneys announce her as the Top Performing Agent of the Year for 2011. Since the start of her real estate career in 2002, Potgieter has been recognised for her achievements and business success through numerous awards including Business Woman of the Year 2008, Remax Life Time Achievement Award in 2010, first in the world for Remax for commission earned (excl.USA) in 2008 and nominated for South Africa’s most Influential Business Woman of the year 2008, among many other nominations and awards. In June 2003 Kobie become the proud owner of Remax Independent Properties based in the Port Elizabeth suburbs of Walmer and Loraine. In just a few short years her small business of just five employees grew from strength to strength to become the multi-million rand operation it is today that employs more than 50 individuals. It comes as no surprise that Potgieter is also a regular contributor to various business and property related publications. In fact, Your Money nominated Potgieter as the November 2011 Entrepreneur of the month. Added to this, Potgieter has been chosen to travel internationally for REMAX in order to share her knowledge with her colleagues from other countries, which will take place in a two day workshop in Germany later this year. Adrian Goslett, CEO of RE/MAX of Southern Africa says: “In tough economic times, it is only the dedicated, professional agents and franchise owners that really go the extra mile who are able to achieve success. A strong vision and determination are not negotiable. Kobie has all of these attributes and more, as is evidenced by the awards she has won, making her a valuable member of the RE/MAX of Southern Africa family. We congratulate her on her achievements and are proud that she serves as a role model for other agents in the industry.” Talking about property, Potgieter says that January 2012 has come and gone in a wink of an eye. “RE/MAX Independent Properties has experienced yet another phenomenal year that is in contradiction with what the local, national and international markets were telling us, with 704 sales and a turnover of R340-million for 11 months of 2011. We look forward to 2012 being even better!” she concludes.
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17 February 2012, 08:50:37
Dedication to franchise support has paid off, says Rawson Properties MD
Reputations take time to build: there are few overnight brand creation successes.
In the SA property sector today, however, there is a mounting awareness that one real estate company, Rawson Properties, has become a major brand and is very definitely on the war (expansion) path.
Asked recently to comment on this new perception in the public’s mind, Tony Clarke, the MD of Rawson Properties, said
“It is not something we have conjured out of a brand building hat, it is based on facts.”
These, he said, are that in 2010 Rawson Properties grew its turnover by 63,6%. In 2011 they raised it by a further 26% and this year they expect to see a further 40% growth. They are now very definitely a national operation.
“It is now accurate to describe us as the fastest growing property franchise group in SA today,” said Clarke, “and we intend to hold onto that.”
The group today has 145 property franchises in nine provinces. In 2011 46 new franchise purchasers were accepted by the franchise sales team (which on average take only one in twelve applicants).
Clarke says that their policy is both to diversify in areas where they already operate and to seek out promising new territories. For this reason, he said, he and his team are open to any suggestion from any area, including territories across SA’s borders: two of the latest fully-fledged franchise sales have been to applicants from Namibia and Zimbabwe and Clarke has said that he has big hopes for both as in each case the new franchises are well qualified professionals.
In KwaZulu Natal, into which they moved only 14 months ago, they now have 12 franchises.
The expansion also, however, involves what might be described as diversification: Rawson Properties has always had some franchises in which rental management has been a strong contributor to profits. Now they are offering dedicated rental franchises in selected wider territories.
Similarly, in October last year, they established a commercial property division, giving franchisees here the opportunity to obtain mandates for commercial property for sales and renting. To date 16 such franchises have been established and the national commercial manager, Jason Lee, has said that by the end of this year he expects Rawson to have a bigger “footprint” in SA commercial property franchising than any other company.
These successes followed on from another diversification initiated in 2010. This was Rawson Auctions. They now have two auction franchises, operating in both the Western Cape and Gauteng.
In all its franchise operations, says Clarke, the group’s success stems from its support systems.
“We have,” he said recently, “made huge strides with our franchisee proprietary computerised management system, Realtytech. This is now in its third version and, put simply, it helps the franchisee to manage his franchise and his agents to perform more effectively. Coupled to this, we offer –indeed we insist on – regular ongoing training and system upgrading.”
This approach, says Clarke, although so patently and obviously the right way to go, is still relatively rare in real estate marketing.
“We realised that our franchisees had to know that we were committed to making them successful. In our view it is dangerous to run a branch – and franchise – operation in tandem because there will always be a temptation to favour the branch in whose profits the chiefs share directly, rather than the franchisee who pays on a royalty basis.”
Looking ahead, Clarke said that by 2015 Rawson Properties plan to have 300 franchises countrywide – and, he added, they are by no means averse to further expansion in Africa and possibly overseas.
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10 February 2012, 08:14:40
Jason Lee, who heads up Rawson Properties’ new Commercial Franchise Division (which in its first six months has sold 16 franchises), has raised again the thorny question of why banks limit their commercial bonds to relatively short time periods - usually 10 or 12 years at the most and sometimes for even shorter periods.“The banks,” said Lee, “have said openly that they are now looking to expand their markets and to become more profitable. If they extended their commercial bonds to 15 to 20 years (as they are quite prepared to do in the residential property sector) they would make more money, especially as commercial bonds are issued at higher interest rates than those for residential property, they would attract more investors into this asset class and they would help struggling landlords come through the current difficult times.” Lee said that, as a regular peruser of the Sheriff Auctions list, he can testify that commercial property repossessions have been relatively limited despite the difficult economic conditions - and, he added, there is little or no truth in the often-repeated statement that commercial property tends to need more maintenance than residential property. “These days in almost every case commercial property has a large component of maintenance-free elements such as face brick, resin bonded floors and aluminium cladding. Furthermore, the bank issuing the bond is entitled to reserve the right to inspect the mortgaged property regularly to ensure that it is being properly maintained and almost all do this.” Lee said that in talks with South Africa’s major banks he has, as yet, heard no valid arguments in favour of short commercial bond periods. What is more, he said, all the banks offered different reasons for the shorter periods, indicating that there is no consensus on this matter. The stances taken by them, he said, are based on traditional attitudes rather than on any logical reasons.
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10 February 2012, 08:12:27
Vacant land along the Cape West Coast will provide great opportunities for buyers to purchase their piece of paradise in 2012. This is according to Maurice Lodewick, Broker/Owner of RE/MAX Lifestyle Estates, which services the Langebaan area among others along South Africa’s spectacular Cape West Coast. Still considered to be an almost undiscovered treasure trove of rich geographical diversity from mountains and unspoilt beaches to the mass of wild flowers the region boasts in spring, the Cape West Coast has become a major holiday route out of Cape Town along Route 27. “Stretching from Cape Town to Touws River, including the beautiful Cederberg Mountains, the West Coast is a smorgasbord of quaint historic towns and fishing villages, making it an idyllic location for buyers to build a dream holiday or retirement home,” says Lodewick. He says that vacant land prices range from around R200 000 up to approximately R500 000, which makes it affordable for the buyer to put down a big deposit. He believes that these parcels of vacant land, along with some beachfront stands that range from around the R1,6 million mark up to about R2,5 million will be the most popular with buyers this year. When it comes to providing buyers with value for money, Lodewick says that properties well located within security estates, particularly those close to the sea or with lifestyle offerings like a golf course, will be the best West Coast property buys in the next 12 months. “Secure estates that have good architectural guidelines always enhance the long term value of a property,” he says. Aside from this, Lodewick notes that beachfront or golf estates generally offer a good lifestyle with family facilities, which make them attractive investment nodes. “Properties within these kinds of estates will definitely hold the potential for great long term value growth.” Adrian Goslett, CEO of RE/MAX of Southern Africa, says that holiday home sales volumes this past festive season saw a solid increase on last year’s transactions, with RE/MAX of Southern Africa reporting a 27% increase on 2010’s holiday season sales figures. “If buyers do their homework and invest wisely, they are sure to benefit from solid long term gains.” To ensure a good property investment, Lodewick’s advice to West Coast buyers in 2012 is to still heed the old property buying mantra of location, location, location. Added to this, he says that in the current market, a buyer should only purchase a property if they can comfortably afford the repayments and expenses. “Buyers should request the services of a reputable agent and ask to be added to the database for up-to-date “best buys”. Always work with an agency that has been working in the area for several years and knows and understands the local market dynamics well. If you looking to buy, then now is the best time taking general market conditions, the interest rate and property prices into account,” he concludes.
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10 February 2012, 08:11:01
The popular upmarket Woodhill Golf Estate in Pretoria's eastern suburbs has acquired the services of a resident estate agent. Callie Louw, who lives in the estate and owns the RealNet franchise in Moreleta Park, has now also acquired the RealNet Woodhill franchise. “It is a good fit with the Moreleta Park agency and we expect to see a healthy synergy between the two," he says. Woodhill is the residential estate of choice in the ‘new east’ of the city thanks to state-of-the-art security and the relaxed lifestyle afforded by open spaces and, naturally, the golf course, he says. "Buyers are either opting to buy into the lifestyle or see units here as an excellent investment. And homes in Woodhill are also sought after by high-quality tenants such as top professionals and executives, as well as foreign embassies, which rent luxury accommodation for senior staff." Prices start at around R3,5m for full-title homes and range up to R10m and more for large properties. A limited number of three-bedroom sectional title duplexes are available in the estate. Prices of these units start at around R1,7m. Louw describes the property market in neighbouring Moreleta Park as stable. "It remains a popular area among buyers thanks to the established infrastructure, the wide range of residential units available and the fact that properties here hold their value." Prices of full-title properties in the suburb start at around R1,7m while sectional titles, popular among younger buyers, start at around R700 000 for two-bedroom units. Prices of duets range between R1,1m and R1,5m. Louw, a qualified attorney, says it was a natural career progression to enter the property industry. He joined RealNet last year when he bought the Moreleta Park franchise after a successful stint at a Centurion agency. "It was a golden opportunity to become active on my home turf, where I can serve property consumers with in-depth knowledge of the local property scene. I was also very happy to join RealNet, a young and dynamic brand that brings innovation to the industry," he says.
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07 February 2012, 08:56:07
The demand for affordable homes continues to drive the property market recovery in Johannesburg’s southern suburbs, says Fanie Viljoen, Broker/Owner of RE/MAX Superior, which operates in these neighbourhoods.
“We have experienced more and more buyers in our areas that are looking for property priced around the R1 million mark. In the environment in which we operate, the highest demand is for properties priced between R800 000 and R1,3 million. The simple reason behind this is affordability, which in some cases is taking precedence over security. It seems that the popularity of sectional title units has seen a decline, with buyers rather opting for affordable free-standing homes, which can often provide more value for money. People are looking for middle-class family homes that have space, but that don’t break the bank,” says Viljoen.
Adrian Goslett, CEO of RE/MAX of Southern Africa, says that those who can qualify for finance will be able to find many good properties that offer value for money in the current market. He notes the financial institutions have relaxed their lending criteria marginally and that now around 50% of all bond applications are being approved. However, he says that while affordability remains crucial, the interest rate, which was last this low 39 years ago, coupled with a good selection of well-priced homes on the market, make it an ideal time to invest in property. “While it is expected that house price growth will remain flat this year, we expect to see an increase in activity in homes priced between R700 000 and R1-million, which we also foresee will reflect the biggest value increase this year due to the demand for properties within this category.”
According to Viljoen, buyers across the board in the southern suburbs are generally looking for three-bedroom family homes with features such as a double lock-up garage and staff accommodation. Stands in these areas vary in size from 800m2 to 1200m2, and offer the buyer good value for money. He says that most of the recent buyers in the southern suburbs have been under 35 years old, which points to the fact that the young family buyers will continue to make their presence felt in the market.
Johannesburg’s southern suburbs have seen considerable development over the last few years due to an influx of investment. A large number of new developments have been built in a number of the areas and many older houses have been renovated, which means that the number of affordable properties available to buyers has grown steadily. The majority of the suburbs market stock is freehold homes, which make up over 65% of the homes available, while the remainder is made of sectional scheme properties.
One of the properties being marketed by RE/MAX Superior is an R880 000 home situated in The Hill. This neat and well-maintained property offers three bedrooms and two bathrooms, with various other features including a sunroom, double tandem carport, storeroom, manicured garden, remote gates and electric fence, plus a one-bedroom cottage with a bathroom, kitchenette and lounge.
For more information about this property or others in Johannesburg’s southern suburbs contact sale associate Edwin Wiggins of RE/MAX Superior on 083 234 9865 / 011 432 3911.
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27 January 2012, 08:11:13
 One of Upper Constantia’s grandest and most lavishly fitted out homes has come onto the market at a price of R28,5 million. Fleur Lee, of Anne Porter Knight Frank, who has been given the right to market the property, says that it is one of only four or five houses in Constantia that set the benchmarks by which other big landmark homes in the valley are judged.
Sited just off Price Drive, the property is close to the boundary of the Groot Constantia vineyards and has direct access to these. The home has views across the Klein Constantia and Steenberg vineyards and Tokai Forest to False Bay as well as backwards to Vlakkenberg and Constantiaberg. The home, which has no less than 1,000 m2 of floor area (roughly five times the size of a conventional big home), is double storey with large balconies and four big bedrooms, all en suite. There are six reception (living and dining) rooms as well as such ‘extra’ facilities as a gymnasium, a study cum library, a home theatre/cinema, a scullery (with a glass door), a temperature controlled wine cellar and servants’ quarters. The kitchen floor area covers close to 150 m2. All rooms are air-conditioned and many have underfloor heating. A central vacuum system ensures that all vacuuming is done with great efficiency. A separate flat with a high measure of privacy is sited in the garden and four garages and ample parking space enable the home to be used for large-scale entertainment. The garden has been partially landscaped to have a formal French Provencal appearance with olive trees, herbs and lavender. It is watered by an automatic irrigation system fed by its own borehole and a mountain stream tumbles through the property, giving sustenance to four water features and a koi pond. The security measures, says Lee, are of the highest standard and include an electrified boundary fence, CCTV and a burglar alarm. Lanice Steward, Managing Director of Anne Porter Knight Frank, says that homes of this quality are rare “anywhere in the world” and this one has the huge additional advantage of being not just opulent but also thoroughly modern and wholly appropriate to its setting, because it has a clearly identifiable Mediterranean feel to it. “One hesitates these days to describe any home as really beautiful,” says Steward, “but that description would be justified in the case of this very superior residence.”
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20 January 2012, 12:47:31
 RealNet franchisee Nelis Bezuidenhout has been named by the Institute of Estate Agents (IEASA) as its Agent of the Year 2011 in the category for agents working with assistants.
He was also recognised at the recent RealNet national awards as the Agent of the Year in the units sold category.
Nelis is the owner of the RealNet Wapadglen franchise, which specialises in selling townhouses in the eastern suburbs of Pretoria, namely Faerie Glen, Garsfontein, Olympus and Wapadrand.
An accountant by training, he has been involved in the real estate industry for the past 14 years and for the past few years has concentrated on Sectional Title units.
Congratulating Nelis on his achievement in winning the coveted IEASA award, RealNet Holdings MD Jan Davel said the property market was definitely not the easiest industry to be operating in during 2011 and further that sales figures such as those notched up by Nelis in the past year, as well as in previous years, did not just “happen” by themselves, no matter what the state of the market.
“They are the result of great perseverance and diligence, insight and an unfailingly positive attitude and we applaud Nelis for having all those and for his exceptional performance. Our group is always appreciative of this type of effort and example.”
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12 January 2012, 16:22:37
2011, says Bill Rawson, chairman of Rawson Properties, is likely to be remembered in the property sector as the year in which improper conduct and misappropriation of funds by several of the industry’s leaders did much to tarnish their reputations and that of the industry in general.
This, he said, was doubly regrettable because many of those who had been implicated had spent years establishing their reputations and building good brands. The damage to themselves and their companies, he said, had been increased by the general public’s ability to comment and communicate to the world on these matters via the electronic media. In one case a dedicated blog had been started just to air grievances about one operation.
Also damaging to the industry, said Rawson, had been the lack of efficiency, the changes and staff suspensions in the Institute of Estate Agents and Estate Agency Affairs Board. Fortunately, he said, these are being dealt with.
It would, however, help greatly, said Rawson, if the Department of Trade and Industry communicated with the industry leaders rather than implementing new legislation without much consultation.
In the circumstances, he said, those brands with clean images are attracting clients and staff formerly linked to the “damaged” groups – but, he warned, it will require continual vigilance to ensure that one or two operators within those groups do not let the side down.
“2011 has shown again that the independence and flexibility of the franchise system do attract the bold entrepreneurial types that real estate marketing needs. However, it is also clear that a franchisee who is not properly trained and mentored and who is possibly able to operate on systems of his own and without much feedback to his head office can be dangerous. The strength of good franchising lies in its ability to provide the franchisee and his agents with systems that simplify and speed up their work while at the same time revealing quickly to the head office any area where there is weakness or misconduct.”
Any agency operating a trust in its own name, added Rawson, should be questioned.
“The golden rule is that trusts in which clients’ money is held should be independent and preferably associated with attorneys. Even these have on occasions proved vulnerable but it is always safer if the trustees are not directly linked to the agency.”
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12 January 2012, 16:16:04
RE/MAX of Southern Africa is pleased to announce that Kevin Jacobs will be joining the team in January as National Franchise Development Manager.
“With more than 19 years of experience in the financial sector of the property industry, of which 15 years were in management positions heading up successful sales teams, Kevin brings a wealth of knowledge, experience and understanding of real estate into the RE/MAX fold,” says Peter Gilmour, Chairman of RE/MAX of Southern Africa.
Gilmour says that the growth that the RE/MAX brand has experienced over the past year, both in terms of sales figures and market share, is largely attributed to the high calibre of people that work within the group. “Kevin is passionate about property and people, and through the experience he has gleaned in the industry to date, he has a good understanding of where the industry has come from and where it is going to and will no doubt be an asset to the RE/MAX brand.”
Jacobs, who has spent most of his career developing and fostering relationships within South Africa’s real estate network, says that he is honoured to join the RE/MAX team. “This is a fantastic opportunity to be a part of the inner workings of South Africa’s leading real estate brand. It is a brand that is well-known and trusted by consumers around the world, and it is a brand that has a strong business focus – from the Broker/Owners to the estate agents, everyone within the group is an entrepreneur and I look forward to adding value to the operation.”
As National Franchise Development Manager, Jacobs will have a big focus on developing and nurturing stronger relationships with new and existing partners in the real estate industry as well as adding value to all of the RE/MAX franchises. “I am looking forward to growing the RE/MAX business even more, as well as developing new business and strengthening the brand. While the property market is expected to remain tough during 2012, I believe it will be a good year of growth for RE/MAX.”
Gilmour notes that brand focus, lead generation and offering a quality service will be the drivers of success in 2012. “RE/MAX of Southern Africa welcomes Kevin to the team and looks forward to a long and fruitful relationship with him. We have geared up to take advantage of the opportunities that the market will present during 2012, and with a strong foundation of key personnel, we are sure to achieve even greater success in 2012,” Gilmour concludes.
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15 December 2011, 08:15:26
Many people are irked by the fact that 100% home loans are no longer freely available, but on the other hand it must be said that the bigger the cash deposit that potential homebuyers can make, the more benefit they will derive, even when interest rates are low.
That’s the word from Berry Everitt, MD of the Chas Everitt International property group, who notes that the latest statistics indicate that the average deposit now required by the banks has fallen from an average of around 18% a year ago to about 12%.
“This does of course make it easier for new buyers to get into the market, in the sense that they no longer need to have as much cash saved up and can buy now while prices are still low. However, the long-term implications may actually not be as positive, because no matter what the purchase price, a smaller deposit means a bigger loan, which means, firstly, that the borrower must earn more in order to qualify, and secondly, that the minimum monthly repayments will be higher.
“This, in turn, will restrict the borrower’s ability to pay the loan off faster and save a large amount of interest – a situation that may be exacerbated by the fact that the banks often charge higher rates of interest on low-deposit loans.”
Taking the example of a home costing R800 000, he says a 12% deposit would equate to a loan of R704 000 and a minimum monthly repayment of just over R6300, at the current prime interest rate of 9%.
“The buyer who pays an 18% deposit, however, will require a loan of just R656 000, and face a minimum monthly repayment of under R6000. He may well then be in a position to pay an additional R300 a month off his loan capital, which would enable him to pay off his home two years earlier and generate interest savings of about R108 000 – or more than twice the additional amount of deposit cash paid (R48 000).
“In short, it always pays to put down the biggest deposit you can muster, even when interest rates are low and there is an urgency to get into the market.”
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14 December 2011, 14:28:13
Many people are irked by the fact that 100% home loans are no longer freely available, but on the other hand it must be said that the bigger the cash deposit that potential homebuyers can make, the more benefit they will derive, even when interest rates are low.
That’s the word from Berry Everitt, MD of the Chas Everitt International property group, who notes that the latest statistics indicate that the average deposit now required by the banks has fallen from an average of around 18% a year ago to about 12%.
“This does of course make it easier for new buyers to get into the market, in the sense that they no longer need to have as much cash saved up and can buy now while prices are still low. However, the long-term implications may actually not be as positive, because no matter what the purchase price, a smaller deposit means a bigger loan, which means, firstly, that the borrower must earn more in order to qualify, and secondly, that the minimum monthly repayments will be higher.
“This, in turn, will restrict the borrower’s ability to pay the loan off faster and save a large amount of interest – a situation that may be exacerbated by the fact that the banks often charge higher rates of interest on low-deposit loans.”
Taking the example of a home costing R800 000, he says a 12% deposit would equate to a loan of R704 000 and a minimum monthly repayment of just over R6300, at the current prime interest rate of 9%.
“The buyer who pays an 18% deposit, however, will require a loan of just R656 000, and face a minimum monthly repayment of under R6000. He may well then be in a position to pay an additional R300 a month off his loan capital, which would enable him to pay off his home two years earlier and generate interest savings of about R108 000 – or more than twice the additional amount of deposit cash paid (R48 000).
“In short, it always pays to put down the biggest deposit you can muster, even when interest rates are low and there is an urgency to get into the market.”
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14 December 2011, 08:23:15
To earn commission, an estate agent must do more than introduce a willing and able buyer to the property seller or finalise a binding agreement of sale.
He or she, notes Jan Davel, MD of the RealNet estate agency group, must be the “effective cause” of the sale. “In other words, the buyer must be attracted to the property, or alerted to the fact that it is for sale, by that estate agent’s own marketing efforts – including, for example, the placement of advertisements or the holding of showdays.
“However this principle, which has been upheld by the courts many times over the years, can easily lead to home sellers having to pay ‘double commission’ if they do not take great care when they change their mandate from one agency to another or allow their homes to be marketed by several agents at a time.”
It also quite often happens, he says, that a seller whose property is being marketed by one agent or agency will be contacted by another agent offering to “deliver” – for a lower commission - a buyer who has become interested in the property as a result of the efforts of the first agent.
“But if a sale materialises in such a situation, the first agent will be in a strong position to claim that he or she was actually the ‘effective cause’ of sale and to claim the commission on the sale - even if the second agent has negotiated the actual sales agreement, and even if the seller has already paid commission to the second agent.”
And the ‘effective cause’ concept goes even further, says Davel. “If a person who views a property through an estate agent then tells someone else about the property and that person buys the property through a second agent, the first agent may still be regarded as the ‘effective cause’ of the sale, and the seller will most likely still be liable to pay him or her a commission on the transaction.”
The proper course of action in such instances, he says, is for the second agent to first reach an agreement with the first agent about how they will divide the commission – and to then indemnify the property seller, in writing, against any further commission claims or claims for damages by the first agent.
Indeed, any agent who does not follow this procedure and thus exposes his or her client to the risk of a ‘double commission’ claim will be contravening the statutory Code of Conduct for Estate Agents and subject to disciplinary action by the Estate Agency Affairs Board.
“In most cases, though, property sellers would be much better off if they just award a sole mandate and refuse to allow anyone else to interfere with this, or failing that, make sure that they have a written indemnity and a copy of the commission split agreement before they sign any offer to purchase where there are multiple agents involved.
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13 December 2011, 11:03:55
Adults aren’t the only ones whose lifestyles have changed dramatically in the past 10 to 20 years – children also live very differently now and their changing needs can have a big influence on home purchasing decisions and trends.
The most obvious result, says Berry Everitt, MD of the Chas Everitt International property group, is of course the growing preference among those who can afford them for homes in gated estates where children can safely play outdoors.
“Another is the rising demand for apartments and townhouses in complexes that have their own playgrounds, pools and perhaps even a crèche. And even in the suburban context, parents are increasingly looking for homes that are not only close to good schools but will also accommodate the need for their children to spend more of their leisure or play time at home.”
Writing in the Property Signposts newsletter, he says some features that are likely to appeal to these parents include a safe back garden, spacious, sunny bedrooms, and an extra play space or “media room” where children can have their computers and play their own music without disturbing the rest of the household.
“And in cases where both parents of young children work away from home, additional accommodation for an au pair or a nanny is also a plus.”
Meanwhile, says Everitt, many families are having to deal with the fact that grown children now tend to stay at home longer than before. “It is often simply unaffordable for them to live elsewhere while they study, or in rental accommodation while they save up for homes of their own.
“Consequently, homebuyers with teenagers now often choose homes with an eye to accommodating these young people at a later stage in a self-contained suite or garden cottage.”
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13 December 2011, 11:02:57
With about 3000 students a year living off-campus, the demand for suitable rental accommodation close to Rhodes University in Grahamstown is alive and well – but the demand for houses on sale not so hearty.
So says Steve Birt, managing principal of the Lew Geffen Sotheby’s International Realty franchise in the Eastern Cape town that is also home to several of the country’s top schools, who notes: “Despite a rash of new developments aimed at students since 2008, the student buy-to-let market here is still delivering good returns.
“There are a few new units still unsold at the moment, but this is only because the local investor market is saturated, and we are sure they will be swiftly taken up when they receive some outside exposure before the start of the next academic year.”
Family homes for sale, however, are likely to stay on the market much longer, unless the owners urgently adjust their asking prices, he says.
“For many years, people just accepted that Grahamstown house prices were high relative to other areas because of a shortage of non-student related development. Parents who decided to move here because of the excellent schooling available were prepared to pay a bit of a premium, and many academics were happy to rent rather than buy because they expected to have to transfer somewhere else after a year or two anyway.”
Now, though, things are different. “Since the recession of 2009, potential buyers have become increasingly price conscious and extremely resistant to any hint of overpricing. Added to this is the fact that the banks will simply not grant loans to buy properties where they don’t see a certain margin for future value growth,” Birt says
“Consequently, even homes that are well-priced in terms of the Grahamstown market are currently taking five to six months to sell – and even then may only achieve around 85% of their original asking price.”
The best-selling homes in Grahamstown currently, he says, are those priced between R700 000 and R950 000. The student flats that are available range from around R380 000 to R850 000, and monthly rentals currently start at around R2000. House rentals start at around R6000pm for a three-bedroom house.
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12 December 2011, 14:31:13
The “consumer” in the real estate sector (i.e. the buyer and seller) now has rights to open and full disclosure and these rights have been more clearly recognised by and enhanced in the new Consumer Protection Act, says Bill Rawson, chairman of Rawson Properties.
“The industry,” says Rawson, “has no problem with the more stringent transparency concepts now enforceable and by and large its leaders have expressed a wish to comply with them but there is still much ignorance among both estate agents and consumers as to how the principles of the CPA will actually work in day to day property transactions.
“Just how far, to take one example, will they impinge on the voetstoots clause?”
At this stage, says Rawson, consumers recognise that they have full disclosure rights but they too are vague as to how these can be enforced.
“No doubt the whole scene will change in the next two years,” said Rawson, “but as so often happens with groundbreaking legislation, it will take some time for a body of case law to be built up which will define more clearly the way in which property transactions have to be handled. We are pleased, however, that we in the real estate industry will be enabled through this legislation to improve our service and regain the confidence of the consumer.”
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12 December 2011, 14:31:13
The “consumer” in the real estate sector (i.e. the buyer and seller) now has rights to open and full disclosure and these rights have been more clearly recognised by and enhanced in the new Consumer Protection Act, says Bill Rawson, chairman of Rawson Properties.
“The industry,” says Rawson, “has no problem with the more stringent transparency concepts now enforceable and by and large its leaders have expressed a wish to comply with them but there is still much ignorance among both estate agents and consumers as to how the principles of the CPA will actually work in day to day property transactions.
“Just how far, to take one example, will they impinge on the voetstoots clause?”
At this stage, says Rawson, consumers recognise that they have full disclosure rights but they too are vague as to how these can be enforced.
“No doubt the whole scene will change in the next two years,” said Rawson, “but as so often happens with groundbreaking legislation, it will take some time for a body of case law to be built up which will define more clearly the way in which property transactions have to be handled. We are pleased, however, that we in the real estate industry will be enabled through this legislation to improve our service and regain the confidence of the consumer.”
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12 December 2011, 14:30:02
Any review of the year now ending in the residential property sector would have to highlight the fact that in 2011 new developments dropped off by some 70% compared to the levels of 2006/2007.
This was said by Bill Rawson, chairman of Rawson Properties, in a staff briefing in which he covered many factors affecting the residential property sector in 2011.
“Many developers took a hiding in 2011,” said Rawson, “and some big names that were prominent throughout the greater Cape Town are now either temporarily or permanently out of action.”
This, he said, was due not so much to a lack of demand which, at least in the lower middle and lower brackets, is still strong, but to bank finance difficulties.
“There are,” he said, “two sides to this: many developers can now no longer get finance unless they have the resources to mount massive sales campaigns and to achieve 70 to 80% sales prior to their bond application being approved – any many potential buyers (some of whom previously could get finance for two or three buy-to-let opportunities) are now finding that they no longer qualify for loans under the National Credit Act criteria as implemented by the banks.”
A further obstacle in the developers’ path, said Rawson, is the fact that in 2012 and thereafter new developments will have to conform to a list of “green” building regulations which, although highly commendable, will add a further 15% to the basic costs. These, he said, will affect the glazed areas (which now will have to be shaded or be more effective), roofs and slabs (which will have to better insulated) and energy supplies, which will increasingly become solar and wind powered.
“It has to be recognised,” added Rawson, “that the already serious shortage of housing is being made worse by the slowdown in delivery. In this context, the banks’ “new, more reasonable approach” to lending needs to be re-evaluated by the State, who, some people think, is not placing housing as high on their agenda as it should be.”
The only people benefitting from the current situation, added Rawson, are the landlords who are now finding that improved demand for dwindling stock enables them to raise rents.
Asked how it is that in this difficult situation Rawson Developers were able to report recently that they have projects in the pipeline for three years, Rawson said that they had had the foresight to acquire land well ahead of their work load in areas ripe for new projects – and, even more importantly, he said, they have been able as a result of having their own construction teams to pare down building prices and work only on a building (not a building and development) profit.
“In today’s market,” he said, “the independent developer employing an independent contractor simply cannot come out in the black unless he is able to offer something very special such as a perfectly positioned site.”
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12 December 2011, 14:29:06
2009 – 2011 will go down in property history as a time in which certain trends gained momentum at a pace not seen before, said Bill Rawson, chairman of Rawson Properties, in a review of the past year – and the most noticeable of these trends, he said, has been downscaling.
“At all levels in the property sector,” he said, “we saw a call for less expensive, smaller units with a concomitant falloff in the value of the more expensive homes.”
This, said Rawson, has resulted in some lower and sectional title units being developed with less than 40m² of floor area and in new lower middle bracket homes now coming onto the market with as little as 60m² of floor space. Units this size, he said, can sell for anything from R450 000 to R1,2 million and the demand for this accommodation can only increase.
Upper middle and upper bracket homes, said Rawson have been through a period in which price drops in excess of 30% were the norm – and in this market it is still possible that the price drops will be seen but no longer at the levels experienced in 2010/2011.
This situation, he said, hits the retiree hard: he too wants to downscale but he cannot sell his existing home at a price acceptable to him and is often forced to stay on in the larger home.
By contrast, in the lower priced categories, said Rawson, signs of price stabilisation are now evident, with price growth beginning to match the inflation rate.
The dire economic conditions, added Rawson, have greatly increased the tendency to share homes.
“What we are seeing in SA was, I found, also happening in the USA: offspring will stay on in their parents’ home for five or six years. Young couples will also spend the first years of their married lives with parents – and renting out rooms to all comers is now a common practice.”
A spinoff of the current situation, said Rawson, is that rentals are rising and rent increases, he estimates, are now around 8% per annum and investors in areas like Table View are finding that they can often get 7 to 10% return from day one. There have, he said, even been cases where a 12 to 13% return is achieved from the outset.
Farsighted buy-to-let investors are, therefore, once again building their portfolios and are often faring better than those who stuck to stocks or the money market.
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12 December 2011, 14:20:27
When the history of the SA residential real estate industry comes to be written, the period through which it has just passed could, says Bill Rawson, chairman of Rawson Properties, become known as the era in which the banks treated the general public and bond originators poorly.
“Huge damage to the residential property sector has been caused by the banks’ ultra-strict application of the National Credit Act,” said Rawson, “but in view of their previous big losses in the housing sector that has become partially accepted - subject to the proviso that the Act could be more leniently and flexibly interpreted.
“However, no one accepts or condones the banks’ treatment of bond originators.”
Certain banks, said Rawson, had “declared war” on bond originators and refused point blank to accept a bond application from them. The banks also punished clients by applying a far stricter credit scoring model against those who applied for home loans via independent mortgage originators than those who came directly to them. This resulted in many not being able to secure home loan finance.
“Double standards like this,” he said, “are difficult for the industry and the consumer to understand. It could be said that this strategy was fuelling the recession and helping to create unemployment.”
The banks’ conduct was, he said, an abuse of power and their almost monopolistic control of bond finance.
One of the banks’ arguments given for this practice, said Rawson, was that it would enable them to reduce their risk but, he said, there is absolutely no evidence that the credit and qualification testing done by bond originators has been any less effective than that done by the banks – indeed, with their years of experience, many bond originators could be better qualified to assess an applicant than newly appointed staff working to a rigid scorecard system.
The banks then made life even more difficult for those bond originators with whom they did do deals by cutting their commissions by 50% – which in many cases forced them to go out of business – their earnings were simply too low to continue this valuable service to the industry.
There is, however, hope for the future.
“Recent good news,” said Rawson, “is that the bond issuers seem to have eased up on their credit scoring and are now granting loans more generously than for some time. This is extremely positive as it could bring a lot of life into the property market in 2012.
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12 December 2011, 14:19:14
If right now you are looking for encouraging news about the state of the property market worldwide, three bits of information picked up by Lanice Steward, managing director of the Cape estate agency, Anne Porter Knight Frank, could be appropriate.
The first is that, according to Anne Porter Properties’ UK associates, Knight Frank, there has been a marked shift among investors into property. This, said Steward, appears to be the retreat to safe haven bricks and mortar which takes place every time a big financial crisis hits the world’s stock markets and at the moment, she says, European asset holders are exceptionally worried about the future of the Euro and of the Eurozone.
“So, once again, property is proving its value and attraction in difficult times.”
The second surprising fact, said Steward, is that the US housing market is now turning over homes at 80% of its previous levels.
“If you read the less well informed reports,” said Steward, “you might get the impression that sales are down by at least 50% but that is not the case. Furthermore, although average values dropped by ±45%, they are now back to within 32% of previous values – again, therefore, property is showing a resilience that other asset classes cannot match.”
The third encouraging fact, said Steward, is that in top-flight cities like London, Paris, Munich, New York and Toronto, the prime central business district residential properties have completely shrugged off the impact of the recession.
“Knight Frank report that in central London prime property prices,” said Steward, “have risen 12,5% in one year and 38,2% since March 2009. Market prices are now 5,2% above those of March 2010 and have in fact never been as high as this before.”
Liam Bailey, head of Knight Frank’s residential research team, predicts further price growth in 2012 in central London but at a slower pace.
Footnote: the Knight Frank prime central London index, established in 1976, is the longest running and most comprehensive ongoing monitor of housing prices in Belgravia, Chelsea, Hyde Park, Knightsbridge, Kensington, Marylebone, Mayfair, Notting Hill, parts of the Thames South Bank and related outlying areas such as Canary Wharf, Hampstead and Wimbledon.
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12 December 2011, 14:17:08
The Western Cape Institute of Estate Agents ladies’ breakfast held recently at the Atlantic Imbizo in the V & A Waterfront was addressed by five leaders in the real estate sector – and, says Dianne Brock, general manager of this branch of the Institute, although this was a lighthearted end of year function, much the same message came though from every talk.
That message, she said, was that today’s property professional has to “come to the table” armed with market and economy data, legal knowledge and other relevant facts.
“We are no longer in an era where negotiations can be conducted largely by emotion,” she said. “Today’s professionals need well-researched data to support their statements.”
The speakers at the breakfast were:
- Lanice Steward, managing director of Anne Porter Knight Frank and vice-chairman of the Institute, who asked the question, “Are we insane?” in relation to the knowledge agents “give away”.
“We need,” said Steward, “to value the time and the knowledge we have acquired and be more careful about how we make both available to clients for no reward. There is a regrettable tendency among the public to get all the information they can from us and to give nothing back in return.”
Steward joked that estate agents should now adopt the current practice of toy-toying when they feel hard done by and dance outside the doors of SA’s banks in protest against their reluctance to issue mortgage bonds.
“Regular vigorous toy-toying,” she said, “might even enable us to cancel our gym memberships.”
- Vivien Marks, CEO of the rental training and assessment group, and a board member of the Housing Rental Tribunal.
“Marks,” said Brock, “emphasised the need to continue training, raising the standards of all agents still further. What has been achieved in the last few years is admirable but training has to be ongoing. The new high levels of knowledge and skill have to be raised still further.”
In today’s property market, said Marks, a knowledge of tenants’ rights is especially important. These have been given a new dimension by the Consumer Protection Act.
She then discussed cases taken to the Tribunal in which tenants’ rights had been upheld against ruthless non-compliant landlords.
- Melanie Coetzee of the legal firm, Smith Tabata Buchanan Boyes. Coetzee spoke of the alternative ways of generating business in today’s difficult market.
“Again,” said Brock, “the message was that knowledge opens doors and enables the agent to add value to his service. The agent with an extensive knowledge base on which to draw is more likely to be able to build long term relationships based on trust.”
- Janine Barry of Remax. She, too, said Brock, stressed that a database of statistics and an in-depth understanding of both property and national economics are essential in dealing with today’s market.
- Pam Snyman of Pam Golding Properties. She affirmed that in today’s market it is essential to offer more than what was previously acceptable. The ability to do this, she said, depends largely on the knowledge that the agent has assimilated.
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12 December 2011, 14:16:12
“There is a clear intent in businesses (including some labelled as “unsustainable”) to take the necessary steps to ensure environmental sustainability - and many companies are already doing incredible work at promoting sustainable business practices.”
This was said by Gunstons Attorneys director, Garth Watson, on his return from the COP17 conference in Durban.
“It was,” he said, “refreshing, after listening to hours of debate on the complexities of climate change law and policy to hear many encouraging reports from companies which are just “getting on with it”, finding creative solutions to their environmental problems. Meeting the challenges of climate change and environmental degradation will, it seems, to a large extent be in the hands of individuals and the private sector collaborating to take responsibility on behalf of the global community and, more particularly in Africa.”
Gunstons Attorneys, said Watson, is determined to be one of those generating new solutions to environmental challenges. It has, therefore tied up a strategic partnership with an environmental legal compliance business, The Environmental Law Consultancy (The ELC), one of the oldest firms of its kind in South Africa.
The ELC now operates from offices in the same building as Gunstons’ offices in Steenberg Office Park, Tokai and will liaise with and draw closely on the expertise of all Gunstons’ departments, especially the commercial, environmental and property divisions.
Grant Gunston, Senior Director at Gunston Attorneys, said that the already-defined intention is to grow the ELC's business and this, he believes, should be relatively straightforward because "there is a huge need for informed and responsible advice on environmental matters generally as well as health and safety law".
Peter Flynn, ELC’sBusiness and Systems Manager, said that the backing of Gunstons Attorneys would enable the ELC to provide new services and technology and to widen the range of products that they offer.
“Clients,” he said, “will have to have competent legal compliance assistance across all areas of their business operations, covering the full spectrum of South African legislation. This will be especially necessary as new legislation begins to have significant impacts across traditional company verticals.”
The ELC, said Flynn, has been in existence for 20 years. It focused on environmental legal compliance in its early years before expanding into occupational health and safety and, more recently, other areas.
"Our goal has always been to assist any company or organisation whose activities impact on the natural environment. We try to see that they do so in a legally approved, responsible and sustainable manner."
ELC’s clients, he said, have tended to be mines and manufacturing entities such as processing, packaging, canning and bottling plants as well as property developers. Most already have “massive” operations in South Africa and are continuing to expand and/or to upgrade.
“No company is too small for us to help. We have shown that we can be useful to entities of all sizes.”
The ELC's clients, added Flynn, tend to have two motives for partnering up with them.
"The first is a genuine desire to avoid harming the planet and/or their work place or community. The second is the growing realisation that the penalties for non-compliance imposed by the state can be onerous in the extreme: they often run into many millions of rands. For example, a Witbank based materials producer was recently fined R3 million for contravening the National Environmental Air Quality Act even though in virtually every other way the company was already legally compliant."
Flynn commented, too, that many of the 'green' companies offering specialist advice and services (for example in the retro-fitting of buildings) are themselves often not fully compliant and, in fact, ignorant of much of South Africa's environmental legislation.
Watson added that the steadily increasing prosecutions of businesses for not complying with environmental laws have compelled companies to become more aware of these laws but, he said, many have shown a willingness to “go beyond statutory compliance” and adopt best practice management systems and the use of creative new technologies and systems to ‘green’ their companies.
“Many companies are well down the road of sustainability”, he said.
Trudie Broekmann, Gunstons Attorneys Commercial Law Director, said that there is a growing need for a 'one-stop' legal service to ensure compliance not only with Environmental, Safety and Health matters but also with the growing body of other law affecting business operations such as the Companies Act, the Competition Act and the Consumer Protection Act, where, she said, the penalties for non-compliance can also be very high.
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12 December 2011, 14:15:25
A recent article in the UK’s widely read “Daily Telegraph” had the following first paragraph:
“The Euro is in crisis. Stock markets are in freefall. Two prime ministers have been sacked. Italian debt is at record levels and Spain is about to have an early election. Across the pond, America’s annual deficit is now measured in trillions.”
The article then went on to ask where, if anywhere, the beleaguered First World investor can find a safe property haven investment suitable for holiday use. The answer to the question was given in a survey done by the same newspaper. Guess what? South Africa is ranked sixth in the world in this “Daily Telegraph” survey.
Top of the list was Canada, second was Hong Kong, third was Switzerland, fourth Mauritius, fifth Gibraltar and then came South Africa, followed by Barbados, St Lucia and the Cayman Islands.
Those conducting the survey were quite frank that they regarded the regular use of English as a bonus point in assessing their destinations. Also looked at by the survey was how seriously the host country respected free enterprise and property rights and whether the areas under discussion offered easy access to First World facilities such as banks, legal firms, medical centres, airports, hotels and restaurants.
South Africa is praised for having “endless countryside, unspoilt villages, a burgeoning wine culture and a wonderful year-round climate”. Everyone, said the report, speaks English (of some sort?) and the economy is seen as having been less volatile and less affected by Europe and the USA’s economic problems than much of the rest of the world.
Most important of all, however, says the survey, the prices of homes in South Africa are exceptionally reasonable given the fact that the exchange rate is heavily skewed in favour of the First World investor: a three room home in the vineyard encircled Oakwood Estate in Hout Bay, a gated security development, can, reports the survey, can be bought for £333,000. This would be a low price for the average high net worth individual buying internationally.
Lanice Steward, Managing Director of Anne Porter Knight Frank, who is quoted in this article, said that the survey simply confirms what APKF has been saying for some time.
“The simple truth,” she said, “is that for an English speaking holiday property investor South Africa - and more particularly the Cape Peninsula - offers virtually everything that the typical overseas property investor is looking for.
“Once an overseas visitor arrives in this country, despite our crime or negative image,” said Steward, “persuading them to buy is seldom difficult and APKF is looking forward to being contacted by at least 50 potential overseas buyers this summer season.”
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12 December 2011, 14:14:09
There has never, says Tony Clarke, Managing Director of Rawson Properties, ever been a time when the inexperienced property buyer could get as much good advice from the media as he can at present. Property newspapers and the sector’s online media, he said, are literally packed with good information and useful data - but, it seems, much of this is overlooked by those who are on the hunt for homes.
Asked what advice he regards as particularly important in today’s market, Clarke said that the first and best advice is ‘beware of the difficulties that await the go-it-alone buyer’.
“Time and again,” he said, “I have seen people going this route get into difficulties.”
Dealing directly with a private seller may appear to be a shrewd move, he said, but experience over many years has shown that it is almost always essential to call in the services of a professional valuer (or an agent whose valuations are known to be totally trustworthy), an attorney and, if possible, a construction expert.
“Almost weekly,” said Clarke, “we find ourselves having to counsel those who have paid too high or agreed to difficult conditions in the sale. We are also regularly confronted by people who have bought a home with a serious latent defect of which the seller was quite possibly genuinely unaware. It pays every time, therefore, to spend a few extra rand on hiring experts so as to avoid mistakes of this kind.”
The second important tip, said Clarke, is ‘find out in advance the size of the bond for which you qualify’.
This, he said, can best be done by talking to a qualified bond originator or your bank, if you have a good relationship with it. Those who do not do this frequently waste much time in researching and looking at properties that are, in fact, beyond their means.
Tip three, said Clarke, is ‘do not take on burdens that may later prove too heavy’.
“Quite frequently,” he said, “the prospective buyer will find that his bank is willing to lend slightly more than he anticipated. He then goes looking for a more luxurious and expensive home than he originally budgeted for - but in the process he often fails to tot up other expenses such as food, clothing, schooling, transport, electricity, rates and levies, all of which combined are likely these days to increase his household expenses by 10% to 15% per annum.
“He probably also makes no allowance for an unforeseen drop in income, e.g. the non-payment of a bonus or additional cheque, which in the present economic conditions is also a very common occurrence.”
Conservative budgeting, said Clarke, is therefore the only assured road to peace of mind.
His fourth tip, said Clarke, is ‘to try to avoid being too much swayed by emotion in the purchase process’.
“Often a buyer will walk into a house, get an extremely good feeling about it and immediately want to own it. At Rawsons we encourage prospective buyers to take a second visit and we then try to get them to list their needs and their wants, ticking off each box as and when it is met. Lists of this kind can show that the house is, in fact, inadequate.”
It is, added Clarke, always a good idea also to check the neighbourhood: unruly teenagers, drug related problems, traffic congestion or poor schooling might all be valid reasons for looking elsewhere.
It is also important, he said, to check the zoning of any vacant plots nearby.
“Sadly,” he said, “beautiful views can quite legitimately be wiped out by major new developments making completely legal use of the ground to erect multi-storey blocks.”
When signing for a property, advised Clarke, it definitely pays for the buyer to have a lawyer on hand and ensure that every clause is explained. It is also, he said, wise never to make an unconditional offer. There should always be some conditions that in the deal give the buyer room to “move”.
In the agreement itself, he said, every possible detail should be specified in writing.
“South African property law dictates that a property transaction must be in writing, documenting the names the names and addresses of the parties concerned and the price. However, it is important to make sure all involved are agreed on such other matters as the date of occupation and/or the date of the owner’s departure (all specified in writing). Details regarding which fixtures and features are to be left in place are sometimes agreed only verbally and this can lead to serious problems.”
Once you have bought, said Clarke, do not indulge in buyer’s remorse -an all too common experience.
“Typically,” he said, “the buyer will go through a euphoric phase, followed by a downturn in which he finds reasons for disliking his new home - it may have blemishes and faults of which he was not aware at the time of purchase. This downturn must be recognised as a normal process - and worked through. Before long, the factors that made the home attractive to the buyer will reassert themselves in his mind and if he is at all mature he will find himself grateful for having acquired an asset which in the long run will always be an appreciating one.”
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12 December 2011, 14:07:44
One of the subjects on which Bill Rawson, chairman of Rawson Properties, touched in his recent comprehensive year-end review of the real estate industry was the stringent educational criteria which now have to be met by the aspirant agent or franchisee who moves into real estate marketing for the first time.
Rawson was one of those who previously always stressed the need for qualifications but, he says, the problem now is that over-regulation is strangling the industry. Already, he said, it has caused a declining intake, fewer jobs becoming available and those who are already there could become an “elite” in the industry.
“The government’s declared aim of creating more jobs has been completely overlooked in the property marketing sector,” said Rawson. “The number of agents now employed has dropped from 96 000 to 32 000 and there are no signs of a pickup as yet even though we at Rawsons know from the ongoing franchise applications that property today is seen as a suitable career for a far wider spectrum of people. There is a marked reluctance to step forward and do such intensive training.”
The intern mentoring system, said Rawson, has two defects: it can result in a highly qualified person such as a lawyer or a former schoolmaster having to report to a qualified agent who in most respects may be less intelligent and less competent then the newcomer and who may, therefore, lose his respect.
“Secondly, the system requires only a year’s continuous employment, irrespective of any outcome, positive or negative.”
It can, therefore, said Rawson, allow a completely incompetent agent (who is nevertheless quite good at passing examinations) after his first year to become fully qualified even though he may not be suitable for the job.
The same tendency to over-regulate, said Rawson, was seen in the State’s arbitrary promulgation of new property laws without any consultation with those in this sector, whose ability to function effectively can be easily hampered by inappropriate legislation.
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12 December 2011, 12:24:55
Property buyers and tenants who wait too long to make up their minds are losing out on good deals.
"In our experience," says Nelis Bezuidenhout of the RealNet Wapadglen franchise in Pretoria, "properties that are priced right and offer good value sell within a week and dithering buyers are losing out on good opportunities."
Bezuidenhout, who specialises in townhouses in the eastern suburbs of Faerie Glen, Garsfontein, Olympus and Wapadrand, adds that the Internet is a double-edged sword in this respect.
"The ‘Net has certainly made it easier for prospective buyers to source properties for sale but, at the same time, many buyers are so overwhelmed by the number of listed properties that they find it difficult to narrow down their search.
"And some buyers are so confused by the perceived abundance of properties on offer that they cannot even settle on a realistic price bracket. For instance, buyers will want to view properties in the range between R500 000 and R1m and then find it very difficult to compare value. This leads to further delays - and often when they do make up their minds the property of choice has already been sold."
Bezuidenhout advises prospective buyers to sit down and carefully weigh up what type of property they want at what price before they start viewing properties. "It is easier to make a sound decision if you are very clear about what you really want and what you can afford. You will also save a lot of time and effort if you do not view unsuitable properties."
He has the same advice for prospective tenants. “A few years ago, townhouses in Pretoria East were predominantly targeted by investors who let their properties. "However, most current buyers are buying property for own use, which has put rental stock under pressure. Prospective tenants who dawdle to sign a lease often find that someone else has beaten them to it."
He adds that now is a good time to buy townhouses in this area since they have generally held value and even showed small year-on-year price escalations since 2009.
First-time buyers and parents who have children attending tertiary institutions in Pretoria are currently active in the market. Student accommodation in the area has grown more popular among out-of-town buyers because it offers better value than suburbs close to campuses. Bezuidenhout says a one-bedroom flat in Hatfield, for instance, now costs virtually the same as a two-bedroom unit in the eastern suburbs. "And many parents also prefer to let their children stay in quieter suburbs further away from campus."
Stack units in Olympus are especially popular at the moment. Two-bedroom units of 85sqm on the first floor now sell at prices ranging from R530 000 to R550 000 while similar units on the ground floor sell from R550 000 to R590 000, he says.
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12 December 2011, 12:24:02
Difficulty in obtaining home loans, distressed selling and a lack of new development have combined, over the past two years, to create a shortage of rental property in many parts of the country.
On the other hand, says Berry Everitt, MD of the Chas Everitt International property group, there are many empty-nesters and others with large family homes who would like to downscale now to smaller properties that are less costly to run, but are doubtful about getting the price they want in the current market.
“And one solution to both these problems is for the homeowners to convert some of their extra space into a flat (or even two) that they can let. The extra income will help to offset the recent increases in municipal rates and electricity tariffs, and help them to keep their homes in good condition until they think the time is right to sell.”
Writing in the Property Signposts newsletter, he says that an added benefit of this decision, especially worth considering for older homeowners, is that having additional people living on the property, and coming and going at different times, tends to improve security.
“Homeowners do need to take especial care, however, with two aspects of this plan, the first being the selection of contractors if they need to make alterations to create their rental units.
“Secondly, it is vital that they let only to suitable tenants, and this is where the help of an experienced estate agent is invaluable.”
Everitt says it is imperative to keep the rental arrangement on a businesslike footing – even if you are renting space to friends or family - and that having the backup of an independent party that can check creditworthiness, deal with the conditions of the lease and collect the monthly rental will relieve you of a lot of strain and possible family friction
“A local agent will also, of course, be able to advise you what a realistic rental in the current market would be.”
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09 December 2011, 08:55:06
Lack of affordable housing and tight credit have boosted the residential rental market in the Mpumalanga mining town of Witbank.
Demand for small units is particularly high, says Sharlene Doogan of the local RealNet estate office. "Once again, cost is a factor and with the cheapest units now commanding rentals of just under R4000 a month, tenants tend to shy away from family homes and target flats, apartments and townhouses instead."
Although there is steady demand among prospective buyers for homes in the R600 000 to R900 000 price range, not many sales are concluded because most buyers struggle to come up with the required 10% deposit to obtain home loans - and find it difficult to save enough additional cash for related costs such as bond registration and transfer duty, Doogan says.
Bachelor flats are currently the cheapest rental units. Monthly rentals start at around R3800, while more upmarket one-bedroom apartments achieve average rentals of R4200 a month.
Two-bedroom apartments are rented out for around R5000 a month while rentals for two-bedroom townhouses range between R5000 and R8000 a month, depending on location.
The tenant profile is diverse and includes entrants to the labour force, young couples and retirees, as well as upgraders and downgraders who rent while shopping around for good value before they buy new property.
Doogan says the high demand has pushed rentals up by between 6 and 8% in the past year and adds that the trend is likely to continue, unless conditions change to allow more own buyers to enter the market or more developers to launch new units. "As it is," she says, "rental stock is scarce and available units are usually taken up within a week.
"This creates long-term investment opportunities for prospective landlords. Purchase prices of rental units in high demand currently start at about R400 000 for one-bedroom apartments and from R620 000 upwards for two-bedroom townhouses."
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02 December 2011, 08:59:51
Nestled between towering mountains in the beautiful Cape winelands Franschhoek is an area that is world renowned for its spectacular beauty, superb Cape wines and world class restaurants. Originally settled in 1685 by French Huguenots who fled their homeland, Franschhoek was originally named Elephant’s Corner after the vast herds of elephants that roamed there. But soon after the French settled, the area changed its name to Franschhoek (French Corner). The heritage of these first settlers lives on today through the Huguenot monument situated at the top of the village. While Franschhoek is not generally considered as a holiday destination by South Africans, it remains popular with overseas guests especially those from the UK, Netherlands and Germany. This is according to Peter Hager, Broker/Owner of RE/MAX Prestige Country Properties, which services Franschhoek. He notes that Franschhoek has, and always will be, a sought after and desirable location for both local and foreign property investors. “In the past, investment in Franschhoek was divided equally between local and foreign buyers. However, that demographic has changed and we now have more local investment entering our market than foreign. A large number of buyers in the area are parents whose children are going to Stellenbosch University as they want to be close to the university but don’t want to reside in Stellenbosch,” says Hager. Speaking particularly of the leisure property market in Franschhoek, Hager says that it has performed well as far as demand is concerned; however, property appreciation and selling prices have dropped due to the global downturn. Adrian Goslett, CEO of RE/MAX of Southern Africa, notes that since the South African property market has resumed to normal conditions, it is anticipated that demand for leisure properties will slowly increase. “However,” he says, “it should be remembered that the leisure property market always lags behind the property cycle by about a year to 18 months. Therefore, while noteworthy recovery is not expected in this sector for some time to come, there are great leisure investment opportunities available to buyers.” The most popular leisure properties that Hager currently has available are two-bedroom cottages with swimming pools, or apartments in secure complexes with pools which are priced between R1,5 million and R4 million. He says that overseas investors often place their holiday homes in a letting pool. For example, Hager is currently marketing a two-bedroom, two-bathroom cottage with a country kitchen and lock up garage for R2,5 million. This home has, in the past, provided its owners with R250 000 per year in rental income from holiday lets. “This home would usually sell for R3,5 million, which would be the price we would expect to achieve as the market improves.” Full title properties, which account for close on 60% of the area’s total properties, according to Lightstone, a property data provider, are in higher demand among leisure buyers as the sectional title levies and increased care costs often put leisure investors off. “While not a typical seaside holiday spot, Franschhoek holds the lure of culture and history, exceptional cuisine, a solid property investment market, along with excellent wine tasting and wine farm visits. The appeal lies in the fact that it is away from the crowded mass of beach holiday makers but close enough to go to the beach and Cape Town for all the tourist attractions should one so wish,” Hager concludes. For more information contact RE/MAX Prestige Country Properties on 021 876 3147.
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02 December 2011, 08:58:38
Many of the 19 Rawson Properties franchisees who returned recently from the USA’s National Association of Realtors (NAR) conference in California have, says Bill Rawson, Chairman of Rawson Properties, faced a barrage of questions on the state of the US economy. But, what are the facts about the US housing market, as Rawson sees them? “The first point to be grasped,” said Rawson, “is that although our residential market was not so long ago at its lowest point since the 1976 riots, we did not feel the impact of this latest debt crisis quite as severely as the US market did. This means that our recovery will almost certainly be ahead of theirs.” At the peak of the recent boom, i.e. in 2006, said Rawson, US realtors sold five to six million houses in one year. By 2010 the figure had dropped to 3,5 million. The number of homes currently for sale is around 4,5 million, but, he said, sales on an annualised basis have now increased to over 4,9 million, a sure sign that an improvement is taking place. “Those who read only the less informed reports,” said Rawson, “have often picked up the idea that the US housing market is completely dead. However, as the figures quoted show, it has continued to have considerable activity and, what is more, sales are now rising month-on-month by a rate of almost 2%.” It is, said Rawson, especially interesting to note that the average age of homebuyers has risen considerably from 39 to 43 years and that the US housing investment market, as in South Africa, is definitely showing signs of a revival. “From the conversations I had in the USA this time,” said Rawson, “it seems that the older generation has retained its faith in property. Those with cash resources are often climbing into the housing market: no less than 30% to 35% of recent sales have been to cash buyers. This is an even higher proportion than we are seeing currently in South Africa.” Does this mean that the younger US buyers are losing out? “The NAR figures reveal that some four million potential younger buyers are currently still living with their parents, a situation not dissimilar to that which we see in many parts of South Africa. However, it has also been estimated that this situation will be greatly relieved within four to five years.” As in South Africa, said Rawson, the steady return of investors to housing appears to be driven by fast increasing rentals (up 8% in one year), by still low prices (some 33% off the 2006 peak), by the nil or minimal interest rates paid in the current money market and by the fact that bonds can be had at interest rates as low as 4,1%, i.e. only 0,1% above the current US inflation rate. The popular Jumbo mortgage bond does, however, also involve transferring one’s bank and saving accounts (if you have them) to the bond issuer. “If the same policy was adopted in South Africa,” said Rawson, “mortgage bond borrowers here would be getting bonds at ± 6%. For obvious reasons this is unlikely to happen, but a significantly lower rate of interest rate specifically for mortgage bonds – possibly state subsidised – is a possibility that should, I believe, remain open for discussion.” Another option, said Rawson, could be to issue 100% bonds to a special category of ‘reputable’ borrowers. In the US, he said, any war veteran can qualify for a 100% bond, provided he has a satisfactory income stream. To date four million Americans have already availed themselves of this source of bond finance. US residential developers (again, as in South Africa), said Rawson, have temporarily almost gone out of business. “The rate of development is at a 40 year low. This, of course, is disastrous for those involved in the development sector, but the lack of new stock, coupled to the steady take-up of repossessed properties, will help prices to achieve ‘normal’ levels quicker than was expected. The NAR estimates that this will probably take another two years. “This speed-up could, I believe,” said Rawson, “be faster if the government grasped the nettle and made a more determined effort to reduce the amount it owes. This would involve further cutbacks on defence lending, welfare and infrastructural development, while at the same time imposing higher taxes all round, especially on the super rich. However, the Americans to whom I spoke almost all agreed that they would accept this. It is the government’s lack of courage in this respect, they told me, that is preventing firm action here.” Asked if his meetings and discussions in the USA had changed any of his well-known views on property, Rawson said, “The simple answer is no.” “What is taking place in the USA is that those who can afford it are building their portfolios in expectation of better times. In South Africa we are witnessing much the same trend - but the good news is that in both countries today’s investors are conservative, well resourced people acting responsibly within their financial limits. In both centres, therefore, a new stability is being imparted to the housing sector and this will pay investors handsomely down the line.” Particularly good buys in the USA, added Rawson, are taking place in the holiday/retirement areas such as Las Vegas and Florida. Here, too, he said, there are similarities in South Africa. “Properties on the South Coast of KZN and along the Cape West Coast are currently offering excellent buying opportunities that will not be available in one to two years’ time.”
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02 December 2011, 08:56:46
Aida National Franchises has acquired a new office in Fish Hoek with the conversion of an existing estate agency to the tried and trusted South African brand. Co-owner Maggi-Mae Vidas says the office, established in 2008, has built up a sound market presence and she looks forward to introducing Aida's expertise and solid reputation to the existing client base. Aida Cape Lifestyle Homes will serve the whole Cape Peninsula market. Maggi-Mae says investors are still buying holiday properties in the area although sales are slower as investment buyers take their time to source good value. "Our core market remains local buyers who are attracted by the comfortable lifestyle offered in Fish Hoek and surrounds. "The area is still very popular among retirees who prefer a comfortable seaside lifestyle within reach of a host of amenities. And then, of course, the more temperate climate here clinches the deal for many retirees as well as family buyers. Superb views are an added bonus for many." The area has a wide variety of properties on offer, including entry-level flats at prices from R500 000, comfortable family homes starting at about R1m and luxury homes with price tags of up to R10m. Maggi-Mae adds that the peninsula offers price advantages to buyers. "Properties here offer better value than similar areas closer to Cape Town's city centre while office workers can comfortably commute to workplaces by train. "Another factor favouring Fish Hoek is that the area is very family-friendly. Good schools, a hospital, several banks offering forex, and a host of excellent restaurants are some of the conveniences that residents enjoy. "And then there is the family-sized beach with lawns for comfortable weekend outings, while the local sailing club launching off the beach adds a touch of glamour. A resident Great White Shark has become something of a local mascot and attraction - but lifeguards make sure that swimmers remain safe when the predator puts in an appearance," she says.
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02 December 2011, 08:55:49
The government and business should pay much more attention to franchising and give it a bigger role in their planning for economic growth and employment creation through the development of the small business sector. So says Jan Davel, MD of the RealNet national estate agency franchise group and chairman-elect of the Franchise Association (FASA), who believes franchising is one of the most important keys to solving some of the country’s biggest problems including lack of education, unemployment and poverty. Quoted in the latest issue of Be Your Own Boss, he says that with regard to job creation, for example, almost 500 000 new businesses will have to be created if government is to meet its target of 5m new jobs by 2020. “And franchising has already proved that it can fulfil the criteria for small business expansion and job creation. While formal sector employment fell alarmingly in the two years from 2008 to 2010, the franchise sector, which represents 17 different industries, created 2300 new business outlets and more than 28 000 new jobs. “Indeed, franchising can go a long way in stimulating entrepreneurship and helping people to establish the successful small businesses that are the backbone of the economy and job creation. It provides inexpensive, measurable mechanisms to provide training, facilitate skills transfer and unlock opportunities in local communities.” Consequently, says Davel, it is important for both the banks and more would-be business owners to understand that once a franchise system has been tried and tested, one can take well-informed decisions based on realistic financial projections – and subsequently mitigate risk far better than in the case of independently-owned businesses. “A franchise business is simply a much safer option for both the borrower and the lender than an untested new business, no matter how good the business plan.” Having said that, however, he does not believe that the biggest challenge facing franchising at the moment is the current economic climate and banks’ conservative lending policies. “The biggest challenge now is to get the message across about the very important role franchising can and does play in the economy, and to expand the concept to other industries. “Countries such as Australia, Brazil, the UK and US have far more franchised industries than we do, and just looking at some of our country’s current challenges, I think energy and water saving solutions, waste-recycling, health care options and education, for example, all offer excellent opportunities for franchise development now, and that we will possibly also see the development of public-private franchise systems for the delivery of government services in the not too distant future.”
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11 November 2011, 08:07:33
 The full title units at the new Twee Fonteine retirement village near Hermanus in the Western Cape will all have two bathrooms and two or three bedrooms plus a single or double garage, as well as a spacious veranda. The units are being marketed by Aida Onrus and prices range from from R1,325m to R1,8m. |
With its combination of seaside tranquillity and modern convenience, Onrus is a perfect retirement location, and soon now it will also have a purpose-built retirement village where residents can fulfil their dreams of a “cottage by the sea”.So says Deon Esterhuyse of marketing agency Aida Onrus, who notes that groundworks for the development, named Twee Fonteine, have already been completed and that the community centre at the heart of the village is due for completion by the end of next year. “Meanwhile, although building has just started on the first free-standing home in the village, which will serve as a showhouse, six of the homes have already been sold, and enquiries are being received daily.” There will ultimately be 75 full title homes in the development, as well as 42 sectional title units, he explains. “The full title units, ranging in size from 128sqm to 183sqm, will all have two bathrooms and two or three bedrooms plus a single or double garage, as well as a spacious veranda. There will also be the option of an added braai room at a cost of below R4 000/sqm. “Sited on stands ranging in size from 252sqm to 498sqm, these homes are being sold on a plot-and-plan basis at prices from R1,325m to R1,8m, and buyers will have 12 months from the date they purchase the stand to start building.” The sectional title units, ranging in size from 28sqm right up to 83sqm, will be incorporated in the central building housing the community centre, which will also contain a kitchen, dining room, ladies’ bar and lounge, assisted living and frail-care facilities. Prices for these units currently range from R560 000 to R1,66m. All prices include VAT. Esterhuyse says this is an ideal investment opportunity for those who would like to rent their units out prior to their own retirement in future. He notes that the whole development will enjoy a high level of security, with a single guarded access point and a perimeter wall topped with electric fencing. “Each home will also be equipped with a panic button connecting it to the nursing station in the community centre, and Elcare, which operates in many retirement villages around the country, will provide professional medical care.” Finance is available for qualified purchasers. *For more information about Twee Fonteine, contact Aida Onrus on 028-316-3393 or aidaon@mweb.co.za, or Deon Esterhuyse on 083 284 0027.
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11 November 2011, 08:06:45
“No corporate or other board in SA could have had better service than the Institute of Estate Agents’ Western Cape branch has received from its directors over the past year,” said Ivan Neethling, Chairman of the Institute, at its recent AGM which was held in the Imbizo Conference Centre at the V & A Waterfront, attended by 97 members. “The defining characteristic of all the board members,” said Neethling, “has been a willingness to “go beyond” what would normally be expected of them and give generously of their time, despite being busy and despite directors never being remunerated for their time. This dedication in turn has given me additional motivation to serve.” The good news, added Neethling, is that all the current board members have made themselves available for the coming year. The list includes: Michael Bauer, GM of IHFM, Vice Chairman of the Board and in charge of the board’s finances; Bill Rawson, who, said Neethling, has recently received a Nedbank Lifetime Achievers Award for service to property; John Nurse, who has more than ten years service to the board, in the past term serving on ethical queries and events; Mark Marks, one of the longest serving committee members with over 25 years service to the Institute; Anton du Plessis, CEO of Vineyard Estates, who oversees the Institute’s advertising and marketing efforts as well as ethical enquiries; David Beattie of Chorus Letting, who is responsible for overseeing financial administration; Lanice Steward, MD of Anne Porter Knight Frank, responsible for the events and fundraising portfolio; Kevin Wynne, owner of Kevin Wynne Valuers and whose primary responsibility is ethical and legal matters; Howard Markham, GM of Pam Golding Properties, who has been responsible for the Institute’s IT/website and the PropStats data service; Emil Weiss, a Rawson Properties franchisee in Saldanha Bay area, who acts as the liaison link to the West Coast. One new board member was elected to the board AGM - Michelle Lister of Pam Golding Properties. Neethling said that the Western Cape Institute of Estate Agents controls a network of committees and sub-branches throughout the area it serves and is providing valuable ongoing training (e.g. with legal updates and the NQF4 and NQF5 qualifications). Certain members, he said, have now qualified as far as NQF5. “The Institute’s online property sales statistical database, PropStats, has,” he added, “now recorded 27 000 transactions totalling R50 billion since 2007 – an excellent achievement.” “The Institute’s finances are satisfactory and membership is solid.”
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11 November 2011, 08:02:38
Family buyers are making their presence felt in the property market and are finding their ideal home in Durban North, says Grant Gavin, Broker/Owner of RE/MAX Panache, whose two offices service La Lucia, Durban North and surrounding areas along the KwaZulu-Natal north coast.“Demand along the north coast has always been strong among family buyers, and remains so largely due to the fact that there are excellent schools in the region ranging from pre-primary school all the way up to senior level. The schools, who often prioritise their intakes based on the family’s residential address, offer an extremely high level of education, which is what many of the family buyers are looking for,” says Gavin. Adrian Goslett, CEO of RE/MAX of Southern Africa, says that when buying property, location is always going to be one of the most important aspects to think about. This is because location will impact on the potential return on investment and lifestyle the property offers. But perhaps more importantly, aside from the convenience of being close to amenities such as shops and medical facilities, proximity to good schools plays a major role in how buyers choose where to live. According to Gavin, other influences that have ignited buyers’ interest in the region is that it is so well positioned and central to both the Durban CBD and the Umhlanga Ridge business district as well as Gateway. The Umhlanga Ridge business precinct has continued to grow dramatically, which has opened up more employment opportunity and brought more and more business men and women to the area. “Property buyers will often purchase homes that are close to their place of work, especially if their business is relocated. Durban North is conveniently situated outside of the CBD node, but is a close enough commute for those who work in the business district,” says Gavin. Gavin says that family buyers in the area are looking for homes that feature large, level stands which measure around the 1000m2 mark with three or four bedrooms and have staff accommodation on the premises. He says that the average price that buyers are paying for these family homes across all suburbs in Durban North, Umhlanga and La Lucia is around the R2,2 million bracket. “There are some really good value-for-money homes in the region that will be perfect for a family to live in and they will be a good investment over the long term. Given the current market, growth in terms of the property’s value is fairly conservative, however, Durban North homes remain fantastic long term assets.” says Gavin. A four-bedroom, three-bathroom home is currently being marketed by RE/MAX Panache at R1,790 million. This family home features a study which could be used as a fifth bedroom, an entertainment area with a swimming pool and a separate large self-contained flatlet on the property. For more information regarding family homes in Durban North, Umhlanga or La Lucia contact Grant Gavin at RE/MAX Panache, on 031 564 9202.
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04 November 2011, 07:53:49
Estate agents, be they experienced or inexperienced, who do not have regular ongoing training will almost always perform less proficiently than those of similar ability who are regularly updated with property matters and sales techniques by a good training division.“This,” says Rawson Properties’ KwaZulu Natal Skills Coordinator, Richard O’Brien, “is the basic assumption on which I and all other Rawson Properties group trainers operate. “For many years, but especially since Rawsons began its expansion drive five years’ ago, our group has claimed that one of the main factors setting it apart from its rivals is the importance that it places on training and our insistence that this must be an ongoing exercise.” The foundation of all this training in KZN, says O’Brien, is the initial Rawson Proficiency Course that he and his colleagues provide monthly. This is attended by both experienced and rookie estate agents and in KZN lasts eight days followed by prolonged field training done back at the agency or at home. The three main subjects covered by course are”: 1. Rawson documentation “All the major agencies”, says O’Brien, “have their own documentation and it is absolutely essential that agents are completely au fait with what is set down here. They must be able not only to fill in the documents without having to pause to consider the meaning or implications of certain clauses but also to be able to explain these to clients “ 2. Property legislation “Every deal or move in property is subject to some legislation and agents have to understand all the relevant law. To take just one example, the Matrimonial Property Act sets out radical differences between the position of those married in community of property and those married with an ante-nuptial contract. The wrong advice here from the agent could cause great difficulties for the couple concerned.” Similarly, says O’Brien, it is essential for agents to be kept abreast of all other legislation that could impact on property, particularly in recent months the National Credit Act, the new Companies Act and the Consumer Protection Act. Without informed legal knowledge here, he says, the agent can be a ‘loose cannon’ in the property world. 3. The sales techniques and inter-personal skills “Even the most accomplished negotiators can improve their skills and all of us can create better working and personal relationships. “It is sometimes assumed by those whom we train that somehow all people understand the need for these skills, but this is not so. Rawsons’ experience has been that in fact all of us need coaching and improvement of our personal skills, particularly sales skills, on an ongoing basis and that attending a course of this kind can very often set up a person to be far more proficient, sympathetic and competent in his work and other relationships.”
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04 November 2011, 07:52:50
The closure of three major estate agencies in Hout Bay/Llandudno, says Bill Rawson, chairman of Rawson Properties, reflects not just the drop in home sales in that area (from ±60 per month to under 20) but also the fact that the agencies which are surviving tend to be those with strong branding and effective ongoing support from their franchisor/head office. In these difficult times, he said, the ongoing training and really effective system of the successful franchisors are helping the franchisees to survive where others cannot. Asked if the success of the Rawson Hout Bay franchise (which is doing well) means that the Rawson franchise “system” equips a franchise to survive any downturn Rawson commented that where Rawson franchises have failed initially they have often been revived quickly under a new franchisee. As a result, he says, very few have “disappeared”. This, he said, indicates that the package offered is almost “recession proof” provided the franchisee is competent. “On the very rare occasions where we have closed down a franchise it has usually been not due to a lack of sales but because the franchisee has adopted practices that did not conform to our model and/or his conduct had tarnished our reputation.” It is, however, difficult, said Rawson, on first getting to know a potential franchisee to predict whether he or she will be a success. Many overrate their own ability – others prove far more successful than expected. However, as the majority of franchise applicants are now coming from already trained and already successful agents in other firms or working independently, said Rawson, it is possible to check on their previous performances and, in particular, their ability to keep good staff.
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28 October 2011, 08:24:23
Bank properties clearance sale Rawson Auctions’ close connection with South Africa’s major banks is paying dividends. As one of the banks’ preferred auctioneers, Rawson Auctions will on 9th and 10th November be auctioning 23 repossessed properties, including apartments, houses and vacant land. “We are, I believe, taking the concept of multiple auctions to a new level,” said Tanya Jovanovski, Rawson Auctions franchisee for the Western Cape. The properties, she said, have been fed to Rawsons by various banks and they are mainly in the Southern Cape region, with one at Atlantis. Five are at Jeffrey’s Bay, five at Hartenbos near Mossel Bay, one (a vacant plot) in Knysna and others are in Ladysmith and Swellendam. “If ever there was a case of properties becoming available at massive discounts it is here,” said Jovanovski. “The reserve prices have sometimes been set at a 75% discount to their original price and every one of those on offer could go for well under R500 000.” Jovanovski pointed out, too, that on repossessed properties the banks pay the auction company’s commission, thereby effectively giving the buyer a further 10% discount. Asked to cherry pick some of the most attractive offerings, Jovanovski mentioned homes and plots in Jeffrey’s Bay priced to sell at R200 000 to R500 000. A home in Swellendam expected to go for R350 000 and a 308m² plot in Knysna which could sell for as little as R100 000. An Atlantis home expected to fetch R75 000, she said, could be the bargain of the year. Full details of the properties available can be obtained from Faeqah Corker on telephone number 021 658 7100 or by email to info@rawsonauctions.com. The auctions will take place in the boardroom of the Rawson Properties head office on the corner of Main and Klipper roads in Newlands. Jovanovski has said that in view of the exceptionally good value on offer here she expects to sell many of these properties pre-auction.
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28 October 2011, 08:23:44
A lack of business and financial experience prevents many South African commercial property brokers from being able to maximise the benefits they offer their clients, says David Hitch, Rawson Properties franchisee of Rawson Commercial in KZN.“The plain truth,” said Hitch, “is that the selling skills which are all important in the marketing of residential property are often of secondary importance in commercial property. Here the ability to structure a favourable deal is vital to success.” For this reason, he said, the Rawson commercial team is led almost entirely by brokers who have held management positions either in their own business or with big corporates or banks. “The decision to invest in a commercial property for one’s own company or on a buy-to-rent basis largely depends on financial viabilities,” he said. “The broker who has come to commercial property ‘off the street’, very often from other or more straightforward forms of selling, is almost certain to be out of his depth here. “At Rawson Commercial we have found time and again that opportunities favourable to both landlords and tenants have not been realised for the simple reason that the broker did not have an understanding of finance and commercial leasing. Fortunately there are firms like ours which can and do offer these skills.” Hitch made these comments while discussing the growth of the current tendency among cash-strapped industrialists who sell their own premises and then lease them back so that they can ride out the next two or three years of low economic growth and limited demand for their products. Rawson Commercial, said Hitch, is honing up its skills in this field and has found that this apparently drastic action can create a survival win-win situation for all concerned and, in the long run, can sometimes result in the tenant being able to buy back his property.
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28 October 2011, 08:23:15
The Cape Town real estate scene is abuzz this week with the news that top Atlantic Seaboard agent Gail Gavrill - and several other “big names” in the industry - have joined forces to re-launch the Sotheby’s International Realty franchise in the area.The new partners in the franchise are Gavrill and her husband Rob McKee of Gail Gavrill International Properties, Brendan Miller of Better Homes and Lew Geffen, who is also chairman of Sotheby’s International Properties in SA. “Gail hardly needs any introduction,” says Geffen. “She is a dominant real estate personality locally and internationally and has been responsible for many of the most important sales along the Atlantic Seaboard over the past 25 years. “At the same time we are delighted to have real estate management expert Rob McKee as the CEO of the new partnership and to welcome Brendan Miller, who has in the past few years built Better Homes into an extremely strong player in the Atlantic Seaboard market. “Indeed, with this dynamic new team at the helm we are confident that the Atlantic Seaboard franchise is now well set to become the company’s flagship operation in the Western Cape. Gail and Brendan intend focusing on the higher price ranges in Fresnaye, Bantry Bay, Clifton and Llandudno - including off-plan developments – and with the backing of Sotheby’s International Realty will be in a position to source high net worth buyers for their sellers from branches in 47 countries around the world.”
Geffen also notes that all the sales agents employed by the previous owners of the Sotheby’s franchise have been retained, and that the re-launched franchise will also absorb Gail Gavrill International Properties and the Better Homes operation in Sea Point.
“Indeed, we will initially be operating from the highly visible – and rebranded – Better Homes location on the corner of St John’s and Main roads in Sea Point, although we will also have brand new offices in Camps Bay shortly.” The re-launch of the franchise follows a High Court decision last week which enabled Lew Geffen Sotheby’s International Realty to immediately terminate its agreement with the previous franchisees, and Geffen says he has been overwhelmed by the industry and public support he has received following this move. “I have to say that the previous operation did not live up to our brand promise, but this new management partnership brings together some exceptional real estate talent and experience, and we are confident that the franchise will now come into its own and really deliver on that promise for our clients.”
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21 October 2011, 14:12:16
Due to the effect that the global recession has had on the property market, the number of active realtors in the US has dropped by around 40% to sit at just above one million, and is expected to drop by a further 100 000 by the end of the year. South Africa, while reasonably protected by monetary policy from the worst effects of the recession, has seen a similar decrease in the number of registered agents. At one time there were approximately 70 000 agents and principles registered with the Estate Agents Affairs Board (EAAB) across the country. Today that number sits at around 31 000. According to Grant Gavin, Broker/Owner of RE/MAX Panache which operates in the KwaZulu-Natal north coast suburbs of Durban North, La Lucia and Umhlanga, the compulsory educational criteria are another reason why many South African agents have exited the industry in recent years. He says that in KwaZulu-Natal at the end of June this year, there were only 2 258 agents registered with the EAAB. “What this means for buyers and sellers of property is that, for the most part, the agents who remain active in the market are those who are dedicated professionals at the top of their game, and therefore are able to offer property buyers and sellers sound advice.” But, Gavin says, more often than not, buyers and sellers discount the advice given from their agents to their detriment. “Given that in the past there was such a low barrier to entry to the real estate profession, the guarded mentality that the consumer now has towards estate agents in general is understandable. However, times have changed and real estate agents across the county have upped their game, their level of professionalism and level of expert knowledge.” Right now with the north Durban market changing fairly rapidly, Gavin believes that being aligned to a real estate professional is more important than ever before. “In our local suburbs the market is changing very quickly from a strong buyer’s market to one where well-priced stock moves quickly,” he says. What this means for sellers is that if their home is priced correctly, there is enough demand for it to sell fairly quickly; whereas over-priced homes are still stagnating on the market. Sellers therefore need to allow the agent to guide them in the correct pricing of their home in order to get the balance right and ensure a fairly quick sale. For buyers on the other hand, the time for cheeky offers is over and passively watching the agency web sites might mean you are two steps behind those buyers who are actively working with agents and viewing properties on the day they hit the listing books. Gavin cites an example where his agency recently had a property sell for the full asking price within 45 minutes of being listed, and he says that such examples are becoming more and more common. Estate agents are now more qualified than ever before to professionally and expertly handle the property sale process and give advice and it’s for this reason that Gavin is of the opinion that buyers and sellers should allow the agent to lead and guide their relationship based on their expertise and knowledge. But, he says, buyers and sellers should also select their agent with care. “There are certain criteria that an agent should meet,” says Gavin, who advises property sellers and investors to firstly select an agent from a reputable company that is well established in the area where they are buying or selling property. Then, in order to ensure a reasonable guarantee of service, buyers and sellers should interview prospective agents and find out the following: · Their past results and what sales they have concluded in the area in the past six months · What company they work for and what tools it provides the agents to assist them in effectively meeting their obligations to buyers and sellers · Assess the effectiveness of their marketing campaigns · Establish their sphere of influence and find out how well known and liked they are in the area · Finding out what buyer qualification process they follow in terms of getting finance approved for the sale
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21 October 2011, 14:11:29
As more and more people gain access to internet facilities, online property listings will play an increasingly bigger role in the property sale process, says Grant Gavin, Broker/Owner of RE/MAX Panache, which operates in the KwaZulu-Natal north coast suburbs of Durban North, La Lucia and Umhlanga.
He points to research released last year in the Internet Access in South Africa 2010 study by World Wide Worx, which stated that South African internet users passed the five million mark for the first time in 2010, finally breaking through the 10% mark in internet penetration for the country. The research also indicated that the country’s internet user base grew by 15% in 2009, and it is expected that internet users in South Africa would grow as much between 2009 and 2014 as it had in the 15 years since the internet became commercially available in the country, taking the internet user population to the nine million mark by 2014.
On a more local level, Gavin points to web statistics for property searches as pulled from the www.remax-panache.co.za website. The number of unique users visiting the site increased by 33% year-on-year with 3000 unique users per month recorded in 2010 compared to the 4005 unique users per month recorded in 2011.
“We rebranded our website with a new look and feel last year, and from the month we rebranded, we noticed a 30% increase in visitors. This goes to show that the look and feel of a website needs to be kept fresh to keep attracting people. Companies who have the same website for years and years are falling behind. It’s not good enough anymore to simply just have an online presence – you need to keep the site fresh and the content up-to-date.”
The number of visits by each unique user per month has also nearly doubled from the 2010 figures, although the number of page visits has dropped by almost half. Gavin says the fact that people are viewing fewer pages per visit is indicative of the market change. “While we had an overload of stock on the market last year, stock levels are lower in 2011 on average than in 2010.”
Gavin notes that in 2010 and so far during 2011, the busiest viewing times were Mondays between 7am and 10am, with the week tailing off quite rapidly, meaning that Thursdays and Fridays are slow viewing days. “Very little property surfing is done after hours,” he notes.
Majority of visitors were South Africans who accounted for around 80% of all pages viewed, with the UK providing the second largest audience with an average of 5% of all pages viewed.
The USA and Germany are always in the top 5 and account for about 4% of monthly page views combined.
Lead generation and the use of integrated technology platforms are two of the 10 trends that will drive the next five years, according to US real estate expert, Steve Murray. Gavin believes that the internet is a key component of the technology platforms that will drive the market and assist in providing agents with buyer and seller leads
“The internet provides an excellent tool for sellers to showcase their property and buyers to search for their ideal home from the comfort of their own home or office. Harnessing the technology and using it effectively will mean the difference between success and failure for many estate agents,” he concludes.
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14 October 2011, 15:18:18
Located just south of Cape Town’s lively city centre, Gardens continues to attract many of the country’s young up-and-coming professionals says Susan Watts, General Manager of RE/MAX Living, who represents offices both in the Gardens and Sea Point areas.
“Gardens has always been seen as an affluent suburb and the place to be as a young professional, especially for those in the creative industry. It is definitely a neighbourhood that speaks to a generation looking to build their careers as well as enjoy the benefits of living in a bustling cosmopolitan city. There are a vast number of chic restaurants, boutique style shops, luxury hotels and New York flavoured loft apartments. Gardens is regarded as Cape Town’s creative hub and is home to a variety of production companies, film studios, modelling agencies and publishing houses,” says Watts.
While still richly entrenched in South African history as home to some of the country’s oldest museums and monuments, Gardens is a far cry from the fresh produce garden it once was in the 1650’s. Although the renowned Government Avenue is still lined with the oak trees planted during the time of Simon van der Stel, today this inner-city suburb is also home to more contemporary attractions such as the five-star Mount Nelson Hotel.
Since January this year general demand for properties in the area has increased, particularly those that are correctly priced. Watts says that correctly priced properties are selling fairly quickly, however, those that are priced too high have run the risk of waiting many months to sell with some properties being on the market for over a year. Adrian Goslett, CEO of RE/MAX of Southern Africa, says: “This once again points to the importance of sellers pricing their homes at fair market value. In this market it is the buyers who are determining what that market value is and not the sellers.”
Watts says that the highest percentage of recent buyers in the area have been between 18 and 35 years of age and are predominately buying sectional title units. Currently, these types of properties are outselling freehold properties by three to one, with most of the movement in the R1 million to R1,5 million bracket. This is largely due to the fact that Gardens is made up of 66,74% sectional title units, with the remaining 33,26% consisting of freehold properties.
Pricing for an entry-level or bachelors unit starts at R450 000, while a one-bedroom apartment is priced from R900 000 upwards, depending on factors such as location and views. Due to the space constraints of inner-city living, one of the main factors affecting pricing is the parking bays available to the unit. This has a large influence on the demand and sale price of the property. In some instances an additional parking bay can cost the buyer as much as R100 000. She says that entry-level freehold homes are selling from R2 million upwards, while mid-level homes are selling from approximately R4,5 million upwards. Top-end homes such as the seven-bedroom, 595m2 restored Victorian Villa that is currently on the RE/MAX Living books, are on the market for R6,3 million.
According to Lightstone, a property statistics and data provider, out of 5180 suburbs nationwide, Gardens fell within the top 50 in terms of the average valuation of a freehold property and was ranked 227 out of 1969 suburbs reviewed for the average valuation of a sectional title unit.
Why is Gardens a good investment option? “Many tend to forget that property is not a short term money spinner, but over the long term it has proven to be a great investment, especially in Cape Town. We have had challenges in our local market but, compared to other regions, they are insignificant. We have a fantastic climate, scenery that ranks us as one of the top cities in the world and the attitude of the locals is positive and upbeat - what more could one ask for?” asks Watts. “It is clear that people are still apprehensive about whether or not the recession is in fact over. We are not immune to global market trends but Gardens has done specifically well in retaining good investment returns over the long term and will continue to do so in the future. Looking at the local market and our growth as a company over the last three years, it is clear that despite the global market conditions the property market here remains buoyant.”
According to Watts there won’t be any major surprises in the Gardens property market in the near future. “I do not expect a huge increase in sales over the next few months but I certainly expect to see a gradual increase over the next few years. I reiterate that sellers in this market will have to be wary of overpricing and should rely on the facts and figures provided by a trained real estate professional in order to price their property correctly in the current market,” Watts concludes.
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07 October 2011, 15:37:31
Research anticipates that close on 10 million South Africans will be retiring in the next 25 years. The results of the Sanlam 2011 Benchmark Pensioner Survey indicate that 80% of pensioners have not completely achieved their pre-determined retirement goals. On average, 31% of the pensioners believe they have not saved enough for their capital to last for the rest of their lives and 33% of members currently have a monthly shortfall between their income and expenses.Adrian Goslett, CEO of RE/MAX of Southern Africa, says that while it has been widely reported that the South African retirement industry is under constant pressure to deliver adequate and sustainable benefits to its pensioners, and local retirement reform is on the cards once more, it cannot be emphasised enough that people need to start working towards their retirement fund as soon as possible. He points to research from the Sanlam 2011 Benchmark Pensioner Survey where pensioners were very clear in their advice to start investing and saving as early as possible, start planning for retirement at an early age and make more enquiries and learn more about investments, investment choices and retirement. “Property,” he says, “has always been a solid performing, long term investment, and therefore could be an ideal investment vehicle for those looking to add another element to their retirement policies and investments.” He explains that if a person had to retire at 65 years of age, they will need 75% of the income earned when working to enable them to live a comfortable life. “Added to this,” he says, “the income stream needs to be sustainable enough to last at least 30 or so years, given the current life expectancy statistics.” While there are many investment options available for those who are looking to start building up a retirement portfolio, including savings mechanisms and various retirement plans, Goslett says that well researched and solid property investments should also be considered as a key element of a retirement portfolio as real estate remains one of the best performing asset classes, despite the recession and its effects on current property prices and demand. “This is because real estate investments offer diversity from the other alternatives that typically make up a retirement portfolio,” says Goslett, “added to which, performance of real estate is not linked to another asset classes which means that property investors can still benefit from their real estate purchase when other asset classes are struggling. Buying a property also offers investors long term appreciation opportunities and the potential for the property to contribute to a regular income stream.” Goslett says there are two ways in which an established property portfolio can benefit retirees. One is that an investment property can be used by retirees to generate an additional income stream. “The buy-to-let market, for example, is currently performing very well considering that rental demand is strong,” says Goslett. “Tenants in buy-to-let properties can provide a stable income stream for retirees, should the property have been bought and paid for in full before retirement age.” Goslett notes that investment properties can also be sold to provide a lump sum cash injection to retirement funds, once again provided that this property has been paid off before retirement age is reached. Added to this, an investment property can also provide extra avenues of equity to tap into, he says. “While all investment options carry a certain amount of risk, a property investment which is well researched, bought for a good market-related price early on enough to ensure that it is paid off by retirement and is situated in a good location in order to retain rental demand and resale value will provide a solid retirement investment,” Goslett concludes.
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07 October 2011, 15:31:37
 The piling at Rawson Developers' The Rondebosch development is nearly complete. |
Confounding those sceptics who have said that Cape sectional title development is in the doldrums, Rawson Developers’ R200 million “The Rondebosch” project has, says Paul Henry, the development company’s MD, “gone well”. Units here vary in size from 43m² to 110m² and have sold from R845 000 to R1 875 000. To date just over 100 of the 166 apartments in the project have been taken and Henry is predicting ongoing sales in the next few months to parents of UCT students now looking for suitable accommodation for their offspring (The Rondebosch is one kilometre as the crow flies from the campus). Over 30% of the purchases so far have been in cash. Henry said that the demolition of the old Porter House office and garage complex which was previously on the site had been handled with commendable speed and with minimal inconvenience to Rondebosch residents. All site operations, he said, have been subject to the strictest environmental controls, particular emphasis being placed on avoiding any form of pollution runoff into the nearby Liesbeeck River. “Considering the route this river follows,” said Henry, “it is wonderfully clean. It must be one of the most unpolluted rivers in SA.” The new seven storey building will have “more than sufficient” under cover parking, said Henry. The main activity in recent months, due for completion soon, has been the driving by Fairbrother of 386 concrete piles – to an average depth of ten metres. Henry said that the soft ground conditions on site had facilitated this activity. Sales enquiries should be addressed to the site sales office at 021 658 7100.
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07 October 2011, 15:25:27
Those who attended the presentation by FNB and the Property Professional magazine to Bill Rawson of a Lifetime Achievement Award (and were impressed by his statement that success depends almost entirely on an ability to create good teamwork) were surprised to hear him also say that transformation in the property marketing sector had become more difficult than ever before. The reason for this, said Rawson, is that the very high educational standards now deemed necessary for both estate agents and their principals have created yet another barrier to entry. “It has,” he said, “been pointed out to me that my group and I pushed hardt for compulsory qualification standards. However, the EAAB and Services SETA have now taken these standards to the point where they are expensive and extremely difficult for many previously disadvantaged persons to obtain.” The new educational qualifications, added Rawson, are also deterring young white people from entering the estate agency world. In 2006, said Rawson, 96 000 estate agents had been registered with the EAAB. The figure is now 33 000. “This far smaller group could, when times improve (as they inevitably will), be seen as an elite monopoly which has taken control of the entire residential market. That will be bad for property – strong competition is needed in all sectors.” Asked what he proposes as a solution to the transformation impasse, Rawson said that it may be necessary to offer PD applicants free tuition in their rookie year and to give them more time to qualify – say, three or four years. “The higher qualifications have undoubtedly raised the standards of SA’s agents, but we must not lose sight of the need for transformation and for avoiding the creation of cartel conditions.”
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07 October 2011, 15:24:21
It is, says Dante Fratti, CEO of D F Properties which focuses primarily on property in the Century City precinct, surprising how often estate agents are appointed by property sellers without the seller even checking on their track record or enquiring how successful they have been.“Contractors, suppliers and even professional designers and engineers are often asked to give referrals before they can expect a job - but for some reason agents are very seldom subjected to this sort of examination.” Fratti himself says that he is always willing to supply a list of recent buyers and sellers with whom he has dealt and in his experience this has proved valuable in boosting the confidence of his clients. The agent, says Fratti, should always be asked to produce his Fidelity Fund Certificate, “There have,” says Fratti, “been several cases where the agent’s certificate was out of date - and one or two cases where he has operated for a year or longer without a certificate being issued at all.” This, Fratti reminds us, can be dangerous for the agent as well as for the seller. If an agent does not have a valid Fidelity Fund Certificate the seller could legally ask the attorneys to withhold the agent’s commission. Similarly, if the agent proves dishonest or inefficient, e.g. if he absconds with a deposit or some other situation deserving sanction arises the seller will have no authority (Estate Agents Affairs Board) to whom he can appeal. This applies to purchasers as well.
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07 October 2011, 15:23:32
Local residents who are upgrading to bigger properties are giving the property market in the Mpumalanga town of Middelburg a welcome boost. Low interest rates and increased affordability have spurred many locals to make the most of the opportunity and buy bigger properties, says René Peyper of the new RealNet Middelburg office. “We are seeing significant activity in all sectors of the market but upgraders are particularly targeting areas such as Aerorand, Robberts Estates, Clubville and Groenkol and buying at prices up to R1,1m. Suburban homes as well as duets are in demand. “And this trend is in turn creating openings for new buyers in the affordable sector, notably Eskom workers who are buying in areas such as Kanonkop and Extension 18. Indeed, the under-R500 000 sector of the market has become very lively. For example, a recent development of 18 one-bedroom units priced at between R430 000 and R460 000 was sold in record time.” Although the top end of the market, where prices reach levels of up to R7m, is currently somewhat flatter than other sectors, luxury homes are still sought-after and developers are catering for this market, she says. “Robberts Estate, a luxury security development, has just released stands in its latest phase. Prices range between R400 000 and R1,2m and stands are finding ready buyers. Owners can opt for building packages or build their own homes.” Another luxury development just outside town is in the planning phase, she adds. RealNet Middelburg, which opened for business in February, fields five agents and, says Peyper, sales in the first few months of operation have been exceptional. “Our turnover is very healthy for a new operation and may perhaps be ascribed to the fact that our agents are trained to pre-qualify buyers and to scout out properties that closely match their requirements.”
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07 October 2011, 15:22:58
The recent formation of a Rawson Commercial franchising division has come at a time when there are big opportunities in this field in selected areas, although these are often not seen by many, says Bill Rawson, chairman of Rawson Properties. Right now, says Rawson, small one or two man commercial operations will find many worthwhile breaks. “Already,” he said, “we can list four or five properties for sale through our first Cape Commercial franchise, which give an annual return of 8 to 12%. This is still the level obtainable in carefully selected properties countrywide.” With interest rates at their present levels and banks relaxing their loan criteria, this type of return is definitely worth investigating. If as is highly probable, he adds, interest rates return to higher levels over the next four years. It is reasonable to predict that rentals will increase ahead of or at least in line with these interest rate rises. “The market is, therefore, right for the investor who has the time (and the correct advice) to cherry-pick good opportunities – and it is these investors who our new franchises will target.”
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30 September 2011, 13:56:53
The Limpopo town of Hoedspruit, which borders the Kruger National Park, was once a small agricultural town situated in the centre of the Lowveld. Over the years Hoedspruit developed to become a pivotal role player in the provision of infrastructure and services to the Central Lowveld region. Today the town supports a large network of farms, businesses, game reserves, lodges and educational facilities. Hoedspruit is part of the Kruger to Canyon Biosphere and the major tourist attractions in the region include The Kruger National Park, Blyde Poort Canyon, Maholoholo Wildlife Rehabilitation Centre and the Hoedspruit Endangered Cheetah Centre at Kapama. Home to the Big 5, Hoedspruit offers investors many opportunities. Subsequently, Hoedspruit has transformed into a tourist hotspot and offers tourists a wonderful array of accommodation and other small town conveniences. Adrian Goslett, CEO of RE/MAX of Southern Africa, says that in light of these developments and expansion, RE/MAX of Southern Africa is delighted to have a presence in this marketplace and notes that property purchasers in Hoedspruit will be spoilt for choice with a range of properties from B&Bs, guesthouses, to game lodges, private game reserves and residential wildlife estates available through RE/MAX Wildlife Properties Hoedspruit, which is due to officially open its doors on 7 October. Annie van den Berg, Broker/Owner of RE/MAX Wildlife Properties Hoedspruit, has worked in the Hoedspruit real estate market for the past 11 years, and hopes that her property expertise will be invaluable to the successful sales of wildlife properties that contribute to the protection of the country’s wilderness. Annie currently has two agents working with her Elise Schuld and Gareth Putter, and reports that to date good progress has been made in the sales and rental market. Looking forward she says that while the property market is still feeling the effects of the economic slump, clear goals have been set for RE/MAX Wildlife Properties Hoedspruit and she looks forward to achieving incredible sales success. In Hoedspruit, Annie reports that the top end properties have retained their value, as with many similar properties throughout the country. “Most of the wildlife estates have also kept their prices with the exception of a few desperate sellers,” she says. Annie says that most of the buyers in the area are leisure investors who are looking to purchase a luxury bushveld retreat or second home and are therefore not as affected by the tight economic circumstances that many consumers have felt. The RE/MAX Wildlife Properties Hoedspruit property profile ranges from basic bush accommodation to luxury bushveld homes in secure, private wildlife estates. Prices start at around R250 000 for vacant land with houses ranging from around R1,2million to R8million. “The buyers are typically those who want to escape the city life,” explains Annie, “as well as pilots, bush lovers, single mothers, young families and retirees, as well as international families and investors. They are mainly people who love the African bushveld and range from young executives looking for lock-up-and-go properties to older couples who want to get away from the rushed city life. The well known nature-based Southern Cross School is situated in Hoedspruit and provides facilities for the children of the many families that have moved to Hoedspruit.” Over the next three years Annie sees the Hoedspruit property market growing from strength to strength, as she believes the worst of the recession is over now.
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30 September 2011, 13:55:52
It’s most important for home sellers to have confidence in their agent – and that’s so much easier when that agent is backed by the marketing expertise and resources of a big national and international real estate group. “No matter where your home is located or what it’s value is, the current market means you should seek out the very best real estate marketing service available so that you can achieve the highest possible price in the shortest time,” says Lindie de Bruin, co-owner and principal of the Sotheby’s International Realty franchise for the northern suburbs of Cape Town. “And yet many home sellers in our areas seem to believe that they can’t avail themselves of our services unless they have a multi-million rand home to sell. This is simply not true as a very large percentage of the homes we market are in the under-R1m price range. “What is more, we don’t discriminate at all as to level of service. Our highly-trained agents apply the same marketing methods and expertise to every property we list, whether it is worth R600 000 or R6m.” Lew Geffen, chairman of Sotheby’s International Realty in South Africa, confirms that more than 30 percent of the homes the company sells locally are priced at less than R1-million, and says: “We obviously have the global reach to market high-end properties to high net worth investors from all around the world, and we do sell quite a number of these multi-million rand homes every year. “But we also recognise that by far the majority of property sales in this country are still to South African buyers, and in the light of the growing trend towards downscaling to smaller, more secure and more manageable homes, most are taking place in the more affordable price brackets. “Consequently, we make the international marketing expertise and the huge resources resident in the Sotheby’s International Realty group available to all our clients, right across the price spectrum – and in every area where we operate.” For example, he says, the ground has one of the most sophisticated and effective internet marketing systems around, “which in addition to our extensive print advertising commitment, ensures that every client’s property gets the maximum possible exposure to potential buyers. “And it’s all part of our standard service offering, so even sellers with smaller, less-expensive properties don’t have to sell themselves short when it comes to choosing an agent.”
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02 September 2011, 08:25:08
Habitatio rights not confirmed by the relevant clauses in the document. Whenever a property is bequeathed or sold to a buyer on the understanding that he or she will allow a third party to occupy the premises in perpetuity (i.e. until that person moves on or dies) – a situation of conflict is possible at some future date, says Anton du Plessis, CEO of Vineyard Estates. “A recent High Court case,” he said, “has shown just how tricky and difficult this can be, especially when the third party lives there free of charge and shares premises with the buyer.” In the case referred to (JJ Jordan v ED Lowery), said du Plessis, the applicant, who had bought the property some years previously, alleged that the conduct of the respondent, who had been give a right to live free in the home with the applicant (but was expected to pay half the electricity costs) was such that it had become unpleasant to have her there. It was alleged that she had abused the applicant verbally and physically, had cut down trees and kept chickens (against the applicant’s wishes) and had not paid her share of the electricity bill – at one stage being ordered to do so by a court. The applicant, therefore, applied to the court to have the respondent evicted. Earlier requests for her to leave having been ignored, The respondent argued that she had a habitatio right to live in the house which could not be ignored or dismissed. The court’s decision depended on whether the respondent did indeed have a habitatio right or whether she was just a ‘non-paying tenant’. After perusing the Deed of Sale and a later addendum to it Justice N G Beshe said it was clear that no right of habitatio had ever been granted or agreed to and that the respondent’s status as a non-paying tenant had been established. She had, therefore, to observe all the rules normally associated with such a position. The court ruled that the respondent had to leave the premises within 30 days and pay the costs of the court application. Du Plessis commented, as has done on previous occasions, “Here again we have a case where the wording of the documents had to be interpreted literally and no alleged “understandings” or even possible verbal agreements could allow the court to place a different meaning on them. “In my career as a property marketer,” he said, “time and again I have found it necessary to get the parties to an agreement to firm up the wording in their documents because as originally drafted it could have been open to more than interpretation. In this case the respondent’s view of her rights simply did not tie in with the written agreements so she did not have a case.”
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26 August 2011, 07:55:25
Rawson Properties Financial Director, Calum Wedge, and Honorata Saar, Brand Manager, donated over R20 000 to the Witsand Sea Rescue station. Receiving the cheque is Leon Pretorius. Top left is Quentin Diener and bottom right Attie Gunter. The three volunteers were awarded a Gallantary Award, Silver class at the NSRI AGM for the rescue of four sailors off the yacht Gulliver during a terrible storm.
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The day following the recent Annual General Meeting of the National Sea Rescue Institute, Rawson Properties’ brand manager, Honorata Saar, and the financial director of the Rawson Property Group, Calum Wedge, handed a cheque for just over R20 000 to the NSRI Witsand, Cape, of which their Witsand franchisee, Leon Pretorius is a member.
The donation which was collected, following an appeal by Rawson MD, Tony Clarke, from franchisees countrywide, is in honour of the outstanding courage shown by Leon Pretorius and his fellow Witsand crew members Attie Gunter (skipper) and Quentin Diener when they went to the aid of the 13m catamaran “Gulliver”, sailing from Stilbaai. This had got into serious trouble on account of appalling weather – and had capsized. The skipper, Greg West and his three man crew had, however, managed to activate their EPIRB (Emergency Position Indicating Radio Beacon) and to inflate and get into their rubber life raft.
The EPIRB signal was picked up by the nearest NSRI Depot, at Stilbaai – but they were unable to help as their 7,3m rescue boat was out of commission. They appealed to Attie Gunter, at Witsand who immediately called out his crew – Pretorius and Diener.
At their base the trio were forced to face two major difficulties – the weather was bad and worsening and their 5,5m boat, Queenie Paine, was too small for an exercise in which they might have to take on several rescued sailors – they also knew that their boat’s fuel capacity would make it difficult to cover the 30km to the EPIRB position and back.
Shortly after launching, the moon went into total eclipse and they had to fire a series of flares to negotiate the big swell and the 500m of waves at the Breede River mouth.
Then they left the shelter of Cape Infanta, and all hell broke loose. The swell had grown to eight metres and the wind, from behind, was now 60kph.
After approximately one hour, the Queenie Paine reached the EPIRB position – only to find no “Gulliver” – but another flare sent up 1 000m showed a small light to the west – and this turned out to be the overturned catamaran.
Anyone who has ever been involved in a situation of this kind will know how difficult it is to transfer a crew, some of whom are hypothermic, from a life raft to your own boat in adverse weather conditions – but the NSRI accomplished it in 15 minutes.
Now they faced the return journey in an overloaded boat – and into the wind. With 25km to go, Attie Gunter decided to rev back so as to save fuel. It was soon clear, however, they would not make it on the supplies they had – so Leon Pretorius put out a radio call, “Please send help.”
This was picked up by the Agulhas NSRI team whose 8,5m Vodacom Rescuer VII, an ideal boat for the conditions, immediately set out to cover the 25km gap to the smaller boat.
In the end they had only to track the small boat, which just 7km from base had been refuelled by a trawler. They stood by while the small boat then went over the treacherous Breede River bar (graveyard of many vessels) and then home.
Tony Clarke said that if ever there was a case where the NSRI men put themselves in danger, this was it: the danger of the small rescue boat itself capsizing, he said, had probably only been prevented by good seamanship and cool heads.
“I am very proud that a Rawson franchisee was part of this rescue and our donation is evidence that we recognise and value the NSRI’s efforts which over the years have saved so many lives.”
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19 August 2011, 08:13:38
Still on the expansion trail it has been following for the past 18 months, national real estate group Aida has just opened three more offices in KwaZulu-Natal – two on the South Coast and one in Ballito on the North Coast.This brings the total of Aida outlets in the province to six, and there are more in the pipeline, says CEO Young Carr. “The KZN property market is beginning to recover from the recession, with prices starting to rise now in response to increased demand. “Indeed, the latest Absa Housing Review reveals that the average home price in the province during the second quarter of this year was 5% up on the first quarter, and that year-on-year price growth is back in positive territory.” However, he says, prices are generally still well below boom levels, and the increased activity in the market is in recognition of the fact that there are many really excellent buying opportunities now for both local homeowners looking to upgrade and out-of-province holiday home buyers and investors. “We believe the timing is thus opportune to establish new outlets that can further showcase these opportunities to a national audience and benefit KZN home sellers.” Carr says home sellers along the KZN coast should also take heart from the latest FNB Property Barometer, which reveals that holiday home purchasing has more than doubled in the past year. “Holiday property buying expressed as a percentage of total residential buying has risen from an estimated 1% in mid-2010 to an estimated 3% by the end of the second quarter this year – which we think is excellent news considering that at the peak of the market in 2007, holiday home buying accounted for just 5% of all purchases.” What is more, he notes, closer analysis of the Absa figures reveals that KZN coastal regions, while coming off a low base, experienced some of the best year-on-year performances in the second quarter of this year, “and we expected these to be sustained by growing buyer interest, especially on the North Coast.”
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10 August 2011, 11:08:37
RE/MAX Property Associates, which services the Cape Western Seaboard and the northern suburbs of Cape Town, is now operating from the Glengarry Shopping Centre close to the suburbs of Bellville and Durbanville. This new upmarket office location will ensure that property buyers and sellers in these and the surrounding areas will benefit from easier access to agents who are known for their customer centricity, professionalism and exceptional service.
Caron Leslie, Broker/Owner of RE/MAX Property Associates, notes that although the Glengarry office is relatively small with only six agents currently, they intend to make a big impact in the area. “This new office has agents with the relevant NQF4 qualifications, as well as agents who are Certified Distressed Property Experts (CDPE). We offer a very highly professional service to the community, as well as covering all the aspects involved with the selling and buying of property,” says Leslie, “We want to make a difference within the community in which we operate and we care about our involvement and how we affect our surroundings. This is why we are proud to be a RE/MAX ‘Green Office’ (eco-friendly). RE/MAX Property Associates is also affiliated with Reach for a Dream and are involved with Blanket Drives during winter as well as providing jerseys for new-born infants in need.”
Adrian Goslett, CEO of RE/MAX of Southern Africa, says: “We have every confidence that the RE/MAX office in Glengarry will flourish in its new location and provide its clients with the excellent service that has become synonymous with the RE/MAX brand.”
Situated in the northern suburbs of the greater Cape Town area, Bellville was originally called ‘12 Mile Post’, since it is located 12 miles (20 km) from the Cape Town CBD. It was founded as a railway station on the line from Cape Town to Stellenbosch and Strand. Bellville’s is centrally located close to the airport, numerous golf courses, wine routes and amenities such as shopping complexes and excellent medical facilities. Bellville is also home to The Cape Peninsula University of Technology and the University of the Western Cape.
“Bellville is an excellent area for astute investors looking for buy-to-let opportunities due to its location. Its proximity to the universities will mean that there will always be an influx of students looking for accommodation in the area,” says Leslie.
Property prices within the Bellville area range in price from approximately R650 000 and go up to the R3,5 million benchmark. Leslie notes that judging from recent activity in the area the most popular property choices among investors are sectional title units below the R1 million mark and freestanding homes in the R1,6 million price range. This falls in line with the country-wide trend of a greater demand for more affordable housing.
“There has been a noticeable upturn in the property market in terms of the sales transactions that have been concluded in the Belville area. Property prices have currently stabilised here and we have seen many first-time buyers to middle income buyers entering the market. The current conditions have opened the property door to many buyers that were previously unable to afford it,” says Leslie, “We still have a long road ahead of us in terms of market recovery, however things are looking up,” she concludes.
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03 August 2011, 14:42:03
RE/MAX Property Associates, which currently has offices in Blouberg, Parklands, Pinelands, Table View and Tygervalley on the Cape Western Seaboard, has opened a new office in Kraaifontein. The new office will service Kraaifontein and the surrounding areas such as Brackenfell and Kuils River. Jose De Abreu, Broker/Owner of RE/MAX Property Assoicates, says: “Over the years RE/MAX has concluded many property transactions in these areas, from stand sales to sectional title units and small holdings. This is why it made sense to establish an office in Kraaifontein and provide a personal service to both sellers and buyers on their doorstep.”
De Abreu adds that there are currently 15 estate agents that are working from the Kraaifontein office. “Our agents are qualified professionals that are able to provide assistance to sellers and finding the right buyer for their property in the shortest possible time. RE/MAX agents are well trained in order to provide an unequalled service to their clients,” says De Abreu.
Adrian Goslett, CEO of RE/MAX of Southern Africa, says: “RE/MAX continues to grow its share in the market and strives to be the leading estate agency in the country. In the current economic conditions it is the expertise of a knowledgeable and reputable agent that makes all the difference when concluding a successful property transaction.”
According to De Abreu, many sales are currently being concluded in Kraaifontein and the surrounding areas. “Due to high demand, the stock of property we have available to buyers is starting to become less and we could see the market in these areas soon favouring sellers. While currently many offers that are being accepted by sellers are lower than what they originally wanted, the properties are being sold at market related prices. This indicates the importance of correctly pricing a property at a fair market value,” says De Abreu.
De Abreu notes that Kraaifontein offers something for everyone from the first time buyer looking for a start-up home to the most discerning buyer looking for a high-end home. Free standing homes are in high demand in the area and the most popular choice, with prices ranging from a few hundred thousand to multi-million rand homes.
“Currently people feel that our area is predominantly Afrikaans speaking but that is not the case. We have people from all walks of life and ethnical backgrounds. We have great amenities in the area such as medical facilities and shopping centres, and the area is situated just 30 minutes drive from the Cape Town CBD. Buyers looking for value-for-money property and lovely family homes will find them in Kraaifontein and the surrounding areas,” says De Abreu.
According to Lightstone, the average purchase price for a freestanding home recorded in 2011 in Kraaifontein is approximately R500 000. The majority of the current homeowners are between the ages of 36 and 49 years old, while 100% of the recent sellers were over the age of 65 years old. This seems to point to the fact that the demographic of the area seems to be getting younger.
Looking to the next 12 to 18 months, De Abreu predicts that the property market in the area and in general looks promising. “Currently we are in a market where the majority of our buyers still rely on a 100% loan when applying for a bond. Affordability is still an issue and the banks’ lending criteria remains fairly stringent. As time goes on and the market recovers, buyers will become more financially stable and will have the deposits required by the financial institutions. They will also be more familiar with the requirements of the National Credit Act (NCA), which should help us when it comes to reducing the amount of declines we are currently experiencing when it comes to bond grants,” he concludes.
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29 July 2011, 14:42:23
The Monetary Policy Committee’s decision to keep interest rates at their current levels will be welcomed by the property sector, says Tony Clarke, MD of Rawson Properties. “Had they opted for a 1% or even a 0,5% increase,” said Clarke, “an already difficult situation in the property sector would have been made even more difficult.” Clarke said that most property analysts agree that the inflation rate (now up from 4,2% to 5%) is still low enough not to require a further rate increase. “No doubt,” he said, “the time is coming where the big price increases in petrol, electricity and food, exacerbated by wage increases to trade union members that are often double the inflation rate, will call for an interest rate rise – but that stage has not yet been reached.” The recovery in the property sector, said Clarke, is coming about – but only at a very slow pace. “Everything must be done now to keep it going – and there can be no doubt that even a small interest rate rise at this stage would have been disastrous.” Asked in what way it would be harmful, Clarke said that right now “thousands” of homeowners are struggling to pay their monthly bond repayments – and many are “not far off” having their homes repossessed or sold in execution. Even small rises in the rate, he said, could tip the scales against them. “What has to be appreciated,” he said, “is that the large numbers of distressed properties for sale bring down the average price of all property. The quicker we can get rid of this backlog, the better. The below-average interest rate is essential to property’s recovery.” By the first quarter of 2012, added Clarke, further inflation rises will probably make it necessary for the MPC to “normalise” the rates, but this could be held off due to political electioneering. “At the moment,” he commented, “there is still far too much volatility in the SA economy – it jumps around “like a hyperactive rabbit”, overreacting to internal and external factors. Spokespeople in the property sector, he said, would welcome a steady conservative performance which would enable them to plan ahead more easily. Clarke predicted that by 2013 the current slow recovery will be evident to all but, he said, a bull market should not be counted on before 2015.
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22 July 2011, 09:23:02
FNB’s decision to stop issuing any bonds at sub-prime rates will probably be followed by the other banks – but this is not a death blow to the residential property market, says Anton du Plessis, CEO of the Cape Peninsula estate agency, Vineyard Estates. “Right now,” he said, “the rates are low enough to promote a lively housing market. The problem is not the interest rate levels but the high number of mortgage bond applications that are still rejected, especially at the lower end of the market.” In upper middle and upper bracket housing (on which his company focuses), said du Plessis, the average bond is around R3 million. At a sub-prime rate of 1% below prime, (i.e. 8%) this would mean that the borrower would pay approximately R25 000 per month. If, as seems likely, he could only get prime, he would be paying R27 000, approximately R2 000 more per month. “In the market I serve that would generally not be a problem to most buyers,” said du Plessis. Asked if buyers at the lower end of the market would not be seriously affected by a 0,5% or 1% rise in their rates, du Plessis said that almost no borrowers at this level were granted sub-prime rates, so their situation has not been changed by the new ruling. “It has to be added,” he said, “that although a lack of bond finance has been the limiting factor on house sales, this is not as serious a problem in the upper middle and upper brackets as it is in the lower markets.. In general, the potential buyers with whom companies like Vineyard Estates deals have good credit records, and are in good standing with their banks: over 80% therefore do get bonds without undue fuss, especially if they work through a good bond originator and can manage a 10 0r 20% deposit.” Psychologically, said du Plessis, the cancellation of sub-prime lending may give a negative message to potential property buyers. “It might in some quarters be interpreted as an indication that the banks still see residential property as high risk. All the evidence available points to the opposite conclusion – property remains a safe long term investment – but market sentiment might react to the bank ruling negatively.”
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22 July 2011, 09:21:47
“Cape Town’s property planning and approval department has lost touch with the real world. They continue to pat themselves on the back because they are told they are performing more efficiently than other SA local authorities – but that is a meaningless yardstick. The truth is that, employing unqualified and inexperienced staff for jobs which they are not yet competent to handle, the department is causing developers and construction contractors month after month to lose large sums and limiting the number of new projects. Regrettably, ongoing complaints about this have so far had little effect.” These tough words were said recently by Paul Henry, managing director of Rawson Developers, one of the few Cape Town residential property developers which has been able to launch new projects in the last two years. Henry said that by any “normal” standards, the approval of a new development should be completed in three months. In practice, he said, it now takes 18 months or longer. “What the department forgets is that these inexcusable delays all add to the cost and risk of every project. They make the task of the developer already hard hit in these straitened times far more difficult.” Those most frustrated by the current inefficiencies, said Henry, are often the end users who time and again find for no reason that they can identify that transfer has been delayed. Rawsons, said Henry, have encountered delays on every project which they have launched in the last six years but nowhere has this been worse than at their River’s Edge development. Sited in Rondebosch, 50m from the Liesbeek canal, this 84 unit complex was deemed by City Council to be subject to their new Flood Plain River Management Policy. This, says Henry, appears to have been drawn up without any clear directive on how it is to be implemented and enforced. “The impression developers like ourselves are getting is that city officials themselves do not understand the policy and their engineers are still debating it. “In an industry now facing massive unemployment as a result of the available jobs being reduced by over 50%, one could have expected the city officials to do all in their power to keep new developments coming off the drawing boards. However, like the banks they appear to have no real feeling of responsibility or duty in this matter.” Henry’s statements tie in closely with those of Deon van Zyl, chairman of the Western Cape Property Development Forum, who in a recent letter to forum members said: “Where developers do dare to develop, bulk infrastructure constraints, ill-defined development contribution policies and slow building plan approvals are hampering attempts to break ground.” Van Zyl then said that the Property Forum has set for itself the following goals: - to increase its levels of communication with executive politicians and officials;
- to assess what reasonable timelines for approvals should be and to compare these with what is actually achieved by the Western Cape province and municipality planning departments;
- to create a confidence index reflecting forum members’ experiences with the above authorities;
- to lobby forum members to comment on provincial and municipal policy changes and to make constructive suggestions;
- to inform members of legislative and policy changes likely to affect them; and
- to forward all information and members’ questions to the province and the municipalities.
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08 July 2011, 10:10:33
Coming up for auction on Wednesday 13th July is a modern two bedroom apartment in a secure complex at Plumstead.Tanya Jovanovski, CEO of Rawson Auctions, who are handing the sale, says that, like certain other properties which Rawsons has recently auctioned in the Southern Suburbs, this apartment, which already has a tenant paying R4 000 per month (who will stay on if the buyer is an investment buyer or will leave on transfer of the property if the buyer wishes to use it himself), is the perfect buy-to-rent property. She is, therefore, expecting bidding to start at R700 000. In addition to its two bedrooms, the apartment has an open plan living room linking to a kitchen and a balcony, and has its own garage. “This is exactly the sort of secure, reasonably priced flat, close to enough to the suburban rail line and to good local schools, that many tenants are looking for,” said Jovanovski, “and as I have said before, those now building portfolios of such units five to ten years from now will, I believe, be seen as having made the right moves at the right time.” Rawson Auctions do not charge a bidders’ fee but they expect a 10% deposit to be paid on the fall of the hammer and their commission fee is 10%, payable by the buyer. Right now, says Jovanovski, properties of this type in the less expensive Cape Peninsula suburbs are going at 30 to 40% discounts on 2007/2008 prices. Jovanovski can be contacted on 082 411 9599 or Jason Lee, Rawson Auctions’ legal expert, on 082 940 6605.
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08 July 2011, 10:09:51
While there will always be a place for the one or two man real estate marketing teams operating in a specific area of which they have specialist knowledge, the estate agency sector is today being ‘driven’ by two major factors, both of which work in favour of the bigger agencies - and both of which are so expensive that it is increasingly difficult for the small agencies to afford them.This is the view of Bill Rawson, Chairman of Rawson Properties. The two factors to which he is referring are education/training and computer-related technology. “Success in real estate marketing does depend on the agent’s attitude and perseverance - but the history of the Rawson group shows clearly that the performance of an agent can be significantly enhanced if he is regularly trained. A good agent will become even better and an average agent will become a good one. However, training is expensive and demands considerable commitment from the franchisor.” Similarly, said Rawson, IT technology is now a sine qua non in marketing and in the running of a real estate operation – and is costly. “Today’s consumer and potential client is increasingly IT savvy: he wants to do his research away from the agent on his own and preferably before he meets him face-to-face. He expects to be able to use his PC, cell phone or smart phone and iPad to get almost all the information (and pictures) that he needs to help him make his decisions. The information supplied in this way would in most cases cover not only the property but also the area, its facilities, its security and its properties’ economic performance in previous years. For the franchisee running an agency learning to operate sophisticated IT systems is, therefore, essential.” Furthermore, said Rawson, the franchisee running an agency will operate far more effectively if he is given simple, easy to understand systems on which he can track and organise his business, including all the documentation that is such as essential part of property trading. This technology, said Rawson, is improving so fast that these days it has to be updated every few months. This again, he said, is an expensive exercise that the small agencies simply cannot afford. Other factors working in favour of the bigger, more sophisticated agencies, said Rawson, are branding and contacts/referrals. “In groups like Rawsons which have 140 franchises, ongoing exposure and advertising play a huge part in forming and increasing the public’s perception of the company - and with ± 1 000 agents all making, say, four or five contacts per day, up to 100 000 people are kept informed or made aware for the first time of Rawsons each month. The effect of this simply cannot be overemphasised: people will try the well exposed group first, partly because they know that in such a group there is always a more senior person to whom they can refer a problem if their initial contact happens to prove unsatisfactory and partly because success fosters respect.”
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08 July 2011, 10:09:02
Mortgage origination is a tough business at the best of times, and especially stressful in the current tight credit environment - unless you are part of a major group with a high profile national brand, extensive resources and strong relationships with lenders. Which is no doubt why scores of independent origination businesses and bond consultants have already elected to operate under the new MortgageMax banner raised late last year by BetterGroup, the parent company of leading SA originator BetterBond. “MortgageMax,” says CEO Jors van Niekerk, “offers a licence model that enables the smaller originator or independent consultant to immediately ‘plug in’ to the group’s long-established relationships with the banks and to use proven online transaction management and back office admin systems. “There is no upfront capital outlay required as there would be in the case of a franchise, and licensees also save the costs of setting up their own IT and admin support systems. There are also no royalty fees based on turnover, no geographic restrictions and no source or channel restrictions.” In short, he says, MortageMax licensees are able to retain all their independence while enjoying national brand recognition and both business and technology support from a “big brother” with long experience and substantial resources. “And because MortgageMax is part of the same group as BetterBond, our licensees are also able to offer their clients added value in the form of services such as bridging finance (through BetterBridge); credit life and short term insurance (through BetterSure) and personal loans (through BetterLoan).” All of this, says Van Niekerk, adds up to a highly cost-effective package of benefits that is drawing an increasing number of independent operators into the MortgageMax fold. “Our national footprint is increasing rapidly and we now have dedicated relationship managers in most regions. The next step is to convert most of the independents under our existing Mortgage Alliance brand to the group-supported licence model, as this will immediately increase the value and credibility of their businesses. “We are also inviting all independent originators (aggregators) and new entrants to this market to contact our regional relationship managers or myself to discuss our full value proposition in more detail.” ISSUED BY MORTGAGEMAX FOR MORE INFORMATION CONTACT Jors van Niekerk - CEO 082 336 6490 Zelda Killian – Gauteng 083 406 1299 Charmaine du Plessis – Pretoria 082 459 9245 John Goldstone – KZN 084 677 2311 Lindsay de Koker – Western Cape 082 788 6309 OR VISIT www.mortgagemax.co.za
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24 June 2011, 08:29:45
The best time to get into the property market is always right now, says Dorothy Foster, Broker/Owner of RE/MAX Oaktree, which has serviced the Stellenbosch area for the past 12 years.
“Market conditions currently favour buyers who have done their research and are able to make an informed decision about how and where to get their foot in the door. In my opinion, the sooner investors get into the market the better as prices in Stellenbosch have remained the same over the last 18 months and added to that, the lower interest rates are an advantage to any property buyer. For those who currently own property and are selling to upgrade, they must remember that they are selling and buying under the same conditions,” says Foster.
Adrian Goslett, CEO of RE/MAX of Southern Africa, says: “With predictions that the interest rate will increase in the near future, buyers should take advantage of the opportunities that the market conditions we have experienced since November last year have brought about.”
According to Foster, Stellenbosch offers a great return on investment due to capital gain and many of the investors currently buying in the area are purchasing as part of their buy-to-rent portfolio. Stellenbosch has always been regarded as a sought-after area by investors, largely due to its unique offering. “Stellenbosch is 35 minutes from Cape Town city centre, 15 minutes from the beach and just five minutes from the nearest wine farm. The area is alive with art and culture and there is so much history here as it is the second oldest town in the country. There is also always a large influx of students to the area every year making a buy-to-rent property viable for investors,” says Foster.
Statistically most types of properties in Stellenbosch have been performing well, however many transactions have been in the under R2 million category. “There seems to be a strong demand for affordable housing in the area. We have sold high-end properties but most of our transactions have been in the entry-level and mid-range price brackets,” says Foster.
Although the property market is still in the recovery stage after the recent recession, described as the worst in modern times, the market continues to improve and the volume of transactions in Stellenbosch have increased year on year from 2008.
“Here in Stellenbosch, its business as usual and the area has been doing really well. Last year many of the agents at the RE/MAX Oaktree office won awards for their achievements and our office ranked as the number two RE/MAX office in the Western Cape, based on total value of sales. Aside from the improvement we have seen in the market, I think this is due to the fact that our agents are self-motivated, business-minded people with years of experience in the industry,” says Foster
There have been many factors that have influenced the property market recently in the last while, such as the introduction of the new Consumer Protection Act as well as the new legislated qualifications that are required for all real estate professionals. “I think that property buyers and sellers in Stellenbosch and across the country can be assured that they are dealing with professionals and estate agents in our area will continue to focus on providing the invaluable service to their clients,” concludes Foster.
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17 June 2011, 09:55:05
As the cold winter weather begins to creep through our country and we dust off our heaters and try to stay warm, there are many who are not as fortunate and do not have the simple necessities such as warmth or shelter that are so often taken for granted. Many in South Africa are unemployed or homeless and the cold winter months will be a harsh reality to contend with. Some seek refuge in caravans, sink houses or tents, while others have nowhere to go at all.
"Now is the time to get involved in our communities and help one another during the cold months that lie ahead. Saturday 11th June 2011 marked one year since the start of the South African Soccer World Cup and we remember how amazing it was to see our country united in one cause. The country was filled with talk about the spirit of Ubuntu and came together as a nation. Wouldn't it be incredible if we could unite again to help those in our communities that need it most," says Neville Brits, Broker/Owner of RE/MAX Dazzle, that services the Kempton Park and Mulbarton areas. Brits says that his office is currently involved with a project to uplift and help 120 people living in the Kempton Park community. "For many their sense of hope is slowly vanishing and whether young or old we could all use a helping hand at times to get back on our feet. The people that we have connected with are in frantic need of our help, as life has dealt with them harshly and their struggle continues daily," he says. The RE/MAX Dazzle team is currently working on finding a safe place to help settle this community of 120 individuals and families. "We are currently looking at different housing options as well as small business opportunities that would generate an income for the residents once we have found premises for them. The goal is to have a facility that will include child-care for babies and toddlers so that they are being looked after while their parents are contributing to the community. Ideally the project needs to be sustainable and help the participants to help themselves. We want these families to be able to live normal and healthy lives while being able to provide for their own children," says Brits. He continues by saying: "We honestly believe that by pooling our resources and ideas together as well as connecting with our business and personal networks we can make a difference, we can change the lives of 120 people for the better. Our aim for the time being is to help them with their primary needs." Brits lists these as: - Food
- A safe, warm place to sleep
- Basic access to clothing and hygiene facilities
- Help them to re-establish their sense of self-worth and self-esteem
- Address basic social issues
- Help cultivate sustainable income-generating opportunities such as employment
This is a huge project but as the saying goes, you can only eat an elephant one bite at a time. RE/MAX Dazzle is kicking off this initiative with a charity event in conjunction with Sonja Herholdt presenting the 'Heartbeat of Womanhood'. This inspirational event will take place on Saturday 20th of August at 9am for 9:30am at Kempton-Hoogland, 85 De Wiekus Way, Van Riebeeck Park. "We would like to get a minimum of a 1000 women together that would like to sponsor, donate or just support us in this regard either in their private capacity or as a part of their business initiative. Any help is appreciated," says Brits. - By buying a ticket of R100, you will take your first step in helping someone change their life.
- Donate one item of non-perishable food, baby food, wipes, nappies etc. (Companies that are able to donate small gifts, samples and magazines will help us in putting together a 'Goodie bag' for all the ladies taking the time to help and support this project.)
Adrian Goslett, CEO of RE/MAX of Southern Africa, says: "RE/MAX of Southern Africa has a strong association with various initiatives that help those less fortunate than ourselves. As a company we believe in community involvement and giving back to the communities in which we operate in an effort to make a difference in the lives of those who need it most." "We can't do this on our own, but we can do it with the help of the members in our community. The more people that are involved with this project the better and we can stand together united to help those in need and move forward to a better South Africa," concludes Brits. For more information about the project or how you can help please contact Cindy Brits from RE/MAX Dazzle on 084 569 9590.
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17 June 2011, 09:53:11
Local agency ERA Alberton has been named as the Franchise of the Year by the ERA South Africa real estate group, while its principal Jacques Louw has been honoured as the group’s Broker of the Year. The accolades were announced at a recent national awards ceremony, where ERA Alberton also notched up the awards for the top franchise in the northern region (for the second year running) and top franchise nationally in the commission-earned category and top franchise nationally in the bank-assisted sales category. The agency was also named as one of the top three nationally in terms of the total number of units sold, and ERA South Africa CEO Gerhard Kotzé says it has turned in an outstanding performance over the past 12 months, especially considering the difficult market conditions prevailing. He also notes that the group is actively seeking more franchisees in Johannesburg and on the East and West Rand. Louw says several factors have worked in the agency’s favour over the year, not least the increasing recognition of the ERA brand in the Alberton area. “In tough times especially, homebuyers and sellers would prefer to deal with a big-name agency that they know is still going to be around tomorrow, and we have invested heavily in advertising and marketing over the past few years to get the ERA brand well-known in Alberton. “In addition, as an ERA franchise, we are on the panels of all the banks for selling distressed properties before they go into repossession, and that has helped to increase our sales volumes in a depressed market.” As for the future, he says the local property market is definitely improving. “Any home priced between R500 000 and R700 000 is selling almost as soon as it is listed, and the R700 000 to R1m sector is also very buoyant. At prices up to R1,5m we are also getting a better response from buyers now. Although sales are still a bit slower above that mark, any correctly priced property doesn’t stay on the market for too long.” This improvement, he believes, could also be attributed to a change of mindset among buyers - with most now understanding that they need a deposit of at least 10% - combined with a somewhat more relaxed approach to lending on the part of the banks, especially at the lower price levels.
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10 June 2011, 08:30:39
THE RIGHT RETIREMENT OPTION One of the most important decisions you will ever make in your 'Golden Years' will be about the retirement property you decide to buy, says Dorothy Foster, Broker/Owner of RE/MAX Oaktree, which services the Stellenbosch area. "South Africa is fortunate in that there are a wide variety of options available to property buyers looking into retirement communities. These range from modest entry-level properties to plush properties which give the potential buyer the opportunity to make the appropriate decision based on their criteria and financial status," says Foster. Adrian Goslett, CEO of RE/MAX of Southern Africa says: "As with any property purchase the first step is to do your homework and access your finances carefully. As a general rule with buying a retirement home, once you have paid for your home, your monthly income after deductions should be four times the amount of levy that you pay. It is best to consult with a professional financial adviser to assist you in correctly working out what you can afford." Statistically most property investors in this life-stage currently own some kind of property, however, the property they presently own no longer meets their requirements and they wish to downsize or move into a more secure environment that is close to amenities such as hospitals and frail-care facilities. Foster says that investors who own property should have it valued by a reputable estate agent; this will help them assess how much they can afford to spend on their new home. "We find that in Stellenbosch secure retirement estates such as Paradyskloof Villas are very popular among property buyers over 50 years old due to the excellent security and frail-care facilities available to the residents. There are not many properties in Stellenbosch that have all of these facilities so there is a great demand, even for clients looking to rent. Many investors at the estate have bought their property and chose to rent it out until they are ready to move into the estate themselves. Rental incomes range from R8 000 to R12 000 per month," says Foster. Aside from the frail-care services available to residents at Paradyskloof, there are other facilities such as a restaurant for residents and their visitors, tennis courts, a swimming pool and a dam with swans.
Foster says that there are 58 sectional-title units on the estate ranging from approximately 124m2 to 260m2. There are two kinds of property options available to investors. The first option is a two-bedroom unit with two bathrooms, main en-suite and a single remote operated garage. The second option is a three-bedroom unit with two bathrooms, main en-suite and a double remote operated garage. Prices of the units differ depending on their location. Two-bedroom units that directly overlook the dam are priced at approximately R3,2 million whereas ones that don't cost around R2,55 million. Similarly the three-bedroom units will cost between R3,5 million and R2,95 million respectively," says Foster. According to Foster, it is important to ensure that buyers choose the retirement complex that suits their requirements and their lifestyle. There are many estate agents who specialise in retirement communities and their expert knowledge can be an invaluable tool to buyers when looking for the right community to meet their criteria. "Buyers should ask whether their lifestyle can fit into the environment that the retirement complex provides. This will ensure a happy transition into this new and exciting phase of their lives," she concludes. For more information about property at Paradyskloof Viilas or others within Stellenbosch contact Louise Brink at RE/MAX Oaktree on 082 578 5085.
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10 June 2011, 08:29:36
The last decade, says Bill Rawson, chairman of Rawson Properties, has shown conclusively that in residential property marketing franchising is far and away the best route to achieving real results and ongoing growth. “In the 20 years or so that we ran with branches controlled and run by a head office team, we had many really good performers – but, almost without exception, they upped their game when they became franchisees.” Even more significantly, said Rawson, once the franchise system had proved itself, “as it did in a short space of time”, it resulted in the group being able to recruit or promote top level independent entrepreneurial leaders who would never have been content under a centralised branch system but who flourished when put in a position of real command. Asked why, if the system is so effective, certain franchise groups have had a fairly high dropout rate Rawson said that a good franchisor will always provide a 24/7 support group, training and systems which enable the rookie franchisee to survive the first year – and indeed, thereafter. “We made some mistakes when we set up our franchising network – but we always understood the importance of real backup. All the groups that give 100% support to their franchisees have flourished. Those who simply sell them the right to operate under their name and to capitalise on their brand without providing significant support have seen high failure rates.” For further information contact Bill Rawson on 021 658 7100 or email bill@rawsonproperties.com.
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03 June 2011, 09:01:22
Rawson Properties Somerset West franchise is marketing this Tuscan style home in the Spanish Farm area at a price of R9,1 million.
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View site home is a bargain at its price of R9,1 million, says franchisee.
Over the last two years Schalk van der Merwe, the franchisee for Rawson Properties Somerset West, has taken it upon himself to cultivate the high-end market as much as possible. As a result, he reported recently, he now controls some 20% of the mandates in certain areas, one of the most satisfactory of which is the affluent Spanish Farm district near Somerset West.
The Spanish farm area, says van der Merwe, is genuinely acknowledged to be the most elite area in the Helderberg - and, he adds, turnover here has been far better than most property watchers would expect.
Looking at the Spanish Farm sales of the last few years, van der Merwe said that in 2005 13 sales were achieved (with a total value of R36,2 million) and in 2009, in a year which most people regard as the worst in recent property history, there were nine sales with a value of R48,6 million.
These figures, which van der Merwe extracted from the SA Property Guide, indicate, he says, that although prices in the area have not risen spectacularly they have continued to rise.
“This is a factor of which all interested in the area should definitely take note, because it is a safe bet that if price increases could be achieved in such a tough time they will be a great deal more satisfactory when the current recession ends, which I estimate will take another 18 to 24 months.”
Van der Merwe has recently been given the sole mandate for a home on the roller coaster, high level Rembrandt Road which links the Helderberg Nature Reserve with the Helderberg College precinct. This is thought by many estate agents, says van der Merwe, to be one of the most attractive suburban roads in South Africa.
Views from the home for which he now has the mandate take in a panorama that includes the Hottentots Holland Mountains to the south, False Bay and the southern spine of Table Mountain to the south and west.
“It would be very difficult indeed to find a home with more impressive views than this one,” says van der Mewe.
The double storey Tuscan style home was built to German standards (the client was, in fact, German) and has many finishes and fittings that would normally only be found in upmarket, European homes. Many of the cupboards and fittings have been handcrafted and several of the interior walls have been painted by Italian artisans.
The home has five bedrooms, all en suite, three receptions rooms, a bar, a wine cellar, a scullery and a double garage in which the doors open and close in response to electronic controls.
The steep slope of the property has not, says Van der Merwe, deterred the owners from developing a garden, which is irrigated by a computer-controlled system - but perhaps the most attractive feature on the entire property, he says, is a large, rim-flow pool sited in front of the living and dining areas.
The home has no less than 550m2 of floor area, which is three times the size of the average South African middle class home, and is on a plot of 2,425 m2.
Under ‘normal’ trading conditions, says van der Merwe, a home of this quality would sell for a far higher price than the current list price, which is R9,1 million. This, he says, is exceptionally good value, even in a market where upper bracket homes are taking anything from six to 12 months to find a buyer.
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03 June 2011, 08:54:34
They way in which the recent South African elections were run and the trends that emerged in the voting patterns will send a positive message to potential property investors, says Bill Rawson, Chairman of Rawson Properties – and, he adds, he will be relaying the news of this success to the business colleagues he meets in the three week visit to the USA on which he is now about to embark.
“Many in the First World,” said Rawson, “have slapped a Third World African label on South Africa – but Third World countries tend not to have well-run peaceful elections, nor do their voters show a mature understanding of the delivery and economic issues at stake – as a significant proportion of SA voters appear to have done this time.”
Rawson said that the fact that a truly multiracial party, like the DA, had been able to increase its share by 12,37% to 24% and that about 20% of its support now comes from black Africans is “hugely encouraging”.
“There are now signs that the hurts and discrimination of the apartheid era can be forgotten and that young, educated Africans will start to support those parties which best advance their prospects and do not rely purely on racial loyalties for votes.
“The reaction of potential property investors both here and overseas to this voting pattern has been cautiously optimistic. We can only hope that in the next four years those who play the race card will be further shunned by those looking for real efficiency in government.”
One very positive result of the elections, said Rawson, is that they should speed up the delivery of low cost housing and services.
“The lack of delivery has proven so contentious in this election that all responsible for it will now realise that a faster rate is a key to their survival – and more will benefit at last from all parties. The regular chant “we are here for the poor” may become more of a reality.”
In previous statements, Rawson has repeatedly argued that with the money markets and the JSE still showing signs of volatility, property represents a viable, safer investment channel.
“This,” he said, “has been my message for over 40 years and I have yet to find an investor who took our advice who today regrets it.”
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03 June 2011, 08:53:13
When new trustees are appointed or former trustees re-elected in sectional title schemes it often happens that they fail to observe one of the most important clauses of the Sectional Title Act, the rule that trustees must convene within 14 days of the AGM to pass certain resolutions.
Pointing this out recently, Michael Bauer, general manager of IHFM, the property management company, said that Section 37(2) of the Act lays it down that within 14 days of the AGM trustees have to:
- elect a chairman;
- set the levies for the coming year and stipulate when and how they will be paid;
- determine the interest rate to be charged on levy arrears; and
- sign the financial statements for the finances for the past year.
If for any reason the trustees are not able to meet, these resolutions can be signed and confirmed by them in a round robin resolution which they must sign and send back to the management agent for filing in the minute book.
It is particularly important, added Bauer, to decide by what date monthly levies are payable and to remind members that the bank transaction fees are for their account.
“Many members today do not appreciate how onerous these fees can be, especially if levies are paid in cash,” said Bauer.
If these resolutions are not made on time, levy and debt collection becomes very difficult – nor does it help to try and charge an approximate levy which can then be added once the calculations are worked out.
“In these circumstances,” he said, “the member who is called on to pay more will often avoid payment.”
A free copy of a sample trustee resolution is available by going to http://www.sectionaltitlesa.co.za/banner/Resolution of first trustee meeting.pdf
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03 June 2011, 08:51:18
<p>There has been further comment, this time from Michael Bauer, general manager of IHFM, the property management company, on the court case (Swingborne v Newbee Investments) in which the tenant in a block of flats was able to sue the body corporate successfully for damages after he injured himself on a flight of stairs that had no handrail.</p>
<p>Bauer says that in his experience many schemes’ liability insurance specifically excludes any claims for damage to the property and occupant’s possessions but neglect to exclude damages or injury that might happen to people.</p>
<p>“The liability clauses are often inadequate,” said Bauer. “At IHFM we advise having a policy that does cover personal injuries. This has to be complemented by warning signs regarding slippery surfaces or any other hazard as well as regular health and safety inspections.” </p>
<p>Public liability policies, he said, are not required by the Sectional Title Act, but his does not alter the fact that it is wise to have them and ensure they provide sufficient cover.</p>
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03 June 2011, 08:48:50
<p>Investors looking for idyllic coastal property coupled with secure estate living will find it in Sheffield, says John Pechey, Broker/Owner of RE/MAX Dolphin Realtors. </p><p>
With its long history of sugar cane farming, Sheffield is arguably one of the most beautiful areas on the North Coast of KwaZulu-Natal. Given its name in honour of sugar magnate Sir Leige Hulett’s birthplace in Sheffield, England, the area is one of the best kept secrets of the Dolphin Coast.</p><p>
Initially a sugar cane farm, Brettenwood Coastal Estate, situated above Sheffield Beach is set high on a ridge overlooking the Indian Ocean. The estate successfully combines the security and facilities of a gated residential estate with the tranquillity of a sub-tropical coastal lifestyle. “This estate offers the best of both worlds with beautiful ocean views from many of its stands along with a high level of security to the home owners,” says Pechey. </p><p>
Adrian Goslett, CEO of RE/MAX of Southern Africa says: “There is definitely a strong demand for secure lifestyle properties such as Brettenwood Coastal Estate, with more and more buyers requesting to be shown properties in gated estates.” </p><p>
The 104,34 hectare estate, which forms part of the 3000 acres purchased to supply the first sugar mill at Tinley Manor, is being developed by The Hulett Development Company (Pty) Ltd. Approximately 70% of the total land area will be developed with 25% of the development already completed. More than 26% of the estate is private open conservation space. </p><p>
Brettenwood Coastal Estate is the dream and legacy of developer Brett Hulett, a fourth generation Hulett. Says Brett: “I have spent most of my life as a farmer compromising nature with insecticides and poisons in order to earn a living. This is now my chance to give something back by restoring nature and thereby creating a truly special place – Brettenwood Coastal Estate. To date, we have planted more than 3000 indigenous trees on the Estate, 2000 of these along our verges. Our conservation areas on the Estate are lush and full of bird and small wildlife. The stunning sea views a large part of the Estate has to offer as well as our inland views, particularly in the late afternoon when the sun starts to set, are breathtaking – nature at its best”.</p><p>
Brettenwood Coastal Estate is positioned between an indigenous forest on one side and the Indian Ocean on the other. The architecture was specifically selected to enhance the natural beauty and to create homes that are in harmony with the surroundings. There are four individual eco-zones and several well populated catch-and-release dams for the eager fisherman. Picturesque walking trails meander through the estate under forest canopies, making it easy to forget that the estate is situated in one of the fastest developing areas along the North Coast. </p><p>
“When in you invest in property such as this you are making a lifestyle choice as well as ensuring a good return on your investment,” says Pechey. “This estate is in an excellent location, features facilities for all members of the family in different life stages and is close to amenities. What more could a property buyer want?” he asks. </p><p>
Once completed, the estate will boast approximately 300 free standing homes and 400 sectional title units. Pechey says that buyers have the option of purchasing land, freestanding homes, building packages or sectional title units. Land prices start at R650 000, building packages at R2,95 million, built homes at R3,25 million and sectional title units at R1, 925 million. </p>
<p>One of the properties in Brettenwood Coastal Estate that is currently being marketed by RE/MAX Dolphin Realtors is a R3,4 million double-storey freestanding home. It offers four bedrooms, three bathrooms and a kitchen featuring a gas hob and electric stove. Other features include a double garage, six air-conditioning units, solar heating, fibre optic TV and internet connections, mechanised chair lift on the suitcase and a private swimming pool.</p><p>
For more information on this home or other properties within Brettenwood Coastal Estate contact RE/MAX Dolphin in Ballito on 032 946 0881 or Salt Rock on 032 525 4796. </p>
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03 June 2011, 08:47:49
<p>Ongoing reporting on the USA’s massive debt, serious economic problems in at least five European countries, war, revolution and other problems in the Arab world, Afghanistan and Pakistan are said by some to have dampened confidence in property worldwide – and here in SA.</p>
<p>One residential property sector leader who, however, still takes a long-term optimistic view is Lanice Steward, MD of Anne Porter Knight Frank.</p>
<p>“With over 30 years in the marketing of property,” she said, “I incline to the view that the more severe the downturn, the more positive the eventual upturn usually is. There is some evidence in SA that our residential property market operates in ten year cycles: we saw downturns and huge difficulties in getting bonds in the early eighties and mid-nineties followed by big upturns in 2008 to 2009, and in 2010 we were again in a recession. It seems to me highly likely that we will again be in a positive growth phase from 2012 to 2013.”</p>
<p>Pessimistic property watchers, said Steward, tend to forget that it is only two years since the residential market hit rock bottom – and that recoveries take three to four years.</p>
<p>“My view is that the first signs of a more optimistic outlook, e.g. more buy-to-rent investors coming in, are now becoming evident.”</p>
<p>It is also encouraging that FNB are easing up on their lending criteria. When one bank does this others often follow suit. The National Credit Act is open to a variety of interpretations but now that the worst of the recession is behind us it is possible that it will be applied with less stringency. </p>
<p>“My feeling has always been that the Act was used by the banks as a reason for being tough on lending in the recessionary conditions. If we can get back to something like the previous loan conditions, without being irresponsible or careless, there is a host of buyers waiting for an opportunity to get onto the property ladder – or move up it.”</p>
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27 May 2011, 14:32:30
 Asrin Property Developers are now gearing up for what they say will be an exciting launch for the second quarter of this year: Azure at Big Bay, on the Cape West Coast just 20km from Cape Town (which can be reached in 20 minutes in off-peak traffic times) which will, they say, add a new dimension to the total Big Bay offering.
Azure will consist of one, two and three bedroom apartments varying in size from 46m² to 146m². They will be sited on the steep slope behind but overlooking the chic R600 million Eden on the Bay mixed use project, which was also developed by Asrin and which has now been in operation almost two years. Azure will, therefore, form part of the prestigious central Big Bay village precinct below Otto du Plessis Drive and within three minutes walk of the beach and, being on the doorstep of Eden on the Bay, its residents will share in its cosmopolitan lifestyle. “What makes Azure unique and appealing to buyers is that it will offer units at prices in general at least half the going rate of apartments in the Big Bay area,” says Shiraaz Hassan, commercial director for Asrin. “Buyers will have an opportunity to purchase a two bedroom apartment from as little at R15 794 per m² whereas most apartments in Big Bay are selling at R26 000 to R30 000 per m². It goes without saying that these prices can never be repeated in this precinct.” Hassan said that Azure’s design, by the architects Smith and Smith, will place the emphasis on a convivial, communal lifestyle. It will do this by confining the residents’ cars to an underground parking basement, and by creating a large central landscaped courtyard with a two level swimming pool and entertainment areas which will be open to all residents and their guests. Many apartments will have exclusive use patio areas and the views from their upper levels will take in Table Bay, Robben Island and the internationally recognised east face of Table Mountain. Since the launch of Big Bay, said Hassan, many people have approached Asrin and other developers here about buying at Big Bay but in general the prices are above what most can afford. “Now at Azure,” he said, “prices are suddenly within the reach of the middle income earner.” This, he added, has been quickly appreciated by the more astute property watchers, with the result some 20% of the units have already been put on reserve for buyers who have learned by word of mouth of the new scheme. A pleasantly surprisingly high proportion of those who have shown interest already, said Hassan, are currently renting at Big Bay and the immediate surrounds. “In view of the pre-launch interest we are fairly confident that we will achieve full sell-out towards the third quarter of this year and will be able to pass transfers to end users by the end of 2012,” said Hassan. “It cannot be overemphasised that to be able to buy a luxury two bedroom Big Bay apartment for less than R1 million, where many units are priced at over R3 million, is a rare opportunity.” Contact the sales agents: Seeff Blouberg on the following numbers: 021 5571115 OR Emarie Cambell on 083 601 0822.
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20 May 2011, 08:13:43
Quentin Miller with examples of some of his work. |
Bill Rawson, chairman of Rawson Properties, remarked on one occasion that “architects
are nice men – they like to draw”. Being creative, it is easy for
architects to get carried away at times and to overrun the budgets of their
projects, he said.
One Cape Town architect who has always avoided this temptation and has a keen
awareness of the financial implications of his decisions – but who is also
passionate about drawing, is Quentin Miller. Throughout his 35 years in architecture,
indeed, for most of his life, he has drawn and painted. Miller's architectural
clients have always enjoyed participating in the design process as he produces
quick freehand perspectives that enable them to visualise the design.
Miller now has his own gallery, stocked exclusively with his paintings, at
Little Stream, the large garden conference centre at the end of Klein Constantia
Road, on the east slopes of the Constantiaberg.
Here visitors can see not only some of the 40 or more paintings and sketches
coming off Miller’s easel but also the self-bound collections of paintings
and text produced by him covering his sailing trips in the Caribbean and walking
experiences in the Himalayas, Tuscany, the Greek Islands and South Africa.
Miller, who at one stage in his career was partner to the architect and artist,
Hannes Meiring, is, like him, especially drawn to depicting old buildings and
designs which meet his approval.
His practice has specialised in “giving new life” to older buildings
such as Nazareth House, The College of Magic, The Decks and 56 Shortmarket Street
– and he almost invariably celebrated their completion by doing one or
more watercolours of them – which in many cases his clients have “seized”,
making it necessary for him to do another.
As he enjoys this work so much, Miller is now making himself available to any
home or building owners in SA to do a painting of their building. What is more,
his prices are very affordable, starting from R2 500 for an unframed A3 painting.
“A good painting,” he said, “can catch the spirit of the building
in a way that a photograph can seldom do. People usually come to me for such
paintings because they have just bought a new home or are about to sell, or
simply because they have grown to love their homes. Often they will make colour
reprints which they use as Christmas or greeting cards, invitations or in some
other way.”
Although right now he is not always able to get onto such projects immediately,
the delay before he gets started on a painting, says Miller, is seldom more
than two weeks – and he very definitely would like to do at least two per
week from now on.
Miller can be contacted at 083 330 3492 or by email at qmiller@iafrica.com.
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13 May 2011, 08:03:46
<p>The Upper Kenilworth area has been one of the most stable and consistent on
the Cape Town property market and any buy in this suburb has tended to be a
good one, says Tanya Jovanovski, CEO of Rawson Auctions.</p>
<p>“We have,” she said, “always found that properties sold here
attract the shrewd, long term investors who know that rentals in this area are
good and the type of tenant attracted to the precinct is reliable.”</p>
<p>At 12 noon on 17th May Rawson Auctions will be auctioning a north-facing freehold
duplex with 124m² of floor space in 8B Auburn Road, one of the best parts
of Kenilworth.</p>
<p>Like many flats, it has some 50% more space than is found in most units being
developed and sold today. It has a large living room with a bay window overlooking
a small garden, a well fitted kitchen with under counter oven and built in hob
and the installations for a dishwasher.</p>
<p>On the upper floor are three bedrooms, all with fitted cupboards. The main
bedroom is en suite and there is, too, a second bathroom. The property has a
lockup garage and ample parking and, unlike most new apartments sold today,
is not subject to any levies nor has to comply with any homeowners’ association
or house rules.</p>
<p>Jovanovski estimates that the apartment could attract a rental of R6 500 per
month. She expects bidding to be around the R1,3 million mark.</p>
<p>Previewing, says Jovanovski, can be arranged.</p>
<p>For further information contact Tanya Jovanovski 082 411 9599 or Jason Lee
082 940 6605. Both can be telephoned at their office on 021 658 7100 or emailed
via info@rawsonauctions.com. </p>
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13 May 2011, 08:03:28
The chairman of Rawson Properties, Bill Rawson, has drawn the attention of
buy-to-rent investors to the fact that the latest FNB property survey, compiled
by the bank’s respected economist, John Loos, has shown that sectional
title units have recently been far and away the best performers in the residential
housing sector.
“The FNB report,” said Rawson, “shows that in both the fourth
quarter of last year and the first quarter of this year, sectional title units
sold faster and saw greater price rises than any other sector. Those units with
less than two bedrooms did particularly well, showing a 6,6% price rise in the
first quarter of this year. No other segment of the property market has equalled
that kind of increase recently.”
Rawson Properties’ development company, said Rawson, had identified this
trend two or three years ago and since then has only built sectional title units.
They are currently bringing 416 units to the market, in the Rondebosch area
and Grassy Park at prices ranging from R750 000 to R2,2 million.
Rawson said that his franchisees’ experience in the selling of sectional
title property is that the major reasons for their popularity, apart from affordability,
are the additional security such homes offer and the fact that most are well
positioned in relation to work areas and to public transport.
“People will now pay a 20% premium – or more – for security
and an even higher premium from being able to cut down travel time even if this
means opting for a smaller, less comfortable unit,” he said.
John Loos, the FNB economist, said Rawson, has pointed out that the rise in
first time homebuyers (now 22% of all sectional title buyers) has been a big
reason for the success of this sector.
“Again, we at Rawsons would agree with this but it has to be added that
it is extremely difficult today to meet the cost limits set for first time homebuyers,
particularly if the land is in a popular precinct, reasonably close to the city
and has already been rezoned.
“As Sean McCauley, our northern region director, has said, a broadening
of the base applicable to FT buyers, but keeping it limited to the affordable
sector, would be very welcome indeed.”
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15 April 2011, 08:03:27
A prediction made earlier this year by Dante Fratti, Chief Executive of D F
Properties, one of the Cape’s most successful property marketers of residential
property at Century City, appears to be coming true.
In February, Fratti said that he foresees sales of previously occupied Century
City homes rising significantly before the end of 2011.
Since 3rd January, his company has, in fact, almost doubled its previous monthly
turnover. It has recently achieved seven sales and, said Fratti, another half
dozen possibilities await confirmation.
The confirmed sales are all in the R750 000 to R2,3 million bracket, thereby
bearing out another of Fratti’s claims, that Century City can still provide
high value sectional title and freestanding homes at prices that middle income
earners regard as acceptable.
The sales to date were for:
· a plot, a two bedroom unit and a three bedroom unit at Century View;
· a three bedroom three bathroom sectional title unit at Waterstone
East;
· a three bedroom garden apartment in the popular Island Club;
· two apartments in Royal Ascot (adjacent to Century City).
Fratti said that although value growth in these and similar units had been
negligible in the last two years, since 2004 to 2007 the properties he has sold
at Century City have increased substantially, for example, the sale of a standard
two bed apartment at The Island Club, originally purchased off plan for R850
000 is available at R1 300 000 and a two bed apartment at Villa Italia sold
off plan for R550 000 could achieve R920 000 in the current market.
Asked why he sees an improvement on the horizon, Fratti said that the banks
seem to view Century City (and his company) in a favourable light and almost
all who have bought through him have been able to access mortgage bonds, most
requiring only 5% or 10% deposits.
In addition, said Fratti, his experience has been that investors, seeing the
better times ahead and now tired of the low money market returns, are coming
back fast to property, especially in established areas like Century City where
lock-up-and-go units, a cosmopolitan lifestyle and 24/7 protection are available.
“This,’ he said, “makes sense when you consider that a two bedroom
apartment in a development such as Villa Italia can be had for as little as
R920 000 and will give a monthly rent from day one of R5 800 to R6 000.”
This year, said Fratti, D F Properties will be looking for mandates in properties
close to Century City but slightly less expensive.
“We feel obliged to do this,” he said, “because every week we
are approached by buyers who very much like what Century City can offer but
want to be in lower priced units, preferably close by. A big market is, therefore,
opening up in developments at Royal Ascot which have their own attractions but
which to an extent are beneficiaries of the whole Century City success.”
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08 April 2011, 09:33:19
The public has every right to protest against a new development in the Cape Town
Metropole (in indeed, anywhere else) but far too often this happens without any
reference to the zoning laws.
When, therefore, the objections are heard but rejected, allegations of bias
or favouritism are all too often levelled against councillors and/or the city
planners, who are even accused of being in cahoots with the developer.
This was said recently by Paul Henry, MD of Rawson Developers.
“Cape Town’s development rules are, in fact, some of the most exacting
in South Africa and have deterred many a developer from trying to do business
here. It certainly does not help to have objectors who, to add to our difficulties,
do not consult the zoning legislation but simply lodge a protest on the “not
in my territory” principle.
“What protestors sometimes fail to understand,” said Henry, “is
that the City Council is trying to reverse the injustices caused by apartheid
which forced poorer (non-white) people to live on the urban fringe and spend
hours (and cash) each day travelling to and from their work places.
“The only way this can be done is to allow in-city residential development
and to densify residential areas that are reasonably close to the city or industrial
nodes. The good news is that, although this policy is accepted by the Council,
they have gone about it with extreme caution and with due regard, wherever possible,
for the existing residents’ privacy and view rights.
“That said, it has to be accepted that the knocking down of single residential
units or small flat blocks and their replacement with four or five storey blocks
will often not be to the liking of those who live nearby, even when the new
scheme’s landscaping is taken seriously and the aesthetics are put up for
widespread comment – but developers cannot be expected to forgo the opportunity
now open to them to create higher density complexes in areas like the Southern
Suburbs, where these are zoned for this.”
Cape Town’s new Integrated Zoning Scheme, which will shortly become law
is, said Henry, not a departure from the existing policy but a combination of/coordination
of the 20 or more different zoning schemes on which the City Council has worked.
In terms of the Metropolitan Spatial Development Policy of 1999, densification
in selected areas (“urban corridors”) of 40 to 100 units per hectare
is allowed. The urban corridors, said Henry, have to lie within one kilometre
of major roads or railway lines.
Protestors who run to their councillors as soon as a scheme is announced should,
said Henry, first become familiar with the zoning rulings. These can be viewed
in colour-map format on http://map.capetown.gov.za/PBDM_Viewer/.
“Most major developers are, I find, community sensitive and always consult
with residents in areas they want to develop,” said Henry, “but there
is no point in residents trying to overturn existing planning/zoning legislation.
Instead they should cooperate with the developers to ensure that their neighbourhood
gains the maximum benefit out of the scheme.”
Henry commented that no high density Rawson project had ever lowered the value
of other units in its area.
“On the contrary, they almost invariably raise values – as we have
seen recently at Rondebosch Oaks.”
Footnote:
The apartheid policy which pushed thousands of people out into areas where
they did not want to live was, said Henry, contrary to the evolutionary nature
of cities because the poor have traditionally lived within half an hour’s
walk of their workplaces.
“One has only to look at London’s East End in the last half of the
19th Century and the early 20th Century to see how beneficial close proximity
can be,” he said. “The architect, Lord Holford, has shown that in
every major city in Europe the lower classes throughout history occupied houses
close to the core, although usually on the “wrong” side, of the city,
creating lively communities (like District Six) with their own spirit. In a
small way, high density developments with communal facilities do the same.”
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25 March 2011, 07:48:33
At the bottom of the recent downturn in the property sector, Parklands, the
West Coast suburb 15km north of Cape Town, had some very bad press – it
did at one stage appear to have many distressed sellers – but it is now
emerging from this downturn in triumphal fashion, says Gary Claven, the Rawson
Properties franchisee for this area. (He is also the franchisee for Rawson Properties
Atlantic Seaboard franchise).
"The plain truth," said Claven, "is that with an average price
per unit of just under R1 million, Parklands has an amazing sustained ability
to attract buyers, even in bad periods. Its prices now are exactly right for
today's market."
A recent Lightstone Survey, said Claven, has shown that Parklands, with 495
sales in 2010, i.e. well over one per day, was one of the top two or three most
active residential areas in South Africa in 2010 – and in previous years
it was always in the top five.
"This huge suburb," said Claven, "has 6 187 freestanding properties
and 89 sectional title schemes with 4 163 units. This makes it a very big precinct,
but there is room for future expansion. Roughly 10% of Parklands properties
changed ownership last year (a very high figure by South African standards)
and all the indications are that the sales will improve further this year."
His nine agent franchise, said Claven, has cornered a high percentage of the
market and last year handled 37% of the total sales volume in Parklands.
"With three bedroom freestanding homes still available at R850 000 and
very few homes priced much above R2 million, this is an area where a keen agent
can rope in buyers day-after-day," said Claven. "What is more, even
in the sectional title units, the swing now is to first time homebuyers and
away from buy-to-rent investors. This augurs very well for the future of Parklands."
Despite this, said Claven, Rawson Properties and other estate agents in the
area have strong rental portfolios. His two man team in fact manage close to
200 properties and, when selling to investors rather than to occupant owners,
the ability to offer this facility is much appreciated.
"Buyers who learn to trust you in the sales process like to come back
to the same team for the management of their rentals. It is very seldom, indeed,
that someone who buys through us does not also use us to manage their properties
if they are looking for a rental agent."
As one would expect, said Claven, demand is especially strong right now for
the four major security estates in the precinct. Here premiums of over 20% (on
a per square metre basis) are being charged for space, but nevertheless the
average price is still only around R1,2 million.
The first signs of price rises are now, said Claven, becoming evident at Parklands
and anyone contemplating buying here should do so within the next six months.
This, he added, would also enable them to notch up a purchase before interest
rates rise, as some are predicting they will do early in the new year.
"A factor which has been mentioned but is, I think, still insufficiently
valued is that the IRT (Integrated Rapid Transport) buses, running every 15
minutes at peak hours on their own dedicated tracks, will cut the travel time
to the city to a mere 20 minutes – this compares extremely well with the
80 to 90 minutes taken by vehicles at peak hours moving both in and out of the
city. It will have a huge impact on house prices and on demand for the area."
The fast IRT buses, said Claven, will stop only at Table View, Sunset Beach,
Milnerton, Lagoon Beach and Paradise Island before reaching the city.
In Claven's team there is at least one agent (Marius van der Bank) selling
two to three houses per month and at least one (Fred Chenal) who regularly sells
two homes per month. Last year the agency also had the top rookie agent in the
Rawson group, Shannon Ficek.
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24 March 2011, 15:29:50
 Teaming up once again with Gary Vos, one of his most successful developer clients, Mike Abrahamse, owner and principal of Rawson Properties’ Blaauwberg franchise, is now selling eleven luxury beach house apartments in Vos’ latest development, “Beach Walk”.
The new project is in Waves Edge, Bloubergrandt and is the sixth West Coast beach-related project that Abrahamse has marketed for Vos’s Blouberg Coastal Properties Trust group. All have sold in a fairly short space of time.
Vos’ architect, Enrica van der Linden, has opted for a clapboard façade and mono pitched roofs that will give the complex the currently popular Cape Cod look. Van der Linden has said that she wanted to create a beach related project, one that would be filled with light and encourage informal living.
Seven of the units are one bedroomed, the remaining four being two bedroomed. Four units will have their own private sunny gardens. Six garages are tucked in under the homes and are entered via a brick paved east facing side of the scheme. Each apartment will have its own dedicated, secure parking bay within the complex grounds.
Floors will be tiled or wooden and the interiors, says Abrahamse, will have cool neutral beach colours in shades of light blue and white.
“As one would expect in such sophisticated units,” he said, “they will have state-of-the-art fittings such as stainless steel ovens, hobs and extractors and granite working tops.
“This is the sort of lock-up-and-go home that suits the fast-moving, upwardly mobile single person or couple, possibly with children, who enjoy the outdoor beach life (the beach is, in fact, only two minutes away) and the boulevard/bistro lifestyle which is now so popular in the focal points of the Blaauwbergstrand beachfront,” says Abrahamse. “There are, we estimate, at least eight restaurants within 500 metres of this complex.”
Prices at “Beach Walk” begin at R599, 000 for a one bedroom unit (although many are priced in R600, 000s). Prices for a two bedroomed unit start at R799, 000 rising up to R895 000 for a sunny north facing unit on the ground floor with a landscaped private garden.
A landscaped park with a children’s jungle gym is also planned for those units without gardens.
An optional full furniture “pack” is available to buyers and is, says Abrahamse, especially well suited to those buying an apartment as holiday accommodation and planning to rent it out when they are not there. Furniture packages are priced at R17 000 for a single bedroom unit and R20 000 for a two bedroom apartment. These packages include TV sets, refrigerators, blinds, linen and much else.
“Considering the position of the development and the quality of the finishes, Beach Walk will always be in demand by tenants and will be easy to resell in the future. This is an ideal project for investors either as a short-term speculation or a long-term income generating buy with excellent capital appreciation,” said Abrahamse.
A sales office will be established on site and will be in operation by the end of March. Occupation of the units will be given early December 2011 with transfer taking place during February 2012.
For further information contact Mike Abrahamse on telephone numbers 082 555 5390 or 021 557 5514 or email mike.bw@rawson.co.za.
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24 March 2011, 15:26:11
The Sibani Sands development situated on the KwaZulu-Natal north coast presents
first time buyers, retirees and buy-to-let investors with an ideal real estate
investment opportunity, says John Pechey, Broker/Owner of RE/MAX Dolphin Realtors.
Located in Westbrook, between Umdlodi and Zimbali – a mere five-minute
drive from the new King Shaka International Airport – units in Sibaya Sands
range in price from R795 000 for a two-bedroom, two-bathroom unit, up to R890
000 for a three-bedroom, two-bathroom unit. The penthouses, which consist of
three bedrooms and two bathrooms, and boast extra exclusive-use areas and outstanding
sea views, are priced at R1,295-million each.
“There are 18 sectional title units in the complex, and we have already
sold 10 of these,” says Pechey. He explains that the two-bedroom units
measure approximately 72m2 and come with covered carports. The three-bedroom
units measure approximately 89m2, and each one has its own private 16m2 lock-up
garage. “The real selling point is the development’s location however,”
he says. “Apart from being conveniently and centrally situated, around
70% of the units in the development boast outstanding, panoramic sea views.”
Pechey notes that Sibani Sands provides first time buyers with an attractive
investment option. “The top-end, quality finishes, the generous size of
the units, and the comparatively low prices are all qualities that are difficult
to find along the popular north coast strip. Furthermore, the proximity to the
new airport and Sibaya Casino, as well as the security features and tranquil
and aesthetically pleasing natural surroundings makes this development a very
attractive investment option.”
What is more, Pechey says that the price of the units includes VAT, so buyers
won’t have to pay any transfer duty when they purchase a unit: “Buyers
have the option to use the money they have potentially saved up for transfer
duty to put down a larger deposit on the unit they want to buy. This in turn
will increase their chances of a bond application being approved by the local
mortgage lenders as the larger the deposit, the higher the chances of the loan
being granted and the better your chances of negotiating the best interest rate
possible.”
Adrian Goslett, CEO of RE/MAX of Southern Africa, says that Sibani Sands is
ideally positioned to take advantage of the fact that 2010 marked the highest
percentage of first-time home buyers entering the market since 2005. “A
local study by a South African bond originator noted that in 2010, the proportion
of first-time buyers as a percentage of total applications increased to 47,61%.”
Pechey adds that interest rates are also currently at a 30-year low, and improved
affordability has enabled many potential homeowners to make the leap of owning
their own home, since the cost of servicing their mortgage has been considerably
reduced.
“Sibani Sands is ideally suited to take advantage of this positive development
in the local housing market – the price is right, the position is right,
the lifestyle offering is right – this is a solid investment for anybody
who may be thinking of entering the market,” Pechey concludes.
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18 March 2011, 10:58:52
National real estate company Aida is riding to the rescue of all long-serving
estate agents who have still not completed their RPL portfolios to obtain the
new compulsory real estate qualifications – and are short of cash to do
so.
“This is the last year in which agents who were registered before July
2008 can get an NQF4 or NQF5 level qualification via the Recognition of Prior
Learning (RPL) route,” says Aida CEO Young Carr, “and we want to help
them do so without delay.
“So together with top real estate training company Ditasa*, we are offering
them assessment, assistance and coaching to enable them to compile the necessary
portfolios of evidence and fill in any gaps in their training, at half the normal
price for such courses.
“What is more, they will be able to make payment over three months, so
there should be no strain on their cash flows, even if they have to take some
time off work to attend classes. And this offer is open to any registered estate
agent, from any company.”
Agents who do not complete RPL portfolios before the end of this year, he notes,
will have to join those who were registered only after July 2008 in taking the
standard NQF4 and NQF5 courses – which they will have until the end of
2013 to complete.
“However, those who would like to obtain their qualifications sooner than
this can also immediately start the relevant course through Ditasa – which
has training centres around the county - and will also be able to pay these
off over several months.”
For more details, agents should contact the Ditasa helpdesk on 0861 –348-272
or helpdesk@ditasa.co.za
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18 March 2011, 08:35:43
At the end of September last year, credit bureaus had records for 18.35 million
credit-active consumers, of which 53,7% were classified as in good standing,
according to the National Credit Regulator’s report. The report notes that
this was an improvement from the previous quarter and in fact, is the first
improvement in consumers’ credit reports since December 2007. However,
there are still 8,49 million consumers with impaired credit records.
In light of these figures and in line with predictions that distressed properties
could form up to 30% of all residential transactions over the next three years,
Kevin Reddy, Broker/Owner of RE/MAX Sell-ect, says the time has come for real
estate agents to lead the housing market into recovery by providing solutions
for homeowners in need.
“There are unfortunately too many homeowners who are unable to service
their home loan debt that don’t make use of the assistance or advice that
real estate professionals can offer,” he says.
Reddy notes that four of his agents are Certified Distressed Property Experts
that have been trained extensively to understand the options, solutions, and
effective methods for dealing with homeowners facing financial hardship. “A
Certified Distressed Property Expert is a real estate professional with specific
understanding of the complex issues confronting the real estate industry, and
the options available to homeowners to take in order to avoid their property
being repossessed by the financial institution that holds the bond,” he
says.
The International Certified Distressed Property Expert Professional Designation
(CDPE) course was launched exclusively to RE/MAX Broker/ Owners and Sales Associates
in January this year. The license to Designate agents in South Africa was obtained
from the Distressed Property Institute LLC which has been offering the Designation
in USA and Canada for the last three years and is widely recognised as the leader
in its field.
Reddy explains that the course focuses on the options and alternatives that
professionally trained agents can offer homeowners who have found themselves
in a distressed situation. “The primary objective for the professional
agent is to find a way to assist the homeowner to keep their home. This is also
the primary goal for the financial institutions. “
Peter Gilmour, Chairman of RE/MAX of Southern Africa, who also heads up the
specialised Distressed Property Division of the company, says that currently
there are more than 120 000 families in distressed situations in South Africa
and this number is growing every month. “With these numbers being a reality,
a significant proportion of these distressed properties need to be sold to reduce
the debt of the financial institutions. “
To date, over 300 RE/MAX agents in South Africa have attended the course and
are now Certified Distressed Property Experts.
“Dealing with financial challenges is a hardship for any family, but finding
a qualified real estate professional that can assist you in selling your home
for a market-related price, before your financial troubles get to such a point
that your property could be repossessed, should not be. “The CDPE designation
will set our agents apart and customers can easily identify a CDPE agent from
our office to assist them in a distressed situation,” Reddy concludes.
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18 March 2011, 08:34:59
Located a mere 15 minutes from OR Tambo International Airport and the Gautrain,
Serengeti Golf and Wildlife Estate is an exciting 780-hectare residential development
within Kempton Park in Johannesburg.
Says Adrian Goslett, CEO of RE/MAX of Southern Africa: “This is such a
massive development, that many define this estate as a city within a city. A
development of this magnitude, within such proximity to the bright lights of
Johannesburg, is a real find. Given its location and accessibility, it is unlikely
that land of this size will ever become available again for residential property
development.”
What makes this estate truly unique is the fact that its design vision embraces
the wild African bush. Says Neville Brits, Broker/Owner of RE/MAX Dazzle: “The
estate boasts abundant wide open spaces – unlike other estates that are
characterised by developers squeezing in as many homes as possible, on Serengeti
there is truly room to breathe and explore. The estate has set aside 280 hectares
of indigenous grasses and rehabilitated wetlands, which is home to a variety
of buck and birdlife that roam free on the estate – bringing the feeling
of the wide open African bushveld to your front door.”
With crime being an ever-present concern in South Africa, Serengeti boasts
state-of-the-art security equipment and infrastructure for a total security
solution, explains Brits. “Both the internal and external elements of the
estate of policed by the Serengeti Rangers, who are controlled by the estate
management and Serengeti’s superlative on-site security control centre,
for 24-hours, 7-days-a-week peace of mind.
Offering a diverse range of world-class facilities, Serengeti’s residents
can relax in the knowledge that their every need has been met without having
to leave the estate’s perimeter. “One of the most talked about innovations
is the fact that Serengeti has an optic fibre network that reticulates to each
home inside the estate, providing connectivity, broadband Internet and email
services, directly to each home, at no additional cost as it is included in
the monthly levies,” explains Brits. The optic fibre also provides voice,
video and data to all homes at no additional cost, meaning that all phone calls
and video streaming within the estate are free.
As a golfer’s paradise, Serengeti boasts The Jack Nicklaus Signature Golf
Course and club house facility. “Officially opened by the golfing icon
himself, Jack Nicklaus, this golf course was voted the Best New Golf Course
2010 by Golf Digest. It is the only golf course in Gauteng offering 27 holes,
and together with its spectacular 6000m² club house, Serengeti offers the
ultimate golfing experience for golfers who are in search of the best,”
he says.
An ideal estate on which to raise a family, Serengeti also boasts a top-class
private school, Curro Serengeti Academy, within the borders of the estate. Also,
located in the heart of Serengeti, lies Village Square – a meeting place,
deli for daily groceries and offering a selection of restaurants and coffee
shops open any day of the week. Furthermore, Serengeti has direct access to
almost 20km of bridle paths for horse riding enthusiasts, a hotel, spa and conference
facilities, as well as a selection of offices, all within the secure Serengeti
perimeter.
Says Brits: “A total of 1 800 units are planned for Serengeti, and the
size of the stands range from 1 000m² to 2 500m² - the cost of which
varies from R550 000 to R2-million. The cost of ready-built homes starts at
around R4-million and extends right up to R10-million, depending on its location,
size, style and finishes. “
John Smook of RE/MAX Dazzle is currently selling a modern six-bedroom home,
with all bathrooms en-suite, with a private study and guest loo, four reception
rooms, a spacious enclosed entertainment area, servants quarters complete with
a full bathroom, and a total of five garages, for R5,8-million.
“For those who like the wide open feeling of the bush, who enjoy living
in the country, but who need to have access to the city and its amenities –
Serengeti Golf and Wildlife Estate offer a safe and secure solution for an upmarket
family lifestyle.”
FeedBack (2)
11 March 2011, 08:41:56
 Harcourts
is now the most trusted name in SA real estate – even though it is the
newest of the national big estate agency brands.
This has emerged from an recent poll run on the high-traffic Cyberprop website,
in which thousands of users were asked to name their most trusted real estate
company - and Harcourts gained the majority of votes.
“This result is really gratifying,” says Harcourts Africa CEO Richard
Gray, “especially since the Harcourts brand was only introduced to SA two
years ago and some of the other big names in the industry have been around for
decades.”
Harcourts Africa, the local branch of the international Harcourts group, is
currently also one of the biggest real estate groups in SA, with 129 estate
agencies and rental property management offices in cities and towns right across
the country.
And it continues to expand, despite the sluggish recovery of the property market.
“We have opened 12 new offices in the past six months,” notes Gray,
“and have at least another 10 currently in the pipeline.
“This reflects our belief that the future of real estate franchising in
this country is not just about giving our franchisees and agents a ‘brand
name’ to stick on their office doors, but about adding real value and providing
them with superior training, technology, marketing tools and business systems.”
However, he notes, the group appreciates that acceptance and trust on the part
of consumers – those who buy, sell and invest in property through Harcourts
– is the key to real success. “We know that no amount of innovation
can replace positive interaction with our clients, and the results of the Cyberprop
survey now show that our commitment to always put ‘people first’ in
our business is widely appreciated.”
* Harcourts International, rated one of the five fastest growing global real
estate brands, has more than 650 offices and 4000 agents in nine countries,
including the US, China, Australia, New Zealand and of course SA.
FeedBack (0)
11 March 2011, 08:41:12
With the appointment of Dianne Leighton as his rental property manager, Anton
du Plessis, Chief Executive of the Cape real estate marketing agency, Vineyard
Estates, is signalling to the world that upmarket homes in the traditional,
more affluent southern suburbs of Cape Town are now attracting excellent rentals
and, he says, the demand currently exceeds the supply.
“We always knew that renting in this area could be a rewarding exercise,”
says du Plessis. “The traditional Southern Suburbs have so much going for
them that many of those relocating or moving to Cape Town look first to this
area for a temporary home. However, we did not want launch into a full-scale
rental division until we had the right person on our staff.”
Leighton, says du Plessis, in her first fortnight signed up five leases, with
values of R7,500 to R15,500 per month, and she is now working to achieve a target
of five leases per month. She has since rented a home in Rondebosch at R24 000
per month.
“It may come as a surprise to those people not in touch with the market
to know that fairly ordinary two or three bedroom homes in Upper Kenilworth,
Upper Claremont, Newlands and Constantia are fetching R15,000 to R26,000 per
month. What is more, as there is a serious shortage of stock in this bracket,
these rentals can only rise,” said Leighton.
It may also surprise people to know, she adds, that houses in the best security
estates, e.g. Silvertree and Steenberg, can easily attract rentals of R40,000
to R50,000 per month.
For many people, she says, the cut-off point on rentals, whether they are relocating,
retiring or just taking a year between homeownership, is between R25 000 and
R30 000. Above that level the general consensus is that they would probably
be better off buying although initially most will be forced to rent because
it can take months to find a suitable home. However, because of the low expected
annual increase in house prices – potentially as low as 3 to 4% per annum
– it often makes sense at this stage to rent, particularly if the buyer
is looking for “that perfect home”.
Leighton has had 19 years in property. She wrote her board examinations in
1992 and has worked for three of the larger real estate companies before, having
taken a “well-earned” eight month break from property prior to joining
Vineyard Estates.
FeedBack (2)
11 March 2011, 08:40:30
Sellers and buyers dealing in residential property have to realise that delays
in transfer do occur and no estate agency or conveyancer can guarantee a transfer
date. This was said by Anton du Plessis, head of Vineyard Estates, commenting
on a recent case in which the Deeds Office held up a transfer by almost one
month.
“It is,” said du Plessis, “quite understandable that clients
should assume that if the agent and the conveyancer work efficiently and win
the cooperation of buyer and seller, transfers should not take longer than eight
weeks. Regrettably this is not always the case.”
Recently, said du Plessis, a minor mistake in the Title Deed (it was, in fact,
a duplication of a minor clause) resulted in a call for a correction. Normally,
he said, this would have taken no more than four or five days. However, in this
case the clerk responsible for the work happened to take leave for three weeks
at the time and no one was delegated to take over his responsibilities whilst
he was away.
“In the end the transfer took just under one month. The loss of interest
over that period on so large a sum was significant and the inconvenience caused
to those who had expected to be able to move in or out of certain homes on certain
dates was considerable.
“A staff member taking annual leave is in most cases an event that Deeds
Office management would be aware of in advance, and good management practice
would necessitate forward planning to fill the gap. Correcting a simple error
on a Title Deed is a simple administrative process, and it is beyond belief
that some other official could not be made available to attend to this work.”
Delays in transfer, said du Plessis, can be caused by a variety of factors,
including time lags in receiving rates clearances, transfer duty receipts, bond
registration or cancellation instructions. In addition, unexpected increases
in the number of transfers going through the Deeds Office can also slow down
the process, as can any number of complications arising from complex conditions
contained in many Deeds of Sale.
FeedBack (0)
11 March 2011, 08:39:16
The great satisfaction of being involved in finding rented accommodation for
people, says David Beattie, principal of the Cape company, Chorus Letting and
a committee member of the Western Cape Institute of Estate Agents, which manages
several hundred rented properties, is that what you achieve on the client’s
behalf can make a very real difference in their lives.
“I have,” he said, “seen people’s enjoyment of life markedly
improve simply because they have moved into an apartment or home which suits
them and/or simplifies their daily travel arrangements. This does give considerable
satisfaction.”
Those interested in making a career in property should consider being a letting
rather than a sales agent, he says.
“All property marketing is fast-paced and those in the rental field can
be put under considerable pressure – but the variety of the work and the
contact with all types of people is exceptionally stimulating. There is, too,
huge satisfaction from concluding deals regularly, not occasionally as in selling
and it is worth commenting that many agents do end up owning significant rental
portfolios.”
A big advantage of being a letting agent, said Beattie, is that the work provides
a steady income, not the fluctuating earnings of so many estate agents –
and this increases year by year.
But, he said, the job calls for long hours and does require a good clerical
ability and a willingness to attend to detail.
“The accounting and record keeping are simple but have to be done right
– and knowledge of SA property law is also essential.”
Those letting agents who put their hearts into the work, said Beattie, gain
the satisfaction of building relationships with clients. When these are landlords,
the successful letting agent can assist in building up a property portfolio
which in many cases is extended year by year and form the main bases of the
client’s wealth.
FeedBack (0)
11 March 2011, 08:37:05
 Asrin
Property Developers report that even though there has as yet been no official
launch or advertising campaign at their new Stellenbosch residential development,
Nuutgevonden, advance press and online reports have already resulted in their
selling just on 50% in phase one.
On offer are two bedroom two bathroom sectional title apartments priced from
R599 000 to R725 000 and two and three bedroom, two bathroom houses priced from
R849 900 to R1 195 000. In both cases, the price includes VAT and transfer duty.
“The development theme and design lend themselves toward a modern Cape
farmhouse style, making extensive use of the straight line gables, dark roofs
and clean façades for which Stellenbosch is known, said Shiraaz Hassan,
Asrin’s commercial director.
He adds that, as expected, the competitive price and prime location of the
development have produced an “overwhelming” uptake. The project’s
strategic position just off the R304 and next to the upmarket Welgevonden estate
residential development, said Hassan, make it highly suitable for anyone working
in Stellenbosch or studying at the university (both five minutes away by car),
while its proximity to many famous vineyards and to the encircling Simonsberg
and other mountains are added attractions.
“Worldwide,” said Hassan, “there is a shortage of affordable
accommodation in university towns. In bringing units to Stellenbosch at our
prices we have tapped into a huge reservoir of potential buyers who had come
to believe that these sorts of prices were no longer possible in so sought-after
and affluent a town as Stellenbosch.”
The agents marketing Nuutgevonden on behalf of Asrin are Property Pro (021
886 5212) and Chas Everitt (021 883 8493).
FeedBack (2)
11 March 2011, 08:36:25
Michael Bauer, General Manager of IHFM, the Cape property management company
and Managing Director of IHPC, the exclusive estate agents of Bardale Village,
has drawn attention to the price analyses in the latest FNB report.
These, he said, confirm the generally accepted opinion that not only are Western
Cape residential property prices the highest in South Africa but that, if measured
on a square metre basis, they are particularly expensive in relation to other
areas.
“This fact,” said Bauer, “becomes particularly evident in the
sectional title sector where the Cape per metre square price last year was R10
341, 36% higher than that of South Africa as a whole (where the average price
was R7 601).”
These high Cape sectional title prices, said Bauer, have come about as a result
of the prevailing lack of land in the Greater Cape Town Metropolitan Area.
“What we are now witnessing,” he said, “is a scenario in which
the value of sectional title and other property in the CBD continues to rise
steadily because people can no longer accept the lengthy commuter times of up
to two hours a day, nor are they prepared to pay the continually rising car
maintenance and petrol costs which commuting generates.”
Bauer said that there are still no signs of this trend being reversed and CBD
fringe sectional title units are, therefore, likely to continue to be an excellent
property investment.
“There will always be those who want a freestanding home (preferably with
a few square metres of grass and with some private space) and the type of property
that is especially well suited to young couples with children is currently only
affordable in developments like Bardale Village. However, it has to be accepted
that when such homes are affordable in outlying areas, the travel costs can
be expensive. For this reason many property investors are now increasingly moving
towards sectional title in the high density urban areas and properties in the
better positioned security estates in the suburbs.”
FeedBack (1)
11 March 2011, 08:35:44
The maintenance of windows in sectional title schemes (especially those that
are near the sea and prone to rust) has long been a contentious issue. Whether
they are the responsibility of the unit owner or the body corporate has always
been subject to debate.
Michael Bauer, the sectional title expert and the general manager of the sectional
title management company IHFM, said recently that previously the Sectional Title
Act specified that any items inside the median line drawn through the middle
of the unit’s outer walls was the full responsibility of the owner, while
any items outside that line was the full responsibility of the body corporate.
If it was placed on the median line the responsibility was shared. Window frames,
said Bauer, can be either on the median line, inside it or outside it - “which
of course means that the whole matter of their maintenance was bound to lead
to controversy”.
Now, said Bauer, the new Sectional Title Amendment Act, about to be promulgated
(Provision 5,5 (a)) will make all window maintenance the joint 50/50 responsibility
of the owners and the body corporate irrespective of the window’s actual
location in relation to the median line.
This new amendment, added Bauer, will be especially helpful in those cases
where the responsibility of payment was unclear. For example, window frame deterioration
on the weather side of the building far exceeded that on the protected area
but where, nevertheless, all members have had to pay for their repair or replacement.
Those on the protected side might feel hard done by.
“It has to be admitted,” added Bauer, “that after 50 years’
exposure to a salt-laden atmosphere almost any steel window will need replacement
- hence the swing in coastal districts to aluminium.”
The cost of window replacement, he added, can be ‘astronomical’.
Bauer warned trustees that wooden frames, too, need regular maintenance. He
recommends re-varnishing all outfacing wood once a year.
FeedBack (1)
11 March 2011, 08:35:25
Another high profile Cape estate agency chief executive, Anton du Plessis of
Vineyard Estates, has commented on the practice adopted by some estate agencies
of insisting that deposits be paid into their own trust accounts, instead of
to the conveyancer’s trusts. These comments follow on the accusations now
being levelled against certain high profile estate agencies regarding the misuse
of funds.
Du Plessis said that, although the law stipulates that each estate agency must
have a trust fund which has to be audited annually, in his company’s he
almost always asks for deposits to be paid to conveyancer’s trusts.
“One of the benefits of the agency holding a deposit is that in the event
of there being a commission dispute, the agent is in a stronger bargaining position.
However, an agent cannot simply disburse money to himself from a trust account
in the event of a dispute, and there are onerous regulations governing the conduct
on trust accounts if a dispute does occur.
“Many reputable estate agencies, including some with nationwide franchises,”
said du Plessis, “find it best to insist that all deposits or other money
should be lodged with the conveyancer’s trust. In this way they keep their
hands clean and minimise the risk of fraud, misappropriation or theft.”
That arrangement, added du Plessis, is not only preferred by the vast majority
of clients but also has the advantage that, in the event of a disagreement,
e.g. on the commission payable, the funds are in a ‘neutral corner’,
the managers of which should, as professional attorneys, be able to remain detached
and objective.
Many of the general public, said du Plessis, are now wary of handing over a
large deposit for fear that they will lose it in the event of a forfeiture being
legally decreed or taking place without their permission. They are, however,
protected from loss by the Fidelity Fund which pays out funds to members of
the public who lose money as a result of dealing with any attorney or agent
registered with the fund.
“We need to remind such people,” said du Plessis, “that the
Fair Penalties Act, although slow moving, will almost always result in justice
being achieved and in no innocent person being victimised or paying a disproportionate
penalty.”
FeedBack (0)
04 March 2011, 08:42:37
 When
you buy a property on Sunset Links Golf Estate on the Western Seaboard, Cape
Town, you are buying into an exclusive lifestyle, says Caron Leslie, Broker/Owner
of RE/MAX Property Associates. “Located on the edges of the fairways of
the prestigious Milnerton Golf Course, Sunset Links Golf Estate is considered
by many in the know as one of the best kept residential secrets in the greater
Cape Town area.”
A coveted address by any high-flying investor, it is understandable why homes
on this estate are in high demand. “An upmarket, security golf estate,
Sunset Links Golf Estate is situated on Milnerton Golf Course; one of South
Africa’s few links-style courses, with access through Sunset Beach. With
the ocean on its western border and a river estuary encompassing Rietvlei Bird
Sanctuary on the eastern side, the estate offers breathtaking views and scenery
from all vantage points,” says Leslie.
A unique residential concept, offering unsurpassed 24-hour security, the estate
has been designed with an ethos of making the most of its exquisite surrounds.
Jeanne Thompson of RE/MAX Property Associates, who lives on the estate and markets
properties for sale there, says that this estate affords its residents the most
spectacular views of the surrounding ocean of Table Bay, Table Mountain, Robben
Island, and even the new Green Point Stadium can be seen in the distance. “The
specified architectural-style has been conceived with the aim of harmoniously
complementing the estate’s natural surrounds,” she says.
The location of the estate is ideal for families and professionals, as it is
close to the Mother City CBD, V & A Waterfront, Cape Town International
Airport, schools, private hospitals and shopping malls. The new Rapid Transport
System will add value and public transport convenience to the community. Sunset
Links Golf Estate boasts a plethora of various amenities and facilities to cater
for every need:
“The beach-side Milnerton Golf Course has been redesigned and upgraded
to championship status. Water sport lovers can make use of the long stretch
of beach for surfing, kite-surfing, windsurfing, jet skiing and fishing. The
lagoon of the Rietvlei Nature Reserve forms part of an estuary that is extremely
rich in birdlife – idyllic for any bird watching enthusiast,” says
Leslie.
“A dedicated tarred track, which runs from the Cape Town city centre to
Blaauwberg Road in Table View, and which can be used down to the beach and continues
to Big Bay, is perfect for joggers, runners and cyclists. And for a bit of R&R,
residents can access the beach and lagoon via dedicated private footpaths, to
enjoy long walks along the adjoining beach, or simply to sip a glass of wine
and enjoy the beautiful daily sunsets afforded all year round.”
Sunset Links Golf Estate consists of full title properties which are grouped
according to position and divided up into Ocean Villas, Lagoon Villas, Ocean
Terraces and Courtyard Homes. “A total of 250 homes are on the estate,
and the erven range from 350m² to 1 550m². An entry-level home will
start at around R3-million, with large luxury homes on the estate fetching as
much as R10-million,” she explains.
Offering access to an idyllic urban-country lifestyle, the estate boasts a
blend of foreign investors, retired persons, professional couples and families.
Says Leslie: “We have a lot of foreign homeowners who ‘follow the
sun’, spending up to four months of the year on the estate and then leaving
to spend the summer months overseas, safe in the knowledge that their beloved
homes are secure in their absence.
“In fact, Milnerton is one of the Western Cape’s fastest growing
towns, boasting an infrastructure to support this growth. Sunset Links Golf
Estate is within easy reach of a plethora of good schools, private clinics,
Cape Town International Airport, Canal Walk Mall, and a wide variety of nearby
restaurants, coffee shops and boutique stores. Cape Town city centre and the
V&A Waterfront are a mere 15 minutes away – affording residents on
this estate the best of both a quiet seaside lifestyle, with all the benefits
of living close to a bustling city.”
Golf estates have been a popular property option since the concept first launched
years ago, says Adrian Goslett, CEO of RE/MAX of Southern Africa. “Properties
situated within golf estates around the country have retained their value due
to the security benefits and lifestyle they offer.”
A successful development on all levels, Sunset Links Golf Estate has a proven
track record of offering owners an excellent return on their investment, superb
value given its position, access to a sought after and secure lifestyle, and
it offers tremendous growth potential. “Sunset Links Golf Estate is the
perfect balance between an excellent investment and the ultimate lifestyle.
With all of the homes within the estate complete and no further land available
for development, now is the time to invest,” Leslie concludes.
For more information, contact Jeanne Thompson from RE/MAX Property Associates
on 082 924 5899 or 021 521 3100.
FeedBack (0)
25 February 2011, 15:43:09
Towards the end of 2010, Bill Rawson, Chairman of Rawson Properties, said in
an off-the-cuff comment that he could think of no better place for a South African
with limited knowledge of world markets to invest in property right now than
in South Africa itself.
“All the Western and most of the Middle Eastern property markets have
been hard hit by the downturn. It is only in Asia, India and the Far East that
property right now remains a favoured investment channel - but it goes without
saying that there are large unknowns and incalculable risks in going this far
afield.”
Rawson has now just returned from a four week trip to the USA - and this has
confirmed his negative feelings about investing in their property at the moment.
“I was asked by certain South Africans to check whether the rather gloomy
figures coming back to us were warranted or not. Now that I have been to the
USA I am fairly sure that it will pay to wait a year or two before moving into
their residential property sector. The new R4 million per person per annum foreign
investment allowance does open exciting prospects for diversification - but
any step in this direction should be taken with great care as an overseas investment
always carries a higher risk than a local one.”
In the course of his visit, Rawson went to two states - but in both, he said,
he found the same scenario: homeowners and home investors had given their title
deeds back to the bank and walked away, accepting their losses.
“This, of course, would not be possible in South Africa, but, possibly
because the government is behind some of the biggest housing financiers, this
behaviour is seen as acceptable in the USA.”
This type of action, said Rawson, had resulted in the drop of US residential
property values, often being as high as 50%. Second homes and investments in
the leisure market had been among the hardest hit, although in Hawaii the drop-off
in values had been only 20%.
“In the case of the leisure market,” he said, “I was surprised
to find that most of the fractional ownership, time share and outright buy-to-rent
holiday accommodation buyers had from the outset expected no real return. People,
it seems, had been prepared to buy simply to secure ‘free’ accommodation
once a year, with the management company sometimes taking 60% to 70% of the
rents just for looking after the property and the rest going in rates, taxes,
levies and maintenance.”
Although there had been a big decline in tourism, said Rawson, the major shopping
malls in the holiday areas, especially those in Hawaii, are still thriving,
catering very often for Far Eastern, particularly Japanese, and Australian tourists.
These centres, he said, are ultra-sophisticated and way ahead of what we can
offer in South Africa, “excellent though many of our big retail complexes
now are”.
Asked if, as in South Africa, residential rentals had not improved as a result
of the drop in homeownership, Rawson said that it appeared that they had, but
this had not yet boosted the buy-to-rent demand partly because, again as in
South Africa, the costs of rates and services were also rising.
“As is happening here,” he said, “they are hitting the survivors
in the affluent areas to help keep their systems afloat. I was surprised to
learn that a significant number of municipalities are now technically bankrupt
and have had to cut back on services accepted previously as every householder’s
right.”
Obviously, added Rawson, the big question being asked is, “How long will
this state-of-affairs last?”
“I have no clear answer to that question” he said. “All that
one can say is that a full-scale recovery will not be seen this year and possibly
not in 2012 either. It is just possible, that although the US economy is still
five times as big as that of China, its government will never again be able
to call the economic shots - and its housing market could remain in the doldrums
for another three years. It will certainly take the banks and the large number
of distressed home sellers that long to sell off the exceptionally large stock
which is now waiting, and often waiting in vain, for owners.”
FeedBack (3)
18 February 2011, 12:30:53
Although verbal agreements can be – and often are – binding in SA
law, where property is concerned every agreement and condition has to be in
writing (or in 21st Century terminology, in print with signatures).
Anton du Plessis, CEO of Vineyard Estates, said that he has in his 24 years
in property seen several agreements fall apart for the simple reason that those
who made them had not confirmed certain details and key aspects of the agreement
in writing.
“In most cases,” said du Plessis, “the consequences have not
been too serious but in a recent High Court case they were nothing short of
disastrous.”
In this case, said du Plessis, an elderly couple whose daughter had married
a suitor sold their home to that suitor on condition that they would be allowed
to live in it for the rest of their lives. This agreement was verbal and not
put in writing.
Then, however, the daughter’s marriage failed, relations became strained
and the son-in-law refused to honour the agreement and demanded rent or departure.
The judge, while expressing sympathy with the parents-in-law, indicated that
he had no power other than to abide by the sale agreement which made no mention
of the old couple’s right to live in the home. The judge said, too, that
such ancillary agreements had to be registered against the property’s title
deeds to be enforceable. Had that been done the agreement would have stood up
“against all the world, including any later owners of the property”.
FeedBack (0)
18 February 2011, 12:30:28
The legal term usufruct is used to define a state in which an individual has the
right to occupy a property even though he or she does not own it. To be legally
binding a usufruct must be registered against the title deeds.
Usufruct, says Rob Lawrence, national manager of the bond origination service,
Rawson Finance, is most commonly used when a married person (in most cases the
husband) leaves a home to his children on condition that his spouse is allowed
to live there for the remainder of her life.
This can be a wise provision, says Lawrence, because it eliminates the need
to transfer the property twice – first to the spouse, and then, when she
dies, to the children – and it secures the latter’s inheritance because
the widow cannot sell the property.
But, Lawrence points out, a usufruct arrangement can lead to problems if the
user has insufficient funds – or is unwilling – to maintain the property
properly.
“Regrettably,” said Lawrence, “there have been cases in which
the surviving spouse, who may often be a second wife, has very little income
of her own and cannot afford the maintenance costs of the property, the rates,
levies and other costs. Sometimes also she finds herself in an unsatisfactory
relationship with the children/heirs. This does happen quite often – especially
if the heirs are her stepchildren.
“In that situation, there may be little or no motivation to maintain the
home – and the children may avoid stepping in to help in this matter, even
though it would pay them to maintain their property. This all-too-common backing
off can in a space of five to ten years result in the entire house losing much
of its value.”
The children/heirs may decide to sell the house – but as the usufruct
is registered against the title deeds, they cannot do so unless the buyer is
prepared to honour the usufruct, which happens only very rarely.
Lawrence says that anyone going the usufruct route, should leave enough money,
possibly in a separate account, to ensure that the property is maintained. The
donor might also consider authorising an independent person to initiate and
supervise maintenance.
The heirs can, however, consider buying the occupant out – i.e. paying
her an agreed sum to relinquish her usufruct.
In a few cases, added Lawrence, the usufruct beneficiary will voluntarily give
up the right to occupy – but this is seldom as satisfactory as being paid
to relinquish it.
“It must always be remembered that a usufruct is registered at the Deeds
Office against the title deed, so no transactions can take place on that property
without due consideration given to this usufruct.”
FeedBack (0)
15 February 2011, 08:18:38
When buyers are struggling to raise finance for a bond to purchase a home,
one of the most powerful “tools” at their disposal is a suretyship
or guarantee. If a borrower can get a well resourced individual or company to
stand surety for the loan he is likely to be given it.
The danger here, says Anton Du Plessis , CEO of Vineyard Estates, is that the
person standing surety may see himself as simply complying with banks’
red tape and may not see his signature as having much consequence.
If and when things later go wrong with the borrower’s financial position
and the bank calls up the loan, the suretyship guarantor and may well feel “cheated”
and try to duck out of his obligations.
Du Plessis has drawn attention to a recent High Court case in which ABSA sued
a private individual who had stood surety on two fish retail outlets in Edenvale,
Johannesburg.
The defendant, Groenewald, claimed that he was not liable for the money owed
(a) because the letter of demand had initially had been sent to the wrong address
and (b) because he was expected to sign as surety for the increase on an outstanding
bond to a development trust which had an undefined relationship with the fish
business – but he had never agreed to the fish business going into overdraft.
He had, he said, made it clear to ABSA that he could not afford any further
debt.
The court, however, ruled that they had to abide by the wording and conditions
of the originally signed suretyship, agreements in property always in the end
having to rely purely on written and signed documents. No possible verbal statements
could, ruled the court, be accepted as altering a signed agreement.
FeedBack (0)
15 February 2011, 08:17:44
There has always been a tendency among South Africans, especially those who
have achieved success in the business world to believe that they are capable
of handling property transactions on their own. They are inclined to think that
a perusal of the business media and talks to friends have somehow qualified
them as experts in property matters. All too often, says Anton du Plessis, this
is not the case and this attitude leads to serious mistakes.
“When I advise clients that they must be guided by an estate agent, there
will always be a few who believe that I am saying this to protect my position.
This scepticism is, however, not justified. Many incidents have in my career
shown that the average SA citizen needs guidance in his property deals.”
Clients coming to property from other fields, said du Plessis, almost invariably
lack the knowledge of property law and property finance (and the nuances and
conditions surrounding these matters) of which an experienced agent will be
aware.
What should the client do, however, if he has doubts about the agent’s
competence?
“In the case of a seller, it is prudent to send all written documentation
(including all offers made for the house) to an attorney, preferably the one
chosen to act as the conveyancer on the deal. The conveyancer will usually welcome
this, as it is far easier to adjust an offer before the seller signs than to
spend valuable time sorting out a dispute arising out of a faulty contract.”
In most cases, said du Plessis, buyers have recently sold or are selling their
homes, and should already have a relationship with their conveyancer who can
then be asked to check the new deal.
“Only rarely is an offer so urgent that it cannot be vetted by a conveyancer.
Most conveyancers will make themselves or a partner available at short notice
if required to do so.”
Should an offer go through without being checked by an attorney, the bidder
will have to accept that it may be very difficult to alter the offer’s
conditions after it has been submitted – and even more difficult after
it has been accepted.
“Similarly, the seller, once he has accepted an offer, is at the mercy
of the buyer, who may or may not allow changes.”
What are the factors in property documentation that can lead to problems?
Du Plessis said that a lack of accuracy or definition, vagueness and ambiguity
are the main reason for contracts becoming “voidable”.
“I have recently seen a deed of sale where transfer was listed as 1 March
2011, and the buyer had until 29 February 2011 to sell his house. Clearly, no
attorney in his right mind would initiate the transfer process until the suspensive
condition of the buyer’s sale has been concluded. While this would not
necessarily cause the sale to be cancelled, it clearly created a false expectation
in the seller’s mind. In 2010 there was a R10 million sale on which the
buyer reneged, but got away with it because the agent had not written the seller’s
first names and surname on the deed of sale. (The parties to the agreement must
be clearly identified.) Even the best agents may occasionally make a typographical
error – although this is generally not grounds to cancel a sale if it is
obvious that it was an error. For example, if an erf number is written incorrectly,
as long as there is no confusion as to which property the buyer is making an
offer on, it should not pose a problem. It would however be problematic where
one is buying a vacant erf in a large development.
“I have also seen clauses which lack completeness: for example, the seller
might agree to have the roof inspected by an expert but does not say who will
be responsible for repairs if the expert finds faults.” (Du Plessis has
his own “formula” for this situation and usually alters agreements
in line with it.)
Errors or omissions, said du Plessis, lead to frustration, anxiety, delays
– and quite often to the cancellation of the deal and in most cases they
would have been completely avoidable if the error or omission had been picked
up before the agreement was accepted..
But, he warns, sellers or buyers should not allow a pedantic attorney to insist
on minor alterations in what is otherwise an excellent offer to purchase.
“When presented with a clean cash, binding offer, it is unwise to alter
an agreement over a relatively small item – e.g. a second hand fridge.
If one does, your alteration becomes a counteroffer to the buyer and if he does
not accept the change, the deal can be terminated. There are many occasions
where a buyer makes a clean offer, but when the excitement of making the offer
dies down, he gets ‘ buyer’s remorse’. This often happens quite
often but the sale goes through because the buyer is contractually bound. However,
if he is given an opportunity to rethink, it is possible that he will change
his mind.
“The involvement of a good agent should be a safeguard against pitfalls
of this kind – so check your agent’s reputation with the Institute
of Estate Agents and if he or she is not a member, or is a member with disciplinary
hearings pending, treat that as grounds for caution.”
FeedBack (0)
10 February 2011, 16:38:19
Mauritian real estate remains a great investments choice, says Adrian Goslett,
CEO of RE/MAX of Southern Africa: “Part of the SADC region, Mauritius boasts
a strong and diversified economy that offers a number of fiscal benefits, including
a flat corporate and personal tax rate of 15%, the absence of inheritance and
capital gains tax, no foreign exchange controls, trade barriers or quotas, and
no restrictions on capital repatriation.”
He explains that over and above these benefits, Mauritius is a politically
and economically stable country, with a strong financial and off-shore sector,
modern and reliable IT and telecommunications infrastructure, and a comprehensive
legal framework, which makes it ideal for long-term investment.
Recently, RE/MAX Properties in Mauritius was given the mandate to sell commercial
and retail space in Kinoo Square, a well positioned and imaginative commercial
development in the best located and busiest part of the island’s capital
city of Port Louis.
Daniel Poupinel and Dominique Le Clezio, joint Broker/Owners of RE/MAX Properties
in Mauritius say they are pleased to have been awarded the mandate to sell Kinoo
Square, which is located opposite La Gare du Nord – on the corner of Farquare
and Joseph Riviere Streets in Port Louis. “Situated opposite the La Gare
du Nord Bus Station, the locale links the northern areas to the capital city.
The site lies within the protected area of the Aapavasi Ghat World Heritage
Trust Fund and is placed relatively close to China Town, the Central Market
and the Caudan Waterfront.
“Kinoo Square is completely transforming the area by offering investors
modern and secure shopping units with cutting edge amenities to meet market
demand, in an exceptionally convenient and well positioned area,” they
say. Kinoo Square comprises 82 commercial and retail sectional title units in
total. The size of the average unit starts at 11m² and goes up to 71m²,
and they can be sold as either separate or multiple modules.
The price of the units starts at MUR 3-million, but varies depending on the
size of the unit in question, as well as its locale. “The developer is
a well respected and seasoned Mauritian businessman who has successfully completed
and sold the first phases of this development: All 21 units in phase one have
already been sold and phase two seems to be quickly following suit. Out of the
82 units in phase two, 25% have already been sold as from December 2010. The
units have proven to be exceptionally popular due to their excellent location
and modern aesthetics – in fact, the developer, who is also involved in
the textile trade, has kept one of the units as a retail outlet and his head
office for the textile arm of his business,” says Poupinel and Le Clezio.
Since these units offer an exceptionally attractive return on investment, Poupinel
and Le Clezio say that investors are snapping them up quickly. “Generally,
investors so far have mainly been individuals who are involved in retail and
trade, such as book dealers, textile businesses, fashion and shoe retailers,
jewellery and accessory outlets, sport equipment retailers, and so on. The development
also boasts a healthy cross-section of lifestyle type businesses to ensure good
foot traffic and passersby, including beauty salons and spas, pharmacies, art
galleries, jewellers, restaurants and libraries. Of the 82 units that are up
for sale, a well proportioned food court with an adjoining seating area has
been included into the design.”
Set for completion and ready for occupation in August 2012, the project is
headed by a team of professionals operating in the built environment. The development
boasts GFA status (Guarantie de future achevement), which offers investors peace
of mind that Kinoo Square will be completed to specifications on time.
Say Poupinel and Le Clezio: “All the permits have been approved and the
work is currently underway according to the stipulated schedules to ensure that
the project meets its deadlines.”
FeedBack (2)
10 February 2011, 16:37:20
The International Certified Distressed Property Expert Professional Designation
(CDPE) course was launched exclusively to RE/MAX Broker/ Owners and Sales Associates
in January this year. The license to Designate agents in South Africa was obtained
from the Distressed Property Institute LLC which has been offering the Designation
in USA and Canada for the last three years and is widely recognised as the leader
in its field.
The course focuses on the options and alternatives that professionally trained
agents can offer homeowners who have found themselves in a distressed situation.
The primary objective for the professional agent is to find a way to assist
the homeowner to keep their home. This is also the primary goal for the financial
institutions.
To date, over 300 RE/MAX agents in South Africa have attended the course and
are now Certified Distressed Property Experts.
Peter Gilmour, Chairman of RE/MAX of Southern Africa, who also heads up the
specialised Distressed Property Division of the company, says that currently
there are more than 120 000 families in distressed situations in South Africa
and this number is growing every month. "With these numbers being a reality,
a significant proportion of these distressed properties need to be sold to reduce
the debt of the financial institutions. "
The introduction of the CDPE course exclusively to RE/MAX agents comes in light
of the mass of distressed residential properties that hit the market last year.
Gilmour says that distressed sellers are everywhere and no market is excluded.
"It is anticipated that more than 30% of all property sales over the next
three years could be distressed properties. It is therefore imperative that
RE/MAX agents are prepared and well equipped to service this market. The CDPE
designation will set our agents apart from the industry and customers can easily
identify a CDPE agent to assist them in a distressed situation."
At the end of September last year, credit bureaus had records for 18.35 million
credit-active consumers, of which 53,7% were classified as in good standing,
according to the National Credit Regulator's report. The report notes that this
was an improvement from the previous quarter and in fact, is the first improvement
in consumers' credit reports since December 2007. However, there are still 8,49
million consumers with impaired credit records.
In light of these figures and in line with predictions that more distressed
properties will hit the market during the course of the next three years, Gilmour
says the time has come for real estate agents to lead the housing market into
recovery by providing solutions for homeowners in need. "There are unfortunately
too many homeowners who are unable to service their home loan debt that don't
make use of the assistance or advice that real estate professionals can offer.
Real estate professionals with the Certified Distressed Property Expert (CDPE)
Designation have been trained extensively to understand the options, solutions,
and effective methods for dealing with homeowners facing hardships," he
says.
Gilmour explains that a Certified Distressed Property Expert is a real estate
professional with specific understanding of the complex issues confronting the
real estate industry, and the options available to homeowners in order to avoid
their property being repossessed by the financial institution that holds the
bond.
"While dealing with financial challenges is a hardship for any family,
finding a qualified real estate professional that can assist you in selling
your home for a market-related price before your financial troubles get to such
a point that your property could be repossessed should not be," says Gilmour.
"Therefore, the introduction of the CDPE Course has created much excitement
in the marketplace and those receiving CDPE designations in South Africa will
join over 30 000 agents in North America who have benefited from the information
and knowledge gleaned from the course," he concludes.
FeedBack (3)
10 February 2011, 16:28:24
 Asrin
Property Developers Director, Shiraaz Hassan, promised towards the end of 2010
that the new year would see the company launching new projects "ahead of
the pack". At the time, he said, Asrin had been steadily working on preparing
these for the market and would soon be ready to release them.
Sure enough, this week Hassan revealed a campaign to launch 83 affordable yet
upmarket apartments at Big Bay - where the company was co-developer (and principal
contractors) on the R600m Eden-On-The-Bay mixed use project. The affordable
prices of the new offering, says Hassan, will make the project unique. The new
development has been given the name "Azure" in recognition of the
clear blue colour of the sky that in this area is seen 320 days a year.
The apartments now on offer will be sited just behind Eden-On-The-Bay and will
therefore be one of 13 or 14 elite projects benefiting from being below Beach
Road and within an easy walk of the beach and the shops of the Eden-On-The-Bay
retail sector. The ground behind this sector slopes upwards, enabling most purchasers
at Azure to enjoy sea views of Table Bay and Table Mountain.
Azure will comprise of one, two and three bedroom apartments, varying in size
from 40m² to over 100m². These will be in a superstructure three stories
high - with a large, secure parking basement of the kind that already serves
Eden-On-The-Bay. The finishes, says Hassan, will be in most ways similar to
those of Eden-On-The-Bay but the prices will be exceptionally competitive.
"If buyers do not respond fast to this opportunity, it will simply be
because they have not understood the value offered. Never before has a project
so close to the beach at Big Bay been priced so reasonably."
The units are selling from R850 000 including VAT and transfer costs. Even
the most expensive penthouse suites will, therefore, be priced close to R2 million.
Hassan said that Azure, on which construction will start by mid 2011, will
come on stream some two years later, (occupation is scheduled for late 2012).
Ground floor units will have gardens and wooden decks, and the centre courtyards
within the development will create attractive internal out-of-the-wind landscaped
spaces including a swimming pool and communal social centre courtyard. Top floor
units will have domed roofs.
Access to the complex will be strictly controlled and it will be protected
by state of the art security, common boundary walls and electronic gates.
Hassan predicted that current market prices in the village lead him to think
that by the time buyers take transfer at the end of 2012, values at Azure will
have already escalated by at least up to 20%.
"The Big Bay precinct has become so popular and so 'in' socially that
it is already has great panache. As we see it, this can only increase now because
land for development in the Eden-On-The-Bay precinct is now all but taken up."
For sales information contact Emarie Campbell on 021 557 1115 or 083 601 0822.
FeedBack (0)
10 February 2011, 16:27:46
 A
dire shortage of land within the municipal boundary and strict rules regarding
the demolition of existing older homes have ensured that new property developments
at Stellenbosch have always lagged well behind the strong demand for accommodation
here. As a result many of those studying or working in the town have had to
live elsewhere.
Now, however, Asrin Property Developers are about to launch a residential estate,
Nuutgevonden, that is both more ambitious and more affordable than most seen
in Stellenbosch in the last decade or longer.
Asrin have acquired a 6,2ha site on the corners the R304 and Welgevonden Link
Road. The land lies next to the popular and prestigious Welgevonden Residential
Estate. Here Asrin will, this February, launch a development with 194 opportunities
in six separate sections.
These are:
· 141 sectional title apartments in three-storey blocks, with a mono-pitched
roof and a secure parking basement;
· 54 single residential homes in attractive, modern, Cape farmhouse
styles, which complement the design aesthetics that prevail in Stellenbosch.
The two bedroom apartments will have 1½ bathrooms and will measure 60m².
The envisaged launch price will be from R599 000, including VAT and transfer
costs while the three bedroom single residential components will be selling
from R849 900, also including VAT and transfer costs.
Hassan said that Asrin expect the communal facilities to be one of the big
selling points of the project. They are providing two play parks for children
measuring approximately 1 000m², walking trails within the 6,2 hectare
site, a large communal swimming pool, clubhouse and an alfresco braai area.
All open ground will be generously landscaped while initial gardens will be
developed for the freestanding homes.
At the prices offered, said Hassan, purchasers, whether downscaling or upgrading,
will find the development well suited to their needs, as will investors wanting
to purchase for student accommodation.
“One of the important aspects of this project is that it is approx. 2km
from the University of Stellenbosch,” he said.
The site’s panoramic view of Mt. Simon, added Hassan, is one of its most
attractive selling points.
The development is also very convenient traffic-wise, it offers quick easy
access to the R304 provincial road.
First handovers are scheduled to take place by November 2011 and, if the demand
is as good as expected, Hassan expects that a total sellout will be achieved
by early 2012.
For further information contact Ling Majiet or Rehana Moosa on 021 713 3012
FeedBack (3)
04 February 2011, 08:16:15
The recent revelation that the CEO of a national estate agency may have been
able to use substantial trust deposits for purposes other than those intended
by the depositors, has sparked a debate in the real estate sector as to whether
any estate agency should be allowed to operate a trust account on behalf of
clients.
Discussing this, Sean McCauley, Rawson Properties’ director (based in
Johannesburg) said that he cannot see why estate agencies should be allowed
to be in control of client trust deposits.
“In our group,” he said, “the sale agreement specifically states
that we do not hold deposit monies on behalf of clients – we advise putting
deposits in the conveyancing attorney’s trust account – but it has
to be admitted that attorneys’ trust accounts have on occasion also been
abused. It is time, therefore, that the whole system was reviewed.”
Certain options, said McCauley, are open to those who do need a trust account.
In the case of estate agents, he said, the best safeguard would be to stipulate
that when the money is deposited, the client has to be given immediate proof
of this – and that no money should ever be released from a trust account
without both the client’s and attorney’s signatures.
Another option is that of getting a bank guarantee for the full payment due
to the seller on transfer of the property. This could eliminate the need for
deposits.
“The estate agency sector has tightened up its controls very noticeably
in the last few years. If the trust fund system was phased out it would, in
my view, be another step forward,” said McCauley. “At a time when
vastly improved qualifying criteria are set to transform the image of estate
agencies, we must not have our image destroyed by financial misconduct.”
FeedBack (2)
04 February 2011, 08:15:15
Paul Henry, managing director of Rawson Developers, has criticised the National
Home Builders’ Registration Council (NHBRC) for failing to protect the
very people it was originally set up to help most, those buying into low-cost
units.
“The NHBRC, which came into existence some 15 years ago, is responsible
for “policing” home builders to ensure that poor quality construction
is eliminated. In return for a 1,3% fee levied on the total cost of the house
and its land, they inspect the home at specified stages during the construction
and, if satisfied on completion, provide structural insurance and a five-year
warranty on the house. To qualify for this, the builder has to be a member of
the NHBRC and to pay his levies on time.
“If the builder does not register with the NHBRC, no buyer of the home
will be able to get a bond until it has stood for five years. Even owner builders
should, therefore, enrol with the NHBRC.”
These rulings, said Henry, give great power to the NHBRC. Should an inspector
detect poor workmanship, he will issue a “non-compliance” certificate
which obliges the builder to remedy the problem within 48 hours, failing which
he will be issued with a “cease work” order.
“This system is basically sound and has raised standards among SA builders,”
says Henry, “but the NHBRC failed to insist that they must be involved
on all low-cost housing and – with the result that 3 000 homes are now
having to be demolished or repaired.
“Sipho Mashinini, Chief Executive of the NHBRC, said that he holds the
State responsible for the non registration and that changes in the NHBRC’s
mandate will be made to improve the situation – but no radical changes
are in fact required: it is already agreed that all low cost housing builders
should be NHBRC members.
“The truth is that the Council turned a blind eye to the activities in
the low cost sector and let them continue without interference. Now, inevitably,
SA is paying a high price for the shoddy workmanship allowed in so many contracts.”
What makes the situation particularly frustrating, said Henry, is that the
NHBRC has focused on monitoring established recognised builders and developers
who by and large employ qualified architects and engineers who already have
professional insurers able to pay up in the event of any serious failures –
and who, therefore do not need the NHBRC Insurance.
“The impression given is that the NHBRC is concerned only with those high
value contracts where their fee will be large and the inspection task a matter
of routine. The sector most in need of protection and most likely to engage
unqualified builders has been overlooked.”
Also frustrating, said Henry, is the fact that although the NHBRC is now “sitting
on” a fund “the size of which is not disclosed but which it is said
now runs into billions”, the actual number of structural failure payouts
has been minimal.
“When a claim is made by the owner of a home or his bond issuer, the NHBRC
is mandated to put pressure on the builder to rectify the matter. In practice
this has often had little effect because certain builders will close down their
operations and restart under another name. Some will do only minor repairs and
string the NHBRC along. Others will simply disappear. I would guess that less
than 10% of claims have been paid.”
In previous statements Henry has already said that the standard of workmanship
by many start-up companies handling provincial and municipal housing leaves
much to be desired.
“It is these companies which the NHBRC should have been disciplining.
In failing to insist on this they have betrayed the poor and let us all down.”
FeedBack (1)
04 February 2011, 08:14:57
South Africans are not known as a nation of savers, in fact more often than
not the opposite is true. Statistics show that the majority of adults in this
country do not think or plan ahead financially.
Adrian Goslett, the CEO of RE/MAX of Southern Africa says that saving can and
should become a way of life. “Large numbers of South Africans received
a wake-up call when the National Credit Act was introduced in 2007. Before government
clamped down on irresponsible lending practices, it was easy to secure credit
for just about any purchase, big or small, with little or no deposit. These
days’ banks take a far-closer look at an applicant’s finances, obtain
an overall picture of the credit history, the total amount of credit that is
outstanding as well as the lenders ability to pay debt back. Banks have also
increased the amount of the deposit required to secure larger amounts of money,
including bonds or vehicle finance, although this is once again dropping.”
He says that in many ways the recession exposed our weaknesses and highlighted
the importance of having a household ‘slush fund’. Those who had spare
cash in the bank were, in many instances, able to keep the wolf from the door,
while those that were swamped by debt didn’t.
With this is mind, Goslett says that it is now more important than ever for
those planning to invest in property to get finances under control and implement
a budget, before they buy property. There are a number of ways consumers can
cut back on living expenses and areas that should be looked at include:
§ Writing out and sticking to a budget
§ Eating out less
§ Shopping around for the best prices
§ Paying cash wherever possible
§ Reviewing insurance policies and medical aids to ensure you are getting
the best deal available
§ Saving on electricity and water costs
§ Curtailing unnecessary purchases and debt
§ Draw up a savings plan, decide how much you want to save on a monthly
basis and stick to it
Managing debt has become one of the most important aspects of life in South
Africa. It has been estimated that seven million South Africans are struggling
to pay off their debts and it was recently stated that over 52% of South Africans
have a bad credit rating. “These figures are alarming, given that the banks
have taken a far stricter approach to credit and will not extend finance to
anyone whose financial history is not squeaky clean,” says Goslett.
The ratio of household debt to disposable income has proved to be the biggest
stumbling block facing those who are trying to raise finance. Simply put, many
South Africans are still struggling to get to grips with their outstanding debt.
“On the other hand,” he says, “individuals who have money set
aside for a deposit are finding it easier to buy the house of their choice and
are taking advantage of the good deals currently available. It is distressing
to note that while the current market conditions are ideal for investing, many
are unable to invest, simply because they have failed to get their financial
house in order over the last few years.”
While this advice may not be the be-all and end-all of money management as
what works for some, doesn’t for others, but it certainly is a good starting
point for a year that is successful financially.
FeedBack (0)
31 January 2011, 11:05:25
Examined critically, right now buying to rent in Cape Town’s southern suburbs
does not appear to be a great investment opportunity – but some experienced,
shrewd buyers have been buying steadily for exactly that purpose.
Seeking to explain this, Anton du Plessis, CEO of Vineyard Estates, which is
headquartered in Upper Claremont, said that during the boom years of 2003 to
2007 he had sold numerous expensive Upper Claremont, Upper Kenilworth, Bishopscourt,
Upper Rondebosch and Newlands homes to buyers who at that time were getting
up to 34% annual appreciation on their investment.
“Even then the rentals were never that high (often they gave returns of
less than 6%) but with annual appreciation at such incredible levels that hardly
mattered,” said du Plessis.
Now, however, he says, property owners are likely to achieve only 4 to 5% annual
appreciation on anything they buy in the next 12 months – and achieve negligible
capital growth. So why are they buying?
“On the face of it, it is not wise to buy at today’s market prices.
However, if you are able to get a property at 10, 15 or 20% discount, obviously
the whole outlook changes – and such properties have been available as
a result of the largest bank property repossession programme ever seen in South
Africa’s history. Buying at a discount, shrewd buyers are “building
in”capital appreciation for when the market consolidates.”
These buyers, said du Plessis, expect to see the plethora of repossessed homes
dry up by the end of 2012, after which they will either continue to get rentals
at up to 10% return on their initial investment) or they will sell at a true
market related price, plus two years escalation, achieving perhaps a 20 to 25%
total return on their capital outlay over two years.
Just how difficult it can be for a buy-to-rent investor buying at normal prices
in today’s market was shown by du Plessis, taking a R3 million home in
Upper Claremont as an example.
“Buying this R3 million home,” he said, “would involve paying
upfront R220 000 in transfer duties and bond costs, the size of the latter obviously
depending on how big a bond is taken. (For the sake of this exercise a 100%
bond is assumed.) Thereafter each month the buyer would have to find at least
another R1 000 to cover the rates owing to the municipality and a further R1
000 minimum for maintenance and repairs. This last figure might sound high but
bear in mind that a repaint every three years can cost at least R15 000 and
there would almost certainly be other unforeseen expenses which would have to
be met.
“If the home was in a security village, the levy might add a further R800
to the monthly outlay. On top of these figures, the buyer would still have to
find R500 (or more) per month for insurance. In addition, most investors would
require an agent to find and/or manage the tenant – this would absorb another
R1 300 (at least) of the rental income.
These outlays, although varying from house to house and from owner to owner,
might, said du Plessis, total R5 000 per month.
What would the owner be getting back in rental?
“Bear in mind that the more expensive the home, the lower the return in
relation to the investment. Certain homes in the R20 million bracket are only
achieving gross rentals of R50 000 per month, but on our R3 million example,
one can assume a gross rental of around R15 000 per month which equates to less
than 6% on the outlay (including transfer costs). This of course assumes that
the buyer achieves an unbroken tenancy, with no gaps between leases whilst he
tries to find another tenant.
“Summing up, therefore, at present buy to rent investors have to find
bargains if they are to remain in this market.”
That, said du Plessis, may seem like bad news – but currently, there are
really good deals to be had, especially at ±R8 million. Even better deals
are available in the R10 to R20 million bracket and “spectacular”
deals are now achievable on homes above R20 million.
“Shrewd buy-to-rent investors will, therefore, continue to be active in
Cape Town and, you can take my word for it, they are achieving killings for
which they – or their heirs – five, ten or fifteen years down the
line will be extremely grateful.”
The Cape Town market, said du Plessis, has always performed above average for
South Africa and fluctuated far less than properties further to the north.
“The very simple, easily understood reason for this,” he said, “is
that space in the more desirable areas of the Cape Peninsula has been for years
been in short supply and will become increasingly limited. You simply cannot
bulldoze away a 50km mountain or cover it in houses, because most of it is a
national park. This fact ensures that Cape Town will not only retain its values
but also its enduring charm and attraction which impresses so many people from
all round the world.”
FeedBack (0)
28 January 2011, 09:16:17
Despite predictions for a very slow and steady growth of between 3% and 5%
for the South African property market overall during 2010, RE/MAX of Southern
Africa reported a 37% growth on registered sales compared to its 2009 figures.
Adrian Goslett, CEO of RE/MAX of Southern Africa, says that while market experts
were cautiously optimistic that property sales volumes and values would pick
up during 2010, it is encouraging to see that our sales results have exceeded
the anticipated national growth figures. He says December was the best month
of the year in terms of registrations.
Looking at each of the RE/MAX regions of operation, it is impressive to see
that every single one has shown an increase on registered sales. The highest
growth reported was in the central region of Gauteng which saw a 68% increase
on 2009’s registered sales. Next was the northern region which includes
Mpumalanga and Limpopo Provinces which achieved a 45% increase on 2009’s
registered sales. KwaZulu-Natal also performed well reflecting a 31% increase
on its 2009 figures, while the Eastern Cape saw a 17% increase. The Western
Cape achieved 14% increase while regions outside of South Africa, such as Mauritius,
Namibia and Mozambique, achieved a collective 11% increase.
Looking at the leisure property market, Goslett notes that while there has
been increased activity along the coastal areas, he says that sales in the leisure
property market generally lag behind the traditional market. “Added to
this, sales in the leisure market generally occur mainly in February and March,
which means that only time will tell to what extent this market has improved,
if at all.”
Aside from sales figures, RE/MAX of Southern Africa grew in office and agent
numbers too, with 18 new franchises sold during 2010, 558 new agents joining
the brand and 117 agents returning to work under the RE/MAX banner. Goslett
reports RE/MAX agent productivity also saw an increase of 40% during 2010, which
he attributes to the US-based Buffini training course offered exclusively by
the RE/MAX group to its agents. Goslett says that this courses was introduced
specifically to help agents better manage their client relationships.
Says Goslett: “Numerous factors have influenced the year-on-year growth,
mainly the low interest rates that have aided consumers in reducing their high
levels of debt. The interest rate outlook for 2011 is stable which will certainly
add to the appeal of property ownership in the near future.”
RE/MAX of Southern Africa is geared for another year of solid growth in property
sales as well as franchise and agent growth. To date, four new RE/MAX franchises
have already been sold in the first week of business this year.
Talking about the year ahead, Goslett anticipates that demand for property
will remain at much the same levels as the second half of 2010, meaning slow
and steady growth for the first half of 2011.
“It is expected that there will be some increase in property values in
the middle- to lower-end of the market, but the upper-end of the market is expected
to remain stable. General demand is likely to gain momentum in the second half
of the year,” Goslett concludes.
FeedBack (0)
28 January 2011, 09:14:53
Sales on the KwaZulu-Natal South Coast boomed in December. This is according
to Pat Symcox, Broker/Owner of RE/MAX Coast and Country who recently opened
a new office in Hibberdene, further expanding the successful RE/MAX Coast and
Country brand. The office operates in the areas between Hibberdene and Port
Shepstone.
Symcox says that the boom in sales along the South Coast was due to the fact
that those looking to invest in real estate have realised that real value exists
in property there, particularly those situated between Port Shepstone, Umtentweni
and Hibberdene. “This stretch of coastline has been a popular holiday spot
for many years, with Pumula Hotel one of the most popular resorts.”
The area has come into its own as a destination, and, although there is still
a large retirement contingent, the KwaZulu-Natal South Coast has become the
place to be for those looking for a more relaxed lifestyle. “The younger
generation, particularly those aged between 30 and 40 have become aware of the
importance of planning ahead and as a result many are investing in holiday homes
with a view to moving down permanently when they retire,” says Symcox.
He says investing in the area has a number of benefits including affordability.
As many buyers are looking for a unit to cater to their holiday needs, security
is important and for this reason, the lock-up-and-go option has proved to be
the most popular choice. Symcox says that a quality offering in a secure estate
is priced from R750 000. Full-title properties range in price from R850 000,
although anyone investing in a home in this price range will have to undertake
renovations. He says that full-title homes with a sea view that are situated
close to the beach have retained their value.
“There is no doubt that in monetary terms, the South Coast offers some
of the best value for coastal property in the country, particularly when compared
to the North Coast of KwaZulu-Natal. The region has felt the full brunt of the
slowdown in the property market and as such, there are still bargains to be
found.”
The situation will not last forever as Symcox reports that the number of sales
concluded over December alone surpassed the sales for the entire year. “This
stretch of coast is also one of the few areas in the country that boasts six
Blue Flag beaches and although a large amount of development took place in the
“boom years, the villages that dot the region have not affected the beauty
of the area. The beaches are clean, have shark nets and perhaps most importantly,
are largely unspoilt,” he says.
Another factor driving demand is the number of golf courses in the area. “Although
officially known as the Hibiscus Coast, the region with its 11 top golf courses
is affectionately known as the Golf Coast. Hibberdene is ideally situated within
a 45 minute drive from them all.
Adrian Goslett, CEO of RE/MAX of Southern Africa, says that while the property
market is showing signs of recovery, buyers are still looking for those homes
that meet their requirements while offering value for money. Property on the
KwaZulu-Natal South Coast seems to meet these demands for a large number of
buyers looking for a retirement spot or a holiday home.
“The entire South Coast region enjoyed an extremely successful holiday
season in December. This coupled with the reasonable prices of property has
driven demand well beyond our expectations. Consumer confidence has returned
to the area, various projects are on the cards and once completed will fuel
demand for well-priced, quality property. The local market has turned the corner
and I fully expect a further upswing during the second half of 2011,” says
Symcox.
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28 January 2011, 09:12:31
Although South Africa has had to weather a serious global economic downturn,
the economy managed well – and one sector of the local property industry
has remained reasonably buoyant, says Michael Bauer, general manager of the
property management company IHFM and a contributor to a landlord forum, www.lessor.co.za.
The economic problems affected tenants just as much as homeowners and resulted
in more rent defaulters than previously – but they also caused a rise in
those wanting to rent rather than to buy because once the lending criteria of
the banks had been tightened up it became very difficult to buy.
At IHFM each month between four to eight units are being added to their existing
rental management portfolio, he said. On these the company is achieving less
than 2% defaulting payments each month.
“At the outset we conduct a tight tenant screening process, ask for at
least 1.5 times rental deposit and we demand automatic debit orders from tenants,”
said Bauer. “Then at the beginning of every month we are averaging 8% defaulters.
By the seventh day of that month we have usually, through good credit control,
reduced this to 4% and by the fifteenth day reduced this further to 2%.”
Landlords, said Bauer, tend to be resentful of paying extra costs for such
services as tenant finding, advertising and other upfront fees charged by letting
agents. IHFM, therefore, does not charge for these.
“We usually insist on 12% of the monthly rent being paid in commission.
Fees of 10% are charged by some agents,” said Bauer, “but in these
cases regular inspections are sometimes few and far between.”
Bauer said that any landlord or rental agent who is not able to use a national
credit checking network such as TPN is likely to find themselves in serious
trouble. After credit and background checks, he said, IHFM find it necessary
to reject some 30% of applicants. Landlords, he said, can ask to see the tenant
applications and credit reports for themselves and can approve or reject potential
tenants.
The traditional practice of telephoning the previous landlord for a reference,
said Bauer, can be unreliable because some landlords may say “almost anything”
to get rid of an unreliable non-paying tenant who, in some cases, has actually
been related to the landlord. Similarly, employers can be poor referees because
they may know nothing of their employees’ spending habits and can simply
confirm employment.
At IHFM, he said, they now insist on one and a half month’s rental deposit
paid upfront - but this can on occasions prove inadequate to cover the repair
work necessary when a tenant leaves.
An inspection with the tenant, possibly with photographs or a video, and the
compilation of a snag list prior to the tenants taking occupation is essential,
said Bauer, and should be repeated before the tenant leaves before the rent
deposit is refunded. Regular checks on the condition of the property are also
important.
Bauer said that trying to save on an agent’s fees is short-term thinking,
because the role of a good agent in selecting the right tenant, ensuring that
rentals are paid on time and protecting the property simply cannot be over-valued.
“Most landlords tend to forget that their time has value and a cost and
“self-management” is far more expensive than using a good agent,”
he said.
The selection of the right agents is equally important. Just as you would not
hire a divorce attorney to represent you at a criminal trial, so you should
not hire a selling agent to do the letting of your property.
FeedBack (0)
28 January 2011, 09:11:32
The difference between a well-run sectional title scheme in which the units
appreciate steadily in value and those schemes which are not functioning well
can often be seen on a first, short visit to the building, says Michael Bauer,
General Manager of IHFM, the sectional title management company (see Bauer’s
newsletter and blog on www.sectionaltitlesa.co.za).
“Poor maintenance will be evident even to the untrained eye,” says
Bauer. “When trustees are losing the ability to manage their members (and
collect levies from them) many of the units and the common property will tend
to build up a maintenance backlog and need a repaint, waterproofing or some
other improvement. As the property ages, the maintenance requirements and costs
will increase.
Faced with a deteriorating scheme, trustees, says Bauer, have to act decisively:
the Sectional Title Act empowers them to collect outstanding levies plus interest
from owners and compel the owners to maintain their units. Should an owner fail
to do so, trustees are entitled to do the repairs themselves and to recover
the cost from the member.
“Obviously in a poorly managed scheme that is on the downhill slope, carrying
out maintenance and recovering the costs can be difficult especially when there
is no cash flow and working capital,” says Bauer, “but trustees must
not shrink from doing this due to doubts about the timing and their ability
to recover the costs.”
The problems, he said, are often twofold: while facing problems from non-paying
members, the trustees may also be under pressure to keep levies down and avoid
increased debt.
Many trustees, said Bauer, do not realise that, although slow-moving, the legal
processes in these matters can be extremely effective and can bring about action
on the part of the member.”
Firm action, he added, gives an important signal to all members – and
lack of action will also be picked up by them as a sign that it is acceptable
to pay levies only as and when they can.
“It is essential to maintain financial disciplines on all schemes. When
this is done, they flourish. When neglected, they deteriorate.”
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28 January 2011, 09:10:27
In recent years, says Anton du Plessis, CEO of the Cape Peninsula estate agency,
Vineyard Estates, the average difference between the achieved price and the
asking price of homes in the southern suburbs has been ± 13 to 15%.
“This fact,” he said, “is often discussed. The danger is that
it can lead to all potential buyers automatically offering 15% less on every
offer they make – which could be a big mistake.”
The fact that the 15% is an average figure should, said du Plessis, make people
realise that some homes have sold at or close to their asking price while others
(usually hugely overpriced) have sold at 30% or more below the asking price.
“All sorts of intangible subtle factors can influence the bids on a home,”
said du Plessis, “and statistics are by no means hard and fast reliable
guidelines: for example, in the last six months, the “average” price
in Bishopscourt was R20 million – but on investigation it transpired that
only one house sale was put through the Deeds Office in that period - in fact,
in that suburb, it is commonplace for properties to come on the market in the
R30 millions and to sell in the early R20 millions.”
Then, too, said du Plessis, certain areas cover a wide range of housing: in
Claremont, for example, it is, he said, still possible to find apartments priced
under R500 000 but the precinct also has homes selling around the R 20 million
mark. Averages here can, therefore, be misleading.
“The difference between asking and achieved prices in Claremont in the
last six months is only 7% - this probably reflects the fact that sellers have
become more realistic with their asking prices – it does not yet indicate
a strengthening in the market.”
What will surprise many Cape Town southern suburbs property pundits analysing
the sales in Claremont, said du Plessis, is that in the segment over R6 million
the asking/achieved price difference recently has been only 5% while in the
under R3 million bracket it is again at 7%.
“The 5% figure,” said du Plessis, “possibly reflects the fact
that many upper bracket buyers can get bonds easier (as some are asking for
only 50 to 70% of the purchase price). Others are straight cash buyers who do
not need bonds. In the under R3 million market, many buyers are looking for
90% bonds, and are pushing the boundaries where it comes to qualifying for a
bond.
Most of Cape Town’s southern suburbs, said du Plessis, have always been
prime property and have traditionally resisted price falls strongly. While he
does not expect prices here to rise by more than 5 to 6% in 2011, he remains
adamant that in the long term the prime southern suburbs served by Vineyard
Estates – Upper Claremont, Upper Kenilworth, Rondebosch, Bishopscourt and
Constantia still rank among the top 10% best property buys in SA today.
FeedBack (3)
28 January 2011, 09:02:28
Those looking to buy a residential property are still waiting to find their dream
home, even though their budgets have shrunk. This is according to Gerrit Stenvert,
Broker/Owner of RE/MAX Outeniqua, which operates in the Garden Route town of George
and has properties listed in Herolds Bay, Victoria Bay, Glentana, Tergniet and
surrounding areas.
Stenvert believes that most people are not willing to let their dream home
go and settle for less. "Instead they will rather wait for the day when
their price range and their dream home are on the same level, and this is one
of the main reasons why the property market in George has slowed down over the
last two to three years."
But, he says, on the other hand investors here are becoming more and more active.
They are looking for below market value buys with above market value income,
therefore securing above average return on investment on the income and capital
growth. "These kinds of investment buyers have been successful in George
as this scenario makes a well-priced house with flat in an average area a polished
diamond due to the huge demand for residential rentals in the sub R5000 per
month market," he says.
Stenvert notes an increase in sales volumes in George towards the end of 2010.
"Serious sellers are negotiating downwards and a decline in prices has
occurred. The sub R800 000 market is moderately active but the market cools
off as prices increase to the higher levels. The residential property market
has been far more active than the commercial one and the industrial market is
still in a coma," he says.
According to Stenvert, housing in George ranges from affordable to very expensive
as its areas accommodate a diverse range of people. Therefore, he says that
while entry level housing has different meanings to different buyers, those
looking to purchase in George can expect to pay anywhere from R300 000 up to
as much as R1,3million for entry-level housing, depending on the area or suburb.
He reports that the market has been slow in the mid-level housing sector, which
ranges from R700 000 up to around the R1,8million mark. Homes in the upper price
brackets however, are quite common in George suburbs such as Campfers Drift,
Heatherlands, Glen Barry, Fern Ridge, Glenwood and Eden. Here prices range from
about R1,7million up to R8million plus, with the odd investment exception.
But even though sales have been on the slow side, RE/MAX Outeniqua recently
sold a house in Tergniet for R2,75million and two properties to one investor
in the past four months.
While he cautions that property is a long term investment, Adrian Goslett,
CEO of RE/MAX of Southern Africa, says that nationally property is only expected
to achieve a growth rate of around 3% for the year, but those properties that
are well situated and well priced have the potential to show better returns
in a shorter period of time.
Looking forward, Stenvert believes that depending on area and price, property
sales will be slow to moderate for the next 12 months in George and through
the rest of the Garden Route. However he says that some residential properties
here offer an exceptional return on investment that beats most commercial options
on risk and capital growth.
FeedBack (0)
05 January 2011, 08:34:09
These days, no self-respecting agent would think of trying to work without
a cellphone and similarly, almost all real estate companies these days have
a website, or at least a web presence.
But of course not all websites are created equal. Some, like the newly revamped
RealNet website, have been carefully designed and constructed not only to be
really user-friendly and easy to navigate, but also to achieve maximum worldwide
exposure through search engine optimisation (SEO).
The effect of this, explains ggroup mmarketing ssupport mmanager Piet Olivier,
is that the website has higher visibility on popular search engines such as
Google and so attracts more visitors. “This is evident from the huge jump
in our site’s world traffic rankings since it was re-launched a month ago.
It has moved up from about number 355 000 in the world to number 159 631, because
it is now attracting twice the number of visitors as it did before.”
And this is of very real value to RealNet clients, he says, because it means
that their properties listed on the website are now getting twice the amount
of exposure, all over the world.
“Indeed, the percentage of visitors to the site coming from outside SA
has increased by 86% since the redesign.
“We have also built in an option for any property on the website to be
instantly shared via the Facebook and Twitter social networks, which will boost
exposure even more.
“And then we have gone even further, creating a mobi site which enables
visitors to search listings online, at any time, through their mobile phones.
This means they do not even need a computer to access our website, and the highly
efficient design allows fast downloads, including photos, to any phone with
a mobile browser.”
Features of the redesigned RealNet site include categorised or “horizontal”
searches to assist potential buyers to quickly find exactly the types of property
they are looking for. For example, visitors to the site can now search for commercial
properties for sale, or for farms and smallholdings, or for new developments
and rental properties, as well as residential properties to buy.
Then, once they have selected the type, price and features of the property
they are looking for, the results will give them the option of viewing all suitable
properties within the province at the same time, eliminating the need to search
area by area.
“The response to this has been tremendous,” says Olivier, “
with visitors now each spending an average of 55 minutes on the site compared
to 21 minutes previously, and each viewing around 32 pages, which is more than
double the average number viewed before the relaunch.
“In other words, www.realnet.co.za and mobi.realnet.co.za are now even
more effective tools to help our agents and their clients connect with potential
buyers across SA and around the world, and thus to achieve quicker and better
sales.”
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15 December 2010, 12:20:24
For many homeowners nearing retirement, downsizing their home seems to be an
inevitable step, particularly once all the kids have left the nest. While for
some this may be a very emotional life event, others may well look forward to
a more relaxed lifestyle, unfettered by monthly bond repayments and the never-ending
upkeep and maintenance that is part and parcel of owning a freehold property.
“Either way, there are a number of issues that should be carefully considered
before making a decision,” says Adrian Goslett, CEO of RE/MAX of Southern
Africa.
“There are numerous lifestyle benefits to downsizing from a large, free
standing, full title suburban property to a sectional title unit in a secure
complex or a retirement village. For example, you are no longer responsible
for the upkeep and maintenance of a home, a large garden, a pool and other property
features. You can also enjoy increased security and easier access to amenities
such as 24-hour medical care and social activities. In addition, downsizing
can result in significant monthly cost savings for homeowners, in terms of the
rates and taxes, utility bills, maintenance and repair costs, and security and
insurance costs. This is important in light of the fact that monthly pensions
are smaller than the monthly salary earned while working, even if the homeowner
made good provision for retirement,” comments Goslett.
“However, the biggest expense in most households is the monthly bond repayment,
and whether a homeowner will be free from this responsibility will depend on
how well the family’s finances were managed prior to retirement.”
If a homeowner has paid off the mortgage bond on the property, or at least
the bulk thereof, it may well be possible to sell the property, settle the outstanding
bond and have enough capital to purchase a smaller property without having to
enter into a new mortgage agreement. “Homeowners who have paid off their
mortgages prior to retirement are in a far better financial position than those
who still face a number of years of mortgage payments because they had, for
example, taken out a second bond on the property, or upgraded to a bigger property
a few years earlier,” says Goslett. “Should there not be sufficient
equity – the difference between the current market value of the property
and the outstanding bond amount – for a cash purchase of a smaller property,
homeowners will face some challenges. Firstly, at age 65 and older, it becomes
particularly difficult to obtain a bond. These homeowners will have to carefully
consider what monthly rental or bond repayment they will be able to afford on
their lower pension income, and whether they will be able to cover the costs
involved in buying a new property, such a deposit, transfer costs and taxes.”
But there are further issues that complicate matters significantly. “For
example, if a homeowner has owned the property for some time, the capital gains
tax implications of selling the property could be significant. Homeowners may
not be able to realise the full value of personal belongings by selling these
belongings. In addition, timing should be carefully considered – it may
not be the best time to sell a property and by delaying the decision to downscale
by a few months may result in a better selling price, or - if market conditions
change unexpectedly – in a lower sales price. On the other hand, despite
the current market conditions, units in secure complexes and retirement villages
remain high in demand, and delaying the downsizing decision could result in
a homeowner missing a good buying opportunity in the current buyer’s market.”
Goslett says that homeowners who have paid off their bonds, or who have very
small monthly bond repayments could consider renting out, rather than selling,
the property. “Provided that the rental income will exceed the monthly
bond repayments and other costs, and that the homeowner has sufficient cash
flow to cover any vacancies, renting the property to a tenant could be a solution.
It will provide an annuity income for the homeowner, which could supplement
retirement income.”
Downsizing a property for retirement is not simply a matter of selling a large
property and buying a smaller property. “It should form part of a comprehensive
and well-considered retirement plan, in which the financial implications of
various possible options – such as living on the property for a few more
years, selling the property or renting out the property - is carefully considered
in light of retirement income and lifestyle. In addition to obtaining the relevant
information about the market value of the property, the current market situation
and the rental possibilities from a reputable estate agent, homeowners should
get professional financial advice in this regard to ensure they understand the
full financial and tax implications of downsizing their property,” concludes
Goslett.
FeedBack (0)
14 December 2010, 09:15:51
Kim Ashton, manager of the Western Cape Institute of Estate Agents’ PropPlacements
division, reports that this year she has found positions in property for 52
candidates - 41 residential and rental agents; four interns to real estate and
seven administrative staff.
“This,” said Ashton, “could give the impression that we are
heading for another property boom but in reality many agents this year have
had a rough ride.”
Now that the Christmas break is approaching agents may well find that they
are short of funds.
“In the circumstances,” said Ashton, “perhaps it is time that
the estate agency world adopted the practice of many corporates and smaller
businesses of awarding some sort of December bonus to both administrative staff
and agents.
Bonuses, she said, are not in any way obligatory in SA labour law and often,
if they are paid, are strictly performance related but she would like to see
agencies awarding a further 1% commission to agents on any deals done over the
December break (when sales tend to be fewer) and “thank you” handouts
made to the admin staff. These could possibly be paid upfront (i.e. before Christmas)
on the understanding that if a sale falls through the agent will accept a commission
reduction later.
“The estate agency world,” said Ashton, “is strong on incentives
but still lacks certain perks.
“An IEASA committee member, Samuel Seeff, has pointed out that almost
no agencies offer medical aid. This, too, should, I feel, now be considered.
With the rise in status being brought about by the new educational qualifications,
agents should have the extra benefits of other professionals.”
FeedBack (0)
14 December 2010, 09:15:08
One of the major challenges facing any sectional title scheme is to find competent
trustees who will take their duties seriously and work for the benefit of their
fellow members.
“There is,” says Michael Bauer, general manager of IHFM, the sectional
title management company, “almost always a reluctance to take on a trusteeship
– for the simple reason that the position is unpaid, the trustees are seldom
thanked and the position can involve responsibilities of which many people are
afraid.”
Long experience in the sectional title sector, said Bauer, has shown that the
average body corporate member avoids being a trustee because, should things
go wrong, he or she could be held legally liable.
This fear, says Bauer, is by and large not warranted because the Sectional
Title Act provides for a general indemnity for trustees in the event of their
making a “genuine” mistake and for the body corporate to pay for this.
The Act does, however, allow prosecution for any criminal acts (such as fraud)
or for gross negligence.
“If, for example, trustees allowed a managing agent to appropriate a large
sum without giving an analysis of the reasons for doing so, that could be deemed
as negligence.”
Managing agents, who are assumed to be professionals, are not indemnified by
the Act. If they make a costly mistake, however, it will probably be covered
by their Fidelity Fund Certificate insurance.
On most sectional title schemes, said Bauer, the insurance policy will cover
the trustees up to a payment of R1 million.
Any managing agent who does allow defaulting levy payers to continue to get
away with it or who fails to maintain and secure the complex properly might
be liable to prosecution – but, Bauer repeated, the same level of expertise
and competence is not expected of potential trustees – who should, therefore,
be more willing to take on a position where they can so materially assist their
fellow members.
FeedBack (1)
10 December 2010, 08:06:25
 It
has long been a tradition of companies to celebrate the closing of yet another
year with colleagues. This year, the agents from REMAX Infoglobe, which operates
in the suburbs of Pretoria East, decided to break away from this tradition and
rather spend their day off entertaining the children from the Louis Botha Children’s
Home.
The Louis Botha Children’s home is a welfare organisation that currently
takes care of 97 children between the ages of 5 and 18. These children are victims
of misdemeanours including abandonment, neglect, emotional and physical abuse
and have been removed from their parents/guardians by the courts.
RE/MAX Infoglobe Broker/Owner Andrew Louw said that in the short time that
his office has been operating in the area, the business has grown from strength
to strength. Over the past year, during a time where many real estate agencies
had to close their doors, this office managed to grow triple digit figures,
which Louw attributes to the commitment to customer service and determination
to succeed his office has.
“But,” he says, “our success could not have been achieved if
it were not for the support of the community. That is why, for the team it was
a unanimous decision to forego a traditional company year-end function, and
rather give back to our community by bringing joy to these children.”
 Approximately
40 children attended this event, which took place on the rugby field of Hoërskool
Garsfontein on Saturday 4 December. The team from RE/MAX Infoglobe spared no
expense to make this day a memorable one for the children. While flights in
the official REMAX hot air balloon had to be cancelled due to the weather conditions,
the balloon was raised much to the delight of the children.
Louw said the food and drinks, fun activities like the jumping castle and especially
the presents which included a R150 Pick ‘n Pay voucher for each child,
all culminated to make it a fantastic day of fun for everyone.
Their entire RE/MAX Infoglobe team with the support of two attorneys, AJ Coetzer
De Beer & Steyn and Prinsloo Bekker Attorneys, as well as BetterBond made
sure that every child walked away with a very happy memory.
Adrian Goslett, CEO of RE/MAX of Southern Africa, says that giving back to
the local community in which a business operates is an important element of
corporate responsibility. “Well done to RE/MAX Infoglobe for making such
a meaningful contribution to its community through hosting this fun-filled event
for its children.”
FeedBack (1)
07 December 2010, 08:29:47
RE/MAX ranked as PropertyGenie’s top agency lead earner for two consecutive
months
South Africa's leading online property search portal, PropertyGenie.co.za,
releases a monthly report on the latest trends within the residential property
sector. Both the October and November PropertyGenie Trends Reports list RE/MAX
as the top lead earner among its database of residential properties listed with
all South Africa's leading real estate agencies. This ranking is based on the
website’s Email a Friend, Email/SMS Agent, Call me back and Agent Tel number
functionality.
Two RE/MAX properties also ranked second and fifth in the Top 5 most viewed
properties on the website for November.
The Western Cape continued to dominate in the November 10 hottest suburb listings,
with Bryanston - Gauteng, Claremont – Western Cape and Sea Point –
Western Cape ranked in the top three positions. Sea Point was followed by Hout
Bay – Western Cape, Morningside – KwaZulu-Natal, Rondebosch –
Western Cape, Kenilworth – Western Cape, Newlands – Western Cape and
Plumstead – Western Cape.
Furthermore, the Western Cape suburbs of Green Point, Sea Point and Rondebosch
were the top three areas to earn the highest suburb alerts over the course of
the month.
Says Adrian Goslett, CEO of RE/MAX of Southern Africa: “Reports such as
these go to show the importance that the internet currently plays, and will
continue to play, in the property sale process. It is well known that many buyers
research online before embarking on the physical aspects of the house hunting
process, and it is evident that agents who maximise this technology to its full
advantage generate leads which ultimately will translate into property sales.”
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02 December 2010, 15:19:15
 Well-known
for its superb luxury hotels and holiday accommodation, first world shopping
centres and exotic Mediterranean, Asian, Middle Eastern and African restaurants,
Umhlanga offers a vibrant night life and plethora of holiday, dining and entertainment
experiences, with the Sibaya Casino as one of the area's main attractions.
Just off the coastline, on land that once formed part of Umhlanga's undulating
sugarcane landscape, Tongaat Hulett Developments built an exclusive residential
estate, which, to date, has outperformed most of the other prime developments
in and around KwaZulu-Natal.
Situated just off the N2/M4 on the coastline of Umhlanga, the first stage of
the development, known as Izinga Ridge, commenced in 2005 and comprises four
gated village estates. "They are almost completely developed and offer
buyers an exciting mix of properties, including sectional title units, duets
and freestanding houses, with a selection of panoramic sea views," comments
Gareth Bailey, Broker/Owner of RE/MAX Address, whose agency has been accredited
to market the development.
Building sizes start from 260m2 for a sectional title unit to 310m2 upward
for a duet and 580m2 upward for a freestanding house with land sizes ranging
between 850m2 for a duet to 1,100m2 upward for freestanding houses. Sectional
title units are priced from R2,8-million with duets reaching R3,5-million upward
and freestanding houses priced from R5,7-million upward. Plot sizes range between
700m2 and 1 600m2 and are priced from R770 000 to R1,4-million.
The second stage of the development, known as Izinga suburb, commenced in 2008
and forms part of a potential 2000-unit project, which will form the residential
suburb around Izinga Ridge as opposed to being a gated community.
"The architectural style is similar to that of Izinga Ridge's earthy African
palette and Mediterranean/Balinese form, spoiling residents with large open
spaces and areas where they can walk, run, cycle or just enjoy the fresh air
and breathtaking ocean view, says Bailey.
In these challenging economic times, developments have suffered perhaps the
worst of the brunt. "Izinga, however, has done exceptionally well, which
can be attributed to its prime position, among other factors," adds Bailey,
who also notes that phase one of the land sales is almost completely sold out.
Describing Umhlanga as Durban's Sandton by the Sea, Bailey notes that the north
coast has shown solid growth and that demand currently exceeds supply for high
quality, secure, gated estates in Umhlanga while non-gated estate land in prime
positions are also sought after.
Adrian Goslett, CEO of RE/MAX of Southern Africa says Izinga's close proximity
to prime amenities such as the Gateway Theatre of Shopping on top of Umhlanga
Ridge, the Umhlanga Hospital, the burgeoning Umhlanga Ridgeside business district
and excellent private and public schools, makes it one of the most sought-after
development opportunities in KwaZulu-Natal.
Please contact Gareth Bailey, RE/MAX Address on (031) 313 1310 for more information
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02 December 2010, 15:18:58
The collapse and massive bail out of the Irish economy will have repercussions
for South Africa, says Bill Rawson, Chairman of Rawson Properties.
"As has been thoroughly documented," says Rawson, "in the 2003
to 2007 period the Irish economy had a phenomenal growth, twice exceeding 8%
per annum. As a result, here in South Africa we suddenly found many Irish buy-to-rent
investors buying up property, particularly at the Cape.
What is more, many did it on a big scale, acquiring 20, 30 or even more properties,
either individually or syndicates, and in some cases they invested in more than
one province."
This, says Rawson, was part of a worldwide trend. Irish property investors
also moved into Chile, many of the European countries, parts of the USA and
Australia.
Certain of the buyers in South Africa, says Rawson, are now finding that, with
the collapse of their banks and the call-up of investment finance, they cannot
service their bonds and in many cases are seriously over-extended. He himself,
he says, knows of two syndicates that have given instructions to South African
estate agents to sell for what they can get.
"The strategy in most cases," says Rawson, "appears to be to
find enough cash to cover the outstanding bond. This probably means that they
will have to sacrifice everything that they have paid in so far - an indication
of how drastic the situation is for some of them."
Rawson stresses, however, that this was not true of all investors from
Ireland: some, he says, have already paid off the bulk of their commitments,
others are well able to service their bonds (usually with 50% of the money raised
locally and 30% to 40% raised in Ireland because South African law does not
allow a foreign investor to use local bonds for more than half the total sum
borrowed).
"From what I have been told," says Rawson, "the successful Irish
investors will continue to be a significant force in South African property."
With the rand so strong and Irish property now often selling at 30% to 50%
discounts on the previous high prices, says Rawson, now is a good time for South
Africans to reverse the trend and start buying in Ireland.
"There can," he says, "be fewer more pleasant places to live:
with a population of only four million the country remains predominantly rural
and unspoilt and the people are friendly and the cultural sophistication of
the upper middle class Irish has long been recognised. South Africans tend to
feel very comfortable and at home if and when they holiday or settle in Ireland."
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26 November 2010, 09:18:50
Known as the vibrant student suburb of Cape Town, Rondebosch is located approximately
5km from the Mother City's urban centre, and is bordered by the suburbs of Rosebank,
Rondebosch East, Claremont, Newlands, and the slopes of Devil's Peak.
Says Graham Alexander, Broker/Owner of RE/MAX Alliance: "Primarily a residential
suburb, Rondebosch is host to a wide variety of facilities and amenities in
the area. It offers various retail outlets and shopping malls, as well as its
own business districts. It is conveniently located with easy access to the Simonstown
trainline, which runs from Cape Town through Rondebosch to Simonstown."
Considered to be one of Cape Town's entertainment centres, Rondebosch is home
to The Baxter Theatre, which is Cape Town's second biggest theatre complex.
Rondebosch is also home to the historic Groote Schuur Estate, which includes
presidential and ministerial residences with Cape Dutch origins. Other historical
buildings in the Rondebosch area include the library, formerly the town hall,
and St Paul's Church, which was designed by Charles Michell. Main Road, located
in the centre of Rondebosch, is home to the well known historic landmark - the
cast iron Victorian Rondebosch Fountain, around which local Capetonians sell
a wide range of freshly cut flowers.
However, what Rondebosch is arguably best known for, are its excellent schools,
says Alexander: "The strength of the property market in Rondebosch, one
of Cape Town`s leafy southern suburbs, has always been underpinned by the abundance
of schools and well established educational institutions located in the area.
Besides Westerford, the best school in the country according to an annual survey
by the Sunday Times Newspaper, the area is also host to South African College
School, Rondebosch Boys Junior and High School, Rustenburg Junior and Senior
Girl`s schools, Groote Schuur Hoërskool, Bishops and Marist Brothers."
He says that sporting facilities are also in ample supply in this suburb, and
for those who work in the Cape Town city centre, the area is conveniently located
approximately 25 minute's drive to the inner city CBD in rush hour traffic.
"Rondebosch's Golden Mile is still the best address in the area, which
has shown strong resilience to price cutting through the recession and subsequent
downturn in the real estate market. The precinct is bounded by Park Road which
faces Rondebosch Common, Milner Road, Avenue De Mist and Campground Road,"
says Alexander.
Adrian Goslett, CEO of RE/MAX of Southern Africa says that due to the fact
that Rondebosch is a very sought after area, it boasts a relatively low property
turnover and that real estate values have managed to maintain steady growth:
"According to propstats.co.za, a total of 78 properties changed hands between
January to June 2010 and the average discount to asking prices have remained
at a very comparably low 8%, which indicates the strength of Rondebosch`s property
values. These figures include Sectional Title sales and also cover Rondebosch's
Silver Mile, located closer to the M5 freeway. The suburb comprises about 3
000 erven and 109 sectional title blocks, so the low percentage turnover indicates
the stability of this sought after area."
A fact that Alexander says is backed by facts listed on the property transfer
guide - the SAPTG website: "According to www.saptg.co.za, there have been
65 property sales in the last six months, and 134 sales in the last 12 months.
The predominant price band for real estate in the Rondebosch area lies between
the R2-million and R5-million mark, with the median sale value for 2010 lying
at R2,3-million. Bucking the general real estate trends, the area's median sale
value has remained pretty constant over the last four years, ranging from R1,8-million
in 2006, to R2,1-million in 2007, R2,375-million in 2008 and R2,4-million in
2009."
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26 November 2010, 09:14:19
p>Demand for homes in the Parow Valley area is as strong as ever, because the prices
here are exactly right for today’s market, says the Rawson Properties franchisee,
Alvin Suklall, - but, he adds, bond applicants at this price level have great
difficulty obtaining bonds.
Suklall’s territory is one of the largest in the Rawson group – it
covers Parow Valley, Ravensmead, Elsies River, Cravenby, Matroosfontein, Bonteheuwel
and Valhalla Park. It has some 15 000 houses in all. Homes here can be priced
up to R1,3 million but the vast majority are in the R350 000 to R800 000 bracket.
“I go to great lengths to ensure that the potential buyer is more or less
prequalified,” says Suklall, “but even then my applicants experience
a 60% rejection rate. The banks are exceptionally diligent these days about
credit checks and, while that is understandable, and even commendable, the scorecard
system can result in perfectly worthwhile steady employees being disqualified
on account of some minor slip-up or misdemeanour of which they may not even
be aware – and which, in my checking, I have also not picked up. Like other
senior property people, I have these days to be a financial consultant to my
clients so as to help them pre-qualify for bonds.”
His area, says Suklall, has already been harder hit by bank repossessions and
distressed sales than most. These are often a direct result of job losses and
they have kept prices down despite the huge demand for property. Suklall does
not foresee a strong recovery until the second or third quarter of 2011.
“We at Rawson’s have benefitted from the Quick Sell properties and
PIPs,” he said, “because we have good connections with the banks and
handle a major share of these properties.”
Three factors, said Suklall, have helped, or will help, in these times. The
first is that some banks have been willing to arrange personal loans over and
above the bond to cover the extra costs such as the deposit, the transfer and
conveyancing fees. These have to be paid off faster than the bond but they do
not cause undue hardship.
Secondly, at this price level, the 0,5% drop in interest rates will bring another
10% buyers into the market.
Thirdly, awareness of the banks’ reactions to debt or poor paying track
records has grown markedly in the last few months and people now realise and
accept the need for a “clean sheet” profile before going house hunting.
Buyers are also willing today to go for a less expensive area rather than the
one which would have been their first choice. Also helpful is that if the bond
applicant earns less than R15,900 per month (combined salaries) and buys below
R300 000, he can now get a 100% bond.
“This new attitude to saving,” says Suklall, “is a big change.
I have in the past had applicants where the combined husband and wife salary
was close to R50 000 per month but where debts – on cars, store accounts,
credit cards and the like – made it impossible for them to get a bond.”
As in other areas, says Suklall, a fairly high percentage of home sellers have
still not come to terms with today’s prices – they are still holding
out for figures 15 to 20% above what the market will offer – but this,
too, he believes, will change in the new year.
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26 November 2010, 09:12:54
KwaZulu-Natal's Elephant Coast, so named after the country's largest herd of indigenous
African elephants that have lived in sand forests in this region for centuries,
stretches from the world heritage site of Lake St Lucia in the south to the Mozambique
border in the north.
The Elephant Coast is fast growing in popularity for its incredible variety
of habitats and ecosystems, and, with its sand dunes and swamps, coastal forests,
rocky shores, coral reefs, mangrove swamps, woodlands, savanna grassland, and
the largest protected wetland in southern Africa, iSimangaliso Wetland Park
(the Greater St Lucia Wetland Park), a World Heritage site, it stands to reason
that this stretch of coastline is the ecotourism Mecca of the Zulu Kingdom.
Lourens de Lange, Broker/Owner of RE/MAX Heritage which services this region,
says sales in the St Lucia area in the past six months have been incredible,
with the office receiving property enquiries on a daily basis. "St Lucia
is just going to get more and more expensive. Holiday makers here realize this
and want to buy and invest in St Lucia," he says. "Over the last five
months, June to October 2010, our total value of sales in monetary terms was
the second highest ever over a five month period in the last five years."
He attributes this to the natural beauty of the area referring to the fact
that iSimangaliso Wetlands Park must be the only place on the globe where the
world's oldest land mammal (the rhinoceros) and the world's biggest terrestrial
mammal (the elephant) share an ecosystem with the world's oldest fish (the coelacanth)
and the world's biggest mammal (the whale).
In addition, he says that as St Lucia only has 400 odd stands and cannot grow
further as it is the only town in the world situated within a World Heritage
Site, meaning that there is limited supply which continues to drive demand.
"Old houses, townhouses and flats are being bought and renovated here,
with old self catering flats getting bought up, renovated and sold off as sectional
title units," he says. "Large stands of 2000m2 are being subdivided
into two 1000m2 stands, as the smallest size a stand may be in St Lucia is 900m2.
"
De Lange says that in the last five months his office has sold a range of properties
priced between R590 000 and R2,15m in St Lucia. In Monzi an 8ha property with
2ha of macadamia nuts and a four-bedroom home sold for R 3,175m while two vacant
20ha plots were sold in Hluhluwe for R960 000 and R1,295m respectively. "The
amazing thing is that all these properties were sold as cash deals; not one
was with a bond or mortgage. "
Talking about average property prices in the area, de Lange says that a one-bedroom
flat situated in a complex with a swimming pool would sell between R 490 000
and R 690000 while a two- bedroom apartment in a complex with a pool, tennis
and squash court as well as a jetty on Lake St Lucia would sell between R600
000 and R900 000. "The cheapest house currently on our books is a three-bedroom,
one-bathroom house that needs some attention. It is situated on a 1000 m²
stand and is selling for R1,6m."
According to de Lange, average middle class homes are priced between R2,2m
and R3,2m and feature three to four bedrooms, two bathrooms, a swimming pool
and double garage. These homes, he says, are also usually situated on 1000m2
stands.
"The most expensive houses in the area are the those currently being used
as guest houses or B&B's. These usually have four to seven en-suit bedrooms
with lounges and dining areas, swimming pool etc. These properties, which enjoy
an average of 40% occupancy, sell between R5m and R11m, depending on rooms and
occupancy."
He says most buyers in the area are South Africans that buy flats, town houses
and holiday homes. The foreigners from Europe usually buy old run down houses
and spend a lot of money renovating and upgrading the properties for family
homes or B&B's. The vacant land and small holdings in Hluhluwe and Monzi
are being bought by both foreigners and South Africans that want a place in
the bush or to start guest lodges, or other hospitality businesses.
Adrian Goslett, CEO of RE/MAX of Southern Africa, says that while most of South
Africa's regional property markets have felt the effects of the economic slump,
there are some regions that have seen phenomenal growth, such as St Lucia. "Areas
with a limited supply of properties and continuous demand have excellent long
term growth potential."
However, de Lange says that with the increase in demand, prices have escalated
and buyers sit and wait for a bargain that never comes. However, in the future
fractional title sales may be introduced into the area as properties are getting
more expensive and people only go on holiday maximum of four weeks. "Buyers
will be able to choose four weeks in a 4-star guest lodge with breakfast in
the mornings, swimming pool and boma for braai's in the evening at the lodge
or a two- or three-bedroom self catering apartment, which is still being negotiated
with the owners," says de Lange.
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26 November 2010, 09:12:26
The decision made by one of SA’s major banks to establish and work exclusively
with a brand new origination company which deals directly with estate agencies
will adversely affect bond originators and could, in fact, also reduce the amount
of mortgage bond business that the bank itself does, says Rob Lawrence, national
manager of Rawson Finance.
“There have over the years been various attempts to cut back on the number
of bonds handled by originators,” said Lawrence, “but in the end they
have all been abandoned because clients appreciate the fact that bond originators
will approach all the banks to get them the best possible deal. Any arrangement
which limits this flexibility and choice and tries to channel the bond applications
to one bank only is likely to be seen as suspect even if, as is the case here,
the bank has promised to stick to the current lending policies and criteria.”
The popularity of bond origination, said Lawrence, is shown by the fact that
Rawson Finance has this year increased its turnover by 60%.
“October was our best month ever,” said Lawrence.
The connection through the Rawson group is, he said, proving valuable and working
to the benefit of both Rawson Finance and the agents themselves (who receive
a commission on all referrals).
Lawrence said that if the double dip in the global economy can be avoided,
good trading conditions in property could be seen again within 12 to 18 months.
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04 November 2010, 16:49:25
The selling of a home frequently involves a whole chain of related property
transactions, involving two or even three buyers and sellers, and this can cause
complications related to the occupation date, says Anton Du Plessis, CEO of
Vineyard Estates.
“Occupation on transfer is,” he says, “the widely accepted practice
– and our experience indicates that that it is preferable to other arrangements,
but it is not always possible.”
If the buyer moves in prior to transfer, said Du Plessis, there is always a
danger that he will then find that certain aspects of the home are not to his
liking – and he may then instruct his conveyancer to hold up the transfer
while he negotiates for remedial action.
“If the buyer is a shrewd operator accustomed to sailing close to the
wind, he may ensure that the transfer is delayed and that he pays occupational
rental for several months. This will be to his benefit because in most cases
the occupational rental is only 50 to 70% of what he would be paying each month
on his bond.”
To prevent situations of this kind arising, said Du Plessis, if at all possible,
the occupational rent should be set, at the current bank rate, as a percentage
of the total purchase price.
Arrangements for some kind for occupation before transfer, says Du Plessis,
should be included in all sale contracts because transfer dates can vary, they
are dependent on other transactions such as the obtaining of a SARS tax certificate
and a rates clearance certificate and other documentation, the dates of which
cannot be guaranteed.
“Accepting that the average transfer takes two and a half to three months,
it is wise to set a transfer and occupation date well ahead, say, at least three
months ahead. Most conveyancers will agree that it is almost impossible to guarantee
a specific transfer date. At present, it takes over ten working days from lodgement
at the Deeds Office until actual registration of transfer. It can be appropriate
to insert a clause in the deed of sale that states that occupation can occur
on a specific date, provided that lodgement of the transfer has occurred. Failing
this, it is also wise to specify a time on the day of transfer for occupation
to occur - say midday. This allows all parties to plan ahead and to instruct
the movers correctly,” he says.
When writing out an offer to purchase, the buyer should not automatically specify
the date of occupation to be the first of any month: he should check if the
occupation date is set for the weekend. The usual practice is to set the transfer
and move on the first day of the month but, if this is a Sunday, it is likely
that no removal service will be available on that day – and it should be
remembered that, as most removal companies like to pack the goods the day before
they do the move, Monday is also not a good day for a move. Quite often, says
Du Plessis, it will happen that one removal company works faster than another
– with the result that the buyer’s fully loaded van may have to wait
hours before the seller’s packers move out of the home. For this reason,
he says, the actual time of the occupation should also be specified.
Ideally, says Du Plessis, the seller should be allowed two or three days after
his move to clean up the house.
“Any move will cause a mess. The conscientious seller will always ask
for a day or two to clean the fitted carpets, tiles and windows.”
Although estate agents are seldom directly involved in organising a move, their
experience can be valuable to the clients – and should be drawn on, added
du Plessis.
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29 October 2010, 08:22:37
 Fourways
Gardens resident wins a R100 000 room makeover from RE/MAX of Southern Africa
By Friday 22 October, votes for the RE/MAX room makeover competition were tallied,
with the Steyn family of Fourways Gardens, announced as the winner of the R100
000 prize on Saturday 23 October.
The six-week online competition, which launched on 1 September, was advertised
nationally and received over 9000 entries. Over 5000 instant prizes, from spa
pamper treatments and rounds of golf to magazine subscriptions, were awarded
to participants during the competition.
RE/MAX of Southern Africa also held its own "Blog to Win" competition,
an online campaign for the blogging community that motivated bloggers around
the country to direct as many people as possible, with their blogs as the platform,
to enter the national competition.
On 7 October five finalists were randomly selected and verified by accredited
auditors. The finalists were then asked to submit a short motivation about why
they deserved the room makeover, along with a picture of the room they would
like to see with a new look. Pictures of these five finalist's rooms were posted
on the RE/MAX website, www.remax.co.za, for the general public to cast their
vote to determine which room they thought deserved the makeover the most.
On Saturday 23 October, Gary and Diane Steyn and their two sons, Kevin and
Brandon, were surprised by a visit at their home from Adrian Goslett, CEO of
RE/MAX of Southern Africa, along with a team of RE/MAX agents and staff, who
announced them as the winners and handed over the grand prize. Kevin's bedroom,
which was the room entered for the makeover, received 26 619 out of the total
57 206 votes.
A surprised and excited Steyn family said they were elated to be voted as the
winners. "We mobilised all our friends and family to vote for us and are
extremely excited about a makeover of Kevin's room." Diane said she is
looking forward to seeing the room change, and is grateful for the opportunity
as she lacks creativity when it comes to interior décor.
Gary, said he felt the competition was exceptionally well run, with the web-based
system making it easy to vote. "RE/MAX has also involved youngsters in
this competition, which is a great brand-building initiative."
Adrian Goslett, CEO of RE/MAX of Southern Africa, congratulated the Steyn family
on their win. "This competition has been extremely successful, and presented
RE/MAX with a brilliant opportunity to engage with its customers in a fun yet
meaningful way. Well done to the Steyn family, we all look forward to comparing
the before and after look," Goslett concluded.
Caption: The Steyn family of Fourways Gardens were announced as the RE/MAX
Room Makeover Competition winners. From left to right: Vicky Goslett, RE/MAX
of Southern Africa Senior Manager: Marketing and Franchise Services, Brandon
Steyn, Gary Steyn, Diane Steyn, Kevin Steyn, Adrian Goslett, CEO of RE/MAX of
Southern Africa.
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27 October 2010, 08:53:58
The smell of a freshly mowed lawn is one of summer's special delights for many
homeowners, but figuring out what to do with the grass clippings is often not
such a pleasure - especially if you're trying to live a more "green"
life.
"The simple answer, of course, is to make free compost that you can then
use to improve the soil quality and fertility and benefit the plants in the
rest of the garden," says Berry Everitt, CEO of the Chas Everitt International
property group. "But unfortunately it is not quite that easy, because grass
by itself is tricky stuff to turn into compost."
Writing in the Property Signposts newsletter, he notes that grass clippings,
being mostly water and very rich in nitrogen, can be problematic in compost
heaps and bins because they tend to compact, become anaerobic and start to smell.
"Consequently, you need to mix them with lots of carbon-rich material (also
called "browns"), such as dried leaves, coarse straw or hay, mielie
cobs, sawdust, paper and cardboard."
If you have a lot of grass clippings to compost, he advises, you should spread
them out to dry in the sun for at least a day before adding them to your compost
heap and then layer them with brown material in a ratio of about two parts brown
to one part green. In this way you should be able to "harvest" nutrient-rich
compost in just a few weeks.
"What is more, you will be doing your bit to recycle useful material instead
of sending it to the landfill, where plant material tends to break down in anaerobic
conditions and give off methane - a gas that is 21 times more potent as a greenhouse
gas than carbon dioxide."
Indeed, it has been estimated that a standard black refuse bag (750mm x 950mm)
containing 14kg of grass clippings will give off as much greenhouse gas as burning
9,5L of petrol by driving about 100km.
Issued by Chas Everitt International
For further information call
Berry Everitt on
011 801 2500 or visit
www.chaseveritt.com
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27 October 2010, 08:53:39
The Chas Everitt International property group now has an office open in Bloemfontein,
which currently has one of the fastest-growing property markets in the country.
The franchise in the Free State's capital city was recently purchased by the
local BCF Group, which has been serving Bloemfontein consumers for the past
15 years. The diversified companies in the group include BCF Micro Finance,
BCF Cellular, BCF Financial Services, BCF IT Solutions, BCF Properties (Property
Management and Rentals), Blue Line Office Supplies and the local Mama's Chicken
fast food outlet.
Chas Everitt International Bloemfontein will be managed by Willie Coetzer,
who has extensive business and real estate experience in the city and is very
upbeat about its property prospects.
"The market here is flourishing and has already been in positive territory
for the past three months, mostly because of the growing appreciation of its
convenient location," he says.
"Bloemfontein is a centralised city, close to other major cities by air
and on a crossroads leading to five other provinces and Lesotho. It serves a
large geographical area and has good schools, tertiary education institutions,
hospitals and medical facilities, retirement options and retail centres. This
combined with a friendly, more laid-back life style is attracting executives
and families from other cities."
The northern suburbs of the city such as Dan Pienaar, Pentagon Park and Heuwelsig,
as well as western suburbs such as Universitas and Langenhovenpark have become
sought-after places to live, Coetzer says, and the newly established Woodland
Hills Wildlife Estate, which also offers a retirement and medical facilitation
centre, is also in demand.
"The focus among buyers is currently on properties for their own use,
and this is contributing to a shortage of rental properties in the city, which
means opportunities for developers. Commercial properties are also scarce and
expensive."
Chas Everitt's International director of franchising Barry Davies says the
Bloemfontein office is geared up to capitalise on all these opportunities, thanks
to BCF's strong business foundation in the city and Coetzer's experience, and
that he is confident the new franchise has a bright future.
Issued by Chas Everitt International
For further information call
Barry Davies on
011 801 2500 or visit
www.chaseveritt.com
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22 October 2010, 08:13:15
Estate agency Aida Polokwane has scooped a prestigious Diamond Arrow award
for its efforts to promote economic growth and development in Limpopo over the
past 12 months.
The award, presented by the Professional Management Review magazine (PMR),
was made following a survey in which thousands of corporate and public service
respondents were asked to nominate and then rate companies for their development
contributions, as well as their managerial capabilities and corporate governance
procedures.
With a rating of 4,2 out of a possible 5, Aida Polokwane was the top-scoring
real estate company in the business section of the survey, and franchise owner
Anton Hanekom says the agency is honoured to join the select ranks of prominent
local undertakings that have received diamond arrows. The agency has previously
won several PMR gold arrows.
“The PMR award is a stamp of approval that a company is run on sound business
principles and also covers external aspects such as service delivery, professionalism
and community involvement. It underlines our office credo that service and integrity
are not negotiable.”
He also says the award will bolster Aida Polokwane’s already strong market
share. “Aida has become a household name in this city and we do our utmost
to honour the confidence placed in us. This award will further motivate our
highly trained and professional staff to keep delivering the best property service
in Limpopo.”
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01 October 2010, 08:03:50
The fact that RE/MAX of Southern Africa reported increased sales figures through
the World Cup period and the winter months proves that South Africa's property
market conditions have already seen vast improvement.
This according to Adrian Goslett, CEO of RE/MAX of Southern Africa, who notes
that traditionally property sales decrease by between 20% and 30% during the
winter months.
"The first seven months of the year exceeded our expectations," says
Goslett. "While we had anticipated a slow and marginal recovery for the
first half of 2010, the market seems to have improved far quicker than anyone
anticipated. This is evidenced by the fact that our sales increased during the
winter months by between 30% and 40%, compared to the same period in 2009. This
goes against the norm as typically fewer sales are made during winter."
He says that the group's total sales from January 2010 to August 2010 are up
42% on the same period last year, with Gauteng and KwaZulu-Natal the top achievers.
Gauteng's sales were up 73% on the same period last year, while KwaZulu-Natal's
sales figures indicated a 26% increase on the January to August 2009 figures.
The Eastern Cape saw a small decline of -3% on their sales results with the
Western Cape showing a more moderate growth of 17% on last year.
In addition, 22 new franchise sales have taken place to date, with over 350
new agents joining the brand and 45 agents renewing their relationship with
RE/MAX of Southern Africa so far this year. In addition, Goslett notes that
RE/MAX of Southern Africa ranked first out of the 93 regions around the world
where the RE/MAX brand is represented in terms of agent growth during May and
June this year.
While there are a number of factors behind the continued growth of the RE/MAX
of Southern Africa brand, Goslett mainly attributes it to the Brian Buffini
training, available exclusively to RE/MAX agents. He says that aside from attracting
top agent talent to RE/MAX, the Brian Buffini 100 days to Greatness programme
has improved agent productivity by over 40% as it empowers agents and teaches
them the value of building and maintaining relationships.
The new and improved website has also added to the success, with its reach
up by 32% and the time each visitor spends on the site up by 70%. Goslett also
reports that over R100-million of sales has been undertaken by the group's assisted
sales department which handles all its distressed property sales around the
country. The department is currently receiving over 250 leads per month, and
it is expected that this number will grow substantially over the coming months
as more financial institutions bring their distressed properties to the market.
"With the recent drop in interest rates and the wide range of value-for-money
properties currently available on the market, we expect to continue achieving
solid results for the remainder of the year," Goslett concludes.
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01 October 2010, 08:03:33
Asrin Property Developers are now offering buyers a total package deal at their
Somerset Country Estate (in the Heritage Park security precinct at Somerset
west) which, says Asrin’s director, Shiraaz Hassan, represents “one
of the best offers in the entire Helderberg Basin today”. There is, he
said, nothing comparable to it within 40 kilometres.
The estate, one of the largest in the area, covers a full 19,2ha but when the
206 units to be built on it are complete only 54% of the area will have been
developed – the remainder will be public open space including two detention
ponds which are home to a prolific bird population. All open spaces are generously
landscaped.
“With only 10,56 units per hectare, this development will retain its country
ambience and atmosphere in perpetuity,” said Hassan. “For many of
our buyers this is a very attractive reason for buying here.”
When Somerset Country Estate was launched by Asrin in 2008, they sold the plots
and left the owners free to build their homes subject to clearly defined guidelines,
which have ensured that all homes conform to a recognised style and harmonise
with each other.
Now, however, Asrin have undertaken to do the construction work as well and,
as indicated, to give buyers a one-off turnkey deal.
“This,” says Hassan, “has three major advantages. Firstly, it
keeps the price down – on the current price list we can offer three bedroom
homes and a double garage with built areas of approximately 146m² to 350m²,
priced from R989 000 to R1,26 million. These prices include upmarket finishes
as well as VAT and transfer costs.
“Secondly, it means that the buyer does not pay interim interest payments
on the bond until he actually takes transfer of the completed unit – he
does not have to start paying early for the erf.
“Thirdly, and this is significant, the buyer can, in consultation with
Asrin, design the home and specify its finishes exactly to his taste and needs
– only the sizes, the facades and the roof exteriors have to be in accordance
with the guidelines. This, too, means that he can tailor his home to his budget,
cutting back here and there if costs rise.”
Asrin, said Hassan, is aiming its marketing campaign at the owner-occupier.
However, recent surveys confirm that buy to rent investors are securing between
R8 000 to R9 000 per month in rentals – on three bedroom homes.
Jan De Villiers, Asrin’s resident sales agent (he is CEO of Remax’s
Gordon’s Bay franchise), said that after 2½ years of living at Somerset
Country Estate, he can recommend it with total sincerity.
“I’d like to say it is the best kept residential secret in the Cape,”
he said. “Particularly reassuring is the fact that the estate enjoys “double
security”.
“The outer ring security is provided by the Heritage Park security team,
the inner ring by our own electrified security fencing, manned entrances and
patrol guards. Crime has been almost eliminated from the area.”
Discussing their pricing on the package deal, Sophia Vorster of Devpro, who
works with Asrin, said that similar homes nearby in Heritage Park are selling
at R1,7 and R1,8 million.
Among those buying in here, she added, are the parents of Stellenbosch University
students who have realised that they can get a complete home here for the same
price as a bachelor flat in the university town – and who welcome the higher
level of security.
All four major SA Banks, she added, are prepared to advance loans for homes
at Somerset Country Estate to creditworthy bond applicants.
Hassan said that 43 homes have been built at Somerset Country Estate so far,
a further eight are in the pipeline and the new offer will probably net another
20 sales before the year end.
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23 September 2010, 08:42:28
With no end in sight to the demand for rental property on both short and long-term
leases, premier real estate group Aida has just launched a new electronic rental
property management solution to ensure excellent service for both landlords and
tenants.
“From student flats to family homes and from bush lodges to beachfront
cottages, if they’re let to tenants they all need managing,” says
Aida CEO Young Carr, “and many of our offices across the country already
have large portfolios of rental properties.
“Now our new rental management platform will make it easier for them to
keep track of all the details of each property and the actions required to deliver
consistently excellent service to landlords and their tenants.”
He says the launch of the system is in line with Aida’s policy of continuously
adding value to its franchise and service offering without ever detracting from
the essence that has made Aida a trusted and respected household name.
“In this respect, what we try to do is identify systems that will assist
our existing franchisees to improve their service offerings and that will also
attract new franchisees so that we can reach more clients. And we now already
have some offices that are purely concentrating on rental property management,
thanks to the new system.”
Carr says the demand for rental property is set to keep growing for two reasons:
the stringent credit control measures that restrict access to the home loan
finance that would enable tenants to become owners, and the increasing mobility
of skilled employees, who need to be able to move quickly from place to place
as they take up new contracts.
“And that means that there will be an increasing number of landlords who
need help to manage their rental properties and maximise the returns on their
investments. Our aim is to provide that help, in an efficient and entirely professional
manner.”
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17 September 2010, 08:05:09
Spire Property Management has officially opened their Johannesburg regional
office, completing their national footprint within South Africa.
Spire previously operated a successful office in Johannesburg managing Paramount
Property Fund’s Gauteng properties until the sale of Paramount to Growthpoint
in 2007. Now, as a direct result of increased business on a national level,
Spire has made the decision to re-establish an office within the Gauteng region.
“This is an exciting area that promises continued growth for the organisation,”
says Marc Edwards, Managing Director of Spire Property Management.
“Charles Morris has been appointed as the Regional Manager for the Johannesburg
office and we are more than confident that he will maintain Spire’s good
name and proven track record. Charles was responsible for Spire’s operations
in Johannesburg previously and so has an in-depth understanding and knowledge
of the industry and the clients.”
“We have seen our portfolio grow significantly in the past 12 months, mainly
through word of mouth, despite the recession which has seen a number of firms
struggle. We have placed targets on our property managers to control their operational
expenditure and have encouraged them to nurse the income side of the building
during these difficult times whilst constantly looking for additional income
earning opportunities to add value to our clients’ properties. This approach
seems to have paid dividends and reduced the pressure which potentially could
have been felt by our clients.”
In addition to the above, Spire has focused on adhering to green property management
principles throughout their national portfolio. "By focussing on reducing
the energy consumption of the property and reducing its waste we are able to
increase the value of the owners investment through a reduction in cost whilst
at the same time treading lightly on the planet which the entire industry needs
to do given that buildings account for approximately 30% of green house gas
emissions worldwide,” says Charles Morris.
Edwards and Morris concur that Spire is looking forward to growing the companies’
new regional branch and to its ongoing success in the future.
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17 September 2010, 08:03:45
One of the strong points in favour of the Western Cape Institute of Estate
Agents Property Placements service – which finds employment in the property
sector for suitable people – is that the manager of the service, Kim Ashton,
as a result of working with most Cape estate agencies, has a very real understanding
of their different cultures – and is able to match applicants to the companies
that will suit them best.
“The cultures of the various estate agencies are so different that it
can be disastrous to place a certain person with a certain company – whereas
he or she will “fit” comfortably and perform well in another company,”
said Ashton.
The good news for job seekers, she said, is that estate agencies are hiring
again.
Although some of the packages offered are attractive, the biggest challenge
she faces, she said, is to persuade more employers to offer a variety of employment
contracts – from a straight salary through to a retainer plus commission
or a commission only package (which may or may not be accompanied by an initial
advance against earnings).
Many of those coming to Prop Placements, Ashton added, are already working
in the property sector but want to improve their prospects and earnings. Thirty-nine
people have been placed so far this year – five in the last fortnight –
and a further 70 vacancies throughout the Western Cape are still needing to
be filled.
Ashton reminded employers that if they want to attract good staff they have
to build up a reputation for being generous and staff-orientated.
“The best employees,” she said, “will always look for a work
environment where they are respected for what they are and rewarded adequately
for what they achieve.
“In good companies, the staff themselves will recruit for the employer
because, believing in and enjoying what they do, they will encourage others
to join them.
“Recruitment agencies,” she said, “know that it is impossible
for all positions to be filled by the right people and there may even be some
positions for which it is very difficult to find anyone at all. However, the
more employers work with recruiting agencies, the better their chances of success.”
Those wanting what she describes as “a personalised recruitment and placement
package” to meet staff requirements can email Kim Ashton on kim@propertyplacements.co.za.
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16 September 2010, 16:23:33
  Top-performing agents and independent estate agency principals are taking to the new Chas Everitt Notebook licensing concept like ducks to water, and the company has signed up a total of 17 operators in just six months.
The latest licences issued cover areas as diverse as Hilton in KZN, Bethlehem and Clarens in the Free State and Mayfair and Heidelberg in Gauteng, says Barry Davies, the group’s director of licensing. “And there are also many different reasons for agents to consider a Notebook operation – some of which we had not previously considered.”
One interesting motivation comes from Amy Bharoochi, the Notebook licensee for Johannesburg’s Mayfair area. Previously an agent with another real estate company, and also the mother of four, she says the search for more flexibility in her life was what made her choose Notebook.
“It is very hard to achieve balance in your life when you are trying to perform at your best in a corporate environment and still find quality time for your family. There is constant stress. But with Notebook, I don’t have that. And it’s not that I’m working less, it’s just that I can pick my hours, and that I don’t have to answer to a boss or a partner.
“In addition, Notebook is very affordable compared to a normal franchise system, and I get to keep much more of any commission I earn, which takes the pressure off even more and means I can really focus on my clients’ needs.”
George Page, the new Notebook operator in Clarens, also talks about affordability as a major motivator. “Clarens is a tiny village, and it just did not make sense to me to go the traditional franchise route. The market here is too small to justify the kind of fees and royalties now being charged by the big real estate companies.
“On the other hand, I knew I had to be part of a national organisation with a big footprint and strong marketing system so that my property listings could be properly exposed. Almost all our buyers here come from outside Clarens.
“And Notebook was just the perfect solution to this dilemma. It enables me to fly the flag of a major company and market my listings nationally and internationally without having to pay an arm and a leg for the privilege.”
Davies explains that a Notebook licence grants the operator the right to use the Chas Everitt International brand, its systems, websites, marketing material and training within a defined area. “The entry and operational costs are very affordable and further savings can be made because Notebook licence holders do not necessarily have to operate from formal office premises or hire administrative staff, as our state-of-the-art business systems allow them to manage their own transactions.”
For further information about Chas Everitt Notebook, call Barry Davies on 011 801 2500
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13 September 2010, 11:21:51
On a beautiful early spring day the Bloemfontein branch of Chas Everitt International Property Group set aside some time to reach out to their local community. The Bloemfontein based Free State Residential Care Centre annual Spring walk presented this opportunity to care for those far less privileged than most of us. Involved were more than 500 children and young adults from the Lettie Fouche school for the mentally disabled, a group from the Free State Residential Care Centre as well as a group from the Sunflower organisation for children with aids.
The Chas Everitt team arrived early at the tranquill National Botanical Gardens just outside the city and set up a watering point while awaiting the walkers. As the sun became hotter everything was ready for the hundreds of walkers to reach their halfway mark – the Chas Everitt gazebo with 600 bottles of prepared water and fresh slices of orange.
 They arrived in different groups – some really exhausted – and were so thankful for the halfway refreshments. Some asked for extra water and more slices of orange and the Chas agents gladly helped each and everyone.
Everybody from the Chas team expressed the fact that this little bit of care was more than worthwhile after seeing and experiencing the joy and enthusiasm of these young people with disabilities.
According to branch manager, Willie Coetzer, this outreach will become a regular event in the ChasCare program of the Bloemfontein office of Chas Everitt International
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13 September 2010, 10:15:02
Real estate group Harcourts Africa has announced the appointment of financial
services expert Richard Gray as its new CEO, effective 1 September 2010.
He replaces Martin Schultheiss, who has overseen the restructuring of the group
over the past two years.
Gray brings to the group extensive experience in IT, project management, corporate
operations and financial services provision, with his previous position having
been CEO of mortgage originator Bond Choice.
After obtaining an honours degree in accounting and computer science in 1988,
Gray completed national service and worked as a software developer for Eskom
before being recruited by software giant Oracle to work on projects in the US
for multinational companies such as Kelloggs.
When he returned to SA in 1997, he joined NBS (the old Natal Building Society)
as manager of its homeloans IT division - and became head of IT and operations
at brand new originator Bond Choice following the management buyout of the NBS
homeloans division in 2002.
As Bond Choice grew and expanded, he moved on to become head of operations
in the coastal sales and aggregation division for two years, during which time
his potential as a new leader in the real estate industry was recognised with
a 2007 Young Lion award from the Property Association.
A year later, he was appointed CEO of Bond Choice and this year he was the
recipient of the Bond Choice chairman’s award.
Of his decision to join Harcourts, Gray says: “I was offered this exciting
position by the Harcourts Board, and felt it was too good an opportunity to
pass by. I have always been interested in a career in real estate, and the dynamic
nature of Harcourts, along with its strong growth over the past year, was an
attractive proposition.”
The keys to the group’s prospects, he believes, are the strong brand,
industry-leading value proposition, talented people and the benefits of being
part of a powerful international real estate group. “Over the past 18 months,
Harcourts has completed a tough journey with many changes. It is now positioned
to grow off a strong financial base, and reach its full potential,” he
says.
As for the current state of the real estate market, Gray expects the next 12
months to still be “tough”, but says the improvement year-on-year
is very encouraging even now. “There is definitely more activity in the
market and interest in buying and selling houses has increased. Securing finance
for buyers remains the biggest hurdle to recovery.”
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10 September 2010, 08:35:21
A survey by TNS Research Survey has confirmed what both he and his chairman,
Bill Rawson, have been saying for a year or more now, says Tony Clarke, Managing
Director of Rawson Properties: that the recession has reinforced property buyers’
confidence in the big national brands and led to their being wary of smaller
brands, particularly if they are new on the market.
“The TNS survey showed that this is true in almost all sectors, not just
in property, but as Ivan Neethling, Chairman of the Western Cape Institute of
Estate Agents, and other speakers made clear that the Institute’s recent
AGM, the appeal of big brands is especially noticeable in the residential property
market,” said Clarke.
Clarke said that while buyers will go to any agency which has a house that
seems promising, sellers in the past two years have gravitated to the big names.
They, he says, are thought to be advertising the properties more thoroughly
as well as making use of sophisticated IT marketing services and referral networks.
The big property marketing brands, added Clarke, have also proved increasingly
attractive to potential franchisees, many of whom have now applied to become
part of bigger groups.
“Here,” said Clarke, “there are two definite categories of property
franchisor: the first offers franchises as an extra to the existing operation,
which is probably branch orientated. The second is entirely made up of franchises.
Needless to say it is the latter that nine out of ten potential franchisees
favour.”
The Rawson Group is this year plans to increase the number of new franchisees
countrywide by 90, especially targeting Gauteng and KZN.
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10 September 2010, 08:35:04
Speaking to a group of property developers from out of town, Anton du Plessis,
CEO of Vineyard Estates, listed five do and don’t guidelines to be kept
in mind when appointing an agent.
These, he said, are:
1. Unless you are absolutely convinced of his/her merits, do not appoint a
person who is “just an acquaintance”, for example, your wife’s
book club member or someone whom you met at parent teacher gatherings. Do not
lose sight of the fact that any sale of fixed property is a business transaction
– you need a business oriented professional handling it.
2. Ask yourself, is the agent likely to be able to relate to the type of buyer
who will be suitable for your property. There is no point in getting an agent
well past retirement age to sell a trendy penthouse in a modern block, but such
an agent may be the perfect choice for a house in a retirement village.
3. Check that your agent works more or less full time in your area and is focused
on it. In this tight market, the agent should not be selling property as a “hobby”.
In particular, the agent must have in-depth knowledge of the suburb in order
to convince buyers of the value of your property.
4. Check that the agent has been successful. Ask him to produce in writing
a list of the homes he has sold in the last six months – with data on his
valuation and the amount achieved. Ask permission to contact his previous clients.
If the agent has not sold at least one home per month on average, he is probably
not a top performer – though the rate of sale in the higher brackets is
always slower.
5. Ask what other properties he is selling in the area. If he has many, query
how much time he will give to your property. A big stock list is not proof of
success – it may in fact be a reason not to appoint someone. See if the
agent is able to tell give fundamental but vital information about the size
of the erf and the size of the dwelling.
“In my opinion, no agent can handle more than ten properties at one time
with real efficiency,” says du Plessis, “If they take on large numbers,
they are likely to delegate important work to less qualified assistants.”
6. Follow your instincts – do you feel you can trust this agent? Do you
feel you could accept his word on all occasions? Do you feel that the agent
will place your interests above their own? Bear in mind that in many cases,
your decision on accepting an offer is based on feedback/guidance provided by
your agent.
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07 September 2010, 08:19:09
The Chas Everitt International flag is now flying high at The Clarens Golf & Trout Estate, close to the picturesque village known as the Jewel of the Free State, thanks to the decision of a local property expert to purchase a Notebook® licence.
George Page, who was involved in the development of the estate at an early stage, is a veteran of the property industry who decided to settle in Clarens and focus exclusively on the sale of homes in the estate and in the village itself
And he has, he says, been looking for some time for a franchise or other offering that would enable this niche business to tap into an existing national and international branding and marketing infrastructure without necessarily incurring all the costs usually associated with becoming part of a major franchise group.
“The Clarens market is just too small to justify the usual franchise fees and royalties,” he notes, “but I realised at once that the Notebook licensing model offered by Chas Everitt was ideal for my needs. Specially designed for specialist agents and independent principals like myself who operate in single suburbs, small towns or rural areas where the sales volumes do not justify the costs of a full franchise, it enables me to use the high profile brand in my specific license area and at the same time gives me access to the group’s awesome marketing infrastructure.
“What this means in my case is that I can now easily market the exceptional properties at The Clarens to the whole of South Africa and the world.”
Purchase options in the estate include lodges, villas and residential stands overlooking the golf course, and ownership includes golf club membership. Home prices range from around R1,8m to R7m and there are currently some two-bedroom, fully-furnished villas available for less than R2m.
Set against a backdrop of the spectacular sandstone mountains for which Clarens is renowned, the estate features a superb par-71 golf course designed and constructed by Golf Data that meanders along and across a tranquil river and a series of dams and cascading waterfalls.
It also boasts some of the best trout-fishing spots in the country, due to the inflow of icy streams from the surrounding mountains that keep the water at the low temperatures that encourage trout activity and ensure great sport for avid anglers.
The nearby village of Clarens is also renowned for its art galleries and craft shops and in the autumn especially attracts many artists, photographers and nature lovers looking to capture the beauty of the local scenery. It is also an increasingly popular weekend getaway for jaded city dwellers who want to experience outdoor activities such as horse riding, river rafting, mountaineering and hiking.
Issued by Chas Everitt
Contact George Page on 082 896 2747
www.chaseveritt.co.za
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03 September 2010, 08:38:49
With successful launches attended by over 300 delegates in Gauteng and Cape Town now behind them, the marketing team of Stilus (Sectional Title Insurance Levy Security) policy will this week focus on promoting the new insurance policy throughout KwaZulu-Natal. A launch function has been arranged from 8:30am to 12:00 noon at the Blue Waters Hotel, 175 Snell Parade, North Beach, Durban on the morning of Tuesday 7th September. All insurance brokers, managing agents and trustees are invited to attend the function. Details can be obtained from Vicky Vermaak at vicky@stilus.co.za.
In addition to the Stilus presentation Barbara Schingler of the National Association of Managing Agents will discuss matters of interest to the sectional title industry and will be followed by Tertius Maree a member of the Stilus “team” and one of the recognised experts in South Africa on the Sectional Titles Act.
Charles Coetzee, the Chief Executive of Stilus said, “The sectional title industry is now being given the long-awaited relief and breakthrough on the financial front which has been needed for a decade or more.”
The Stilus policy, which is underwritten by Santam, he said, is tailored to assist those sectional title bodies corporate whose members have fallen behind on their levy payments. Once the policy has been implemented, immediate catch-up funding is provided to bodies corporate to cover shortfalls in their levies. Once the policy is implemented, immediate catch-up funding is provided to the body corporate to cover shortfalls in their levies. Using Coetzee’s experience, acquired over many years in sectional title management, Stilus then undertakes to collect the arrear levies from the defaulting members – at no cost to the body corporate. The body corporate is, however, the insured body and is responsible for paying the Stilus premium, the cost of which when apportioned amounts to approximately R10 per month per unit – less than the cost of a cappuccino! – in return for which the body corporate trustees can now have complete peace of mind on financial matters.
Coetzee said, “Stilus is revolutionary in that, unlike most other sectional title “rescue” packages, it is not a loan to the body corporate and it places few obligations on them. The premium is almost ludicrously small considering the immense benefits derived by the body corporate.”
This, he added, has been a big surprise to the sectional title industry which had expected far higher Stilus premiums.
Michael Garvin, Marketing Director of Stilus, said that illiquidity has been the curse of the South African sectional title bodies corporate.
“All too often, schemes, which when launched were perfectly satisfactory, are allowed by inexperienced trustees of bodies corporate, and in some cases inefficient managing agents, to fall behind on levy collection and consequently property maintenance and municipal services payments. This very rapidly results in the properties losing their attractive appearance and intrinsic value and in some cases the downward spiral eventually results in substantial losses to all parties concerned.
“There are,” said Garvin, “some 60 000 sectional title schemes in South Africa comprising 800 000 units which provide accommodation for over 3,5 million people. This is the fastest growing sector of the South African residential market. Experience has shown that if body corporate schemes are properly administrated and managed they can appreciate faster than other types of residential accommodation, but if they are neglected they also lose value faster.”
“Stilus,” said Coetzee, “has the potential to remedy the “very unhealthy” sectional title problems that are now rife throughout South Africa. We estimate that over 30% of sectional title schemes are behind on payments – but the initial response to Stilus has been so good that we now expect to be serving 3 000 schemes by the end of the first year of operation and to increase this exponentially year by year.”
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03 September 2010, 08:31:52
Landelike Magaliesburg gaan na verwagting voordeel behaal uit verskeie woonontwikkelings
wat gebou gaan word sodra dienste by die boupersele voltooi is.
Die klein dorpie, gerieflik geleë tussen Randfontein en die vinnig-groeiende
Rustenburg, gaan waarskynlik kopers lok wat in Rustenburg en omgewing werk maar
vanaf Randfontein pendel weens behuisingstekorte, sê Sienie van der Merwe,
eienaar van die Aida Magaliesburg-kantoor.
“Die beplande woonontwikkelings sal ‘n welkome hupstoot gee aan die
plaaslike eiendomsmark wat nou onder druk is weens onsekerheid oor talle staatskontrakte
om landbougrond rondom die dorpie vir grondhervorming te bekom.
“Verskeie kontrakte is die afgelope 18 maande met die staat gesluit, maar
die proses hang nou in die weegskaal. Gebrek aan fondse om die grondeienaars
te betaal is as die rede aangevoer en talle eienaars is nou onseker oor hulle
toekoms. Kontrakte vir grond van meer as 2000 hektaar in die Magaliesburg-gebied
is onderteken,” sê sy.
Die bou van sewe nuwe ontwikkelings gaan egter sowat 200 wooneenhede in die
klein dorpie, wat nou minder as 20 voltitelhuise bied, beskikbaar stel. Nuwe
eenhede gaan trosbehuising sowel as voltitel-eenhede insluit, sê Van der
Merwe. Dienste soos water, elektrisiteit en riool word nou aangebring.
“Eenhede gaan na verwagting in die loop van volgende jaar voltooi word
en ons verwag gesonde vraag.
“Dit sal nie net ‘n voordelige woonplek wees vir pendelaars wat by
die myne en verwante bedrwywe naby Rustenburg werk nie, maar Magaliesburg lok
ook talle naweekbesoekers danksy die rustige landelike atmosfeer – en ons
verwag dus dat eenhede gaan ook byval vind onder leefstylkopers.”
Die dorp se toerismebedryf het ook ‘n stewige hupstoot gekry deurdat die
Portuguese sokkerspan tydens die Wêreldbeker daar gewoon het, sê
sy. “Verskeie hotelle in die omgewing gaan waarskynlik groot voordeel uit
dié blootstelling kry.”
Plaaslike handelsondernemings maak ook gereed vir die verwagte invloei van
nuwe inwoners en ‘n plaaslike supermark is reeds besig om die winkel op
te knap en uit te brei.
Magaliesburg is sowat 15 minute se ry vanaf Randfontein en sowat 30 minute
vanaf Rustenburg geleë.
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02 September 2010, 09:25:44
I t’s hot, it’s hip and it’s the most ‘happening’ place in the Western Cape to live right now, boasting a heady combination of magnificent beaches, awesome views and the integrated urban lifestyle sought after by today’s up-and-coming executives and professionals.
In addition, the Blouberg area along the Cape’s Western Seaboard is rapidly becoming one of the country’s top seaside playgrounds for both local and foreign holidaymakers, says Deon Lessing, new owner of the local Chas Everitt International franchise.
Formerly the marketing director of mortgage origination company Betterbond, Lessing has extensive experience in real estate but admits to a special interest in Blouberg, which he says is “rapidly gaining a reputation as one of the best beachfront destinations.
“It is already a hot residential choice for Cape Town’s ‘beautiful people’ – young executives and professionals who appreciate the chance to live a film-star lifestyle, for much less than in other upmarket locations. Here they can have it all – long white beaches on the doorstep, trendy restaurants and cafés all along the shoreline, premier shopping venues within easy reach and best of all, designer apartments and penthouses boasting world-class views at comparatively low prices.
“This has made it one of the fastest-growing areas in SA over the past few years, and now it is also becoming a favourite destination for an increasingly cosmopolitan crowd of beach tourists. Blouberg is rated one of the top kitesurfing beaches in the world, and other popular leisure activities here include whale and dolphin watching, shark diving, cycling, canoeing and sailing.
“And for those who prefer a more leisurely holiday, there are several excellent golf courses in the area and plenty of places along the seafront where one can take in the spectacular views of Table Mountain, Robben Island and the Cape Town skyline while sipping a sundowner.”
Indeed, says Lessing, there is a constant demand for holiday rentals and sustained interest among developers as a result, with many new projects now coming on stream in Bloubergrant and around Big Bay. “The long-term rental market is also extremely busy. There is a large contingent of foreign residents, and apartments and houses renting for between R3500 and R7000pm are in high demand, while beachfront apartments and penthouses attract tenants at rentals right up to R25 000pm.
“This makes Blouberg a choice area for local buy-to-let investors as well as the increasing number of SA expats keen to buy properties ‘back home’, which they see as likely to increase in value faster than those in the UK, Europe and many other parts of the world that were hard-hit by the recession.”
Prices in Blouberg, which includes the suburbs of Bloubergrant, Bloubergrise, West Beach, Bloubergsands, Blouberg proper and Blouberstrand, start at around R500 000 for a one-bedroom apartment inland, and range between R900 000 (bachelor’s) and R2,5m (two-bedroom) for a high-rise apartment with views on the beachfront.
A three-bedroom townhouse close to the beach with two bathrooms, double garaging and a private garden can be had for around R1,8m Three-bedroom, two-bath apartments start at around R2,1m and there are brand-new, palatial penthouses in beachfront blocks available for around R20m.
In the Big Bay estates, there are stands available for around R2,2m for those who would like to build their own homes.
Issued by Chas Everitt International
For further information call
Deon Lessing on
082 800 9153 or visit
www.everitt-westernseaboard.co.za
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30 August 2010, 11:06:33
The Chas Everitt International property group now has an office open in Bloemfontein,
which currently has one of the fastest-growing property markets in the country.
The franchise in the Free State’s capital city was recently purchased
by the local BCF Group, which has been serving Bloemfontein consumers for the
past 15 years. The diversified companies in the group include BCF Micro Finance,
BCF Cellular, BCF Financial Services, BCF IT Solutions, BCF Properties (Property
Management and Rentals), Blue Line Office Supplies and the local Mama’s
Chicken fast food outlet.
Chas Everitt International Bloemfontein will be managed by Willie Coetzer,
who has extensive business and real estate experience in the city and is very
upbeat about its property prospects.
“The market here is flourishing and has already been in positive territory
for the past three months, mostly because of the growing appreciation of its
convenient location,” he says.
“Bloemfontein is a centralized city, close to other major cities by air
and on a crossroads leading to five other provinces and Lesotho. It serves a
large geographical area and has good schools, tertiary education institutions,
hospitals and medical facilities, retirement options and retail centres. This
combined with a friendly, more laid-back life style is attracting executives
and families from other cities.”
The northern suburbs of the city such as Dan Pienaar, Pentagon Park and Heuwelsig,
as well as the western suburbs such as Universitas and Langenhovenpark have
become sought-after places to live, Coetzer says, and the newly established
Woodland Hills Wildlife Estate, which also offers a retirement and medical facilitation
centre, is also in demand.
“The focus among buyers is currently on properties for their own use,
and this is contributing to a shortage of rental properties in the city, which
means opportunities for developers. Commercial properties are also scarce and
expensive.”
Chas Everitt’s International director of franchising Barry Davies says
the Bloemfontein office is geared up to capitalise on all these opportunities,
thanks to BCF’s strong business foundation in the city and Coetzer’s
experience, and that he is confident the new franchise has a bright future.
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30 August 2010, 11:05:16
When the home loan is granted the normal period that the client will take to repay the bond is 20 years and the prevailing bond rate at that time will apply. The Usury Act permits a bond holder to make payments in addition to the stipulated monthly instalment at any time.
However, should the bond holder wish to pay the full outstanding balance of the loan in one amount prior to the due date (the bond has to be in the books of the bank for 3 years), the following provisions will apply:
The bond holder is required to give the bank 90 days notice in writing of the date the payment will be made.
The notice may not be given before the expiry of a period of 90 days from the date when the loan was registered.
The act clearly stipulates that the bank has the right to have an account on their books for a minimum period of 180 days from inception i.e. 90 days have to lapse after registration of the bond and then 90 days notice, which should be furnished to cancel the bond within the 3 year period.
This allows the bank to recoup some of their origination costs as a result of the potential interest income that will be lost. It takes anything up to 3 years before a loan becomes profitable to the bank.
The early termination fee is not a penalty imposed by the bank, but a recovery of interest income, which is specifically provided for in legislation.
Accounts to which early termination would apply:
When a bond is cancelled within the first 3 years after registration with effect from 1 October 2001.
All home loans with a fixed or capped interest rate agreement.
This allows the bank to recoup some of their origination costs as a result of the potential interest income that will be lost. It takes anything up to 3 years before a loan becomes profitable to the bank.
Process to determine finance charges debited to your home loan account:
90 Days interest is calculated on the outstanding balance at day of notice.
The provisional figure is added to the outstanding balance together with other allowances such as insurance/assurance and admin fees, etc.
On final cancellation, the unexpired portion of 90 days interest will be charged and debited to the bond account, and will be due by the bond holder.
Refund of early termination interest charged:
Should the customer take out a new bond with the bank within 6 months of settling the previous home loan account, the client needs to advise the cancellation department of the new account number.
The refund will not be considered until the new bond is registered.
To avoid early termination – give 90 days notice!
This information may be valuable to investors as they often buy off-plan and sell on once the project is completed, which means they have not paid a single bond repayment and penalty interest will apply. So, take heed of the above information to avoid these costs, or make sure you factor the cost into your new sale price.
Please note: This information may vary from bank to bank and it is recommended that you check the rules with your bond consultant.
Riki Scruton
General Manager
Chas Everitt International Property Group Sandton & Northern Johannesburg
Mobile: +27 (0) 82 558 5086
Tel: +27 (0) 11 463 2033
Fax: +27 (0) 11 463 2036
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19 August 2010, 14:08:06
Paul Henry, the managing director of one of Cape Town’s most prolific
producers of residential units, Rawson Developers (they have completed several
thousand units over the last 15 years), has warned that although there are big
advantages to buying off plan, there is always a danger that the final product
may not be as good as the computer graphics and plans led the buyer to expect.
There is also, said Henry, a danger that the specifications list will be vague
and non-specific, thereby allowing the developer considerable leeway in his
selection of the fittings and fixtures.
Another possible danger, said Henry, is that the contract can be open ended
as regards the time. With bank finance hard to come by and banks insisting on
a high percentage of sales before they advance money, projects can be held up
for long periods before the first work begins on site.
On the other hand, buying off plan enables the buyer, in return for a small
deposit, to get a fixed price related to today’s values and then to watch
it escalate in value for a year or two, during which time no further outlays
are called for.
“Experience has shown that this can be a highly profitable form of investment
– with the huge advantage that the investor is able to gear it. This is
seldom possible with the majority of other investments.”
Asked how a buyer can protect himself agents the dangers and pitfalls mentioned,
Henry said,
“Your only real safeguard is the developer’s reputation. If he has
been in business some time and has a good track record, you can probably be
confident that the final product will be on time and up to standard. If he is
a new name on the scene, with little development experience, it will pay to
have a good lawyer go through the deed of sale, to insist on guarantees and,
above all, to ensure that your deposit goes into a ring-fenced trust.”
Three questions, said Henry, should be put to the clients of all developers.
The first is, “Did the finished product exceed your expectations for a
unit in this price range?”. If the developer is good, the answer will always
be “Yes”.
The second question is, “Has your unit experienced capital growth?”.
That, said Henry, may be a tough proposition in today’s market but many
good developers can even now show significant value growth on their units over
the last year or two – as well as on those due to come on stream in the
next year.
The third question, in many ways the most important, is, “Did the developer
attend conscientiously to the snag list?”.
All too often, said Henry, developers have been hard to contact once a unit
has been transferred. This, he said, is disgraceful behaviour because 70% of
units will require some post-handover attention.
Henry added that, although some very big projects have been highly successful,
he personally would always be wary of any project on which the work is likely
to be ongoing for years and years.
“This type of scenario can lead people to feeling they are living on a
permanent building site. Reasonably small schemes – say, with not more
than 200 units – in good areas, still offer the best and safest investments.”
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19 August 2010, 14:07:23
Rawson Properties will be giving away a fully completed 55m2 two bedroom home
in the Kingfisher precinct of Parklands, some 15km north of Cape Town. This
will be the prize awarded to the winner of a new competition about to be launched
by the popular people’s newspaper, The Daily Voice.
The competition is aimed at aspirant first time homeowners - one of its conditions
being that neither the winner nor any immediate members of his family may already
own a home.
Bill Rawson, Chairman of Rawson Properties, said this week that Independent
Newspapers, owner of The Daily Voice had approached Rawson Properties with the
suggestion that they offer a substantial prize that could make a real difference
to the winner’s life.
“Obviously,” said Rawson, “a complete debt-free home has to
be the perfect answer to this request. Nothing else could be quite as suitable.”
The ancillary benefits to the Rawson group, he added, are likely to be significant
because The Daily Voice’s circulation has now risen to 580,000 - and is
still going up.
“No other Cape newspaper can offer quite so much coverage,” said
Rawson.
Rawson Developers designed, developed and built the home that will be given
away - but, having sold all their homes at Kingfisher, they are buying back
this home from one of their clients to make it available for the competition.
“The home has a current market value of R530,000,” said Rawson, “and
in view of Parklands’ popularity it is likely that with capital appreciation
here, by the end of 2011 the value will be in the region of R600,000.”
Although this is a no frills starter home, added Rawson, it fully maintains
the very satisfactory standards of Parklands developments. It has a tiled roof,
a fully equipped kitchen, fitted carpets in all living and bedroom areas and
built in cupboards in the bedrooms.
Rawson said that he had been impressed by the Independent Newspapers’
marketing skills.
“The Daily Voice will give details of how to go about entering the competition.
What does seem certain is that it will draw many people to this Parklands show
house and quite possibly to others and could boost the area.”
Rawson Developers have in recent years been among the most committed and the
most prolific of all Cape residential developers. They have now completed over
3,000 units. Three new developments, two of which are in Rondebosch - the former
Porter House project (165 units) and the final phase of Rondebosch Oaks (109
units) - have just received Council approval, as has Rawson’s 70 unit Grassy
Park development, called Olive Grove. Another Rondebosch sectional title project,
Rivers Edge, is now 50% sold.
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19 August 2010, 08:42:24
Most property sellers have to drop their asking prices to achieve a sale, a property group said on Tuesday.
"And the average drop is around 12 percent, which means that most sellers are quite seriously out of step with what buyers are actually willing or able to pay," the Chas Everitt International property group said in a statement.
Berry Everitt, CEO said such sellers usually argued that prospective buyers were quite at liberty to make lower offers.
"The fact is that serious buyers will usually not make any offer at all on a home they consider to be overpriced, especially if there are many properties on the market for them to choose from."
Everitt said others would shy away from making a lower offer because they did not want to offend the seller, even if they really liked the property.
"And sellers need to face up to the fact that buyers usually know the market better than they do... sellers may look at a few homes before listing theirs for sale, but buyers have frequently looked at dozens of homes over a few weeks or months by the time they decide to make an offer."
Everitt said if a home was not attracting any interest after a couple of weeks on the market, the seller should consider lowering the price as soon as possible.
"Sellers who do this when the listing is relatively new and the home still fresh in potential buyers' minds stand a good chance of keeping the marketing momentum going."
Those who did not would inevitably end up with an unsold property that was "about as attractive to buyers as last week's bread". - Sapa
Issued by Chas Everitt International
For further information call
Berry Everitt on
011 801 2500 or visit
www.chaseveritt.com
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17 August 2010, 16:34:57
Erik van der Walt (28) from Pretoria won the South African 2010 RE/MAX World Long
Drive Championship. This prestigious event was held on Friday, 23 July at the
beautiful Maritzburg Golf Club in KwaZulu-Natal.
Van der Walt, who has been playing golf since he was six years old, beat 2008
SA champion, Rynardt Combrinck, who came in 2nd with a drive of 352.9 metres,
Ryan Louw, who finished 5th at the World Championships in the USA last year
and came in 3rd with a drive of 339 metres and 2008 runner-up in the USA, Dewald
Gouws, who came in 4th with a drive of 320 metres.
“It was an unbelievable experience to receive the trophy while standing
next to guys like Rynardt Combrinck and Dewald Gouws,” comments van der
Walt, who secured 1st position with a drive of 362 metres.
Van der Walt, who won R30 000 in prize money from RE/MAX of Southern Africa,
will represent South Africa at the RE/MAX Long Drive Championship finals in
Mesquite, Nevada in October 2010.
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13 August 2010, 15:07:11
Your deposit should be carefully arranged if you're a homebuyer purchasing "off plan" - or in advance of your home actually being built - you will most likely have more money issues to deal with than those purchasing a prc-owned property. And the first of these is the matter of the deposit.
It is very important Chas Everitt International property group says, that you do not pay any deposit for a stand or an off-plan home - or sign any agreement to purchase such a home - until you have thoroughly checked the credentials of the developer and/ or home builder and made sure they are well-established operators with a track record of completed and successful developments.
You should also make sure that your deposit is only paid into the trust account of an attorney or a registered estate agent - not the bank account of the developer or builder. There have been far too many cases in recent years of bogus estate agents, builders' agents and construction companies taking deposits for proposed developments and then simply vanishing.
Writing in the Property Signposts newsletter, Berry Everitt says the second thing to consider is the possibility that you may need two separate home loans - one to pay for a stand and the other for the actual structure - if the development is not sectional title. "The second loan is often called a 'building loan' and is used to pay the building contractor in installments known as draws.
These are paid as certain stages of the building work are completed to the satisfaction of the financial institution." "However, you as the buyer will have to sign each draw form authorising the bank to pay. so you can have a large measure of control over the way the work is done. And you should exercise this control by visiting the building site frequently and monitoring the workmanship closely so that any problems can be rectified immediately - and certainly before the builder collects the last draw."
In addition, says Everitt, you should never occupy or sign for the keys to your new home before you've checked it over thoroughly once more, and got the builder to agree in writing to rectify any remaining "snags". "And lastly if you're a VAT-vendor or are buying the property in the name of a VAT-registered enterprise, you should consult your accountant about reclaiming the VAT payable on the purchase of a newly-built home."
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11 August 2010, 09:40:32
Homebuyers are
accustomed to the idea of paying a premium for a property with
a view, like a “house on the hill” or an apartment overlooking the
sea, says Chas
Everitt International Property Group MD, Berry Everitt in the latest
Signpost Newsletter.
But just how much value does a view add? In an area where most homes have views you’ll probably pay a smaller premium to have one than in an area where view homes are scarce. On the other hand, buyers will usually pay an extra premium for a view that is wholly unobstructed by any other homes, power lines or trees.
However, even buyers prepared
to pay extra for a view are unlikely to do so unless the property as a whole
is in good condition and has facilities such as a second bathroom or proper
garaging that warrant the higher price. A small, run-down home with a spectacular
view will for example have limited appeal even to view buyers, because most
of them will be reluctant to spend even more on renovations or additions.
The local buyer profile will also affect the value equation. If most buyers in
an area are looking for homes in which to raise children, but all the view homes
available are tricky to access or have no gardens, those properties may actually
be hard to sell and fail to command any premium at all.
And of course no view can compensate for a neglected area at risk of going into a decline. In fact, it might even become a hindrance, since the view property you paid a premium for will be harder to sell than others if prices in the area start to fall.
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11 August 2010, 09:40:08
‘New applications continue to come through and we have bedded down
a number of new operations in July”, says Barry Davies, Chas Everitt’s
licensing and franchising director.
These include operations in Walkerville and Mayfair in Gauteng, 2 new Free State
Notebooks in Bethlehem and Clarens as well as coverage in Hilton and Pietermaritzburg
in KZN.
Top agent Christiaan Steytler, who is renowned for his years of high-end sales
in Constantia who opened his own Notebook office
with business partner, Shaun King, in McGregor is
a great example of the calibre of applicant the model is attracting.
The Notebook system is specifically designed to accommodate agents and principals who are strong in their local markets and wish to trade for their own account but under a national brand.
The model is largely aimed at small towns and rural areas where traditional
franchise and set-up costs are prohibitive relative to market size, Davies explains.
The Notebook licence grants an operator the right to use the Chas
Everitt International brand, its systems, websites, marketing material
and training within a defined area at an affordable entry and operational cost.
Substantial savings are also made because Notebook licence holders are not required
to operate from formal office premises or hire administrative staff as the group’s
business systems allow them to manage their own transactions.
The latest addition to the growing team, Amina Bharoochi is taking up the reins
in the Mayfair/Crosby areas of Johannesburg and
will be fully operational from 01 September 2010. On joining the team,
Amy had the following to say “I am pleased to be part of the Chas family.
I feel confident in the support available to me. Clearly our goal of success
is one and honouring each other equates to honouring our future success.”
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11 August 2010, 09:39:27
Oddly enough, the last thing most home sellers want
to think about when their property is not attracting offers is price –
even though they themselves may be extremely value conscious when looking at
homes to buy Chas
Everitt International Property Group note in the latest Signpost Newsletter.
This is clearly evident in the latest statistics from First National Bank which
show that 80% of sellers are still having to drop their asking prices in order
to achieve a sale. And the average drop is around 12%, which means that most sellers are
quite seriously out of step with what buyers are actually willing or able to
pay.
Such sellers will
usually argue that prospective buyers are quite at liberty to make lower offers,
but the fact is that serious buyers will usually not make any offer at all on
a home they consider to be overpriced, especially if there are many properties
on the market for them to choose from.
Others will shy away from making a lower offer because they don’t want
to offend the seller, even if they really like the property.
And sellers need to face up to the fact that buyers usually know the market
better than they do. Sellers may look at a few homes before listing theirs for
sale. But buyers have frequently looked at dozens of homes over a few weeks
or months by the time they decide to make an offer - and acquired a finely tuned
idea of value as well as a sense of which way the market is tending.
So if your home is not attracting any interest after a couple of weeks on the
market, you should consult your agent and seriously consider lowering the price
as soon as possible. Sellers who do this when the listing is relatively new
and the home still fresh in potential buyers’ minds stand a good chance
of keeping the marketing momentum going. Those who don’t will, inevitably,
end up with an unsold property that is “stale” – or about
as attractive to buyers as last week’s bread.
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11 August 2010, 09:39:02
NOW more than ever, homeowners need professional help when they decide to sell their properties. In short, says Berry Everitt, CEO of the Chas Everitt International property group, they need agents that really know how to reach potential buyers, have the latest market information at their fingertips and can handle tough negotiations while also maintaining excellent relationships with lenders.
“The first thing to look for when you are choosing an agent to market
your home is someone who is in the real estate industry full-time.It
is difficult, for example, for an agent to give you good advice about an asking
price unless he or she lives and breathes real estate and keeps constant track
of sales in your area.”
Writing in the Chas
Everitt Property Signposts newsletter, he says other traits that make
a top agent are;
Passion, enthusiasm and dedication: You want an agent that will go the extra mile to get the best results, even when the going gets tough.
Market savvy: Knowledge is the key to attracting buyers and achieving consistent sales in a given area – including your property.
Creativity: Your agent should be able to write offers to purchase that excite the buyer as much as you, and to be able to think “out of the box” to reach solutions if negotiations bog down.
Sensitivity and empathy: Tighter lending requirements are a primary concern in today’s market. A good agent will know the right questions to ask buyers about money without offending them, and be able to make suggestions about how you can make the deal more attractive.
Technology savvy: Most home transactions today begin on the Internet. In addition, more and more people are conditioned to receiving information the moment it becomes available. You don’t want to lose a buyer because your agent was slow to put your listing out there.
A team mindset: A good agent will have at least one good assistant and a strong network of other professionals and service providers such as mortgage originators, insurance agents, home inspectors and handymen that you can tap into.
For more information call Berry Everitt on 011-8012500 or visit www.chaseveritt.com
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06 August 2010, 08:13:56
At any given stage, Rawson Auctions will now have 20 or more PIPs (Properties
in Possession) to sell, says the CEO of this new Rawson division, Tanya Jovanovski.
From an early stage,” she said, “we have been able to capitalise
on Rawson Properties’ good relationships with some of the major banks and
have been given a steady stream of residential, commercial and industrial repossessed
properties to auction.”
In current conditions, said Jovanovski, buyers are often able to get these
knocked down to them at 30% below the price they might have obtained at the
peak of the 2007 boom. This, she said, means that buy to rent investors are
currently building up ‘useful’ portfolios on which in many cases their
monthly bond repayments are covered from an early stage.
“We have had a 95% success rate with repossessed properties. We have auctioned
stock in Parklands, Gordons Bay, Kuils River, Athlone, Marina da Gama, Wynberg,
Bellville and Ottery.”
Where a property does not find a buyer, she says, the reason is almost always
that the reserve price was unrealistically high.
“It surprises me,” she said, “how often someone will bring a
property to us for auction when it has stuck on the market for a year or more
because it was unrealistically priced – and then expect us to sell it at
roughly the same price. In some cases, it has to be said, it is the estate agent,
keen to get a mandate, who has given expectations of these unrealistic prices
– as if there has been no downturn and no recession. Fortunately, however,
those advised by Rawson staff have usually had a clearer idea of where prices
are pitched today.”
Jovanovski said that she has now taken on two new consultants, Jason Finch
and Joe Przygonski to represent Rawson Auctions.
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23 July 2010, 15:39:03
South Africa's leading online property search portal, Property Genie, recently
released its National Trends Report for June 2010. The report is a monthly overview
on the latest real estate trends as experienced by Property Genie, which comprises
a database that includes residential properties listed with all South Africa's
leading real estate agencies.
Every month, active homebuyers register to receive property alerts via email
or SMS, which notify them when a new property listing on the site that matches
their criteria. During the month of June, 176 470 property alerts were sent
out to Property Genie's database of 5 723 registered homebuyers for new stock
loaded onto the site and matching their search criteria. In the June report,
RE/MAX of Southern Africa was listed as the top agency to earn the highest number
of alerts, based on new stock loaded onto the site matching homebuyer interest.
Among a wealth of other property related information, the report also listed
the country's 10 hottest suburbs as:
- Claremont - Western Cape
- Bryanston - Gauteng
- Sea Point - Western Cape
- Hout Bay - Western Cape
- Rondebosch - Western Cape
- Cape Town - Western Cape
- Constantia - Western Cape
- Kenilworth - Western Cape
- Plumstead - Western Cape
- Durbanville - Western Cape
Adrian Goslett, CEO of RE/MAX of Southern Africa said the company is very proud
of its Property Genie Top Agency title for the month of June. This comes hot
on the heels of the launch of two new technology innovations for the group's
property listings: its new website and RE/MAX MOBI/LEADS. "We will continue
to employ cutting-edge technology to assist in matching buyers with properties
that suit their individual requirements. That, after all, is the best way to
ensure a successful property transaction," Goslett concludes.
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23 July 2010, 09:28:45
In the residential property sector it is, says Lanice Steward, MD of Anne Porter
Knight Frank, sometimes said that if, you want to see an area with real value
appreciation potential, check out where the foreigners are buying.
“Obviously foreigners buy primarily for lifestyle, views and access to
recreational areas but it is significant that right now Hout Bay is much favoured
by the British and by Europeans, especially Germans.”
The obvious virtues of Hout Bay, says Steward, are its spectacular encircling
mountains, its sweeping kilometre long beach, its busy harbour and yacht berths
and its 50 plus restaurants, bistros and coffee shops – but it has two
other less well known advantages which should influence anyone looking for a
home here.
These, she says, are
the village’s friendly atmosphere.
“With less than 7 000 homes in the valley, the middle class inhabitants
tend to know and care for each other. There is a real welcoming community spirit
there and this is fostered by some very active and alive churches.”
the easy commuting to the city.
“Even at the peak traffic times, 8am to 9am,” says Steward, “it
is always possible to reach and find parking in the city in half an hour and
getting to Camps Bay or Sea Point takes half that time. Compare this to the
1¼ hours that Table View or Parklands residents can spend driving to
work – even when they set out early – and you will realise that Hout
Bay’s coastal road access to the city is, or should be, a big reason for
settling there.”
A further reason, says Steward, is that prices in Hout Bay are still very
competitive.
“If you have the cash and you want to own a mountainside mansion with
180° views you can find many splendid homes priced from R10 to R25 million
– and these give Hout Bay a certain cachet and exclusivity – but there
are many good two or three bedroom family homes priced from R1 to R1,5 million.
Steward said that APKF now has a comprehensive list of homes for sale and to
rent – and, she predicts, by the end of 2011, the valley will have seen
some of the best price appreciation in the whole Greater Cape Town area.
“It has taken time for people to realise how charming and convenient Hout
Bay is – but the message is now going through,” said Steward.
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23 July 2010, 09:27:17
Capitalising on the success of its first multiple properties auction, Rawson Auctions
is organising a breakfast at Kelvin Grove (in Newlands, Cape Town) to introduce
more Capetonians and others possibly not familiar with the auction method of selling
properties to this increasingly popular marketing system.
The function will be at 7:45am on 11th August.
Photographs and details will be on display but the occasion will be treated
as a preview to these properties being auctioned later. The properties will
be both commercial and residential.
While breakfast is served, three top level property personalities will give
talks. Pascal Phelan, chairman of Phelan Holdings and developer of the Cape
Royale Hotel, will talk about the benefits that in his view will be experienced
in the next year or two as a result of SA’s hosting the World Cup. He will
also explain the investment potential offered by the Cape Royale.
Tony Vaughan, publisher of The Property Magazine will be speaking about the
latest property trends and Tanya Jovanovski, CEO of Rawson Auctions, will be
auctioning three pages of advertorial space in the magazine, along with a glittering
dinner for 16 of the successful bidder’s colleagues and guests. (Photographs
of this will be included in the magazine.)
Trevor Weston-Green, Rawson Developers’ planner, strategist and marketer,
will then elaborate on the virtues of the second of Rawson’s new Rondebosch
projects, River’s Edge, which is bringing 84 one and two bedroom apartments
to the market at prices from R769 990. Being in the UCT ‘academic belt’
these are likely to be much in demand for students.
Jovanovski has said that these breakfast functions are highly enjoyable and
informative.
“They have the big advantage of enabling clients, agents, owners and potential
buyers to network and exchange views – which can only benefit us all in
Cape property.”
Bookings for the breakfast, at R120 per head, should be made via Dianna Reid
by email to info@rawsonauctions.com or by telephone on 021 658 7100. There will
be no charge for those wanting to attend without the breakfast option but Rawson
Auctions encourage those coming to book to ensure that they have enough seating
on the morning.
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09 July 2010, 08:33:25
Three difficult decisions face any elderly person contemplating a change of
address and lifestyle for their retirement years, says Heather Cape, Manager
of New Development Sales at Greeff Properties.
The first is when to retire, the second is what retirement village to live
in, if any, and the third is which ownership model to adopt. (The last two choices
are linked because retirement estates usually offer only one model.)
“On the first decision, the problem which becomes more apparent year-by-year
is almost always that people do not get old as fast as they used to and they
often never really retire. They, therefore, delay making the necessary arrangements
until very late.
“Then they find that they have limited options because the waiting lists
of all the popular retirement homes are full.
“The other big decision, choosing the model that suits you best is also
delayed. The options are Life Right, share block, freehold or sectional title.”
Many South Africans, says Cape, are inadequately informed on the merits of
what these different options offer - and, in particular, they do not know how
the Life Right system works.
“The alternatives to Life Right have been fairly thoroughly marketed,”
says Cape, “but Life Right has not had as much publicity. The prejudice
against Life Right is, therefore, almost always based on ignorance of the real
facts.”
The facts, says Cape, are:
Life Right, almost without exception, offers the lowest purchase price in relation
to the product and this price advantage is enhanced by there being no transfer
duty or tax payable, and
Life Right is the most widely used retirement home model worldwide. It is particularly
popular in the USA, where it is referred to as the Life Plan model and in Australia
and New Zealand where it tends to be known as the Licence to Occupy model.
Explaining how Life Right works, Cape says that it does not give the purchaser
ownership of the unit but rather the right to live in it for the remainder of
his or her life - and this right extends to both people in a marriage or partnership.
If the one dies, the other continues to remain in occupation.
Furthermore, when either of the parties dies (or decides to leave the unit)
their heirs or they themselves are paid back on the basis that the capital sum
paid is returned plus 25% of the profit after costs (holding back some of the
profit enables the owner to refurbish the unit).
Cape says that one of the foremost Life Right retirement complexes now on sale
at the Cape is Riverside Gardens, which will be managed by the CPOA.
In this development, says Cape, 57 one and two bedroom units are available
from R799 500.
“I am convinced that this offer represents one of the best buys in the
retirement field ever to become available at the Western Cape,” says Cape.
“Considering that Riverside Gardens will have excellent communal facilities,
including a dining room, a communal living room, a bar with a big screen TV,
a library, a heated swimming pool, a gymnasium and landscaped garden. It offers
excellent value at a low price.”
The upmarket communal facilities, said Cape, have been carefully designed to
“add a further dimension” to the residents’ lives – and
in other villages have led to residents being outgoing, active and ready to
interact with the other residents with whom they find they have something in
common.
“This fact, as well as the greater security of a complex like Riverside
Gardens, should always be borne in mind when the retiree is contemplating a
purchase: the simple truth is that he is not buying a right to live in a unit,
he is buying a lifestyle which will comfort and stimulate him and his partner
in what should be a relaxed and enjoyable phase of their lives.”
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09 July 2010, 08:31:53
Rawson Properties is working to ensure that by 2012 all its agents will be
qualified in compliance with the new National Qualifications Framework level
4 and all its franchise principals in terms of the NQF5 criteria.
Luke van Vuuren, who now heads up all Rawson training, says that in the past
two years 330 Rawson agents have qualified. This year the past is being increased
and an additional 300 agents should reach NQF4 and/or NQF5 levels. (The Rawson
group is in line for 300 SSETA bursaries, half of which will be for the training
of principals to NQF5 level.)
To date, said van Vuuren, the Rawson group has achieved a 90% plus pass rate
in all Services Sector Education and Training examinations.
In addition to the obligatory training without which it will become illegal
to work as an estate agent, Rawson’s, as part of its franchise backup service,
is also providing supplementary skills training.
“While it is true that certain people are naturally good agents, it is
also true that training will make a good agent better and an average agent above
average. From an early stage in this group’s history Bill Rawson has placed
huge emphasis on training, in the belief that it is this that sets the really
good agencies apart from the others,” said van Vuuren.
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09 July 2010, 08:29:46
The Aida Lowveld franchise has spread its wings and now offers its services to
property consumers right across the Mpumalanga lowveld.
The franchise is now operating in the residential and rental markets of Nelspruit,
White River, Sabie, Graskop, Bushbuck Ridge, Sabiepark, Hazyview, Rocky's Drift,
Barberton and Marloth Park, says owner Marelize Schuld.
“Aida’s CEO Young Carr has identified 2010 as the year of courage,
and that was our motivation to further strengthen the Aida brand - which has
served the South African property market for the past 52 years - in the Lowveld
region,” she says.
“And, with agents whose first priority is client service, it is possible
to be courageous in the prevailing market conditions. Our highly trained team
offers combined experience of nearly four decades and our motto is ‘be
the best that you can be’, which translates to the best possible service
for our clients.”
The main office of Aida Lowveld is situated in the town of White River near
the province’s capital of Nelspruit and a modern, coffee-shop approach
will be employed in some of the smaller towns and outlying areas to be more
accessible to property consumers and to give wider exposure to properties for
sale.
Schuld adds that Aida Lowveld will expand its community service, and projects
involving local schools will shortly be launched. “We aim to serve our
clients and the wider community to the best of our ability, and community projects
form part of this commitment, as does our goal of further developing the wonderful
Lowveld area.”
She points to the success of the Hazyview office – one of the smallest
in the Aida group – in Aida’s ongoing blood donation campaign. “That
office has assisted the Nelspruit Blood Bank in having the biggest volume of
blood donated countrywide in the past six months. The same guts, marketing skills
and service orientation characterises our business drive,” she says.
The Lowveld, still a popular tourist destination and the gateway to Mozambique,
offers a wide range of properties with prices ranging from R220 000 in rural
areas to R18m for top properties such as game lodges and trout, nut and game
farms overlooking the scenic Sabie and Komati rivers.
Schuld says that although there are some land claims in certain areas, agricultural
land in the region is still in strong demand.
Issued by Aida National Franchises
Aida head office: 012 682 9600
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01 July 2010, 16:46:32
The Aida Lowveld franchise has spread its wings and now offers its services to
property consumers right across the Mpumalanga lowveld.
The franchise is now operating in the residential and rental markets of Nelspruit,
White River, Sabie, Graskop, Bushbuck Ridge, Sabiepark, Hazyview, Rocky's Drift,
Barberton and Marloth Park, says owner Marelize Schuld.
“Aida’s CEO Young Carr has identified 2010 as the year of courage,
and that was our motivation to further strengthen the Aida brand - which has
served the South African property market for the past 52 years - in the Lowveld
region,” she says.
“And, with agents whose first priority is client service, it is possible
to be courageous in the prevailing market conditions. Our highly trained team
offers combined experience of nearly four decades and our motto is ‘be
the best that you can be’, which translates to the best possible service
for our clients.”
The main office of Aida Lowveld is situated in the town of White River near
the province’s capital of Nelspruit and a modern, coffee-shop approach
will be employed in some of the smaller towns and outlying areas to be more
accessible to property consumers and to give wider exposure to properties for
sale.
Schuld adds that Aida Lowveld will expand its community service, and projects
involving local schools will shortly be launched. “We aim to serve our
clients and the wider community to the best of our ability, and community projects
form part of this commitment, as does our goal of further developing the wonderful
Lowveld area.”
She points to the success of the Hazyview office – one of the smallest
in the Aida group – in Aida’s ongoing blood donation campaign. “That
office has assisted the Nelspruit Blood Bank in having the biggest volume of
blood donated countrywide in the past six months. The same guts, marketing skills
and service orientation characterises our business drive,” she says.
The Lowveld, still a popular tourist destination and the gateway to Mozambique,
offers a wide range of properties with prices ranging from R220 000 in rural
areas to R18m for top properties such as game lodges and trout, nut and game
farms overlooking the scenic Sabie and Komati rivers.
Schuld says that although there are some land claims in certain areas, agricultural
land in the region is still in strong demand.
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24 June 2010, 17:43:06
Both the government and the banks need to understand clearly that if the commercial
property sector is not helped to emerge from its current backwater, it could
take the entire South African economy down to a new low.
This is the view of Tony Clarke, Managing Director of Rawson Properties.
“There has recently,” said Clarke, “been considerable focus
on and media publicity about the residential sector and the latest data does
indicate that it is leading the property world out of the recession. However,
the commercial sector still lags far behind, with high levels of vacancies,
defaulting tenants and regular landlord liquidations.”
Asked what measures he proposes should be adopted to remedy the position, Clarke
said that, as a first step, the banks could look at extending the length of
commercial bonds. At present most are signed for periods of ten years, but bonds
of 15 or 20 years, as in the residential sector, could ease the situation for
hard pressed landlords and could prove more profitable to the banks in the long
term.
On the government side, said Clarke, the SARS tax legislators could look at
giving bigger depreciation allowances and tax write-offs.
They could also study the merits of mortgage insurances to help landlords to
cover bond payment shortfalls if and when their tenants default - as is now
often done in the residential sector.
It is encouraging, said Clarke, that the big private equity property owners
are finding ways of standing by their tenants through the current double-dip
downturn, but smaller landlords frequently do not have the resources to do this
- and more will inevitably go under if not assisted in some way.
“I have been in property long enough to see just how disastrous it can
be for any area when one or more buildings stand vacant and neglected as a result
of tenant and landlord failures,” said Clarke. “We must not let this
happen.
“I do also realise that in difficult situations of this kind calls for
state help are made too easily and too often. However, my concern is that, as
yet, there is very little awareness of just how serious and potentially crippling
the situation in the commercial sector now is.”
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22 June 2010, 09:13:09
 Bellville
estate agency ERA JC Properties walked away with many of the top accolades at
the recent ERA South Africa national awards ceremony.
Agency co-principal Casper Hattingh was named as the national top sales associate
in both the units sold and commission earned categories, having earlier won
the award for the top sales agent in the Cape region.
In addition, the office was named as the top franchise in the Cape region,
which helped it to win the national top franchise award in the commission earned
category. These awards were presented to co-principal Jaco Venter by ERA South
Africa CEO Gerhard Kotzé, who said the company was very proud to recognise
all its sales associates and principals who performed at the industry's highest
level.
"Top performers deserve to be recognised for their innovation, professionalism
and deal-making abilities; this holds especially true in last year's challenging
economic climate. We congratulate all the award winners on their impressive
and outstanding accomplishments."
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11 June 2010, 08:23:30
International real estate group Harcourts has just announced a new joint venture
that will shortly see the launch of its brand in the US.
This follows the news that the group – which is represented in SA by Harcourts
Africa - achieved property sales worth a total of US$20,4-billion in the financial
year to end-March.
Harcourts International, rated one of the top five global real estate brands,
already has more than 630 offices and 4000 sales consultants in nine countries,
including Australia, China, Indonesia, New Zealand and of course South Africa.
And speaking at the Harcourts International 2010 conference this week, MD Mike
Green said the group had just concluded a joint venture agreement with a California-based
real estate group that currently has 23 offices and 700 agents, to give it a
presence in the US.
Expansion into the US would be the next big international step for Harcourts,
he said, “and with the US property market just beginning to show signs
of improvement, we believe the timing is perfect.
“With the training and technology platform Harcourts has to offer, along
with our values-based, performance-driven culture, we believe there is huge
opportunity for this new Harcourts joint venture company to grow rapidly as
the general economic situation in the US improves.”
Meanwhile, he said, Harcourts had seen strong growth across the board in the
past year. “In Australia (www.harcourts.com.au) we achieved considerable
success, increasing sales by 73% in New South Wales, by 52% in Western Australia,
by 49 % in Victoria and by 47% in Tasmania.
“In New Zealand (www.harcourts.co.nz), where we are already the country’s
largest real estate group, we increased our national market share to a record
level, and in South Africa (www.harcourts.co.za), the group grew to more than
140 offices.
“We also achieved solid growth last year in both Indonesia (www.harcourts.co.id)
and China (www.harcourts.com.cn), with expansion in the latter including the
establishment of the first Harcourts office in Hong Kong.”
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11 June 2010, 08:22:48
The JSE Securities Exchange continues to be volatile and quite likely to witness
further drops as a result of the Eurozone/UK financial problems and there is a
possibility of seeing a close below the 25,000 mark on the All Share Index, as
European and USA stock markets continue to fluctuate wildly. Greeff Properties,
says CEO, Mike Greeff, are finding that the relatively greater stability and simplicity
of property is pulling buy-to-rent investors back into this market – and
the fact that there are still many units for sale will keep the prices down for
the time being.
“Currently,” said Greeff, “I estimate that investors rather
than owner-occupiers now make up 2,5% of our sales - and I am sure that this
percentage will increase in the next two years to ±15%. At the peak of
the property boom this figure was as high as 25%.”
The big attraction of property, said Greeff, (“People have been saying
this for centuries”), is that it enables the buyers to see exactly what
they are getting and to have a large measure of control over the investment.
“It goes without saying that this is not the case when you invest in shares,”
said Greeff. “What is more, if you have spare cash you can improve the
property or add to it in many ways to increase its profitability. You can even,
and this has happened quite a lot recently, demolish it and rebuild it, in the
process often doubling its value.”
Asked if he can justify a previous statement that property is on the whole
far more stable than shares, Greeff said that over the last recession very few
Cape precinct homes dropped in value – if they did, it was by only a few
percent.
“In the last 20 years there have, in fact, been only two periods in which
house values fell noticeably and both of these were relatively short lived.”
In the late 1990s inflation was soaring, interest rates rose to 23% and unemployment
reached totally unacceptable levels. Not even property could bear up under economic
conditions of that nature. Similarly, in 2009, after a really spectacular boom,
we also saw a drop mainly in the northern areas of the country, but it did not
last long. There are now already signs that a slow, unspectacular recovery will
take place throughout this year.
“With our economy’s growth rate now predicted to come close to 3%
and with housing very much in short supply throughout the country, the prospects
for good returns on property, particularly in the lower bracket, can only improve
and this, I believe, is the reason why we are seeing more investors coming back
into the market.”
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11 June 2010, 08:01:44
Aida National Franchises’ Pretoria office has once again won the property
group’s top award – while three of its agents scooped the top accolades
as the best-performing agents in the group countrywide.
The office has been named as Aida’s top overall performing franchise,
pipping Aida Goldfields Welkom and Aida North East Executive to the post.
On top of that the office and its agents managed to add 14 additional awards
to their haul at the recent annual Aida awards ceremony. Pretoria won the award
for the top non-residential office; top spot as the metropolitan office that
earned the most commission as well as most units sold; as well as top national
office overall in both categories.
Pretoria agents achieved the singular honour of taking five of the top six
spots in the categories top agent for commission earned and top agent for units
sold. Ina Adams was placed first countrywide in the category commission earned
with colleague Wynand Richter earning third spot.
In the category top agent for units sold, Pretoria agents swept the boards,
taking the three top spots, with Quentin Meyer in first place, Jackie Meyer
in second and Wessel Wessels in third place. Then the three agents were called
to the podium a second time - in the same order - to receive the awards for
top agent overall.
Ewa Schutt joined her colleagues in the limelight when she took second spot
in the category top agent for non-residential sales.
Aida CEO Young Carr, who presented the awards, congratulated the agents for
their sterling performance in what he described as an exceptionally tough year
in the industry. “They have shown true grit and determination in challenging
circumstances – and we are very proud of the achievements of our Pretoria
franchise as a whole,” he said.
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Pretoria agent Quentin Meyer, left, was named as the
Aida’s Top Agent of the year at the group’s recent award ceremony.
His award was presented by Aida CEO Young Carr.
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Aida Pretoria franchisees Piet Joubert, left, and Johan
van der Westhuizen, right, accepted the group’s Top Office accolade
from CEO Young Carr at the recent national awards ceremony.
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Pretoria agent Ina Adams, left, has been named as the
Aida group’s top earning agent for the past year. CEO Young Carr
presented her award for the most commission generated at the group’s
recent award ceremony.
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11 June 2010, 08:00:12
Named after the Ba-Phalaborwa Tribe that started mining metals in the area
hundreds of years ago, Phalaborwa, meaning 'better than the south', is located
in the Limpopo Province on the border of the Kruger National Park and is known
as the 'Gateway to Game and Golf'.
With a range of amenities and many sport and recreation facilities, this town
offers all the modern conveniences. One of these is the famous Hans Merensky
Country Estate and Hotel, which is best known for its notorious golf course
where playing golf among giraffe, impala, warthog and monkey are an everyday
occurrence.
It is here that Glenda Fourie, Broker/Owner of Phalaborwa's RE/MAX Two Summers
office, has some outstanding, top-of-the-range properties for sale. She says
fully furnished lodges that have been designed with two to four bedrooms sell
from around R2,9m all inclusive. She says most of these homes have swimming
pools and overlook the golf course or dams. "Buyers can expect to pay between
R3,6m and R5m for a four-bedroom home within the Hans Merensky Country Estate.
These more expensive homes," says Fourie, "will have four bedrooms,
a boma and an outlook point on the property."
Fourie reports that the biggest movement in the Phalaborwa property market
is properties in the R480 000 to R800 000 price range, while some sell for around
R1,2m. She says that at the lower end of the price range, the properties are
typically old mine houses which are very basic and usually include three bedrooms,
one bathroom and a single garage.
"Properties priced from R800 000 and upwards usually have three or four
bedrooms, one or two bathrooms as well as a lapa and a swimming pool. The stands
are also located in more upmarket areas of Phalaborwa," she says.
Talking about the property market in Phalaborwa overall, Fourie says that so
far this year her office has already concluded three quarters of the amount
of deals concluded for the whole of 2009, a clear indication that the property
market is picking up. However, she says that there is currently a lot of stock
available due to the Sasol plant which closed down. "There are quite a
few old mining houses for sale which are priced between R550 000 and R900 000.
Some of the manager's homes, which are more luxurious, are also on the market,
but are priced up to around R1,8m," she says.
On the market for R4,9m, and is situated virtually next door to the Kruger
National Park. Fourie says it has a modern design and is situated on a large
stand in the new part of town. This four-bedroom home has been designed with
a number of luxury features including a Jacuzzi and a koi pond underneath a
glass walkway at the entrance. Top of the range finishes, staff accommodation
and a flatlett complete the picture.
Another interesting property Fourie has on her books is priced at R4m and is
also situated next to the Kruger Park. This double-storey home has been designed
with three bedrooms, a natural rock pool and koi pond. There is also a two-bedroom
flat which can be used as a home office. "But what makes this home interesting
and unique," says Fourie, "is the fact that it has been built in a
semi-circle shape into the side of a koppie. The rock from this koppie was also
used in the building of this home."
While Fourie reports a definite difference between asking price and the actual
selling price of homes in the Phalaborwa area, she says many of the homes currently
on the market were bought from the mining companies at a relatively cheap price,
meaning owners who are currently selling are making a reasonable profit.
Adrian Goslett, CEO of RE/MAX of Southern Africa, says that unlike Phalaborwa
where a lot of stock has recently been put on the market, there are reports
of stock shortages, particularly for properties priced between R900 000 and
R1,2m in certain areas. "Residential properties in the R1,2m price range
currently sell within six to eight weeks and demand in certain areas outstrips
supply."
FeedBack (0)
11 June 2010, 07:57:28
Named after the Ba-Phalaborwa Tribe that started mining metals in the area
hundreds of years ago, Phalaborwa, meaning 'better than the south', is located
in the Limpopo Province on the border of the Kruger National Park and is known
as the 'Gateway to Game and Golf'.
With a range of amenities and many sport and recreation facilities, this town
offers all the modern conveniences. One of these is the famous Hans Merensky
Country Estate and Hotel, which is best known for its notorious golf course
where playing golf among giraffe, impala, warthog and monkey are an everyday
occurrence.
It is here that Glenda Fourie, Broker/Owner of Phalaborwa's RE/MAX Two Summers
office, has some outstanding, top-of-the-range properties for sale. She says
fully furnished lodges that have been designed with two to four bedrooms sell
from around R2,9m all inclusive. She says most of these homes have swimming
pools and overlook the golf course or dams. "Buyers can expect to pay between
R3,6m and R5m for a four-bedroom home within the Hans Merensky Country Estate.
These more expensive homes," says Fourie, "will have four bedrooms,
a boma and an outlook point on the property."
Fourie reports that the biggest movement in the Phalaborwa property market
is properties in the R480 000 to R800 000 price range, while some sell for around
R1,2m. She says that at the lower end of the price range, the properties are
typically old mine houses which are very basic and usually include three bedrooms,
one bathroom and a single garage.
"Properties priced from R800 000 and upwards usually have three or four
bedrooms, one or two bathrooms as well as a lapa and a swimming pool. The stands
are also located in more upmarket areas of Phalaborwa," she says.
Talking about the property market in Phalaborwa overall, Fourie says that so
far this year her office has already concluded three quarters of the amount
of deals concluded for the whole of 2009, a clear indication that the property
market is picking up. However, she says that there is currently a lot of stock
available due to the Sasol plant which closed down. "There are quite a
few old mining houses for sale which are priced between R550 000 and R900 000.
Some of the manager's homes, which are more luxurious, are also on the market,
but are priced up to around R1,8m," she says.
On the market for R4,9m, and is situated virtually next door to the Kruger
National Park. Fourie says it has a modern design and is situated on a large
stand in the new part of town. This four-bedroom home has been designed with
a number of luxury features including a Jacuzzi and a koi pond underneath a
glass walkway at the entrance. Top of the range finishes, staff accommodation
and a flatlett complete the picture.
Another interesting property Fourie has on her books is priced at R4m and is
also situated next to the Kruger Park. This double-storey home has been designed
with three bedrooms, a natural rock pool and koi pond. There is also a two-bedroom
flat which can be used as a home office. "But what makes this home interesting
and unique," says Fourie, "is the fact that it has been built in a
semi-circle shape into the side of a koppie. The rock from this koppie was also
used in the building of this home."
While Fourie reports a definite difference between asking price and the actual
selling price of homes in the Phalaborwa area, she says many of the homes currently
on the market were bought from the mining companies at a relatively cheap price,
meaning owners who are currently selling are making a reasonable profit.
Adrian Goslett, CEO of RE/MAX of Southern Africa, says that unlike Phalaborwa
where a lot of stock has recently been put on the market, there are reports
of stock shortages, particularly for properties priced between R900 000 and
R1,2m in certain areas. "Residential properties in the R1,2m price range
currently sell within six to eight weeks and demand in certain areas outstrips
supply."
FeedBack (0)
11 June 2010, 07:53:40
Clanwilliam, situated at the foot of the Cederberg mountain range, about 230km
from Cape Town, was largely undiscovered until the N7 from Cape Town to Namibia
was built in the 1960s. As one of the ten oldest towns in South Africa and the
only place in the world where Rooibos tea is planted and cultivated, Clanwilliam
is rich in cultural and historical heritage.
Linda de Boer, Broker/Owner of RE/MAX Blue Waters whose office operates in
the area, reports that, in line with the rest of the country's property market,
there has been a decrease in the volume of sales. "While homes here are
selling at approximately 15% below the asking price, the properties here are
often overpriced to begin with." She says the general demand is from Capetonians
looking for a weekend home, and this has a strong influence on the asking price.
"Sales of second homes and leisure properties have naturally taken a knock
with the recession," says Adrian Goslett, CEO of RE/MAX of Southern Africa.
"However, as Clanwilliam is a popular getaway destination for Capetonians,
coupled with the fact that the property market is well on its way to recovery,
we expect to see a higher turnover in sales in this area as the year progresses,
with the gap between asking prices and actual selling prices decreasing."
De Boer says that an entry-level home in Clanwilliam sells for around R900
000, with mid-level homes selling anywhere between R1,5-million and R2-million.
Buyers can expect to pay in the range of R2,8-million for the area's most expensive
homes.
One such property on the market for R2,8-million is a 4,62-hectare small holding
that offers a luxurious country lifestyle. Only 4km from the popular Clanwilliam
Dam, the spacious thatched roof, Spanish-style home is spread over three levels
and enjoys an excellent position overlooking Clanwilliam.
The ground floor of the home is a two-bedroom flat that has an open plan lounge,
dining and kitchen area along with a covered patio with picturesque views.
The second level of the home has been designed with three bedrooms and three
bathrooms, a lounge, dining room, a TV room and a beautiful kitchen with granite
counter tops. The loft has two rooms, one of which can be used as a study/office.
The second room is spacious with great views from the balcony, and, according
to de Boer, would be ideal as a big family room.
"This property is ideal for those who enjoy entertaining," says de
Boer who points out the lapa in the landscaped garden that overlooks the swimming
pool with a rock water feature.
The home also includes staff accommodation of one bedroom, a kitchen and a
bathroom. Aside from air-conditioning and a fire place, additional features
of this home include the water purification system and the computerised irrigation
system.
"The current owner enjoys the peacefulness, tranquillity and the space,"
says de Boer, "along with the property's nooks and crannies where they
can have a cup of coffee and enjoy the splendid views."
Situated in the centre of various flower and historical routes, Clanwilliam
boasts a breathtaking natural beauty, modern recreational facilities and a range
of activities including water sport, hiking, bird watching, fishing, rock climbing,
mountain biking, 4x4 routes, rock art, bowls and historical trails.
FeedBack (0)
11 June 2010, 07:50:37
Positioned at the end of the popular Garden Route, The Nelson Mandela Metropole,
including Port Elizabeth, Uitenhage and Despatch, is the capital of the sunshine
coast. Located on the south eastern coastline of Africa, Port Elizabeth has
the largest seaport in the Eastern Cape and, as South Africa's fifth largest
and second oldest city, is situated 260 km from Knysna and about 800km from
Cape Town.
Port Elizabeth is a popular residential area mainly due to its moderate year-round
climate and range of amenities. Its property also caters to those buyers who
are looking to downscale into a retirement development. Summer Dunes Retirement
Village, which was launched in April 2005, has become the premier retirement
village in Port Elizabeth, according to David Rodgerson, Broker/Owner of RE/MAX
Bay Properties.
"The village is situated in the up-market suburb of Summerstrand and is
close to the city's main blue flag beaches as well as all major amenities including
the Humewood Golf Club," says Rodgerson. "The up-market homes are
set in well established, landscaped gardens and the village boasts a 5-star
clubhouse complete with a heated swimming-pool. "
This exclusive, 117-unit retirement village development offers relaxed, estate
living and offers buyers a choice of designs from bachelor bedsits to two- or
three- bedroom units.
Summer Dunes is a Life Right scheme which offers buyers the opportunity to
gain capital growth. The life right retirement system is the most popular retirement
property option in the Western world.
"Buying into a life right system means that the buyer purchases a right
to live in a unit until they leave or die. While this is not the same as buying
a sectional title unit in a retirement village, it does not mean that the owner
loses out on his/her original investment," says Adrian Goslett, CEO of
RE/MAX of Southern Africa.
"In fact, the Life Rights System is considered to an option that costs
less," he says.
"On relocation or death, the unit is relinquished back to the development
at the full invested price and in some cases, as with Summer Dunes, capital
appreciation on the property is also paid out."
Rodgerson reports that the final phase of Summer Dunes Retirement Village is
now available and offers potential buyers a range of purchase options. He says
assisted living units that include a lounge, kitchenette, one bedroom, one bathroom
and a patio are priced at R575 000, while semi-detached and free-standing homes
that have been designed with a lounge, dining room, three bedrooms, two bathrooms,
a kitchen with drying yard, patio, double garage and enclosed garden are priced
from R1,55-million.
The developers, Cape-based Inframax Developments, have successfully completed
up-market retirement villages in Cape Town, Durban and Johannesburg.
FeedBack (0)
11 June 2010, 07:50:22
According to Peter Bester, Broker/Owner of RE/MAX Finest in Alberton, the number
of sales achieved in February alone this year, was three times higher than at
any given period last year.
"This is partly due to the industrial and commercial developments along
the R59, which caused an influx of potential buyers and tenants to Alberton
and surrounds. Such a development is Heineken Breweries, which opened their
factory along the economic development corridor in September 2009.
New developments in the area, such as the nature and echo estates in Meyersdal,
also played a significant role in "putting Alberton on the real estate
map," notes Bester. Residential property prices achieved in these two developments
ranged between R3-million and R30-million.
Aside from Meyersdal, New Redruth and Albertsdal have also seen an increase
in estate, townhouse and cluster developments over the last five years. "As
such, the demand for vacant land in Alberton remains high," he says.
Commenting on the local property market's performance, Bester says that more
and more first-time home buyers are entering the market due to the low interest
rate. "We're also moving back to the old practise whereby buyers first
put their homes on the market and then purchase a new home, as such subject-to-sales
are the order of the day." He adds that while property prices depreciated
in the past year, profit on distressed properties are being made.
Entry-level homes in townships such as Soweto, Tokoza and Katlehong range between
R350 000 and R550 000 while entry-level property in Alberton is priced from
R600 000 upwards. Mid-level properties in the area start from R800 000 with
homes in the affluent areas reaching up to R2-million. "Homes in the last-mentioned
price bracket do not stay on the market for long while homes priced at R2-million
and above sell but sit on the market for anything between six months to a year,"
he says.
Bester says although current market conditions cannot compare favourably to
2003 whereby a property was sold within 4 weeks of being listed and qualified
buyers were ten a penny, RE/MAX Finest recently managed to sell a R650 000 townhouse
within two weeks after one show day. "Now that is a record given the current
market we're operating in," he says.
Adrian Goslett, CEO of RE/MAX of Southern Africa says the fact that Alberton
is well situated with easy access to all major routes, good hospitals and schools
makes it a great place to live.
"Recent upgrades to landmarks in the area, such as the Clinton Hospital's
new oncology wing and alterations to Alberton City will have a positive impact
on future property prices in the area," adds Goslett.
"We're also looking forward to the regional shopping mall to be erected
where the Newmarket Race course has always been," Bester concludes.
FeedBack (0)
10 June 2010, 09:13:32
Training plays an important role in career development in any field, and real
estate is no exception. Peter Gilmour, Chairman of RE/MAX of Southern Africa,
says training, or the acquisition of knowledge, skills, and competencies for real
estate agents has been found lacking in South Africa's property industry.
In a move to amplify the success potential of its agents around the country,
RE/MAX of Southern Africa has embarked on a large-scale training programme,
called the RE/MAX Ultimate Success Series, using training material from the
highly acclaimed Brian Buffini Organisation, the largest real estate training
company in North America.
Brian Buffini developed a powerful referral system that helped him become one
of the top realtors in the United States and, in 1995, he started Buffini &
Company to share these highly acclaimed lead-generation strategies with others.
Buffini & Company is now the number-one training and coaching company in
North America that equips real estate, lending, and service industry professionals
with tools to dramatically increase business while living a balanced life.
Gilmour explains that Buffini & Company's coaching solutions are designed
to position entrepreneurs for success through teaching people how to increase
profitability, become strong leaders, recognise and recruit top talent and most
importantly, develop lead generation.
It is the Buffini "100 Days to Greatness" programme, the most successful
agent training program in the world with over 60 000 agents worldwide having
taken the course. The course teaches the fundamentals of real estate lead generation
by referral. The course combines training from business coach/industry expert
Brian Buffini, role-playing exercises on video, action steps and live accountability
sessions - all for a comprehensive, practical learning experience. This programme
also demonstrates to entrepreneurs what steps they need to take to recession-proof
their business.
Says Gilmour: "The programme teaches people how to take their database
of existing relationships and create advocates that will help them accelerate
their business along with how to proactively add new relationships to their
database. Building relationships with customers based on trust also forms part
of this programme along with how to transform traditional real estate lead-generation
activities like show houses into effective tools for building business."
Underpinning the Buffini training is the premise that in order to increase
profitability, you need exceptional leadership in addition to top talent and
proven lead generation systems. The leading Broker/Owners and Managers of RE/MAX
in Southern Africa have been trained as Mentors to deliver the Buffini programmes
to their agents while Peter Gilmour, the group's Chairman, his wife, Val, a
director of the company and Adrian Goslett, the CEO, are the only licensed Buffini
Master Mentor Trainers in South Africa.
To date, approximately 80% of South Africa's RE/MAX Broker/Owners have been
through the training programme, and RE/MAX agents across the country now have
access to trained mentors who are able to deliver the "100 Days to Greatness"
course to agents.
FeedBack (0)
04 June 2010, 08:41:40
Inframax Holdings, the Cape based property developers who operate nationally,
are making use of a vast tract of land which they acquired some years ago to
develop a “next generation” inland port and logistics gateway to service
Johannesburg, Gauteng and Southern Africa.
Inframax MD, Dr Willie Els, says that the project has the potential to put
Gauteng’s entire logistics capability into a new and far more efficient
era and to create thousands of jobs whilst stimulating the area’s GDP.
“It is,” says Els, “fairly widely thought that Johannesburg’s
freight logistics needs have not been fully understood or appreciated by most
of the public sector authorities and agencies serving this area over the years.
As a result, the current situation is characterised by excessive use, and wear,
of roads by freight operators, dramatic decline in rail usage (due to poor service
levels), increased congestion and fragmented freight planning. South Africa’s
freight logistics system is not meeting the country’s needs and not keeping
up with the way the world is moving.”
The proposed new inland port and logistics gateway, says Els, will contribute
significantly to meeting Gauteng’s need to increase the current freight
logistics capacity/throughput in and out of Johannesburg, to 3 million TEU’s
by 2015 and 4 million TEU’s by 2020 - with further increases thereafter.
The 630ha site for the new project, which will be called Tambo Springs (the
original farm here was known as Tamboekiesfontein), is situated 25km southeast
of the Johannesburg CBD. Inframax plans to add at least a further 600ha to this
site in time, which would enable it to be developed to a world class inland
port and logistics facility.
“This,” says Els, “is appropriate as Gauteng is not only the
largest metropolitan area in Africa, but is also one of the largest in the world,
with a population of 10 million people generating the largest annual GDP in
Africa.”
Inframax has commissioned GAPP Architects and Urban Planners and the internationally
recognised logistics consultants, Franco Eleuteri and Associates, to help them
structure the concept and business plan for Tambo Springs. GAPP, says Els, are
a well known local firm who have been acclaimed for such work as the Umhlanga
Ridge New Town Centre North of Durban and the Cape Town Waterfront. Eleuteri,
who was born and raised in South Africa, is based in Dallas, Texas, and has
been involved in the development of Inland Ports, IDZ’s and other logistic
centres in Chicago, Dallas Fort Worth, Los Angeles and Monterey in North America.
He is also able to draw on experience acquired in similar developments in Asia
and Europe.
“One of the things which has become clear from our association with Franco,”
says Els, “is that the logistics challenges now faced in Johannesburg/Gauteng
have cropped up worldwide wherever cities have expanded fast.”
“Typically,” says Els, “the original logistics centres were
developed on what was then the periphery of the cities. Over the years, however,
these cities grow and absorb the centres, making expansion and/or upgrading
to accommodate new demands difficult.”
This, he says, is more or less what is happening to Johannesburg’s City
Deep Terminal, which was established in 1977 as a bonded inland container depot
where containers from Durban could clear customs in Johannesburg.
“City Deep still has a vital role to play but the time has come to have
it operating in tandem with a larger inland port or ports located on the new
city periphery and able to accommodate a large efficient intermodal capability
for road, rail and air transport. This is fundamental to any 21st Century freight
operation.”
In choosing a site for a new next generation inland port there is, says Els,
a checklist of factors which have to be in place before it can be considered
– and Tambo Springs scores exceptionally well on such a list.
“The first essential for such a port,” says Els, “is that it
has to have fast, easy access to the country’s major road and rail networks,
linking it to the big industrial centres and the country’s major sea ports.
“Tambo Springs is exceptionally well positioned in this respect as it
is located in the southern periphery of Johannesburg and within the Johannesburg/Durban
road freight and rail corridor. It has, therefore, access to the N3 freeway
to Durban (South Africa’s major freight transport route), to the N1 to
Cape Town and via the R390, to Port Elizabeth and East London as well as to
other freeways to the industrial centres just south of Johannesburg: Heidelberg,
Vereeniging, Vanderbijl Park and Sasolburg, all of which are within 20 to 60km.
The site is also only 22km from the City Deep Terminal and 25km from the OR
Tambo Air Freight Terminal. These excellent road linkages will allow the site
to accommodate both FTL (full truck load) long distance road freight and LTL
(less than truck load) regional distribution.
“On the freight rail side,” says Els, “the existing dual directional
links already run through the site to all the areas mentioned above. Accordingly,
the Tambo Springs development can contribute significantly to optimising the
country’s existing infrastructure, particularly that of the Ngqura Deep
Water Port near Port Elizabeth. More optimal usage has the potential to increase
this so called Eastern Corridor’s share of South Africa’s freight
handling from +-14% currently to 21% in future. This is important given congestion
issues with Durban.
“A further essential element of Next Generation inland ports such as Tambo
Springs,” says Els, “is to have sufficient reasonably priced land
to be able to accommodate an intermodal rail yard capable of handling point
to point movement of freight using ‘block trains’ up to 1,5km to 2km
in length and integrating the exchange of goods to and from the trains with
road and air transportation systems.
“There must, too, be sufficient land to perform value added logistics
functions on site as an integral part of the transportation functions. It is
for this reason that Inframax is assembling ±1 200 ha of land for the
Tambo Springs development.
“Finally,” says Els, “as the whole aim of a development of this
kind is to increase freight handling efficiency and improve service, it is important
that the most advanced telecommunications backup is available – including
high speed broadband and sophisticated IT systems.
“With all these elements in place,” says Els, “it is possible
to establish twinning arrangements, with an agreed set of operational procedures,
between the coastal ports and the new inland port/logistics centre. Once these
have been clearly defined and understood, he says, they can make a tremendous
difference to the functionality of the new port and the efficiency of the local
logistics system as part of the Global Supply Chain.
“Developments of this kind,” adds Els, “have internationally
led to ancillary development and the overall plan has to make allowance for
this. Typically, this involves the following, which the planning of Tambo Springs
will accommodate:
· freight transportation and logistics focussed development including
an intermodal yard with rail access;
· value added logistics park as an economic development zone forming
part of a (sea, air, road, rail) logistics gateway with a focus on accommodating
businesses involved in the transportation, processing, manufacture, warehousing
and distribution functions;
· an ancillary business park accommodating a commercial development
component;
· the development of a retail support component for the above; and
· the development of a consequential residential component which enables
the occupants to work, live and recreate on site without having to travel large
commuting distances. The residential component in turn, will require social
facilities such as schools, sports clubs, churches, and the like.
“One of the great benefits of being able to work on a new greenfields
project of this kind,” says Els, “is that it is possible from the
outset to implement green and eco-focused plans which ensure a minimum of pollution
and a steady improvement of the environment. This not only greatly improves
the quality of life of those moving in there, but it also makes the project
more attractive to First World firms which have come to expect this standard
of development.”
“Tambo Springs, which will be developed in phases, is expected to take
about ten years to reach full fruition. The first phase is anticipated to involve
an initial investment of ±R1 billion,” said Els.
“Projects of this size, scale and impact are typically in the international
experience carried out with public/private partnership arrangements which have
mutual benefits for both sectors,” says Els. “For this reason, while
this is a private sector driven initiative, Inframax has from the outset engaged
with key public sector authorities and agencies to canvass in principle policy
support for the initiative. These include Gauteng Department of Economic Development;
Blue IQ; Transnet Freight Rail and Ekurhuleni Municipality, among others. In
addition, Inframax is currently engaging with potential private sector stakeholders
to help finalise the business plan for the development.”
“At the end of the day,” says Els, “the success of the development
will depend on how successfully it addresses the business imperatives of companies
in the logistics arena.”
Els pointed out further that in addition to enhancing the logistics capacity
and efficiency of South Africa, the project will have other significant economic,
social and environmental benefits, including: the creation of decent jobs on
a large scale; creating business opportunities for both large established companies
and SMME’s; the enhancement of GDP for both Gauteng and Ekurhuleni; contributing
positively to the achievement of Gauteng’s Economic Growth and Development
Strategy; the upliftment of the deprived areas immediately north of the site,
i.e. in the greater Katorus area; enhancement of Sustainable Human Settlements
and the enhancement of Gauteng’s and SA’s position as an economic
driver/conduit in Southern Africa.
“Particularly exciting,” says Els, “is the job creation potential
of the initiative, given that high unemployment is one of the biggest challenges
in South Africa. Citing the example of a similar development at Interpuerto,
Monterrey, in Mexico which has similar challenges, Els points out that the number
of jobs that can be created from a project like this can range from between
37 000 to 57 000, of which between 28 000 to 42 000 are expected to be from
logistics operations and 9 000 to 14 000 from ancillary associated activities.”
“The Tambo Springs development,” says Els, “provides the opportunity
for public and private sector partners to participate in financially viable
ventures, while acting as the catalyst for initiatives focussed on strategic
goals and economic development in Southern Africa.”
FeedBack (3)
04 June 2010, 08:33:24
One of the interesting facts revealed by his weekly review of the asking and achieved
residential property prices in the areas that he serves, says Anton du Plessis,
CEO of Vineyard Estates, the Cape Town southern suburbs estate agency, is that
the number of show houses held has hardly altered since the boom period of 2007
– in some cases it has even gone up.
This, says du Plessis, is not what he would have expected – taking into
consideration that the number of estate agents has in the period under review
been cut by 65% and the number of sales by has reportedly halved.
The areas surveyed by du Plessis were Bishopscourt, Constantia (Upper and Lower),
Kenilworth and Newlands. In May 2007, said du Plessis, these areas had just
over 100 show houses per week. In May 2008 the figure was 120 – and the
figures for the years since then were on much the same level. In May 2009 the
figure 108 and in May 2010, again, close to 120.
“What this indicates,” said du Plessis, “is, firstly, that today’s
agents are working very hard, sometimes showcasing the same home two or three
times in a month and, secondly, that, despite the slight uptick in the prices,
there is still a great deal of stock available. Conditions, therefore, still
favour the buyer rather than the seller and this is particularly true of Constantia
where right now there can be anything up to 150 homes for sale.”
Asked how significant the recent uptick is, du Plessis said that his sales
show a 4 to 5% increase on what would have been achieved in the last quarter
of 2009 – and he remains confident that by the year end this will have
risen to 10%.
The show house figures, said du Plessis, also indicate that there is still
no better way to bring about the sale of a property than by putting it on view.
In his company, show houses account for at least 25% of sales and other have
put this figure far higher.
“Show houses have this great advantage: they offer the visitor the opportunity
to inspect the home thoroughly at leisure and without pressure from the agent.
Many potential buyers feel more comfortable under these conditions. In fact,
there are many buyers who are reluctant to make appointments to view potential
homes because they do not want to inconvenience the agent and seller –
particularly if they are still not sure that they do want to make a change.
Those same people often walk in to a show house, like it and become serious
buyers.”
“There is always a mix of visitors to any show house,” said du Plessis,
“you have inquisitive neighbours, property enthusiasts, serious and not-so-serious
buyers. Often people visit show houses in their chosen area to get an idea of
the relative value of their own property. Although many visitors are not initially
serious buyers, it is surprising how often a casual visit will result in the
visitor “falling for” a home and end up buying it.
“This is one of the reasons that I welcome every show house visitor. The
other is that they create a busy, competitive vibe that can stimulate interest.”
FeedBack (0)
04 June 2010, 08:32:57
Trudy van der Vlies, Broker/Owner of RE/MAX Marine which represents the northern
KwaZulu-Natal (KZN) areas of Richards Bay, and surrounding Empangeni, Kwambonambi,
Esikhawini and Ngwelezane, says that the bustling town of Richards Bay and its
surrounds are fast becoming the north coast holiday destination of choice for
many South Africans.
"Richards Bay is one of the closest seaside destinations from Gauteng,
the climate is warm and tropical all year round, and real estate in the area
offers great value for money."
Adrian Goslett, CEO of RE/MAX of Southern Africa, explains that this particular
area has been enjoying rapid industrial expansion over the last few years, and
as a result, the tourism and real estate industry in the area are flourishing.
"Richards Bay offers visitor's entrance to Zululand, marking the northern
tip of the Dolphin Coast. Its white sandy beaches stretch approximately 350km
- from the mouth of the Tugela River in the south, to the Mozambique border
in the north. The coastal plains include endless unspoilt beaches and coastal
conservation areas, and incorporate the largest estuarine system, as well as
the largest harbour in Southern Africa."
Van der Vlies says that with regards to the real estate market, sales volumes
have been excellent since the beginning of 2010. "There has been a good
and consistent general demand for property in the area, and the prices achieved
have been fair considering that there is a surplus of stock on the market. An
entry level home, such as a two-bedroom apartment, for example, will generally
fetch in the region of R390 000 to R540 000. The average three-bedroom, two-bathroom
home, with a single garage, will sell in the region of R800 000 to R950 000.
And at the upper-end of the market, modern homes set on large stands and featuring
top-end finishes, will fetch between R1,4m and R4m."
She says that the majority of her clients are first-time buyers or bargain
hunters, and that most of them are looking for bargain buys and "fix-uppers"
that they can renovate and improve over time when they have the money. She says
another market trend is the high demand for properties that are conveniently
located near to the various CBD areas in the region. "Many young people
want to live within walking distance from the CBD areas and all the accompanying
amenities and facilities these nodes have to offer."
On the whole, van der Vlies says she is incredibly optimistic about what the
future holds for the area: "We are expecting productivity throughout 2010,
and with foreigners from all over the world soon to visit our shores for the
FIFA Soccer World Cup, we are sure there is going to be an increase in future
foreign sales. Over and above this, with the interest rate holding at a very
low 10%, it is currently an excellent time to invest in property. So much so,
in fact, that we have already noticed a growth in prices since the drop in interest
rates, not only on owner-sold property, but also properties that are being sold
at auction."
FeedBack (0)
28 May 2010, 07:48:30
The recent International Franchise Expo at Sandton, Johannesburg, and a 110%
increase in “hits” on the Rawson Properties website (since January
2010), indicate clearly that the calibre of those applying to become franchisees
or estate agents in the SA residential property sector is improving by leaps
and bounds, says Tony Clarke, MD of Rawson Properties, which claims at the moment
to be the fastest growing residential property franchise group in SA.
“We are now witnessing the demise of the housewife/part time agent who
comes into the industry to make a little spare cash. Today’s applicants
quite often have tertiary education qualifications and among those applying
for franchises the majority have had previous successful careers and business
experience.”
These applicants, said Clarke, are “serious entrepreneurs”: the fact
that they have to buy their franchises eliminates most of the less dedicated
lets-give-this-a-try candidates.
Franchisees joining one of the big name property groups, said Clarke, will
have more chances of success than those who try to go it alone.
“Statistics from FASH (the Franchises Association of South Africa) have
shown that 92% of new start-up businesses fail within two years. However, 76%
of those signing up as franchisees with recognised groups succeed – and,
due to careful selection and ongoing support, our success rate in Rawson Properties
is far higher.”
Clarke said that he was disappointed that the Department of Trade and Industry
apparently had found it not worth their while to support the Franchise Expo.
“Property and most other franchises,” he said, “are in the small
to medium enterprise category on which the government has said the future growth
of SA will depend. Surveys worldwide have shown that SMEs have higher outputs
per person than those in big business and operate on lower overheads. SMEs are,
therefore, exactly what SA needs: business is the driver of economic growth,
innovation and job creation.
Clarke added that in the property sector the improved calibre of property staff
and their greater dedication will work to the benefit of the consumer. This
is important because in the past slack, untrained agents have sometimes given
consumers a raw deal.
FeedBack (0)
28 May 2010, 07:47:48
With many homes these days being smaller than those of yesteryear, it has become
essential to find ways of making interiors look bigger, says Mike Greeff, Chief
Executive of Greeff Properties.
He has, he says, on several occasions found that some or all of the following
steps can greatly improve the ‘feel’ of a home’s interior.
No 1: De-Clutter
“We all have furniture, knickknacks, pictures and semi-obsolete items
which serve no real or decorative purpose in the home. A resolution should be
taken to get them out of the way: store them, give them to your offspring or
take them off to the auction houses. Also, however, consider seriously rearranging
the layout of the furniture to achieve space. This can be done if you make a
point of breaking the furniture ‘boundaries’ in the room.”
No 2: Lighten Up
“Well lit rooms automatically give a feeling of space and airiness. What
is more, if your lighting network focuses on certain spots this creates the
impression that there is an extra dimension beyond them. It is often possible
to give a visitor to the room the feeling that there is ample space just beyond
the light fringe - when in fact there is almost no space at all.”
No 3: Use Colour Creatively
“Try to use relatively few colours but make sure they harmonise. Be aware,
again, that light, bright colours enhance a feeling of space. This has been
proved so many times that it always surprises me to see how seldom this particular
space enhancement method is used.”
No 4: Paint Over Tiles
“If a room’s walls are tiled and you feel that this creates a closed
in, cramped atmosphere, remember that it is possible to paint over tiles, again
using light colours. This will be a great deal cheaper than retiling in lighter
hues.”
No 5: Think Lines and Circles
“Until quite recently, people were reluctant to have two colours or different
patterns on the same wall. The truth is, however, that this can add character,
interest and space to an interior.
“If you want to increase the feeling of space, use horizontal lines. If
you want to ‘heighten’ the room, use vertical lines - and if you want
to give a backdrop to a light, a vase or a picture, try a circle.
“Any deviation from the norms in this respect will always add interest
and, once again, improve the feeling of space.”
These tips, says Greeff, are particularly relevant when a home is about to
be put on a show day. Spending a few hundred rand and preparing the home in
the ways described, he says, can very often make a significant difference to
the impression it creates on visitors.
FeedBack (0)
28 May 2010, 07:45:28
 The
Cape Town suburb Plumstead, says Anne Porter Knight Frank agent, Neava Enslin,
is perennially popular and its homes have a stable price record. Many of its
people stay there all their lives. It is close to good schools, sports clubs,
communal facilities and good retail centres as well as major highways to the
CBD – yet, surprisingly, it is still an area in which “reasonable”
house prices are found.
“One reason for this may be that many of the homes date from before the
1970s – and some see this as a drawback. The truth is, however, that the
older houses, almost without exception, were beautifully built in an age when
artisans were more proficient and these homes have been well maintained. They
have a solid character seldom found elsewhere today and have such features as
sash windows, high ceilings, large open hearth fireplaces and wooden floors.”
One such now on the market at a price of R1,845 million, covers a large 1 128m²
erf (which allows for a back garden large enough for kids’ cricket, lawn
tennis or croquet).
The home has four bedrooms, a study, two living/dining areas, a double garage,
servants’ quarters, off street parking, a swimming pool and splendid views
of Devils’ Peak and Table Mountain.
Certain features, says Wilma Vorster, who is also involved with this sale,
have been modernised – there is a solar heater on the roof and modern equipment
in the kitchen.
Lanice Steward, MD of APKF, said that in her view Plumstead offers some of
the best value in the Cape Peninsula – and has shown an ability to “cruise
through recessions” without being as noticeably affected by price fluctuations
as the more affluent areas.
FeedBack (0)
28 May 2010, 07:44:12
Why, oh why, do people buying homes wait for the market to take off before they
commit themselves? This is the question that Mike Greeff, Chief Executive of the
Cape estate agency Greeff Properties, put to his agents recently.
“Right now,” says Greeff, “virtually every commentator on the
property scene is saying that this is a good time to buy because value increases
of at least 5% to 8% are likely within the next 12 months - and in our area
many are saying that the increases will be even greater. Add to this the fact
that the banks are steadily increasing the number of bonds available and interest
rates are likely to start rising before the end of this year and it becomes
apparent that this must be the logical time to buy.”
Nevertheless, says Greeff, many of the less sophisticated buyers are still
waiting for ‘confirmation’ that better times have arrived.
“All this means is that, when they finally commit themselves they will
probably pay higher and have to accept an increased interest rate,” says
Greeff.
Really shrewd buyers, says Greeff, will often be found buying when the markets
are falling or are stable, i.e. they act counter to the man-in-the-street’s
perceived wisdom and counter to the demand cycle. By buying when confidence
is low and competition is weak they put themselves in a position to cash in
when later improvements occur in the market.
In looking for bargains, says Greeff, it is worthwhile checking which homes
have been sticking on the market for some time. Sellers of such properties may
have got to the point where they are willing to negotiate a big discount.
It is also worthwhile checking on the track record of the agent: a good agent
will have persuaded the seller to accept a market-related price, but a weak
or inexperienced agent may have accepted an unrealistically high price to get
the mandate.
“One of the main lessons we teach Greeff agents is to be realistic in
their valuations – and they are – but there is still a small minority
of sellers who will only accept market realities after their home has “stuck”
for a long time.”
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21 May 2010, 08:20:00
At the Property Expo held recently in Sandton, Johannesburg, Tony Clarke, MD
of Rawson Properties, reports that his team lined up twelve new signings.
“I was from the start confident,” said Clarke, “because this
year enquiries about, and applications for, new franchises by post, email and
telephone have risen by just over 25% month-by-month.”
This, said Clarke, is a clear indication that confidence in the property sector
is on a sharp rise - and it probably also heralds a satisfactory increase in
residential property prices over the next six months.
Rawson Properties was one of the very few big brand estate agencies to achieve
good franchise sales throughout 2009 when 26 new franchises were sold between
January and December.
This year, however, said Clarke, the level of enquiries is so far up on that
of last year that Rawson Properties now believe that they should have no difficulty
in being able to achieve a target figure of 90 new franchises being added to
their national footprint.
As most franchises are expected to have at least six agents and an administrator,
this means that over 600 new property staff will be added to Rawson Properties’
total by the end of 2010.
Clarke added that Rawson Properties are also selling franchises for their new
auction and letting divisions. Here, too, he said, the uptake has been ‘surprisingly’
good.
“Rawson Properties is in the only big brand estate agency group to offer
a separate letting franchise and this is attracting considerable interest because
this type of operation is one that many applicants prefer and because these
franchises are not expensive.”
Asked to give a price range on the agency franchises he is selling, Clarke
said that this would be totally misleading because each franchise is tailored
to suit the buyer, his territory, his past experience and his anticipated growth
path.
“Two factors have however become clear,” said Clarke. “The calibre
of those entering the industry as franchisees is now higher than ever before
and there is a growing perception that it is now essential to belong to a big
brand group if you wish to ‘cut it’ in the property sector. Independent
operators find that they lack credibility, backup support and a national referral
network.”
The Rawson Properties’ training programme, said Clarke, does ensure that
even those new to the property industry and to being franchise principals can
obtain the qualifications that are now demanded by the Institute of Estate Agents
of South Africa (IEASA). In addition to the obligatory NQF4 and NQF5 qualifications
(the latter for franchise principals) required by the EAAB, Rawson’s also
give ongoing training in a variety of skills such as negotiation, client liaison
and personal improvement.
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21 May 2010, 08:18:00
Cape Town, says Paul Henry, Managing Director of Rawson Developers, the residential
company with approximately 4 000 units to its credit, is fortunate that appropriate
and timely action has thus far prevented sections of the city suffering from
urban blight, which he describes as a ‘disease’ that is now evident
in many of the world’s big cities.
“Urban blight,” says Henry, “is the term used to describe any
area in which standards have dropped so low that the original inhabitants are
no longer content to live there. In Johannesburg, some would say that Hillbrow
is just such an area. In Durban, large portions of the CBD have also degenerated
so seriously that there has been a wholesale exit of corporate and professional
offices.”
In Cape Town, says Henry, some commentators would say that certain portions
of Muizenberg were in danger of becoming blighted in the way he has described.
Landlords, says Henry, are always compromised and lose out as a result of urban
blight.
“When an area becomes less desirable it can no longer command good rentals
or sale prices. If effective city improvement district initiatives are not then
initiated it rapidly becomes impossible for the current landlord or successive
owners to charge satisfactory rents. As a result, maintenance and upkeep are
no longer a top priority and premises begin to decay.
“In this scenario premises tend to be used for purposes for which they
were not designed, e.g. businesses in residential units, and a vicious spiral
of overcrowding, low rents and poor maintenance sets in, sometimes eventually
making the precinct acceptable only to the poorest of the poor, vagrants and
the gangster element.”
With urban blight always a potential danger, says Henry, Cape Town’s newly
introduced floodplain and river corridor management policy should be reviewed
very seriously by those responsible for the city’s development.
“The new policy, which I understand was adopted after minimal public discussion,
makes it illegal to redevelop buildings that have been identified as being within
the “High Hazard Zone”, for example, buildings along the Liesbeeck
River. Should a building along a river be destroyed by natural causes approval
from the local authority to rebuild on the site could be declined.
“As I see it, this policy could mean that some buildings will be forced
to remain empty for years to come, which, of course, would inevitably lead to
a downgrading of the whole area, the onset of urban blight setting, the devaluation
of properties, the payment of lower rates and insurance problems.”
Three factors relating to this matter, says Henry, should be borne in mind.
Firstly, the floods referred to may only occur every 50 to 100 years and may
often not be as serious as the authorities have led the public to believe. Secondly,
redevelopment can be undertaken in such a way that the building can ‘accommodate’
a flood without serious damage. For example, the likely flooded area could be
reserved for parking. Thirdly, the floods themselves are usually exacerbated
by the escalating problems of alien infestation, either upriver or in the area
concerned.
“This problem, if recognised, is always manageable,” says Henry,
“and, as the Department of Water Affairs has shown, can provide useful
short-term employment opportunities to fairly large numbers of unskilled people.
If aliens such as black wattle, rooikrans and water hyacinth are removed, water
flows become more rapid and damming is avoided, with the result that flooding
is far less likely. This is something our municipality must start thinking about,
not only on the Liesbeeck River but on other rivers, if they wish to avoid flood
damage and pollution of the type that made dredging of Zeekoevlei absolutely
essential.”
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21 May 2010, 08:17:45
Tanya Jovanovski, the go-getting CEO of the newly established Rawson Auctions
division, has lined up top speakers for a property investors breakfast to be
held at Kelvin Grove at 7:45am on 26th May. The cost is R120 per person.
Bill Rawson, Chairman of Rawson Properties and a lifelong believer in the virtues
of individual property investment, especially in the buy-to-let residential
sector, will talk on “Why the current times are idea for property investment”.
Jason Lee, author of two books (which have sold 35 000 copies) on property
will talk on this investment channel as a “Cornerstone of wealth creation”.
Backing these speakers up on a discussion panel will be Melanie Coetzee and
Allan White, from the attorneys and conveyancers, Smith Tabata Buchanan Boyes,
and Rob Lawrence, national executive manager of Rawson Finance, the Rawson Group’s
bond origination company.
Those attending the breakfast will be able to question the panel on any property
subject that interests them.
After the breakfast Jovanovski will auction 14 residential opportunities in
the “Academic Belt”, i.e. within easy commuting distance of UCT, Groote
Schuur Hospital and the Cape Technikon.
These homes are mostly in Rondebosch, Rosebank, Mowbray and Newlands and are
all capable of attracting highly satisfactory rentals. They are, therefore,
particularly well suited to buy-to-let investors.
For bookings ring Cleo Kakaza on 021 658 7100.
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14 May 2010, 10:29:56
 The
ultimate bushveld golfing, nature and hydro-therapy experience is now available
on a fractional ownership basis.
Four different packages at the Euphoria golf estate and hydro near Naboomspruit
have been launched at prices varying from R165 000 to just more than R640 000
for two weeks’ stay. Prices exclude VAT but include preferential golf tariffs
and full golf membership on some packages.
Euphoria is situated about 7km outside Naboomspruit and about 200km north of
Johannesburg, offering a convenient getaway to a piece of pristine Waterberg
bushveld, says Aida’s Anton Hanekom, who markets fractional as well as
full-title units in the estate.
Several stands are still available. Prices for Bushveld stands at the top of
the mountain overlooking the estate range from R750 000 to R2m and those in
the golf phase from R300 000 to R900 000. Stands in Orchard Village are available
from R450 000 while stands in Macadamia Crescent and Olive Grove are selling
from R350 000.
Apart form the signature golf course designed by Annika Sorenstam, the estate
offers hot mineral springs and a wide range of hydra-therapies, full conferencing
facilities, a fully-equipped 12-seater board room, several restaurants and a
club house.
A nature reserve of 760ha is home to a wide variety of game and is a favourite
birding destination, says Hanekom. “Game is free to roam and golfers are
sometimes lucky enough to combine their golfing pursuits with a spot of impromptu
game viewing when denizens of the reserve wander onto the course.”
The reserve also offers hiking, cycling and limited quad biking opportunities
as well as game-viewing safari’s. A double-roped cableway links the clubhouse,
hydro and golf course with the Bushveld stands on top of the mountain. The cableway
also transports diners to the Sundowner Deck restaurant, where patrons can experience
fine cuisine and spectacular bushveld views.
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14 May 2010, 10:24:16
 Until
the early 1930s, the Cape Peninsula suburban railway line ran only as far as
Muizenberg and one result of this was Muizenberg for half a century prior to
this was a centre of fashion, the chosen holiday resort of Lord Alfred Milner,
Sir Abe Bailey, the Robinsons and other Cape society figures – many of
whom built substantial homes here in the solid Victorian and Edwardian styles
then in vogue.
One of these, originally known as Shalvah, has just been sold at a price of
R2,83 million by Rawson Properties’ Muizenberg franchise.
Errol King, the franchise principal, said recently that by any calculations
this was a good value buy.
“The home is on Beach Road and within two minutes’ stroll of the
sea. It has a total floor area of 617m² and on an erf of almost 1 000m²
and in the garden there are two apartments, one with its own living room and
kitchen. Anyone wanting to run a guesthouse or B & B from here would have
a total of eight bedrooms to let out in the main house, the granny flat and
bachelor pad. There are also two studies and spacious reception rooms.”
The homes, said Peter Wetton, also of Rawson’s is characterised by the
features and fittings for which Edwardian homes are well known: it has four
fireplaces, thick Oregon pine flooring, wooden framed doors, ceramic tiles,
an enclosed balcony and teak window frames
King said that the mandate for the home had been shared with another big real
estate group but Rawson’s had been quicker off the mark and had been able
to use its referral network to attract offers.
“Muizenberg in my opinion is unique in South Africa, in being able to
offer affordable homes in close proximity to beaches, mountains and a vlei.
Bargain hunters on the trail of low priced homes likely to escalate in value
soon should visit the area and inspect the stock.”
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14 May 2010, 10:04:07
Chris Pearson, Broker/Owner of RE/MAX Address talks about the upswing in the
Durban property market
North Durban areas including Umhlanga, are some of the best performing areas
in the country at the moment, according to Chris Pearson, Chairman of Durban-based
RE/MAX Address. Pearson, with more then 10 years of service with the company
and 31 years experience in the real estate industry, was awarded with the RE/MAX
Circle of Legends trophy in February this year for outstanding sales performance
during 2009.
Receiving the Circle of Legends award was a great honour for Pearson, especially
since he is only the second person to receive it, outside of North America and
Canada. It was last presented in 2006 when South Africa was in the height of
the property boom. He says receiving this award has motivated him to keep going
and never stop. "You have to be consistent at being consistent," he
says, "you have to have a passion for the business of selling real estate,
you need to be able to think out of the box and must be actively involved with
your troops in the trenches." Overall, success for Pearson means taking
a disciplined, holistic approach to life and creating balance.
Commenting on the general property market in Durban and its surrounding areas,
Pearson notes that demand for residential property has picked up steadily, which
is an indication that confidence is returning to the market from all buyer segments.
"Established areas like the suburbs of Berea, North Durban and Upper Highway
areas remain popular as they often retain their value better than the newer
areas," he says. "Investing in property in active areas is always
a better option for this very reason, no matter whether it's residential or
commercial."
Depending on location, buyers interested in investing in Durban property can
expect to pay between R550 000 and R800 000 for a two-bedroom apartment in the
Berea, Glenwood or Morningside areas of Durban, while similar apartments in
the CBD would sell for approximately R400 000 to R550 000. "Mid-level homes
in and around Durban can be found for approximately R1,2m. Again this is dependent
on the location, as homes in this price range in Berea or Morningside would
be difficult, if not impossible to find," says Pearson.
He says that there are a number of expensive homes, priced from R2,5m upwards
on the market in the affluent areas. RE/MAX Address has just sold a R12m home
in Umhlanga, which Pearson says demonstrates that buyer appetite in the upper
reaches of the market is increasing. Pearson points out that market activity
in the upper echelons of the buying market has increased due to the fact that
these buyers don't have as many issues with mortgage finance as other buyer
profiles.
Adrian Goslett, CEO of RE/MAX of Southern Africa says that while the effects
of a lack of mortgage finance may hinder the buying process to a certain extent,
the market is showing solid growth overall with an increase in sales volumes
compared to a year ago.
Pearson believes that the slow but steady recovery of the market is a good
thing. "Steady and solid progress in the property market recovery means
that no bubble or false expectations will be created." He expects the interest
rate to remain steady for the next 12 to 18 months.
RE/MAX Address operates in the residential and commercial market segments of
the Umhlanga, La Lucia, Durban North, Berea, Morningside, Glenwood, Kloof and
Hillcrest areas of KwaZulu-Natal, among others.
FeedBack (5)
14 May 2010, 09:21:07
Diverse lifestyle choices in a vibrant, growing part of Pretoria
A few years ago, Mooikloof may have been considered to lie beyond the outskirts
of Pretoria. But today, it is entirely part of the vibrant "buzz"
of the city of Pretoria, offering a diverse range of lifestyle choices, including
"out-of-town" living.
"The development of this area has been phenomenal. Mooikloof used to be
the furthest end of Pretoria, but now it offers all the amenities one would
expect in a bustling suburb of a metropolitan city, including a hospital and
six shopping centres," says Roma Naudé, Broker/Owner of RE/MAX Property
Merchants in Mooikloof, Pretoria, which specialises in security estates in the
eastern suburbs of Pretoria.
"Exciting new developments continue to add to the vibrant ambience of
this fast growing area. For example, Park View is an exciting new upmarket shopping
mall near the Pretoria East Hospital and Woodhill Golf Estate. Next to Woodlands,
a new shopping centre, featuring 58 new shops, is opening in October 2010. Another
exceptional development is Zwavelpoort Meadows, a security estate offering stands
on which businesspeople can build their own office blocks, and incorporating
a residential area and a small convenience shopping centre. This means that
property owners in the estate can work, live, play and shop all in one estate.
RE/MAX Property Merchants Mooikloof is proud to have the sole mandate for this
innovative estate."
Roma opened the RE/MAX Property Merchants office in Mooikloof only one year
ago, but nevertheless scooped the RE/MAX Broker/Owner Individual of the Year
2009 by Registered Commission award at the RE/MAX Gauteng awards ceremony held
earlier this year. Commenting on Roma's achievement, Adrian Goslett, CEO of
RE/MAX of Southern Africa says that although the success of the Mooikloof office
can in part be ascribed to the growing popularity of the Mooikloof area, it
is mostly due to a formidable partnership between Roma and her husband, Etienne.
"Roma brings to the business 25 years of experience in the marketing industry,
the last seven of which has been dedicated to property sales and letting. Etienne
is a well-known attorney in the field of conveyancing and commercial litigation,
adding extensive legal expertise and property experience gained while operating
his own estate agency a few years ago," he says.
"The popularity of the Mooikloof area is due to the diversity of lifestyle
options it offers, while at the same time providing easy access to the highways
for commuters to Pretoria and Johannesburg," explains Roma. "Golfing
enthusiasts will find their dream home at exclusive golf estates such as Woodhill
Golf Estate, while animal lovers will be delighted with the big 1 ha stands
available in the area. Estates such as Boardwalk with its dams and walking paths
are perfect for nature lovers who do not want to maintain a large garden. There
are also many options for yuppie and newlywed couples who prefer to be part
of the city vibe, close to amenities like shopping centres. For those who want
an 'out-of-town' lifestyle, the new developments around Mooikloof are ideal,
and plots with excellent security are also available," says Roma.
The prices of entry-level properties in the area range from R750 000 to R1,5m,
while mid-level properties fetch between R1,5m and R3,5m. Upmarket property
prices vary between R3,5m and R9m, but luxury properties valued up to R24m are
also available in the area. Vacant land is still readily available, but the
asking prices are optimistic due to ongoing bulk-buying for development purposes.
Roma notes that sales activity and the general demand seem to be increasing,
despite the strict criteria of the various financial institutions that still
result in a lower percentage of loan approvals. Buyers looking for expensive
properties in the R10m and above mark are also coming back into the market.
"The asking prices for certain properties are still too high and this
is where the expertise of experienced agents is crucial," explains Roma.
"Overpriced properties are a direct result from the past property price
hikes. At RE/MAX Property Merchants, we are proud of the fact that we are well
informed and connected with the valuers from the banks, so we can advise our
sellers of the value the banks attach to their properties. After all, if the
valuers are not finding the value of the selling price, the purchaser will not
obtain a loan. Our philosophy is to rather walk away from an overpriced house
and focus on the realistically-priced houses."
Roma believes that the property market is still a buyer's market, but property
bargains are becoming harder to find. "Buyers still have many choices,
and thus do influence the prices. Given the wide choice they have, it is crucial
that buyers tap into the expertise of a reputable agent in the area to help
them make the right choice. In this buyer's market, it also becomes more important
than ever for sellers to choose an agent that can offer uncompromising professionalism,
integrity and service under one roof, to ensure they get the best possible price
within a reasonable time."
FeedBack (2)
14 May 2010, 09:20:47
SA real estate agencies with connections to overseas companies understandably
emphasise this, says Marion Taylor, manager of Greeff Properties’ Camps Bay
branch – but the local market should not be undervalued as it is South Africans,
and Capetonians, in particular, who in all areas, including the Atlantic Sea Board,
are responsible for a vast majority of sales.
“In the years that we were part of a very strong branded European group
we had occasional referrals from them but most potential buyers from overseas
tend to search the internet before visiting Cape Town and, once here source
properties in the same way as South Africans. They visit show houses or come
into the various street level agency offices which are usually well located
to attract passing trade.
“Now that my team is part of Greeff Properties, the really significant
assistance comes in the form of local referrals. These are many times more numerous
than the mythical overseas buyers that our former European head office hoped
to be able to send us. Johannesburg and Cape Town itself is where we find those
capable of paying the Atlantic Sea Board prices which range from R1 million
or less for apartments to R100 million for upmarket Clifton and Waterfront properties.
The tie up with Greeff Properties is proving to have been a good move as we
now receive referrals regularly, usually with excellent results.”
The flow of home seekers to and from Cape Town’s Southern Suburbs, South
Peninsula and the Atlantic Sea Board is consistent and reliable, said Taylor.
“Buyers whose children have finished school and who chose a different
lifestyle are often attracted from the Southern Suburbs to the Atlantic Sea
Board but many young families on the seaboard uproot themselves to move closer
to the many schools in the Southern Suburbs.”
Greeff Properties, added Taylor, have a strong relationship with Druce in London,
LH Properties in Munich and Your Home International in Zurich, so are still
handling some overseas buyers.
FeedBack (0)
14 May 2010, 09:19:41
Homebuyers in Weltevreden Park and the surrounding areas of Randburg can rely
on world-class expertise from the RE/MAX Master's Weltevreden Park office when
they make one of their biggest investments: buying a home.
At the RE/MAX Gauteng awards ceremony held recently, the RE/MAX Master's Weltevreden
Park office performed extremely well. Tracey Snyman received the Sales Associate
of the Year 2009 Award by Registered Commission while Lance Heroldt accepted
the Sales Team of the Year 2009 Award by Registered Commission. Glenn Joselowitz
received the Sales Team of the Year 2009 Award by number of transactions achieved.
Lance and Glenn also achieved Diamond Club in 2009 - the highest annual club
award given to a RE/MAX agent.
Over the last five years, this remarkable office has also produced the three
top performers for RE/MAX internationally (excluding North America and Canada),
with Lance Heroldt's team being recognised as the Top Team Internationally achieving
first place for 2009, Glenn Joselowitz's team achieving third place and Tracey
coming in at number 11 as an individual agent.
Glenn Norton, Broker/Owner of RE/MAX Masters Weltevreden Park, attributes this
success to the fact that they put their clients' needs first. "The business
is systems-based, ensuring high levels of service to our clientele. I count
on the fact that my clients come back to me each time they buy and sell a home,
and this is how the business grows."
The achievements of the Weltevreden office are certainly proof of the company's
position in the real estate market. "We have the best agents in the industry:
agents that lead change in an industry as opposed to being influenced by it.
Agents that know that client relationships are more important than sales and
listings," comments Adrian Goslett, CEO of RE/MAX of Southern Africa.
For many homeowners, and particularly first time buyers, making the right decision
about which home to purchase can be a daunting prospect. Sellers also require
expert advice and guidance to ensure they can achieve the best price in these
difficult market conditions. "So many agents make false representation
of what they can do, about the suitability of a property to a buyer's needs
or about the sales price they can achieve for a home. People make life-changing
decisions based on what they believe is a professional opinion," says Norton.
"At RE/MAX Masters, we are trained and qualified in accordance with the
latest legal requirements and keep up to date with the developments in the area
that affect the property market. This ensures that we can offer our clients
the best advice and uncompromising service."
Lance and Tracey, who are siblings, have a combined experience in the Randburg
property market spanning almost 17 years. "There is a considerable amount
of buying and selling activity in this area due to its prime location,"
says Norton. "For example, in Northriding, where property prices for clusters
and townhouse range between R500 000 and R3-million, a well-priced property
can be sold in as little as four to six weeks, despite the current property
market conditions. While there is still land available for development, the
constraints imposed by the slow provision of infrastructure and services will
limit further development in the immediate future, which means the demand for
properties in this area will continue to outstrip the supply."
Norton is optimistic about the future of property, but adds: "We have
seen the end of the major slump, but there are a few uncontrollable factors
that influence the property sector - recent figures from the Betterbond Group
show that only one in two bonds are granted. This means an agent is reselling
every second home he or she sells."
Norton believes that property remains one of the best investments, if buyers
keep a long-term perspective. "We are unlikely to see the boom in property
prices which we experienced a few years ago, but prices are slowly beginning
to grow positively. If you buy the right property and keep it for at least five
years, you can be assured of a decent return on your investment. But to make
sure you make an investment that is truly 'safe as houses,' you need to tap
into the experience and expertise of a reputable and recognised estate agent
who specialises in the area and is willing to go the extra mile to help you
make the right choice," concludes Norton.
FeedBack (0)
14 May 2010, 08:27:07
Beacon Bay, known as the Garden Town of the Amathole region, is situated right
on the ocean between the Nahoon and Quinera rivers. Beacon Bay is a sought-after
residential and holiday location that offers beaches and river sports, shopping
malls, office parks and cinemas as well as a new private hospital, with the amenities
of East London only ten minutes away.
It is here that Antoinette Clark, Broker/Owner of RE/MAX Border Professionals,
has noticed a definite increase in sales activity in comparison to 2009. She
says properties in the R1,2m range and below are in demand and therefore sell
the quickest.
Generally prices in the Beacon Bay area range from R700 000 up to R7m. Clark
says that many buyers are still feeling the effects of tight lending conditions
from the banks, but notes that there has been an increase in cash buyers and
those with substantial deposits.
Beacon Bay's property growth has been especially noticeable in the lifestyle
development concept with the introduction of mixed-use developments where buyers
can live, work and play.
Townhouses, she says, are still popular types of property in the area, and
correctly priced properties are selling at a good pace. "Unfortunately,"
says Clark, "many sellers are still expecting to achieve prices that they
would have in the boom times. Reality is that buyers are looking for quality
properties that represent good value for money and in line with current market
prices."
Adrian Goslett, CEO of RE/MAX of Southern Africa, says that Beacon Bay's property
market is following similar trends to the rest of the country. He cautions sellers
against pricing their properties unrealistically. "It follows that if a
property is priced correctly; it will sell in a shorter period of time and will
also attract serious buyers."
While there are a number of new developments in the pipeline for the area,
Clark notes that many of the developers of existing projects are giving buyers
incentives to purchase. "This is in line with the fact that buyers are
looking to get a lot more value for money from their property purchases these
days," she concludes.
FeedBack (0)
14 May 2010, 08:26:19
The signing of RE/MAX Realty Centre franchise, which operates out of Harare, Zimbabwe,
has catapulted the RE/MAX footprint into 82 countries around the globe.
Rutendo Rutendo, Broker/Owner of RE/MAX Realty Centre, says that while their
offices are based in Harare, they aim to operate nationally, especially considering
the fact that the Zimbabwe property market is experiencing a huge uptick in
activity with many interested buyers looking to find their perfect home.
This, says Rutendo, is exceptionally positive coming from an adverse environment
where the monetary transition to the US Dollar last year was a big shift for
the people of Zimbabwe who had to adjust their income accordingly.
He says that as with the South African market, the lack of mortgage finance
also served to hamper the Zimbabwean property market's performance, but that
the gradual return of finance has stimulated activity once more.
While Rutendo is anticipating good trading conditions in 2010 and has already
seen an increase in property transactions, affordability, he says, will continue
to be a challenge.
Properties that fall within the higher density zones are the most affordable
in the Zimbabwean property market, selling between USD 10 000 and USD 15 000
upwards. Here properties usually consist of two- or three-bedroom apartments
with a relatively small floor area.
For USD 60 000 and more, buyers can purchase a two- or three-bedroom home in
a medium density area. "As incomes improve, more loans are advanced and
there is more activity in these areas across the board. As always," says
Rutendo, "location determines the property price."
An acre of land with a home consisting of three or four bedrooms, a lounge,
dining room, swimming pool and security in low density areas, such as the northern
suburbs of Harare, can be purchased from around USD 200 000.
Peter Gilmour, Chairman of RE/MAX of Southern Africa said that the signing
of this particular franchise was a momentous occasion as it solidified the positioning
of RE/MAX as one of the strongest international real estate brands in the world.
Rutendo is excited to be taking the RE/MAX brand into Zimbabwe, a move which
he is sure will result in him attracting the best agents in the country - even
from other real estate companies. "It is an honour to be part of such as
well known, international real estate brand that offers the best in training,
technology and excellent systems," he says.
Adrian Goslett, CEO of RE/MAX of Southern Africa, is proud to have RE/MAX showcased
in Zimbabwe and looks forward to RE/MAX becoming the preferred real estate brand
in that country.
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14 May 2010, 08:25:44
RE/MAX of Southern Africa has launched its 3D advertising campaign at three of
South Africa's major airports: OR Tambo International Airport, Lanseria International
Airport and Cape Town International Airport. RE/MAX is the only South African
real estate group which has embarked on an advertising campaign using 3D technology.
The campaign, running from 4 May until 16 July, specifically targets inbound
travellers to South Africa. It aims to create awareness around the RE/MAX brand
in the country along with its service offering and quality guarantee.
During the period of the campaign, it is estimated that over 2 million people
are expected to pass through the airports. "The airport makes sense for
an advertising campaign of this nature," said Adrian Goslett, CEO of RE/MAX
of Southern Africa, "especially since the local tourism industry outperformed
world trends in 2009 and realised a growth of 3,6% in foreign arrivals with
more than 9,9-million foreign arrivals to the country. With the campaign running
through the weeks leading up to the Soccer World Cup, there will definitely
be an increase in airport traffic - a prime opportunity to showcase our brand."
The RE/MAX 3D adverts will be displayed, along with other highly rated international
brands including Coca-Cola, Colgate and Visa, on 12 high-definition, 42 inch,
3D Phillips screens strategically placed in both the domestic and international
departure areas.
Goslett said the 3D technology allows images to fly right out of the screen
without the need for 3D glasses. Using a "lenticular" lens, which
is similar to grooved plastic pictures that move when flexed, 3D TV sends different
signals to each eye which tricks the brain into seeing images float in and out
of the screen.
These 3D adverts really catch the eye, enabling advertisers to convey key information
to their audiences through a visually engaging platform. "This method of
advertising is certainly distinctive in today's cluttered media space. It is
a perfect match for the RE/MAX brand, which is very much centred on maximising
technological advancements," Goslett concluded
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06 May 2010, 14:36:14
To build on the huge success of its Home Makeover projects of the past two years and to celebrate its 30th birthday, the Chas Everitt International property group has just launched ChasCares, a new corporate responsibility programme with a broader and deeper reach.
“The Home Makeover projects in Gauteng and the Western Cape were very substantial,” says group CEO Berry Everitt, “but still meant that many of our offices and agents could not be as involved as they would have liked in our community support activities.
“The ChasCares CRP will address this, enabling everyone in the group to participate – and enabling them to reach further and deeper into their own communities to touch people who need help”
Bearing in mind that the group is 30 years old this year, the ChasCares programme will involve each office in the group in doing 30 “acts of kindness” during the year “to say a direct thank you to SA for 30 years of support”, as well as three major regional campaigns, he says.
“And many of the sponsors that were involved in the Home Makeover projects are already on board to support the new programme at regional level.”
ChasCares will, Everitt explains, be multi-layered and while it will be co-ordinated nationally, it will be structured so that regions and branches can identify needs in their own areas and decide which organisations or projects they wish to support with their own fund-raising or other activities.
“This means, no doubt, that the beneficiaries of the ChasCares programme are going to be very diverse, but the needs are great in SA and we feel that what is important now is for everyone in the group to touch as many other lives as possible and make a difference where they are, as this is a very important part of the Chas Everitt culture.”
A ChasCares website has already been launched (see www.ChasCares.co.za) and will be used to promote the programme and keep a record of its various activities around the country. News and events will also be posted for fans to the new ChasCares page on Facebook. (become a fan)
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06 May 2010, 14:32:13
 Living up to promises that they made earlier this year, to be “motoring” by mid-year, Tanya Jovanovski, CEO of Rawson Auctions, and her colleague, Jason Lee, have lined up an array of new auctions – no less than five in two weeks. These will take place from the 11th May to 26th May and with one exception will always be at 12 noon and on site.
On 11th May, the Rawson team will auction a four bedroom face brick home in Ottery. Jovanovski expects it to attract bids of R700 000 to R1,1 million.
On 12th May a four bedroom home in Leeuwenhof Road in Bellville will come up for sale – and again, is likely to attract offers from R600 000 to R800 000.
On 19th May, Rawson Auctions will sell a three unit commercial complex on a 1000m² erf in Lester Road, Wynberg. Here, prices are expected to be above R2,5 million for all three units or around R800 000 for individual units.
On 22nd May, Jovanovski will, for the first time in the history of the estate, auction a home at Steenberg Golf Estate. This is expected to attract bids above R10 million. Sited on Blue Crane Way, it is a “very upmarket” home, says Jovanovski.
Then on 26th May the Rawson Auctions team will, as announced, hold a multiple auction of hand picked Rondebosch/Mowbray and Observatory properties all suited to student accommodation and likely to be priced from R500 000 to R900 000 for apartments and up to R2 million for large houses. This auction will be held at Kelvin Grove at 7:45am and includes a light breakfast and guest presentations by Bill Rawson (Chairman, Rawson Group) and Jason Lee (the high selling property author).
Tony Clarke, MD of Rawson Properties, said recently that the energy and enthusiasm of the new Rawson Auctions division have proved “awesome”.
“They have thrown themselves in at the deep end and are managing exceptionally well: every single property they have taken on so far has found a buyer, either at or post auction. Four sales were finalised in two weeks.”
Jovanovski said that it is her ambition to grow Rawson Auctions to the point where they will be recognised as one of the big name operators in the auction field.
Those who would like further information or viewing should email Jovanovski on tanya@rawsonauctions.com or Jason Lee on jason@rawsonauctions.com
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06 May 2010, 13:52:53
RE/MAX of Southern Africa is proud to announce that the real estate company
has spread its wings to the lovely town of Bronkhorstspruit, a popular weekend
get-away destination for executives and their families due to its close proximity
to Johannesburg and Pretoria.
Situated in Fiddes Street, Bronkhorstspruit, the office, known as RE/MAX In
Action, will cover the Bronkhorstspruit and Kungwini areas.
"With more than 20 years experience within the property field, Louis van
Zyl, Broker/Owner of RE/MAX In Action brings invaluable skills to our team.
We are delighted to welcome him to our family," says Adrian Goslett, CEO
of RE/MAX of Southern Africa.
Van Zyl, who firmly believes that passion for property, professionalism and
personality differentiate one real estate agent from another in a highly competitive
industry, says that the property market in the area has performed fairly well
in what is still regarded as a tough industry to operate in.
Commenting on property prices in the area, van Zyl says that entry- and mid-level
homes reach anything between R500 000 and R800 000 while top-end properties
start at R1.2-million. He adds that there is currently a big demand for vacant
land and rentals.
New developments of note include a beautifully designed Tuscan Village, boasting
approximately 250 two- or three-bedroom townhouses in a 24-hour security complex
and a power plant and mine, situated approximately 20 km from Bronkhorstspruit.
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23 April 2010, 09:21:47
 One
of Bishopscourt’s best known – and grandest – homes is back on
the market at a price of R36 million. The agents are Anne Porter Knight Frank.
The home, Fairseat, belonged to the Porter family for over 35 years but was
subsequently sold and has had various owners.
It was bought by Allan Porter who planned to re-establish it as the focal point
of the Porter clan.
“It has always been one of the most impressive homes in the precinct,”
said Lanice Steward, MD of APKF. “It was recently modernised and extended
with a new open plan living, dining, kitchen and serving section leading onto
all the health and recreation facilities that any industry leader with a liking
for entertaining could want: a lap pool and a Jacuzzi, an alfresco dining patio,
tennis and squash courts and a fully equipped gymnasium with a steam room.”
The home now has 700m² of floor area. Its façade incorporates two
ornate but authentic Cape Dutch gables. The garden covers a full 6 246m²
and offers complete privacy.
There are no less than eleven bedrooms, all with en suite bathrooms as well
as three separate guest apartments and numerous reception areas, including an
entrance hall, which has a sweeping staircase with stained glass windows and
a formal oak panelled dining room with a pressed metal ceiling and a fireplace.
Among the extra facilities offered by this “ambassadorial” mansion
are a large wine cellar, a library (with bookshelves created by Pierre Cronje),
a billiard room (with a full size billiard table), a children’s nursery
cum playroom and garages for six cars.
“Time will show that anyone buying this magnificent property will have
got it at a bargain price,” said Steward. “Our Knight Frank associates
in the UK are selling similar homes at £4 to £10 million –
or more – despite the recession but it has to be seen to be fully appreciated.”
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23 April 2010, 09:10:34
Sales director said Asrin’s “strengths” now working to its benefit
As recent reports from bank economists have confirmed, SA residential housing
developers are once again looking for sites and planning the first new launches
after 18 to 24 months.
The Cape based Asrin Property Developers have two further and final phases
on the go at its Melkbosch Village in Melkbosstrand and have been achieving
a steady flow of sales at their Eden on the Bay, Somerset West and other developments.
Shiraaz Hassan, Asrin’s Marketing and Sales Director, said that some of
the group’s strengths are the ability to carry out in depth market research
and to position itself strategically in its markets.
“We have kept close track of demand and market trends and it is now clear
that in much of the Western Cap there is a particularly strong need for homes
in the R350 000 to R800 000 bracket.”
What is limiting development here right now, he said, is that some 50% of bond
applications are still rejected because the applicant is counted out either
on his earnings level or his credit profile – any lapsed payments in the
past and/or any indications of being an unreliable employee will result in the
application being turned down.
These appraisals, said Hassan, are particularly tough when the applicant wants
a 100% bond – as most in the affordable sector do.
Nevertheless, he said, Asrin is still ranked among the top residential developers
at the Cape and by mid 2011 they are likely to have some 800 opportunities either
already launched, or in the production line.
Another of our strengths is our versatility. We have experience in all price
levels from low priced R350 000 homes to R10 million apartments. This will stand
us in good stead as the market improves.”
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23 April 2010, 09:10:14
A host of Aida Pretoria East agents celebrate their NQF4 certification.
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The last group of agents in Aida’s large Pretoria East office who still
have to achieve the mandatory National Qualification Framework certification
is signing up in April.
“A total of 25 of our 30 agents has completed their courseware and these
agents are now fully qualified in terms of the new requirements,” says
office manager Helen Taylor, a stalwart in the estate agency industry with nearly
40 years of experience. “I doubt there is any other real estate office
in the country with so many qualified agents,” she adds.
All agents have to obtain the NQF4 qualification by 2011 in order to work as
registered real estate agents.
“It is encouraging to see our agents - young and old - embracing the new
requirements with such enthusiasm,” says Taylor, who adds that in spite
of her decades of experience she personally found the courseware “tremendously
beneficial”. She was among the first group of agents countrywide to obtain
the new qualification in 2006.
Taylor says the required qualification is a great step forward in the process
of raising industry standards . “It will improve the industry’s image
among property consumers and lead to higher confidence in agents’ abilities
and service levels,” she says.
“And arguably the most beneficial aspect is that it will purge unscrupulous
or untrained operators from the industry, allowing remaining agents to take
pride in their profession. Professionally trained agents are justified in viewing
their profession as one of the most ethical – it is the only profession
where all services are free until a transaction is successfully concluded,”
she says.
“The qualification is also of tremendous benefit for young agents in that
it boosts their self-confidence and improves their knowledge and abilities,
while more experienced agents benefit from reviewing basic real estate agency
principles.”
Taylor adds that several Aida Pretoria East agents have enrolled for their
NQF5 qualification, which will enable them to operate as principal agents.
Issued by Aida National Franchises
Aida head office: 012 682 9600
Contact: Young Carr
Aida Pretoria East: 012 348 3720
Contact: Helen Taylor
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16 April 2010, 09:49:29
The RealNet property group has opened a new office to serve property consumers
in a vast area between Mogale City and Pretoria South and beyond Magaliesburg
to the north.
The franchise has been awarded to Eben le Roux and Hanneleen Roos, both stalwarts
in the RealNet stable. The pair opened their first RealNet office in Constantia
Ridge in 2008, followed by the adjoining Weltevredenpark area just a year later.
“We started our business in probably the most challenging times the real
estate market has ever seen, but through attention to basics, applying sound
business principles and adhering to RealNet’s values we have gone from
strength to strength,” says Le Roux.
“We saw great potential when the franchise in the magnificent Cradle area
became available and having identified a top manager and business partner in
André van Niekerk, we had all the elements for another successful real
estate office,” he says.
Van Niekerk says rural businesses, residential and agricultural properties,
as well as peri-urban estates in this region will receive specialist attention.
“The Cradle has property listings to suit most tastes,” he says,
“from a historical landmark property in Maloney’s Eye on 400ha of
prime Highveld land at R15m, to the affordable, attractive, modern, and secure
townhouse and cluster developments in Pine Haven Estate.”
He adds that holdings in the semi-rural regions are in high demand. “Luxury
modern homes on properties ranging from 2 tot 5ha are available on the Oak Tree,
Steynsvlei and Muldersdrift agricultural holdings within 20 minutes of the Sandton
CBD and with easy access to the N14, while efficient, sustainable smallholdings,
that provide excellent value for money and a small-farming lifestyle, are available
in the Tarlton area. Holdings surrounding the Krugersdorp Game Reserve are just
10 minutes’ drive from the centre of the vibrant small town.”
RealNet The Cradle offers agricultural know-how specific to the area, he says.
“We are conversant with the water availability in specific regions and
can advise buyers on the best cash crops per area while our network will put
clients in touch with the right people for the right advice to help them make
the ideal property investment.”
Prices of smallholdings range between R800 000 and R12m for units of between
1 and 5ha while prices of larger holdings and small farms range from R900 000
to R10m. Guest houses, lodges, resorts and boutique hotels are selling at prices
of between R2m and R25m and stands of between 1000 and 1500sqm with luxury homes
in eco and wildlife estates at Kromdraai from about R2m.
Townhouse and cluster units in residential estates such as Pine Haven sell
from R600 000 to R1,5m while full-title units are available at prices of between
R1,5m and R4,5m.
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16 April 2010, 09:48:46
Surprisingly, it quite often happens that when estate agents draw up a deed
of sale in which there are suspensive conditions, they omit to include a date
by which these must be fulfilled.
Lanice Steward, Managing Director of the Cape Town agency Anne Porter Knight
Frank has pointed out that in a recent high court case Reddy v Govender, this
omission had a crucial effect on the final ruling.
The buyer, Govender, made the purchase of a R420,000 property subject to obtaining
a bond from a financial institution. However, no date was stipulated as to by
when this had to be achieved.
When after one month’s wait the buyer still had no bond, the seller, Reddy,
announced that that she was cancelling the agreement because a reasonable amount
of time, in her opinion, had passed for the buyer to fulfil this condition –
one month is a normal time in most deeds of sale for this.
The argument, therefore, in the end hinged on whether the four or five weeks
that had lapsed was reasonable or sufficient time to raise such a bond.
In its decision the court referred to several cases including one in 1979 in
which the judged had ruled that “this type of operation” can be time-consuming
and that the appellant had not proved that the defendant had had enough time.
Much the same argument, the court ruled, could be put forward in this case.
The judge also ruled that there was insufficient evidence that the appellant
had kept the defendant informed of her need for speed and her intention to sell
elsewhere if the conditions were not met on time.
“The lesson to be learnt from this case is that not only should the contract
stipulate a cut-off date by when all the suspensive conditions should be met,
but, in addition, all subsequent attempts to communicate with the buyer by verbal
or other means should have gone into the record. Apparently there had been several
efforts of this kind but there was no proof of them. The buyer, was therefore
given an extension of time to get a bond.”
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16 April 2010, 09:48:09
The new Notebook licensing concept recently launched by the Chas Everitt International
property group is catching on like wildfire among top-performing agents and
independent estate agency principals.
“We have issued more than a dozen Notebook licences in the past few months,”
says Barry Davies, the group’s director of franchising, “in areas
as diverse as Rustenburg, Bloemfontein, Walkerville near Johannesburg and Montagu
in the Southern Cape, as well as Witbank and Brits.
“We also have several Notebook operators in the Cape Winelands, including
the latest to sign up, Reon van der Merwe, a seasoned principal whose very successful
agency specialises in sales in the luxury Boschenmeer and Val de Vie estates
near Paarl.”
Another new Notebook licensee, he notes, is top agent Christiaan Steytler,
who is well-known for his many years of outstanding sales in Constantia and
has now decided to open his own office in McGregor.
The Notebook system is specifically designed to accommodate agents and principals
who are strong in their local markets and wish to trade for their own account
but under a national brand.
“The model is predominantly aimed at smaller franchise and rural areas
where traditional franchise and set-up costs are prohibitive relative to market
size,” Davies explains. “The Notebook licence grants an operator the
right to use the Chas Everitt International brand, its systems, websites, marketing
material and training within a defined area at an affordable entry and operational
cost.
“Substantial savings are also made because Notebook licence holders do
not necessarily operate from formal office premises or have to hire administrative
staff as our state-of-the-art business systems allow them to manage their own
transactions.”
New licensee Steytler says: “The Notebook model was the obvious choice
for me. It’s more affordable than a franchise but you still have all the
benefits of a franchise and a very strong brand. It’s perfect for top agents
who want to be in control of their own business but don’t want to run a
full-on real estate office with the hassle of managing other agents’ activities
and production.
“And the Chas Everitt systems are fantastic. It’s amazing how many
‘tools’ the group offers to help agents get the deals done and manage
the follow-up adminstration.”
Davies says the Notebook model has also elicited a lot of interest from agents
in townships who previously had few options in terms of business ownership “and
who see this as a great way to gain access to a top brand”. The Services
Seta has also evaluated the system and endorsed it as a method of new business
creation.
Issued by Chas Everitt International
For further information call
Barry Davies on
011 801 2500 or visit
www.chaseveritt.com
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09 April 2010, 10:20:09
Although a fairly high percentage of sectional title schemes in South Africa are
poorly run and even heading for big debt and maintenance problems, there is, says
Michael Bauer, General Manager of IHFM, which specialises in sectional title management,
a marked reluctance among sectional title property owners to attend the all-important
Annual General Meetings at which difficult matters can be sorted out.
“What many owners do not realise is that, if they are not capable of attending,
they are allowed to appoint a proxy – and this should be done, because
it is a right each owner has and he should use it to ensure a fair outcome.
If a sectional title scheme has problems they should be known to the unit owners.”
The Prescribed Management Rules, says Bauer, say that the proxy’s appointment
must be in writing and must be handed to the chairman before the meeting (a
late posting excuse is not acceptable).
Anyone except the managing agent and/or his/her employees can be a proxy.
There are two types of proxies and it has to be specified which votes he or
she can make. An ‘open’ proxy allows the proxy to vote on anything
on the agenda at his or her sole discretion. The ‘directive’ proxy
limits the proxy to the directions given by the owner.
In South Africa, says Bauer, the Sectional Title Act defines no limit to the
number of proxies an owner can hold when attending an Annual General Meeting.
It can, he repeats, make a big difference to the wellbeing of a sectional title
scheme, if owners attend the Annual General Meeting in person or by proxy.
For further information contact Michael Bauer on 083 255 4442 or visit www.ihfm.co.za.
IHFM have a weekly online newsletter covering sectional title and property matters
that will be supplied on request.
FeedBack (6)
09 April 2010, 10:19:49
The prevailing opinion that the recent 0,5% drop in the interest rate (taking
it down to 10%) will not boost property sales much further could well be pessimistic,
says Mike Greeff, CEO of Greeff Properties, one of Cape Peninsula’s agencies
to have grown by over 10% in the last year.
“It may be true,” said Greeff, “that from a financial viewpoint
the lower rate’s effect will not be that noticeable – but from a psychological
perspective it will have a profound impact.
“Since August last year optimism and confidence have been steadily on
the increase in the property sector – and we have seen this in our sales,
in the number of visitors to show houses and, to a lesser extent, in the hit
rate of those buyers applying for bonds. This lower interest rate will cap the
other factors which have led to the market being so much more positive despite
the economy and despite the banks’ reluctance to fund home buyers.”
Greeff predicts that by early 2011 the average Cape Town Southern Suburbs and
Atlantic Seaboard home will have undergone a 12 to 14% increase in value. The
latest FNB house price index published recently already shows a March year on
year growth figure of 8,6% - which is a national figure.
“We know that prime areas will show a better growth. We expect “normality”
in trading conditions to be achieved by mid-2011, said Greeff.
FeedBack (0)
09 April 2010, 10:18:17
The Cape residential property market, already on an exciting recovery path (with
sales rising monthly) will be given a further boost by the unexpected but welcome
0,5% drop in the interest rates, says Anton du Plessis, CEO of Vineyard Estates,
which is currently enjoying its most successful quarter since 2006.
“This move by the Reserve Bank indicates that they understand only too
well the dampening effect that the electricity rates and fuel price rises will
have on the country’s growth but they are determined to fight this as much
as possible – which is exactly what many economists and most in the property
sector have asked for,” said du Plessis.
He added that the Cape residential property market has, in his view, gained
a new momentum all of its own and this will result in price rises of 5 to 10%
by the end of this year.
“Much of the hesitation and holding back that we experienced last year
has now disappeared,” said Plessis. “We are back to the activity levels
of 2005”
Just how significant a 0,5% drop in interest rates is for the average Cape
Town Southern Suburbs buyer can be seen on a R3 million bond –the monthly
payments will be reduced from R29 951,39 to R28 950,64, a difference of just
over R1 000. Many middle class buyers are also financing two vehicles as well,
so the monthly savings are significant, said du Plessis.
“Another factor well worth considering is that, although small, the drop
in interest rates has a bigger effect on sentiment and confidence, which translates
into greater market activity,”
FeedBack (0)
09 April 2010, 10:17:25
In a recent case heard in the KwaZulu Natal High Court, the lessee of a property,
who claimed that in terms of his lease agreement, he had an optional right to
buy it, was ruled against by the court on the grounds that the description of
the property in the lease agreement was imprecise and likely to lead to confusion.
Mike Greeff, CEO of Greeff Properties, has pointed out that this is one of
a number of cases heard over the last few years in which a lack of clarity in
the documentation scotched the appellant’s case.
“The Alienation of Land Act of 1981,” said Greeff, “stipulates
that all the terms and conditions of the sale have to be in writing and have
to be clear. In property law there can be no “understandings” or verbal
agreements as there can be in other transactions.
“My impression of this KZN case is that the appellant had a strong case
but this fell through because the description of the property in the lease did
not coincide completely with the description in the title deed. In fact, as
the judge said, “an exact and precise description of the property sold
was absent – making it non-compliant with the Alienation of Land Act”.
The lesson to be learned, said Greeff, is that legal documents relating to
property have to be 100% accurate and have every clause or condition in writing.
FeedBack (2)
09 April 2010, 10:15:43
Graham Leslie, the Managing Director of Greeff Properties, one of the Cape Peninsula’s
high profile estate agencies, has drawn attention to an article in Fairbridge
Attorney’s newsletter.
In this it is reported that the courts are now more inclined to interpret the
provisions of the National Credit Act in favour of those whose homes the banks
try to repossess, particularly if they are from disadvantaged backgrounds.
“In four cases,” said Leslie, “the homeowners were low income
earners and in most cases they had paid their bond payments regularly for 13
to 19 years. Equally important, their properties were now more valuable than
the outstanding balances.”
Judge Claasen commented that the arrears were of little significance to the
banking institutions and the suffering of the homeowners if they had their homes
taken from them would be far more serious than the temporary losses of the banks.
Although the thwarted banks could now institute actions for debt recovery in
the Magistrates Court, the judge ruled that they first have to be served personally
with a copy of his judgement and informed of their rights and benefits under
the National Credit Act.
Leslie said that, where no estate agent wants to see defaulting bond payers
regularly let off the hook, the latest stance by Judge Claasen is to be welcomed.
“Where bondholders have fulfilled their obligations over a long period,”
he said, “and where their problems are probably caused by the recession,
the banks have to be more reasonable than some now want to be. Let us not forget
that worldwide it was reckless lending that was at least partially responsible
for the global crisis.”
FeedBack (0)
09 April 2010, 10:14:50
The publication each year of the Knight Frank/Citibank Wealth Report is always
carefully studied by the world’s economists because the views of the top
2% to 3% of the world’s highest net worth individuals canvassed for the
survey are generally better informed and closer to reality than most, says Lanice
Steward, MD of Anne Porter Properties, Knight Frank’s South African associate.
“In the circumstances,” she adds, “it is encouraging to be able
to report that this group of individuals is a great deal more bullish about
property prospects than they were last year. In almost every aspect the latest
report is an encouragement to invest.”
The survey reveals that among HNWIs worldwide, property remains their number
one investment channel, responsible for 33% of the average portfolio (equities
come second at 24% with cash and bonds together taking up 20% of HNWI portfolios)
Equally significant, says Steward, is the fact that whereas 29% regarded 2009
as an inauspicious time to invest in property, 71% believe 2010 will be a good
year to do so and the majority concur that residential property should take
the highest share of the portfolio (with commercial running second).
Exactly 50% foresee residential property being the best performing of all asset
classes in 2010. (By comparison property funds and REITS are regarded as good
appreciating assets by only 10% of those surveyed.)
The capital growth potential of property is seen by most as more important
than its yield. Not surprisingly, therefore, the majority rate the host country’s
likely economic performance and its reputation for good governance as the first
consideration to be taken into account before investing in property there.
“Factors such as transport links and closeness to schools, which are of
such great importance to the average buyer, are hardly considered by these international
investment buyers,” said Steward, “but political stability, design,
views and security are all rated in the top factors which influence their choices.”
The survey shows that international buyers rely heavily on direct contact with
agents for advice but trust their own expertise above all else. In making a
final decision they trust their own judgement ahead of the views of their banks,
their financial consultants, the media or the internet.
So, what does this all add up to? A staggering 63% said that in 2010 they would
be adding at least one secondary residence to their portfolios and 53% said
they would use some form of loan to help them do so.
“This is the most solid evidence yet that the recovery is in full swing,”
said Steward.
Although the names of areas were not specified by those in the survey, it is
clear from the KF/Citibank survey that the really favoured top performing properties
are now those in Asia. Rental and price growth in Shanghai, Hong Kong and Tokyo
has been five to ten times higher than that in London or New York – although
New York has now overtaken London as the world’s top ranking city from
a property asset perspective.
Steward commented that there is a close link between confidence in property
and confidence in the country as a whole.
“The group surveyed control a healthy percentage of the world’s wealth
and have influence far beyond their own spheres. Any politician wanting to attract
investment should take note of how and why they act. If we can attract their
business to SA, all would benefit, not just property dealers or developers.”
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01 April 2010, 07:42:21
Although the residential property sector in the Greater Cape Town area is now officially out of its recession, developers are still struggling to get new projects financed and launched, says Heather Cape, Greeff Properties New Developments Sales Manager.
“The main difficulties,” she said, “are that buyers still battle to get bonds and the developers are still unable to get funds for new projects, even when a very high percentage of pre-sales have been achieved.”
Greeff Properties, said Cape, now has on its books several hectares of potential development property throughout the Cape Peninsula and further afield which are suitable for projects - but very few takers.
In many cases, said Cape, the land has come onto Greeff Properties’ books because the current developer/owner has been unable to go ahead. In some cases the rezoning and plan approvals are already in place and the owners may be open to joint venture proposals.
“Where landowners are going for an outright sale,” said Cape, “there is still a tendency to work on pre-2009 values. As a result, many of the property developments that Greeff would like to have handled have become too expensive for the present market.”
Greeff Properties’ development team, said Cape, can, however, play a useful role in putting together potential joint venture partners, sellers or buyers for many opportunities that still exist.
Asked where these deals are most likely to occur, Cape said that in the Cape Town Southern Suburbs and on the Cape Flats sectional title units are very much in demand in the price bracket of R350 000 to R1,2 million.
Developers who are looking for land, she added, tend to be reluctant to wait for rezoning and/or consolidation approvals. This is because the preliminary planning stages can take at least a year and will usually be followed by another year’s wait to get the plans passed. In some cases, developers also have to deal with objections from concerned parties and neighbours.
“One of the most promising of the current opportunities,” said Cape, “is a security village on a site in Rondebosch. This site ould take ten units selling for around R2 million each. Its position will ensure that it will be very popular to investors.”
“A number of different sites in Camps Bay are also ripe for development. This is one of the fastest appreciating areas in the Cape and very much in demand with both local and foreign buyers.”
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01 April 2010, 07:40:12
If you are having difficulty renting a house or an apartment, consider seriously
furnishing it.
This is the advice of Tony Clarke, MD of Rawson Properties, but, he adds, although
he can testify from personal experience that furnishing can quickly lead to
the unit being let, it is essential to avoid the danger of overstocking the
home.
“Furnishing a home,” he says, “should not result in its being
cluttered.”
Stocking a home with the necessary furniture, he says, need not be expensive.
“Most families and their next of kin have three or four items of furniture
that they do not need and are only too willing to hand it over. Many an attractive
rented property has been fully furnished from family stock.”
An interior that is already furnished, says Clarke, will lose its bare, uninviting
look and will draw in tenants, many of whom these days do not have the spare
cash to buy furniture, especially if they are young married couples.
Furnishing a home for rental, says Clarke, often enables the landlord to charge
15% more than would be acceptable for a bare home and it gives the home a feeling
of comfort and welcome which enhances its chances of being let.
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29 March 2010, 13:08:00
BOND ORIGINATORS HAVE STREAMLINED APPLICATION PROCESS, SAYS APKF MD
Bond originators, who have been serving the residential home market for eight or nine years, have played a transforming role in making the bond market more competitive and in easing the work load of estate agents, says Lanice Steward, MD of Anne Porter Knight Frank, the Cape Town Southern Suburbs and Atlantic Seaboard estate agency.
“Those new in this business have no idea of the time that agents spent in approaching banks and liaising with the client to fill in application forms to four or five banks.”
“This work,” said Steward, “could easily take up 20% of their time.”
Bond originators, said Steward, have created a one-stop shop for the client and agent and made it possible for him or her to build a trusting, worthwhile relationship which results in their getting the right advice, complying from the outset with the National Credit Act regulations and receiving the best deal their financial circumstances will permit.
“In the old days,” said Steward, “many bond applicants simply accepted the first offer made to them, often working through their own banks. Needless to say, that was frequently not the best deal they could have signed. Since the advent of bond originators, the bond market has been a great deal more competitive.”
The banks, for their part, may well have thought that they were “losing out” because of having to pay commission fees but they should bear in mind that the originators have taken a big burden off their shoulders and enabled them to operate with smaller consulting and administrative staff.
Furthermore, said Steward, in today’s market, where the NCA conditions for being granted a bond are so tough and the global crisis has made finance so difficult to get, the bond originators have been innovative and resourceful in finding ways through the restrictions.
“Their contribution has to be welcomed: the more we can get South Africans to be homeowners, the better for the country.”
Steward said that certain banks are reluctant to not deal with a bond originator on a 100% bond. This, she said, is understandable. At present only 5 to 10% of 100% bonds are successful.
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29 March 2010, 13:06:14
2010 IS PROVING A GOLDEN YEAR FOR ANTON DU PLESSIS
Debate in the property world has long been lively on the subject of whether the best performers in the sales and marketing sector are likely to be the big gun agencies (with impressive support and referral systems, big advertising budgets and ongoing training programmes) or the small, highly motivated one and two man bands that can so often surprise the market with excellent achievement.
Anton du Plessis, CEO of Vineyard Estates, is very definitely in the latter category. He has a receptionist, a PA and has just appointed Thys Human, a former international flights Boeing pilot to assist with sales in Constantia. That is his only staff – and he does all the selling himself.
Du Plessis in a 12 day period in late January-early February notched up no less than seven sales, all of which are now going through and all of which were within 4% of the asking price, an achievement which, says du Plessis, he has not seen at any Cape estate agency since 2007.
The total sales value of the houses concerned was over R40 million and the homes sold were in a range from R2,9 to R8,8 million. All were in the central Southern Suburbs of the Cape Peninsula which, says du Plessis, have withstood last year’s downturn far better than most SA residential precincts. “The benefits of being a solo operator,” said du Plessis, “are that not only are your overheads low, but also that you can make quick decisions to help push through a deal – without having to refer to a senior.
“For example, I can in some instances reduce my commission because I know that I will be handling other deals for the same client.
“Then again, I have once or twice paid part of the conveyancer’s fee to help the client stay within budget or have agreed to a six month delay in payment.”
On one occasion, he said, he undertook (in writing) to deal with any beetle rot problems that exceeded a cost of R2 000 – and this clinched the deal. This year’s amazing upswing in sales, said du Plessis, is, in his view, partly motivated by 2010 soccer hype and it fulfils a prediction he made earlier that the shorter school holidays would see the property market take off earlier than expected.
But, added du Plessis, there is more to it than that.
“Long experience in this game,” he said, “has shown that the start of a new year invariably ushers in either a bull run or a period of negativity.
“My impression is that property buyers and sellers really being analysing the pros and cons while on their summer holidays. Until then they are often preoccupied with other matters – but over the break they decide one way or the other.
“Fortunately, it is now clear the long negative period of 2009 is no longer in fashion – suddenly everyone wants to jump onto the wagon and all the indicators are that this will continue.” The big question facing agents, added du Plessis, is what will happen over the World Cup period. Will this result in people becoming so engrossed in what is going on that they lose sight of business or will it stimulate optimism and a desire to buy?
“Right now we do not know the answers but it is significant that several CEOs of property companies have said that hey are budgeting for a ten month year – they see June and July as lull periods. “I myself am still very optimistic: we have another four deals in the pipeline, one over R20 million.”
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29 March 2010, 13:05:27
RAWSON AUCTIONS LIKELY TO BE HANDLING REPOSSESSED BANK STOCK
Rawson Auctions, established towards the end of last year, has already diversified its portfolio, says the CEO, Tanya Jovanovski.
“We are now taking on commercial properties as well as residential.”
Jovanovski added that in the current hard-hit market the challenge is not so much to find residential and commercial properties for auction – “there is a great deal available”- but to select those which have the most potential for growth. Rawson Auctions, she said, are in touch with certain banks and will soon take on carefully chosen properties for auctioning. In most cases these have been repossessed, but some are simply for sale as part of the banks’ strategies to offload fixed assets.
“We are confident that buyers will through our auctions be able to capitalise on good opportunities and gain sound investments at discounted prices – especially as, on bank properties, the outstanding rates, levies and service bills will have been paid by the banks, who are also able to offer discounted transfer fees. For further information or to be included on the investor database email Tanya Jovanovski on tanya@rawsonauctions.com or contact her on 021 658 7100.
29 March 2010, 12:49:04
 Tough economic circumstances have forced many estate agents out of business - but the cream of the crop have seen the downturn as an opportunity to hone their skills and improve service delivery.
So says Aida CEO Young Carr, who notes that many Aida agents continued to achieve sterling sales results even during the recession last year by focusing on their clients and providing excellent service.
A case in point is Centurion agent Lawrence Pearce, who faces the added difficulty of working exclusively in closed estates in Amberfield where overt canvassing is prohibited, but still sold 20 properties with a combined value of R19m last year.
“This would be an excellent performance even in good economic times,” says Young, “and shows that consumers always respond well to good service, no matter what the circumstances. And Lawrence certainly provides this through a combination of scrupulous attention to detail in meeting his clients’ needs, and interesting and pro-active marketing ideas.”
Pearce says: “One can of course only provide a good service once consumers are aware of what you have to offer. My challenge last year was to make potential clients aware of my services while adhering to the marketing restrictions prevailing in Amberfield.
One particularly successful campaign, he notes, was the use of magnetised match boxes featuring a photograph of himself, the Aida logo and the slogan “Strike it lucky with Lawrence” that he handed out during the worst of Eskom’s load-shedding. “The idea was that homeowners trying to light candles or lamps during a power outage could easily locate a box of matches stuck to the fridge – and that I could thus ‘lighten’ the experience while illustrating Aida’s commitment to service even in the most trying circumstances.”
Pearce adds that relentlessly “doing all the basics” has also played a decisive role in his success. “I show two or three houses every weekend without fail, service and maintain my advertising boards several times a week, keep a database of all stock and update it daily, and maintain a record of every transaction’s progress so that I can keep clients updated.
“The rest is just plain hard work. I think that to be a really successful agent you have to be like a tow-truck driver – on the go and available 24/7 so that prospective clients can reach you at their convenience.”
Issued by Aida National Franchises
Aida head office: 012 862 9600
Contact: Young Carr
Aida Centurion: 012 654 7276
Contact: Lawrence Pearce
Caption:
Lawrence Pearce of Aida Centurion sold a whopping R19m worth of property in trying circumstances.
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24 March 2010, 09:40:27
C3 Shared Services wins the bid to install and commission the perimeter security solution for
Blue Valley Golf and Country Estate.
March 2010, Gauteng - Named for the blue skies and open country of its surroundings, Blue Valley Golf and Country Estate is a perfect blend of hospitality, sport and nature. Situated conveniently between northern Johannesburg and Pretoria, this Gary Player residential golf estate offers a location second to none in the Gauteng area. Recently, the estate has chosen to implement a combination of thermal cameras and intelligent video analytics, technology endorsed by the Israeli defence forces, as their perimeter security solution.
C3 Shared Services, specialists in the design and implementation of high-end perimeter security solutions and military grade intrusion detection systems, has been appointed as the preferred vendor to supply and commission the new state of the art perimeter security solution. Mark Cowley, Chairman of the Blue Valley Security Sub-Committee, says “After many years of deliberation and 'shoot outs' between potential vendors over which camera system to install, we finally settled on C3 who were able to demonstrate excellent product knowledge and solutions. We have not been disappointed since installing the first phase of a trial of their solution”. The first phase has comprised of a total upgrade of the existing control room and the implementation of EVT IP video management platform of which the existing analogue cameras have been integrated. The EVT video management system will be integrated with the thermal cameras and analytics on the perimeter making for a very high end and sophisticated command and control room.
Like many other residential estates Blue Valley had implemented conventional security measures to secure the estate, such as electric fencing with zone indication of intrusion detection, roving guards, reaction vehicles and a central control room. Whilst these are still standard and traditional methods of security, many estates are finding that these are NOT sufficient when it comes to preventing and detecting intrusions. The perimeter of Blue Valley is approximately 7 km’s and they needed a system that would give instant visual verification as to the cause and position of any breaches in the perimeter day or night without the need for additional lighting to be erected. A combination of static and PTZ thermal cameras combined with analytics will be strategically placed along the perimeter as part of Phase two. Once complete, Blue Valley will be equipped with one of the most advanced and sophisticated perimeter security systems in the country. Nick Grange, Technical director of C3 says, “We are truly honoured to have been appointed to install and commission our security solution for this prestigious Gary Player golf estate. Once again, our technology has proved to be superior in performance, quality and also flexibility in catering for the client’s requirements”. Nick goes on to say, “In South Africa there are many estates claiming to be ‘secure’ whilst they employ outdated methods of security. Blue Valley will be able to advertise a truly secure environment for their residents once our system is in place”.
To date, C3 Shared Services (Pty) Ltd has had enormous success with numerous installations of thermal cameras combined with high performance analytics on various sites in South Africa such as residential estates, refineries, correctional facilities, car showrooms and National Keypoint’s and recently, the Gautrain project. For further information visit www.c3ss.com
About C3 Shared Services (Pty) Ltd: C3 Shared Services (Pty) Ltd is the only applied business partner for ioimage ,Opgal Optronics and EVT in Sub Saharan Africa and specializes in the design and implementation of high-end perimeter security solutions and military grade intrusion detection systems. C3 Shared Services' directors have been involved in providing integrated electronic solutions for more than a decade; and as a result bring both a comprehensive and extensive wealth of knowledge in providing effective and working perimeter security solutions for high risk and high value areas.
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19 March 2010, 14:27:53
RE/MAX Frontier Properties in Grahamstown is proud to announce that they have been mandated to sell a golf course built on a private farm by means of auction. The property will fall under the hammer of seasoned auctioneer Dave Mullins on Wednesday, 24 March at 11:00.
The 9-hole golf course with 18 tees, all under irrigation, forms part of a 296ha farm, which includes two title deeds, a 600m2 house, numerous outbuildings and a 250 000m3 dam. “A further 40ha could be developed for irrigation, and the farm has huge potential for eco-tourism,” says David Rodgerson, Broker/Owner of RE/MAX Frontier Properties in Grahamstown.
Situated 35km from Grahamstown on the N2, the property is close to some of the Eastern Cape’s most popular malaria free game farms.
“Auctions, if correctly marketed, are a very viable alternative to standard private treaty sales,” notes Rodgerson. Upcoming auctions in the area include one of Grahamstown’s landmarks, Phoenix Roller Mills and a popular bed and breakfast establishment.
For further information contact David Rodgerson on 0825647076 or Jean Rodgerson on 08287720396.
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19 March 2010, 13:46:06
THE FUTURE OF PROPERTY
The Nedbank Property Association Roadshows gave property professionals a sneak peak into the future of the market, and tips and tricks to make the most of the opportunities that 2010 will bring
The Nedbank Property Association Roadshows, which were held in major regions around the country earlier this month, were once again well received by the real estate community, with over 2500 agents in attendance.
Rudi Botha, Convenor of the Property Association, opened proceedings with the picture of a rather ragged looking rooster that had certainly lost some feathers. For Botha, the picture summed up the property market’s performance in 2009 perfectly. But, he said, we need to move forward, and as custodians of the real estate industry, in fact the only national body to recognise real estate professionals across the different brand denominations, the Property Association is committed to promoting the image of estate agents/property professionals to the consumer and adding value to real estate professionals in 2010.
Botha also said the Property Association wants to celebrate success in the industry and reward those who have worked hard to earn it. He encouraged estate agents to enter the annual Nedbank Property Professional of the Year awards, to be held in September, where the industry’s top achievers are recognised and rewarded each year.
The 2009 Nedbank Property Professional of the Year winners, Joel Harris and Michael Mosselson of Firzt Realty, presented a short motivation for success at the Gauteng events. Perhaps one of the most profound statements in the presentation by Harris was a quote from Victor Frankl: “In the Auschwitz concentration camp, I discovered the ultimate human freedom, the ability to choose your attitude irrespective of circumstances.”
Harris summed up by saying that life is about being:
Clear on the cost and be willing to pay the price that goes with it
Having a support team that believes in you
An organisation that keeps the focus clear
Investigating all your options and playing the movies to the end
Coming to grips with my dreams (the most powerful motivator) and
Emotional stamina
Nedbank’s chief economist, Dennis Dykes, gave some sobering insight into world economies, which, while they are showing signs of recovery, are a long way off from where they used to be. Dykes believes that property markets, both domestically and internationally, appear to be on the mend as the effects of the financial market crisis abate, however, while recovery may be underway and the outlook positive, it will be a slow one that could be adversely effected by many different factors. However, the good news, as presented by Dykes, is that South Africa is fairing exceptionally well. Dykes noted that South Africa has been higher in output over a three year period than developed world economies in terms of GDP, and he expects the country to show a 3,2% growth rate in the fourth quarter of 2010.
Some uplifting comedy and motivation, much needed after a relatively flat economic outlook, was the order of the day when key note speaker, Vusi Thembekwayo, took to the stage. His self-inspired talk, Big Mama & the Horse, bore relevance to everyone who attended the Nedbank Property Association Roadshows. He spoke of the dangers of “the eye of the tiger” approach, where you just keep looking straight ahead and go in without looking around you to consider alternatives or different methods of approach.
This is a sentiment echoed by Botha, who believes the estate agents most likely to succeed in the years ahead are the ones who can take stock of the environment around them, assess how it is changing, and adapt appropriately to the new and unique needs of their clients.
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18 March 2010, 16:53:15
The massive drop in the numbers of estate agents employed (from over 90 000
in 2007 to under 35 000 today) has reinforced the fundamental lesson that it
is impossible to survive tough times in this business if the agent is not capable
of “forging a relationship with his clients”, says Simon Raab, Southern
Suburbs Sales Manager at Greeff Properties.
“The boom in property that preceded the slump enabled many unprofessional
agents to make a living even though their knowledge and service were substandard,”
said Raab. “Those who have survived are the ones who understand what it
really takes to create a trustworthy, ongoing relationship with the client.”
So – what does it take? What are the factors leading to ongoing success,
even in a weak market?
Raab said all good agents have two attributes: they have accurate, up to date
factual data always at their fingertips (and when short of information, they
know where to find it) and they are good communicators.
“Nothing impresses a client, whether he is a buyer or seller, as much
as a factual, scientific analysis of the market in which he operates. Once he
knows that the price suggested by the agent is fair and market related, he will
relax and start to trust his agent.
“Conversely, if the client has any reason to suspect that the agent may
not have done his homework and is thumb-sucking the valuation, the relationship
will sour.”
Occasionally, says Raab, a perfectly trustworthy, accurate valuation will not
be accepted by a client – but in most such cases three months later he
will either realise his mistake – or lay the blame on the agent for not
trying hard enough.
“Clients of this sort are invariably their own worst enemies and should
be avoided,” said Raab.
The second attribute, he added, of top agents is that they communicate with
their clients on an ongoing basis.
“When a house is up for sale or when no new homes are available there
may be lulls in activity. These can lead the client to believe he has been forgotten.
The good agent will provide regular feedback immediately after he has taken
potential buyers around the home.”
Good agents, Raab added, also recognise the value of cultivating an agent network
and referral system and will happily pay out referral commission to any agency
who brings them a buyer or a seller.
They will also, he said, give the client a range of extra services, helping
to find good contractors to repair a home, fix the swimming pool or landscape
the garden.
“This is a service sector and only those who enjoy service will survive
in it.”
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12 March 2010, 08:20:01
Knight Frank, the leading independent global property consultancy, today announced
that its Knight Frank Property Search App is now available from the App Store.
The app enables users to search across more than 6,000 of the world’s best
properties for sale or rent using their iPhone or iPod touch.
The Knight Frank Property Search App has been developed as part of the evolution
of Knight Frank’s award winning online Global Residential Search, in recognition
of the many media through which Knight Frank’s clients instigate their
property searches.
Patrick Ramsay, head of Residential, Knight Frank, said: "The Knight Frank
App is a mobile window to more than 6,000 of the best properties around the
world. It is part of our integrated global coverage giving immediate access
to our international network of more than 200 offices in over 34 countries.
The quality of properties are reproduced beautifully giving an extraordinary
and effective way of showcasing houses on iPhone and iPod touch."
Jason Leven, partner, web development manager, Knight Frank, said: “We
have extended our award winning Global Residential Search to help iPhone and
iPod touch users around the world find the highest quality property available.
Using location-based services users can find their nearest property regardless
of where they currently are. It only takes one tap to search for all properties
that match a chosen lifestyle like water views, skiing, equestrian, golfing,
vineyards or sporting properties around the world. If you find a property you
like you can save it, email it to a friend or even publish it directly to Facebook©.
It couldn't be easier or more fun to browse the best local or global properties
on the move.”
Features:
- Search by lifestyle such as water views, vineyards, ski, golf and equestrian.
- Integrated global residential property search by country, region or postcode.
- Locate nearest properties for sale or rent using the global GPS search function.
- View images, floor plans and full brochures.
- Save favourite property searches for future use.
- E-mail results to friends and family or link properties to Facebook.
- Shake to refresh search.
- Locate nearest Knight Frank office and either call or email with the touch
of a button.
- Unlimited search results.
The Knight Frank Property Search App is available for free from the App Store
on iPhone and iPod touch or at www.itunes.com/appstore/.
Lanice Steward, MD of Anne Porter Knight Frank in Cape Town said that as so
many people now call up information on App Store, Knight Frank’s decision
to use this is logical and far-sighted.
For further information please visit www.knightfrank.com/iphone or please contact:
Jason Leven, partner, web development manager, Knight Frank, +44 (0) 20 7861
1658, Jason.leven@knightfrank.com or Daisy Ziegler, residential pr executive,
Knight Frank, +44 (0) 20 7861 1031, daisy.ziegler@knightfrank.com.
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12 March 2010, 08:17:16
In the Cape Peninsula there is, says Mike Greeff, CEO of Greeff Properties, a
growing tendency among property investors to buy either to demolish and replace
the existing home or renovate and upgrade it.
All too often, he adds, a “chic” refurbishment is a disaster.
“What characterises the Cape Peninsula’s homes is their historic
integrity. Without making pretentious claims to any great architectural excellence,
they reflect attractive styles that were “in” in the Cape Dutch, Victorian,
Edwardian or post-war fifties and sixties periods.
“Introducing a chi-chi interior decorator to such homes can carry a great
risk. After scouring the retail outlets for supposedly with-it lamps, artefacts,
down-lighting, tiling, kitchen and bathroom hardware, laminated or veneered
wooden components, they will cram these into the home, producing an interior
that is halfway between a Broadway apartment and a sixties industrial minimalist
office. It will represent no style or period, it will be wholly inappropriate
to its shell and it will reflect only one thing – the owner’s desire
to impress.”
Greeff said that most older Cape homes do need upgrades – their electrics,
plumbing and sewerage are frequently unreliable but all renovations should be
done in consultation with a Heritage specialist.
Even in relatively new homes, he said, it is only too easy to “wreck”
an interior.
Particularly regrettable, he said, is the use of cheap materials, often now
imported from the east, in place of the solid wood, cast iron, brass and ceramic
products which have stood the test of time and have an innate honesty that gives
character to any room.
Façades, said Greeff, should be treated with huge respect.
“We had a case where a home with white walls and Alphen green shutters
was given a pink and grey makeover. It took two years of complaints from the
neighbours to restore a semblance of dignity to the building.”
Badly upgraded houses, said Greeff, have been known to lose 15% of their value
on resale.
“That in itself should serve as a warning to those who rush in here.”
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12 March 2010, 08:13:39
The building packages now on sale in the Amberfield Valley estate
development include a stand and a three-bedroom house at prices from
R1,14m.
|
Security, convenience and flexibility – that’s what awaits buyers
in the beautiful Amberfield Valley estate development, where a new phase of
building packages goes on sale on 12 March.
Situated in Rooihuiskraal, one of the fastest-growing suburbs of Centurion,
the estate is close to good schools, upmarket shopping centres and the highway
network.
Jo Pelser of developer Chapter Nine notes that Amberfield Valley is also fully-secured
with perimeter walling topped by electric fencing, and controlled access through
a manned gatehouse. “This makes it a great choice for families seeking
a secure, tranquil living environment that is still close to all amenities and
does not require a long commute to work.
“And most importantly, buyers of our packages will be able to customise
the basic house designs to ensure that their new homes are perfectly suited
to their own requirements.”
The building packages that Chapter Nine is offering in Amberfield Valley include
a stand and three-bedroom home at prices from R1,14m, VAT included. The stands
range in size from 500sqm to 800sqm.
There are four house designs for buyers to start with, including double-storey
options. All have at least three bedrooms, two bathrooms and a double garage
and come complete with paving, walling and superior finishes.
“But the size of the stands allows a lot of latitude to make changes or
additions to the standard designs,” says Pelser, “which we are happy
to accommodate.”
Finance will be available to qualified buyers, and the deposits required are
just 10% of the stand prices, which start at R300 000.
Issued by Chapter Nine Developments
For more information call
Koos Niemandt on 082-378-1725
Or visit www.amberfieldvalley.co.za
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11 March 2010, 14:08:25
The RealNet estate agency group has reopened in Rustenburg, with a new franchise
having been awarded to local real estate stalwart Reinette Lummis.
Her agency, which has been operating since 2005, will now trade as RealNet
Lummis Properties.
Lummis, who has an excellent reputation in the Rustenburg market, says she
relishes the opportunity to now expand her operation under the RealNet brand.
“RealNet is one of the country’s most respected real estate brands
and offers superb backup and systems that enable franchisees to offer their
clients exceptional service.”
She adds that her success is based on dedication to her clients, honesty at
all times and hard work. “Our motto is to walk the extra mile with our
clients and we will uphold this tradition as part of the RealNet group.
“The recession has forced many agents and agencies out of the local market
and only the most professional now remain. We are confident that we will be
able to offer an even better service as part of an acclaimed national real estate
group.”
Lummis reports that the Rustenburg market started showing signs of increased
activity in December. “Buyers are taking advantage of low interest rates
and although some buyers are still encountering problems with obtaining bank
finance, there are encouraging signs that banks are starting to relax their
lending criteria. It is particularly encouraging that first-time buyers are
obtaining 100% bonds.”
Local prices start at around the R450 000 mark for small apartments popular
among first-timers and people who are downscaling. The biggest demand, however,
is for three-bedroom family homes priced at between R800 000 and R1m, while
there is reasonable interest up to the R1,5m mark.
International buyers are also active in the market and are targeting luxury
properties, notably in upmarket complexes such as RockCliff, where prices range
from R2,8m to R6,5m.
Lummis says stock levels are high, boosted by units brought to market by owners
under financial pressure. “It creates good buying opportunities and cash
investors are currently active,” she adds.
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05 March 2010, 08:28:03
Spire Property Management recently secured the management contract for 11 Park
Lane in Parktown, Johannesburg.
“This 5000 square metre office block, belonging to a private client, expands
Spires’ footprint in the Gauteng region. As a result of our recent growth
in Gauteng we plan to open a regional office in Johannesburg during the course
of 2010 so that we can look to expand our property management operation in this
exciting area,” explains Marc Edwards, Managing Director of Spire.
Other current management contracts within the Gauteng areas are through Spires
mandate to manage the entire portfolio of Pick ‘n Pay owned retail properties,
on a national basis.
“Currently we have regional offices in Cape Town and Durban, with our
head office situated in Cape Town. We have however, identified the need to re-establish
our presence in the growing areas of Johannesburg and Pretoria and look forward
to opening our Gauteng regional office. We are actively sourcing new business
in the area and have received positive feedback in this regard which we feel
is down to our good name in the market based on our proven track record of being
hands on, professional and experienced property managers who always look to
add value to the properties we manage”
“We have seen our portfolio grow significantly in the past 12 months,
mainly through word of mouth, despite the recession which has seen a number
of firms struggle. We have placed targets on our property managers to control
their operational expenditure and have encouraged them to nurse the income side
of the building during these difficult times whilst constantly looking for additional
income earning opportunities to add value to our clients properties. This approach
seems to have paid dividends and reduced the pressure which potentially could
have been felt by our clients.
Spire has also recently expanded their management contracts in Kwazulu Natal
with the recent securing of three new buildings to be managed on behalf of a
private client. The contracts are for retail, light industrial and sectional
title office buildings that total over 6500 square metres.
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05 March 2010, 08:26:37
The Cape has had its first autumn rains - and more are on the way.
Now is the time to get on a ladder and clean out your gutters and down pipes,
reseal your copings and flashings and generally batten down for the long damp
days ahead, says Lanice Steward, MD of the Cape Town estate agency Anne Porter
Knight Frank.
“Once the rains really set in,” says Steward, “the water-proofing
companies often become difficult to get hold of. Now is the time to get a good
deal out of them.”
In her business, she says, it is embarrassing to recall the number of times
a house has been severely damaged by leaks, jeopardising its appeal and making
it difficult to sell or rent.
“Along with faulty geysers, dirty swimming pools, unweeded gardens and
unmown lawns, I would list damp damage as one of the five or six main reasons
for a house losing its charm and appeal. Once it is on the market, even a single
damp patch on a ceiling will lead to suspicions that the house itself is unreliable
and other leaks can be expected. It really does, therefore, pay to keep your
home solidly watertight, especially as delays in doing this all too often result
in hundreds of rands worth of damage and sometimes even in severe structural
problems.”
www.anneporter.co.za
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05 March 2010, 08:25:37
Top Cape agency joins Harcourts
03 March 2010
In a move that has set the Cape Town real estate establishment abuzz, the landmark RE/MAX office on the Blouberg beachfront has converted to the Harcourts brand.
“This office was one of the best-performing RE/MAX operations in SA and in the world, so its conversion is a very big deal for us,“ says Harcourts Africa GM Jeanne van Jaarsveldt. “It is a major endorsement of what our group has to offer in terms of business systems, technology platforms, web-based training and a superior rewards programme for business owners and agents alike, and a strong indicator that top agency principals are eager to embrace the change we are bringing to the SA real estate industry.”
Harcourts Africa, he notes, has notched up 27 such conversions in the past 12 months, over and above the foundation of offices it had in the former Homenet group.
Andre Stols, principal of the agency now known as Harcourts Cape Coastal, says his team of agents will continue to serve homebuyers and sellers from Milnerton to Melkbos – an area that encompasses many of the Western Cape’s busiest and strongest property markets currently, including Table View, Parklands and Bloubergstrand.
His plans for the future include additional Harcourts Cape Coastal outlets and intensified efforts in the markets his office currently serves, with a view to further growing market share.
“The Western Seaboard as a whole has recovered swiftly and well from the recession, with sales volumes and turnovers having leapt up in the past few months. Prices are, however, still much more affordable than in many other parts of Cape Town and we believe that this, combined with a great lifestyle offering, will make this area one of SA’s top property investment choices over the next 18 to 24 months,” he says.
ISSUED BY HARCOURTS AFRICA
FOR FURTHER INFORMATION CALL
JEANNE VAN JAARSVELDT ON
083 641 6603 OR VISIT
www.harcourts.co.za
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05 March 2010, 08:25:19
Tony Clarke, Managing Director of Rawson Properties, has joined other high
profile spokespeople in the property sector in congratulating Finance Minister,
Pravin Gordhan, on the balance achieved in his recent budget between growth
stimuli and educational, social upliftment and welfare packages. In the current
post-recessionary conditions with the tax revenue down some 13%, said Clarke,
this was no mean feat.
However, Clarke took issue with Gordhan on one “crucial” matter,
the budget’s lack of incentives to home ownership and the real estate sector
in general. In this respect, he said, the State’s policy and actual performance
are still miles apart.
“Only a week before the budget speech,” said Clarke, “President
Zuma said that help for the man who could not afford his own home, would be
forthcoming – and Gordhan has said that a policy to achieve this will be
worked out – but nothing concrete has been suggested in this field for
a long time and many of us are worried that nothing will be seen.”
One positive step, said Clarke, is the granting of extended times on the VAT
payments for materials used by property developers. Previously they had to pay
their VAT on materials within a few weeks of receipt but were unable to claim
them back until the unit was sold. Now options are being investigated to determine
equitable values and easier VAT claim back times. This, said Clarke, will help
to get developers moving again.
Also likely to have a beneficial effect (on a limited scale), said Clarke,
is the extension of the amnesty period given on transfer payments to those taking
property out of companies, trusts and close corporation and transferring it
to individual ownership.
Reverting to the housing issue and repeating statements made more than once
by Rawson Properties Chairman, Bill Rawson and Rawson Developers MD, Paul Henry,
Clarke said he would like to see the State really “get to grips” with
low cost home ownership.
“Housing,” he said, “is a basic need. It has been shown by companies
like Inframax and Asrin that it creates political stability and promotes a work
ethic – the man with a home of his own is more likely to work to keep it
– but it has also been shown that the State has to partner private enterprise
here to achieve real delivery. The idea that municipalities will ever really
be successful as developers has been disproved again and again, not only in
SA but in India, Brazil and Australia. They simply do not have the background
or the expertise for what is essentially an entrepreneurial exercise.”
In addition to a bolder approach to low cost housing, said Clarke, he believes
that a reduction in transfer duty would have been a big help to the whole property
sector.
He would also like to see a strategy evolved by banks and/or the State to capitalise
on the large numbers of repossessed or distressed owners’ homes now on
the market at prices 15 to 25% below their real value.
“We have here a wonderful opportunity to give potential homeowners their
first step on the housing ladder instead of just letting investors add to their
portfolios, could we not make these houses available to first time or less affluent
buyers by means of state-bank subsidies for, say, an initial period of five
years.”
This, Clarke said, would bring SA more into line with the UK methods to which
he has previously drawn attention of encouraging home ownership by “ladder”
or scaled-up bond payments.
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02 March 2010, 14:31:05
RE/MAX of Southern Africa kicked off 2010 with awards breakfasts held around the
country to celebrate outstanding successes achieved in 2009, one of the toughest
years in the property market by far.
Hosted by internationally renowned speaker, Michael Jackson, the fourth and
final national RE/MAX awards breakfast, made possible by the support of its
long standing business partners, Betterbond and Standard Bank, was held in Cape
Town at the end of February. Out of the 360 awards presented nationally, 127
awards were handed over at the Cape event.
Before the ceremony got underway, Peter Gilmour, Founder and Chairman of RE/MAX
of Southern Africa, together with his wife Val, were welcomed back into the
RE/MAX of Southern Africa Family. The Gilmours, reacquired the RE/MAX of Southern
Africa region under a new Master Franchise Agreement late last year and with
more than 20 years of experience with RE/MAX, their experience and support will
undoubtedly lead the company to greater heights in 2010.
Addressing the room of RE/MAX Broker/Owners, Sales Associates and support staff,
Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa, said
that despite the fact that 2009 was dubbed as ‘the toughest year in real
estate’, RE/MAX continued to grow through and out of the recession. “Since
September last year,” he said, “we have seen month-on-month sales
growth with November equalling record months of 2007.” Goslett also noted
that 111 new agents joined the RE/MAX brand in the last three months of 2009
and a further 15 agents were welcomed back into the RE/MAX family.
Talking about what is in store for RE/MAX in 2010, Goslett said the year started
off with a bang. “In the first month alone 55 quality agents joined the
company with a further 10 family members returning. We also concluded six franchise
sales in the first five weeks of the year.”
Goslett believes the group’s success is due to agents that can change
their business strategy to be more efficient and more effective because they
belong to a system that allows them to be entrepreneurs; agents that lead change
in an industry as opposed to being influenced by it and agents that know that
client relationships are more important than sales and listings.
This ability to adapt to changing market conditions became evident when the
awards were handed over to those Broker/Owners and Sales Associates who, despite
the odds, achieved phenomenal successes in 2009. The awards categories were
tiered in accordance with sales results and commissions earned over the past
12 months.
Broker/Owners and Sales Associates within the Cape region racked up 45 Executive
Club awards and 61 100% Club awards for their remarkable sales results over
the past 12 months. A total of 16 Platinum Club awards were handed over to Sales
Associates and Broker/Owners in the Cape region, with four Chairman’s Club
awards presented in recognition of outstanding sales performance. Gerlinde Moser
of RE/MAX Living and Ari Voyiatiz of RE/MAX Property Associates each received
a Diamond Club award for their outstanding achievements in 2009.
Of the 29 Career and Special Awards presented nationally, the Cape Region laid
claim to 10, with nine Hall of Fame awards presented to those Broker/Owners
and Sales Associates who have achieved exceptional results during their career
with RE/MAX. Cheryl Bluff of RE/MAX Elite was presented with a Lifetime Achievement
Award. To be eligible for this award, Cheryl needed to have dedicated at least
seven years of her real estate career to RE/MAX, aside from achieving outstanding
sales results.
The Cape region also managed to scoop several national awards, including Best
Small Office of 2009, which was awarded to RE/MAX Lifestyle Estates, a RE/MAX
office that is deeply involved in its local community, and one that achieved
a 30% agent growth in 2009. The national award for the Best Multi Office with
the highest sales volume by registered commission was presented to Caron Leslie
and José de Abreu of RE/MAX Property Associates, as was the prestigious
multi-office Broker/Owner of the Year award.
The top five sales associates by registered commission were, ranked from one
to five, Karyn Cartoulis of RE/MAX Living; Debra Peters of RE/MAX Property Associates;
Marius Jordaan of RE/MAX Living; Harriet Engelbrecht of RE/MAX Living and Peter
Kotze of RE/MAX Property Centre.
RE/MAX Property Associates cleaned up the award category for the Cape’s
top three sales teams by registered commission. The winners were announced as
Ari Voyiatzis; Jacqui Kvalsvig and Trevor Chute.
The top three multi-offices by registered commission were RE/MAX Property Associates;
RE/MAX Living and RE/MAX Property Centre. The top three single offices of the
year for the Cape Region were RE/MAX Oaktree; RE/MAX Helderberg and RE/MAX Prestige.
All the successes celebrated above could not be achieved without the assistance
and dedication of support staff, for which Alicia Havenga of RE/MAX Property
Associates was awarded as the Regional Office Administrator of the year.
Another fact worthy of celebration is that RE/MAX of Southern Africa has raised
over R6,4-million for Reach for a Dream since it first started supporting this
worthy cause in 2004. During 2009, R313 000.00 was raised for Reach for a Dream,
and a cheque was handed over to a local representative of the Foundation from
RE/MAX of Southern Africa. This donation was made possible by voluntary contributions
from Broker/Owners and Sales Associates around the country. The highest contributing
office to this worthy cause regionally and the highest average contribution
per Sales Associate for the region came from RE/MAX Lifestyle Estates.
Goslett concluded by saying that 2010 is the year of opportunity. “The
market has certainly turned but it is up to us to go out there and make it happen.
We need to exude passion and energy in all we do and we need to get back to
the one thing that sets us apart from our competitors, our willingness to succeed
and the core values that we represent in our Formula.”
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26 February 2010, 08:13:58
The Property Association, South Africa's leading real estate support organisation,
has once again teamed up with Nedbank to present a series of roadshows to estate
agents in the major regions across the country.
In line with The Property Association's primary objective to further enhance
the image of real estate agents in South Africa by assisting them to grow, develop
and ultimately achieve the pinnacle of success, entry to the roadshows is free
for members of the Property Association.
Last year's roadshows saw an attendance of over 500 estate agents in each region,
with the national attendance close to 3 000 estate agents. Rudi Botha, CEO of
the PA Group believes this year's attendance figures will be even better. "Aside
from the exceptional line-up of guest speakers, estate agents will be presented
with key information snippets to assist and motivate them to achieve success
in current economic conditions and gain a greater understanding of the market
place in which they operate."
This year, estate agents will have the opportunity to listen to Nedbank's chief
economist, Dennis Dykes, who will equip them with all that they need to know
when it comes to managing expectations for market recovery. Dykes believes that
property markets, both domestically and internationally, appear to be on the
mend as the effects of the financial market crisis abate and will discuss how
sound this recovery is and assess how favourable the climate will be over the
medium term at the roadshows.
The industry certainly needs motivation to succeed during challenging times,
and can therefore expect to be entertained by Vusi Thembekwayo during his self-inspired,
comical talk called Big Mama & the horse. Thembekwayo has delivered this
talk in four of the seven continents and has fine-tuned its message to entertain,
enthuse and inspire.
Says Botha: "The keynote speaker will inspire and motivate all who attend
to make the most of all of the opportunities that 2010 holds."
Says Charles de Winnaar, of Nedbank Homeloans: "Nedbank Homeloans is dedicated
to its commitment towards the industry and the upliftment of broad based participation.
Now more than ever is the time to partner with key players within our industry
in support of establishing a sustainable future platform."
Botha concludes by saying: "These roashows serve as a platform to equip
estate agents with vital tools to achieve greater professionalism and success.
The Property Association values the partner relationship that it has with Nedbank,
as without them as a sponsor, we would not be able to deliver these key annual
events to estate agents around the country."
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26 February 2010, 08:12:59
Both official data and the experience of the Rawson franchises north of the Orange
River indicate that the upturn in the SA residential property market is now under
way, says Sean McCauley, Director for Rawson Properties in the northern territory.
“The Knight Frank Global House Price Index shows that in the third quarter
of 2009 South Africa had the sixth highest capital growth in residential property
in the entire world – despite most of us believing we were still in a recession
and since then the market has performed steadily better.”
The countries ranked ahead of SA, said McCauley, were Singapore, Hong Kong,
Australia, Canada and New Zealand.
Making the SA ranking especially impressive, said McCauley, is the fact that
in the previous year SA had been in the 15th position.
“This,” he said, “shows that our recovery had been faster than
that of most of the world.”
(For the record, the bottom ranking is now held by Dubai, whose capital growth
rate was totally negative: 47% down on its values a year before.)
The latest FNB House Price Index, said McCauley, also gives grounds for optimism:
it shows that since mid-year 2009 the downward trend on the price graph has
been reversed, giving year on year growth of 2%.
Even more significant, said McCauley, is that FNB, having in November predicted
a 5% rise in house prices in 2010, have now revised this to 8%.
Another indicator that things have changed, he said, is the Estate Agency Affairs
Board reports that 8 085 Fidelity Fund Certificates have been issued to new
trainee intern estate agents, a sign that South Africans again see property
as offering a good career.
At Rawson’s Johannesburg office, from which he operates, McCauley said
there has been a 35% increase in applications for training courses and the classrooms
have been full all this year.
“Some 25% of those being trained are doing the two week Rawson Estate
Agency course, the others are training to improve their professional abilities
as agents and studying to pass the NQF4 examinations.
The Rawson trainers at Gauteng, now coach some 200 people each month.
The demand for Rawson franchise ownerships had, said McCauley, also been higher
than predicted. Three new franchises were sold in January alone and eight more
are currently being negotiated.
Right now, he said, there are 48 Rawson franchises in the Northern Region but
by the year end the figure will be at or very close to 80 – and in Kwazulu
Natal , where Rawson’s recently set up their first franchise, he plans
to have 15 franchises by 2011.
Visits to Rawson show houses – up by 300% in 2009 and sales enquiries
(up 120%) also indicate that confidence is returning to the market – and
that potential buyers are finding it easier to get bank finance than previously.
Demand, said McCauley, is strongest in what middle income earners regard as
the affordable market (i.e. in the R800 000 to R2 million bracket) and the areas
which offer the best value here have been the ones to see the highest sales.
“It is,” said McCauley, “difficult to point to any one area
as offering the greatest potential capital growth but sales in Randpark Ridge,
Weltevreden Park, Glenvista, North Riding and Vanderbijlpark as well as Bloemfontein
and certain of the bigger Mpumalanga towns all indicate that these areas are
in an upward phase and that could become a boom.”
McCauley said that, as he sees it, in the next few months buyers will have
a window of opportunity to buy homes at good prices. Thereafter, he says, the
long awaited takeoff will become a reality with prices in 2011 rising up to
a projected 10%.
Asked how Rawson plans to with and capitalise on his predictions, McCauley
said,
“It is not a secret: we will sell more franchises – but, if possible,
we will deal only with buyers capable of enhancing our reputation and we will
train and train.
“Thorough training and easily comprehended systems are the two factors
for which Rawson Properties is best known. Because we take these seriously at
Rawson’s, the turnover generated per agent is considerably above the national
average.”
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26 February 2010, 08:11:01
Many homeowners have asked themselves the question: "Should I stay or
should I go." However, says Adrian Goslett, CEO of RE/MAX of Southern Africa,
the decision to stay put and renovate your existing home, or to sell it and
buy another house, is largely dependent on each homeowner's individual circumstances
and preferences.
If you do decide to renovate your home, be careful of overcapitalising, where
you spend more money on additions or renovations than the value they add to
your property. Says Goslett: "The total value of your property, which comprises
its current value plus the cost of the proposed additions, should not be more
than 25% higher than the average property in your area."
He notes that homeowners need to look at their neighbourhood and find out what
the average home in that area consists of: "If the average home has three
bedrooms and two bathrooms, and your home only has two bedrooms and one bathroom,
then it will probably be worth adding on another room and bathroom." However,
in the above example, Goslett says that it won't be worth your while to add
another three bedrooms and bathrooms to this home. Doing this would seriously
narrow the market for potential buyers who would be prepared to pay the required
asking price that would cover the value of the property plus the costs of the
renovations.
"If your property is in a good area, and you have owned it for many years,
there is less danger of overcapitalising, as your home would have grown in value
over that time. However, bear in mind that if your property is in a good area
and your house is really old, then it might be worth your while to demolish
it entirely and build a new one. This is because the costs of building new are
much lower than the costs of renovations, as builders charge premium prices
for relatively small renovating projects," explains Goslett. He says that
in some cases, it may be worth it to look around as you may find you are able
to buy a home in a similar condition for less than you would spend on the renovations.
Goslett also points out that it is vital to calculate the costs involved in
both renovating, selling and buying another home: "To calculate what it
will cost you to renovate, you need to compare a couple of quotes from building
contractors. Since the cost of renovating or building can vary dramatically,
depending on what you want done and the finishes you chose, it is essential
to get detailed quotations that specify the exact finishes you want. Quotes
that are based on estimated per-metre costs are dubious at best, and don't allow
for proper comparisons. They often lead to much higher costs down the line."
The kind of renovations you decide to make will also be a primary consideration
with regards to the financial feasibility of the proposed project: "You
need to take into account whether the additions you are planning will add to
or detract from the aesthetics of your property. Cheap ad-hoc additions usually
have the potential to seriously devalue your property. Renovations that add
the most value to a property comprise upgrades to the kitchen, bathroom, living
and entertainment areas of your home. But always remember, it is more often
than not kitchens and bathrooms that sell homes."
Also, it is important to consider your future needs, he says: "For example,
it won't really be worthwhile to add on two extra en-suite bedrooms if your
children are expected to leave home in the next few years."
Goslett's final word of advice: "Homeowners need to carefully weigh up
the pro's and con's of renovating vs. buying before making a final decision.
At the end of the day, the decision is often largely influenced by cost and
personal circumstances."
By www.remax.co.za
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25 February 2010, 10:15:39
RE/MAX of Southern Africa recently hosted the KwaZulu-Natal Regional Awards
breakfast at the Durban ICC. This was the third of four awards breakfasts to
be held across the country where the successes of the RE/MAX Broker/Owners and
Sales Associates during 2009, one of the toughest years in the property market
by far, were celebrated.
Hosted by internationally renowned speaker, Michael Jackson, and thanks to
the support from its long standing business partners, Betterbond and Standard
Bank, RE/MAX of Southern Africa kicked off 2010 with a celebration that would
also serve to provide motivation for the year ahead.
Leading up to the presentation of the awards, Adrian Goslett, CEO of RE/MAX
of Southern Africa, who believes that 2010 is the year of opportunity, told
the crowd of RE/MAX Broker/Owners and staff who attended the event that a year
ago people were leaving the industry in droves. "Sales," he said,
"were hard to come by and mortgage finance was nearly impossible."
At this time, Goslett believed that many RE/MAX Broker/Owners were possibly
even contemplating their own future and asking difficult questions of themselves.
But he was confident that no matter what was thrown at them, they would not
only overcome the issues but rise to the challenge.
And rise to the challenge they did, evidenced by the amount of awards presented
at the breakfast. The KwaZulu-Natal awards ceremony saw no less than 128 awards
handed over to the region's top performers. The winning Sales Associates and
Broker/Owners were ranked in various tiered categories, all of which were based
on sales concluded over the previous 12 month period.
Out of the 199 Executive Club winners announced throughout the country, the
KwaZulu-Natal region laid claim to 36, with a further 41 Sales Associates presented
with a 100% Club awards for their remarkable sales results over the past 12
months. No less than 18 Platinum Club awards were handed over to Sales Associates
and Broker/Owners in the KwaZulu-Natal region, with five Chairman's Club awards
presented in recognition of outstanding sales performance. Deanne Hamilton of
RE/MAX Panache and Chris Pearson of RE/MAX Address each received a Diamond Club
award for their phenomenal success in 2009.
In the Career and Special Awards category, five Hall of Fame awards were presented
to those Broker/Owners and Sales Associates who have achieved exceptional results
during their career with RE/MAX. Pam Eglington of RE/MAX Dolphin Realtors was
presented with a Lifetime Achievement Award. To be eligible for this award,
Pam needed to have dedicated at least seven years of her real estate career
to RE/MAX, aside from achieving outstanding sales results.
Perhaps the most impressive honour of the day was the handing over of the Circle
of Legends award. This prestigious award, which has only been presented once
before in RE/MAX of Southern Africa's history, was proudly presented to Chris
Pearson of RE/MAX Address. Aside from 10 years of service with RE/MAX, Chris
had to redefine the meaning of sales success to qualify for this award. What
is even more impressive to note is that The Circle of Legends was last presented
in 2006 when South Africa was in the height of the property boom. To achieve
an award such as this is proof that Chris has the staying power, grit and determination
to eek out success even in tough times.
All the successes celebrated above could not be achieved without the assistance
and dedication of support staff, for which Linda Oosthuizen of RE/MAX Midlands
was awarded as the Regional Office Administrator of the year. Linda has been
with RE/MAX for 12 years, and continues to go above and beyond in the undertaking
of her duties.
The KwaZulu-Natal region also managed to scoop several national awards, including
National Broker/Owner of the Year, which was presented to Sean Beyers of RE/MAX
Address in Umhlanga Rocks. In his one and a half years with RE/MAX, Sean has
managed to increase their number of registered Sales Associates by 42%, and
his office sales volume also increased by 22%.
The National Sales Associate of the Year based on number of transactions was
awarded to Chez Kruger of RE/MAX Tricolor, while Chris Pearson of RE/MAX Address
claimed yet another title: Broker/Owner Sales Team of the Year, which was based
on registered commissions.
The Leadership Award was presented to Grant Gavin of RE/MAX Panache for dedication
and commitment to ensuring the success of the RE/MAX brand in his area and in
the region as a whole.
The top five sales associates by registered commission, ranked from one to
five, were Chez Kruger of RE/MAX Tricolor; Sue Lindon of RE/MAX Address; Sheryl
Schilz of RE/MAX By The Sea; Christopher Morris and Daisy Govender of RE/MAX
Dolphin Realtors.
But it doesn't end there. The successes of the top three sales teams by registered
commission were celebrated along with the winners who included Deanne Hamilton
and Kerry Bailey of RE/MAX Panache along with Sandy Combrink of RE/MAX Midlands.
The top three multi-offices by registered commission were RE/MAX Panache; RE/MAX
Address and RE/MAX Midlands, while the top three single offices included RE/MAX
Toti; RE/MAX By The Sea and RE/MAX Sell-ect.
Another fact worthy of celebration is that RE/MAX of Southern Africa has raised
over R6,4-million for Reach for a Dream since it first started supporting the
charity in 2004. During 2009, R313 000.00 was raised for Reach for a Dream,
and a cheque was handed over to a local representative of the Foundation from
RE/MAX of Southern Africa. This donation was made possible by voluntary contributions
from Broker/Owners and Sales Associates around the country. The highest contributing
office to this worthy cause regionally was RE/MAX Panache, while the highest
average contribution per Sales Associate for the region came from RE/MAX Hibiscus.
Peter Gilmour, Founder and Chairman of RE/MAX of Southern Africa, together
with his wife Val, reacquired the RE/MAX of Southern Africa brand under a new
Master Franchise Agreement late last year. The Gilmour's were welcomed back
to the South African RE/MAX family where their experience and support will undoubtedly
lead the company to greater heights in 2010.
RE/MAX of Southern Africa already started the year off with some great successes,
including five new franchise sales in the first five weeks of the year. Goslett
believes the group's success is due to agents that can change their business
strategy to be more efficient and more effective because they belong to a system
that allows them to be entrepreneurs; agents that lead change in an industry
as opposed to being influenced by it and agents that know that client relationships
are more important than sales and listings.
"I am also proud to say that we have the most highly respected and experienced
leaders in the industry in our Broker/Owners & managers who have steered
their ship through the roughest real estate seas for some time. We look forward
to sharing in their successes in 2010 and beyond," Goslett concluded.
ENDS 1140 words
ISSUED BY GREEN GRAPES COMMUNICATIONS
ON BEHALF OF RE/MAX OF SOUTHERN AFRICA
MEDIA CONTACT: RETHA VAN REENEN, 083 353 6811, rethavr@greengrapes.co.za
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19 February 2010, 08:12:00
International estate agency group Harcourts is now represented in Louis Trichardt
in Limpopo, following the conversion of leading local agency Homenet Jana Marie
to the global brand.
This follows the establishment of a partnership between Harcourts International
and SA real estate giant Homenet group, which is now known as Harcourts Africa.
Jana Smith, owner of the Louis Trichardt agency, says the change is expected
to further boost her office’s offering in the local market. “We are
confident that international exposure of local properties, and especially game
farms, through the global Harcourts network will benefit local sellers. Interest
in game farms as holiday properties among international investors is already
high and we expect this to increase.”
Smith adds that Harcourts’ proven systems and cutting-edge technology
will be a boon for local property consumers. “It will enable us to hone
our offering in the market and offer even better service to buyers and sellers
alike.”
The office started 2010 on a high note with three successful transactions recorded
in the very first week of the year and Smith says that although buyers are still
experiencing difficulties obtaining credit, the local market shows definite
signs of picking up.
“Demand among buyers in the upcoming middle class remains buoyant and
we are experiencing an inflow of buyers from surrounding rural areas who aspire
to a middle class lifestyle with the facilities that a town offers.”
The biggest demand in town is currently for family homes in a narrow price
band of R800 00 to R900 000. Smith says solid three-bedroom homes with two bathrooms
and a garage are available in this range.
Meanwhile farms in the area are selling at prices of between R4000/ha and R9000/ha,
depending on location and infrastructure. Smith notes that apart from buyer
interest in game farms there is also good demand for land among local cattle
farmers who are expanding their activities.
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19 February 2010, 08:11:15
The RealNet estate agency group has increased its number of offices in Pretoria
with the opening of a new agency in Moreleta Park, east of the city.
The new franchise is owned by Veronica Potgieter, who says the brand has received
an overwhelming response in the local market. “We had our first show houses
in January shortly after opening and received several sole mandates in the second
week.
“We currently receive three listings per day on average and local buyers
and sellers regularly approach us for advice. ”
Potgieter, an experienced estate agent with a slew of industry accolades under
her belt, decided to strike out on her own and chose the RealNet brand based
on its performance and continued growth in spite of tough economic conditions.
“I have reviewed all franchise opportunities and was most impressed with
the RealNet presentation. The group’s values and marketing strategy were
particularly impressive and the fact that it caters fully or the Afrikaans market
was an important consideration for a real estate office in Pretoria,” she
says.
Potgieter adds that in spite of the difficult economic conditions of the past
year, property in Moreleta has retained its resale value. The area offers a
variety of properties for sale at prices ranging from R480 000 to more than
R3m. Units in established areas, as well as new extensions and security complexes
are available.
The biggest demand is currently for homes in the R800 000 to R1,5m price range.
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19 February 2010, 08:10:18
The decision by Rawson Properties’ Constantia franchise to open a rental
division covering the whole of the southern suburbs has, says the franchisee,
Eugene Pienaar, paid off handsomely.
“Much of the success of the new division,” he said, “can be
attributed to the manager, Linda Stringer. Coming from the hospitality industry
and with experience in running her own business, she has real understanding
of the type of client putting a house or a flat up for rent and the sort of
person who is looking to occupy such premises.”
In three months, said Pienaar, Stringer has achieved what other rental agents
would have taken a year or more to bring about.
“Linda Stringer has let over 20 properties in the short time she been
here – and most of these have been in the high value bracket, some with
rentals of over R20 000 per month.”
Particularly promising right now, said Pienaar, is the outlook for those homes
being made available for the World Cup period. A well sited home with three
or four bedrooms, a garden and a pool is able to charge R2 000 per person per
night over the six to eight week World Cup period. A one bedroom flat in the
Tokai area can charge R3 000 per night.
Pienaar said that he will be taking on another two rental agents to assist
Stringer and will expand the service to provide a truly comprehensive management
as well as letting service.
“Rental agents have acquired a bad name in the southern suburbs due to
the lack of professionalism and reliability. With a high calibre agents like
Linda and her team members we will be changing this perception.”
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05 February 2010, 08:21:24
The Harcourts brand is finding favour among property buyers and sellers in the Mpumalanga town of Lydenburg.
“Our conversion from the Homenet brand to Harcourts at the end of last year has elicited an amazing reaction in the market,” says owner Mandy Blom. “We have seen a rapid upturn in the number of new clients enquiring about our services and have reconnected to many old clients who bought or sold property through our office in years past.
“There was strong interest in family homes during December and early January as new mine employees and other people relocating to the Lydenburg were looking to buy before the start of the new school year, and our office attracted many of these buyers thanks to the novel Harcourts branding.
“The fact that we now have full international exposure through Harcourts International has also piqued the interest of property owners – especially those with guest houses and upmarket homes who are keen to expose their properties to a worldwide market,” Blom says.
Harcourts is the fastest-growing real estate group in Australia and the biggest in New Zealand. It also operates in China, Fiji, Indonesia, Singapore and Zambia and has been rates by world real estate authority Stefan Swanepoel as one of the top five international real estate brands.
Martin Schultheiss, CEO of Harcourts Africa, says international market exposure is one of the benefits that the global Harcourts group offers local property sellers. “Other benefits include financial and technological resources that allow Harcourts Africa to offering exceptional service to SA property consumers.”
ISSUED BY HARCOURTS
FOR FURTHER INFORMATION CALL
MANDY BLOM AT
013 235 4131 OR VISIT
www.harcourts.co.za
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29 January 2010, 11:37:20
Property group RealNet has boosted its presence in Pretoria with the opening of
a new franchise focusing on the property market in the Faerie Glen and Garsfontein
areas.
The franchise is owned by mother-and-daughter team Marina van Niekerk and Manri
Lourens, who are confident that the property market is now poised for new growth.
Van Niekerk, who previously owned a RealNet franchise in Lynnwood but left
the industry to pursue other interests for a while, says it is great to be back.
“I believe that property is one of the best – if not the best –
investment most ordinary people can make and that buyers who enter the market
now have excellent prospects for value growth. I understand the heartbeat of
property.”
Lourens joins the agency with a sound background in property deeds.
The office, which currently fields three agents, is focusing on duets and full-title
homes in the upmarket suburbs of Faerie Glen, Garsfontein and Pretorius Park,
which borders Woodhill, while Nelis Bezuidenhout of RealNet Wapadglen focuses
on townhouses in the same area.
Van Niekerk, who sold the office’s first property within a weeks of opening,
says demand is strongest in the cheaper end of the market. “Properties
in the price range of between R750 000 and R1,3m are actively targeted,”
she says.
Prices of duets in Garsfontein start at R850 000 and prices of houses at around
R950 000. Property in Faerie Glen is on average a bit pricier with duets starting
around the R950 000 mark and homes selling from about R1,3m, she says
Prices at the top end of the market range from R3,5m upwards and some exclusive
homes have reached prices of R15m.
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28 January 2010, 07:41:23
RARE OPPORTUNITY TO BUY INTO TOKAI SECURITY ESTATE
The demand for security estates throughout the Greater Cape Town area is now at an all time high, says Lanice Steward, MD of Anne Porter Knight Frank, and, she adds, in many suburbs the lack of these is now a cause of serious concern.
“We could have at least 30% more and still find buyers for them all,” said Steward.
An estate that appears to prove the rule is the seven unit security estate in Weaverbird Close in Tokai. Here Anne Porter Knight Frank has two homes for sale.
This estate, says Sue Bust, who with Barbara Stephenson, is handling the sale, is ideal for those scaling down from larger properties in nearby Constantia and Tokai itself. It is sited at the end of a quiet cul-de-sac and overlooks a wetland that has a large bird population. It is also close to the Tokai forest which offers walking and riding trails – and is within five minutes drive from the Constantia and Blue Route shopping centres.
The homes for sale here both have low profile ranch styles with tiled roofs, two en suite bedrooms, a study, separate living and dining rooms (the former with a fireplace) and internal courtyards in which there are water features.
The listed price is R3,8 million. Bust can be contacted on 083 302 5395 and Stephenson on 082 825 5699.
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14 January 2010, 16:24:39
MARION TAYLOR RECOMMENDS APARTMENTS AS TOP GRADE, LONG TERM INVESTMENTS - ESPECIALLY THOSE ON THE ATLANTIC SEABOARD
The long-running argument as to whether property or the stock exchange gives the best returns was one of the topics raised at an early 2010 planning meeting at Greeff Properties’ Camps Bay branch.
Drawing on her 28 years’ experience in property, Marion Taylor, Greeff Properties director for the Atlantic Seaboard, told some of her agents that they could recommend apartments as investments with complete confidence, especially if these are in the Camps Bay Atlantic Seaboard precinct.
“Obviously from time-to-time you will come across clients who are extremely competent stock exchange analysts and who will be able to tell you about spectacular returns achieved on the JSE. No one argues that this is possible to the real experts. We have clients, for example, who bought WBHO shares less than a decade ago at under R3 and who are now seeing them valued at close to R110. However, this type of expertise is not easy to come by and in my experience the average stock exchange investor has to work on hearsay and dinner table talk. For that type of investor property has always been the safer investment channel.”
Asked to give at least one example of a property investment success, Taylor said that in 1985 she had assisted a relative to buy four apartment blocks in the City Bowl with 20 units in all. The price paid was just under R500,000 for all four blocks.
“That investment,” she said, “is now generating over R100,000 per month in rental income - rentals have continued to rise consistently despite the recession. Right now, in fact, residential property is leading the recovery out of the downturn. Well located apartments as long term, income producing investments cannot be beaten. There is also the added benefit of consistent capital appreciation and, if necessary, the investment is easily converted into cash”.
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04 December 2009, 07:53:22
MIKE GREEFF PUNTS PROPERTY IN THE CAPE’S MOST PRESTIGIOUS RESIDENTIAL AREAS AS EXCELLENT LOW RISK INVESTMENTS
Price rises will match inflation by late 2010, Mike Greeff says.
In every South African city there are one or two areas that property buyers have singled out as “exceptional” and “prestigious” – and which, therefore, tend to show remarkable price stability – no matter what happens elsewhere.
Talking recently to potential UK investors on this subject, Mike Greeff, CEO of Greeff Properties, said that Upper Constantia, Bishopscourt, Higgovale, Camps Bay and Clifton/Fresnaye are areas illustrating this proposition.
“Sceptics will tell you that some homes in these areas recently sold at 20% below their 2007 peaks,” said Greeff. “What they do not tell you is that in the 2003 to 2007 boom the price rises here were almost exponential. We saw some properties treble in value. The 2009 price drops that followed, although unfortunate for those who bought very late, were actually not that significant. The areas I have mentioned always were, still are and will remain excellent property investment prospects.”
Quoting the FNB economists, John Loos and Ewald Kellerman, Greeff said that he agrees with them that SA residential property is still in a correctional phase and, like them, he foresees price rises in the next decade being less spectacular than those of 2003-2007 – but, he adds, “in my view, from late 2010 onwards they will match salary wage and inflation increases – and will be above 7 to 8% for two to three years”.
Once again, therefore, said Greeff, those who are looking for a solid, low risk investment should go to the prestige areas he has quoted.
“What will become apparent in the next two years is that not only are prices again rising because demand here will exceed supply but also, by international standards these properties are almost ludicrously inexpensive. Homes with small vineyards and swimming baths in Upper Constantia can still be bought for R8 to R12 million. In Monaco or St Tropez that might, if you were lucky, buy you a two bedroom apartment without a harbour view.
“As people from Europe flood into SA for the World Cup, so this huge discrepancy in values will be more evident – making our best areas as sought-after as ever.”
Greeff’s statement has, since he made it, been corroborated by another FNB Home Loans analysis which shows that in 2009 large homes (those with 220m² or more floor area) have increased in value by 1,9% (i.e. in real terms lost only 4,3%). This was a markedly better performance that that of the single houses (which lost 4,4% in nominal value, 10,3% in real terms) and medium sized homes (which lost 4,7% nominally and 10,5% in real terms).
Loos and Kellerman commented in their report that the FNB Property Barometer has consistently pointed towards a greater percentage of selling to downscale due to financial pressure in low income areas as opposed to those higher up the ladder where, says Greeff, the market is far less dependent on large mortgage loans, another factor boosting prices.
For further information contact Greeff Properties on 021 763 4120 or email mike@greeff.co.za
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04 December 2009, 07:52:02
MISCONCEPTIONS ABOUT RETIREMENT VILLAGES CAUSE PEOPLE TO POSTPONE THEIR MOVES TO THEM
Greeff Properties’ ongoing campaign to make South Africans more aware of the need to book a place in a retirement village as soon as possible continues to reveal a great deal about the reasons why people postpone their decisions on retirement accommodation, says Greeff Properties Development Director, Heather Cape.
“It is becoming very clear to me,” said Cape, “that one of the main causes of procrastination on this matter is, put quite simply, that people do not like to be thought of either as old or retired.
“As some of them see it, moving into a retirement village is tantamount to announcing that you are nearing the end of your life span.”
In reality, said Cape, this is way off the mark: retirement complexes such as Riverside Gardens in Diep River, where Greeff are the marketers, accept people as young as 55 years of age and the vast majority of those who join initially continue to go to work.
“Today’s residents of retirement projects,” said Cape, “are some of the most active, lively, like-minded people in Cape Town. They travel two or three times a year, they play tennis and golf, they walk, they climb mountains – and the great benefit of a medium sized complex like Riverside Place is that it does give them a chance to meet people with similar interests with whom they may well find they can share their hobbies, passions and pastimes.
“Surveys have shown that a fair number of those moving into retirement complexes as single people actually end up partnering or marrying one of the other residents.”
Another feature which, said Cape, has become evident from her dealings with potential buyers in Riverside is that many people think of the Life Right system, which in reality is the least expensive and most popular of all retirement options, as depriving their heirs of the wealth they might inherit – something most of them desperately wish to avoid.
“This, too,” said Cape, “is way off the mark. In all the well run schemes like Riverside Place and Riverside Gardens, heirs are paid back the full purchase price paid plus 25% of the enhanced value. This is surely a good deal when you take into account that the buyer has no responsibility whatsoever for maintaining the property.”
From the viewpoint of the buyers’ family, said Cape, one of the huge advantages of a retirement complex is that the resident will be cared for quickly if something goes wrong, e.g. if he/she has an accident or a serious health setback such as a heart attack or stroke.
“In certain retirement schemes these days the panic activator is attached to the resident’s wrist (or worn around his neck) and will summon up aid at a few moments notice. Compare this to the total anonymity which many residents experience in sectional title or conventional housing where they can go for as much as a week without talking to their neighbours and where certainly their absence would never be noticed and you will understand the advantages of living among concerned neighbours with an involved management and staff at your beck and call.”
Mike Greeff, CEO of Greeff Properties, added that with retirement projects worldwide running into deficits as a result of the recent financial crisis and the ever longer lives which people live, returns on pension funds are bound to suffer. This, in turn, he predicts, will mean that the less expensive Life Right schemes will increase in popularity as compared to the outright purchase coupled to levy payment schemes.
For further information contact Heather Cape on 021 763 4120 or email hmcape@greeff.co.za
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02 December 2009, 09:51:11
APKF SIGN FIVE YEAR LEASE IN CAMPS BAY
Anne Porter Knight Frank, seeking a more upmarket venue for their Atlantic Seaboard office, has relocated from Regents Road in Sea Point to the Central Parade building in Victoria Road in Camps Bay, overlooking the lawned approach to the beach and the popular tidal pool.
“The sea,” said APKF’s Camps Bay manager, Helen Hoekstra, “is less than 100m away. As a result there is a permanent holiday atmosphere in this area. The office’s position, of course, also means that we are now attracting literally dozens of walk-up enquirers.”
APKF have signed with Camps Bay Investments for 52m² for five years.
Lanice Steward, MD of APKF, said that in the first 12 weeks after taking occupation of the new offices, APKF’s Camps Bay turnover had risen by over 60%.
Particularly impressive, she said, has been the performance of the branch’s letting division.
“We are finding that short term lets, for a week or 10 days, can achieve quite staggering rentals – up to R40 000 per night for a luxury unit with a cook, a maid and a butler.
“Even on fairly simply furnished apartments, provided they are within sight of the sea, R1 000 per night is now the minimum rate.
For further information contact Helen Hoekstra on 073 337 6122 or email helen.hoekstra@anneporter.co.za
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02 December 2009, 09:49:33
DUAL LIVING CAMPS BAY HOME COULD BECOME A B & B OR GUESTHOUSE
Anne Porter Knight Frank’s latest residential offering at Camps Bay could attract two or three types of buyer, says the APKF Camps Bay manager, Helen Hoekstra.
“It could suit someone wanting to open a guesthouse or B & B in this popular area or someone with an extended family, such as grandparents – or simply any family with a large number of children.”
The home, which is a triple storey, is in fashionable Rottingdean Road. It has no less than seven bedrooms, all en suite, two living rooms and two kitchens.
Tane Collins, the APKF agent handling the sale of this property, says that, with separate entrances for the upper and lower sections, the two sections could be kept independent of each other – but the division can be ignored.
The hoe, he says, although modern and well equipped, has something of an olde world atmosphere – there are three fireplaces and other traditional fittings.
The property has its own pool, garages for four cars and staff quarters. The beach is a two minute drive away and a Friendly 7/11 and the Hussar Grill are within walking distance.
Hoekstra commented that the listed price of R7,5 million would give any buyer “a great deal for a relatively small outlay”.
For further information contact Tane Collins on 073 135 9641 or email seapoint@anneporter.co.za.
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02 December 2009, 09:46:08
IMMACULATELY MODERNISED VICTORIAN HOME IN OLD GREEN POINT IS A TESTIMONY TO THE DESIGN SKILLS OF THE OWNERS, SAY APKF AGENTS
A home has come onto the market in the historic ‘village’ area of Green Point – and, what is more, it is sited in one of its most prestigious streets, Clydebank Road.
This home, says Lanice Steward, MD of Anne Porter Knight Frank, is almost certainly the best example she has ever seen of a Victorian CBD home modernised to be wholly appropriate for a leading executive professional man and his family.
The people responsible for this ‘magnificent’ upgrade are the current owner, Vaughan and Eloise Russell, partners of Field Architecture, a dynamic architectural and interior design practice. They, said Steward, have taken the original 1898 house and, preserving the front façade and covered stoep with its cast iron columns and broekie lace decoration, have completely reconfigured the interior so as to
make the ground floor completely open plan with interlinked living, dining and kitchen areas in which the finishes are ‘superb’. The kitchen has Iroko wood countertops and the floors are dark stained Oregon. Leading off this ground floor area is a raised bedroom with its own bathroom.
extended the living space into the loft area so that under the roof there are now two bedrooms, a study and another bathroom.
covered the rear courtyard with a burglar proof pergola. Here they have installed a solar heated 6m long lap pool and have made the area accessible to the interiors by making the division here entirely of stack back glass doors.
One of the most ingenious and attractive features of the home, say APKF agents, Meryl Kreuger and Velma Knight, is a light freestanding staircase leading to the upper floor supported (and partly obscured) by cubistic metal frames.
“Every feature of this home,” said Velma Knight, “is attractively minimalist but not spartan. The interlinked spaces harmonise perfectly and yet each is private.”
The APKF agents can be contacted on 082 375 3355 (Meryl Kreuger) or 082 081 7770 (Velma Knight).
The list price of the property is R3,395 million, a price which, Steward predicts, will seem almost ludicrously cheap in five years time as this area is undergoing a rapid transformation following the completion of the impressive stadium and the extensive landscaping work on the precinct surrounding it
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27 November 2009, 09:17:08
All four offices in a group that bears one of the oldest names in Cape Town’s real estate industry are now flying new colours as members of the powerful international group Harcourts.
Situated in Pinelands, Edgemead, Fishhoek and Bergvliet and dating back to the establishment of the Maynard Burgoyne property group in 1964, the offices have been operating under the Homenet banner since 1993 but have now been given another incarnation as the Harcourts Maynard Burgoyne chain.
This follows last year’s partnership deal between Harcourts International and South Africa’s Homenet group, which has now been renamed Harcourts Africa and is re-branding all its offices around the country.
And Harcourts Maynard Burgoyne principal Denis Quayle, a veteran of the city’s real estate industry, is “ecstatic” about the transition. “Harcourts is a truly international real estate brand which has a great future ahead of it. Its training systems, overall image, international referral network and ability to satisfy markets across the international property spectrum place the brand in a very strong position on a global platform.
“I am also particularly excited about Harcourts’ Luxury Portfolio and Relo Home Search facilities. While Luxury Portfolio essentially enables Harcourts members to market homes in excess of R6m to select clients, the Relo facility allows agents to access instant cost-of-living statistics, home sale information and relevant properties listed by members in 38 countries. The service is exclusive to the Leading Real Estate Companies of the World real estate network, of which Harcourts is a member.”
However, says Martin Schultheiss, CEO of Harcourts Africa, this is just a small part of the overall Harcourts value proposition that is currently creating huge excitement in the SA real estate industry.
“We see this in the volume of enquiries we are getting from both independent agencies and disillusioned members of other real estate groups, and in the fact that we have added more than 20 brand new offices to the group since the start of the year – making us by far the fastest-growing group in the country at the moment.”
Harcourts is also the fastest-growing real estate group in Australia and the biggest in New Zealand. It also operates in China, Fiji, Indonesia, Singapore and Zambia and has been rated by world real estate authority Stefan Swanepoel as one of the top five international real estate brands.
ISSUED BY HARCOURTS AFRICA
FOR MORE INFORMATION
CONTACT MARTIN SCHULTHEISS
ON 031-201-1060 OR VISIT
www.harcourts.co.za
Distributed by/ versprei deur
The Mega/ Press Network
Pse direct any enquiries to
012-333-6644,
073-946-9649 or
megw@telkomsa.net
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27 November 2009, 09:15:32
International real estate group Harcourts has arrived in Jeffreys Bay and is expected to make big waves in the property market of this prime surfing destination.
The Harcourts Jeffreys Bay office was formerly Homenet Phoenix, one of scores of Homenet offices around the country that have converted to the international brand.
And Anne Crous, principal of Harcourts Jeffreys Bay, says Harcourts’ wide international experience and excellent value proposition for agents and consumers are already creating a stir in the local market.
“Harcourts is represented in important international markets and our franchise area including Jeffreys Bay and St Francis Bay is among the favourite SA destinations for overseas buyers. We confidently expect that our conversion to the brand will give us better access to these buyers,” she says.
“One of the most innovative tools in the Harcourts offering is its online, Google-based marketing package which gives Harcourts offices a leading edge. Its training programmes are also a cut above the rest and our agents report that they have already benefited greatly from their initial exposure to the Harcourts programme. This will, no doubt, enable us to hone our service to local and international clients alike.”
She adds that the conversion to the brand comes at a fortuitous time. “The local property market is showing signs of a turnaround. Inquiries are growing thanks to more confidence among buyers brought about by easier access to financing, lower interest rates and more affordable property prices.”
Property prices in the area now range between R500 000 for apartments and R7m for luxury holiday properties. Family homes are selling from R800 000 upwards.
Martin Schultheiss, CEO of Harcourts Africa, says the new brand is creating high levels of interest. “Harcourts has grown apace in spite of the difficult economic conditions this year. While other local groups were curtailing operations, Harcourts added more than 20 new offices.”
Harcourts is the fastest growing real estate group in Australia and the largest in New Zealand. It also operates in China, Fiji, Indonesia, Singapore and Zambia and has been rated by world real estate authority Stefan Swanepoel as one of the top five international real estate brands.
ISSUED BY HARCOURTS AFRICA
FOR MORE INFORMATION CONTACT
ANNE CROUS ON
042 296 1740 OR VISIT
www.harcourts.co.za
Distributed by/ versprei deur
The Mega/ Press Network
Pse direct any enquiries to
012-333-6644,
073-946-9649 or
megw@telkomsa.net
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27 November 2009, 09:13:59
HIGH WORLD CUP RENTALS NOT A PIPEDREAM SAYS GREEFF MANAGER
The predicted demand for rental accommodation over the Soccer World Cup period is now beginning to become evident, says Marion Taylor, Greeff Properties Atlantic Seaboard director.
What is more, says Taylor, although the Soccer World Cup itself will only take up 36 days in June and July, some of the bookings coming in are for six months or longer.
This, she says, appears to be because those serving the Soccer World Cup (on a variety of fronts) from TV coverage to food catering often have to be in South Africa for long periods before and after the cup events.
An example of a rental of this kind which is available for short term letting through Greeff Properties is a bungalow on the beach at Bakoven which sleeps eight. Taylor anticipates that this type of property will be snapped up once the match venues are announced on the 4th December.
Asked if signing up unknown tenants from another country could put the property at risk, Taylor said that large upfront deposits will accompany all bookings and will not be refunded until the departure of the tenant and careful inspection of the property has taken place. In addition, the full rental will also be payable in advance.
For further information contact Marion Taylor on 083 448 0300 or email marion.taylor@greeff.co.za
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27 November 2009, 09:11:47
International real estate group Harcourts, which already has a large footprint in the KwaZulu-Natal Midlands and along the north and south coasts, has now consolidated that presence with the conversion of five former Homenet offices in Durban to the global brand.
The five offices will now trade as Harcourts Westville, Harcourts Brighton Beach, Harcourts Musgrave, Harcourts La Lucia (formerly Homenet Steve Millington) and Harcourts Tops (formerly Homenet Wade & Quine).
They are among scores of former Homenet offices and more than 20 other agencies that have converted to the Harcourts brand in the past year.
Martin Schultheiss, CEO of Harcourts Africa, says the energy and new vision the international brand has brought to SA’s real estate industry are eliciting great excitement in the local market. “We’ve been growing fast while other real estate groups were shrinking because of the tough economic conditions of the past year.”
And the owners of the Durban offices point out that the Harcourts value offering holds great benefits for property consumers as well as real estate offices.
“The group offers very effective marketing and managing tools that will give us an edge in the market, to the benefit of all consumers who want or need to sell or buy property,” says Jonathan Styles of Harcourts Musgrave.
Kathy Bledsoe of Harcourts Brighton Beach says the group offers a wealth of international experience and expertise. “It also opens doors for local agencies in the international arena thanks to Harcourts’ presence in important international markets. As one of Durban’s best established agencies, we were proud to join Homenet years ago – and now we are proud to be associated with the Harcourts brand,” she says.
Annatjie Angelo, owner of Harcourts Tops, adds that Harcourts offers excellent support systems as well as training in the new systems it has introduced locally. “In these difficult market conditions it is also reassuring to have the might of such a strong international group behind us, the benefits of which will also be felt by our clients,” she says.
Harcourts is the fastest growing real estate group in Australia and the largest in New Zealand. It also operates in China, Fiji, Indonesia, Singapore and Zambia and has been rated by world real estate authority Stefan Swanepoel as one of the top five international real estate brands.
ISSUED BY HARCOURTS AFRICA
FOR MORE INFORMATION CONTACT
MARTIN SCHULTHEISS ON
031 201 1060 OR VISIT
www.harcourts.co.za
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24 November 2009, 11:29:32
Property in high demand
According to Nils and Elizabeth Hanneman, Broker/Owners of RE/MAX Central – Norwood, the local property market is performing well with sales volumes currently higher than last year. “We foresee further growth from early 2010,” they say.
Launched in October 2007, the office covers the north eastern suburbs of Johannesburg and surrounds east of the M1 highway, including Norwood, Orange Grove, Sydenham, Highlands North, Bramley, Kew, Lombardy, Rembrandt Park and Lyndhurst as well as Linksfield, Senderwood, St Andrews and Bedford Park.
Commenting on entry level property in these areas, Nils says that Orange Grove is in high demand with homes fetching anything between R750 000 and R1,25-million. “Sydenham and Highlands North prices range between R1-million and R2-million. Many of these homes are built on double stands of approximately 990m2,” says Nils. Property in trendy Norwood with its sidewalk cafés and newly upgraded shopping mall falls within the R800 000 to late R2-million price bracket.
With stand sizes of approximately 1500m2, Bramley, which is within walking distance to Melrose Arch, is another popular area to invest in. “Here buyers can expect to pay anything from R1,1-million for an entry level home to R3-million for properties with business rights,” says Nils, adding that they currently have outstanding properties from the area on their books. “We have an eight-bed, eight-bath Bed and Breakfast going for R3,3-million as well as a business property with seven reception areas on a main road with high exposure for R2,3-million.”
Lyndhurst, Lombardy East and Rembrandt Park still offer great value for first time buyers with townhouse prices reaching the early R400 000’s and houses starting at around R800 000.
“Luxurious lock up and go properties are also high in demand in Linksfield, Bedford Park, Senderwood and St Andrews,” says Nils. Entry level homes here start at about R1,1-million for townhouses while houses range from R2,5-million upwards.
Homeowners in the area who are struggling to make ends meet in tough economic times, will furthermore be relieved to know that RE/MAX of Southern Africa has partnered up with First National Bank (FNB) on their Quick Sell Plan (QSP).
Says Adrian Goslett, Assistant Regional Director of RE/MAX of Southern Africa: “The QuickSell Plan is a private sale that enables customers to voluntarily sign a mandate with an estate agency chosen by FNB to sell their property in the shortest possible time. Therefore, allowing them the opportunity to move on with their lives - clear of a debt burden they can no longer service.”
These customers will not be black listed if no legal action has been taken while any shortfall owing to the bank can be paid off over a period of up to 20 years. “The QuickSell product is also very attractive to buyers, offering them a 50% discount on transfer costs and registration fees and up to 100% bonds for those who qualify,” comments Adrian.
In addition, RE/MAX of Southern Africa and Yellow Hammer announced a strategic partnership to supply auctioneering services to the property market. This concept differs from traditional methods of auctioning in that it combines the estate agent methods of selling with that of auctions. This way, estate agents can use their expertise, skills and contacts to increase the exposure of a property while the auction is used to efficiently conclude the transaction.
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24 November 2009, 11:04:18
In the past we have posted various articles with regards to "South Africa Experiments With Houses Made of Sand"
We have recieved many comments and questions regarding this article and for that reason we are now posting
the details of the Architectural company who are behind the project. If you have any questions or comments,
the link below will take you directly to their website...
MMA Architects
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19 November 2009, 16:28:38
International real estate group Harcourts is now an established presence in Pretoria, following the conversion of the three Homenet operations in the city to the global brand.
These are now trading as Harcourts Pretor, Harcourts Maxima and Harcourts Maritz, thanks to the implementation of a partnership deal between Harcourts International and South Africa’s Homenet group, which has now been renamed Harcourts Africa and has almost completed the re-branding all its offices around the country.
Harcourts is the fastest-growing real estate group in Australia and the biggest in New Zealand. It also operates in China, Fiji, Indonesia, Singapore and Zambia and has been rated by world real estate authority Stefan Swanepoel as one of the top five international real estate brands.
And Harcourts Africa CEO Martin Schultheiss notes that it clearly represents the “next generation” of estate agency practice, with a huge value proposition for both franchisees and clients that is already injecting new energy into the SA real estate industry and raising the bar on service standards.
Irene Prinsloo, principal of Harcourts Pretor says she is particularly excited about the Harcourts values and “people first” methodology. “Branding is cosmetic and any company can adopt a new look. The difference is that Harcourts actually follows through in that they abide by a very high standard of customer service and are also intent on adding value to franchisees and making them successful.”
Riaan Maritz of Harcourts Maritz says the partnership with Harcourts has already made the local group a “next level” industry player, and adds that the opportunities for entry-level agents with the group are now particularly good because of the excellent training programmes that Harcourts offers.
Dr Willie Marais, owner of Harcourts Maxima, believes the Harcourts marketing programme will prove to be a real boon for agents and home sellers as it offers a huge choice of material and options and allows for better e-marketing and in-house applications.
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FOR MORE INFORMATION
CONTACT MARTIN SCHULTHEISS
ON 031-201-1060 OR VISIT
www.harcourts.co.za
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19 November 2009, 16:26:57
Attractive lakeside apartments are another testimony to rawson construction skills, says paul henry
Rawson Developers’ claim that their construction division can be very useful to other developers has been proven by “The Lakeside”, recently completed on Henley Road, overlooking the parkland and water of Zandvlei at Lakeside, says Paul Henry, MD of Rawson Developers.
“The siting and the design of this very attractive complex make it a good buy right now,” said Henry. “It is within walking distance of the railway station and offers residents the opportunity to walk straight from their security area into the pleasant parklands of Zandvlei.”
On offer are 40 two bedroom and 18 single bedroom units. Floor sizes vary from 41m² to 119m², excluding the balconies and the garages. All units have a balcony and a garage, certain of the units incorporate two bed loft areas on a mezzanine floor.
The kitchens, says Henry, are especially attractive with granite countertops, upper and lower cupboards and Defy ovens and hobs. The living rooms and kitchen are tiled and the bedrooms carpeted wall to wall. Ample built in cupboards are fitted.
A big attraction of the site, said Henry, is that it flanks a proclaimed wetland which is home to a number of water fowl and land birds. To stabilise the structure in such conditions, 168 augured/precast concrete piles were sunk and linked with ground beams.
Henry estimates that the total construction cost of the development is in the region of R#2 million. The building cost (without the civil engineering and the piling contract) was R28,7 million. Rawson’s construction team was on schedule and on budget – they completed the entire project in six months from 15th January to 31st July.
The entire 9 700m² site (which includes a wetland area) is enclosed in electrified fencing and has an electronically controlled entrance. Parking for some visitors’ cars is provided.
“In many similar cases, we would offer our sales and marketing teams as an additional service but that has not been called for here,” said Henry.
The selling and renting costs have not been publicised, but the developer can be contacted on 082 427 7865 or 083 530 3626 for further information.
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16 November 2009, 15:34:13
Rawson properties now selling 2,5 franchises per month
Rawson Properties has sold 23 new franchises since 1st January this year and the group reports that the sales pace is now picking up to four per month.
Half of the new franchises are in Rawson’s fast growing northern region where franchisees have been signed on in Bloemfontein, Kimberley and Tzaneen as well as areas close to Johannesburg, such as Vanderbijlpark, Secunda and Musina.
In the southern region, sales and resales have expanded the group’s spread as far afield as Port Elizabeth, George, Wilderness, Malmesbury, Ceres and Langebaan and in the Cape Peninsula to Fish Hoek and Noordhoek. The group now also has two franchises in Khayelitsha.
“It might surprise those who think that residential property is in the doldrums to know that some of our new franchises, like Brackenfell and Parklands, are already proving to be among our top performers. We expect to sign up a further 30 franchises by the end of 2010.”
The Rawson Group, he said, is finding that the majority of those applying to them for franchises are already qualified agents, most of whom have completed their now obligatory Recognition of Prior Learning programme. They are now keen to set up on their own and take advantage of Rawson’s branding, their referral network, their user friendly systems, their ongoing NQF training and consistent management support programme.
“We have on several occasions said that now is good time to be setting up in a franchise because we believe that the residential property prices countrywide will be on an upward path soon.”
Asked if a person with no property experience can run a franchise, Clarke said, "Yes, absolutely: all you need is the backing of a good brand and support of a network that will help you obtain the necessary statutory requirements. You also, of course, need some good old fashioned entrepreneurial flair – and most of those coming to us have this."
For further information contact Tony Clarke on 021 658 7100 or email tony@rawsonproperties.com
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13 November 2009, 09:49:29
Star agent Mandy Blom has been honoured by Harcourts Africa as the national real estate group’s top-selling sales consultant of the past year.
Blom, principal of the Harcourts office in the Mpumalanga town of Lydenburg, took the award for the most units sold at the recent inaugural annual conference of Harcourts Africa, which is the successor to the old Homenet property group.
At the same time, she was named as one of the group’s top 20 revenue-earners in the past 12 months.
“This achievement underlines the continued buoyancy of the Lydenburg property market in the face of the economic downturn,” says Harcourts Africa CEO Martin Schultheiss. “This is largely due to the strong performance of the area’s platinum mines and increase in the resident population.
“However, the fact that Mandy has even been able to outsell colleagues in major towns and cities is also testimony to her own dedication and commitment to excellent service. She is a real credit to Harcourts.”
ISSUED BY HARCOURTS
FOR MORE INFORMATION CALL
MANDY BLOM ON
013 235 4131 OR VISIT
www.harcourts.co.za
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13 November 2009, 09:48:19
The Harcourts outlets in Richards Bay. Empangeni and Ballito have been named by the real estate group as its three top rental property management offices of the past year.
The agency principals received their awards for the most management revenue generated at the recent inaugural annual conference of Harcourts Africa, which is the successor to the old Homenet property group.
“The short-term rental market in Ballito is very strong with the area now rivalling other top leisure destinations such as Plett and Hermanus,” says Harcourts Africa CEO Martin Schultheiss, “and the longer-term market in the Richards Bay / Empangeni area continues to be buoyed up by new infrastructural and commercial development around the port.
“However, the earnings generated by these three agencies over the past year are also very much an indication of the determination with which they have expanded their rental property portfolios and the skill with which these are managed.”
ISSUED BY HARCOURTS AFRICA
FOR FURTHER INFORMATION CALL
MARTIN SCHULTHEISS ON
031 201 1060 OR VISIT
www.harcourts.co.za
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13 November 2009, 09:47:15
Cbd claremont flats at competitive prices
Those who believe, probably rightly, that the high density CBD of Claremont is an area in which property prices are poised for spectacular rises will be interested to learn that the Greeff Properties sectional title team serving this area has a mandate to sell a studio apartment and two bedroom apartments at prices ranging from R795,000 to R1,5 million. These apartments are in the totally refurbished Piccadilly Court complex.
The refurbishment, said Maureen Grimbeek of Greeff Properties, has been done with great care and to high standards. The project was handled by the respected developers Aslo Properties, using the architectural practice Albertyn Viljoen to achieve a 21st Century look in which some of the units have loft mezzanine bedroom levels.
The finishes throughout the refurbished apartments are upmarket and include granite kitchen countertops, secure parking, laminated floors and balconies.
Maureen Grimbeek and her business partner Vilma Gruneberg can be contacted on 082 892 5456 and on 082 895 9172 or via the Greeff Properties Head Office 021 763 4120
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13 November 2009, 09:45:49
Homebuyers beware the three month wait for your title deeds after registration
It can be very risky, warns Anton du Plessis, CEO of Vineyard Estates, to buy a home in the confident expectation of selling it soon after transfer - and speedily registering the property into the new buyer's name. In fact, any transaction that depends upon the availability of the physical Title Deed within three months of transfer registering should cater for the fact that in many cases Title Deeds are taking up to and over three months to emerge from the Deeds Office. Unless a conveyancer specifically requests that the Deeds office 'expedite' the issuing of the Title Deeds, the process can take four months or longer, depending on the pace of the Deeds Office.
In many cases, the seller may not want the buyer to know that he has only recently purchased the property, effected renovations, and then on-sold at a profit. Should he sell a week after taking transfer, the paperwork can be ready within four to five weeks. The conveyancer would then be in a position to lodge the transaction at the Deeds Office, but would be unable to do so without the physical Title Deed. He could then easily wait a further seven weeks for the Title Deeds.
In current markets, where profit margins on speculative purchases are lower, a seven week delay, says du Plessis, can cause cash flow problems if the speculator is relying on the transfer to release cash by a specific date.
“I would urge cash buyers who are undecided as to whether or not to register a small bond over the property to make sure that they do not anticipate using the property as security for any borrowing immediately after transfer. Most of the larger lending institutions will not afford credit without the Title Deed. In fact, even with proof of transfer into the purchaser’s name from a reputable firm of attorneys, banks will seldom budge on this condition.”
“I believe this is right: buyers should refuse to advance any of the purchase price before transfer. The risks and stakes are too high. There are good reasons that the whole process of alienation is so comprehensively legislated, and the handover of funds only effected on actual registration.”
For further information contact Anton du Plessis 083 234 2909 or email anton@vineyardestates.co.za
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13 November 2009, 09:44:14
Upgraded mowbray home offers best of old and new world
A house which, says Lanice Steward, MD of Anne Porter Knight Frank, epitomises the transformation of Mowbray, Cape Town, into a ‘with-it’, up and coming suburb in which it is now fashionable (and very convenient) to live, has come onto the market at a price of R1,895 million.
“This,” said Steward, “is a traditional, solid, comfortable old Mowbray home to which changes and upgrades have given a totally new look while in no way destroying the atmosphere and feel of the mid-20th Century style which has such features as wooden floors, leadlight windows and a tiled roof.”
The home has three bedrooms and two bathrooms, a dining and a living room, a study and two garages.
“It is almost impossible to get this amount of space in a newly developed complex today,” says Angela Magner of APKF. “Modern homes at this price have 40% less space and little of the charm of this era.”
For further information contact Angela Magner on 082 468 5550 or Beryl Southan on 082 438 3730
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13 November 2009, 09:42:54
New knight frank website aimed at the global buyer
Property watchers – and those who simply enjoy browsing the internet to keep abreast of economic trends – will be interested to learn that Anne Porter Properties’ UK associates, Knight Frank, one of the world’s leading property companies, has upgraded their website, www.knightfrank.com.
“This,” says Lanice Steward, MD of APKF, “is particularly interesting to many because Knight Frank, being a global company with upmarket connections and with branches in over 40 countries, i.e. in all five continents, they cater particularly well for the steadily growing band of international property investors.”
Some of Knight Frank’s clients, says Steward, have homes or offices in three, four or even more countries and have proved exceptionally shrewd in spotting the up and coming property precincts. Right now, Steward believes, interest in South Africa among such people is rising to an all time high.
The Knight Frank website, adds Steward, showcases everything from a 210 million Hong Kong dollar five storey townhouse on Severn Road, overlooking the bay (a HK dollar is valued roughly at the same level as the South African rand) to more affordable but just as exotic homes such as a canal fronting apartment in the Bahamas or a two acre plot on the Kilifi Creek estuary in Kenya. The latter, for those interested, is priced at four million Kenyan shillings.
All APKF’s properties feature on the KF website and, says Steward, all help illustrate two facts right now. These are that residential property prices have been lowered across the world without exception and that Africa – and South Africa in particular – now offer what is almost certainly the best value of all.
“I think we sometimes underestimate the appeal of what we have to offer here in Africa and in South Africa,” said Steward. “For many people a fortnight in the bush among wild animals is a life changing experience. For others a visit to a wine estate or a hike on Table Mountain has real glamour of a type not easily found in Europe or the UK today.
“For the jaded European or American now bored with his cultural roots, it can pay handsomely to take a break with urbanised living and regenerate himself in Africa. That is one of the lessons that I believe the new Knight Frank website will impart – it is certainly worth perusing.”
KF report that they are getting increasing enquiries on properties in all price categories, particularly from South Africans living abroad but wishing to invest in SA.
For further information contact Lanice Steward on 021 671 9120 or email lanice@anneporter.co.za
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13 November 2009, 09:41:34
It is difficult to rival older claremont apartments on space and convenient siting
The last decade, says Maureen Grimbeek of Greeff Properties, has shown conclusively that two factors set the older, more distinguished apartments of the Claremont area apart from most others, including many that have recently been built and are recognised as being chic and exceptionally well fitted out.
These two factors, said Grimbeek, are the ample floor space of the older apartments and the close proximity to Cavendish Square.
Taking as an example a two bedroom, two reception room, two bathroom apartment in Claremont’s five storey Eversley complex which Greeff Properties are now marketing at R1,995,000, Grimbeek said that this unit has no less than 128m2 of floor space.
“That,” she said, “is much the same floor area as many modern, freestanding three bedroom simplex and duplex homes, but it is not unusual to find this amount of space in the older flats of Claremont and Kenilworth. A couple or family living here would definitely be able to ‘spread themselves’ and the feeling of space would be enhanced by the splendid mountain views on offer from the north-facing rooms and balcony of this apartment.”
The nearness of Cavendish Square, added Gruneberg is ‘surprisingly’ very important to many people, both young and old.
“The more one lives here, the more one realises that Cavendish Square today has become a venue in its own right, a sort of “suburban village” with a life of its own,” said Gruneberg. “Some people visit it three or four times a week, others dine there two or three times a month. To be able to live close to it is for many people an enormous plus factor.”
Caren de Nobrega of Greeff Properties Rental Division said that demand from investors for this type of apartment is always strong and there has never been sufficient stock to meet the need. What is more, she added, there are now clear signs that rentals are set to rise and that demand is on the increase.
Maureen Grimbeek is partnered in her sectional title sales operation by Vilma Gruneberg. They can be contacted on 082 892 5456 and on 082 895 9172 or via the Greeff Properties Head Office 021 763 4120
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13 November 2009, 09:38:58
Building standards in low cost housing are shocking, says rawson chief
None of the larger players in the SA development/construction sector, has, to his knowledge, ever objected to the state policy weighting the tender process in favour of black empowered, previously disadvantaged contractors, especially when it comes to awarding low cost housing contracts, says Paul Henry, MD of Rawson Developers.
However, he adds, some form of modification in the process is now necessary because time and again those to whom the contract is awarded are incapable of doing the job efficiently.
“On any private enterprise contract we have to finish on time and to the specifications. If we do not, we are heavily penalised but on state housing it appears to be possible for the contractors, some of whom have had no previous building experience, to end late and get away with incredibly sloppy work.”
With too little knowledge of the tender process, says Henry, certain newly-arrived black empowerment firms will price ludicrously “tight” in order to ensure that they get the job. Then, as the contract progresses, it will become increasingly obvious that they cannot make a profit – and, in many cases, in fact, they are heading for a big loss.
“At that point,” says Henry, “101 cost cutting shortcuts are taken, most of which are illegal and all of which subsequently result in ongoing repairs being absolutely essential.”
All too often, said Henry, he has come across sites where the plaster is falling off the walls, the bricks lack sufficient mortar to be structurally sound, the doors do not close, there are gaps between the window frames and the walls or the electrics fuse one day after handover.
Henry said that the public bodies awarding these contracts should be far more sceptical when presented with tenders which are clearly below the going rates.
“All tenders should be carefully scrutinised and the contractor’s – if there is any – previous work should be inspected. On most contracts there is no obligation to take the lowest or any tender and if the contractor is clearly not up to the job he or she should either be rejected or be obliged to go into joint venture with another with more experience.”
Henry pointed out that the deplorable state of many of the housing projects which are handed over results in those served feeling that, once again, they are not getting a fair deal.
“The whole “poor delivery” complaint is fuelled all over again – despite the goodwill and the best efforts of the authorities.”
Henry was critical of the official clerks of works and inspectors whose task it is to monitor the building work as it progresses and on completion.
He was also highly critical of the NHBRC (The National Home Building Registration Council) which he described as “awash with funds” but all too often negligent in inspecting the completed buildings of its members – as it is expected to do in terms of its constitution.
For further information contact Paul Henry on 021 658 7100 or email paul@rawson-developers.co.za
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13 November 2009, 09:35:00
The best blind company moves to buchanan square
Maintaining Redefine Properties’ growing reputation for being able to attract top-level creative and artistic organisations to their Buchanan Square development on the eastern fringe of Cape Town’s CBD, The Best Blind Company has purchased over 300m² in the newly refurbished Hills building part of Buchanan Square.
Founded by sisters Tracy and Debbie Hutchings, The Best Blind Company specialises in “the unusual and the extreme”, creating blinds, curtains and soft furnishings for projects as far afield as London, New York, Mauritius and the recently completed Villa Orpheus in Mykonos, Greece.
“After seeing a lack in the local market of quality, contemporary poles and fittings we designed our own exclusive range of stainless steel fittings which we supply to the industry locally and nationally. The growing reputation of Buchanan Square as home for innovative, creative entrepreneurs – in a variety of disciplines – suits our operation and has given us the opportunity to open a retail space to sell our diverse range,” said Debbie Hutchings.
“We are pleased to be out of the CBD and do enjoy the energy, vibe and enthusiasm we have found at Buchanan Square.
“The easy access to freeways and all the suburbs makes doing business here easy,” added Hutchings.
For further information contact The Best Blind Company on 021 461 2122 or Debbie 083 459 9345 and Tracy on 083 441 9030
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13 November 2009, 09:31:57
Meyer + Vorster Architects has purchased over 280m² on the third floor of the historic Armoury building in Redefine Properties’ Buchanan Square, the newly refurbished development in Sir Lowry Road in the East City precinct.
Tiaan Meyer, who, with Jan-Heyn Vorster founded the firm in 2002, said that the premises suit them admirably because the entire precinct is fast becoming recognised as the new creative centre in Cape Town – from advertising, photography and modelling casting to furniture and fashion sales, ceramics and custom designed kitchens.
Now employing a qualified staff of seven, Meyer + Vorster is, said Meyer, a genuinely multi-disciplinary design firm offering architecture, urban design and interior design/decor. There has always, he said, been a strong orientation towards avant garde housing in the firm but they have also been involved with such big projects as the Northpine Secondary School and the Ina Paarman kitchen at Constantia, the Kuyasa Transport Interchange at Khayelitsha and the Orient Restaurant at Melrose Arch.
Ivo Nestel, Redefine’s sales executive for Buchanan Square, said that it had been “a coup” to attract a firm of Meyer + Vorster’s standing and he hoped that other architectural practices would follow their example.
For further information contact Ivo Nestel at Redefine Properties on 021 425 1000
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13 November 2009, 09:27:48
The Harcourts outlet in the KwaZulu-Natal Midlands village of Hilton has been honoured as the real estate group’s top performing office of the past year.
Agency principal Andrew Line received the accolade for the highest revenue generated per sales agent at the recent inaugural annual conference of Harcourts Africa, which is the successor to the old Homenet property group.
At the same time, Harcourts Hilton rookie agent Cathy Fitzpatrick was named as the group’s Rising Star of the year, and the agency also won a Bond Choice award for the amount of new home loan business it has generated.
“These achievements reflect the ongoing demand for property in Hilton despite the economic downturn,” says Harcourts Africa CEO Martin Schultheiss. “The village, just a few kilometres from the KZN capital of Martizburg, appeals to investors as well as lifestyle buyers looking to escape to the country, and of course is close to several of the country’s top schools.
“However, the fact that Harcourts Hilton has dominated the local property scene with a market share of more than 60% for several years also points to the energy and dedication of Andrew and his team, who consistently deliver outstanding sales results.”
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FOR MORE INFORMATION
CONTACT ANDREW LINE
ON 033 343 3345
OR VISIT www.harcourts.co.za
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13 November 2009, 09:26:30
Star agent Pieter Maritz has been honoured by Harcourts Africa as the national real estate group’s top-earning sales consultant of the past year.
Maritz, co-owner of the Harcourts Maritz office in Centurion, was presented with his award at the recent inaugural annual conference of Harcourts Africa, which is the successor to the old Homenet property group.
At the same time, Harcourts Maritz was named as one of the group’s top performing offices of the year, placing second among the 10 highest-earning franchises, and winning a Bond Choice award for the amount of new home loan business it has generated.
“These achievements emphasise the underlying strength of the Centurion market even in tough economic times,” says Harcourts Africa CEO Martin Schultheiss. “Demand has remained steady thanks to its great location midway between Pretoria and Johannesburg, its excellent infrastructure and a wide range of property appealing to all types of buyer.
“However, they also point to the dedication and energy of our outstanding team of local agents, including Pieter, whose real estate sales performance over the past 10 years is legendary.”
ISSUED BY HARCOURTS AFRICA
FOR MORE INFORMATION
CALL HARCOURTS MARITZ
ON 012-653-0386
OR VISIT www.harcourts.co.za
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13 November 2009, 09:25:04
The Harcourts franchise in Pretoria has been honoured as the real estate group’s top-earning office of the past year.
Harcourts Pretor principal Irene Prinsloo received the accolade for the highest revenue earned at the recent inaugural annual conference of Harcourts Africa, which is the successor to the old Homenet property group.
At the same time, Harcourts Pretor agent Soti Christodoulou was named as one of the group’s 10 top agents around the country, and the agency also won a Bond Choice award for the amount of new home loan business it has generated.
“These achievements reflect the fact that the property market in the capital city has weathered the economic downturn very well,” says Harcourts Africa CEO Martin Schultheiss. “Pretoria has the advantage of having many subsidised buyers, which means it tends not to experience the same property highs and lows as other major centres. It also has a large student population and many embassy workers, which make it an attractive proposition for long-term property investors.
“However, the earnings generated by Harcourts Pretor over the past year are primarily an indication of the skill, dedication and determination of Irene and her team, who refused to be daunted by bad economic news and just kept right on making the sales.”
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FOR MORE INFORMATION
CONTACT IRENE PRINSLOO
ON 012 346 8829
OR VISIT www.harcourts.co.za
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06 November 2009, 10:04:44
International real estate group Harcourts has opened two new offices in KwaZulu-Natal to serve the area stretching from Lion’s River to Hidcote in the Midlands as well as the coastal regions around Glenashley.
These are the latest in a string of new offices that have opened under the powerful new Harcourts Africa brand following the partnership deal late last year between Harcourts International and South Africa’s Homenet group, which then began rebranding all its existing offices.
The new Harcourts Lifestyle office in the Midlands will specialise in residential properties as well as smallholdings and farms and is headed by Liz Fischer, who says: “Now is a good time to prepare for the coming upturn in the property market. The slower market offers an opportunity to get systems and training in place and I am excited about the innovations that Harcourts is bringing to the SA market.”
Waseem Moosa of the new Harcourts Gateway office in Glenashley adds that the Harcourts brand brings proven systems as well as international exposure that will greatly benefit local property buyers and sellers. “The backing of an internationally renowned property brand will sharpen our offering to our clients,” he says.
Harcourts has been rated one of the top five international real estate brands by world real estate authority Stefan Swanepoel. It is also the fastest growing group in Australia and the biggest in New Zealand and operates in China, Fiji, Indonesia, Singapore and Zambia. It currently sells more than $19,5bn worth of property every year.
Harcourts Africa CEO Martin Schultheiss says one of the key aspects of the partnership with the international company was that Homenet, as one of the biggest real estate groups in South Africa, could immediately give Harcourts International a national footprint.
“However, since then, we have also had a constant stream of applications to join Harcourts from other estate agency owners and principals wanting to tap into the new energy we are bringing to the SA real estate market. Indeed, we are currently the fastest growing property group in the country, having added more than 20 new offices in this most difficult of years.”
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FOR FURTHER INFORMATION CALL
MARTIN SCHULTHEISS ON
031 201 1060 OR VISIT
www.harcourts.co.za
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06 November 2009, 10:02:20
The international Harcourts real estate group is now represented in the southern suburbs of Johannesburg following the conversion of top local agencies Homenet Delta and Homenet Olympic to the powerful new brand.
This transition follows last year’s partnership deal between Harcourts International and South Africa’s Homenet group, which was then renamed Harcourts Africa and is steadily re-branding all its offices around the country.
However, both Harcourts offices in the southern suburbs will continue to be headed up by their current highly-experienced principals – Colin Rodrigues at Harcourts Delta and Carlos Moreira at Harcourts Olympic.
Rodrigues, who has high expectations of the new group, says: ”Harcourts has many factors working in its favour which make for a winning formula. Its e-marketing capabilities, Property Manager programme and online training facilities
are particularly impressive and mean that we can now market properties on a truly international platform, create and synchronise all our marketing efforts in-house or brush up on how to obtain mandates or present offers at the touch of a button.”
Moreira also says the international group’s willingness to expand into SA while other companies were contracting their operations was “key to moving past the recession” and adds that Harcourts will give SA property much more exposure ahead of 2010.
“In addition, the Harcourts operating standards will undoubtedly raise the local industry bar significantly.”
Harcourts Africa CEO Martin Schultheiss concurs, saying the Harcourts value proposition is currently creating such excitement in the SA real estate industry that it is driving a huge volume of enquiries from other agency principals.
“This has meant that in addition to rebranding scores of the old Homenet offices that formed the basis of the new group, we have added more than 20 brand new offices since the start of the year - and become the fastest-growing group in the country.”
Harcourts is also the fastest-growing real estate group in Australia and the biggest in New Zealand. It also operates in China, Fiji, Indonesia, Singapore and Zambia and has been rated by world real estate authority Stefan Swanepoel as one of the top five international real estate brands.
Globally, the group currently has more than 600 offices employing 4000 sales consultants, and sells more than $19,5bn worth of property every year.
ISSUED BY HARCOURTS AFRICA
FOR MORE INFORMATION
CONTACT MARTIN SCHULTHEISS
ON 031-201-1060 OR VISIT
www.harcourts.co.za
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06 November 2009, 10:00:49
Last chance to apply for a sseta estate agents bursary
The Services Sector Education and Training Authority’s decision to cut bursaries for the training and RPL (Recognition of Prior Learning) of estate agents was a blow to the industry, says Mike Greeff, CEO of Greeff Properties.
But, he says, certain agencies having paid their skills levies to SSETA, were at an early stage allocated a number of bursaries, some of which still await taking up.
One such branch, says Greeff, is their Atlantic Seaboard operation run by Marion Taylor, who with 27 years in property selling has proved to be an excellent mentor and training facilitator.
This week Taylor confirmed that she is one of the fortunate few to have NQF4 Real Estate training bursaries available for the right applicants.
“These are valuable,” said Taylor, “if the agent has to pay for his training and qualifying it will cost him or her R7 000 or more.”
There are still, she adds, a few agents “out there” who think that they will somehow be allowed to operate after 2011 without the NQF4 qualification but they are making a big mistake, said Taylor.
“The truth is that in 2012 if they still have not qualified, they will not be issued with Fidelity Fund Certificates. This, in turn, means that if they continue to work as agents, they will be acting illegally – and we are hearing reports that attorneys will be instructed by the EAAB not to pay commissions to agents not in possession of valid Fidelity Fund Certificates.”
Already, said Taylor, it is possible to distinguish between those agencies taking the matter seriously and those who are not: the latter have often not even started their RPL training process while the former have often already completed it. In her Camps Bay office, for example, all five agents are already qualified, as are the vast majority of Greeff agents – and the balance will qualify in the coming months.
“Those who would like a confidential discussion about taking up a bursary with Greeff Properties are welcome to do so,” said Taylor, “and should contact Graham Leslie, MD of Greeff Properties on 021 763 4120 or 082 388 0176.”
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06 November 2009, 09:58:57
New redefine strategy will significantly increase average value of properties in their portfolio
Redefine Properties, which since its merger with Apex-Hi and Madison Property Fund Managers, has become one of the top two JSE listed property owning companies in South Africa, is embarking on a move that will reduce the number of their properties currently (over 400) while at the same time raising their average value from ±R40 million to R100 million.
What is more, according to Redefine director, Mike Flax, who has been given control of the new strategy, they should complete this exercise within three years.
Redefine, he says, will dispose of some 40% of their portfolio – but in value terms this will represent less than 20% of the portfolio. These properties, says Flax, are often multi-tenanted and many lack the potential to be transformed.
Concurrent with implementing this process, Redefine will seek to acquire new blue-chip higher profile stock and will continue with their ongoing programme of refurbishing, upgrading or extending current stock.
One of the big advantages to the new policy, says Flax, is that it will enable Redefine’s asset managers to give more time and better service to the properties and tenants that they do manage.
Redefine have recruited Justin Roome, who has recently returned to South Africa from a high-profile USA West Coast investment brokerage, to help Flax implement the new policy. Grant Abrahams, a Redefine Fund manager, is also being moved to the new team.
Flax said that the strategy will help Redefine to continue to achieve above-average linked unit distributions while enhancing the quality of its large and diversified portfolio.
Property brokers throughout SA are being contacted and will be supplied with the relevant data regarding properties for sale. Flax has stressed that, although these properties are at the lower end of Redefine’s portfolio, most have given satisfactory returns over extended periods and will represent excellent value for the right buyers. Brokers are also being encouraged to approach Redefine about potential acquisitions.
For further information contact Mike Flax on 021 425 1000 or email mikef@redefine.co.za
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30 October 2009, 10:41:08
Informative talks on retirement scheduled by the CPOA and associates for 17th November
The next informative public talks at the Cape Peninsula Organisation for the Aged’s retirement centre, Riverside Place, will take place on 17th November at 2.30 pm and will focus, among other topics, on the need for senior people to declutter and simplify their lifestyles and to stretch the budgets as far as possible.
Attention will also be given to the contractual position of anyone signing a retirement village Life Right contract. According to Heather Cape, Development Manager at Greeff Properties, there is still a great deal of confusion in the public’s mind on this matter.
Speakers at this informative session will be Billy Rauch of the Cape Peninsula Organisation for the Aged, Andrew Lottering, the developer of Riverside Gardens, a follow-up retirement complex to Riverside Place, Penny Plougmann of the legal firm Rabie and Rabie, a recognised expert on Life Right systems, and Mike Greeff and Graham Leslie, executives at Greeff Properties.
Amongst the topics that they will discuss will be the fairly precarious position of older single women in South Africa today.
“If they live alone, as many do,” said Cape, “there is always a danger that they will be targeted by criminals who are quite ruthless about looking for people unable to offer effective resistance. Attention will also be paid to the social difficulties of older persons, who can find that their circle of friends begins to diminish once they lose their partner – and their children are not living near enough for regular visits.”
“Widows, spinsters and single women over the age of 55 should seriously consider moving to a secure retirement complex as soon as they can. Most retirement complexes accept persons over the age of 55 – and this is not too young an age to make such a move, which will then put them in touch with likeminded people who are looking for a little social activity themselves,” said Cape. “We have seen single ladies gain a new lease of life, not by suddenly becoming frenetically active and social, but simply by finding that among the 50 or more residents in their centre there are five or six to whom they can relate and become firm friends with.”
An ancillary aim of the talks at Riverside Place will be to expose potential buyers to the Life Right opportunities at Riverside Gardens, scheduled to come on stream in roughly November 2010. Life rights here start at R855,000 for a single bedroom unit, “a superb value offering” in the Cape retirement market, said Mike Greeff, CEO of Greeff Properties.
Riverside Gardens will also be owned and run by the Cape Peninsula Organisation for the Aged and will be equipped with the facilities, which are now more or less standard in their centres - a gymnasium, a heated indoor swimming pool, a library, a sports bar with big screen TV and open areas for other activities.
For further information contact Heather Cape on 021 763 4120 or email hmcape@greeff.co.za
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30 October 2009, 10:39:37
One of Rondebosch’s “grand” homes comes onto the market
Otilia Harker and Jeanne Cowan, Anne Porter Knight Frank estate agents serving Rondebosch and related areas, have secured the sole mandate for a double storey home, priced at R6,8 million which, says Harker, epitomises the gracious lifestyle enjoyed by Rondebosch’s fortunate top 10%.
The home, sited in Portland Road, is, says Harker, in the most sought-after area of Rondebosch and is within easy cycling distance of the three or four long-established schools which traditionally have attracted residents to this area.
“Although we do not have accurate records the home could be 100 years old. It has been totally refurbished and modernised (with certain areas open plan) but without detracting in any way from its original Herbert Baker type charm. It has solid Oregon pine floors, dark wood shutters, oak wood panelling in the study and living area, a deep rose-coloured tile roof, three original cast iron fireplaces and a stone plinth along the exterior base.”
The house has five bedrooms, three bathrooms, two living rooms and a large entrance hall, a family room, a study, servant’s quarters, garaging for two cars and secure parking for a further three.
Lanice Steward, MD of Anne Porter Knight Frank, said that this is the type of home most Rondebosch residents would want to own – “and that tells you all you need to know about it”.
For further information contact Jeanne Cowan on 083 448 8108 or Otilia Harker on 083 681 8646
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30 October 2009, 10:37:48
Increasingly comprehensive propstats service now of real benefit to IEASA western cape members
PropStats, the statistical data service set up by the Western Cape branch of the Institute of Estate Agents, has over the last year been upgraded and made more comprehensive with the result that it is increasingly able to provide a really useful free service to IEASA Western Cape members.
This was said recently by Annette Evans, PropStats manager.
Evans said that sales data for some 1 500 estate agents in an area from Simonstown to Swellendam to Saldanha are being submitted to PropStats. In some areas, e.g. the Atlantic Seaboard, over 90% of agents are contributing. In certain outlying areas e.g. Swartland less than 50% contribute – but this does not alter the overall veracity of the data and the number of participants rises month by month as further value is placed on this service. What is more, said Evans, this information comes through in real time i.e. as soon as the sale has been confirmed, which is well before the actual transfer takes place.
The 120 data suppliers, some working for as many as 100 agents, said Evans, give PropStats such information as the property’s address and erf number, the listed price, the actual sales price achieved, the square meterage of the home and the plot, the numbers of bedrooms, bathrooms and amenities rooms – together with additional features such as swimming pools, servants accommodation and garaging. The age and condition of the buildings and the time the home was on the market are also provided. PropStats also offers agents the facility of adding other relevant data.
“This information,” said Evans “helps an agent to evaluate other properties in the area he serves and to do so with a high degree of accuracy. It also enables the agent to justify the valuation to the seller and buyer – he can, using these individual reports, prove that his assessment is market related.”
Evans said that IEASA Western Cape had listened carefully to its members and PropStats has therefore evolved to provide the agents with the information they have asked for.
“Now,” she said, “we intend to go a step further and give an informed analysis of the data which will provide agents with a broad picture of what is happening on the residential front and in the various areas of the Western Cape.”
Asked what initial analyses have shown, Evans said that the latest figures indicate that a recovery in the housing field started about August and gained momentum from early September. This, she said, is shown by the decreased listing days taken to sell homes and by the much publicised deflation in prices now easing off – with a rise in price (the first in two years) probably becoming evident from early 2010.
PropStats, said Evans, facilitates the sharing of sales data between agents and is a free benefit of membership to IEASA.
Also available on the internet is IEASA’s own website www.ieasawcape.co.za for up to date information on the Institute of Estate Agents of the Western Cape and relevant information regarding changes to our industry at this time. Anyone wishing to join the Institute or sign up to PropStats can visit www.propstats.co.za. The site provides them with the membership application and a debit order form. (The cost of the service is only R45 per month or R540 per annum per member.)
Although PropStats data is not available to the general public, agents can provide their clients and the public with this data when doing valuations on their properties. PropStats, said Evans, can also be accessed online in a client’s home when and agent is price counselling or presenting a valuation if required.
Besides the usual agent members of the Institute, Valuers, Attorneys and Accountants, Banking Executives and other related industries are able to join as affiliate members. Each member is then provided with an individual login code and password enabling him or her to access PropStats online anywhere and call up the data 24/7
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30 October 2009, 10:36:31
Greeff properties bump up their sectional title team
Greeff Properties sectional title team, said the company’s Chief Executive, Mike Greeff, has reached the stage where, proven successes launching and selling such projects as the Evergreen retirement complex, Rondebosch Village, Intaba, Rosebank Views, Rondebosch Oaks, Monorgan Mews and various other exclusive apartments enable it to claim to be a front runner in this aspect of property marketing in these areas.
Greeff Properties executives have accordingly appointed a further agent to their sectional title team – in the confident expectation that by the middle of 2010 this sector will once again have taken off.
Lana Holt will be joining Brent Farrell as an area partner. Holt has had ten years sales experience with Anglo American Property Services in the retail property sector and six years residential/sectional title experience covering Constantia to Rondebosch. In her new position she will focus on upmarket apartments and lock-up-and-leave townhouses in the Claremont and Rondebosch
Greeff said that Holt is known to be “a people’s person”, one who understands well the importance of regular, almost daily, feedback to clients.
“This is something we in our company rate very highly and was one of the main reasons why she was chosen for this new position.
For further information contact Lana Holt on 021 763 4120 or email info@greeff.co.za
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30 October 2009, 10:30:52
As of today, new detailed maps of many South African cities and towns, including Johannesburg, Cape Town, Durban, Pretoria, Port Elizabeth and East London, are accessible on Google Maps through any web browser or via Google Maps for Mobile on data enabled handsets. Although already available in South Africa, the map data has been improved dramatically and is now available with additional features. In addition to searching online Maps, Google Maps users will now be able to find businesses and check driving directions. Businesses will be able to add their own business listings for free via Google Maps Local Business Centre.
The map data includes a substantial amount of user generated content provided via Google Map Maker as well as thousands of business listings for South African cities. The new maps also include ‘My Maps’ and hotspots of a number of South African artists and experts such as music favourites Freshlyground and Thandiswa Mazwai, and designer Desre Buirski.
Google Maps in South Africa can be viewed in several ways. The “Map” button shows the traditional map view, ideal for finding an address or planning directions between points A and B. To explore in more detail users can choose the “Satellite” button, which includes satellite and aerial photographs. The “Terrain” view shows the physical geography of a place (such as hills and mountains). This button is a great choice if you’re heading out into the countryside.
Stephen Newton, country manager for Google South Africa said:
“Google Maps is an valuable addition to the list of products that we’re launching specifically for South Africans, given the market’s importance to us. Google Maps isn’t only about searchable, digitized maps helping you to find a local place, service or product. Our goal with Maps is to make information with a geographical dimension available to everyone and to allow users to update the maps and develop on top of them. We believe more accurate, representative local information can greatly improve the breadth of information available about a given area and in turn can bolster tourism and business investment.”
Google Maps in your pocket:
Information on streets, addresses and local businesses and services will now be accessible via your mobile phone when you’re on the road or in areas you don’t know. Google Maps for Mobile can be downloaded for free. With this tool, users will be able to access detailed maps of South Africa and the world whilst on the go.
Shaun Kirk, Head of Marketing, Samsung Mobile, said, “Samsung is delighted to be partnering with Google to bring Google Maps for Mobile to South Africans. It means you can literally carry your city around in your pocket, and access information at any time you like, be it about businesses, restaurants or other services, whilst you’re on the road or in an unfamiliar area.”
Also commenting on Google Maps for Mobile, Romeo Kumalo, Executive Director: Commercial of Vodacom South Africa, said, “Being able to access Google Maps for Mobile is a great step forward, not only for finding your way around and organising your day-to-day life, but also for businesses to take advantage of the opportunities to showcase themselves to mobile users in time for 2010″.
Advertising free online without the need for a website:
Google Maps is the perfect product for local businesses, from banks to retail outlets, from tour operators to hotels. Information is available to users and customers who are seeking products or services in local areas, either on their PCs or mobile phones. Using the Local Business Centre feature, companies can now enter information about their business, including their address, opening hours, phone numbers and photo for free. For more info, see www.maps.google.com/lbc
Maps API (Application Programming Interface) for Businesses:
Johan Potgieter from CyberProp Real Estate Portal reports, “Installing the Google Maps API onto our websites was quick and easy. Seeing the maps work on the sites was rewarding, but hearing our users’ comments was even more gratifying, and that is essentially what we were after. Many of our sites feature off-the-beaten-track locations, so having Google Maps on our websites makes it easier to locate a place. No matter how big or how small the website, no matter what target market you are after, and no matter whether your potential clients have a GPS or not, you can show them where your product is on earth, how on earth to get there, and overall improve your website to target more potential clients”.
Build and share your own Maps:
Create personalized, annotated, customized maps using the My Maps feature on Google Maps. My Maps can contain placemarks, lines, shapes, text, photos or videos enabling users to share diverse information with family and friends – from favourite campsites to photos and videos of a holiday or roadtrip. To construct the maps users can also employ more sophisticated methods such as maps with advanced content (mapplet) using JavaScript. Check out some My Maps created by South African artists Freshlyground and Thandiswa Mazwai, designer Desre Buirski and popular blogger Mushy Peas on Toast.
Maps for Developers:
Google also provides APIs for Google Maps to help programmers, webmasters and designers to incorporate the functionality of Google Maps on their sites and develop new services based on local information. Today Google will also be holding a workshop for developers in Johannesburg, providing hands-on advice and tips from tech experts about how to make Maps user-friendly. To learn more, check out www.code.google.com/apis/maps
Street View:
In the future, Street View images of South Africa will be available in Google Maps and Maps for Mobile, allowing users to virtually explore and navigate a neighbourhood through 360 degree panoramic street-level images. Users can look up restaurants or hotels before travelling, explore neighbourhoods and arrange meeting points.
About Google
Google’s innovative search technologies connect millions of people around the world with information every day. Founded in 1998 by Stanford Ph.D. students Larry Page and Sergey Brin, Google today is a top web property in all major global markets. Google’s targeted advertising program provides businesses of all sizes with measurable results, while enhancing the overall web experience for users. Google is headquartered in Silicon Valley with offices throughout the Americas, Europe and Asia. For more information, please visit http://www.google.com
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30 October 2009, 10:28:31
International real estate group Harcourts is opening an office in Parys with the conversion of the local Homenet estate agency to the brand.
This follows the partnership deal concluded late last year between Harcourts International and South Africa’s Homenet group, which has now been renamed Harcourts Africa and is attracting many new members in addition to the conversion of all former Homenet offices.
Harcourts has been rated one of the top international real estate brands by world real estate authority Stefan Swanepoel and is the fastest growing group in Australia and the biggest in New Zealand. It also operates in China, Fiji, Indonesia, Singapore and Zambia. It currently has more than 600 offices world-wide, employs 4000 sales consultants and sells more than $19,5bn worth of property every year
Saal de Jager, owner of Harcourts Parys, says the infusion of new energy in the local real estate market could hardly come at a better time. “Harcourts offers excellent support, training and business systems that will bring many benefits in the current difficult market cycle.
“The shake-out in the market has seen the number of SA estate agents shrink from about 80 000 to 38 000, which leads me to believe that the remaining agents have what it takes to succeed under the toughest conditions.
“All our agents have already obtained the new mandated qualifications and are ready and eager to implement the Harcourts business system, which I believe, will differentiate our offering in the local market,” he says.
He adds that demand has increased in the Parys market. “We notice greater demand among investors, who mainly target apartments and commercial property, and increased enquiries from local buyers who plan to downscale.
“Interest in weekend and holiday properties among buyers from Gauteng is also ticking up and properties on the Vaal River, especially undeveloped stands, are preferred. Large 1,5ha stands are selling at prices of between R800 000 and R1,3m, while luxury homes on the river sell at between R2,5m and R4,5m,” he says.
ISSUED BY HARCOURTS AFRICA
FOR FURTHER INFORMATION CALL
SAAL DE JAGER ON
056 817 7464 OR VISIT
www.harcourts.co.za
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30 October 2009, 10:26:41
International real estate group Harcourts has arrived in the North West province with the conversion of three former Homenet offices to the global brand.
This follows the partnership deal concluded late last year between Harcourts International and South Africa’s Homenet group, which has now been renamed Harcourts Africa and is attracting many new members in addition to the conversion of all former Homenet offices.
Pieter Britz, owner of Harcourts Potchefstroom and Harcourts GoldRidge in Carletonville, says the new brand is inspiring growing enthusiasm in the real estate market. “It lends new momentum to service delivery and client services and is set to rewrite the manual for real estate transactions in this country.
“Harcourts’ values, with its strong emphasis on people, fits us like a glove and we are looking forward to introducing our clients to the Harcourts concept,” he says.
The third Homenet office in the province to convert to the Harcourts brand is in Klerksdorp and it will trade as Harcourts Excellence.
Owner Adèl Loots agrees with Britz that the Harcourts values will benefit local property consumers. “It strikes just the right note in the current economic climate, with the motto ‘People first, doing the right thing, being courageous and fun and laughter’,” she says.
“Another great advantage is the group’s international exposure and the innovative training that agents will have access to.”
Loots and Britz add that the conversion to the new brand comes at a very opportune moment as the regional property market is showing signs of renewed activity. “Buyers are displaying greater confidence in the market thanks to lower interest rates and better access to bond finance,” they say.
Martin Schultheiss, CEO of Harcourts Africa, says the group is pulling out all the stops to rebrand all former Homenet offices by March next year. “However, we have our job cut out since more than 20 new offices have joined the group since the beginning of the year and we are still receiving a stream of new applications from independent offices as well as disillusioned members of other real estate groups.”
Harcourts is the fastest-growing real estate group in South Africa and Australia, the biggest in New Zealand, and also operates in China, Fiji, Indonesia, Singapore and Zambia. It has been rated by world real estate authority Stefan Swanepoel as one of the top five international real estate brands.
ISSUED BY HARCOURTS
FOR MORE INFORMATION CONTACT
PIETER BRITZ ON
018 294 3385 OR
ADEL LOOTS ON
018 468 7089 OR VISIT
www.harcourts.co.za
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19 October 2009, 09:57:27
Vineyard estates ceo puts an end to ingenious property scams
Conmen attempting to make a quick buck through dubious transactions in the property sector are often difficult to recognise: they tend to be well mannered and plausible, says Anton du Plessis, CEO of Vineyard Estates, “and it is always with a slight regret that one feels compelled to hand them over to the police”.
One such character recently contacted du Plessis about buying a home in Wynberg priced at over R1 million. Judging by his appearance, he was definitely not able to afford such an expensive purchase, says du Plessis, but he produced Lotto certificates and documents indicating that he had won R1,8 million. This, he said, would not be immediately paid out as it was lottery policy to counsel big winners before handing over their prizes.
Du Plessis contacted the lottery offices but was told that they were not allowed to confirm or deny any winners’ names. They did, however, confirm that on the date specified there had been a winner of R1,8 million.
The potential buyer asked if he could bring a builder to discuss renovations to the property – and the sellers, who were in financial difficulty, were delighted to learn that a cash buyer was at hand. The fact that the cash offer was accepted by the seller derailed a three week negotiation from a serious purchaser, who then purchased elsewhere.
Du Plessis, who had already had his suspicions, became even more sceptical when the buyer failed to produce the deposit on the due date and when he received telephone calls from prospective tenants from whom the ‘buyer’ was trying to take rental deposits.
Du Plessis accordingly had the conman arrested on a charge of fraud. Following interrogation by the police he admitted that the Lotto documents were fake. The case will be heard in court soon.
“Although at this stage nothing is proven it appears that the ‘buyer’ was simply trying to collect a few thousand rand in rental deposits on the ‘bought’ property, using our name and the sale documents to back up his claim that he was about to buy the house. Had we not become suspicious, he could have disappeared with three or four deposits from various tenants and may in fact have already collected several by the time of his arrest. We urge any victims to contact the Claremont police.”
For further information contact Anton du Plessis 083 234 2909 or email anton@vineyardestates.co.za
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19 October 2009, 09:55:57
Start doing your homework for the nca long before you make an offer
Those who plan to buy a home should very definitely not wait until they make their final choice before getting their documentation in order, said Lanice Steward, MD of Anne Porter Knight Frank.
“A buyer who has seen a bond originator and made sure of his position vis a vis the National Credit Act will be in a far better position to get his offer accepted quickly,” said Steward.
Matters which should be looked into, she said, are
Tax: it is essential to have your tax paid up to date because unpaid taxes will result in the transfer being held up. If you are buying in a spouse’s name, check that he or she has a tax number.
Proof of salary: to qualify for a bond, you will have to produce salary slips dating back at least three months. You will also have to produce an analysis of your full monthly expenditure.
FICA compliance: to get yourself cleared under the Financial Intelligence Credit Act, you have to produce not only all bank statements but also your ID book and evidence of residence.
Debts: bonds are always awarded quickest to those who have only limited debt. It will pay before you start house hunting to eliminate serious debts, including credit card sums. If for any reason you have been blacklisted by the credit bureaus, it is wise to get his matter dealt with.
“Often,” said Steward, “a homebuyer will have overlooked some minor payment or refuse a payment because of a dispute. This can result in his appearing on the bad debtors list, which could result in his having his bond application refused.”
“Any purchase as large as a home,” added Steward, “is likely to be stressful. In the circumstances, the more you can clarify your position early on, the better. The person with his bond position and documentation already sorted out is in a far stronger bargaining position.”
For further information contact Lanice Steward on 021 671 9120 or email lanice@anneporter.co.za
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19 October 2009, 09:55:15
Diepriver’s central chelsea area taking off as the place to live
The huge property transformation which has taken place in central Diepriver has, says Lisel Blake of Greeff Properties, been noted by those property investors who time and again get in at the start of an upward curve on the value graph – but it is still largely unknown to most Capetonians.
“It may surprise those with stereotyped ideas as to what comprises a “good” Cape address to know that Diepriver is now decidedly “in”. If you are a young, upwardly mobile professional, academic or entrepreneur, this is the place to establish a home,” said Blake, “and,” she added, “with so many young vibrant couples there is a friendly community spirit here that is simply not possible in suburbs with large properties and empty streets.”
Greeff Properties’ latest offering in this area is a cottage-type home with warm wood finishes and a great entertainment flow. As often happens at Diepriver, the interior spaces are larger than visitors initially expect. They comprise three bedrooms, a study nook, a living room (with a fireplace), a dining room (also with a fireplace), and a spacious family room with large sliding glass doors leading to one of three interlinked small gardens – and this one has a pool.
Liz Robertson, also on the Greeff Diepriver team, said that this home encapsulates all that Diepriver’s Chelsea precinct can offer.
“Right now,” she said, “there can be few buys with better prospects anywhere in the Cape Peninsula. Once people have experienced central Diepriver, they are hooked.”
For further information contact Lisel Blake on 083 267 4335 or Liz Robertson on 082 895 3417
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19 October 2009, 09:54:09
Upper Claremont home offers chic, modern look – and 180˘Ş views
Those Capetonians who think that there is no better mountain vista than Table Mountain’s Southern Spine, from Devil’s Peak to Constantia Nek – the view open to many lucky Bishopscourt and Upper Claremont residents – will find Greeff Properties’ latest offering, a low-profile, light and bright five bedroom home in Upper Claremont, very appealing.
“This home,” says Simon Raab, Sales Manager at Greeff Properties, “epitomises what upcountry people think of as a sophisticated Southern Suburbs lifestyle. It has wide, open plan internal living areas, long patios, extensive glazing, solid timber floors and a restrained but chic minimalist elegance.”
The home has a separate flat with its own entrance and an external Jacuzzi that takes the place of a pool.
The rear section has on site parking for no less than five cars and a triple garage. The security arrangements are sophisticated and effective.
Teaming up with Raab for this project is Carol Bracken. Their cell numbers are 082 325 8801 and 083 225 6813
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19 October 2009, 09:50:01
Franchising in all spheres, but especially property, can make up for a lack of education experience and finance, says rawson properties chairman
It is, said Bill Rawson, Chairman of Rawson Properties, ironical that at a time when the banks are probably employing more financial consultants than ever before, allocating one to every client with a turnover that exceeds a certain level, it is difficult for the young entrepreneur with good ideas to find either a loan or a mentor who will guide him through the initial years of his business.
When he first set up on his own some 35 years ago, said Rawson, bank managers, who almost always had considerable business experience in a wide spectrum of activities, were on hand to guide and advise the young businessman - and were empowered to lend him money on their assessment of his prospects.
"I owe a huge debt to such bank managers," said Rawson. "Without them we would have struggled to get started and our growth would certainly have been a lot slower."
Today, said Rawson, the entrepreneur will often find himself up against a brick wall - unless, which is unlikely, he can produce rock solid guarantees for every cent that he borrows.
This, said Rawson, is especially the case with young blacks.
"They frequently have the dual disadvantage not only of having had minimal real exposure to business but also of an education which has almost always been inferior to that of the more privileged whites. Some still 'make it' despite these handicaps, but in my experience they have had to be quite exceptional people."
In the circumstances, said Rawson, business has to take on the role of financiers and educators/guides that the banks at one stage played - and, he added, one of the best ways of doing this is through franchising.
"A good franchise system - and it has to be admitted that many are not good - will always supply initial and ongoing training and advice. In addition, the franchisor will monitor the franchisee's performance week-by-week and steer him clear of pitfalls. Furthermore, in some cases, the franchisor will secure for his franchisee some or all of the finance he needs. It is not surprising, therefore, that franchising is catching on so fast, particularly in the property sector."
Franchising, said Rawson, is especially popular among those wanting to enter residential property marketing because this has, for some, a panache and appeal that the more basic forms of retailing and engineering services lack and in the right hands real estate marketing can produce significant returns.
Rawson said that to date the property sector, although on the whole committed to transformation, has had limited success in handing over responsibility to previously disadvantaged managers. Those in the lower end 'Black' market, he said, have had limited successes but in the 'Brown' market (at least at Rawson Properties) franchising has proved very worthwhile.
"This situation, I am confident, will change and it will be franchising that makes the difference because it will in the long run pay the franchisor to be involved with inexperienced and untrained black franchisees. The process has not been as fast as we could have wished, but it still has the potential to be speeded up and to upgrade struggling ill-informed operators into sophisticated marketers."
Rawson added that in the current still difficult property scene, Rawson Developers and Home Builders were finding that they, too, could provide useful advice and resources to less experienced developers and this, he said, is likely to result in three or four new joint venture developments in the year to come.
"We have been surprised at how readily certain developers with less experience in the field than we have been prepared to tie in with us and make use of all the advice and expertise that we can give them," he said.
For further information contact Bill Rawson on 021 658 7100 or email bill@rawsonproperties.com
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09 October 2009, 08:08:24
The international Harcourts real estate group is now represented in Kimberley, following the conversion of leading local agency Homenet Kimberley to the powerful new brand.
And agency principal Marina Smith, who is well-known in the diamond city’s real estate market and heads up a dynamic team of seven agents, expects the conversion to attract quite a lot of attention.
“Kimberley is a relatively small place and any changes to its business make-up are picked up quickly. Such a significant shift from one brand to another will definitely not go unnoticed and that will of course mean good publicity.”
But even more important, she says, is what the changeover will mean to the city’s real estate consumers. “With 600 offices internationally, Harcourts has the experience and know-how to equip its people with the training, systems and technology that makes it possible to deliver stellar service at a completely different level than SA consumers have previously experienced.”
The transition to the Harcourts name follows last year’s partnership deal between Harcourts International and South Africa’s Homenet group, which has now been renamed Harcourts Africa and is in the process of re-branding all its offices around the country.
Harcourts Africa CEO Martin Schultheiss says the group represents the ‘next generation’ of estate agency practice and is creating huge excitement in the SA real estate industry. “We see this in the volume of enquiries we are getting from both independent agencies and disillusioned members of other real estate groups, and in the fact that we have added 18 brand new offices to the group since the start of the year – making us by far the fastest-growing group in the country at the moment.
“We have also now rebranded more than 40 of the old Homenet offices that formed the basis of the group, and are on track to have the whole rebrand exercise completed by March 2010.”
Harcourts is also the fastest-growing real estate group in Australia and the biggest in New Zealand. It also operates in China, Fiji, Indonesia, Singapore and Zambia and has been rated by world real estate authority Stefan Swanepoel as one of the top five international real estate brands.
The global group’s 600 offices employ 4000 sales consultants who sell more than $19,5bn worth of property every year.
ISSUED BY HARCOURTS AFRICA
FOR MORE INFORMATION
CONTACT MARTIN SCHULTHEISS
ON 031-201-1060 OR VISIT
www.harcourts.co.za
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09 October 2009, 08:07:38
Renowned international property group Harcourts is making waves in East London with the conversion of four leading local estate agencies to the brand.
The four former Homenet agencies changed over to the Harcourts brand recently following a partnership deal between the two groups that has seen a new giant, Harcourts Africa, emerge in the SA real estate market.
Phil Rawstron, who has renamed his agency Harcourts Advantage, says the switch has unified the old Homenet group under an established and reputable international banner.
“A great advantage is that we are moving forward in difficult economic times, a fact that is not lost on our clients. It is also the ideal opportunity to bring my top agents in as partners to form a solid and reputable association that will boost our offering to our clients.”
Lance Gouws of Harcourts Cornerstone adds that the professional image and approach of the Harcourts group will add value. “I strongly identify with the Harcourts values of putting people first, doing the right thing, being courageous and having fun and laughter. That is precisely the way I think real estate companies should operate.”
Kim Wood of Harcourts on the Bay says Harcourts is bringing new vigour to the local property market. “It is a dynamic brand fuelled by a new energy and successfully driven by the Harcourts Africa CEO, Martin Schultheiss.”
Annie and Ronnie Coetzee of Harcourts Mercantile, the fourth agency to convert, note that Harcourts has proven systems that are re-invigorating the local real estate industry.
Harcourts has been rated as one of the top five international real estate brands by world real estate authority Stefan Swanepoel. It is the fastest growing group in Australia and the biggest in New Zealand and also operates in China, Fiji, Indonesia, Singapore and Zambia. It currently has more than 600 offices employing 4 000 sales consultants and sells more than $19,5bn worth of property every year.
ISSUED BY HARCOURTS AFRICA
FOR FURTHER INFORMATION CALL
MARTIN SCHULTHEISS ON
031 201 1060 OR VISIT
www.harcourts.co.za
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29 September 2009, 12:15:53
Pretoria estate agent Ewa Schutt has been named by the Aida group as its top agent for the year – and received a string of other accolades at the group’s recent awards ceremony.
Schutt’s other awards include national top non-residential agent, and she was placed first in the categories national top agent for commission earned as well as commission earned in a metropolitan area.
Several other agents at the Pretoria office also walked away with awards, helping the agency to scoop up the national top agency award.
Sarette Genis and Betsie Summerfield took national top spot for a team working in a metro area, with colleagues Vernon and Dianne Geere in second place.
Maggie Smith was named as the group’s top rookie agent in a metro area and placed second nationally for commission earned by a rookie. Anza Visser was placed in the top three for units sold by a rookie agent in a metro area.
And Zenta Botes and Hannes van Niekerk were among the top four for units sold in a metropolitan area.
The awards were presented by Aida National Franchises’ CEO, Young Carr, who said Aida agents performed exceptionally well during a most difficult period in the real estate industry.
Issued by Aida National Franchises
Aida head office: 012 682 9600
Contact: Young Carr
Aida Pretoria: 012 348 3720
Contact: Piet Joubert
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Pretoria estate agent Ewa Schutt has been named by the Aida group as its top agent for the year, and the Aida Pretoria office owned by Neels Pretorius and Johan van der Westhuizen took national honours as the top perfoming office at the group’s recent awards ceremony.
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28 September 2009, 08:24:03
Teamwork garnered high accolades for two pairs of Aida agents in the Western Cape at the recent Aida National Franchises annual awards ceremony.
Hendrien Louw and Johan Truter of the Aida West Coast office scooped the award for the top team overall for agents working in coastal and rural areas, while Sandy and Andrew Swart of the Milnerton office took the top spot for teams working in an urban area.
They were among many Aida agents honoured for their commitment and top performance during the past year. The awards were presented by Aida National Franchises’ CEO, Young Carr, who said they had performed exceptionally well during a most difficult period in the real estate industry.
Issued by Aida National Franchises
Aida head office: 012 682 9600
Contact: Young Carr
Aida West Coast: 022 7721395
Contact: Johan Truter
Aida Milnerton: 021 551 5025
Contact: Ricci Johannessen
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Hendrien Louw and Johan Truter of the Aida West Coast office with Aida CEO Young Carr. They claimed the national award for the top team working in a coastal or rural area.
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Sandy and Andrew Swart of the Aida Milnerton office with Aida CEO Young Carr. They claimed the national award for the top team working in an urban area.
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28 September 2009, 08:22:49
International property marketing group CENTURY 21, the worlds largest, celebrates its second anniversary in South Africa with the news that it has weathered the economic downturn well and is now gearing for the market’s upturn.
MD Colleen Gray says the strategy going forward is multi-faceted. “We already cover the whole spectrum of the market from luxury homes to the affordable. The plan now is to further strengthen our presence at the lower end of the market where growth is expected to be strong going forward based on housing backlogs and the banks’ willingness to provide finance.
“Consolidating and growing our franchise base is also key. In terms of our national footprint we have actually expanded during the worst of the property market recession, as opposed to the attrition that has been reported throughout the industry and reduced the number of agents by more than half.”
This attrition, coupled with the new demands on estate agents in terms of continued professional education, means the numbers of estate agents are not likely to swell disproportionately again, she says, and the survivors will arguably be the hard core of professionals, which is good for consumers.
“We now have an established track record which is reflected in consumer and franchisee confidence in the brand and we have positioned ourselves strategically in markets such as lifestyle estates that are beginning to show signs of a recovery.
“Moreover our international referrals network, derived from over 8500 offices in 69 countries, has proved invaluable in generating buyers from as far afield as Russia, America and Belgium. In South Africa itself we are looking to increase the number of our offices significantly over the next 18 months as the market strengthens.
“And recognising that the market is not ideal for ‘start-ups’ right now, we are focussing on existing independents. On that basis our affordable franchise offering is totally relevant and we are specifically targeting previously disadvantaged South Africans as potential franchisees with a particularly attractive package.”
Meanwhile, Gray says, CENTURY 21 has detected a distinct pick up in the market as a result of recent rates cuts. Although the easier lending promised by the banks has yet to filter through, show day turnouts have increased, volumes are up and prices have stabilised. There is definitely the sniff of a recovery in the air.”
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CENTURY 21 SOUTH AFRICA
FOR MORE INFORMATION
CONTACT LINDIE BOW ON
011-884-2202 OR VISIT
www.century21.co.za
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25 September 2009, 08:27:30
71 loop street offers chic urban living
Greeff Properties now have three penthouses on the market at 71 Loop Street, in the centre of Cape Town.
The ten storey building, dating back to the 1950s, has been given a complete makeover with office floors on seven levels, limited retail space on the ground floor and six luxury apartments on the ninth and tenth floors.
Heather Cape, Greeff Properties Developments Manager, said that the units are decidedly upmarket with prices set from R2,65 million to R3,45 million and floor sizes that range from 126m² to 160m².
“The finishes,” she said, “are ‘European’, chic, sophisticated, modern and minimalist. The flush glazed large glass doors tilt outwards for ventilation and all façade glazing is double, so as to minimise air-conditioning costs and almost totally eliminate exterior sound. Floors are of solid timber (not laminated) and there are generous allowances for cupboards in the kitchens and bedrooms, with the buyer having a wide range of choices. The bathrooms have timber countertops and beautiful porcelain sanitary ware.”
The interiors, said Cape, are also notably European in that they are spacious, open plan and most of the rooms and decks enjoy panoramic views that take in the Table Mountain and Table Bay.
Parking is provided in an adjacent building. The foyer is manned round the clock by a concierge.
Mike Greeff, CEO of Greeff Properties, said that these units are among the best available in the CBD – “They are,” he said, “more sophisticated and, in my view, more attractive than most of the CBD units spawned by the CBD boom of the last eight years.”
For further information contact Heather Cape on 021 763 4120 or email hmcape@greeff.co.za
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25 September 2009, 08:26:10
28 plot and plan units being launched at hemel en aarde, hermanus
“Hemel en Aarde Hoff”, a new group housing development within the Hemel en Aarde Estate, a well known and sought-after security lifestyle residential development sited 3km from the centre of Hermanus, is now being launched.
“The launch of this development, I believe, is ideally timed due to the upswing in the property market in Hermanus that is now being experienced. It offers buyers an opportunity that up until now has not been available in this popular estate. Carefully designed properties based on all the previous experiences of other builders, developers and homeowners at this estate will be developed on a piece of land in a prime position close to the clubhouse,” said Wayne Albutt of Rawson Properties, who specialises in properties in this area.
“The first six homes are now being built and when completed will showcase the ambience of Hemel en Aarde Hoff. Buyers can view these properties and see firsthand the careful design approach and insight of Reg Whittaker, the architect, as well as be reassured of the quality of build workmanship and finishes.”
All of the new homes will be made available as plot-and-plan opportunities giving the buyer the freedom to select their own finishes based on personal taste. Minor design changes can be negotiated and considered to cater for individual needs.
“Special care and attention has been given to sticking to the estate’s architectural guidelines, while providing for Hemel en Aarde Hoff to have its own character within the greater estate,” said Albutt.
Large common areas and well positioned dwellings will ensure that privacy, indoor/outdoor liveability and views are maximised.
“Hemel en Aarde Estate has proven to be very popular among retirees, young and old Hermanus residents and as holiday homes to both foreigners and from the Western Cape. The facilities include a clubhouse, swimming pools, a fully equipped gymnasium, squash and tennis courts and steam and sauna rooms.
“Hemel en Aarde Estate Hoff will be even more popular,” added Albutt.
Contact Wayne Albutt on 082 909 2963 or Rawson Properties Hermanus on 028 3131870 for further information.
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18 September 2009, 07:50:14
 Polokwane estate agent Jerry Kganyago has been named as the Aida group’s top agent nationally for the number of units sold during the past year.
Kganyago has also scooped the award for the top selling agent of units in a metro office and was placed among the top four metro agents for commission earned.
His sterling performance helped push his office into the limelight at the recent Aida national awards ceremony – the Polokwane franchise made in into the top three for units sold during the year and was placed second nationally for commission earned. The office also took third spot in the category top national office overall.
The awards were presented by Aida National Franchises’ CEO, Young Carr, who said Aida agents had performed exceptionally well during a most difficult period in the real estate industry.
Issued by Aida National Franchises
Aida head office: 012 862 9600
Contact: Young Carr
Aida Polokwane: 015 295 3134
Contact: Jerry Kganyago
Polokwane agent Jerry Kganyago, who was recently named as Aida’s top agent nationally for the number of units sold in the past 12 months.
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18 September 2009, 07:49:26
Clear evidence of a sustained upswing at Greeff properties
Talk of green shoots, a recovery, a return to normality, an end to price deflation, and even a positive upswing has been bandied about by the PR agencies serving SA’s major real estate agency groups to the point where scepticism and even downright denial have become almost as prevalent as the more positive market hype.
In the circumstances those attending the latest client update session at Greeff Properties found it something of a relief to hear a measured, restrained analysis from Greeff’s MD Graham Leslie, - and the good news is it that it was good news.
Leslie said that since March Greeff Properties’ sales turnover had increased month by month (with the exception of May) and that since June the pickup had been “almost spectacular”.
The actual year to year figures read as follows: March up 38%, April up 4% , May down 27%, June up 91%, July up 25% and August was a staggering 232% up in the Southern Suburbs alone.
“In August,” said Leslie, “we actually notched up R84 million worth of sales, a monthly figure we last saw at the height of the 2006/7 boom.”
Mike Greeff, CEO of the group, added that what was particularly impressive was that, even after knocking two large sales off the list, the growth in August was still up substantially on August 2008.
“I am not saying we are out of the doldrums yet,” said Greeff, “but it does appear that an upward trend is now evident – and talking to the leaders of some of the other larger brand names, it would seem that they are experiencing much the same sort of trend.”
Greeff added that the figures refers only to Cape Town’s Southern Suburbs – they do not take into account any of the sales achieved by the new branches licensed by Greeff to Marion Taylor’s operations in Camps Bay, Hout Bay and the City Bowl.
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18 September 2009, 07:45:27
 Aida Rustenburg has walked away with the national award for the estate agency group’s top rental agency in the past 12 months.
This is the first year that Aida has made an award in this category in its national award presentations, and group CEO Young Carr says it decided to do so because, with the property market under pressure, rentals countrywide have grown in leaps and bounds.
“We felt it was time that offices and agents who are active in this sector of the property market receive the same recognition as their peers in other sectors.
“It was thus a great pleasure to award the top spot to Rustenburg, which had the added honour of scooping the award for our top rental agent, Michelle Easton.”
Issued by Aida National Franchises
Aida head office: 012 682 9600
Contact: Young Carr
Aida Rustenburg: 014 592 1501
Contact: Chris Pieterse
Aida Rustenburg principal Chris Pieterse displays the national Aida award for top rental agency which his office won recently
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17 September 2009, 10:29:17
Hi there Keith
Thank you for your comments. With regards to your question "I am looking for a sandbag supplier,as I aintend building my own sandbag streucture. Can you be of assistance in this regard?" The best people to contact regarding this subject are the architects who were involved and responsible for the Sandbag Houses in Cape Town and they are MMA Architects.
Here is their website address: http://www.mmaarch.co.za/home.asp
Hope this helps you!
Kind Regards
The CyberProp Team
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17 September 2009, 07:52:51
The international Harcourts real estate group now has two offices open on the West Rand, thanks to the rebranding of leading local agencies Homenet Jon Rosenberg and Homenet Rhino.
This follows last year’s partnership deal between Harcourts International and South Africa’s Homenet group, which has now been renamed Harcourts Africa and is in the process of re-branding all its offices around the country.
The newly-named Harcourts Rhino is continuing to serve homebuyers and sellers in Roodepoort and Krugersdorp, where it has operated for the past 19 years. Principals Louis Barbosa and Mauro Mosca are however excited about the transition to Harcourts which, they say, will place their real estate group in a much better position than other SA groups in that it won’t have to play “catch-up” after the recession.
“Harcourts Africa is effectively being boosted to a whole new level through the international group’s branding, marketing, training and IT systems. These tools will give us a huge head start in the struggle that local real estate companies will soon be facing if they want to compete in an increasingly multinational business that has been made even tougher by the credit crunch.”
Jon Rosenberg expresses similar sentiments, saying that Harcourts has brought much needed energy to the old Homenet group and noting that many other real estate agencies are joining Harcourts Africa as it offers an exceptional value proposition geared towards bettering agents in all spheres of industry practice.
Rosenberg, who has 27 years of industry experience, employs 12 agents and says his office, now named Harcourts Jon Rosenberg, serves homebuyers and sellers in all the areas from Auckland Park to Ruimsig.
Harcourts is the fastest growing real estate group in Australia and the biggest in New Zealand. It also operates in China, Fiji, Indonesia, Singapore and Zambia and has been rated by world real estate authority Stefan Swanepoel as one of the top five international real estate brands.
The global group currently has more than 600 offices employing 4000 sales consultants, and sells more than $19,5bn worth of property every year.
ISSUED BY HARCOURTS AFRICA
FOR MORE INFORMATION
CONTACT MARTIN SCHULTHEISS
ON 031-201-1060 OR VISIT
www.harcourts.co.za
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17 September 2009, 07:44:38
Consumers buying property through Aida agents can now look forward to improved bond origination services.
This follows a partnership deal earlier this year between Aida’s holding company Jigsaw and Sanlam, to form Sanlam Home Solutions (SHS) and help consumers gain entry into an increasingly tough property market.
SHS has now brought the PA Group on board in a deal in terms of which SHS sales and administrative staff will be transferred to PA’s mortgage originator BetterBond.
Young Carr, CEO of Aida National Franchises, says the deal represents a great leap forward in the services that Aida clients can expect. “The partnership with BetterBond means that the number of bond consultants increases from 22 to 162, which will streamline service to Aida clients through greater capacity.
“A service level agreement has been concluded with BetterBond and the process will be managed by a dedicated sales team, which means homebuyers can look forward to professional origination services supported by the extensive BetterBond infrastructure and experience.
“We believe this step will greatly benefit our clients in a market where it has become crucial to find bond finance on the best possible terms and in the shortest possible time,” he says.
Aida clients also have access to Sanlam’s wide range of products in terms of the Sanlam agreement. “Clients have streamlined access to insurance products, including householder and homeowner policies, which further enhances Aida’s one-stop service for property consumers,” Carr says.
Issued by Aida National Franchises
Aida head office: 012 682 9600
Contact: Young Carr
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11 September 2009, 15:15:32
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FROM THE EDITOR |
Royalty in trouble? Prince Charles found himself in trouble with many British architects as he promotes classical designs over modern “carbuncles”. His hostility to modern architecture but his longstanding design crusade is now drawing accusations of abuse of power. "It is unfortunate if anybody uses their position in public life to exert undue influence on a democratic process such as planning," Ruth Reed told the BBC on Tuesday, the day after becoming the Royal Institute of British Architects RIBA's first female president.
I cannot help to wonder what would happen if President Zuma would speak about architecture designs. Would he be able to charm the architects as he has charmed his wife and nation?
Headlines: Good news for South Africans; the August oobarometer price index recorded an increase in year-on-year house prices of 6.9 percent; Property Slump over
Market update: Although the Reserve Bank’s new mortgage loan numbers remain weak, the mildly diminished rates of year-on-year decline in the value of new mortgage lending indicate a household sector that has begun to respond positively to sharp interest rate cuts. This is good news because almost all the banks have now announced a relaxation in mortgage lending, which bodes well for the property sectorHow a consortium of Malaysian developers is taking the destination to the buyer; New Home Loans show effects of interest rate cuts
Marketing focus: Property websites receive record number of visits. You can nominate our property portal CyberProp.com for the 2009 E-Commerce awards as your favorite property portal. Nominate Us Now
To follow up on their Google mapping Google announced that they are expecting to introduce their Street View option very soon in South Africa. They will be collecting images through Street View cars that are fitted with cameras that records the images as the cars are driving. These images are then put together to give you a “street view” of a specific location. According to Google it has benefits for house hunters. Send your view to news@cyberprop.com
Enjoy!
The editor
CLICK HERE FOR MORE
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CyberProp Property Count: 11/09/2009 |
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Properties for Sale: 134,533
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11 September 2009, 09:21:47
Top agents still achieving high sales because they know their markets
The recession in the property industry has severely affected sales and led to some 60 000 agents leaving the industry.
Has this meant that even top agents are selling far less – no, apparently that is not the case.
Anton du Plessis, CEO of Vineyard Estates, says that some top agents have continued to achieve a very high level of sales despite the downturn. (He himself has recently sold five homes in five weeks – at an average price of R3,9 million).
What is it that sets the top ten to fifteen percent of agents apart from the less successful?
Du Plessis says that, after 22 years in property marketing, he has come to believe that two attributes of really good agents stand out every time.
The first is in-depth knowledge of their area and how homes in it are reacting to current circumstances.
“The client has to be confident that the agent really knows the market and can substantiate the reasons for his estimate of the home’s valuation. He must show that he knows the sales history of most similar homes in the area.”
The second factor, said du Plessis, is the ability to “match up” the home with the buyer.
“The agent must learn quickly to understand what his buyers – and their families – are really “about” – what sort of people they are. He will then show them the houses that genuinely suit them. There are few things clients find more frustrating than having to view a series of unsuitable homes purely because they are on the agent’s list.”
“Matching up buyers with homes,” said du Plessis, “calls for a well-trained, perceptiveness in listening.
“It has to be accepted that clients are often inarticulate or devious in the way they present their needs. Some will pose as poor when they are fairly rich. Others will pretend to be richer than they are. Many, while insisting that their homes should have this or that feature or characteristic will change their minds when shown something else attractive. We recently sold a charming house with a tiny garden to a couple who had been adamant that they wanted a big garden – certain other features of the house more than compensated for its lack of greenery.”
Good agents, added du Plessis, have learned to react quickly to every opportunity. They make appointments as soon as possible and they strive to get offers finalised fast. They do not waste time with buyers or sellers who are not serious.
“It is,” he said, “quite possible to end up bring a tour guide for bored people who would like to see what is on the market but have no real intention of moving home for a few more years.”
Even in today’s market, said du Plessis, top agents will find one buyer in every eight or nine that they actually take to a home.
Less competent agents will take on 20 to 30 buyers – and still end up with no sales.
“This fact,” he added, “is particularly relevant when it comes to selling your home because it can be disastrous to have a home on the market for weeks or months without its finding a buyer. Check what your agent’s sales record is – and do not accept that because the company is big their agents are necessarily the best: there are good and bad agents in most organisations.”
For further information contact Anton du Plessis 083 234 2909 or email anton@vineyardestates.co.za
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10 September 2009, 09:21:10
Tony Clarke, MD of Rawson Properties, has drawn attention to what are known as the “Rescue Provisions” in the New Companies Act no 71 of 2008.
Quoting the legal commentator, Charles Smith, Clarke said that the Act will severely restrict landlords’ rights where the tenant is a company or c.c. in financial difficulties.
“Under the new rules,” said Clarke, “any tenant company which is experiencing cash flow and other problems can now apply for a court order which results in their being voluntarily placed under court supervision, the court being given the power to institute “rescue proceedings”.
So far, so good – but, Clarke points out, while these proceedings are being put into effect, a moratorium is placed on all legal action against the company, making it impossible for the landlord to sue for unpaid debt or evict a tenant until the company either recovers its financial stability or is placed in liquidation.
“Rescue exercises could take several months,” said Clarke. “Is a landlord paying a bond on a property expected to wait out this whole period? Will the court make provision for ongoing rent payments in the interim? If not, the whole arrangement seems to be weighted in favour of the tenant without any consideration given to the fact that the landlord may also be financially stressed in times like the present.”
“Charles Smith,” added Clarke, “indicates that there could be alternative ways of securing a landlord’s rights in this situation but it is difficult to see what they could be: a company protected by the court would be exempt for a time from most debt payments.”
For further information contact Tony Clarke on 021 658 7100 or email tony@rawsonproperties.com
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09 September 2009, 09:18:50
New on the market. Expansive badgemore, constantia home ideal for large, active family – and entertaining.
Rawson Properties’ Constantia franchise has secured a mandate for a Constantia home on an erf just under an acre in the Nova Constantia area, close to the Constantia Uitsig vineyards that, without being “over the top” has some of the best features he has ever seen in a home at this price level, says Rawson franchisee, Eugene Pienaar.
These include immaculate slatted timber ceilings, large sash windows and complementing textures like terracotta tiles, screed and wooden flooring.
The L-shaped Cape Vernacular style home, with two gables, is low a profile but extends over a large footprint to give over 600m² floor space. The home is complemented by a large flatlet. The garden has extensive lawns, ideal for lawn tennis or croquet and a well cultivated boutique Merlot Vineyard. There are also some attractive cricket nets and a modern swimming pool.
The home has four bedrooms, two en-suite and both formal and informal living areas as well as a study and a large office with its own waiting area.
“What makes this home so special,” said Pienaar, “is that it has a separate entertainment wing with a billiards room, bar with a wine cellar, barbeque area and lounge (with a fireplace), all leading onto a large veranda, again, with a slatted timber ceiling. This is a perfect summer al fresco entertainment area.”
Most of the rooms in the home look out onto the mountain and these views are open year round – the property, therefore, has a tranquil atmosphere, said Pienaar, but is well protected by state-of-the-art security systems.
The listed price for this once in a lifetime home is R8,9 million.
For further information contact Greg Kruyer on 083 445 2444 or Sandy Dicey on 083 786 4803
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08 September 2009, 16:51:18
Quoting TEBOGO PHAKOAGO "I Want To Sell a Property In Witbank and Staderton through Quick Sell a Property In Standerton and In Witbank"
For any more information regarding Quick Sell Properties please contact Aida National Franchise, as they issued tyhis particular article:
Aida head office: 012 682 9600
Contact: Young Carr
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Cyberprop
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08 September 2009, 16:37:56
Quoting TEBOGO PHAKOAGO "If you look at property in the Western Cape and the rest of the country; Western Cape might get a little overrated the last few years. Prices are going up immensely. Do you think 2010 will have an even higher impact on this?"
Yes we do think that 2010 will increase the prices of properties.
Kind Regards
Cyberprop
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08 September 2009, 09:17:21
Rawson Properties’ Hermanus franchise is marketing this contemporary four bedroom home, located in the upmarket mountainside suburb of Chanteclaire just 5km from the town centre of Hermanus, at a price of R5,95 million.
The home offers panoramic sea and mountain views and a large, irrigated garden. The home has a wireless alarm system and an automated gate.
There is a double-vaulted formal lounge with fireplace that leads onto an undercover braai patio and a swimming pool. There is also a study and a games room. The dining room and kitchen are open-plan with a separate laundry and scullery area with adequate space for all major appliances.
The main bedroom has a dressing room and en suite bathroom with underfloor heating and heated towel rails. It opens onto a spacious sea-facing patio with a Jacuzzi. There are a further three spacious bedrooms and bathrooms.
There is a double automated garage and off-street parking for at least two cars.
For further information contact Ronnie Young on 082 461 4845 or 028 313 1870
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04 September 2009, 15:11:00
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FROM THE EDITOR |
According to International Living magazine South Africa and the United Kingdom are two places not to retire primarily because of high real estate prices. South Africa didn’t do well in any of the categories. Wrong according to me. South Africa offers numerous reasons why it should be first choice, fantastic climate, rich in culture, high standard of living and many more. The Best Place in the World to Retire, Says International Living
It seems that the property market overall has certainly recovered well from the lows that was experienced in 2008 and parts of 2009 and that the worst is over. I’m sure that with us heading into Spring and nearing the end of 2009 we could see even more healthier activities. Looking at the latest Absa House Price Indices it is clear that the year-on-year house price deflation in the small houses, medium-sized houses and large houses segments are for sure slowing down. As for the FNB, "The FNB House Price Index's year-on-year decline continued in August, but for the second successive month we saw a diminishing price deflation rate, with the index starting to show clearer signs that the market is starting to stabilise" said John Loos, property strategist at FNB.
For those of you that is not sure in which segment your property falls;
- Small houses – (80m²-140m²),
- Medium-sized houses (141m²-220m²)
- Large houses (221m²-400m
It is not only house prices that are starting to show signs of recovery but the approach of the banks has also improved. In the affordable housing market Standard Bank is now granting 100% bonds where Absa and FNB is willing to grant bonds for those earning under R 15 000 and R 11 000. With property price starting to stabilise and the banks offering a more open hand to lending South Africa is looking forward to 2010.
If you’re thinking that maybe you should wait before you take action think twice and start doing your homework as property still stays one of the best investments that you can get involved in.
Enjoy!
The editor
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CyberProp Property Count: 04/09/2009 |
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03 September 2009, 08:15:10
MASSIVE SAVING on office rentals- Phenyo House is the place for PROFESSIONALS to be, with A-GRADE Offices at c-grade prices!!
Braamfontein’s revival is continuing at frenzy- hot off the heels of the Kopano House redevelopment (corner Melle and Smit Street, Braamfontein) Rejuvenate Properties is set to kick off another exciting project with the R10 million redevelopment of the old SAMRO House building , now known as Phenyo House.
Phenyo House has over 5,500m2 of lettable space. “We are looking for professionals such as accountants and lawyers as well as A-grade type tenants to occupy the building. Rentals start at an unbeatable R50 /m2 and we are offering up to 4 months rent free period over and above a generous tenant installation allowance. At these rentals tenants can enjoy high quality standards as well as make savings of up to 60% on their current rentals” comments co-developer Nicholas Katsapas.
Phenyo House (meaning ‘Victory’) is situated in a prime position on the corner of Juta and De Beer Street, Braamfontein within the same redeveloped precinct that Rejuvenate Properties other buildings are located. The building is situated within 5 blocks of the Gautrain and Park Station and the M1 highway on/off ramp is 700 meters away. A BRT station (the new bus system which links up to the Gautrain) will be built next door the building. This will ensure that all employees are able to commute hassle free. The building also has ample parking.
Justin Blend of Rejuvenate Properties explains that “the building’s upgrade will generate a very modern atmosphere- we will only use the best materials, such as porcelain tiles, granite counters and beautiful wall papers. The ground floor is well suited to hosting conferences as well as small and large meetings, as there is a huge demand for these facilities we are currently looking for a conference operator to rent this space. Tenants will also have the benefit of being able to make use of this space”.
The redevelopment of Phenyo House offers tenants the same outstanding standards as new offices such as air-conditioning, modern lobbies and lifts but with much lower rentals, resulting in quality space with a competitive advantage, helping business to fight the recession.
Blend adds “Phenyo House falls perfectly in line with our vision to redevelop as many buildings as possible in the newly revived Braamfontein, from C-grade to A-grade office space and offer extremely low rentals”.
For all enquires contact- Justin Blend 082 4611 445
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02 September 2009, 08:08:27
Bardale village moves onto phase two
Phase two of the eight phase Bardale Village, a security lifestyle village in Kuilsriver is about to be launched. This will consist of 423 residential homes of similar size and design to the 538 built so far – of which nine still remain to be sold.
As before, the homes will be in a Cape Dutch style with flat roofs, parapet walls and attractive curved gables complemented by pale ochre façades.
The price levels will be only slightly higher than the very competitive levels that have been in operation since the end 2007.
The units available range from R383 990 for a two bedroom unit (58m²) to R524 990 for a four bedroom unit (112m²).
Those who bought at the launch in 2004 have already seen a capital appreciation of 40% in the value of their homes.
Michael Bauer, the managing director of the estate agents IHPC (Pty) Ltd, who are controlling the development, said that Bardale Village is the most ambitious private enterprise affordable housing project currently on the go in Cape Town. It will, he said, consist ultimately of 3 500 homes covering a 90ha site and the marketing and construction programmes could continue right through to 2020, although a big sales pickup is expected from the middle of next year onwards.
“From the start,” said Bauer, “we have made it our aim to create value and standards that would not normally be found in this price range. We install solid wood countertops in the kitchens, built in cupboards in the bedrooms, carpeting with felt underlays in the bedrooms, baths and showers in the bathrooms, and in the larger units we have en suite bedrooms. We also lay roll-on lawns in the gardens. Nothing quite as good as this has been seen previously at these prices at the Western Cape.”
Each phase of the village, said Bauer, is encircled by its own electrified fencing and has CCTV cameras at critical points. Each phase, too, will have its own Homeowners’ Association responsible, among other things, for security and every house will also have its own burglar alarm. All communal areas are landscaped and some 2 000 trees will eventually be planted across the 90ha estate.
The communal facilities, said Bauer, will also be the most comprehensive yet seen in a Cape “affordable” project: they will include two shopping centres,, commercial and medical centres, as well as two primary and two high schools. The developer has been in talks with the Department of Education and they are hopeful that they will be given the go ahead on a public private partnership proposal aimed at greatly speed up the construction of the schools.
Bauer said that the satisfactory take-up by buyers despite the recession of the last 18 months has been due to having well trained property consultants on site as well as an on site ooba bond origination office.
“Our success rate with ooba is way above average,” he said, “partly because the banks are at last beginning to ease up on their lending criteria and, more importantly, because we are very thorough in assessing the chances of an application before we pass it on to ooba.”
The homes are also, said Bauer, attractive to investors who at the moment can get rents of R3 200 per month for a two bedroom unit and R4 200 for a four bedroom unit. This equates to gross returns, before levy deductions of 10 to 12% per month, a very unusual situation in South Africa today.
The estate is, in fact, ideally placed for commuters travelling to Bellville, Durbanville, Century City, Stellenbosch, Somerset West and the Cape Town CBD. It offers easy access to the major highways N1 and N2.
Taxi ranks and bus stops for transport travelling in all directions are close at hand and are easily accessed from Bardale Village.
For further information contact Michael Bauer on 083 255 4442 or the site sales office on 021 9090 301 or visit www.bardalevillage.co.za
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01 September 2009, 08:10:41
In line with its plan to continually set new benchmarks for estate agency practice in SA, the Harcourts Africa this week announced that it is to partner with residential letting legend Raal Nordin and has acquired a substantial stake in his new company, Only Rentals.
“This is a great deal for us,” says Harcourts Africa CEO Martin Schultheiss. “It will enable us to deliver even more value to our existing franchisees by providing them with real rental management expertise, and to further broaden our service offering to consumers. It is such an exciting development that already 20% of our members are in line to sign up for an Only Rentals operation.”
Only Rentals is the new brainchild of Nordin, the founder and original CEO of the highly successful Just Letting franchise chain, and it offers its franchisees a tried-and-tested rental property management system, proprietary software and legal backup.
“We are already a national operation with seven branches in all the major centers,” says Nordin, “but the deal with Harcourts will give us a much larger footprint in the market - and of course international clout - within a very short time. We expect to have at least 20 outlets up and running before the end of the year, and to become the biggest franchised letting company with 150 outlets by 2014.”
In terms of the deal, Harcourts franchisees will now have access to the Only Rentals systems to manage and grow their rental property portfolios. Some are also expected to dual brand their offices and others are expected to set up stand-alone Only Rentals outlets close to their Harcourts offices.
Schultheiss says there will also be major benefits in the deal for consumers.
“We are already providing our franchisees and agents with the best training, technology and systems to make them the top performers in real estate sales. And now they will be using the best rental property management system available to deliver exceptional service to landlords and tenants.”
The deal with Only Rentals follows the partnership agreement concluded late last year between the international Harcourts property group and the local Homenet group, which subsequently became Harcourts Africa - and the fastest-growing real estate group in SA.
“We have opened more than 20 brand new branches this year,” notes Schultheiss, “even though it’s reckoned to be one of the worst ever for real estate, and that’s because we are very clear that the future of real estate franchising is not just about giving our franchisees and agents a ‘brand’.
“The new game is about continuously adding value to make our business owners and agents more competitive and more successful. We are creating a new generation of estate agency practice and our agreement with Only Rentals fits perfectly into that plan.”
ISSUED BY HARCOURTS AFRICA
FOR FURTHER INFORMATION CALL
MARTIN SCHULTHEISS ON
083 648 0714 OR
RAAL NORDIN ON
076 066 5222
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073-946-9649 or
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31 August 2009, 08:13:21
Rawson bond origination group new selling franchises
Rawson Finance, Rawson Properties’ bond origination group which was established in 2008 is now widening its net by selling franchises.
The first two takers are Sharon Venter, who will serve north-west Johannesburg and Angela Billinghurst who will operate in the Randpark Ridge area.
Rob Lawrence, CEO of Rawson Finance, said that it is no secret that the major bond origination groups, after a three year bull run in which they had doubled and trebled turnovers, had been forced this year to cut back on staff heavily.
“This,” he said, “has presented us, as one of the newer and smaller groups in home finance, with a great opportunity to recruit really excellent staff, many of which have both the experience and drive to go on their own. Some such as Sharon Venter have already run independent companies but now wish to take advantage of a national brand.”
The new franchise operations will be known as “Yellowfin Home Loan Finance”.
“Our aim,” said Lawrence, “is to give Yellowfin franchisees all the support that a big name offers. They will benefit from nationwide advertising and a nationwide referral system, established connections with banks and finance houses, ongoing training and the use of tried and tested user-friendly systems – and they will have myself and others to call up for help at any time any day of the week.”
The new Yellowfin franchisees, he added, will enjoy no special privileges if and when they deal with Rawson property marketing franchisees but they will be free to deal with any property marketing agencies in SA and Lawrence hopes they will do this.
Lawrence said that the response to Yellowfin Home Loan Finance had been encouraging.
“It is quite clear that many bond originators have wanted the chance to go independent and now that this is possible for them, are jumping at the opportunity. We expect to establish 30 franchises in the next 12 months in Gauteng and 20 in the Western Province.”
Both the first two franchisees to sign up with Yellowfin, said Lawrence, are highly experienced. Venter operated previously as Property Choice Bonds and her team, which includes Corinne van Rensburg and Iris Wyman, has over 75 years bank and bond origination experience. She expects to be employing a staff of 20 by the end of 2010.
Angela Billinghurst’s background includes 20 years in fiduciary services, private banking and bond origination. She has a B Com (Banking) qualification. She set up “Fundamentals” in March 2009 and currently employs two staff and has plans to recruit two more by the year end.
She said recently that Yellowfin will be attractive to bond originators with a yen to be independent because, although a strong brand, its franchisees are not hemmed in by the stringent rulings enforced by the larger companies.
“This is a good time to launch a Yellowfin Home Loan Finance franchise,” said Lawrence, “because most people in residential property believe that we are very close to the bottom of the home values graph and that from now on we will see a steady though not spectacular growth in sales.”
For further information contact Rob Lawrence on 021 658 7100 or email rob@rawsonfinance.co.za
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31 August 2009, 08:11:55
Certain areas of Cape Town will benefit more than others from the world cup
There is a widespread expectation in Cape Town that certain people will make a miraculously big killing on property sales at the time of the Soccer World Cup.
Is this expectation justified and, if so, which areas are likely to benefit most?
One of the most experienced of Cape Town’s younger estate agency chief executives, Anton du Plessis of Vineyard Estates, says that certain areas, especially those which are already well known internationally are likely to find additional buyers during the Soccer World Cup period.
“Internationally, recognised names like Clifton, Camps Bay, and Llandudno will certainly benefit. It is also inevitable that the areas immediately surrounding the Green Point Stadium will receive attention and sales from the exposure.”
“If one looks at what has happened in other countries like Spain, Germany and France that have hosted big sporting events, it is quite clear that areas close to the sea or with great views will attract overseas buyers during the World Cup. Having seen the Cape for the first time, it is inevitable that even those who were not planning to buy property may find themselves doing so. We in the property sector expect nothing less than 1 000 additional property sales over this period countrywide – with Cape Town getting the highest proportion.
“Family homes in the conventional suburban areas such as Rondebosch and parts of Claremont, Kenilworth and Newlands, although no doubt attractive, are unlikely to find international buyers. The sort of buyer we can expect to sign up will be one going for a lock up and go facility in the popular recreational/resort areas already known to international buyers. We expect increased interest in such special areas as Bishopscourt and the lock-up-and-go homes of Newlands Village and Upper Claremont is also likely.
A factor that worries him, said du Plessis, is that a great many homeowners are waiting for the World Cup before placing their home on the market in anticipation of increased demand. This could cause an influx of properties for sale in an already overstocked market. The laws of supply and demand dictate that this will result in lower prices being achieved. It remains to be seen whether the increased demand will be able to absorb this supply.
For further information contact Anton du Plessis 083 234 2909 or email anton@vineyardestates.co.za
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29 August 2009, 08:16:14
The international Harcourts real estate group is now represented in Edenvale thanks to the conversion of leading local agency Homenet Prime to the powerful new brand.
This follows last year’s partnership deal between Harcourts International and South Africa’s Homenet group, which has now been renamed Harcourts Africa and is in the process of re-branding all its offices around the country.
Savas Nicolaides, principal of Harcourts Prime, is excited about operating under the new banner. “The South African propertyscape is changing and the property service industry also has to evolve if it is to remain viable. As an international group, Harcourts has the experience and know-how to develop the necessary tools to help agencies deliver better service and we are especially pleased to be able to tap into its technological capabilities.”
Adds Harcourts Africa CEO Martin Schultheiss. “Harcourts really does represent the ‘next generation’ of estate agency practice and is creating huge excitement and injecting new energy into the SA real estate industry.
“We see this in the volume of enquiries we are getting from both independent agencies and disillusioned members of other real estate groups, and in the fact that we have added 18 brand new offices to the group since the start of the year – making us by far the fastest-growing group in the country at the moment.
“We have also now rebranded more than 40 of the old Homenet offices that formed the basis of the group, and are on track to have the whole rebrand exercise completed by March 2010.”
Harcourts is the also fastest-growing real estate group in Australia, and the biggest in New Zealand. It also operates in China, Fiji, Indonesia, Singapore and Zambia and has been rated by world real estate authority Stefan Swanepoel as one of the top five international real estate brands.
Globally, the group currently has more than 600 offices employing 4000 sales consultants, and sells more than $19,5bn worth of property every year.
ISSUED BY HARCOURTS AFRICA
FOR MORE INFORMATION
CONTACT MARTIN SCHULTHEISS
ON 031-201-1060 OR VISIT
www.harcourts.co.za
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073-946-9649 or
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28 August 2009, 15:22:13
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FROM THE EDITOR |
Second quarter national accounts data show South Africa's economy contracted for the third consecutive quarter. Though South Africa's financial system was spared the worst of the global financial crisis, finance, real estate and business services fell for the second straight quarter, constrained by tight credit.
Last week we placed an article with compelling arguments for why the property market will not recover any time soon just to follow up this week with various articles that there is light at the end of the tunnel after all. It has been reported that there is for sure an increase in demand in some area and the property experts are convinced that the residential market has bottomed out.
In this issue a release from Tony Bales of Bales Investprop on the issues surrounding bank lending in SA currently and the effect this has on the development, construction and investment sectors of the SA economy.
Enjoy!
The editor
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27 August 2009, 09:40:09
After less than a year in the real estate business, Witbank agency principal Liza de Lange has just won the Franchise Businesswoman of the Year award for Mpumalanga from the SA Council of Businesswomen.
Having previously owned and run a highly successful vehicle tracking business, De Lange has since October been the owner and principal of the Homenet franchise in Witbank - which is currently in the process of converting to the powerful international Harcourts brand - and she recently also became the Mpumalanga representative on the Harcourts Africa Franchise Council.
“Liza is a true entrepreneur,” says Martin Schultheiss, CEO of Harcourts Africa, and at the same time she has an innate understanding of the core values that must inform all the decisions and actions of a Harcourts franchisee – as well as the benefits of our training, technology and business systems.
“But more than that, I am proud to say that her Businesswoman of the Year award strongly reflects the quality of franchisees throughout the group. Indeed, this was one of the main considerations that last year led Harcourts International to choose the former Homenet group as its African partner.
“We simply have the best trained and best motivated people – and since we have begun rebranding the Homenet group to Harcourts this year we have attracted even more top real estate talent to our ranks and become the fastest-growing real estate group in the country.”
De Lange says it is already clear not only to industry observers but also to the public that while most real estate groups have been cutting back and consolidating to cope with the economic downturn, Harcourts has actually been expanding its operations, which shows it has great faith in the SA property market.
“What is more, with 600 offices internationally, the Harcourts group has the business systems, marketing methods, technology and tools to enable its franchisees and agents not only to see out the current tough times, but to succeed in the future in a sector that is rapidly being globalised.
“What we have here is the ‘next generation’ of estate agency practice and my team and I are proud and excited to be part of it.”
Harcourts is also the fastest-growing real estate group in Australia and the biggest in New Zealand. It also operates in China, Fiji, Indonesia, Singapore and Zambia and has been rated by world real estate authority Stefan Swanepoel as one of the top five international real estate brands.
ISSUED BY HARCOURTS AFRICA
FOR MORE INFORMATION
CONTACT MARTIN SCHULTHEISS
ON 031-201-1060 OR VISIT
www.harcourts.co.za
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Pse direct any enquiries to
012-333-6644,
073-946-9649 or
megw@telkomsa.net
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25 August 2009, 09:49:12
FNB’s Quick Sell Plan not only helps to find buyers for homeowners in financial distress but also presents very good opportunities for property investors.
So says Young Carr, CEO of Aida National Franchises, which has been nominated as a real estate partner for the plan. He notes that buyers introduced by an FNB partner agent can qualify for home loans on Quick Sell Plan properties of up to 100% and receive a 50% discount on transfer costs and bond registration fees.
“This is a very appealing offer in the current tight credit climate, where home buyers are generally required to have a cash deposit of at least 20 percent, plus an amount equal to at least 4% of the property’s value to cover closing costs.”
Buying a Quick Sell Plan property through Aida can make a huge difference to the returns an investor can expect. “To purchase a normal property costing R800 000, for example, most buyers would currently need a deposit of at least R160 000, plus around R32 000 for transfer and bond costs."
“However, the investor who buys an FNB Quick Sell property costing R800 000 with 100% loan, will only need a cash amount of R16 000, half the transfer and bond costs – and once property prices start to rise again, the additional leverage will mean much higher returns for the investor."
“In addition, buying an FNB Quick Sell property limits the investor’s risk. Putting down R16 000 on a property is a lot less risky than putting down R192 000 of your cash.”
Carr cautions, however, that investors should not get carried away and over-extend themselves financially. “Although properties offered in terms of the FNB Quick Sell plan can be viewed as bargains, it would not benefit investors to buy them if they then just ended up having to resell because they bit off more than they could chew and had become distressed sellers themselves.”
Issued by Aida National Franchises
Aida head office: 012 682 9600
Contact: Young Carr
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24 August 2009, 09:51:05
Average prices in camps bay have risen by 2,24% year on year
Statements from estate agents to the effect that this or that area is bucking the trend, has bottomed out or is now witnessing a revival, are often treated with skepticism of the “that is, after all, is what we expect from estate agents” variety.
However, when an agent with 27 years experience in property marketing says that prices in her area have risen 2,24% in one year, property watchers should take note.
Marion Taylor, who is CEO of Greeff Properties Camps Bay, City Bowl and Hout Bay branches, says that that is the situation in Camps Bay – despite a slight drop in sales volumes.
In April, May and June 2008, says Taylor, 13 houses and five apartments were sold at an average price of R6 880 018 – a surprisingly high figure considering that apartments at that stage were selling at an average price of only R3,2 million, and therefore reduced the overall average significantly.
In April, May, June 2009 ten houses and three apartments were sold at an average price of R7 701 282 – a very substantial increase – on the averages.
What is more, says Taylor, at this point in the property cycle she cannot see Camps Bay prices going anywhere except upwards.
“Over the last six months,” she said, “many of the real estate leaders, including the CEO of Greeff Properties, Mike Greeff, have been advising clients that now is the right time to buy if they want to get in ahead of the next rising market. I, too, am now saying that, especially in relation to Camps Bay. The prices at which houses are now being sold will not be repeated and, by the end of 2010, I expect most will have risen by at least 10%.”
Taylor said that on her Camps Bay list right now are houses priced from R4,95 to R27 million. These, she said, reflect a wide spectrum of what is available. Camps Bay, in her opinion, has become so popular that many buyers find that the only way they can get the type of property they want is to buy an old house and demolish it. Others are waiting for a further drop in prices and the opportunity to make a killing but, says Taylor, this is unrealistic thinking.
For further information contact Marion Taylor on 083 448 0300 or email marion.taylor@greeff.co.za
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24 August 2009, 09:42:09
There is among critics of the SA government – and indeed any government worldwide – a perception that, while private enterprise always strives to find savings wherever possible, those handling state expenditure, having not earned their budgets, tend to be spendthrift.
In the circumstances, says Anton du Plessis, CEO of Vineyard Estates, it was to him a revelatory experience to see just how careful the Western Cape Public Works Department is in spending cash allocated to it.
Vineyard Estates was one of several agencies mandated to find homes in Cape Town’s central Southern Suburbs for new ministers. These had all to be within a specified price range, the top end of which was below R10 million – but getting the PWD to make an offer, says du Plessis, “was no pushover”.
“They looked at almost a dozen homes before selecting one that they considered suitable. They then spent three weeks negotiating to make quite sure that they were getting a price as genuinely competitive as today’s tough market makes possible. In the end, the home they bought was secured at 15 % below the listed price.”
“The team with which he had to negotiate, said du Plessis, included professionals from the valuation, finance and security sectors – and they were highly knowledgeable.”
Once a home is purchased by the PWD for a minister, other teams move in to decorate and make the homes more secure – in the process adding considerable value to the property.
Du Plessis said that he expects to find at least one more home for the team looking for new ministerial homes – and, once again, he accepts that no loopholes will be overlooked by the PWD in ensuring they get the lowest price possible.
Du Plessis commented that those living close to any home purchased for a minister can be grateful because they will benefit from the increased round-the-clock police protection in the area.
For further information contact Anton du Plessis 083 234 2909 or email anton@vineyardestates.co.za
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23 August 2009, 09:52:30
Port Elizabeth has its first Harcourts office, thanks to the recent conversion of the Homenet Windmill agency in Newton Park to the powerful international brand.
Named Harcourts Alpha, the office is owned by Denton Henning, who gained extensive business experience in the motor and construction sectors before entering real estate and is enthusiastic about his agency’s prospects as a member of a huge international group.
“The Harcourts referral system, professional outlook, national and international network, behavioural guidelines and general standards are a really a cut above the rest, and its ‘people first’ methodology and training are also very progressive. It gives us all the ingredients to build very successful agencies.”
The conversion of the office to the Harcourts brand follows last year’s partnership deal between Harcourts International and South Africa’s Homenet group, which has now been renamed Harcourts Africa and is in the process of re-branding all its offices around the country.
However, says Harcourts Africa CEO Martin Schultheiss: “We are very clear that the future of real estate franchising is not just about giving our franchisees and agents a ‘brand’. The new game is about adding value and making your business owners and agents successful and the Harcourts value proposition is already creating huge excitement in the SA real estate industry.
“We see this in the volume of enquiries we are getting from both independent agencies and disillusioned members of other real estate groups, and in the fact that we have added 18 brand new offices to the group since the start of the year – making us by far the fastest-growing group in the country at the moment.
“We have also now rebranded more than 40 of the old Homenet offices that formed the basis of the group, and are on track to have the whole rebrand exercise completed by March 2010.”
Harcourts is also the fastest-growing real estate group in Australia and the biggest in New Zealand. It also operates in China, Fiji, Indonesia, Singapore and Zambia and has been rated by world real estate authority Stefan Swanepoel as one of the top five international real estate brands.
Globally, the group currently has more than 600 offices employing 4000 sales consultants, and sells more than $19,5bn worth of property every year.
ISSUED BY HARCOURTS AFRICA
FOR MORE INFORMATION
CONTACT MARTIN SCHULTHEISS
ON 031-201-1060 OR VISIT
www.harcourts.co.za
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21 August 2009, 15:03:42
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FROM THE EDITOR |
Although home loan payments are now more than 25%
lower than what they were in December last year there was
not much feedback from the property industry on last
week’s decision of the Reserve Bank to cut the repo rate.
I find this difficult to understand if you take in consideration
that Mboweni cited falling house prices among one of
the factors that was taken in account. One would expect the
property industry to be jubilant. Or are they just careful?
Herschel Jawitz chief executive of Jawitz Properties says
that any cut will take pressure off existing homeowners
and that property is now becoming more affordable.
MD of Rawson Properties Tony Clarke was one of the few that
was “more or less” expecting a cut in the repo rate.
“The weak domestic growth,” said Clarke,
“in my view calls for a further drop as soon as possible.”
A survey of real estate executives in 27 countries
showed South Africa, the United States and New Zealand faring
worst as the market downturn worsens. Distressed sales
of global comm. properties rise-RICS
Last week we asked you if you are thinking of upgrading your
property or even looking at building that dream home
and gave advice from two of the property industry gurus. Lew
Geffen, chairman of Sotheby’s International Realty answers
this week in Upgrade in time for the upturn
Enjoy!
The editor
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Featured
Property |
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Limpopo,
Haenertsburg
Property Type: Hotel | Bedrooms: 18 | Bathrooms: 20
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19 August 2009, 08:47:05
The international Harcourts real estate group will soon be represented in Queenstown, as leading local agency Homenet Queenstown changes over to the powerful new brand.
And agency principal Moira Pappas, who has been in the real estate industry for the past four years, is excited at the prospect. She says Harcourts’ technological systems, fresh approach to business and international backing give its member agencies what it takes to “make it” in South Africa despite the current economic downturn.
“And instead of sticking its head in the sand at this time, Harcourts is deliberately investing and expanding its operations. Such a bold move by an international property group of this calibre will do much to up the mood of the South African property industry overall.”
The transition to the Harcourts brand follows last year’s partnership deal between Harcourts International and South Africa’s Homenet group, which has now been renamed Harcourts Africa and is in the process of re-branding all its offices around the country.
One of the key aspects of this deal, says Harcourts Africa CEO Martin Schultheiss, was that as one of the biggest real estate groups in SA, Homenet could immediately give Harcourts International a national footprint, even in small centers such as Queenstown, so that the brand could immediately make a strong impact in SA.
“And we have already rebranded more than 40 of the old Homenet offices that formed the basis of the group, which puts us on track to have the whole rebrand exercise completed by March 2010
“However, the Harcourts value proposition has also created huge excitement in the greater industry, as evidenced by the large volume of enquiries we are getting from both independent agencies and disillusioned members of other real estate groups. This has enabled us to add 18 brand new offices to the group since the start of the year – making us by far the fastest-growing group in the country at the moment.”
Harcourts is also the fastest-growing real estate group in Australia and the biggest in New Zealand. It also operates in China, Fiji, Indonesia, Singapore and Zambia and has been rated by world real estate authority Stefan Swanepoel as one of the top five international real estate brands.
Globally, the group currently has more than 600 offices employing 4000 sales consultants, and sells more than $19,5bn worth of property every year.
ISSUED BY HARCOURTS AFRICA
FOR MORE INFORMATION
CONTACT MARTIN SCHULTHEISS
ON 031-201-1060 OR VISIT
www.harcourts.co.za
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18 August 2009, 08:56:23
Rawson’s MD reveals big increase in sales
Is the residential property sector going through the worst recession since the 1939-1941 slump – or are the difficulties exaggerated?
Bill Rawson, Chairman of Rawson Properties, has said that in his view this recession is not as bad as that of 1969 and 1991 and the 1976-1977 Soweto riots period – while Rawson’s MD, Tony Clarke, said this week that, although he does not foresee a real recovery for 12 months, some of his group’s latest sales figures have been very encouraging.
“We have a company policy of not revealing figures – but I can say that our sales in July were 57% up on those of June, which itself was a reasonably good month.”
Clarke said that the only really reliable guide to trends in property sales are based on six months’ performance but, here again, he said, the overall trends indicate that by this year there will have been half a year’s steady growth.
“Overall growth in the second and third quarters seems now certain,” he said.
Asked to what he attributes this, Clarke said the banks are slowly easing up on their lending criteria and many indecisive, hesitant buyers who were hanging back waiting for signs that the market was at its lowest point are now investing.
“In general,” he said, “they are taking twice as long as before to make up their minds and are much more demanding of value than previously but they are no longer just waiting.”
Although Rawsons has traditionally been strongest in the middle and lower middle categories, any review of sales, said Clarke, will show that they are now a force to be reckoned with in the upper brackets – not only in Cape Town but also in the northern suburbs of Johannesburg such as Dainfern, Fourways and Bryanston.
For further information contact Tony Clarke on 021658 7100 or email tony@rawsonproperties.com
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18 August 2009, 08:54:52
Upper Kenilworth Provencal style home has real design merit, say APKF staff
Every now and then, says Lanice Steward, MD of Anne Porter Knight Frank, a home comes on to their sales list that is unmistakably superior to the vast majority of Cape residences.
One such in Upper Kenilworth, she says, is now on the APKF lists at a price of R7,2 million - and in her view would represent superb value at even 10% more than that figure.
"Although quite clearly upmarket, this house is priced in the middle to upper middle category and is a bargain at the asking price."
Di Hosty, who is handling this APKF marketing task, said that the home, designed by Denis Maas of Maas & Coetzee Architects, is authentically Provencal: with an occasional Cape vernacular feature here and there it has, says Hosty, the ‘Divine Ratio’ (1:1,6) in windows flanked by grey-green wooden shutters and topped by a light grey low pitch roof, above which a single tall chimney with attractive mouldings rises. A small lantern tower on the roof ridge allows extra light into the living rooms and the north-facing front facade is protected from sun by a deep shaded veranda with fold-up canvas blinds and a thick low hedge. This patio is approached by a flight of a dozen narrow, semi-planted steps.
Living areas are open plan with high ceilings, Cemwash-coated walls and sophisticated, ochre-coloured floor screeds laid to have a tile look, without appearing to imitate tiles. The home has three bedrooms, all en suite and all, like the patio and living areas, offering unimpeded views of Devils Peak and the southern spine of Table Mountain.
The kitchen, says Harker, is ultra-modern with marble countertops and a link to the open plan living and dining area.
The garden, she adds, is also Provencal in style and layout (with a herb section) and has a “wonderfully natural” rock pool fed by mountain water.
A large double garage is able to accommodate two big vehicles or three small vehicles and the property has secure parking for four cars.
Steward said that the home has to be viewed to be fully appreciated.
"It has all the distinction conferred by really good taste applied without pretension or attempts to impress: this is a truly well-designed home with everything in the right place."
For further information contact Di Hosty on 082 775 2777
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18 August 2009, 08:52:10
Two agents claiming commission? It can happen
What happens when an agent produces an offer on a property that has recently been mandated to another agent?
In the present property market conditions, says Anton du Plessis, CEO of Vineyard Estates, people are sometimes taking several weeks, or even months to make up their minds about whether or not to buy.
This, he says, has on occasion led to a difficult situation in which, after a client has awarded a Sole Mandate to a second agent as a result of the original agent’s not achieving a sale, the first agent suddenly returns with an offer from a buyer whom he has introduced to the home previously.
The original agent will then demand his commission while the second agent will probably insist on sharing this – or may even claim that, as the mandate had expired, no fee is due.
Clients, said du Plessis, on signing a new mandate should make provision for potential buyers already introduced to the home, and should have a clear cut policy in place for dealing with this issue.
The Institute of Estate Agents’ Code of Conduct, added du Plessis, lays down rules on this matter – but regrettably, as only 25% of agents in the Western Cape are member of this institute, many are not bound by this code.
On the other hand, he says, the Estate Agency Affairs Board clearly stipulates that no estate agent should accept “a sole mandate unless he has explained to the client in writing the legal implications of selling or letting that property without his assistance or through the intervention of another agent”.
The wording of the EAAB resolution, says du Plessis, clearly places the onus on the second agent to warn his client about the possible problems. However, as no all-encompassing standard rule applies here, sellers too should clarify exactly what will happen if a former potential agent or buyer suddenly comes up with an offer after his mandate has expired.
For further information contact Anton du Plessis 083 234 2909 or email anton@vineyardestates.co.za
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17 August 2009, 11:00:52
Property group CENTURY 21 has introduced an innovative offer to ‘incentivise’ franchise purchases for a limited period.
The initiative, dubbed the “Golden Ticket”, is aimed at established estate agencies with a proven track record, says Colleen Gray, MD of CENTURY 21 South Africa.
“Essentially what we are offering selectively are fully-fledged CENTURY21 franchises with all the usual attributes of training programmes, technology, marketing support and business tools associated with any franchise agreement we sign.
“The difference in this instance however, is that for a limited period, commencing in August, these franchises will be available at an incentivised level of pricing which we believe makes our quality brand the most attractive offer available to the market at this time.”
She says the company is looking for established estate agencies which would benefit most from CENTURY21’s global and local branding and which would turn to good account the value of that brand in what continues to be an extremely tough market.
“We recognise that agencies have been through arguably the toughest business cycle in decades, a situation that’s reflected in the fact that as many as 50 000 agents have reportedly left the sector.
“The hard core of about 38 000 agents who are still in business have proven their ability to survive tough times by a combination of good management, cost controls and adaptability to demanding consumer conditions, notwithstanding the lack of bank finance and consumer wariness of debt in whatever form.
“These are therefore people who are clearly at the top of their game but equally they remain challenged on numerous levels not least of which of course, are costs.
“Moreover, they need all the support they can get in current conditions to remain in business pending the arrival of the inevitable upturn. It’s this market to which we are targeting and we have little doubt that there will be a tremendous response.”
ISSUED BY
CENTURY 21 SOUTH AFRICA
FOR MORE INFORMATION
CONTACT LINDIE BOW ON
011-884-2202 OR VISIT
www.century21.co.za
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17 August 2009, 10:56:15
R5,5 million upper Constantia home good entry level buy
Greeff Properties Upper Constantia team has a mandate to sell a large four bedroom Upper Constantia home under Mazista slate at a “very reasonable price” of R5,5 million.
It would, say the Greeff agents, suit a young family and has the potential to be renovated. The double garage could be included in the living area of the house and a new double garage with direct access into the kitchen could be built.
The newly upgraded kitchen has wood and granite countertops, an electric hob, Gemini Defy oven and extractor fan plus a well designed pantry cupboard and separate laundry.
Underfloor heating ensures that the home is cosy and warm in winter and an outdoor verandah with built in braai facilitates year round entertaining. This sunny property is in pristine condition. The plot measures 1 583m².
The house is situated in a quiet street but is conveniently located close to the Constantia Sports Complex with its gym, bowling greens, tennis courts, rugby and hockey fields. The position offers easy access to the M3 and Constantia Shopping Village.
Mike Greeff, CEO of Greeff Properties, commented,
“This is the sort of home on which we established our reputation. It is always a good strategy to buy the less expensive homes in a very expensive area (such as Upper Constantia) and the purchasers of this plot will be acquiring an asset with huge value increase potential.
For further information contact Greeff Properties on 021 763 4120 or email info@greeff.co.za.
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17 August 2009, 10:51:08
Top Constantia Georgian home offered at “knock down” price of r11,9 million
An excellent example of modern Georgian architecture with a strong rural ambience has come on the market in Bishopscourt at a price of R11 995 000. What is more, the entire house was recently renovated.
Marketed by Ford King, Simon Raab and Carol Bracken of Greeff Properties, the home is close to Kirstenbosch Gardens’ upper gate and has 180˘Ş views across the Constantia Valley all the way to False Bay, while the north facing side of the building looks across to Devil’s Peak.
“With well over 5 000m² of ground, the home has beautiful gardens with a large swimming pool and high boundary trees, in a beautiful private setting at the end of a leafy country lane,” said King.
The house has four bedrooms, two en suite, a family bathroom, four exceptionally large reception areas, a Jacuzzi, a double garage (and parking for a further eight cars) plus self-contained staff quarters. A particular attraction, said King, is that the home has state-of-the-art security.
The owner, who obviously has a liking for things rural, has moved to a farm in Stellenbosch, with the result that immediate occupation can be given to this wonderful family home.
For further information contact Ford King on 083 226 2946, Simon Raab on 082 325 8801 or Carol Bracken on 083 226 6813.
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17 August 2009, 10:37:59
Stock shortages boost Rondebosch residential prices
Demand for Rondebosch homes never drops off - it is one of the most popular suburbs in Cape Town, says Jeanne Cowan of Anne Porter Knight Frank, who, along with Otilia Harker, is selling property throughout this area.
However, adds Cowan, the number of sale offerings becoming available in Rondebosch is always very limited.
“Once people have lived here they simply do not want to move elsewhere,” she said. “They will often stay on in their homes long past the time when they should have downscaled or moved to a retirement village.”
The big attraction of Rondebosch, said Cowan, is its proximity to many good schools and to UCT. But Anne Porter Knight Frank’s experience is that residents will stay on here long after their children have been educated and/or graduated from university.
For all these reasons when a home does come onto the market, said Cowan, it is “exciting”, especially when, as in this case, it is on the sought after “Silver Mile”.
“The home that we are now selling might have been a fairly typical affluent but rather conventional 1970s type family residence, but it has recently been totally renovated in very good taste to give it a new sophistication. Thankfully this has been done without in any way detracting from its original comfort and charm.”
The refurbished home has stripped wooden floorboards, open plan living and dining areas, a spacious kitchen with granite countertops, black floor tiles and a state-of-the-art oven and hob.
There are altogether three bedrooms and two bathrooms, but one bedroom has long been used as a study and is ideally suited to this purpose.
On top of all this, the 1,000 m2 double plot also contains a small one-bedroom flat and a double garage. All buildings on the property are protected by a comprehensive security system.
Cowan said that the home has the potential to be extended upwards into the attic because the structure was designed for additional weight loading.
The home is priced at R2,950,000, which, said Lanice Steward, MD of Anne Porter Knight Frank, is a price that genuinely does reflect the 20% plus decline in prices since the high points reached in 2007.
“This home is very competitively priced for today’s market and has the potential to appreciate rapidly in value once the current downturn ends,” she said.
For further information contact Jeanne Cowan and Otilia Harker on 021 671 9120 or email info@anneporter.co.za
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17 August 2009, 08:57:33
Victor’s Kloof “palace” comes on the market
Victor’s Kloof (off Valley Road) is thought by many to be the most prestigious precinct in Hout Bay – and the latest home to be marketed there by Greeff Properties’ new Hout Bay branch is, says the manager of that branch, Gerald Romanovsky, is the jewel in the area’s crown.
“There is only one description that fits such a home,” said Romanovsky. “It is a 20th Century palace.”
“Occupying a commanding elevated position in one of Victorkloof’s most sought-after streets, the beautifully finished residence,” said Romanovsky, “defines ultra contemporary living.
Architecturally designed for an active family lifestyle, the home provides two levels of living and entertaining areas. It also offers panoramic views across the bay, with an interplay of light and space with a terrace that is light filled year round by north light.
Priced at R14,95 million, the property in fact is made up of three separate buildings, the main house and two cottages, all of which, says Romanovksy, are luxuriously fitted out with every modern convenience, including under-floor heating.
The main house has six bedrooms, three of which have their own bathrooms, while the main bedroom is fitted with a plasma TV and has its own private lounge with a fireplace. It also has a steam room for Turkish baths.
The spacious open plan kitchen has Tasmanian oak and granite tops, a Eurogas stove, a Siemens refrigerator and microwave oven.
Travertine tiles have been laid throughout all rooms and Balau timber decks lead off all the bedrooms.
A wine cellar is situated on the lower ground floor and the home has double garaging and additional parking for four cars.
The larger cottage has three bedrooms, all en suite and the same Travertine tiling.
The smaller cottage has one bedroom, an open plan living area, Travertine tiles and a sandstone patio.
Of interest to those who like local history is the fact a plaque on the road testifies to the fact that the original entry road from Llandudno area passed through this property – giving a gentler descent than the notorious Suikerbossie hill, the last and most daunting climb in the annual Cape Argus/Pick ‘n Pay Cycle Tour.
Romanovsky said that there is a widespread realisation that Hout Bay now offers “incredible value”.
“If this home were in Fresnaye, Camps Bay or Constantia, the price would be double what is now being asked,” he said.
For further information contact Gerald Romanovsky on 021 790 8983 or email gerald@greeff.co.za
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14 August 2009, 15:06:32
Tax breaks for homebuyers could lift the real estate market from the doldrums and give the flagging economy a boost in the process.
This is the view of Berry Everitt, CEO of the Chas Everitt International property group, who says government should seriously consider such tax relief in the face of the current economic climate and South Africa’s need to encourage and promote homeownership.
“There are many examples around the world where particularly first-time buyers are encouraged to buy their own homes through tax incentives, which can either be in the form of deductions or credits.
“We are strongly in favour of a system where the interest portion of home loan repayments is tax deductible. This would benefit buyers especially in the first years after purchase, since repayments initially consist nearly entirely of interest payments, with very little capital being paid off.
“Such a system would assist homebuyers in no small degree and make homeownership both more attractive and affordable. Arguments that the fiscus would lose a sizeable source of income do not really hold water, since the savings would be available to consumers, who would likely plough the freed-up cash back into the economy.
“This is very pertinent at the moment as the economy as a whole would hugely benefit by an injection of increased spending, which would have a multiplier effect,” Everitt says. “And ultimately such spending would boost the taxman’s revenue.”
A second alternative is a once-off tax credit for homebuyers. This would help new buyers financially in the first year after buying property by freeing up cash for the many incidental costs associated with homeownership, Everitt says.
“Both options, however, would benefit the real estate market as well as the wider economy and would also go a long way to build a bigger middle class, which would ensure long-term economic stability in the country.”
Issued by Chas Everitt International
For further information call
Berry Everitt on
011 801 2500 or visit
www.everitt.co.za
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14 August 2009, 14:51:10
Cyberprop.com Weekly News Letter
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Edition 32 of 2009, Friday, 14 August 2009
Dear Reader
 The
Reserve Bank took markets and analysts by surprise yesterday, cutting
lending rates despite stubborn price pressures in a bid to help
jolt the economy out of recession. SA appeared to be “lagging”
a global recovery and “adverse economic conditions” had
tilted risks to the inflation outlook downwards, governor Tito Mboweni
said. That was the reason given for the unexpected decision of the
Bank’s monetary policy committee (MPC) to cut its key repo
rate half a percentage point to 7% — its lowest in more than
three years. (Business Day)
What does it mean for you the homeowner or how does it help your
current situation? To put it simply, when the Reserve bank cut the
repo rate the financial institutions follows by cutting the interest
rate. It reduces what it cost to borrow money from the banks. This
encourage businesses and consumers to spend. Well, if you are a
homeowners with an adjustable-rate mortgages, you like it. If you
have an adjustable rate home equity loan, you like it. If
you are a homeowners with a good credit rating and can refinance
at lower rates, you like it. If you are a potential homeowner looking
for that first home, you like it. Do you think that as a
homeowner that the time is right to fix your interest rate on your
mortgage or should you wait a little longer? Send your viewpoints
to news@cyberprop.com
Are you thinking of upgrading your property or even looking
at building that dream home? Advice from Bill Rawson, Chairman
of the Rawson Properties group and Gerhard Kotzé, CEO of
the ERA South Africa property group;
- Now is a good time to undertake building upgrades, but the cost
of truly skilled work can be prohibitively high, says Rawson
- Don’t hire a builder before you know all about him
Centre of the Klein Karoo and 'ostrich-feather capital' of the
world, as well as having the famous Cango Caves. A lush oasis catering
for adventure, cultural and geological tourists and one of the most-visited
towns in the country. Focus on, Oudtshoorn, Garden Route,
South Africa
Enjoy!
The editors
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14 August 2009, 10:33:36
Harfield village prices and sales continue to rise despite the recession
One of Cape Peninsula’s best known residential property developers has produced another strikingly modern duplex townhouse in Harfield Village, originally intended for personal use.
Anne Porter Knight Frank agents Jenny Zinn and Sylvia Muzzell who are marketing this north-facing property say that, with three bedrooms, two bathrooms and two open plan living/dining rooms as well as a garage and parking bay, this townhouse has far more floor area than most of the freestanding homes in the precinct. What is more, said Zinn, the finishes are truly upmarket: they include granite countertops in the kitchen, aluminium framed sliding doors and windows and wrought iron staircase balustrades. The home, said Zinn, has exceptionally large cupboards and storage areas.
“One has to recognise,” said Zinn, “that at a price of R1 749 000 this house is coming onto the market at a discount of at least 40% on what would be paid for exactly the same sort of home in Kirstenhof, Tokai or other nearby suburbs. This is further proof that Harfield Village still offers superb value, although this situation will not last for ever.”
Lanice Steward, MD of Anne Porter Knight Frank, commented that Harfield Village property is performing “beyond expectation”. Referring to a bar chart drawn up by her agents, Steward showed that in the January to June period this year, not only were sales in the Harfield Village area much higher than those of similar precincts such as Kenilworth East and Claremont Village, but also that, unlike them, values increased this year.
“In Harfield Village,” said Steward, “there were 27 sales from 1st January to 30th June, an increase of 28% on the same period last year. Furthermore, the average price rose despite the recession from R1,206,000 to R1,290,370 this year.
Harfield Village, with its lively communal life, friendly residents and coffee shops and bistros, added Steward, attracts exactly the same sort of young, vibrant, upwardly mobile buyers as are found in Newlands Village, Chelsea Wynberg and Little Mowbray. However, the prices in Harfield Village are “way below” those of these other higher profile precincts.
If you are looking for a tip on an area likely to appreciate fast from a fairly low base,” said Steward, “Harfield Village would be top of my list.”
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13 August 2009, 10:29:13
Discounted prices at “soho on south” make units good value
Few precincts in South Africa have witnessed such rapid ongoing development at Table View and its adjacent areas, says Mike Abrahamse, Rawson Properties’ franchisee for this area – and, he adds, right now the recession has made more good buys in this territory available than at any previous stage in his 24 years of property selling.
At Pearson Projects’ new R15 million Soho on South right now, says Abrahamse, it is possible to buy one of six remaining units (the others in this new project have long since been sold) at prices that are some 22% off what was originally asked at the launch.
That means that a one bedroom unit originally priced at R574 000 can now be bought for R450 000 while a two bedroom unit launched at R635 000 can now be had at R500 000. What is more, these prices are inclusive of VAT, so there is no transfer duty payable.
The project, says Abrahamse, has three factors very much in its favour: it is surrounded by a high wall in which there is only one electronically controlled entrance and exit gate; it is designed in a chic, minimalist Manhattan style with mono-pitch roofs, aluminium window and sliding door frames, Cretestone walls and slate tiles in the living, bathroom and kitchen areas, the last being fitted out with stainless steel ovens and hobs; and, being right in the heart of Table View, it is within easy walking distance of retail centres, schools, churches and medical facilities.
The development has its own swimming pool and a “wonderful communal atmosphere” has already been built up in the project.
The units for sale are, says Abrahamse, particularly well suited to investors because they already have tenants in them who are paying R3 500 to R3 600 per month – giving an average before-levies return of 7,2%.
Until a month or two ago, said Abrahamse, sales had been slowed up by the banks’ inability to give big bonds – now, he says, Rawson-sourced buyers are finding that they can get 90 and 95% bonds: one has even achieved a 100% bond “as in the old days”.
Abrahamse said that the principals of Pearson Projects, Donovan and Suzanne Pearson, have a long history of delivering excellent developments on the Atlantic West Coast, including the recently completed “On Athens”.
“Every project we have sold for them has had distinction,” said Abrahamse, “and the only reason why they are selling at lower prices now is that they are moving on to their next project.”
All West Coast residential property north of Paarden Eiland, added Abrahamse, will benefit from the new Rapid Transport bus lanes now being added to the freeways that link Milnerton, Table View, Parklands and Blouberg.
“The Table View to town journey,” said Abrahamse, “will be cut to 30 minutes travel and ten to fifteen minutes walk to most offices. This will be a saving for most people of at least one hour – and it will transform the whole lifestyle of the West Coast suburbs, allowing them to revert to their previous status of being within easy commuting distance of the CBD.”
For further information contact Mike Abrahamse on 021 557 5514 or email blaauwberg@rawsonproperties.com
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12 August 2009, 10:24:11
Eight unit “spring tide” development launched
Well known Western Cape property developer, Gary Vos, representing the Blouberg Coastal Property Trust, has just launched a new R12 million, eight apartment development, “Spring Tide”, and Rawson Properties Blaauwberg franchise, owned by principal Mike Abrahamse, is doing the marketing, with Abrahamse playing the key role.
Abrahamse said recently that this follows on from their previous associations at the Sandy Bay and The Breakers developments, all of which had great design merit, were competitively priced and sold fast.
“Right now,” he added, “it is not at all easy for developers to access bank finance but Gary Vos has achieved this, a further indication of the position he now holds in the development sector.”
Spring Tide is, said Abrahamse, “right in the heart of Blouberg” – it is just half a block from the beach and an easy walking distance from the area’s well known restaurants, bistros and coffee shops.
The project will, said Abrahamse, have a cotemporary style with ultra-modern mono-pitch roofs and Cape Cod type timbered façade claddings. Its units, said Abrahamse, will vary in size from 70m² to 100m² and, as on Vos’ previous developments, its open plan layouts will be characterised by upmarket finishes such as sandstone tiles, quality granite countertops in the kitchens, down-lighters, black aluminium framed windows and balcony doors and stainless steel balustrades. In general, said Abrahamse, the bathrooms (with corner baths) and the kitchens will be particularly luxurious and typical of the quality of this developer’s projects.
The units are all/mostly north facing and views from the majority of the apartments will take in the Tygerberg hills.
The development will, said Abrahamse, have a landscaped communal courtyard with braai facilities and seats.
Garages will be sited underneath the duplex units (making this a three storey project). Six of the apartments are two bedroom with two bathrooms and two have three bedrooms, with two bathrooms. Two of the ground floor units have gardens.
Take-up, said Abrahamse, has been fast, with the result that there are now only one three bedroom unit (100m²) and three two bedroom units (70m²) still available. These are priced from R998 000 (exclusive of a garage) to R1 565 000 (for a three bedroom unit with a double garage).
Abrahamse said that these prices are almost ludicrously low for a project of this quality and reflect the current state of the market – but, he predicted, within four to five years the same units will be selling at double what the developers are now asking.
“In my 23 years in property marketing,” he said, “I have been involved in 33 new projects in the area but this development is without question one of the top two or three and its quality finishes will be enhanced by it being in such a sought-after upmarket and central area. The development is designed fro the discerning buyer who seeks exclusivity, quality finishes and a safe and secure lock up ‘n go lifestyle.”
Completion of “Spring Tide” is scheduled for December this year with transfers taking place in March/April 2010.
“This,” added Abrahamse, “means that a shrewd buyer, doing his marketing early on, could earn himself up to R150 000 per month in rentals over the two month 2010 World Cup period.”
For further information contact Mike Abrahamse on 021 557 5514 or email blaauwberg@rawsonproperties.com.
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11 August 2009, 10:19:16
Shelley point’s new four star suites progressing well
Herman Theart, Chief Executive of Ekosto 1091, Shelley Point Hotel, Spa and Country Club’s contractor now working on the new R35 million 42 suite block extension (which will bring the total number of suites available at Shelley Point to 86 in all), reports that he is on schedule and on budget for an early completion by the end of March 2010.
“This building,” said Theart, “was designed by the Cape architects Le Roux Basson to be very similar to the first block (completed in September last year), but we have made these suites just that much better, more comfortable and more efficient.”
The building, he said, will be on three levels and will, like its predecessor, have a white walled Cape Vernacular style with a thatched roof (constructed by Lucas Quality Thatchers), the beams and thatch of which will be visible to occupants of the top floor - an attractive feature.
The suites are of two types: 64m2 simplex units on the ground floor and 72m2 duplex units above these. The larger units will have separate living and bedroom areas.
All units will have 600m2 of sandstone/porcelain tiles. The bathrooms will have Meranti shutter doors that can be folded back to link to the bedrooms. Plasma TV screens, visible from the bathroom and the living room will be standard in all units.
The ground floor areas will be lit with subtle down lighting and track lighting will be used on the upper floors.
Theart’s contract includes the provision of all furniture and fittings, including king size beds with imported flax linen, woollen blankets, top grade carpets, leather-type upholstered sofas and comfortable chairs.
“The plain truth,” said Theart, “is that nothing as good as this has ever before been provided on this scale in a Cape West Coast hospitality venue. Shelley Point is setting a new benchmark.”
Allan Burgoyne, Resident Director for Dale Capital, who have now purchased the Shelley Point Hotel, Spa and Country Club, said that they plan to sell roughly half of the 80 units under sectional title at prices from R1 million to R1,4 million. The sales campaign will be launched soon.
For further information contact Allan Burgoyne on 082 929 6882 or email allanb@dale-capital.com.
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10 August 2009, 10:16:13
Rawson Bergvliet franchise proves that commission cutting and mandate sharing not essential in a dedicated team
One of the Rawson Group’s most successful agencies, Bergvliet, owned and run by John Weston, has, it seems, proved that if you give real service, there is no need to drop your commission – and you can insist that you handle all mandates on an exclusive sales basis.
Writing for the Rawson in-house magazine, Weston said that, on reviewing their efforts two years ago, he and his team felt that they were putting so much time and money into every sale that there was absolutely no need for them to cut commissions – and most clients, accepting their dedication, were happy to sign a sole mandate agreement.
Weston also started turning down mandates where the client insisted on radical overpricing.
The formula, said Weston, has proved successful. Sales last year were 20% up and this year is likely to see a similar improvement.
Explaining where he is “coming from” Weston said that he and his colleagues aim to establish a completely Christian, 100% ethical agency in which the clients’ interests will always be put ahead of their own.
This, he said, involves their learning to act as “consultants” not as “sales agents”.
“Our first goal is to do what is best for the client – this could involve helping a desperate seller to hold onto rather then to sell his home or persuading him to help his offspring finance a new home now rather than after his death. It also involves taking immense care with bond applications to see that they conform to National Credit Act criteria – 90% of our bond applications are successful and many clients are getting 85 or 90% bonds.”
Weston’s team operate throughout Bergvliet, Meadowridge, Diep River, Heathfield, Plumstead and Southfield. The wide diversity of homes in this area, he said, enables him to serve the upwardly mobile and the downscalers in a price bracket of R400 000 to R5 million plus.
For further information contact John Weston on 021 715 5674 or email bergvliet@rawsonrproperties.com.
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07 August 2009, 09:57:40
Homes in the affordable sector of the market are selling readily in Springs on the East Rand in spite of continuing problems with obtaining bonds.
Elizabeth Masemola, who recently opened a RealNet agency in the town, reports that there is particularly healthy demand for properties costing less than R500 000 but that properties across the price spectrum are still drawing buyers.
Masemola, who has been active in Springs for the past six years as an agent with two different real estate groups, decided to open her own franchise, encouraged by her stellar sales performance in the area. Her decision was vindicated within the first month of opening when her office sold a total of 17 units, followed by 13 more the second month.
“Although the RealNet brand is relatively unknown in this area, we have made a very satisfying impact on the local market and expect to push up our performance as we become better known,” says Masemola. “We are already seeing an increase in the number of walk-in clients as well as clients referred by satisfied buyers. And bringing the brand to neighbouring towns on the East Rand is part of our longer term goal.”
Local buyers looking to get a foothold in the market are targeting affordable housing. Masemola says basic two-bedroom units in KwaThema can still be had at prices starting from about R200 000.
“Most transactions are indeed taking place in the more affordable price spectrum, but there is a sprinkling of sales in price categories up to R2m. The Springs property market is mainly supported by local buyers upgrading or entering the market thanks to lower interest rates, but buyers transferred to the East Rand by their companies are also evident,” she says.
Springs offers all the amenities of an established town and Masemola adds that it benefits from a sound infrastructure and good access to highways linking it to Johannesburg and the rest of the East Rand.
Issued by RealNet
For further information call
Elizabeth Masemola on
011 362 2788 or visit
www.realnet.co.za
Elizabeth Masemola of RealNet is selling up a storm in Springs
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07 August 2009, 08:50:40
As the “new kid on the block” among SA’s big estate agency groups, Harcourts is punching well above its weight.
“We received a high percentage of the national industry accolades at the recent Nedbank Property Professional Awards even though we have not been established long,” says CEO Martin Schultheiss, ”and while other companies are in recession mode and focusing on survival, we are continuing to expand.”
Steve Caradoc-Davies, owner of Harcourts Platinum in Somerset West, was honoured with one of only three Young Lions awards made this year, in recognition of the numerous innovations he has brought to the industry in recent years, while Dr Wllie Marais, owner of Harcourts Maxima in Pretoria, was one of just five longstanding members of the real estate industry who were honoured this year as Movers & Shakers.
“This is undoubtedly an outstanding result for a new group,” says Shultheiss, “and we know there will be even more awards forthcoming when we are more established and have really had a chance to put down roots.”
Meanwhile, he notes, the process of putting down those roots is well under way. “Harcourts continues to attract both independent agencies and disillusioned members of other real estate groups, and has added 18 brand new offices to the group since the start of the year.
“We have also now rebranded more than 30 of the old Homenet offices that formed the basis of the group, and are on track to have the whole rebrand exercise completed by March 2010.”
Harcourts Africa came into being late last year when the international Harcourts group signed a partnership agreement with long-established SA group Homenet.
However, says Schultheiss, it is not just fresh branding that appeals to the principals and agents joining the group. “It is the fact that Harcourts offers them a whole new way of doing things – a radically different approach to selling real estate, as well as advanced business systems and technologies that other local groups are unlikely to be able to duplicate for several years, if at all.
“This will enable Harcourts Africa members to hold their own in a real estate market that is already becoming much more globalised.”
ISSUED BY HARCOURTS
FOR MORE INFORMATION
CONTACT MARTIN SCHULTHEISS
ON 031 201 1060 OR VISIT
www.harcourts.co.za
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03 August 2009, 08:48:13
Cyberprop.com Weekly News Letter
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Edition 30 of 2009, Friday, 31 July 2009
Dear Reader
The property industry often reminds me of parenthood. Should
you tell harmless lies to your children? What do you tell your children
when they ask you about Santa? I believe that you don’t have
to dumb things down for children to convince them. It is in order
for them to have a good imagination. After all is that not what
is needed in today’s real estate market, a good imagination.
Let’s take two of the articles placed in today’s newsletter;
The average price of a property in South Africa increased
by 1.2% year-on-year in June, according to the latest property
price index. Residential property prices in South Africa show
year on year rise
and
House prices were forecast to decline by about 3.5 percent
in nominal terms this year after growing by 3.7 percent in 2008,
Absa analyst Jacques du Toit said in the bank's latest housing review.
Your house will be worth less by Xmas
I’m sure that you will agree with me that to understand these
two articles you have to have a good imagination.
Realesteweb - Estate agents have welcomed the decision
by some banks to offer bonds to the emerging market and are holding
out hope for further easing of banks' stringent lending policies.
Mortgage volumes are roughly half of what they were this time last
year, and last year's volumes were dramatically lower than the year
before - which gives an indication of the dire conditions being
experienced in the residential property market. According
to Ivan Neethling chairman of the Institute of Estate Agents in
the Western Cape, FNB and Absa's move to offer bonds to families
earning salaries of below R15 000 and R11 000 respectively shows
a growing confidence in the affordable market.
 Jan
Kleynhans, chief executive officer of FNB Home Loans, says
the bank's loan to value criteria, an aspect of lending policy,
have been reviewed from 85-90% to a maximum of 95% for new customers.
 Standard
Bank's residential mortgage lending criteria remains unchanged
and is constantly being reviewed, says Lasath Punyadeera, director
of Standard Bank Home Loans Product. He says Standard Bank adopted
new lending criteria in November 2008 and has not changed these
since. However, these loan-to-value criteria are constantly being
reviewed and could be revised in the future.
 Absa
says it is not relaxing its lending criteria but is looking at the
clients' affordability when assessing home loan applications.
Absa clients are granted up to 85% loans and non-Absa clients 70%,
says Luthando Vutula, Absa Home Loans managing executive. Absa customers,
therefore, pay a deposit of 15% and non-Absa customers pay 30% deposit
in order to secure a home loan.
 Clive
van Horen, managing executive for retail secured lending at Nedbank
Home Loans, says: "Nedbank is conscious of the interplay
between banks' willingness to lend and property prices, and so we
remain open for business but with a relatively cautious stance."
The Musina tribe discovered copper and settled here. In the 20th
century European prospectors rediscovered the large copper deposits
and established the town of Messina. The spelling of the name was
changed to Musina in 2003 to correct the colonial-era misspelling
of the name of the Musina people. Musina is situated in the lovely
Limpopo Valley, close to the border to Zimbabwe. Sub-tropical climate,
in the midst of game and nature reserves, this is an ultimate destination
for a traveller in Southern Africa. Focus on Musina, Limpopo,
South Africa
Enjoy!
The editors
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31 July 2009, 08:17:51
The recently-established Chas Everitt International franchise in Pretoria East is now expanding its operation into Akasia to cover the metro’s northern suburbs.
That’s the news from co-owner Christo Steyn, who says market prospects are good in areas such as Karen Park, Orchards, Chantelle, Rosslyn, Soshanguve, Amandasig, Heatherdale and Hestea Park.
“Stock is plentiful and we already have a foot in the door here. We are currently marketing two developments in the northern suburbs and four of our agents are currently operating in the area, so we decided the time had come to open a local office.”
The first of the developments being marketed is in Rosslyn close to the BMW and Nissan vehicle plants. Named N’kwe (meaning leopard), this affordable housing project offers 841 two, three and four-bedroom homes in a gated estate. About 600 have already been sold at prices between R400 000 and R750 000.
The other development now selling is Summer Place in Wintersnest. Aimed at middle-income earners, it features two-bedroom sectional title units complete with high quality finishes, at prices from R550 000.
Steyn’s team will soon also be marketing two more residential developments in the northern suburbs that are due to be completed in 2010.
ISSUED BY
CHAS EVERITT INTERNATIONAL
FOR MORE INFORMATION CALL
CHRISTO STEYN ON
012 369 9040 OR VISIT
www.everitt.co.za
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31 July 2009, 08:16:24
Rawson’s northern region on the hunt for 15 new franchisees
Rawson Properties Northern Region, run by director Sean McCauley, now has over 40 franchises, some in adjacent provinces but most in Gauteng - and they plan to establish another 15 by the end of March 2010.
"The good news," says McCauley,” is that we have an exceptionally high franchise success rate. We are becoming more and more proficient at identifying those with the ability to succeed in real estate.”
Rawson Properties, he said, is now one of the fastest (if not the fastest) growing real estate brands in South-Africa. This is shown in the results of the 2008 real estate franchise survey conducted by a specialist franchising company, which revealed that the average real estate company opened six new business units during the year, whereas we opened in excess of 20 units.”
Rawsons, said McCauley, is expanding at a rate three times faster than that of the average real estate company.
In the year ahead, he said, those with the right credentials and enthusiasm could make some excellent franchise buys: especially in the Sandton CBD, Edenvale and many of the northern suburbs where Rawsons still has territories they wish to service and where property values are now on an upward path.
“The Rawson group prides itself on giving a more comprehensive franchisee backup service than most (with user-friendly, easy to understand computer systems) and is, said McCauley, particularly strong right now on training for the National Qualifications Framework four and five levels for agents and franchisees respectively.
The group, he added, has developed an “agent portal” and a Rawson agents’ Property Transfer Information System, by means of which, using his password, any agent can keep up to date with the group’s and his own stock position and can access Deeds Office information throughout South Africa – one of the several innovative “tools” which assist the agent greatly in doing valuations and tracking owners.
Other big advantages of signing as a Rawson franchisee, said McCauley, are that both the northern and southern regions have dedicated business development managers available 24 hours a day to advise and assist franchisees. The group also has its own bond origination division (Rawson Finance) which, working strictly to bank criteria, has a better-than-average success rate in securing bonds.
Finally, said McCauley, Rawson’s “big step forward” in tying up with FNB on their Quick Sell Plan will enable franchisees to be helpful to homeowners in serious financial difficulty – “another very definite plus factor in the Rawson package”.
For further information contact Sean McCauley on 011 463 1092 or email sean@rawsonproperties.com
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31 July 2009, 08:15:00
The highly successful Chas Everitt International franchise serving the northern suburbs of Cape Town is now extending its reach to encompass Milnerton and the suburbs along the Atlantic Seaboard.
Franchise owner Charl Louw says a team of agents under the leadership of Ingrid le Roux will apply the experience and reputation they have gained in areas such as Century City, Goodwood, Parow, Panorama, Monte Vista, Plattekloof, Welgelegen, Edgemead and Bothasig and should shortly have significant market share in the new areas.
In addition, he anticipates taking on agents who are already established in Milnerton and the Atlantic Seaboard but need the stability and marketing clout that the Chas Everitt International group can offer.
“We are delighted to be able to extend our services to Milnerton and the Atlantic Seaboard,” he says. “We have a great track record and have managed in these tough times not only to sustain our business but also to expand our footprint in the Northern Suburbs, and we believe the new areas will benefit from our expertise.
“Our success is due in large part to pricing properties correctly and carefully matching buyers and sellers. Up to 70% of home loan applications are being turned down in some areas but we are getting better results because we make a point of presenting our buyers to the banks in the best possible light.”
Louw says that whether clients in Milnerton or the Atlantic Seaboard want to sell, buy, rent or let property, his team will provide the highest standards of service, and adds that most of his agents have completed the RPL (recognition of prior learning) requirements for the new national estate agent qualifications.
He notes that although property sales have slowed in general, more than 450 transactions have taken place in the Milnerton and Atlantic Seaboard areas over the past 12 months.
“In a nutshell, these areas are still attractive from a business and investment perspective, and a very wide price range means they can effectively offer something for everyone.”
ISSUED BY
CHAS EVERITT INTERNATIONAL
FOR MORE INFORMATION CALL
CHARL LOUW ON
021 915 4800 OR VISIT
www.everitt.co.za
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31 July 2009, 08:13:22
New interactive property previewing service will save time
Making greater use of technology in their operations their primary focus, the Rawson Properties Table View franchise has introduced to their market a computerised interactive property previewing service as a prelude to house visits and show house days.
This mapping software introduced by this franchise allows clients to view specific suitable properties and gives them details of each home in response to the client logging in their requirements.
“Many buyers are very specific as to the areas in which they wish to live – and the price they are willing to pay. This software gives them the opportunity to view the homes that meet their needs, in effect giving them a preliminary "virtual show house" drive, while still in the Rawson offices,” said Gary Claven, a co-franchisee of the Rawson Table View franchise.
The system, added Claven, saves considerable time, “a precious commodity in today’s world” and introduces to buyers many properties that they possibly would not have seen as certain sellers do not open their houses for viewing on Sundays.
“Through the SPS (Select Property Services) multi listing service,” said Claven, “we have access at any time to some 350 homes for sale in our area which encompasses Blaauwberg, Tableview, Flamingo Vlei, Parklands, Sunningdale, Big Bay and Sunset Beach.”
With the new system, he said, the client enters into the computer the basic criteria of the home he/she wants, e.g. the desired area, number of bedrooms and garages, whether or not they want a pool and similar facts. The client is then able via the computer to navigate to each property, allowing him to be more focussed and to avoid wasting time driving to properties that would not suit him.
“With the new system,” said Claven, “the entire database can be worked through in one afternoon and the agent can then make the necessary viewing appointments at times to suit the client.”
Daphney Klopper, also co-franchisee at Rawson’s Table View, says that the system is bound to increase the popularity of their agency because “it is simply revolutionary”- it can cut out days of fruitless viewing of properties. With the upswing in activity in the market now being experienced, the buyer avoids losing out on properties of which they were not aware.
Klopper added that although prices are still low, the last weeks have seen more offers closer to the asking price and recently certain sellers have had more than one offer to choose from.
“We have seen buyers miss out on their ideal home by a matter of hours – and that is another reason why this system can be so useful,” she said.
This targeted approach introduced by Table View, said Brett Boyd, award winning Rawson agent, also suits sellers who may not be able to make their property available for show days. These sellers’ homes, he said, are now included in the interactive search for the buyers to see. The system also, he said, facilitates comparative valuations because it enables the client to see how other similar homes in the area are priced.
Asked whether this system does not make an agent redundant, the Rawson team said that the agent assisting the client plays an important role in advising on additional features and options and other relevant factors which standard advertising cannot replicate.
“Adapting to the changing needs of clients and their increasing demand for information has resulted in Rawson Table View leading the industry in the new service it is offering to clients,” said Claven.
For further information visit the Rawson Table View office opposite Bayside Mall this weekend and take the opportunity to become one of the first to “test drive” this new property viewing vehicle.
This service is available at the offices of Rawson Tableview during regular show house hours, i.e. Sunday 2pm to 5pm or by appointment during the week. Contact 021 5564414 or email tableview@rawsonproperties.com
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24 July 2009, 11:54:29
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Edition 29 of 2009, Friday, 24 July 2009
Dear Reader
 The City of Johannesburg is looking at ways to finance the continues provision of public transport. One way to fund this service is to higher tax on properties where the value has risen because of the their proximity to the newly created transport infrastructure. We’ve spent R27bn on Gautrain and made some property owners very, very rich, and isn’t there an issue there?” This according to the Deputy Transport Minister Jeremy Cronin. Fair or not fair? Send your viewpoint to news@cyberprop.com
 They say two is a pair. We cover all the bases by placing two views regarding the pricing of property, be careful for overpriced property and don’t choose the price before the area;
Although it has to be admitted that the recession probably has another nine months to run, Anne Porter Knight Frank, the Claremont headquartered estate agency (with a fast growing Atlantic Seaboard branch), is finding that optimism is now returning to the residential property sector, says Lanice Steward, the company’s MD. New optimism in the market once again leads to overpricing, says APKF managing director
And
If you’re house hunting, you should carefully choose the areas you want to look in before you pick out any properties. That’s the advice of Harcourts Africa CEO Martin Schultheiss, who says: “In the heat of the moment, buyers often forget that location, location and location are still the most important aspects of a property purchase. Don’t put home price before area
 The cost of parking your car in Cape Town's central business district (CBD) is almost double that of Johannesburg, according to a survey released on Wednesday. Park n Pay (lots!) And yet it is also the cheapest parking in the world; At the opposite pole, the lowest monthly parking costs can be found in Johannesburg, Durban and Pretoria, all in South Africa. Colliers: Parking place in Bucharest costs more than in Berlin or Lisbon
 What’s happening in the Clarens property market? We have experienced a renewed interest in the property market in Clarens over the past few months and feel positive about the future, especially with 2010 around the corner. Clarens is a tourist hotspot. After Cape Town and Kruger National Park, Clarens ranks as the third most visited area in South Africa. Read more in Focus on, Clarens, Free State, South Africa
Enjoy!
The editors
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23 July 2009, 12:11:36
Office bearers of the Institute of Estate Agents (IEASA) made a strong showing in the line-up of industry winners at the Nedbank Property Association Awards at the weekend.
Three national directors were named Movers & Shakers in the industry, while a national director and a regional director were among the finalists for the Property Professional of the Year award.
The three Movers & Shakers are IEASA national president Dr Willie Marais, and national directors Tjaart van der Walt and Sindile Faku. Kerry Warburg, a national as well as regional director, and regional director Werner Eksteen were among the finalists in the Property Professional category.
Marais says it is very pleasing that serving members of the IEASA were recognised at the awards. "This is the first time in many years that IEASA has made a showing at the awards, a forum that gives national recognition to estate agents and other roleplayers for their contributions to the well being of the industry.
"And in this respect, it is especially pleasing that three of the eight national Movers & Shakers awards this year were made to IEASA directors."
Marais, whose main achievement since being appointed national president of IEASA in 2006 is the unification of the real estate industry, says the recognition given by the Property Association to serving IEASA members is a great step forward in achieving still closer co-operation within the industry.
"This augers well for an industry that has to face many challenges. Closer co-operation will strengthen it and enhance the professional image of estate agents."
IEASA was recently restructured in terms of the Labour Act and the Services SETA to enhance its role as a viable and growing professional representative body. It is also enjoying growing international recognition due to the achievements of the local estate agency profession and through its affiliation with international real estate bodies such as the National Association of Realtors in the US and the International Consortium of Real Estate Associations.
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22 July 2009, 12:09:01
Home repossessions are everybody's business, so even those who are not feeling the pinch of unemployment or a strained household budget should welcome and encourage any measures taken by the banks to help those homeowners who are in distress.
So says Colleen Gray, MD of CENTURY 21 in South Africa, who notes that the major banks have moved relatively fast in this recession to introduce some anti-repossession measures.
Apart from a readiness to negotiate with homeowners in trouble and reschedule their debt, these measures include bringing estate agents and auctioneers on board to help sell properties in danger of being repossessed, so that their owners are not left with no home and a huge debt to pay, and also offering home loans on favourable terms to the buyers of distressed properties.
"And they are not before time," she notes, "because estimates are that at least 1000 homes a month are already being repossessed - a phenomenon that threatens to place a major drag on overall market recovery, with all those homes adding to the inventory that has to be mopped up before prices can start to rise again and banks can ease their home loan restrictions."
As it is, Gray says, one of the biggest factors currently holding banks back from granting new home loans is the fear that the properties which secure those loans may not be able to hold their value - especially if the incidence of default and repossession rises.
"They know only too well that repossessions also affect the value of surrounding properties, and while there are no SA figures available to show this, one can gauge the scale of the possible effect on the overall market from recent figures released by the US Centre for Responsible Lending.
"These show that every repossessed or foreclosed property reduces the value of neighbouring properties by $7200 each (about R57 000), for two reasons.
"The first is that owners who cannot afford their bond repayments usually also cannot afford to maintain their homes, and that properties in disrepair lower the tone of the area and the home prices that prospective buyers are willing to pay. The second reason is that homes auctioned off by the banks at less than market value lower the average price for the area going forward."
Consequently, she says, it is critical that banks do not let repossessions get out of hand as they did in the late Nineties, and all property owners and investors should welcome their proactive stance this time around. "This will, we believe, assist the property market to begin recovery in line with a general economic recovery next year."
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21 July 2009, 12:03:44
Sellers have repeatedly been exhorted in recent months to keep market conditions in mind when setting property prices - but now it is buyers' turn to a swallow a spoonful of reality.
This is the view of Tjaart van der Walt, CEO of the RealNet property group. "Much has been said about educating sellers to drop their prices in order to achieve sales in the current market. But buyers also need to be educated," he says.
Consumers who want to take advantage of the current market and buy property now are advised to keep their acquisitions modest. Van der Walt says this is not the time for consumers to stretch themselves financially and suggests that buyers target properties costing about 25% less than the maximum bond they would qualify for.
"Not only is it easier to obtain a home loan when you can show that you are buying well within your abilities, but it will be that much easier to keep up with your bond repayments. In the second place, a lower monthly bond instalment will give buyers the choice of paying slightly more than required.
"And paying even a relatively modest additional amount on a home loan every month saves an impressive amount on interest over the lifetime of the loan. For most average homebuyers, this is probably the single most effective way of saving a substantial amount of money over the long term."
On the other hand, he says, buyers who elect not to pay more than the minimum instalment will have the advantage of better cash flow - and reserve capacity is no small matter in the current uncertain times.
"Having a bit of money in reserve every month lessens the likelihood that consumers will be wrong-footed by increases in food or fuel costs, or even rising interest rates. We are living in stressful times where everyone should reconsider their lifestyles and aim to live more simply and less expensively.
"It is indeed a good time to buy small - and enjoy peace of mind."
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20 July 2009, 12:07:39
The Amanzimtoti area of the KwaZulu-Natal south coast is seeing increased movement in the residential property market and a flurry of activity among cash buyers reports Terry Cousins, Pam Golding Properties area principal. The rentals market is also showing steady movement.
"We are experiencing a resurgence of buyers in the holiday homes market, with most of these being cash buyers mainly in the price range from R1.1-R1.3 million. These are mostly out of town purchasers from Gauteng, who feel the market is at a point where they can capitalise on the good buys available before the market turns and prices start rising once more," says Cousins.
"At present such buyers are securing excellent value for money, acquiring front row beachfront homes comprising three bedrooms and two bathrooms - along prime Beach Road - for these prices. Interestingly at the lower end of the market in the R450 000 / R500 000 price bracket there are also buyers paying cash or with high cash equity. For these prices you can buy a two bedroom, one bathroom townhouse in the Amanzimtoti or Berea areas."
"There's also an upturn in enquiries from local buyers seeking primary residences in the R1.5-R3 million price range. Many of these have been renting homes and now wish to acquire their own home at a time when they can benefit from lower prices."
Cousins says being holiday season at present the area is buzzing with visitors. "However most of our enquiries are either off the Internet or showboards rather than 'walk-in's'. The positive news is that our agents are very busy with enquiries once more and the fact that the new Galleria shopping centre is soon to open is further boosting interest in the area." He says a new trend noted is a demand from those currently residing in areas such as Isipingo who wish to upgrade to areas such as Athlone Park.
He adds the long term rentals market is showing a marked improvement with PGP's office seeing a 30 percent increase in units let compared with six months ago. "While the average enquiry is for a home in the region of R4 000 per month, we are also seeing a good demand for upmarket homes and have recently concluded a number of leases for three bedroom homes in the R12 500-R15 000 per month price range, as well as a four bedroom home let for R16 000 a month. One of these is a three bedroom apartment in Lagoon Point, one of the more upmarket buildings, let for R15 000 per month."
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17 July 2009, 12:22:24
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Greeff properties expand to take in the Atlantic seaboard
The Greeff Properties network carefully nurtured since their foundation in 2001, is being expanded to take in the Atlantic Seaboard, the City Bowl and Hout Bay.
Marion Taylor, formerly principal in these areas for a large estate agency with international connections, has signed on with Greeff to operate under his banner – and has brought 12 of her agents with her, including her Hout Bay manager, Gerald Romanovsky and her City Bowl manager, Tristan McLennan, who will hold the same positions in the new setup. Marion Taylor herself will run Greeff’s new Camps Bay office.
“We have to stress,” said Mike Greeff, CEO of Greeff Properties, “that we are not growing for growth’s sake. We always have been a niche operation and we will continue to be so in these areas. The only difference is that Marion Taylor will provide the hands-on management here rather than myself and our MD, Graham Leslie – with us taking over some of the administrative burden and monitoring the whole exercise.”
Marion Taylor said that this suited her well because she has always known that her strengths lie on the selling side, which she prefers and which has been where she has been most successful.
The three offices run by Marion Taylor together average approximately half the sales that Greeff achieves in his Southern Suburbs operations – but, says Greeff, the potential to grow this new side of the Greeff operation is good.
Taylor said that, after deciding it was time to move on from her previous brand, she had had little difficultly in selecting Greeff for a new tie-up.
“They have had phenomenal growth in the nine years since starting. This, I believe, is due to the enthusiasm and professionalism with which they tackle their tasks. They have an exceptionally good reputation and it is a privilege to be able to tie up with them.”
Greeff was equally complimentary about Taylor, pointing out that in over 30 years in property, she has always been successful.
“She is the type of person we like to associate with – open, transparent and highly motivated”, he said.
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The new deal was effective from 2 July 2009.
For further information contact Mike Greeff on 021 763 4120 or 083 679 1809. |
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17 July 2009, 11:50:41
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Edition 28 of 2009, Friday, 17 July 2009
Dear Reader
So do I regret owning a home? Heck, no. It’s not a get-rich scheme. Owning a home has given my family a series of anchors to cling to as we’ve moved around the country for my job. And paying down a mortgage is a form of forced savings, which should help us in retirement. I estimate close to a 10% loss on our investment since we bought it last year. That’s the brutal financial reality of home ownership in today’s market. But the consolation is this: I really like our house, our neighbours and the quaint suburban town where we’re now putting down roots. In other words, I’m happy being a tenant in this building I happen to own. Does this sound like you? Home Ownership was never a road to riches
Still in the news this week, FNB;
 The decision by certain South African banks to offer bonds to the emerging market is welcome, says Ivan Neethling, Chairman of the Western Cape branch of the Institute of Estate Agents - but it should raise questions about the banks’ policies on bonds in general, he says. Neethling was commenting on FNB’s decision to offer bonds to individuals or families whose monthly earnings are below R15 000 and ABSA’s decision to make bonds available to those earning below R11 000. Hopes grow as emerging markets gain access to bonds
 A mild recovery in residential property demand from late last year is continuing, shows the FNB Residential Property Barometer survey released on Wednesday. But don't get too excited at this stage, warned FNB Home Loans strategist John Loos. Recovery! Kind of…
 The revival of the residential property sector has been held back by the banks’ reluctance or inability to fund bonds on their previous scale – but there are, says Lanice Steward, MD of Anne Porter Knight Frank, now signs that the situation is changing gradually.“FNB,” said Steward, “is now offering 95% bonds to certain qualified buyers. This will be a big help to the market as a whole.” FNB’s 95% bonds to selected buyers could be the catalyst that the residential sector needs, says Lanice Steward
 “The FNB Quick Sell Plan (QSP),” says Tony Clarke, MD of Rawson Properties, “enables distressed homeowners to sell their properties – voluntarily – in the shortest possible time and to move forward, clear of a debt burden that they can no longer service. It greatly reduces the time and expense of the usual recovery processes.” Rawson Properties join FNB in their innovative programme to assist financially stressed home owners
Also read what one of our readers Kevin Harris from Colliers Sell Sure East London has to say; To the editor
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The editors
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17 July 2009, 09:09:44
Four Homenet branches in the southern Cape have become the latest to convert to the Harcourts brand.
This follows last year’s partnership deal between Harcourts International and South Africa’s Homenet group, which has now been renamed Harcourts Africa and is in the process of re-branding all its offices around the country.
The Homenet Trio offices in Mossel Bay, Hartenbos and Great Brak River as well as Homenet Stillbaai have now all converted and Marlene Tait, general manager of the new Harcourts Trio branches, says the change is a pivotal move that will elevate the local real estate group into the international property sphere.
“Harcourts has 120 years of industry experience and has ties with a number of international markets. I am particularly looking forward to taking advantage of their extensive referral network.
“An alliance with such a prominent international company will do wonders for our exposure and will undoubtedly up our game considerably. Certainly the change has already had a palpable effect on our agents”.
Esté Maree, principal of Harcourts Stillbaai, believes that given the current state of the economy and property market, the rebranding will gain the respect of the property industry and public in general.
“At a time when most companies are retrenching workers and cutting corners, Harcourts is doing just the opposite through expanding and injecting new blood into a somewhat stale property industry. This speaks volumes about Harcourt’s confidence in our abilities and that will be noticed. What is more is that our clients will experience the benefits of our far superior, value-added service”.
Already the fastest growing real estate group in Australia and the biggest in New Zealand, Harcourts also operates in China, Fiji, Indonesia, Singapore and Zambia and has been rated by world real estate authority Stefan Swanepoel as one of the top five international real estate brands.
It currently has more than 600 offices employing 4000 sales consultants, and sells more than $19,5bn worth of property every year.
ISSUED BY HARCOURTS AFRICA
FOR MORE INFORMATION
CONTACT MARTIN SCHULTHEISS
ON 031-201-1060 OR VISIT
www.harcourts.co.za
Distributed by/ versprei deur
The Mega/ Press Network
Pse direct any enquiries to
012-333-6644,
073-946-9649 or
megw@telkomsa.net
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17 July 2009, 09:08:17
Colleague praises bill Rawson’s investment advice
With arguments being tossed back and forth on whether or not this is the right time to be investing in residential property, it was interesting to hear a colleague of the Rawson Group who has had 16 years association with them, tell a gathering of new franchisees that he had faithfully followed Bill Rawson's advice columns in the Cape press and had from 2003 to 2007 invested in five residential properties, all of which had been in new developments. Most had, too, been conceived, developed and marketed by Rawson Developers with the original prices being from R259 000 to R500 000.
All of these units, he said, had appreciated at approximately 12% per annum, with the result that they are now giving rentals totalling close on R12 000 per month – with plus-minus R3 000 per month being deducted for levy costs, rates taxes, administration fees, repairs and maintenance and other items.
The colleague added that he had also taken Rawson's advice on paying above the stipulated monthly bond rate whenever he could, usually by at least 15%, sometimes more. The amounts still owing, said the colleague, are now relatively insignificant – and the "profit" is now in the region of R7 000 per month – and still growing.
"The moral of the story," said Rawson's colleague, "is that, although price rises from now on are unlikely to be as high as they were in the boom period and appreciation will therefore slow down, I can nevertheless recommend anyone looking for a safe, long-term investment to take Rawson's advice and get into the market now. He has repeatedly said that the present is an excellent time to buy and, as this is proved valid in the past, is there any reason why we should not trust him now?"
Asked if a sensible selection of shares on the JSE might not have given a better overall return, the colleague said that, while this is possibly true, the average monthly paid employee simply does not have the information and insight to choose a really good portfolio of stocks and shares.
"I myself did well, in a small way, with WBHO and M&R shares – but the gains here were offset by the substantial recent decline in the value of certain other shares and unit trusts, many of which last year lost up to 60% of their value. In any case, the returns from such shares are not paid monthly and it is a monthly income that I'm trying to build up."
Tony Clarke , MD of Rawson Properties, commented that he too had invested steadily in property over the years and could testify in that his returns had been wholly satisfactory.
For further information contact Bill Rawson on 021 658 7100 or email bill@rawsonproperties.com.
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17 July 2009, 09:01:21
The international real estate group Harcourts has now opened an office to serve the northern suburbs of Johannesburg, including Bryanston, Fourways, Lonehill, Douglasdale and Paulshof.
Named Harcourts Lifestyle Properties and located in Olivedale, the office is headed up by John Bradford, Gavin Fairon and John Constable, who collectively have 30 years of property industry experience.
Bradford and Fairon were running an independent operation until recently, when they decided to join Harcourts Africa because of the strength of the group’s value proposition. Constable was then brought on board, having just returned from a year-long construction sojourn in Dubai.
Bradford will be general manager of the new operation, Fairon will be the business and financial manager and Constable will be operations manager.
The new office opening follows last year’s partnership deal between Harcourts International and South Africa’s Homenet group, which has now been renamed Harcourts Africa and is attracting many new members around the country.
Bradford says Harcourt’s experience, integrity, training and value systems will set Harcourts Africa apart. “Harcourts is injecting much needed energy into the local property industry and its ‘people first’ ethos instils and consolidates the belief that it is not just a ‘sell and run’ setup. These factors, coupled with the fact that we also hold integrity, commitment and customer relations paramount in our own operations made the move an obvious one for us”.
Fairon and Constable appreciate the fact that Harcourts is a tried and tested, well established company that employs meaningful structures, controls and disciplines. They add that every aspect of its operations is compartmentalised and streamlined for maximum efficiency, which makes for a winning formula.
Anticipating growth, Harcourts Lifestyle Properties is already on a recruitment drive and aiming to employ up to 15 agents. The management team say applicants should embody the ‘four Es’ – that is enthusiasm, enterprise, energy and efficiency. Technological proficiency is also preferable, adds Bradford.
Harcourts is the fastest growing real estate group in Australia and the biggest in New Zealand. It also operates in China, Fiji, Indonesia, Singapore and Zambia and has been rated by world real estate authority Stefan Swanepoel as one of the top five international real estate brands.
It currently has more than 600 offices employing 4000 sales consultants, and sells more than $19,5bn worth of property every year.
ISSUED BY HARCOURTS AFRICA
FOR MORE INFORMATION
CONTACT JOHN BRADFORD
ON 083 268 0882 OR VISIT
www.harcourts.co.za
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Pse direct any enquiries to
012-333-6644,
073-946-9649 or
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16 July 2009, 15:51:20
South Africa's national planning minister, Trevor Manuel, said on Tuesday that the approach to price stability in South Africa via inflation targeting must not be abandoned just because it is difficult to achieve.
"Price stability is a constitutional imperative, and a mandate has been given to the central bank in the form of inflation targeting," he said.
Manuel was launching his first five-year plan as planning minister, called the medium-term strategic framework.
"In managing this, the Reserve Bank is outside of the [3-6 percent] the approach to price stability in South Africa via inflation targeting must not be abandoned just because it is difficult to achieve target, but the objective remains. We don't abandon the approach because it is difficult to obtain and at the same time don't say get back into target come hell or high water," he said.
Manuel said an approach like that could have the opposite effect of weakening the economy and deepening the recession.
"I am satisfied the Reserve Bank has demonstrated a reasonable mind," concluded Manuel.
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15 July 2009, 15:48:15
In response to the global recession which has impacted severely on South African residential property, FNB has come up with a new home loan Debt Remedy Programme designed to help customers who are experiencing financial difficulties and struggling to repay their mortgage bonds.
"The FNB Quick Sell Plan (QSP)," says Tony Clarke, MD of Rawson Properties, "enables distressed homeowners to sell their properties — voluntarily — in the shortest possible time and to move forward, clear of a debt burden that they can no longer service. It greatly reduces the time and expense of the usual recovery processes."
Potential homeowners who agree to the QSP are asked to sign a customer mandate to provide the chosen estate agency with relevant information on the home, to allow access to FNB’s appointed estate agents and to potential buyers. The home is then marketed and sold in the quickest possible time at the best possible price. In addition, once the a sale is secured, FNB Home Loans undertakes to execute a quick and efficient transfer of the property.
If an offer is accepted but there is a shortfall between the offer and the amount still owed to the bank on the home loan account, a repayment term of up to 20 years can be negotiated between the customer and the bank for the outstanding settlement amount.
Clarke said that FNB is confident that the QSP will prove beneficial countrywide.
"FNB has," he said, "made the QSP attractive to potential buyers by offering those who qualify up to 100 percent bonds on houses acquired through this programme and by cutting the transfer costs and registration fees by 50 percent. The system, I feel, is bound to attract qualified buyers through the wide network of FNB nominated agents. Furthermore, FNB’s legal and financial consultants will be on hand to ensure a trouble-free experience for the seller.
"I do seriously advise those in financial difficulty (which these days very often come about through no fault of their own) to consider QSP and to take quick action rather than to hang on in the hope that things will change. In our experience, this very seldom happens and the distressed mortgage payer gets himself deeper and deeper into debt. The time to take action is, almost without exception, now."
Rawsons, said Clarke, congratulate FNB’s management on this innovative initiative which, he said, will go a long way to ensuring that the credit worthiness of their clients is kept intact through these difficult times.
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14 July 2009, 13:17:30
Insights from the South African Property Transfer Guide (SAPTG) research team reveals changing trends in property buying that property professionals and investors should consider when formulating their respective marketing and buying strategies…
Marketing insights company Knowledge Factory has released a report based on data derived from SAPTG that highlights two of the most noteworthy current trends in the South African property market.
The financial downturn has changed buying patterns significantly. Drawing on property sales data from national figures in South Africa for the past five years, the report reveals the rise of cash sales as a percentage of total property sales.
Is this just due to the rise in repossessions or are there other factors to consider?
Additionally the report shows the steady convergence of full title and sectional title prices. This in spite of the fact that the number of sectional title units sold has suffered a greater year-on-year decline than full title units.
So what are the underlying reasons?
Knowledge Factory’s Dieter Deppisch, Property Data Research National Manager, will be discusses these trends in detail...
Trend 1: Cash is king
The first trend that stands out when reviewing the data is that 'cash sales' — defined as transactions where no bond was registered at the time of transfer — are increasing as a percentage of total sales year-on-year. From a high in the 2003/2004 period, cash sales steadily declined as a percentage of total sales over the next five years. However, this trend started reversing in the period 2006/2007 and cash sales of full title and sectional title properties rose to 33 percent or one in three sales during 2008/2009. 35 percent of all sales of full title properties were cash compared to 30 percent of all sectional titles. In addition, a considerable 35 percent of the total Rand value of all transactions accounted for were cash sales.
Dieter Deppisch, who heads property data research at SAPTG, highlights the introduction of the National Credit Act (NCA) in June 2007 as a catalyst for the decrease in the ratio of bonded sales to cash sales. "As expected, the introduction of the NCA and subsequent tighter lending criteria has driven cash sales upward as a percentage of all sales," Deppisch confirms. "Many people who could obtain financial assistance for their property purchases in the past are now excluded. According to the largest bond originator in South Africa, only one out of two (50.5 percent) potential buyers applying for bonds are currently being approved."
Other reasons for the rise in cash sales as a percentage are, predictably, related to the current financial crisis. "With repossessions on the rise the fortunate few with sufficient liquidity are picking up bargains at auctions," Deppisch observes. "Property is also an increasingly attractive asset class for investors disappointed by recent poor returns in the equity market and other investment classes. Property, while no get-rich-quick-scheme, is being favoured as a 'safe haven' that will yield healthy returns in the long term."
Deppisch also believes the trend is being magnified by the growing numbers of estate agents that are responding to the market downturn, tight lending criteria and high bond decline-ratio by actively targeting cash buyers.
Trend 2: Sectional title prices rising
The second trend is the convergence of sectional title and full title property prices, confounding the common logic that apartments and townhouses are simply entry-level buys. According to SAPTG data, which tracks the median price trend, the two price medians have been getting steadily closer since 2004/2005. In that year the median prices of full title and sectional title were separated by R61 435, in subsequent periods by R50 000 then R32 000 then R16 000 and finally at the end of 2008 they crossed over, with the median sectional title value actually R20 000 more than their full title counterparts.
This does not mean that sectional title is now the most popular property type. Overall the volume of sectional title units sold has declined at a rate more rapid than that of full title properties. While SAPTG research indicates a 34 percent decline year-on-year in full title it shows a 36 percent decline in sectional title (footnote: properties within the R200 000 and R5-million range between April 2007 and March 2008 and the corresponding period in 2008/2009).
The converging effect then has been in rand value. What has stimulated the positive growth in sectional title prices and the negative growth in full title prices?
Recessionary economic drivers are contributing factors, as Deppisch elaborates. "We have seen a rise in the debt-to-disposable-income ratio over the past two years. Many buyers have responded to pressure on their household budgets by purchasing smaller living spaces that are perceived to be cheaper, offer value for money and are less costly to maintain," he explains. "These changes are also part of larger shifts in lifestyle as buyers opt to move closer to their places of work to save fuel costs or even to move to different suburbs in order to save face with their friends if they can no longer maintain their previous lifestyles."
Deppisch cites security as another factor. "Sectional title properties are perceived to be more secure because many complexes implement centralised security measures such as 24-hour guards and secure access," he asserts, "and buyers are comforted by the notion that there is safety in numbers."
Property developers have also played a role in the rising price of sectional title properties. "They have responded to the changing demographics of buyers by upgrading finishes within sectional title units," confirms Deppisch, "which, in turn, made them an attractive option, especially for those who were downscaling and wanted to keep as many of the comforts they previously had in their full title home."
Finally, some (cautionary) good news
Conceding that the property market has, in many respects, suffered the brunt of the financial crisis, Deppisch concludes on an upbeat note. "The significant decline in insolvencies growth, decreasing debt-to-income-ratio, expansion in the retail sector, strong public-sector spending, falling inflation, low interest rates boosted by the 2010 positive sentiment will generate in property buyers, indicates a bottoming out in the current cycle."
However, he maintains: "While we are not out of the woods yet, given reduced tax revenue, job losses and volatile commodity prices adding to a list of ongoing risks, it does mean that we can anticipate that the situation won’t deteriorate any further. Buyers remain skittish and it may take six months or more for the impact of lower interest rates to filter through to the real-estate market in general. Indeed we expect the cyclical movement to a seller’s market to begin in the first quarter of 2010. Meanwhile cash buyers will continue to benefit from lower property prices as many sellers still drown in debt. Prudent management of personal finances has never been more necessary given the ongoing risks we face in this unfolding drama we call the South African economy!"
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13 July 2009, 13:03:55
Question:
I own a sectional title unit in Lonehill. Each home has a garage and a carport. My garage has very bad damp. I have been informed that the garage does not belong to me, but the body corporate (board of trustees) does not want to take responsibility for repairing it.
It will cost more than R5500 to fix it; am I responsible to repair this?
Answer:
You refer to the garage in question as 'my garage', but say that you have been informed that it does not belong to you. The first thing you need to do is to establish the legal nature of the garage as that will determine who is responsible for repairing and maintaining it. In a sectional title scheme there are always two and often three different types of property.
The three types of property are:
sections;
common property; and
common property subject to exclusive use rights
A section is owned exclusively by an owner to the midpoint of its dividing floors, walls and ceilings. The owner of a section is solely responsible to ensure that his or her section is maintained and repaired in a state of good repair. If the garage is a section owned by you then you will be responsible to fix the damp problem within the section. However, remember that you only own your section to the midpoint of its walls and therefore the outer half of the garage walls or its 'outer skin' and its roof are considered common property. This means that the garage consists of two different types of property, a section and a portion of common property. If the cause of the damp is a defect in the roof or the outer side of the walls, it may well be a defect in the common property that the body corporate is responsible to fix.
The common property is owned by all owners in undivided shares. The body corporate is responsible to repair and maintain the common property in a state of good repair. If the garage is entirely common property and there are no exclusive use rights over it, then it is solely the body corporate's responsibility to fix the damp problem.
Common property subject to exclusive use rights, or an exclusive use area, is an area of common property which is owned by all owners in undivided shares, but which is reserved for the use of only one owner or a number of owners exclusively.
Exclusive use rights may be shown on the scheme's sectional plan or may be contained in the rules applicable to the scheme. The exclusive use area is still an area of common property and therefore the body corporate is responsible to repair and maintain it, but it is obliged to recover the amounts it spends on that area from the owner/s entitled to use that area exclusively. Some schemes have rules in place that provide that an owner who benefits from an exclusive use right will repair and maintain the exclusive use area as if it were part of his or her section. But in the absence of such a rule, it is the body corporate's responsibility to maintain and repair the exclusive use area and to recover the costs of doing so from the owner/s entitled to the exclusive use rights.
Therefore if the garage in question is common property subject to exclusive use rights in your favour, the body corporate would be responsible to repair the damp but it would be obliged to recover the costs of repairing the damp from you.
As mentioned, however, your scheme may have rules in place which require the owners entitled to exclusive use rights to repair and maintain the exclusive use areas themselves. If this is the case in your scheme then you would be responsible for repairing the damp.
In order to ascertain the nature of the garage you should obtain a copy of your scheme's sectional plan which you can do at your local Deeds Registry or Surveyor-General’s office. You will also need to inspect the rules of your scheme which you can also obtain from your local Deeds Registry or you can request a copy of the rules from the trustees or the scheme's managing agent.
I would then advise you to employ the services of a damp expert to report on the exact source of the damp so that you can determine whether the defect is in your section, the common property or your exclusive use area.
Once you know in what type of property the defect is situated, you will know who is responsible to repair it.
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10 July 2009, 11:48:25
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Edition 27 of 2009, Friday, 10 July 2009
Dear Reader
Over the last few months we’ve reported that the banks attitude of withholding home grants are hugely to carry the blame for the poor performance of the residential sector and that the lack of credit was undermining the property market. We’ve seen cries from various of the larger property groups for the banks to come to the party and we’ve received various emails from readers requesting for the banks to do away with the required deposits.
FNB's chief executive of home loans, Jan Kleynhans, this week raised his head above the parapet to dispel what he believes are some unfair criticisms that have developed around the granting of finance for property deals. And, he gave some pointers as to what buyers, sellers and estate agents need to do to improve their prospects of finalising deals. In an article published on Realestateweb about FNB's home loan policy, Kleynhans writes that property sales remain poor and prices continue to slide because of some "deep-seated misconceptions". Property lessons from a home loan heavyweight
MR. Kleynhans, earlier this month, said that although FNB is not a dominant mortgage-granter and secures about 15 percent of the property market they are slowly increasing their share and that more than 50 percent of declined home loan applications is due to a combination of excessive debt, high living costs or poor credit records.
Will we see responses from the other banks on what FNB had to say? What is your viewpoint on what was said? Send it to news@cyberprop.com
 Tenants often labour under a misconception that their personal belongings are covered under their landlord’s insurance cover for the property. So says Berry Everitt, CEO of the Chas Everitt International property group, who notes that the confusion usually arises because the insurance policy on the property owner’s bricks-and-mortar may well cover damage to a tenant’s belongings if that damage is caused by something that went wrong with the building itself – a burst geyser, for example. One of the tips he shares is to get at least three quotes from different companies. Tenants need to insure their own belongings
Dear Mr Thorne,
 It has come to our attention through complaints by other tenants at the building that you have a dog at your premises. Under the agreement you signed as part of the Strata, animals are not permitted.
Please call or email me to discuss this matter as soon as possible.
Yours sincerely,
Does this sound familiar? Read more in No pets allowed?!
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The editors
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10 July 2009, 08:40:09
The international Harcourts real estate group will shortly have two offices open in Germiston, thanks to the rebranding of the Homenet Full Circle and Homenet Heloman agencies.
This follows last year’s partnership deal between Harcourts International and South Africa’s Homenet group, which has now been renamed Harcourts Africa and is in the process of re-branding all its offices around the country.
Simon John Smith, principal of Harcourts Full Circle in Lambton, says the conversion is very exciting and that the new technologies that Harcourts has implemented will greatly enhance operations.
“Technology is definitely the way forward and Harcourts has pioneered a number of firsts in this field. It was the first real estate organisation in New Zealand, where it originated, to upload listings to its own website and the first to develop a fully online programme for its offices to manage their business. Most recently it was the first to upload all of its listings to Google”.
Smith has been in the property industry for six years and his agency employs 10 sales agents, three of whom have already qualified through the Harcourts Training Academy and the rest of whom will soon follow suit, he says.
Leonora Swart, who heads up Harcourts Heloman, says the Harcourts group offers a winning formula which will quickly gain a following in South Africa.
“The Harcourts philosophy of people first, doing the right thing, being courageous and having fun resonates with many and will no doubt provide much encouragement in these difficult economic times.”
At present, four agents are currently working for Swart, one of whom has already qualified through the Harcourts Training Academy.
Harcourts is the fastest growing real estate group in Australia and the biggest in New Zealand. It also operates in China, Fiji, Indonesia, Singapore and Zambia and has been rated by world real estate authority Stefan Swanepoel as one of the top five international real estate brands.
It currently has more than 600 offices employing 4000 sales consultants, and sells more than $19,5bn worth of property every year.
ISSUED BY HARCOURTS AFRICA
FOR MORE INFORMATION
CONTACT MARTIN SCHULTHEISS
ON 031-201-1060 OR VISIT
www.harcourts.co.za
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10 July 2009, 08:38:28
One of Hermanus’ most opulent mansions comes onto the market
A home which Rawson Properties agent Wayne Albutt has described as one of the top ten in Hermanus - and quite probably, in fact, one of the top five - has come onto the market at a price of R33 million.
Situated in Fernkloof with beautiful views of both the surrounding mountains and the sea and close to the golf course, the home was built some 20 years ago by the semi-precious stones entrepreneur, the late Hannes Kleynhans, whose business operated across the length and breadth of Southern Africa.
Albutt said recently that, although almost two decades old, the home is still one of the most modern and sophisticated in Hermanus and certainly one of the most opulently finished. Its three floor areas cover a staggering 2,095m2. The upper (second) floor has four bedrooms with the master bedroom being exceptionally large.
The living areas and the study are also very large. The home also has a separate guest cottage (or staff accommodation) with two further bedrooms, a kitchen and a living room.
The north and south façades have extensive full-length glazing and open up the views mentioned above.
In addition to spacious living, dining, reception and family areas, the ground and lower ground floors have a wine cellar, a bar/pool room, a sauna, an extra bathroom and a many patios. On the first floor there is also a fully equipped gymnasium.
Being involved in the stone mining industry, Kleynhans was, said Albutt, able to source and install quality stone finishes on the floors and countertops. There is over 700m2 of Namibian white marble flooring in the home. The banister of the staircase and various other indoor and outdoor features (including many of the doorknobs) have been custom made from semi-precious stone.
The garage can take four vehicles and a large boat or caravan and there are two large storage areas in excess of 200m2.
The grounds are extensive, their size complementing the home. They cover 9,117m2 and Mr Kleynhans had established an attractive golf chip and putt area in one section for his own use.
Albutt said that the home would be best suited to a captain of industry with a family coming from the same mould as Hannes Kleynhans, particularly if such a person has a liking for large scale entertainment, golf, fishing and mountain walks.
For further information contact Wayne Albutt on 028 313 1870 or email hermanus@rawsonproperties.com.
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10 July 2009, 08:37:22
Flagship home at Shelley point on the market
A home that is almost certainly the most luxurious and upmarket on the Cape West Coast has come onto the market at a price of R12,5 million.
Sited facing north-east onto Stompneus Bay (part of St Helena Bay), the home is the flagship residence of the 160ha Shelley Point development – and was, in fact, conceived by Shelley Point’s owner, Gert Joubert, using as an architect Hein Gerstner who has been responsible for the overall design guidelines at Shelley Point. All external walls of the home are, therefore, white plastered and the roof is of grey-blue slate.
The home is on two storeys linked by a staircase on which all the steps are solid marble. Marble floor coverings are also much in evidence elsewhere in the home (and on the kitchen counters) and even the steps to the nearby beach are covered in attractive pale white-grey stone.
The house was completed late last year. It has four bedrooms, all en suite, and all leading to view balconies. The ground floor living/TV areas are open plan and, in addition to space for a giant dining table, have their own bar corner with seating. The ground floor patio opens onto a heated pool which also has views of the bay where whales are resident five months a year.
Claudia Strydom of the Shelley Point sales team said that in all her experience no home had ever compared with this one for the quality of fittings (including Bosch equipment in the kitchen). Many of the taps and light fittings are imported, she said.
“The exceptionally high standards throughout, she said, make the home a bargain at R12,5 million. If we were not in a recession, this home would be listed at R16 million.”
Shelley Point residents enjoy a large measure of security as the estate is bounded on three sides by the sea and on the inland boundary has security fencing. The two gates are manned 24/7. All residents have access to the estate’s nine hole golf course, tennis courts, bowling green, swimming pool, restaurant, coffee shop, spa (with qualified health consultants), gymnasium and jogging trails.
From now until late November, St Helena Bay is home to some 70 whales, making it one of the best whale watching precincts in Africa.
For further information contact Claudia Strydom on 083 441 8386 or email claudia@shelleypointdirect.com.
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10 July 2009, 08:35:13
Luxury four bedroom Bantry bay home has sea and mountain views
The value of Anne Porter Knight Frank’s connection with the UK headquartered international property group, Knight Frank, has been proved time and again, says Lanice Steward, MD of this agency and Helen Hoekstra, the new manager of APKF’s Atlantic Seaboard branch, reports that her team has regularly been given mandates to sell homes owned at the Cape by Knight Frank clients and associates.
The latest of these to come on the market is in Bantry Bay. It is an impressive ultra-modern (almost cubist) home on three levels with extensive outdoor entertainment areas. The price of R13,5 million, says Hoekstra, takes into account that the market for this type of home has dropped some 20% in the last 18 months.
“This is, therefore, a very good buy with huge potential for value growth over the next three years,” she said.
The home looks out directly onto the sea and the Twelve Apostles mountain range and has an outdoor swimming pool patio which opens out these views and links in with sun-filled open plan living and dining areas.
There are four bedrooms and four bathrooms, as well as a playroom/TV room, scullery, and double garage. The home is tiled throughout, except for the bedrooms which are luxuriously carpeted. The large kitchen, says APKF’s Sabine Ehrman, is “completely 21st Century” and is equipped with Siemens appliances.
Lanice Steward commented that this is the type of home supports her often-quoted statement that “when it comes to modern architecture, Cape Town designers are, in my opinion, better than most of their UK and European colleagues”.
“Sited on the French Riviera this home would be selling not for R13,5 million but for at least double that amount,” said Hoekstra.
For further information contact Helen Hoekstra on 021 434 3517 or email atlanticseaboard@anneporter.co.za.
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09 July 2009, 15:56:18
Angola's capital Luanda has again been rated the most expensive city in the world for expat workers, followed by Tokyo, according to a survey published Wednesday.
The latest Cost of Living Survey by human resources consultancy ECA International saw Luanda maintain top spot on the world priciest locations for foreigners, while Maseru in the small mountain state Lesotho was the cheapest.
The next three cities in the ranking after Luanda and Tokyo were all in Japan — Nagoya, Yokohama and Kobe — according to the report.
Oil rich Angola's has enjoyed an unprecedented economic boom since a 27-year civil war ended in 2002 which has attracted an influx of foreign workers.
The country's war-damaged industry and poor infrastructure means the bulk of food, construction materials and other goods have to be imported, driving up costs.
Decent Luanda apartments with water and electricity go for upwards of $15 000 a month, a basic meal out can top 100 dollars and imported European cheese sells for over 15 dollars a piece.
The high prices sit incongruously next to the rest of Angola's poverty with two thirds of the population living on less than two dollars a day.
Maintaining their position in the top ten were Copenhagen in Denmark, Oslo in Norway, Geneva and the Swiss cities of Geneva, Zurich and Basel.
ECA's cost of living data, conducted twice a year, compares a selection of 125 consumer goods and services in over 370 locations worldwide.
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08 July 2009, 15:54:10
Blouberg, an area in the Cape renowned for its great views of Table Mountain and still relatively affordable property, seems to be chartering a course towards the top rung of the property ladder.
Taking a closer look at the property market, Fanie Lategan, principal of Chas Everitt Western Seaboard, says that while sales are down on last year the market is still buoyant compared to other areas of Cape Town. "The challenge," he says, "lies with the banks’ strict credit policies meaning only about one third of home loan applications are approved."
The rental market in Blouberg is extremely buoyant. "This," says Lategan, "is due to the fact that people are struggling to get bonds, which is forcing them to rent rather than buy." He says rentals between R3000 and R5000 per month are in high demand, with homes closer to the beach renting for about R10 000 per month.
Deon Lessing, marketing director at bond originator Betterbond, agrees with Lategan saying originators are also experiencing difficulties even though they are working hard to get bonds approved. "But," says Lessing, "it is encouraging to note that the number of bonds granted by the banks is on the increase, with the ratio between bonds submitted and bonds granted steadily improving."
Average selling prices for Blouberg property on the other hand range from around R900 000 in Parklands to R2-million in Big Bay. Lategan says entry level prices are still below R500 000, but some properties close to the beach are on the market for R20-million plus.
"The contraction of the market has once again brought about more apparent value for investors and buyers," says Lessing who goes on to say that value can still be found in the market and excellent property opportunities await the astute investor.
Factors that are set to stimulate the Blouberg market even further, in Lategan’s view, include the rapid transport system currently being rolled out in the area, which he believes will have a significant impact on area and alleviate traffic problems. "It will contribute to the area’s popularity and provide easy and convenient access to the Cape Town CBD," he says.
Going forward, Lategan says that Blouberg is expected to become a natural extension of the Camps Bay, Clifton and Bantry Bay lifestyle due to its far greater affordability and location on the Atlantic Ocean.
"Blouberg/Parklands are the most significant growth areas close to the Cape Town CBD. They offer affordable property and are therefore popular with young families. Blouberg is also a popular tourist destination with spectacular views of Table Mountain and one of the best kite surfing beaches in the world," Lategan says. "I think we have seen the worst and I expect the market to turn in the latter part of the year and continue to improve substantially during 2010 — depending on the banks’ credit policy," he concludes.
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07 July 2009, 16:02:53
Banks have recently gone from offering 108 percent bonds to requiring that you have anything from a 10 percent to a 30 percent deposit and that you fund all costs related to acquiring the property from your own pocket.
On a purchase of a R1-million, with a 10 percent deposit, this translates to having approximately R150 000 available. This is with a 10 percent deposit; heaven help you if the bank insists on a larger deposit!
The crucial question is; how many young people have this kind of available cash under their mattresses?
Fortunately, some banks have had a look at this situation and came up with a workable solution to assist those who wish to purchase a home, but do not have the available funds to cover the deposit and the property-related costs.
Using your pension as security, you are now able to obtain a loan for the shortfall.
The requirements
You need to belong to a good pension scheme or provident fund.
You need to establish your withdrawal benefit currently available in the scheme.
The property must be your primary residence. This product is not suited for investment properties. It is designed to assist those who wish to purchase a home.
As per the National Credit Act (NCA) requirement, you need to be able to afford both the mortgage bond and the loan secured by the pension scheme.
Your loan needs to be repaid before you retire, resign from the scheme, sell the property or on death.
The advantages
Provided you can afford the loan and there is sufficient withdrawal benefit available, you can raise the deposit and property related costs through a pension secured loan.
The product entails two separate accounts, one being the mortgage bond and the other being the loan secured by the pension scheme.
You can have your mortgage bond at the bank that offers you the best home loan product, while you have your pension-secured loan at one of the banks that offer this product.
The home loan and pension-secured loan account don’t have to be for the same repayment term. You should repay your pension-secured loan as soon as possible, releasing the burden on your pension.
If you are married, you can use your spouse’s pension fund or yours, or both.
Many first-time home buyers will now be able to own their home. Bear in mind that this product not only affects your finances now, but right until the day you retire. Speak to a mortgage bond consultant who is well-versed in this product and who will be able to advise you accordingly.
For further information contact Tess Rodrigues of Property Factor CC on 0861 106 306 or info@propertyfactor.co.za.
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03 July 2009, 11:47:23
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Edition 26 of 2009, Friday, 03 July 2009
Dear Reader
 South Africa like so many other countries are going through tough economical times. This is not new to us. For those of you who have been following the newsletter on a regular basis will know that the real estate sector is one of the sectors that are currently experiencing the most difficult times. Home owners that are looking at selling their properties and also home owners that are looking at renting out their properties knows what I’m referring to. Unfortunately it seems that there are still not light at the end of the tunnel;
 The total number of liquidations recorded for May 2009 increased by 6.8% year-on-year from April’s 41.3% increase, data released on Monday by Statistics South Africa shows. The highest number of liquidations occurred in the financing, insurance, real estate and business services sector at 120, although this is off the 150 seen in the previous month. Next worst was wholesale and retail trade, catering and accommodation at 77, followed by manufacturing at 34. Mining and quarrying only saw one liquidation from 24 a year ago. I-Net Bridge
Days after SA Reserve Bank governor Tito Mboweni took a break from lowering South Africa's interest rates, house price data and analysis from two big banks shows property values are still falling. FNB's June house price index shows the "accelerating deflation trend remains intact" while Standard Bank's monthly property report and median house price figure confirm that the strain has not alleviated in the residential market. Unfortunately, says Standard Bank, the weakness in the market is set to continue, it said. House prices: Warnings of worse to come Residential House prices and Standard: House prices decline 4.9% y/y
With the FIFA Confederation cup now out of the way South Africans is preparing to cash in on 2010. This we see even on the “soapies” showing on national television. Is renting out your property for 2010 the right thing to do? Beware!
- Rental scams commandeer real ads from Internet
- How to cash in on property in 2010
- To the editor
In answer to last week’s newsletter, What will the impact of this decision be on the real estate industry? Eskom's 31.3 percent electricity tariff increase will have a negative effect on the commercial property industry, the SA Property Owners Association (Sapoa) said on Thursday. "The huge increase will definitely have an effect on the property industry in an economy where vacancy rates are now higher, arrears are not uncommon and many retailers are closing down," said Douw de Kock, chairman of Sapoa's energy efficiency task team. Eskom buggers property
Homes in every sector of the market in Somerset West are attracting families and investors keen to own property in this popular Western Cape town, with the majority of properties offering good value for money. That’s the word from Joan Gibb, principal of the local Chas Everitt International franchise, who says the Somerset West market has rallied well in the face of the economic crisis and property downturn in contrast to surrounding areas. In the area – Somerset West
Enjoy!
The editors
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03 July 2009, 08:55:52
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Nedbank private bank moves into new northern suburbs Johannesburg home
The Johannesburg branch of Nedbank Private Bank has become the second tenant to move into The District, a R65 million 4,500m2 office building developed by the Inframax subsidiary, Africast, in joint venture with Basil Logan.
Sited on the northern edge of Rivonia with almost direct access to the Western Bypass freeway, “The District” has already been recognised by property watchers as one of the more upmarket office complexes in Johannesburg’s northern suburbs, an area known for impressive office developments.
John Weaver, an Inframax Developments Director, said that Nedbank have signed a five year lease for 1 482m2 of space (inclusive of balconies) and 50 parking bays.
“Nedbank’s premises,” said Weaver, “add distinction to an already upmarket building.”
“The group’s corporate colour scheme,” he said, “complements the bold, contemporary look of the powerful, almost cubist, building.”
Weaver said that the Nedbank lease, together with that of Shell, will result in half of the available space at “The District” being taken up – at rentals above R100 per m2. Both, he said, are considered by Inframax as prestige clients and have set the tone for the leasing of the balance of the building.
The new building has been targeted at the corporate market, those looking for upmarket, high profile premises, but we are able to accept tenants needing as little as 250m2 and are currently in negotiations with two smaller possible tenants.
The attractions of the new building have been listed as:
- a noticeable profile, clearly visible from the Rivonia Road Extension and, as mentioned, fast access to the Western Bypass.
- an attractive design with A-grade finishes throughout, and
- a generator which will generate electricity whenever Eskom power is not available.
The District, a R65 million 4,500m2 office building developed by the Inframax subsidiary, Africast, in joint venture with Basil Logan, where Nedbank Private Bank and Shell have now signed leases.
In an earlier statement Weaver pointed out that The District development had been carried out on the last significant plot still awaiting development at Sunninghill.
“These offices,” he said, “will in time be seen as some of the most desirable in Johannesburg, especially by those who recognise that the business hub of the city is now in Sandton/Rivonia, a precinct which has the big advantages - not only of being new and attractive, but also of cutting out much of the commuting, which today’s time-conscious staff increasingly see as irksome and wholly unproductive.
For further information contact John Weaver on 021 530 5760 or email jweaver@inframax.co.za |
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03 July 2009, 08:53:05
Rawson properties khayelitsha south franchisee sets his sights on growth
Bill Rawson, Chairman of Rawson Properties, said recently that it is never easy for a new arrival to make his way and become established in residential property selling – but for those who try to do this in the townships it is five times as difficult as for those operating in areas where agencies and property trading have long been an accepted way of their lives.
“One has to congratulate those who do crack it in the townships,” said Rawson. “It takes courage and great perseverance.”
Rawsons have, in fact, been among the frontrunners in establishing franchises in previously disadvantaged areas – they have 22 such franchisees – and right now one such is showing particular promise.
This is Benedict Ngxongwana of the Khayelitsha franchise whose team, so it is said, will be achieving five to ten sales per month by the end of this year.
Ngxongwana’s association with Bill Rawson goes back many years. His mother, a single parent with three children, worked as a domestic for the Rawson family and it was through her that Bill Rawson learned of Benedict’s sporting and academic excellence: he was one of the top scholars at his Khayelitsha school.
Rawson agreed to sponsor Benedict (who is known as Benito to his friends) to do a year’s computer studies (a very comprehensive course) at the St Francis School in Langa.
On qualifying Benedict was employed for two years by Rawson to handle their fully computerised referral system.
Rawson then suggested that he join Peter Sonwabiso as a Rawson franchisee in Khayelitsha. They worked together for four months before splitting the partnership into two, Khayelitsha north and south, with Benedict responsible for the latter, which he took over on 1st May 2009.
“The first three to six months in a new franchise will always be a real struggle,” said Benedict, “but we now have five agents and we have seen that in a good month we can sell four or five houses – so the future is promising.”
In the area he services, there are three categories of houses – in Litha Park and Kulani Park these will cost R500 000 plus. In other areas the majority will be priced at R200 000 to R350 000 or R250 000 to R300 000.
“These prices are 100% up on those we saw only four years ago,” says Benedict. “This shows just how strong demand here is.”
Throughout Khayelitsha, he says, there is a growing awareness that a home is a transferable asset and a road to wealth. Many are now taking the bold step of preferring to buy into appreciating brinks and mortar rather then rapidly depreciating “wheels”, which a few years back were always the option for the upwardly mobile.
As a result of the demand for homes in Khayelitsha, he adds, these are now regularly upgraded and the standard is improving year to year.
However, less than 40% of bond applications prove successful and this is the major reason for the market not yet being as buoyant as it might be.
“Since the National Credit Act became law,” said Benedict, “anyone who is even quite moderately in debt will have a difficult time getting a bond – and the many who are blacklisted, often on account of quite small unpaid bills, will certainly be turned down.
“As a first step, therefore, we have to get potential buyers to cancel some credit cards and accounts and settle outstanding debts.”
Benedict is now fully qualified – in terms of the Estate Agency Affairs Board’s new rulings and is therefore entitled to mentor his rookie recruits. (He is also one of the few township agents who has a Fidelity Fund Certificate.)
With a wife and an infant to support he has, he says, no option but to make this work. A factor to his advantage, however, is that, as a well known runner, rugby and soccer player and martial arts expert, who devotes considerable time to training Khayelitsha’s youth, he is well known in the area.
His sporting interest, along with his Christian faith, are central to his life – he will regularly run to Somerset West, a distance of 40km and as a qualified Sensei (karate instructor), he is also kept busy with training others.
“Khayelitsha is in a transformation period and could be a gold mine for good estate agencies,” says Benedict. “As Bill Rawson has indicated, there are good reasons to think that my franchise will become a market leader in Khayelitsha. We have our feet on the ground, we know how this business works and, I believe, we give a more professional service that has usually been the case here.”
For further information contact Benedict Ngxongwana on 072 124 0772 or email khayelitsha.ps@rawsonproperties.com.
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03 July 2009, 08:49:49
Construction of the first homes in the new Lombardy Estate and Health Spa to the east of Pretoria is well under way and homeowners are eagerly awaiting delivery of their properties.
That’s the news from Christo Steyn, principal of the Chas Everitt International branch in Pretoria East, which has the mandate to market the estate.
He says that many of the Lake Lombardy luxury townhouses and Lombardy Fountains boutique homes in the development have already been sold, as have many of the open stands. A number of private residences are under construction on these stands with some homeowners already taking occupation. Prices for homes in the Lake Lombardy section start at R2,9m and for those properties in Lombardy Fountains at R990 000.
The estate will feature tranquil water features, fountains and lakes within a fully-secured environment. Once it is completed, residents will also have access to communal parks and walkways, tennis courts, a function centre, quality restaurants and a five star hotel and health spa that will all add to the estate’s lifestyle appeal.
The townhouses in Lake Lombardy feature generously proportioned rooms with ensuite bathrooms, fully fitted modern kitchens and spacious patios with pools. Private courtyards are also included and under-floor heating, air-conditioning and a spa bath come standard.
In Lombardy Fountains, the one, two and three-bedroom full title homes range in size from 154sqm to 285sqm and all have ensuite bathrooms, fully-fitted modern kitchens and spacious patios. Most balconies also feature a water view.
The five-star hotel on the estate is already fully operational and the spa and wellness centre is currently in the pre-construction phase.
A marketing office has been established on site and sales consultants are on hand full time.
ISSUED BY
CHAS EVERITT INTERNATIONAL
FOR MORE INFORMATION CALL
CHRISTO STEYN ON
012 369 9041 OR VISIT
www.everitt.co.za
The townhouses in the Lake Lombardy section of the Lombardy Estate east of Pretoria feature generously proportioned rooms with ensuite bathrooms, fully fitted modern kitchens and spacious patios with pools. Under-floor heating, air-conditioning and a spa bath come standard and prices start at R2,9m.
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03 July 2009, 08:49:05
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Go-getter manager joins apkf atlantic seaboard
Anne Porter Knight Frank has appointed a new, dynamic manager at their Sea Point/Atlantic Seaboard branch.
She is Helen Hoekstra. She comes to APKF after six years of selling on the Atlantic Seaboard for other agencies including Sothebys (where she was their top agent in Hout Bay and Llandudno for three years) and O’Shea.
Prior to that, Hoekstra, who was schooled and raised in Johannesburg, had ten years in London and Belgium where she was a consultant to the Bank of England, responsible for reporting to them on other banks’ Capital Aadequacy, as directed by the Basle Accord. While in the UK and Belgium she studied and completed her UNISA B Com degree, which she was awarded in 2001.
Helen Hoekstra lives in Hout Bay, is married and has two children aged eight and three.
Her hobbies are hiking, travelling, reading and scuba diving.
In an initial interview she said that it should be possible to build up a team of 15 APKF agents covering an area from the City Bowl and the Waterfront to Hout Bay.
Hoekstra is now setting up an APKF branch in Camps Bay, servicing the Atlantic Seaboard, as she believes there is great value to be had in property along this coastline, and now is an ideal time to get into the market before prices begin to increase within the next twelve months
For further information contact Helen Hoekstra on 021 434 3517 or email atlanticseaboard@anneporter.co.za.
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03 July 2009, 08:10:44
RealNet opens in Jeffreys Bay
RealNet has added Jeffreys Bay to its list of offices countrywide, following the conversion of local estate agency Rachie Badenhorst Properties to the national brand.
Co-owner Rachie Badenhorst says that as part of the group her office will be able to bring a superior real estate offering to local property buyers and sellers.
“Although our agency has flourished since its opening in 2006, my partner James Hinton and I decided the time was ripe for joining a larger group, and we selected the RealNet group based on its values, sound business model and its personal involvement with franchisees, the last of which closely mirrors our own approach to clients.”
She adds that the local market is hunkering down and that buyers are wary of commiting themselves. “Pressure on prices has, however, given rise to excellent buying opportunities in Jeffreys Bay, one of the country’s prime holiday spots.”
Small bachelor apartments can now be had at prices of about R330 000 while residential homes in the middle segment of the market sell at between R800 000 and R950 000. Badenhorst adds that investors can also buy “brilliant” apartments in this price category.
“And the top market bracket now offers unparalleled buying opportunities. Demand is weak, which means buyers can pick up real bargains. There is room for serious price negotiations, with some sellers willing to lower their price expectations by up to 40% if they are pressured to sell.”
Meanwhile “commuters” who work in Cape Town or Gauteng are still evident in the market. Badenhorst says this type of buyer settles their family in Jeffreys Bay, noted for its excellent schools and beach-town lifestyle, and returns home at weekends. “We are also seeing more buyers who have overseas working contracts settling their families here. And in many cases, they pay in cash.”
Issued by RealNet
For further information call
Rachie Badenhorst on
042 293 2776 or visit
www.realnet.co.za
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01 July 2009, 16:19:49
In 2008, high interest rates, the National Credit Act (NCA), the lending policies of commercial banks and a global financial crisis were all held accountable for poor property sales and falling house prices.
Now, a year later, conditions have hardly improved. Property sales remain poor and prices continue to slide. Yet, interest rates have reduced significantly back to 2006 levels and many commentators are saying that the worst of the financial crisis may be behind us.
"This gridlock in the industry can only be attributed to a series of deep-seated misconceptions in the minds of owners, buyers, agents and even some property market commentators," says Jan Kleynhans, CEO of FNB Home Loans.
"Rocketing prices and rapidly expanding demand some three to four years ago have left many people with a deep-seated belief that these conditions will return and they should therefore price to sell and bid to buy accordingly. Sellers — specifically — have difficulty in accepting that the value of their house is falling and are extremely wary of selling in a low market if they believe a recovery is around the corner."
FNB's recent Residential Property Barometer (Q1/2009) surveyed agents who indicated that the percentage of properties sold at less than asking price remains above 80 percent, suggesting that many sellers are still not realistic in their pricing.
FNB's view is that recovery will be slow and that we may see further weakness extending into 2010. It is this scenario that is partially shaping the bank's decision-making when it considers an application for residential mortgage finance.
"Property values need a number of preconditions for growth. The most important of these is underlying economic vitality. And this condition has been lacking for some time, particularly in terms of consumer affordability levels and sluggish income growth or even income contraction. This is exacerbated by lower consumer confidence levels as the average potential property buyer is concerned about losing their job or at best a reduction in income growth. It should come as no surprise, then, that prices continue fall in consecutive surveys reported in the FNB Property Barometer and every other report on the residential property market. Thus one finds an oversupply of properties, typically by those needing to sell and sluggish demand due to low consumer confidence levels," says Kleynhans.
Bank lending policy
"Financing residential property remains an active business. Across the banks, thousands of new mortgages are granted every week. While FNB is not a dominant mortgage-granter and secures about 15 percent of the market, we are slowly increasing our market share and continually seeking new business opportunities despite the lackluster business environment," says Kleynhans.
Recent statements in the media suggesting that banks are actively withholding residential lending to the point that a lack of credit is undermining the market are, however, far from the truth. FNB's decline ratio stands at around 50 percent of all applications and this level has only increased moderately in the past 12 months.
From a credit decision-making viewpoint, FNB looks at the following:
The NCA requires a comprehensive analysis of the customer's financial position, specifically in terms of home loan affordability at the time of assessing the loan.
The Act requires that credit-granters are diligent and methodical in their approach to ensure reckless lending does not occur.
The underlying asset must represent sound value particularly as the risk of customer default is highest in the first few years of the home loan being granted.
That the underlying value of the property will provide sufficient security for the loan given default. Where the loan value is deemed to be too high, the bank may offer a lower loan aligned to the value of the property or decline the application.
A property report by a bank assessor.
A review of sectional title financial statements.
Buyer equity in the property in the form of a deposit.
More than 50 percent of people applying to FNB Home Loans are declined due to a combination of excessive debt, high living costs or poor credit records.
For customers in good standing, however, FNB is currently reviewing its earlier requirement of a 10 to 15 percent deposit 'across the board'. While deposits will continue to be a requirement in mortgage finance, lower deposit requirements will aid affordability without either compromising the customer's debt ratio or exposing the bank to potential losses arising from a non-performing loan.
"We have lived through such a rapid transition from boom-times to a recession that we all need to review our attitudes towards our financial affairs. In boom-times when asset prices were rising, it made little sense to save. In a recession, exactly the opposite is true," asserts Kleynhans.
"Consumers need to adopt a habit of saving. It may take a year to two to accumulate a deposit, but that is exactly the sort of change in behaviour South African consumers need to make. South Africa's traditionally low savings rate has been exacerbated by previously low deposit requirements on mortgage loans," says Kleynhans.
Property Economist at FNB Home Loans, John Loos is cautiously optimistic about the immediate future. "Although interest rate cuts may well spark a mild rise in new loans granted, it will probably be a long time before the growth in the total mortgage or household credit outstanding turns the corner due to leads and lags between new lending trend changes and capital repayments catching up. Given the shaky global and local economic conditions, any rise in new lending is expected to be mild, as it is unlikely that lending institutions will come 'out of the starting blocks' quickly this time around."
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29 June 2009, 08:58:59
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Edition 25 of 2009, Friday, 26 June 2009
Dear Reader
 “So close and yet so far” This is what we can say today regarding Bafana Bafana’s soccer match last night against Brazil. This is also what we can say regarding another interest rate cut. But unfortunately this is not what we can say about the National Energy Regulator of SA’s grant of a 31.3 % interim tariff increase for Eskom to fund its operational costs. What will the impact of this decision be on the real estate industry? Send us your viewpoints to news@cyberprop.com
Barclays Wealth survey snapshot: The rich says they will allocate more money to real estate The report doesn't include South Africa as a country in its list of results; nevertheless in this era of globalization it gives a good snapshot about investment sentiment among the world's wealthiest people. And, the Barclays Wealth survey lends weight to recent reports that property sales are better-than-expected in some prime South African locations. Real Estate news – Rich investors vote for real estate
SA banks’ cutback credit from 1 June 2007 when the National Credit Act came into effect. This resulted in a down slide in the property industry. It does seems that the bank’s are easing down.
- Hopes for an easier home loan climate
- Easier bonds boost southern suburbs sales
- Don’t rush into fixing your bond interest just yet, says Neethling
An article of interest; it is on a recent rare legislative concession that that will allow individuals to transfer their domestic residence out of a company or close-corporation, for a period of two years, tax-free. David Warneke, a tax expert at Cameron & Prentice, an accounting firm, explains that although similar relief was previously available, the current proposal is narrower than the previous relief in a number of respects. He also urges those affected by this to take advantage of this opportunity. Rare legislative concession gives tax relief on domestic residence
Read more in To the Editor
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26 June 2009, 09:50:16
Estate agents and sectional title managing agents must be registered as debt collectors before they can collect rental arrears, the council for debt collectors said on Wednesday.
"If they do so they are acting illegally and are contravening the Debt Collectors Act," chairman Jasper Noeth told a media briefing in Pretoria.
He said on 6 June, a council committee made a landmark ruling that estate agents and sectional title managing agents cannot collect arrears without being registered as debt collectors.
He said it was pointed out that when estate agents and sectional title managing agents recover rentals and levies in arrears, they were collecting debts as defined by the Debt Collectors Act.
They were thus acting as debt collectors and must be registered with the council for debt collectors.
The ruling means agents would be subjected to the council's prescribed fees.
"This decision will undoubtedly safeguard the public against any possibility of exploitation of fees asked."
He said it has been found that exorbitant fees were being charged and the public was exposed to abusive practices.
"The prescribed fee, as stipulated in the Debt Collectors Act, for a letter of demand is R12.60," he said, mentioning a case in which amounts of R175 to R250 were charged for letters of demand.
He said during the past financial year the council had received numerous complaints about debt collecting and had acted on these matters in a fair and responsible manner.
In one case the council found that 287 false emolument attachment orders were issued and no files existed at the magistrate's court where the orders were supposedly issued.
An emoluments attachment order is issued by a court to a debtor's employer directing that a specific amount of the employee's salary be paid directly to the creditor.
The debt collectors concerned were found guilty and would be sentenced soon. The total amount to be collected in terms of these orders, over a period of time, amounted to more than R3.6-million.
"In various disciplinary matters it was found that the public had been overcharged with fees.
"In these cases the disciplinary committees of the council ordered a repayment of the amounts overcharged to the debtors concerned. The amounts to be repaid varied from R30 000, R25 000, R10 000 and numerous smaller amounts."
The council for debt collectors was created by Parliament to protect and inform the public about their rights in terms of the Debtor Collectors Act.
The council exercises control over debt collectors in their interaction with the general public.
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26 June 2009, 09:44:09
Inflation slowed less than expected last month, but this is unlikely to stop the Reserve Bank trimming interest rates by another half a percentage point today.
Consumer prices rose eight percent compared with the same month last year, down from a rise of 8.4 percent the previous month and its lowest level for 19 months, Statistics SA said yesterday.
The outcome was above forecasts for a rise of 7.9 percent, and showed that service prices rose 8.4 percent – the same pace as in April.
But mounting job losses and the sharp contraction in SA's economy so far this year will carry more weight in the decision of the Bank's monetary policy committee (MPC).
"It's a little discomforting that consumer inflation remains high ... but it would be a mistake to read too much into this," said Standard Chartered's regional research head for Africa, Razia Khan. The MPC "should still cut by 50 basis points".
The Bank has cut interest rates by 4.5 percentage points since last December, taking the repo rate down to 7.5 percent.
"Not in the mood" for reductions
Each of the four cuts this year have amounted to a full percentage point, but the Bank's governor, Tito Mboweni, warned last month that the MPC was "not in the mood" for further significant reductions, due to "sticky" inflation.
Today's expected rate cut may be the last in this cycle, given price pressures generated by rising oil prices, electricity tariffs and double digit wage settlements.
"Given that the inflation outlook remains relatively uncertain, we expect the Bank to remain a bit more conservative this week," Absa Capital economist Jeffrey Schultz said. "We expect a half percentage point cut, which will probably mark the end of the rate cutting cycle."
Changes in interest rates take up to two years to make themselves fully felt, but the MPC is unlikely to stop lowering them yet in the wake of a barrage of grim economic data.
The Organisation for Economic Co-operation and Development yesterday forecast a deeper than expected recession for SA, predicting that the economy will shrink by two percent this year. Earlier this week the World Bank forecast a 1.5 percent contraction.
Business sector shed 179 000 jobs
Market consensus sees output contracting by about 1.5 percent after a 6.4 percent fall in the first quarter of the year – the steepest in 25 years.
In that period the formal business sector shed 179 000 jobs.
Inflation has breached its 3 percent – 6 percent official target range for more than two years, and is subsiding more slowly than expected.
That is due partly to stubborn food prices, which rose 12.3 percent versus the same month last year – an improvement on 13.7 percent in April.
During the month itself, the consumer price index (CPI) rose by 0.4 percent, compared with 0.5 percent in April.
Vehicle prices – which have a weight of 11 percent in the CPI – rose by a robust 1.4 percent last month.
Prices for most of the inflation basket's components rose by more than 6 percent, the data showed.
Rand improves the inflation outlook
"Overall, the resilience in retail inflation so far defies expectations by the Bank that the widening output gap will bring inflation down," said Thebe Securities economist Monale Ratsoma. He was referring to the difference between actual economic output, which is shrinking, and its potential growth rate, which the Bank puts at 4.5 percent.
Gains in the rand, which firmed by two percent to nearly R8/ yesterday, improves the inflation outlook.
"If the rand holds at its current levels ... consumer inflation could fall within the target range in the fourth quarter," said Nedbank economist Carmen Altenkirch.
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25 June 2009, 09:49:53
South Africa's producer price index (PPI) registered deflation of 3.0 percent year-on-year (y/y) in May from inflation of 2.9 percent y/y in April, Statistics South Africa (Stats SA) data on Thursday showed. This is the ninth consecutive decrease in the producer price inflation headline number.
The PPI decreased 1.1 percent on a monthly basis after April's monthly decrease of 0.2 percent.
The PPI was expected to have decreased at 2.0 percent y/y according to a survey of leading economists by I-Net Bridge, with forecasts ranging from -1.2 percent to -3.7 percent y/y. PPI was at an elevated 16.4 percent a year ago.
Economists react to the PPI data:
Fanie Joubert, Efficient:
"It's more than the market consensus. This confirms that on the producer side, prices are in a deflationary environment for the first time since 2003.
"It's a positive development, but we must remember that it's coming from a very high base created in the first of 2008."
Carmen Altenkirch, Nedbank
"Today's producer inflation data is extremely encouraging. The high base established in 2008 combined with falling domestic and international demand should keep producer price inflation in negative territory for much of the remainder of this year. Lower input prices as well as contracting domestic demand should continue to put downward pressure on consumer inflation.
"This is good news for the medium-term inflation outlook, which the Reserve Bank will be focusing on at today's meeting. So, we're expecting 50 basis points".
Annabel Bishop, Investec:
"PPI inflation came out much lower than expected, recording the first month of deflation since December 2003. We continue to believe the SARB will cut interest rates by 50bp today and 50bp in August. The release of the Q2.09 GDP figures are likely to show the economy contracted by more than the authorities expect, we forecast a Q2.09 figure of -4.2 percent qqsaa, if not closer to -5.0 percent qqsaa.
"The larger-than-expected fall in the PPI on the year was due to a sharp drop in the rand oil price and, to a lesser extent basic metals."
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24 June 2009, 08:55:09
The international Harcourts real estate group now has four offices open on the East Rand, following the rebranding of the local Homenet agencies.
This is in line with last year’s purchase by Harcourts International of a share in the Homenet group, which has now become Harcourts Africa and is in the process of re-branding all its offices around the country.
Brian Dugmore, principal of Harcourts Anchor in Boksburg says the international group offers the most sophisticated real estate systems in the world and that its marketing strategies will give the Harcourts Africa offices a competitive edge. He notes that local consumers have already noticed the change and that his team feels more professional because of their new Harcourt’s apparel, branding and support structures.
Johannes Barnard of Harcourts Falcons in Brakpan is also pleased about the conversion and looking forward to taking advantage of Harcourts’ superior technology and training academy.
Says Barnard: “There are many benefits to amalgamating with an international company such as Harcourts. We will have access to a number of international property markets and our agents will be able to offer a far superior service. It’s definitely a step in the right direction which will up the ante in the local property industry considerably.”
Slavo Bantich whose Harcourts office focuses on new residential developments as well as commercial and industrial projects across the East rand, says the re-branding process has gone smoothly and that he is already utilising Harcourts systems to great effect.
Lance van Heerden of Harcourts George Rennie in Benoni also believes that the change is definitely for the better and very exciting. He adds that the partnership with Harcourts is another great step in their evolution as realtors.
Harcourts is one of the fastest growing real estate groups in Australia and the biggest in New Zealand. The group also operates in China, Fiji, Indonesia, Singapore and Zambia, and has been rated by world real estate authority Stefan Swanepoel as one of the top five international real estate brands.
It currently has more than 600 offices employing 4000 sales consultants, and sells more than $19,5bn worth of property every year.
ISSUED BY HARCOURTS AFRICA
FOR MORE INFORMATION
CONTACT MARTIN SCHULTHEISS
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23 June 2009, 08:59:24
Sa developed wall plaster is one of few that are 100% waterproof and can be applied on top of pva paint or to facebricks
With winter rains once again lashing homes and other buildings of the Western Cape – and with low-cost housing particularly vulnerable to damp penetration, where can developers, specifiers and others look to find an effective, easily applied and not overpriced protective wall plaster?
Mike Grose, Chairman of Technical Finishes, a company which makes some 250 products for the construction industry, says that those troubled by water penetration problems on the buildings they own or manage should take note that the Cape Metro authorities have become enthusiastic users of Skimplaster, a cement-based plaster developed by his company to provide 100% water resistance for walls. The product, says Grose, has the big advantages that
- it is easy to apply and adheres to all walls, even when applied by an amateur. This makes it ideal for the DIY market and reduces wastage to minimal amounts.
- it is supplied ready-mixed, the powders needing only water to be added. There is no chance, therefore, of the mix being wrong and the applicator can make as little or as much as he needs – on site.
- it can be applied to PVA painted surfaces and to face bricks. Other plasters will not adhere to these.
it does not need a paint coating – the plaster is itself waterproof.
as it is so strong and effective, a coat only 3mm thick is needed. This makes it more economical than other plasters. Its application time is roughly half that of other plasters.
It is covered by Agrement Certification, awarded to Technical Finishes in 2005, #313.
On low-cost housing, adds Grose, the quality of the finish will literally transform any block-built building – and applications made to houses up to ten years ago are still completely intact.
For further information contact Mike Grose on 021 535 4455 or email mike@technicalfinishes.com.
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23 June 2009, 08:58:06
Striking neo-georgian homes to be built in upper claremont
A 2 000m² erf in Upper Claremont on which the striking Maister residence was built, circa 1938, has been bought by Classico Developers who will develop a further two 400m² double storey houses on the northern portion of the erf.
The new homes are designed to sell at R5,5 to R6 million, says Anton du Plessis, CEO of Vineyard Estates who is selling the new units, having already onsold the existing residence at a price close to the R3 million mark. The new homes are, says du Plessis, competitively priced for new houses of this size and quality in this area – particularly those with unobstructed mountain views.
Transfer is scheduled to take place on both units around mid-2010.
Du Plessis said that buyers will be impressed by the spacious 500m² erven and the neo-Georgian style. These homes, he said, conceived by Raubenheimer Hervey and Associates, will have four bedrooms each and floor to ceiling custom joinery windows to highlight the dramatic views afforded by the site, as well as an impressive list of standard and optional features.
These include underfloor heating, solid wood floors, slide back frameless doors on some living areas, granite countertops in the bathroom and kitchens, solar powered geysers, imported ovens and hobs, and, a truly innovative feature, glass doors at the back of the garage, allowing much-needed light into these traditionally gloomy areas.
For further information contact Anton du Plessis 083 234 2909 or email anton@vineyardestates.co.za.
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23 June 2009, 08:56:54
One unit available at central southern suburbs security estate
Anton du Plessis, CEO of Vineyard Estates, says that “however you look at it” there can be no arguing that the eight unit Boshof Estate has proved to be one of the development successes of the last decade at the Cape. Completed in 2004/2005 most of the units have been held onto by those who bought them originally but, he says, one has now come back onto the market at a price of R8 million.
“This, in my view, is an opportunity that any serious investor should investigate,” said du Plessis.
Sited in Boshof Road, Fernwood, often said to be the most prestigious part of Newlands, each home has a ± 900m² erf and is separated from the other townhouses in the development. Each home has three bedrooms, all with their own bathroom, an upstairs open-plan study, a family room with a wood burning fireplace and double doors leading to a patio and swimming pool and a guest suite/bedroom or staff accommodation. Plans have been approved for a large fourth bedroom with an en-suite bathroom.
“The estate,” says du Plessis, “is one of the only guarded security estates in the central Southern Suburbs. What is more, the chances of more security estates coming onto the market in this area are virtually nil because the cost of the acquisition and demolition of existing properties would be prohibitive.”
For further information contact Anton du Plessis on 021 674 4444 or 083 234 2909.
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22 June 2009, 09:47:23
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Edition 24 of 2009, Friday, 19 June 2009
Dear Reader
 According to Wikipedia an economic bubble (sometimes referred to as a speculative bubble, a market bubble, a price bubble, a financial bubble, or a speculative mania) is “trade in high volumes at prices that are considerably at variance with intrinsic values”. A real estate or property bubble on the other hand is a type of economic bubble that occurs periodically in local or global real estate markets. It is characterised by rapid increases in valuation of real estate property such as residential property until they reach unsustainable levels relative to incomes and other economic elements.
Peter Boone, chairman of Effective Intervention and Simon Johnson, a professor of entrepreneurship, believes that the next global bubble is already under way. The Bubble Next Time
Author Steve Bergsman writes; “When bubbles burst, the effects almost always last a long time. When real estate bubbles deflate, it is never a short-term problem. Bergsman's message: Proceed with caution, be patient and realise that there are many kinds of real estate markets -- each with particular potentials and pitfalls. He continues with the following statements;
- Money still can be made on real estate, but it will take time and a specific approach to types of property and their locations
- It is not likely, nor a desirable thing, that the real estate bubble will re-inflate to its former false glory
- Distressed property is moving slowly because it’s priced too high
- In 2009 and 2010 more commercial properties will come on to the market
- Sold and rented housing that is part of in-fill development, urban and suburban, will outperform stand-alone single homes that require long commutes to work
- Industrial real estate will remain resilient and could take off if the economy sustains a recovery
Read more in After the Fall: Opportunities and strategies for real estate investing in the coming decade
Builders, interior decorators and other suppliers of goods and services in the new residential property arena can expect the tough times to continue. The number of building plans passed by local government officials is down dramatically on recent years, latest statistics show. In a note released by Absa Home Loans, senior property analyst Jacques du Toit said residential building activity is expected to remain depressed for the rest of the year. New residential property: more pain looms
Last week we placed an article written by Chuka Uroko from Nigeria in which he wrote about the measures developed countries like United States, United Kingdom, United Arab Emirate and even South Africa are taking to improve the real estate industry. Some of these measures are cuts in interest rates on mortgage lending and housing. In answer to this article we received feedback from John Fuller, principal of Chas Everitt International Property Group, Plettenbergbay. “It always brings a smile to my face when I hear comparisons being made about our finance rates and those of many other countries, and I have on several occasions had the pleasure of educating buyers from Europe when they have compared our mortgage rates to theirs. Most people are unaware that there is a vast difference between the calculation methods used to determine financing rates in most African and European countries compared to South Africa”. Read more in To the Editor
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22 June 2009, 09:00:31
One of the biggest benefits of the huge new Rama City development project to the north-west of Pretoria will be the skills training in various fields that will be available to members of the Rama community to improve their employment prospects and assist them to start their own businesses.
And this is no empty promise, as evidenced by the fact that the first 50 learners from the community are already on a 13-week computer proficiency course that will help them gain an NQF level-3 qualification. This training is being carried out by MSL Strategies, which is accredited by ISETSETA and currently also running certain programmes for the Umsobomvu youth fund.
Another five people have already started training as skills development facilitators and plans for the implementation of training in construction skills are well advanced. This will also enable the community to take part in the building works to take place at Rama City from next year.
As the project develops, the training courses available will increase to include design, communication and various aspects of management as well as specialist construction skills from bricklaying and carpentry to plumbing and electrical work.
These training schemes, which form an integrated part of the overall development plan, are being put in place by the developer, Rama Horizon Developments, working in co-operation with the relevant government departments and sector training authorities (SETAs) to ensure that they comply with NQF requirements and will lead to recognised and useful qualifications.
“The community is very excited about what this will mean to them,” says MSL’s Kevin Gilbert. “The training can take place while developing their new home town, Rama City, and will enable the participants to find employment and even create their own businesses as the town grows. In this way the Rama City property development will contribute in another very real way to the upliftment of the community.”
The Rama community was forcibly removed from its land during the apartheid years but successfully claimed it back in 1998 in the land restitution programme, and has now partnered with Rama Horizon Developments to create whole new town in the area, complete with shops, schools and community facilities as well as more than 10 000 new homes.
Called Rama City, this town will lie some 22km to the north-west of Pretoria and within easy commuting distance of the employment opportunities in Rosslyn, Brits and Akasia. As such, it will be of enormous practical benefit to the Rama community and the formation of the development partnership is already being hailed as a move that could provide a resettlement blueprint for other communities that were victims of forced removals and have now successfully reclaimed their land.
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19 June 2009, 08:26:06
3,2ha farm property in the heart of Constantia on the market through vineyard estates
Property investors looking for a good, but very long term property prospect or simply a charming, though slightly old and ramshackle farmhouse on 3,2 hectares of ground in the heart of Constantia will be interested to know that a farm property, Cymbidium, has come onto the market – at a price of R18 million.
The agent is Vineyard Estates.
The property is close to the historic Alphen Hotel and was, in fact, originally part of the Alphen farm, which in 1949 was sub-divided by the owner, Hugh Bairnsfather Cloete, who later sold it to Grace Mildred Roper. She, in turn, sold it in 1955 to the well-known Cape veterinarian, Dr C H Basson.
Dr Basson grew vines (and qualified for a KWV quota), vegetables and orchids. The farm, in fact, was named after a popular orchid variety. He also ran a small prize-winning Friesland stud.
In 1991 Dr Basson retired, leaving the farm in a trust, which for 17 years has rented it out. However, Dr Basson’s children have now decided to sell, provided they can find a buyer with a passion for the estate and an ability to restore it to its former glory.
Anton du Plessis, Chief Executive of Vineyard Estates, said that there can be very few places in the world where a property of this beauty and size is set within metropolitan precincts. The farm, he said, is just 1,3km (as the crow flies) from Constantia Village Shopping Centre and 3,2km from Cavendish Square. Its rural zoning ensures that it cannot be sub-divided into parcels less than 21,500m2.
“Obviously,” said du Plessis, “the question that will be asked is, ‘Is there any prospect of this property eventually being sub-divided?’ Given the City Council’s stated policy of densification, and the fact that the farm of this size is not really agriculturally viable, it is likely that a rezoning application would eventually prevail. I am convinced that the time will come when very attractive one or possibly two acre plots will be allowed here.”
Views from the property take in the Wolwekloof and a river, the Burgersboskloof, which runs through the estate. Being low lying, the land is very fertile and well protected from the wind.
The large single storey ranch-style house is, said du Plessis, now fairly rundown but still habitable and comfortable.
“I would imagine that any serious buyer would replace it, but it has served several generations of people well.
Ideally, said du Plessis, the farm’s new owner should be able to farm it commercially, as did Dr Basson, and as it is part of the suburb Constantia, quality wines can be produced with the valuable right to feature “Constantia” on the label.
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19 June 2009, 08:24:59
Grand Maison comes up for sale in Constantia
A large home in Constantia, a “grand maison” originally built for the Portuguese Consulate General, is on the market for R4,95 million.
The agency handling the sale is Anne Porter Knight Frank, represented in this case by Anne Wilkinson.
Wilkinson said recently that the home, situated in Spaanschemat River Road, on 2 076m², has four spacious bedrooms, two and a half bathrooms, three reception rooms, a fully fitted beechwood kitchen, a small separate cottage, which can be used for a work from home facility, domestic accommodation or as a guest suite.
The main house has two spacious outdoor entertainment areas, overlooking a heated pool and park-like gardens.
Lanice Steward, MD of Anne Porter Knight Frank, commented that this section of Constantia is thought of by many as “the” place to live in the Cape Peninsula.
“At under R5 million, it represents good value in the current market,” she said.
For further information contact Anne Wilkinson on 021 671 9120 or email anne.wilkinson@anneporter.co.za.
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18 June 2009, 08:21:51
Sweeping changes are occurring in the KwaZulu-Natal Midlands propertyscape where a host of Homenet branches will this month officially convert to the international Harcourts branding.
Homenet 1st Realtors, Homenet Ed Patrick, Homenet Hilton, Homenet Ashburton and Homenet Emanuel are all currently in the process of changing over to the global real estate brand, following last year’s purchase by Harcourts International of a share in the Homenet group, which has now become Harcourts Africa.
Albie Timmerman, principal of Homenet 1st Realtors, is looking forward to the conversion citing the mutual benefits both Harcourts and Homenet will receive as being fundamental to their success going forward.
“Harcourts has operated in Australasia for 120 years and as such is a very professional company. We’ve always enjoyed a good rapport with Harcourts and we’ve already sent three of our eight agents through the Harcourts Training Academy. Suffice it to say this partnership is definitely a step in the right direction”.
David Patrick, principal of Homenet Ed Patrick, which will be renamed Harcourts Park Lane and which incidentally is celebrating its 31st anniversary this month, believes that the Harcourts value proposition is giving Homenet the opportunity to reinvent itself at a time when most companies are shying away from change.
“While everyone else has gone into hibernation, Harcourts Africa is doing just the opposite, offering agents an unbeatable value proposition and a positive way forward. Given that the local property market has taken a knock, such action is encouraging and will help us rally in these difficult times.”
Andrew Line of Homenet Hilton who has enjoyed a 65% market share over the past 15 years and Heidi Johnston of Homenet Ashburton feel the same, saying that Harcourt’s cutting edge technology, international links and “people first” philosophy makes for a winning combination which will elevate the Harcourts Africa group to a whole new level.
Roy Emanuel, principal of Homenet Emanuel which will become Harcourts Town and Country, says the fact that Harcourts was willing to invest in Homenet during such uncertain economic times speaks volumes about its confidence in the local group’s. Emanuel has operated in the Estcourt market for the past 36 years specialising in agricultural sales and he is upbeat about the conversion.
Harcourts is the fastest growing real estate group in Australia and the biggest in New Zealand. The group also operates in China, Fiji, Indonesia, Singapore and Zambia and has been rated by world real estate authority Stefan Swanepoel as one of the top five international real estate brands.
It currently has more than 600 offices employing 4000 sales consultants, and sells more than $19,5bn worth of property a year.
ISSUED BY HARCOURTS AFRICA
FOR MORE INFORMATION
CONTACT MARTIN SCHULTHEISS
ON 031 201 1060 OR VISIT
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15 June 2009, 08:54:45
A rare opportunity: 5ha estates for sale on historic Boland wine farm near Stellenbosch
Greeff Properties have secured the sole mandate for five Boland smallholdings that their CEO, Mike Greeff, has described as “without a doubt one of the most beautifully sited properties his company has ever handled”.
Each estate on the Slaley wine farm covers a ±3 to 5ha site, situated on the foothills of the Simonsberg 6km from Stellenbosch and 18km from Paarl, just off the R44. This site, said Greeff, is the epicentre of the Stellenbosch wine route. Nearby estates such as Muratie, Delheim, Kanonkop, Warwick, Le Bonheur, Simonsig, Uitkuik and Liefland – as well as others – are all world-famous wine producers. Ninety five percent of the grapes grown on Slaley go into a range of reds (Merlot, Cabernet, Pinotage and Shiraz) and a few whites that are sold overseas at prices of R250 plus per bottle.
The owner of this section of the Slaley Farm Estate is Johann Buitendag, a property developer whose company, Prime Lifestyle Developments, is now known throughout South Africa as a result of a number of successful medical centre and retirement village developments.
Buitendag, who bought this portion of the Slaley farm in 2006, said, that it is quite possibly the only piece of agricultural land in the entire Stellenbosch winelands on which subdivisions into properties under 5ha have been allowed. This is because this subdivision was put through in 1953, before the law limiting such subdivisions came into effect.
“This is, therefore, a once in a lifetime opportunity: anyone buying smallholdings elsewhere in the Boland today will find it very difficult indeed to get even a 20ha piece of winelands property, let alone one of 5ha, the majority being between 90 and 120ha in this most sought after and expensive wine growing precinct.”
(Wine estates in the Stellenbosch district, in fact, currently attract prices of R400 000 to R1,5 million per hectare.)
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Buitendag said that he had spent the first 18 months after the acquisition, installing services (roads, reservoirs and sewers) as well as high quality electric and palisade fencing. One of the defining characteristics of this development, he said, will be a high level of security, with a single entrance gate manned 24 hours a day.
The vineyards and olive groves on the property will continue to be farmed by the previous owner, Lindsay Hunting, who also farms on the Slaley Farm. The Lindsay family has grown grapes here for some 60 years, their original estate being 600ha in size. Title deeds on Slaley date the property back to Huguenot times, i.e. to the 17th Century.
Owners of the Slaley Farm smallholdings will be precluded from interfering in any way with the farming operation. This provision, however, also means that they will not bear any of the costs of the farm (which, said Buitendag, would involve an initial outlay of several hundred thousand rands and ongoing costs of at least R100 000 per annum). Owners will also, however, be in no away involved in any losses incurred on the farm as a result of poor season, disease, a slump in the market or any other causes. They will be entitled to 24 cases of wine of their choice each year.
The land is priced from R6,4 million, the average price being R6,6 million for a stand. The sites on the higher ground with panoramic views are the more expensive ones.
Buitendag and his architect, Koen Greyling, have drawn up a footprint layout for a home on each stand. Although they are convinced this is in every case in the most appropriate building position, it is not binding on the new owners. Buitendag has completed three houses on the smallholdings so far. These are for sale at an average price of R10 million.
Those who build for themselves will be obliged to adhere to architectural guidelines which will ensure that all houses on the estate conform to an attractive, modern farmhouse style, characterised by neutral tone façades (at the moment mostly pale grey green), charcoal, black or grey Chromadek roofs, spacious interiors, some with fireplaces, deep-set verandahs and patios – and extensive use of natural materials such as timber (especially for decks) and stone. Window and door frames, it is suggested, should always be a dark aluminium or timber.
As most of the footprints of the homes are on slopes, it is envisaged that virtually all will have split levels. Two of the completed homes have superb views over the existing farm dams. Those on the higher ground will have spectacular 360˘Ş views that take in most of Simonsberg, the Paarl Mountain, Table Mountain (just 30km away) and most of False Bay.
RMB Private Bank have agreed to advance 70% bonds to financially approved buyers.
Greeff said that, in his view, these properties must represent one of the best buying opportunities to become available in the Stellenbosch Winelands in the last decade.
“Let me repeat,” he said, “that few other smallholdings of this convenient size are ever likely to become available in the Stellenbosch wine district because conservation legislation is dead set against subdivision of agricultural land and the Stellenbosch municipality is also determined not to extend its urban boundary.”
Heather Cape, Greeff’s development manager, who is available to show visitors around the estate, said, “This is a once in lifetime chance to enjoy the winelands lifestyle in a really attractive setting without having to bear the cost of running a farm and without the hassles of living on a large estate. Our management team has predicted that we will see these estates double in value by 2015 – and I can see no reason to disagree with them.”
For further information contact Heather Cape on 021 763 4120 or email info@greeff.co.za.
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15 June 2009, 08:45:13
High profile property executive takes over Rawson Port Elizabeth franchise
Rawson Properties have sold their large Port Elizabeth franchise to a franchise principal, Verity Bigara, who has had 12 years of successful marketing selling and management in property and who, says Tony Clarke, MD of Rawson Properties, has also managed a Pam Golding Properties branch.
Bigara started her property career in KZN, moved to George for five years and then to Port Elizabeth, where she was a branch manager for five years. Her husband, Duncan, is a senior partner in MDA Architects.
She was approached by Rawsons to take over this franchise because, says Clarke, she has an impressive track record.
The franchise’s office is at 8 Whaley Place, Walmer, but Bigara plans to open a second office in the western sector of PE and is also looking for an independent franchisee for the Uitenhage and Despatch area.
“We aim to become a dominant presence in PE by mid-2010,” she says.
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Right now, she adds, the Port Elizabeth residential market is at what is likely to be its lowest point, from which, she predicts, it will begin to climb upwards towards the end of this year.
“Prices are on average 30% down from their early 2007 levels. However, we are in the strong position of having low overheads and of running a rental property agency, so we can only grow from here. We are also not confined to any one market, or area – we can handle anything from an entry level home to a multimillion rand luxury home.
Her own strengths, she says, have traditionally lain in the upmarket sector which at PE has survived the recession slightly better than other sectors, but she will definitely not be confining herself or her agents to this.
By mid-2010, says Bigara, she plans to have at least six agents on her staff – and by then, she predicts, the market will be humming.
“We are, however, very selective and will be looking only for agents with good track records and proven successes.”
All Bigara’s operations to date, comments Clarke, have been characterised by high ethical standards and transparency.
Bigara confirmed this: “We know that value of building up trust and forging long-term links with clients. This will be our goal here. We are quite confident we can be a major player in the PE property world within a year because we are getting great back-up from our head office and the Rawson brand is much respected.”
For further information contact Verity Bigara on 041 581 7708 or email portelizabeth@rawsonproperties.com
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15 June 2009, 08:23:19
Rawson properties move into upper Constantia
Rawson Properties’ move into Upper Constantia and other upmarket Cape suburbs has borne fruit this year, says Bill Rawson, Chairman of Rawson Properties.
“Many agents,” he said, “shy away from handling the more affluent homes because they realise that success here is not easily come by. Fortunately, for us, since Eugene Pienaar took over the Constantia franchise, Rawsons has been increasingly successful here.”
The latest home on offer from Pienaar and his team, says Rawson, is exceptionally well priced (for Constantia) at R3,8 million. It is a double storey home with great charm, beautiful views and a feeling of being closely linked to its natural surroundings.
What is more, says Pienaar, the home has been immaculately cared for and is in top condition.
“Very few homes have such good indoor-outdoor space correlation,” said Pienaar. “Easy links between the communal areas and outdoor patios make this home suited to entertaining and outdoor meals.”
The home is characterised by having curved semi-circular windows above full-length glazed doors. There are four bedrooms and two bathrooms – and a separate flat. Garaging for two cars is on offer.
For further information contact Eugene Pienaar on 083 279 3909 or Sandy Dicey on 082 785 4803.
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12 June 2009, 09:57:21
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Edition 23 of 2009, Friday, 12 June 2009
Dear Reader
The Republic of South Africa, a small country located at the southern tip of Africa. Who would have thought that such a small country could play such an important role in the continent of Africa? Who would have thought that the eyes of the world would be on this rainbow nation? It was with great interest that I read a Nigerian property related article and read about my own country.
As the global economic crisis persists, different countries of the world have devised measures for responding to its impact on real estate. CHUKA UROKO writes that top of these measures are cuts in interest rates on mortgage lending and housing loans Developed economies like United States, United Kingdom, United Arab Emirate and even South Africa.
Countries where property market had experienced a boom before the crisis-are at the forefront of nations have adopted friendly measures in the bid to stave off the effect of the global financial crisis on mortgages and housing loans. South Africa has also cut its lending rate but unlike UK, interest rate in the country was not cut heavily. It was cut by just one percent from 12 percent to 11 percent. Whatever the case, at the end of the day, you find that it has made mortgages cheaper and more affordable. Meltdown: Nigeria in context of global response to impact on real estate
What is the most read property related article on iafrica.com for the past year? “SA’s priciest property” Sought-after by those at the very pinnacle of the social hierarchy, South Africa's most expensive properties are everything you'd expect — extremely luxurious and very private. Personal lifts, scurrying housekeepers, a butler or three, spas and fully equipped home gyms are just some of the humble pleasures that the distinguished owners of these homes have come to expect. More in SA’s priciest property
To renovate or not to renovate? We’ve placed two articles this week on renovations that could help you to answer on this question;
· To Renovate or not to Renovate? - that is the question
· Tackling renovation in a down market
It’s been 10 years since the 'rebirth' of Cape Town’s Central City as a residential zone got underway. And although the historic facades of the area may have remained largely unchanged — albeit cleaned up — the profile of buyers has certainly shifted. In the area 2 – Cape Town CBD
Enjoy!
The editor
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12 June 2009, 09:04:09
A “life rights” system is an effective, inexpensive way to secure a comfortable retirement, says greeff manager
“Life Rights” is today the most commonly used retirement unit funding system in the USA, Europe Australia and South Africa as well as many other countries.
It entails that the money paid to the owner/developer secures the purchaser the right to live in a unit for as long they wish or in perpetuity i.e. until the death or departure of both the husband and spouse.
The Cape Peninsula Organisation for the Aged, Greeff Properties and Lloyd Properties are holding a seminar on Thursday, 18th June at 2:30pm on the issues faced by those planning to retire. The venue is the Riverside Place Retirement Centre in Alnwick Road, Diep River.
The discussions will cover a wide variety of issues, but will relate these in many instances to the new Riverside Gardens Retirement Centre, a follow-up to the very successful Riverside Place nearby.
“One of the real benefits of a Life Right,” says Greeff Properties Development Manager, Heather Cape, “is that it is not a property deal and, therefore, no transfer duty or VAT is payable, nor are there any bond or registration fees.”
Cape said that when she deals with would be retirees, similar questions are always asked. The following concerns come up time and again:
- If I put down a deposit now can I be assured that the project will in fact go ahead and that the money is safe?
- If I sell my house now is it possible that I will get too little for it in the current market?
- What happens if my home is sold before my unit is ready?
- If the levies are more than I can afford (due to escalation clauses) – is there any solution?
- I dislike of the idea of having to part with some of my favourite furniture and/or books.
- There could be disagreements in the family about the move. (One of the retiring couple might want it but the other does not). Similarly some of the children think it is a good idea, others disagree.
- How secure will I be in this new development?
- What happens if I get sick or incapacitated?
In reply Cape says the following facts are always relevant.
“It is always advisable to have the Cape Peninsula Organisation for the Aged involved on any project – as is the case at Riverside Gardens, the developer can then draw on their knowledge and administrative ability. They are trusted, with 22 schemes to their credit and 50 years experience to draw on, and are widely recognised as totally reliable. DNL have built many schemes and are reliable and reputable developers. CPOA will be the owners and managers of Riverside Place.”
On the issue of selling of your home in the current market, Cape says that this is quite understandably a cause for concern. However, in most retirement schemes, including Riverside Gardens, the developers ask only for a 10% deposit on signing, the rest to be paid on occupation. Riverside Gardens, in fact, will not become available until October 2010. By then, the housing market should have recovered significantly.
Most schemes, too, have an arrangement to provide retirees with temporary accommodation for three or four months. For Riverside Gardens buyers, temporary accommodation in Riverside Place or any other CPOA scheme can be arranged.
On the levies issue, Life Right contracts must disclose the annual escalation in levies and is usually fixed for an initial period. In many cases the levy fund is subsidised by contributions from the resale of Life Rights and levy increases are, therefore, kept below inflation. Special levies to meet unforeseen expenditure should not be necessary.
At Riverside Gardens, although not included in the levies, dining and frail care facilities are available if required.
On the subject of parting with possessions, Cape said,
“While it is true that it can be difficult to part with certain items when moving in,” said Cape, “our experience has shown that older folk adjust to enjoying a less cluttered and more manageable lifestyle. Children are very often able to take over some of the excess furniture, books and other items.”
Discussing the disagreements likely to arise, Cape said,
“Family disagreements are a common problem when retirees contemplate moving. Experience, however indicates clearly that once the retiree has settled, the majority are glad to have made the move. Also, it is simply not true that older folk enjoy solitude. All retirement villages will tell you that older people usually benefit from having company – and their children are grateful to have them in a secure environment and have help at hand whenever needed.”
On the security issue, sale documents need to guarantee such items as electric fences, 24 hour guards, CCTV coverage of the complex, panic buttons( in units) and emergency/armed response. Riverside Gardens will have all these in place by the time of occupation.
On health care matters, the Life Rights contract ensures that health care is available to all members. Moving for health reasons later in life can be traumatic, so it is advisable to get into retirement centres with this “extra” sooner rather than later.
Mike Greeff, Chief Executive of Greeff Properties, comments that the fundamental problem facing virtually all retirees is the dislike (shared by all of us) of any big change in our lives – even though the change can be shown to be largely beneficial.
“Our job is always to be sympathetic, to allay these fears and to point out the huge benefits of CPOA complexes such as Riverside Gardens.”
Greeff Properties and Lloyd Properties are currently marketing 59 units in the Riverside Gardens retirement village in Diep River which is sold on the Life Rights system. Prices start from R855 000 to R1,65 million depending on the unit size.
For further information please contact Angela Labuschagne on 021 763 4120 or email angela@greeff.co.za
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12 June 2009, 09:02:10
Luxurious milnerton home comes on the market through rawson properties
Bill Rawson’s Chairman’s Choice recommendation was recently a Milnerton home which, a year ago, would have probably been sold for R1 million more than the current asking price of R2,95 million – an indication of the bargains now available on the market which, says Rawson, will not last for ever.
“This is, in every sense of the word, a luxury home,” said Karen Schwarz of Rawson’s Milnerton franchise. “It is s sited on a quiet crescent on a 1 288m2 plot and has superior finishes – full length glazing on certain façades, solid birch wood floors, maple cupboards and very subtle lighting.
“There are three bedrooms, two bathrooms, a fully equipped gourmet kitchen, a separate scullery and a cellar which currently serves as the owner’s private gymnasium but which could also be used as a family rumpus room, a workshop or to store wines.”
The garden is fully landscaped and the home has a swimming pool. It is close to all amenities, the beach, schools and the golf course. The Cape Town CBD and the V&A Waterfront are only ten minutes away (out of peak traffic hours) and the views of Table Mountain and Lion’s Head from most of the rooms, said Karen Schwarz, are “breathtaking”.
For further information contact Karen Schwarz on 082 899 8790 or Reinhard Schwarz on 082 440 3334.
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12 June 2009, 09:00:31
High Profile Property Executive Takes Over Rawson Port Elizabeth Franchise
Rawson Properties have sold their large Port Elizabeth franchise to a franchise principal, Verity Bigara, who has had 12 years of successful marketing selling and management in property and who, says Tony Clarke, MD of Rawson Properties, has also managed a Pam Golding Properties branch.
Bigara started her property career in KZN, moved to George for five years and then to Port Elizabeth, where she was a branch manager for five years. Her husband, Duncan, is a senior partner in MDA Architects.
She was approached by Rawsons to take over this franchise because, says Clarke, she has an impressive track record.
The franchise’s office is at 8 Whaley Place, Walmer, but Bigara plans to open a second office in the western sector of PE and is also looking for an independent franchisee for the Uitenhage and Despatch area.
“We aim to become a dominant presence in PE by mid-2010,” she says.
Right now, she adds, the Port Elizabeth residential market is at what is likely to be its lowest point, from which, she predicts, it will begin to climb upwards towards the end of this year.
“Prices are on average 30% down from their early 2007 levels. However, we are in the strong position of having low overheads and of running a rental property agency, so we can only grow from here. We are also not confined to any one market, or area – we can handle anything from an entry level home to a multimillion rand luxury home.
Her own strengths, she says, have traditionally lain in the upmarket sector which at PE has survived the recession slightly better than other sectors, but she will definitely not be confining herself or her agents to this.
By mid-2010, says Bigara, she plans to have at least six agents on her staff – and by then, she predicts, the market will be humming.
“We are, however, very selective and will be looking only for agents with good track records and proven successes.”
All Bigara’s operations to date, comments Clarke, have been characterised by high ethical standards and transparency.
Bigara confirmed this: “We know that value of building up trust and forging long-term links with clients. This will be our goal here. We are quite confident we can be a major player in the PE property world within a year because we are getting great back-up from our head office and the Rawson brand is much respected.”
For further information contact Verity Bigara on 041 581 7708 or email portelizabeth@rawsonproperties.com.
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12 June 2009, 08:59:24
International estate agency group Harcourts now has an office open in Plettenberg Bay, where a top team of agents from another large real estate company have converted to the new brand.
The office, located in the Bayview Centre, is headed by Debbie Cairns, a well-known local property personality, along with teammates Sue Harvey and Stephen and Lisa Ritchie, who collectively have 33 years of real estate experience and have won a stack of industry awards.
Says Cairns: “Harcourts is a dynamic company that is doing great things. The training and systems enable us to offer a superior client service and we’re looking forward to being part of this exciting global group and channelling the benefits to homebuyers and sellers in Plett.”
She notes that while the Plett property market has been affected by the recession, it is set to turn around within the next nine months. At present properties at the low and high ends of the market are selling the best, with cash buyers coming to the fore.
The introduction of the Harcourts brand to SA follows last year’s purchase by Harcourts International of a share in the Homenet group, which has now become Harcourts Africa and is in the process of rebranding all its offices around the country.
Already the fastest growing real estate group in Australia and the biggest in New Zealand, Harcourts also operates in China, Fiji, Indonesia, Singapore and Zambia and has been rated by world real estate authority Stefan Swanepoel as one of the top five international real estate brands.
It currently has more than 600 offices employing 4000 sales consultants who sell more than $19,5bn worth of property every year.
“It is also a fresh and dynamic brand that represents the next generation of estate agency practice and will inject new energy into the generally stale SA real estate industry,” says Harcourts Africa CEO Martin Schultheiss.
“All our franchisees are already starting to implement the Harcourts International business systems, marketing methods, technology and tools, and these will also give them a huge head start in the struggle that local real estate companies will soon be facing if they want to compete in an increasingly multinational business.
“What is more, their clients will see the benefits in a far superior, value-added service offering.”
ISSUED BY HARCOURTS AFRICA
FOR MORE INFORMATION
CONTACT DEBBIE CAIRNS
ON 082 854 1812 OR VISIT
www.harcourts.co.za
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05 June 2009, 09:55:22
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Edition 22 of 2009, Friday, 05 June 2009
Dear Reader
In his first major speech President Jaco Zuma on Wednesday said that South Africa must act now to minimise the impact of the global financial crisis on the poor but still has to spend wisely. Yes this might be true but easier said than done. Housing, having your own property, currently stays a problem. Where is it all going to end? The million rand question, who is to be believed?
 “Things are definitely looking up in the residential property market, with a number of factors combining now to give consumers their confidence back.” This according to Chas Everitt’s CEO, Berry Everitt. “The first of these, of course, is the series of rate cuts since December that has brought significant relief to those with home loans to pay off - and helped many people to keep their homes. The second is the fact that the banks are much more approachable than they were in previous economic downturns and are really making great efforts to assist homeowners who are still in financial distress and in default on their home loan installments. They are offering several different options to help these owners avoid having their properties repossessed. The third factor is the re-emergence of serious buyers and investors who perceive that the market is primed for an upturn and that prices are not likely to get much lower than they are now.
Many of these buyers have significant cash resources and are not looking for 100% bonds - and at the same time we are seeing the banks become somewhat more flexible on their deposit requirements anyway, so the bond approval rate is starting to rise.
And this of course means more successful sales, which combined with rising economic confidence as we go into the final phase of preparations for the 2010 Soccer World Cup, bodes very well for the coming summer.”
There’s a wintry chill blowing through SA’s residential property data. Generally, prices will keep falling, perhaps until the end of this year. However, despite the hammering property has been given globally and locally, the SA house market has shown itself to be amazingly resilient, with an expected 10% to 15% peak-to-trough fall far milder than that of many other countries. Pam Golding Properties executive director Ronald Ennik sticks to his forecast of a 10% fall in 2009.
| Seeff chairman Samuel Seeff reckons that by the end of 2009 the national average price will be as much as 15% down from its 2007 peak. No winter warmth here |
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| “With South Africa officially now in recession, conditions in the South African economy are hampering the pace of residential demand growth despite a series of interest rate cuts having already taken place," FNB property strategist John Loos said. Home values still falling |
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| South Africa is unlikely to see another residential property boom in the foreseeable future and a full-scale revival in residential property is probably two to three years off, says Bill Rawson, Chairman of Rawson Properties – but, he adds, the turnaround point and the beginning of the upswing have already been reached and several encouraging signs are now already evident. Bill Rawson still sees signs for hope |
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| Despite the fact that the economy is now in recession - or perhaps because it is – the residential property market is currently in a rare state of perfect equilibrium. So says Lew Geffen, chairman of Sotheby’s International Realty in SA, who notes that financially capable homebuyers who were simply “not interested” last year are now coming out of hiding as they perceive the market to be at or near the bottom of its cycle and set for an upturn. “With buyers still very cautious and cagey, sellers should definitely not read this interest rate decrease – or the next one – as a signal to raise their asking prices. They should rather take the opportunity to conclude a deal more easily and move on to their next home at an advantageous price.” Market now perfectly balanced, says Geffen |
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It is a year ago that Mr. Geffen’s, in a company memo to his agents, warned that the property market was even worse than the banks have been suggested. Who can still remember the shock waves this memo created in the property industry? Was he right?
South Africans face other economic challenges with the result that the cut in the interest rates is to have a mute effect on the property market. Do you agree? Send your viewpoint to news@cyberprop.com
Enjoy!
The editor
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05 June 2009, 08:16:16
Harcourts Africa is expanding rapidly, having added a total of 18 new offices to its stable since the introduction of the brand to SA at the start of the year.
“And this is on top of our 100 existing Homenet offices that are in the process of converting to the new brand,” says Harcourts Africa CEO Martin Schultheiss.
“All our franchisees have already started to implement the Harcourts International business systems, marketing methods, technology and tools, and these will give them a huge head start in the struggle that local real estate companies will soon be facing if they want to compete in an increasingly multinational business,” he says.
He adds that the rate at which new offices are joining the group is accelerating. “We are now signing up offices at the rate of one every three to four days,” he says.
The new offices are spread right across the country and with representation in most regions. Four offices on the West Coast, several in KwaZulu-Natal as well as offices in Gauteng and on the Garden Route have joined the brand, with a particularly strong showing in and around Cape Town.
“The Harcourts brand, ranked among the top five in the world, is in effect injecting new DNA into the local real estate market. We are critically aware that consumers are faced with tough economic conditions and that they want the best possible value for their money.
“The Harcourts model has proved its mettle internationally and combines top technology, e-commerce and training with a dedication to service and putting people first – a vision that will undoubtedly find favour among consumers facing challenging times.”
The Harcourts International group currently has more than 600 offices worldwide employing 4000 sales consultants that sell more than $19,5bn worth of property every year. It is the fastest-growing real estate group in Australia and the biggest in New Zealand and also operates in China, Fiji, Indonesia, Singapore and Zambia.
ISSUED BY HARCOURTS AFRICA
FOR FURTHER INFORMATION CALL
MARTIN SCHULTHEISS ON
031 201 1060 OR VISIT
www.harcourts.co.za
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05 June 2009, 08:15:08
CENTURY 21, the world’s biggest property group, has now opened an office to serve homebuyers and sellers in Johannesburg’s “new South”.
Based in Mulbarton, CENTURY 21 Royal Properties will address the needs of property consumers across the market spectrum, selling everything from entry-level flats to multi-storey mansions, says principal and owner Neels Potgieter.
“There is a lingering perception that the southern suburbs are somewhat downmarket. Nonetheless there is a widening appreciation of the South’s selling points: good infrastructure in terms of roads such as the M1 and the N12, good schools and shopping facilities such as Southgate, The Glen and Comaro Crossing and good access to all points of the Johannesburg compass.
“What’s missing from the South are more employment opportunities, but in time this too will no doubt be remedied as businesses increasingly identify and explore the potential of the area.
“Moreover, the economic vibrancy of the area is underlined by a sound property market which has weathered the downturn better than most.”
Potgieter says prices start at around R800 000 for a three bedroom home in Mondeor, ranging up to the multi-millions in the more upmarket suburbs such as Bassonia, Glenvista and Mulbarton, which have been virtually immune to the economic woes.
“On the other hand, as might be expected, entry level areas such as Mayfield Park, Kibler Park and Winchester Hills have been affected, with prices having dropped by about 10 to15%, and this spells opportunity for keen buyers.”
In this climate, he notes, the new office is doing exceptionally well because of its close relationships with the lending institutions and the emphasis placed on pre-qualifying buyers for bonds.
“Indeed, we are successful with about 60% of our bond applications, as opposed to the market average which I understand, is as low as 30% in some areas – and we are seeing the property market in the South really come into its own.”
ISSUED BY
CENTURY 21 SOUTH AFRICA
FOR MORE INFORMATION
CONTACT LINDIE BOW ON
011-884-2202 OR VISIT
www.century21.co.za
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04 June 2009, 11:43:44
The SACCI Business Confidence Index (BCI) declined marginally to 81.8 in May from 81.9 in April, again confirming that there is no evidence yet of an approaching recovery.
From a slow start of 82.4 in January 2009, the BCI has now remained around the 82 level for the last few months. The index average for the first five months has been 81.9 - which is 11.7 points lower than the average for the first five months of 2008.
"Business confidence was under less downward pressure in May as the business environment recovered from the impact of fewer business days in April 2009. Nonetheless, liquidations were 47 percent higher in the first four months of 2009 than in the first four months of 2008 while negative month-on-month changes were also recorded for the sub-indices on real retail sales, import volumes and export volumes. An exceptional number of six of the thirteen sub- indices remained virtually unchanged between April and May 2009," SACCI said.
Emerging trends suggest that improved prospects for the world economy are on the horizon. Although sentiment helped to move markets ahead of real performance, it nevertheless signals a changing business mood, SACCI added.
"The path to recovery from the global recession may be drawn-out as some structural corrections have to take place in advanced economies before filtering through and impacting developing and emerging economies.
"The recession is causing adjustments in the local economy that could result in structural difficulties over the longer term. Noticeably, the decline in manufacturing output could hold serious consequences for investment and job prospects," SACCI said.
"SACCI believes that the recovery in business confidence will be characterised by a laboured process rather than a sudden turnaround," it added.
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03 June 2009, 11:40:15
The rise in popularity of sectional title ownership over the last three and a half decades is a testament to the fact that sectional title ownership is fast becoming the preferred home ownership option for both resident owners and buy-to-let investors. Yet this complex form of ownership is still widely misunderstood. Many people put pen to paper without fully or even vaguely understanding the concepts relating to sectional title.
Here is a list of the basics to help get you started…
Unit
When buying into a sectional title scheme, you buy a composite thing called a 'unit' which consists of a section plus an undivided share in the common property.
Section
A section is what people often refer to as a 'flat'/'townhouse'/'apartment' and is exclusively owned by the owner to the mid-point of its floors, walls and ceilings.
Common Property
The common property is the rest of the land and buildings not contained in sections, such as garden areas, driveways, foyers, lifts, staircases, passages and so on. Every owner of a section also owns an undivided share in the common property which means that theoretically every owner may use every part of the common property and that no owner may appropriate a portion of the common property for his sole use.
Exclusive Use Areas
In practice parts of the common property, such as parking bays and balconies, may be set aside for the exclusive use of a particular owner/s and these parts are referred to as 'exclusive use areas'. This does not mean that the holders of exclusive use rights own these areas; they simply have the right to use them to the exclusion of the other owners. Exclusive use areas remain part of the common property and are therefore owned by all owners of sections in undivided shares.
Participation Quota
The participation quota is a fraction or percentage used to determine such things as the size of an owner’s share in the common property, the value of an owner’s vote, an owner’s financial contribution towards the running of the scheme (his levy) and the portion of an owner’s share of the debts of the body corporate. In a wholly residential scheme an owner’s participation quota is always calculated by dividing the floor area of his section by the total floor area of all the sections in the scheme.
Body Corporate
The body corporate is the management body that exists to administer the land and buildings that make up the scheme. Unit owners are automatically members of the body corporate from the moment transfer takes places and they continue to be members until they cease to own a unit in the scheme.
Trustees
These are persons elected by the body corporate (by owners at the annual general meeting) to carry out its functions and duties. The trustees make day-to-day decisions on behalf of the body corporate but it is important to note that the trustees are not 'in charge' of the scheme. They are the servants of the body corporate; owners hold the ultimate decision-making power and can give the trustees binding instructions.
Managing agent
In most medium-sized and large schemes the trustees appoint a professional manager to help them carry out the functions and duties of the body corporate. This person is referred to as a managing agent and is required to possess a valid Fidelity Fund Certificate if s/he in anyway manages a scheme’s levy income.
Management and Conduct Rules
The Sectional Titles Act 95 of 1986 ('the Act') is the legislation that governs sectional title schemes in South Africa. The Act prescribes two sets of rules, the Management and Conduct Rules, which control the administration of schemes and the behavior of owners and occupiers. A developer of a scheme may choose to adopt these rules in their prescribed form, or to adapt the rules to suit the particular needs of the scheme. The body corporate can also amend their provisions at a later stage. These rules, in their prescribed or adapted form, are binding on both owners and occupiers of sectional title schemes.
Ordinary Levies
The trustees estimate the body corporate’s expected expenditure for each forthcoming financial year, take this budget to the Annual General Meeting for approval by owners and, once approved, they divide the estimated expenditure between the owners (generally in accordance with each owner’s participation quota) to work out each owner’s ordinary levy. After notice each owner is liable to pay levy contributions, generally in monthly instalments.
Special Levies
If a necessary expense arises during the course of the year for which the body corporate did not budget, the trustees are entitled to raise a 'special levy'. The trustees can decide whether the special levy is to be paid in one lump sum or in instalments.
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02 June 2009, 11:42:25
Have you been declaring the rental income received on your investment properties? Non-declaration of rentals received — after deducting the appropriate expenditure — is a contravention of the Income Tax Act.
With the constant improvements in the efficiency of tax collections by the South African Revenue Service (SARS), it is very likely that such non-declarations will be detected, says Paul Nelson, director of Johannesburg-based auditing firm Nelson Financial.
Sars requires landlords to draw up financial statements declaring the profits made on any rented property. If several properties are let by the same landlord, these statements can be consolidated.
Writing in the Property Signposts newsletter, Nelson notes that any expense actually incurred in relation to the letting of the property or properties may be noted in the statements and deducted from the gross rental when determining the taxable profit.
Such expenses are typically interest paid on the bond, assessment rates, costs of repairing and maintaining the property, insurance paid on the property and any levies paid (sectional title and home owners' associations).
"The Act generally allows for revised assessments to be issued for three years after an assessment is issued. However, where income has actually been omitted this three-year period does not apply allowing Sars to re-open any year of assessment for which income has been omitted," he says.
"And if you have not declared your rental income in past periods it is advisable to approach SARS and settle the matter rather than to adopt the wait-and-see approach. This will save you worry and perhaps the cost of paying the additional taxes and interest that SARS can impose.
"It is recommended, though, that you make use of the services of a reputable tax consultant or accountant to approach Sars on your behalf — and to ensure that the net rental income received is properly calculated and disclosed in your current tax return."
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01 June 2009, 09:40:43
The international Harcourts real estate group has opened its first Gauteng office in Boksburg.
Named Harcourts Premier, the office is headed up by Samantha Laing, who was previously a member of another real estate franchise group but decided on the strength of the Harcourts value proposition to convert to the new brand.
Recently rated by world real estate authority Stefan Swanepoel as one of the top five international real estate brands, Harcourts operates in Australia, New Zealand, China, Fiji, Indonesia, Singapore, Zambia and Botswana as well as South Africa and has more than 600 offices, 4000 sales consultants and a sales volume in excess of $19,5bn a year.
Following last year’s purchase by Harcourts of a majority share in the Homenet group, all Homenet branches in SA will in due course also convert to the Harcourts brand.
“Harcourts is exceptionally professional and their training is world class,” says Laing. “They offer great networking capabilities and we’ve experienced fantastic support from head office and the marketing team. The difference is really tangible and Harcourts’ positive attitude has already rubbed off on my own staff. We’re looking forward to being a part of this international brand.
“And the timing couldn’t be better. Buyer sentiment is improving and sales, activity and enquiries are increasing across the board. Indeed, Boksburg homes priced between R800 000 and R1,2m are selling well at present.”
Laing has been involved in the real estate industry for almost five years. She holds a BCom in Communications and has only to submit her “portfolio of evidence” to become RPL accredited.
According to the Swanepoel Trends Report for 2009, Harcourts International is an organisation that is leading the charge in expanding successfully into other countries and continents, thanks to its clear purpose and youthful business philosophy.
Martin Schultheiss, CEO of Harcourts Africa, says it is also a “fresh and dynamic brand” that is going to make a huge impact on a generally stale SA real estate industry by lifting its local franchisees to the next level of operation.
ISSUED BY HARCOURTS AFRICA
FOR MORE INFORMATION CALL
SAMANTHA LAING ON
082 447 7211 OR VISIT
www.harcourts.co.za
Distributed by/ versprei deur
The Mega/ Press Network
Pse direct any enquiries to
012-333-6644,
073-946-9649 or
megw@telkomsa.net
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29 May 2009, 09:32:13
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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
CLICK HERE FOR MORE
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25 May 2009, 10:59:13
Your new house has to meet the needs of your lifestyle. When you visit a new property, keep your requirements in mind. Assess the neighbourhood as well as the house's internal and external state of repair. Look at other structural and physical criteria and don't feel shy about questioning why the current owners are moving!
Here's a checklist of questions you should ask:
Ask the seller
Why are you moving?
How long have you stayed here?
Any break-ins?
What are the neighbours like?
Ask the estate agent
What are the price trends in the area?
How long has the house been on the market?
What is the average turnaround for house sales this area? Why?
Check out the neighbourhood
Is it close to work/schools/friends and family/hospital/doctor/etc?
Is it positioned near shopping centres/highway/sports facilities/central business district?
Is there a police station/fire station in the neighbourhood?
Is it near power lines/vacant land?
Are there developments scheduled in the area/is the area well established?
Is the area noisy?
What is the traffic like at peak times into and out of the area?
Check out the property
Is there adequate parking space for guests?
How many garages/carports?
Pool/outside entertainment area?
Established garden?
Is there space to extend?
Check out the inside of the house
Number of bedrooms/bathrooms?
Is the kitchen modern/fully fitted?
Do al the taps/lights work and do the toilets flush properly?
Are there odd shaped rooms or colour schemes?
Dining room/TV room?
Indoor entertainment area/games room/study?
Laundry room?
Check out the security
Is the crime rate high/is there an adequate security system installed?
Is the perimeter walled?
Number of gates/what type of fencing?
Burglar bars?
Alarm system/armed response?
Security booms/neighbourhood watch?
Street lights?
Ask about any possible problem areas
Damp/cracked wall or paving?
Leaks/drainage?
Lifting tiles/stains?
Wood rot?
Other?
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25 May 2009, 10:56:55
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.
With the help of some creative financing I have been able to buy commercial property and finance it fully, without the use of other properties or securities. I have also bought property for 'free' using only the bank’s money as my rent covered the bond and rates and taxes from day one.
I have seen that using the correct people, channels and structures have led me to be able to negotiate a better rate and give me better terms on the financing side.
For example: getting a better rate of only 0.5 percent on a R1-million bond with a 15 percent interest rate will lead to a saving of about R305.70 every month over a 20 year period. If this saving was invested on a monthly basis, yielding 15 percent (either by putting it back in the bond which saves 15 percent or investing elsewhere) for the whole 20 years the total amount would be an extra R457 706.11 after 20 years. Not too bad if you do this on two, three or four properties over this period!
One of the biggest 'clichés' that I have found to be true is that your own bank is your friend and because of the 'relationship' they have with you they will give you the best rate.
My dad banked with a specific bank (for his whole life as far as I know) and they also graciously allowed me to study all my years at Stellenbosch University by giving me a student loan. I also opened up my first 'real' non-student account with them and just knew that they would obviously credit me with the Venter generations’ commitment to them. When it became time for them to prove their commitment back when I bought my first property, they did not perform according to plan and were not keen to help.
In following property deals I have approached them directly and since then they have been very willing to lend me money. I guess that once you’ve bought your first property they believe you can do it again. The only thing was that the bank across the road was really looking for my business and was willing to give me a better rate, which I was very glad to accept.
I then started working through bond originators who were sharp and understood the system. They were able to determine which bank would give me the best rate and if I wasn’t pleased with the rate, the originator just logged the already compiled documents with another bank.
Banks have realized that their customers don’t like admin and don't understand the system; they would rather just accept the first bond offered to them by their own bank than go through the whole administrative process again.
This has led many banks to not quote their absolute best rate if an individual approaches his/her own bank directly rather than through an originator.
I have tested this and found that the rate my originator was able to negotiate with my own bank was better than the rate I was able to negotiate myself. At first I wanted to feel sentimental about this, but I soon realized that the feeling was not mutual and that my bank was only in it for one thing: to make money!
Since that day my originator has been very helpful when I buy a property by saving me money and loads of time and frustrating administration.
A good bond-originator therefore acts as an agent between you and the bank and negotiates on your behalf with a bank or banks to get you the best possible deal, saving you time and money because they understand the system.
They charge no fee and will not cost you a cent, because the banks pay them an amount for the administrative and business function they fulfil.
In order to get the most for your property, you must price according to the market
Establishing what the market is willing to pay for your house is essential in getting the most for your property in the end. Determining this price is possible through data from the deeds office. This makes it possible to determine what properties in your area have been selling for in the recent past. Any seller must take this into consideration when pricing his property to sell within a reasonable time. Most buyers will be using this same data when buying a property to make an informed decision on what the market price for a property is.
Remember that there is a difference between your property and the properties that have sold in that area. This difference can be with regards to three factors that also determine whether your home will sell for more or for less than the last few properties that have already sold.
The three factors that determine your price (in order of importance) are location, size and amenities. Of these three, location will always be the most important because it is permanent and cannot be changed.
Size will be second and amenities will account for the least. One of the reasons for amenities being less important is because people are different and they have different styles and tastes. I have seen in my work how people have changed or revamped a property only to have the new owner come in and change it again.
How did you determine the value of the home you are living in right now when you bought it? You compared it with other homes for sale and that have sold. Buyers still determine value by comparing your home for sale with other homes for sale at the same time and also with homes that have sold in the recent past. The internet has made this task a lot easier today than 10 years ago and it is likely that more information will be available to buyers in the future.
To see whether a property will sell within a reasonable time or not, I have a system in place which shows a seller what the selling price should be and what the financial and practical effect would be of not pricing in that range.
This has proved to be very valuable to sellers in setting an objective standard against which they can measure their price and thereby sell within a reasonable time. Not being able to sell within the desired timeframe leads to many other hindrances such as emotional stress, friction and a lot of time and effort which cannot always be quantified in rands and cents.
The right property with the wrong tenant is the wrong property
To illustrate my point best I’ll share an example from my own life. I bought a property in the North West Province in a little mining town called Stilfontein some years ago. I was very pleased with the price and the rent was able to cover my bond.
I was still reasonably new to being a landlord and had no system in place to determine whether the tenants I placed in my property were good tenants. They appeared very nice, seemed to have good, stable jobs and even kept the place in a reasonable condition without me asking. They even paid on time!
However, my problems began when either the police or my dad who lived in a town close by phoned me (I can’t remember who phoned first, because one tends to forget bad experiences!). My dear tenants have decided to leave overnight and without telling anyone.
Until today I am still not sure where they are. With me not living close to the property I had no idea they were gone and nobody would have noticed until some local people thought that they had better use some parts of my house that stood all by itself.
I had no idea that a house could be broken down into so many parts (if one can use the word 'parts'). They helped themselves to a good working geyser, a toilet, taps and even the little copper-like things that kept the windows in place. The electrical system also had value to them as well as anything that looked like a handle or door.
I have no idea how some of those little things could add value anywhere else, but I am convinced that if they were able to they would have broken down the bricks and sold them one by one. The damage amounted to about R30 000 if I remember correctly and after a lot of administration my insurance paid most of this amount. This was, however, only the start of my problems.
As soon as I had fixed the property I found new tenants. While waiting for them to move in our entrepreneurial friends saw another opportunity, this time with brand new items to pick from the tree and sell to their same customers.
They repeated their crimes and I had to go through the same building project all over again. I had to employ a fulltime security guard that cost me a small fortune during the building period before my tenants could move in. (I think I had to find new tenants again and also spent about R10 000 extra to increase the security on the premises.) Why this long story? All of this could have been avoided if only I had some very basic systems in place when it comes to finding, screening and contracting with new tenants.
Today I have a basic set of rules and procedures that I follow which has made my life as a landlord an absolute breeze and the risks absolutely minimal.
Tenants are usually creatures of habit and tend to repeat what they have done in the past. Determining their history has been priceless in my screening process when determining which tenant to allow in my property.
Even if I work through a rental agency I still have some basic screening procedures in place to verify that they check the credit rating of my prospective tenants (and their spouse!), their salary amount, employment time and references from previous landlords they had.
Work with people who practice what they preach
I have made a decision to work primarily only with people who practice what they preach. A doctor that is always sick due to an unhealthy lifestyle will probably not be able to keep me healthy. In the same way, a financial advisor who is broke is not the one who is going to get my money.
Whoever wants to get my business in a specific area must first have shown themselves to be faithful and successful in the very area which they say they can help me in. That they in fact have something to offer out of an overflow and not out of a need.
The property attorney I use when buying or selling property is a property investor herself. The person I get my health advice from (my wife) is a successful and very healthy (and very good looking!) biochemist. The person who does my tax could retire at the age of 38; he's a brilliant businessperson and doesn't hand SARS 'n cent more than he has to.
Wherever it is possible, I enjoy buying property through an agent who understands property, talks property and also walks property.
Warren Buffet says he'd be worried if the CEO of a company is not buying his own company's shares. I believe if someone is trying to sell you something they are not buying themselves, be worried!
In property it is important to have a team around you when buying or selling.
Only allow competent and trustworthy people to advise you. My wife is trustworthy, but should I be in need of someone to take out my tonsils, using her would mean suicide!
Both competence and trustworthiness are required. Competence is usually shown by a proven track record of success in a certain area and trustworthiness by getting to know someone personally or finding out about them from other people.
There are many different areas where it helps to tap into the expertise of professionals and I have built up a trusted team of advisors that supports me when I buy or sell a property. This includes an attorney, a bond originator (financing agent), a handyman, a town planner, an architect, a short term and life insurance agent, a good tax advisor plus a few other critical contacts.
I’d advise you to build up your own team of people whom you trust.
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25 May 2009, 10:55:45
Price growth likely, not guaranteed.
Over the past eight years I have seen properties in most areas performing phenomenally and many people have said you cannot go wrong. Being involved as an agent, though, I see many properties that cannot sell in the current market for what was paid for it a few years earlier.
Many disheartened sellers are looking to blame someone, but it remains a fact that you make your money in property when you buy the property and not when you sell. Buying at the right price still remains the most important factor. You should therefore make sure that when you buy you are paying a market related price and that you are able to pay the bond repayments should the interest rate rise significantly for a few years.
I have seen capital growth of 40 percent in three months and I have also seen negative capital growth over a period of two years.
My advice would be to work with an agent who buys property him-/herself and who can give hands-on advice and not just 'book knowledge', because they practice what they preach.
This is my recommendation even if you are not buying primarily as an investment, but also as a house to live in, because your home could ultimately help you to become wealthy or, if you are uninformed, poor. Book knowledge is important, but it is only the starting point!
Some areas have better growth than others.
Knowing which areas have grown well in the past is a good basis to start from. Most up-to-date realtors (estate agents) in town will be able to give you these figures as a print out which would give you a basic indication.
Current trends and developments in, and perceptions about, the city or town you're interested in will also have an effect on prices. This should only be used as a starting point and not as an absolute for what the future holds.
Cash flow can make or break you.
During the past few months I have spoken to many anxious sellers that have bargained on massive capital gains which did not realize. Instead their monthly cash flow was placed under tremendous strain. For some the only alternative was to sell at a price where they had to cut their losses and move on. Some were not that fortunate as the banks had to take back their properties.
I have only been around in the property industry long enough to see one upswing and one downswing, but through literally tons of courses that I have done I have gained valuable insight from people that have been around through various cycles in the market.
It is certain that property prices grow in cycles and have been growing in value literally for centuries. The way to capitalise on this growth is to buy property for the long run and to hardly ever sell.
Attending some of the latest bank execution auctions has made me realise that cash flow (or the lack of it) can definitely make or break a property investor or owner. When doing sums before buying a property I advise clients to be very conservative in their approach.
Take the highest interest rate over the past 10 years and see whether you’d be able to keep on paying your bond should interest rates rise to that level again. Personally I do not think they will go that high again, but then again there are no guarantees.
The highest interest rate in this period was in 1999 when interest rates made a turn at an incredible 25.5 percent. To those whom this is not news, I know that you were influenced by this.
To the rest of us I believe it is important to look and learn from history and never to over-commit financially. The current economic crisis (2009) was caused and fuelled primarily by one thing: greed!
When calculating whether or not you can afford a property, remember to take into consideration all expenses. This will include rates and taxes, levies, insurance (long term and short), home owner’s association fees if applicable and a portion for general repairs as well as maintenance. Also allow a conservative vacancy rate of at least one month a year.
It is important to do a calculation of the tax that will be payable if the property is bought to be sold for a profit, either income or capital gains tax depending on your situation.
There are opportunities to buy properties well below market value.
Some of the properties on auctions are currently selling at about 60 percent or less of the outstanding bond amount.
As an example, let’s suppose that someone owes R1-million on his property bond and he falls into arrears. The bank will in some areas allow the property to be sold for about R600 000.
This results in a serious opportunity to buy below market value, if you know beforehand how the banks are doing their calculations and at what price they’d be willing to sell the property.
There are a few things that must be incorporated into your calculation if you are buying at bank auctions. (Please note that these auctions that I’m mentioning are not the auctions that big companies are advertising in the newspapers on weekends. They are properties that are still in the name of the owner and are about to be sold in execution. They are also not 'properties in possession', which means that the bank decided to buy an execution property back and are now trying to sell it at a price that is either market related or very close to the market price.)
I know of people that went to execution bank auctions uninformed and have burnt their fingers really badly, not knowing what extra costs they should have incorporated in their sum of whether they should buy or not. Some even bought property bidding for the maximum price and only realized afterwards that they only bought a 50 percent share in a property with the other 50 percent partner being someone they really don’t want to be involved with in a business sense.
I am currently buying these kinds of properties myself and am using a skilled person who understands the system and who provides me with valuable information that is crucial in the decision making process.
Because of differing rules in different areas in South Africa I cannot see myself doing this without his help.
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25 May 2009, 10:54:38
The City of Cape Town has announced a R786-million upgrade to its existing water and sanitation infrastructure.
This is an important part of the city's current five-year development plan and amounts to almost 15 percent of the total R5.5-billion capital expenditure budget for the forthcoming financial year.
With the latest project Cape Town aims to further enhance its attractiveness as both a tourist and investment destination.
Historic
Cape Town is South Africa's oldest city and traces its history back to the arrival of the first Dutch settlers in 1652, although Portuguese navigators had discovered the area some three centuries before. The existing infrastructure, while not quite as old as the city itself, therefore needs careful and constant maintenance.
Old and leaking pipes are a financial burden to the city. Cape Town loses almost 19 percent of its piped water to burst pipes and leaks in homes and offices. This costs the city more than R4-million every year. The international standard for such losses in other world-class cities is 15 percent.
A complete replacement of Cape Town's water system would cost R23-billion, said Clive Justus, the mayoral committee member for utility services. "The backlog of water mains replacement would become unmanageable if infrastructural replacement is not accelerated now," he commented in a statement.
Forward planning
By investing into and accelerating the replacement of faulty water mains, city management plans to avert a crisis such as that experienced by power utility Eskom in early 2008 when inadequate infrastructure was unable to meet the country's power demands. The Western Cape was the hardest hit and suffered rolling blackouts for many weeks, as well as a severe dent to its economy.
The international norm for water pipe replacement in terms of distance per year is one percent of the total network. Cape Town is currently replacing water pipes at a rate of 30 kilometres per year, but this is a big improvement on the 7.4 kilometres per year that was achieved just three years ago. The immediate goal is the replacement of 40 kilometres of pipes by mid-2009, which still amounts to just 0.5 percent of the total Cape Town network.
The 8000 kilometre wastewater system is also due for treatment. In the northern suburbs, where development is rapid, the system is under particular stress. From July 2009, a R56-million upgrade project will see the replacement of pipelines where it is most needed.
Other projects currently underway include the allocation of R280-million to increase the capacity of the Potsdam Wastewater Treatment Works from 32 megalitres per day to 47. The project is scheduled for completion in mid-2009. Another state-of-the-art greenfield facility is under construction at Fisantekraal, situated 10 kilometres north of Durbanville. Greenfield refers to a plant that is built on previously undeveloped land.
Both plants together will provide treatment capacity for about 140 000 homes in Cape Town.
Extensive upgrades
The city is in the throes of extensive upgrades in several sectors.
The refurbishment of Green Point Stadium, a 2010 Fifa World Cup venue, is around 70 percent complete and, according to the city, is on track for completion and handover in December 2009. The R4.5-billion project is set to become an eye-catching landmark, while the surrounding area of Green Point Common has also been revamped and will include a golf course and other sporting facilities by the time it is complete in March 2010.
Cape Town's public transport system is getting a massive overhaul with the implementation of the Integrated Rapid Transit system. Phase one, which encompasses the airport-city and the city-stadium routes, is expected to be on the road in time for the World Cup in 2010.
City planners are also developing a stronger network of roads in suburban areas. This will include developments such as walking and cycling routes and better provision for public transport.
Africa's leading airport
Cape Town International Airport, voted by the World Travel Awards as Africa's leading airport no less than seven times, will see the opening of its new Terminal 2010 at the end of 2009. About R1-billion has been ploughed into the terminal, which will accommodate the domestic and international volume until 2015. Two new parkades are also nearing completion.
Business, education and private internet usage are getting a R400-million boost in the form of a brand-new fibre optic network. Phase one, the laying of about 202 kilometres of cable and connection points in key municipal and educational buildings, is in progress and the second phase will involve the expansion of the network to the suburbs, especially those that have no access to modern telecommunications.
The fibre optic network is one of the factors that earned Cape Town a spot on the Intelligent Community Forum's 2008 list of the world's most intelligent cities. It also fulfils Fifa's stringent telecomms requirements for 2010.
As if this weren't enough, Cape Town is also investing heavily into the business of entertainment, with a R430-million film studio under construction just 20 kilometres out of the city. The Cape Town Film Studio will boost the filming industry in Cape Town, which is already the darling of international filmmakers. The city has seen film crews for both high-profile feature films such as Free Willy 4, Goodbye Bafana, 24: Redemption and Blood Diamond, as well as commercials, scurrying around its streets.
The studio complex is expected to open its doors early in 2010.
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22 May 2009, 08:39:24
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Edition 20 of 2009, Friday, 22 May 2009
Dear Reader
“We keep a close watch on the UK property market because SA selling price trends tend to be in line with theirs’, with this difference, that we have traditionally been less spendthrift and less inclined to over-borrow. The “Sunday Times” optimism ties in with what we have been saying locally for some time and it is encouraging to find that they see the end of price falls as not far off.” says Mike Greeff of Greeff Properties. This week we take a closer look at the International property market and place four articles of interest to our readers;
- Real Estate news - Dubai property market suffers as Western cash dries up - Dubai
- Recession-ravaged employees resist relocation
- Overseas investor interest in rural property skyrockets – New Zealand
- Foreigners circle local market, hunting bargains – Australia
 There has been an outcry over Standard Bank's home loan administration fee hike but it is not alone in jolting prices. An investigation by Realestateweb.co.za has found that the other big three have either increased or plan to hike their fees. It is not just Standard Bank
Co-ownership is the mother of all disputes. If you live or own a unit in a sectional title scheme and haven’t heard of this phrase — you will probably have experienced it in practice. Living in close proximity to other people often with different backgrounds and cultural beliefs, as well as co-owning areas of the land and building about which decisions need to be made, creates ample opportunities for tempers to rage and nostrils to flare. Bury the hatchet
KwaZulu-Natal is a province of South Africa, with an area of 86 967 sq kilometres. It is bounded by Lesotho, which is known as the mountain kingdom, Gauteng Province (west), by Swaziland and Mozambique (North), and by the Indian Ocean (East). During the past four centuries, many thousands of people from Britain and Europe have left their homes and sailed across the oceans, in order to make new homes in other countries, including South Africa. In Natal (Kwazulu Natal), the first settlement on the shores of Durban Bay was established in 1824 when two Englishmen, Lieutenants Farewell and King, obtained a grant of land from the Zulu king Shaka. This province is now also the “home” of the Comrades Marathon. The first Comrades Marathon took place on 24th May 1921, Empire Day, starting outside the City Hall in Pietermaritzburg with 34 runners. Today we see thousands of runners running this week. This weekend is Comrades weekend and we wish all our readers that will be participating “strong legs”. In Focus on, we take a closer look at Kwazulu Natal, South Africa
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22 May 2009, 08:21:08
The Aida Roodepoort North estate agency, one of the flagship operations in the Aida National Franchises stable, has changed ownership.
The new owners, Tarryn Williams and Charl Els, are taking over from real estate stalwart Verna Herbst, who has spent the past three decades in the industry.
“We are young and ambitious,” says Williams, “with a sound sales background. Although we are new to the property industry, we have years of sales experience and a deep conviction that property represents the most meaningful investment for the average consumer. People are our number one priority and we hope to build lifelong partnerships with our clients by securing them the best deals possible.
“We are also lucky enough that Verna has agreed to stay on as an agent and to act as our mentor for the first year, which will contribute to a smooth transition. Agent Jason Parker, the specialist agent for the prestigious Featherbrooke Estate, will also remain in our team,” she says.
While delighted with their new venture, the couple does not take the real estate industry lightly. “We believe the new qualification system for agents will ensure that only professionals who can offer high service levels will remain – it is definitely not a playground for agents who want to make a quick buck,” Williams says.
“The next three years are likely to be challenging, but we believe market conditions will improve. Interest rates are likely to stabilise at levels of between 8% and 10% while a review of banks’ lending criteria by 2010 may bring relief to borrowers – hopefully we will see the return of 100% bonds.”
The agency’s franchise area is extensive and a wide variety of property is available at prices ranging from around R550 000 to R15m. However Williams says most average family homes in the area can still be bought for less than R1,3m while exclusive properties in upmarket suburbs such as Constantia Kloof, Ruimsig, Featherbrooke Estate, Floracliff and others compare very favourably with the best that Gauteng can offer.
Issued by Aida National Franchises
Aida head office: 012 682 9600
Contact: Young Carr
Aida Roodepoort North: 011 462 3905
Contact: Tarryn Williams
Distributed by/ versprei deur
The Mega/ Press Network
Pse direct any enquiries to
012-333-6644,
073-946-9649 or
megw@telkomsa.net
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15 May 2009, 08:37:18
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Edition 19 of 2009, Friday, 15 May 2009
Dear Reader
South Africans are watching the Indian Premier League (IPL) day after day. For those who did not know the IPD was started by the Board of Cricket Control in India in 2008 and it is a new format of cricket called Twenty 20. But, it’s not all about cricket. It’s also about a festive time for cricket fans and it is a multi-billion dollar affair. It has emerged as the richest cricket league because it offers US$ 12 million prize money to the winning team. The runner-ups will get US$ 6 million. Two teams who lose the semi-finals will earn US$ 3 Million each. Even the teams who lose the game will also receive attractive prize money of US$ 1 Million.
Why focus on the IPL this week? The title sponsor for the league is real estate tycoon, DLF Universal. The DLF Group was founded by Chaudhury Raghuvendra Singh. The company is currently headed by Indian billionaire Kushal Pal Singh, who inherited the company from Chaudhury. Kushal Pal Singh, according to the Forbes listing of richest billionaires in 2009, now stands as the 98th richest man in the world. Will the property industry see new real estate tycoons or is the market “kaput”? Send your view points to news@cyberprop.com
Property trend analysts are impressed that in the first week of April mortgage loans granted in the US were 77% up on the April 2008 figure. A similar, though not quite so spectacular, rise was recorded in the UK for the same period, says Tony Clarke, MD of Rawson Properties. "Does this indicate that the recovery has begun? If one accepts the old maxim that USA and the UK set the economic patterns for the world, is it possible that in SA the long-awaited revival is not far off?" he says. New data gives good reasons for optimism
The finance, real estate and business services‘ sector including banks, insurance, property sales and rentals, lawyers and architects was found to be the chief money-spinner in South Africa. Bucks bigger in SA tourism than farming
NEWS! Residents in Bertrams, Soweto and surrounding areas should expect scheduled water cuts next week, Johannesburg Water said on Thursday. On 19 May these areas will be affected: Doornfontein, New Doornfontein, Troyeville, Fairview, Jeppestown, Jeppestown South, Malvern, Reynolds View and Kensington, the company said in a statement. The water interruptions will take place from 8am to 4pm, due to infrastructure upgrades. On 20 May, Soweto residents will be without water for eight hours, between 8am to 4pm. Water tankers will rotate around the affected areas, while additional tankers will be placed at Shell and BP filling stations and at the Shoprite supermarket.
Mining in this region of Mpumalanga dates back many centuries, when unknown miners worked quartz reefs in the area for gold. Proof of these diggings can still be found in this area. The history of this small delightful village dates back to 1873 when a miner, Alex Patterson, discovered alluvial gold on the farm named Ponieskrantz. He had left the Mac-Mac area to search for a place that was less congested. Though the discovery was kept as a secret, the inevitable happened when a second prospector William Trafford also discovered gold close by. What they had found in this beautiful valley drew optimistic gold panners and prospectors from all over the country and the World (news of gold strikes of this magnitude travel fast !).by www.pilgrimsrest.org.za Focus on Pilgrims Rest, Mpumalanga, South Africa
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The editor
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14 May 2009, 15:27:22
Homeowners under pressure to sell their property because of credit difficulties are advised to manage the process as far as possible.
Dr Willie Marais, national president of the Institute of Estate Agents (IEASA), says selling your home when you fall behind on mortgage repayments should be a last resort, especially if you owe more than the property is currently worth.
"This is what is called a 'short sale' in the US and it means that the home seller has to pay the bank the difference between the selling price and the outstanding bond amount — and on top of that find alternative accommodation. However, it may be necessary to protect the seller’s all-important credit record so that he or she can qualify for home financing in the future."
Get help managing the process
He says consumers who do find themselves in this situation should urgently enlist the help of a trained estate agent who will be able to manage the whole process efficiently and obtain the best possible price in the shortest possible time.
"Sellers should also inform their bank of their intentions if the selling price is likely to be less than the outstanding bond amount. They will also have to sign a debt agreement with the institution and make arrangements to pay off the shortfall."
Marais adds that it is quite human to keep hoping that matters will improve when you find yourself in a difficult spot, but says a more pro-active approach may well prevent more serious consequences.
Try to reschedule the debt
"The first response should be to approach the lending institution and try to reschedule the debt. The bank might be willing to extend the period over which the bond is repayable — for instance up to 30 years — in cases where the borrower’s financial difficulties are likely to be temporary."
Another option may be to rent out the home and scale down to cheaper rental property yourself — although this will only work if the property will achieve rental income considerably higher than the rental that the owner will have to pay for alternative accommodation.
"And if all other measures fail, homeowners can go for debt counselling in which case the bank will be informed and an intermediary will attempt to negotiate an acceptable agreement. Part of the agreement may be that the property is surrendered to the bank after which it will be attached after due legal process. Although this will wipe the debt slate clean, owners will not be able to obtain credit again before they have been rehabilitated in terms of insolvency legislation."
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12 May 2009, 15:50:36
Absa recorded the fastest drop in residential property values since November 1986, the bank said on Wednesday as it launched its April 2009 house price indices.
April 2009 saw the average nominal price of middle-segment housing declining by 2.7 percent year-on-year to R941 600, Absa said.
As was the case in recent months, house prices in April fell the most when it came to larger properties while small houses posted the smallest decline, Absa said.
"This is regarded as an indication of the strain experienced in the market for larger and more expensive properties, with buyers focusing on smaller and more affordable homes," Absa said.
Data recently released with regard to various short-term economic indicators such as manufacturing, production, mining production, retail sales, new vehicle sales and electricity production and consumption, pointed to the economy experiencing recessionary conditions.
Projections were for a contraction in the economy in the first half of 2009 before bottoming and recovering gradually in the second half of the year, Absa said.
Against this background, real gross domestic product growth for 2009 was forecast at -0.5 percent, putting pressure on employment and household income.
"In view of an expected poor economic performance this year, impacting employment and income levels, many households may remain under financial pressure despite the 3.5 percentage points worth of interest rate cuts since December last year and expectations of some further cuts in the near term."
Absa expected the housing market to continue experiencing relatively low levels of activity and downward pressure on prices until late 2009.
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12 May 2009, 15:48:08
Have you been declaring the rental income received on your investment properties? Non-declaration of rentals received — after deducting the appropriate expenditure — is a contravention of the Income Tax Act.
With the constant improvements in the efficiency of tax collections by the South African Revenue Service (SARS), it is very likely that such non-declarations will be detected, says Paul Nelson, director of Johannesburg-based auditing firm Nelson Financial.
Sars requires landlords to draw up financial statements declaring the profits made on any rented property. If several properties are let by the same landlord, these statements can be consolidated.
Writing in the Property Signposts newsletter, Nelson notes that any expense actually incurred in relation to the letting of the property or properties may be noted in the statements and deducted from the gross rental when determining the taxable profit.
Such expenses are typically interest paid on the bond, assessment rates, costs of repairing and maintaining the property, insurance paid on the property and any levies paid (sectional title and home owners' associations).
"The Act generally allows for revised assessments to be issued for three years after an assessment is issued. However, where income has actually been omitted this three-year period does not apply allowing Sars to re-open any year of assessment for which income has been omitted," he says.
"And if you have not declared your rental income in past periods it is advisable to approach SARS and settle the matter rather than to adopt the wait-and-see approach. This will save you worry and perhaps the cost of paying the additional taxes and interest that SARS can impose.
"It is recommended, though, that you make use of the services of a reputable tax consultant or accountant to approach Sars on your behalf — and to ensure that the net rental income received is properly calculated and disclosed in your current tax return."
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11 May 2009, 15:51:14
As house prices fall, buyers are becoming far fussier and are no longer settling for less than what they truly want — all the more reason for sellers to make their homes as appealing as possible.
Saul Geffen, CEO of ooba, says that sellers should be mindful of the "mood of selectiveness and increased desire for value for money" that currently pervades buyers’ mindsets.
"It’s a lot different to a few years ago," notes Geffen. "Buyers are now looking very carefully at properties and spending more time 'kicking the tires'.
"House prices are falling, so sellers should do all they can to present their property as attractively as possible to meet buyer preferences and realise full value on their properties."
Here are nine crucial things that will make a potential buyer want to pay less:
Rooms overcrowded with furniture
It might seem cosy to you, but if there’s no space to even turn around it’s not going to appeal to someone who likes space — and everybody likes space.
Bright carpets with patterns
You might be nostalgic for the 70's and retro is certain to be popular again someday, but carpets from decades past may not be your buyer’s psychedelic dream.
Badly-built extensions
If your home has an awkward extra room that disrupts the flow and form of the house, it’s not going to appeal to many people even though it means extra space.
Carpets in the kitchen or bathroom
This is probably quite an icky thing in most people’s minds and buyers will be thinking of the cost of removing the carpets. It might also lead people to think that you’re trying to hide something underneath.
Too many clashing colours
If your interior decorating looks like it was done so no colours felt left out, potential buyers may be looking for some money off.
Garden gnomes
Hide, hide, hide. Some people may think they’re really cute, but why take the risk of turning off buyers before they have even stepped inside?
Lime scale and dirt in the bathroom
When your potential buyers peer into the bathroom and see grime everywhere, they may well question what other surprises are tucked away and what else is in poor condition.
Gloomy lighting
Poor lighting can give a rather depressed ambience to any home. Bright equals cheerfulness so good illumination is a must.
Dirty light switches
If you haven’t cleaned your light switches for a long time, then be warned; to a potential buyer it could suggest that the wiring might be bad.
Says Geffen, "Although you may currently have one or more of the things listed above in your home, fixing them is a lot cheaper than ignoring them."
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08 May 2009, 11:03:33
Commercial lessee beware: check your contract to ensure that it ties in with your wishes
A recent court case has shown how absolutely essential it is for a tenant in a retail/commercial centre to understand in full the conditions under which he signed his lease.
Drawing attention to this case, Tony Clarke, MD of Rawson Properties, said that a pharmacist had bought an existing pharmacy in a mall complex and had then signed a lease in which, as in the previous owner’s lease, he was guaranteed that his would be the only retail of its kind in the centre.
To his dismay, he then found that the supermarket in the centre had a pharmaceutical division which offered stiff competition and which also had exclusive trading rights in its lease agreement.
The pharmacist accordingly took the landlord to court for breach of contract pointing out that the previous pharmacy owner had also had an exclusive trade clause in his lease.
On examining the documentation the court found that all three contracts, i.e. the two with the pharmacists and the one with the supermarket, had exclusivity clauses.
In the circumstances, said Clarke, the court was forced to stick to the accepted maxim, “He who is prior in time is stronger in right” and ruled in favour of the supermarket being allowed to continue to sell pharmaceutical products. Had the pharmacist not obtained a new lease but simply held onto the first lease (signed prior to that of the supermarket) the court would have ruled in his favour.
“Exclusive trading rights,” said Clarke, “are beneficial for specialised businesses such as real estate agencies, liquor stores, cinemas or photo shops but this case shows how vitally important it is to check that no other tenants have the same agreement.”
In certain cases, e.g. a food hall, said Clarke, businesses could actually benefit from being clustered together with rival operations but this is the exception rather the rule.
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08 May 2009, 08:29:13
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Edition 18 of 2009, Friday, 08 May 2009
Dear Reader
 The property industry lost a friend this week. Rodney Hayter South Africa’s most senior and respected property media entrepreneur and journalist died after a battle with cancer. Over the last five years Rodney provided our CyberProp.com newsletter subscribers with up-to-the-minute property news. Rodney’s articles will be missed.
 When will our economy reach the bottom? According to economist one of the best measuring tools is the house-price indicators and according to these we have not yet reach the bottom. The most recent Economist house-price indicators show that 16 of the countries surveyed had recorded year-on-year declines (up from 6 three months earlier).
BUT, I do believe that the latest interest rate cut will stimulate the economy and we will see the results in the South African property market within the next few months. Do you agree? Send your viewpoints to news@cyberprop.com
"For every million rand bonded, a homeowner will save R704.90 a month relative to their previous repayments, given the new prime rate of 12 percemt" says Brian Falconer, MD of Colliers International Residential. Let the floodgates open
If it’s your aim to purchase property at the bottom of the market while prices are at their lowest, then you’d better buy within the next nine months. That’s the advice of Lew Geffen, chairman of Sotheby’s International Realty in SA, who says all the signs are that prices will start to move upwards again at this time next year You've got nine months to cash in
 You'll do less time for murder. Velvet-tongued jailbird Maurice de Grandhomme was sentenced to 30 years for conning about R2m out of wannabee golf estate investors. He met his victims on a driving range at Pollsmoor Prison while he was still serving time for fraud, nogal. That intriguing news snippet was in the Cape Times on Friday where on the same page we were told that Niel Philips, 39, who murdered the mother of his daughter, was finally apprehended a decade later. Jail time: Murder vs Property crimes
Named after the Groot Marico River, one of the few perennial rivers in this area, the town is well-known for its beautiful African bushveld surroundings, hospitality of its people and through the books of well-known author Herman Charles Bosman. The Art Factory is a small shop situated in the Information Centre in the main street of Groot-Marico. Local artists are given the opportunity to present and sell their wares. All items are handmade. Oom Piet van Niekerk is an expert in the art of wip making. Focus on Groot Marico, North West, South Africa
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The editor
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05 May 2009, 16:37:08
After building mega-resorts from the Bahamas to Dubai, tycoon Sol Kerzner is back home in South Africa with a posh new 100-million-dollar hotel, 15 years after pulling up his stakes here in a cloud of controversy.
Richer, older, and with more celebrities in tow, South Africa's most infamous billionaire last month opened the One&Only hotel in Cape Town, featuring a 4,000-dollar a night suite with commanding views of the landmark Table Mountain and the ocean.
"It takes hotels to another level in South Africa," he told AFP in an interview.
It's the latest jewel in a byzantine business empire reportedly worth at least two billion dollars, which he studiously avoids discussing.
"We just don't talk the details and numbers," he said.
Once the epitome of hedonism under calvinistic white-minority rule, the diminutive 73-year-old made his name skirting an apartheid-era ban on gambling by building the Las Vegas-style Sun City resort in the 1970s in an ostensibly self-governing black homeland.
Just about two hours drive from Johannesburg, the resort was a place where black and white could mingle and drew in performers like Elton John and Paul Simon.
But the resort sparked international controversy as global opposition to apartheid grew in the 1980s, painting Kerzner as profiteering from the violently enforced system of segregation.
He's also been the target of a series of bribery investigations around the world, but never convicted.
His gruff demeanour has only fueled an unflattering media image.
He is known to make those crossing his path quiver in fear with his notorious temper, with the Daily Mail once reporting he liked to start meetings declaring "What the fuck's going on?"
Kerzner said he "doesn't care" about his image, which has softened over the years as he pulled celebrities into his circle and opened a series of larger-than-life resorts around the world.
"People have called me a perfectionist and that's what I expect," he said. "There shouldn't be a limit to one's imagination."
"For me, it's quite emotional. I always say in our business you can't afford to fall in love with your assets," Kerzner tells AFP of the journey back to South Africa.
He sold his stakes in South African hotels during the transition from apartheid, as the democratically elected government moved to legalise gambling.
Kerzner went on to build the Atlantis in the Bahamas and the Middle East's biggest hotel -- the outerwordly 580-million-dollar The Palm in Dubai. With properties from Mauritius to Mexico, Kerzner has been dubbed South Africa's Donald Trump.
Dubbed the Sun King after the name of his first hotel chain, Kerzner says his new One&Only hotel, is his best to date.
A penthouse on top of the hotel sold last year for 110 million rand (12 million dollars), making it the most expensive property in Africa.
He counts among his friends no less than Nelson Mandela, whom he met shortly after his release from prison in 1990.
"We became really good friends and had dinner from time to time at my home. It was very unusual," he said of the 90-year-old who joined him for a private lunch at the hotel's opening.
"He was in very good form, he is one of my oldest friends I am proud to say. He doesn't appear much in public but he came out to do the lunch as a friend."
Other friends such as Sharon Stone, Robert de Niro, Morgan Freeman, Matt Damon and Mariah Carey swept into town for an intimate and shmoozy cocktail party celebrating the hotel's opening, which he says is a vote of confidence in the new South Africa.
"I have been an optimist all these years. The fact that we built this hotel, and as I say it is about as good, the best we've ever built, says more than anything that I believe in the future of the country as a growing dynamic economy."
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05 May 2009, 11:28:42
The steady decline in house values continued in April, according to FNB's latest House Price Index that was made public on Monday.
This was a result of a sizeable oversupply that had built-up in the residential market.
The number of owners trying to sell houses due to financial pressure was a key driver of the oversupply.
According to property economist John Loos, the April FNB House Price Index had reached double-digit year-on-year average house price deflation for the first time, to the tune of -10.2 percent.
This put the average house price level back to the level at the end of 2006, Loos said.
"This weakness reflects the cumulative impact of a host of negative economic factors still feeding through, including high interest rates and consumer inflation until recently as well as recessionary conditions that are hampering domestic job creation and purchasing power," Loos said.
Looking forward, he said, house price decline might be around for the entire year despite some positive stimulus for residential demand coming from interest rate cuts.
"The reasoning is that, even should demand begin to improve, there exists a significant oversupply of property on the market that will take some time to be mopped up."
Loos said the key threat to the housing market emanated from a troubled global economy and its impact on South Africa's own economy and disposable income.
"However, May is an important month for the market domestically, too, with some key political matters to be settled.
"These include the inauguration of the new president Jacob Zuma and the market will be looking for comfort in the final composition of his Cabinet as well as, obviously, the fate of people such as [Finance] Minister Trevor Manuel."
Loos said political matters could be key in a thin residential market as there had been a surge of selling due to emigration last year after the political upheaval at the ANC's Polokwane conference and Eskom's power supply problems.
"This emigration selling appears to have subsided and it is crucial that we get the right signals from the new political leadership this month to avoid a similar emigration surge doing similar damage," Loos said.
The ongoing mismatch between supply and demand (oversupply) led to the forecast of a -9.5 percent decline in the average 2009 price compared to the 2008 average with mild price inflation only returning in 2010, Loos added.
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04 May 2009, 11:43:31
Cyberprop.com Weekly News Letter
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Edition 13 of 2009, Friday, 3 April 2009
Dear Reader
Vehicle news – Naamsa, The National Association of
Automobile Manufacturers reported that vehicle sales plunged by
30.1% to 33326 units last month compared to the same months in previous
years. I don’t know about you but I’m curious to see the
outcome for April 2009 after the 1% interest cut we’ve seen
last week. Will South Africans shop more?
 Commercial
property – Although it fell sharply last year it still
managed to beat inflation. This according to the SA Property Owners
Association/IPD property index. Is it the right time to buy commercial
property? We place two articles that can help you in answering
this question. Commercial real estate still beats inflation
- for now and Commercial real estate: world's top
returns
 Residential
property – According to the National Association of Realtors
US pending home sales have edged up, hinting at a possible
pickup of sales activity in coming months. Currently the property
market is still underperforming. No good news in the South African
property market as the prices of residential property
continue to come down. We bring you news from three of the Banks;
- FNB - March house prices down
- ABSA - House prices still falling
- Standard Bank - Falling interest rates to boost house
prices
Can things get worse? Dr Johan Botha, of Standard
Bank's economics division told Realestateweb that the property
market would probably be in the doldrums until the end of this
year. "I don't think we have reached the bottom yet. There
could be bargains at the moment and going forward."
Dr Neal Bruton, of RGT Smart Market Intelligence Ltd, said he expects
the interest rate to come down by another 2%, which would mean consumers
would enjoy a roughly 29% cut in their debt financing costs compared
to December.
Summit TV spoke to Mike Schussler from Economists.co.za about the
growing evidence that without further rate cuts South Africa is
going to experience a severe recession and more job losses
Tricky times ahead
Last week we reported that Standard Bank is still not accepting
new home loan application that has been submitted through
a bond originator. This week we can report that Standard Bank said
it is reconsidering their participation in the origination market.
It’s still a hard time for mortgage originators as commissions
are cut and the low approval of bonds continue.
What is carbon footprint? A carbon footprint is the
measure of the impact that our activities have on the environment.
According to Designs> if
you are lucky enough (or insane enough) to be planning the construction
of a new home, you are in the right place to make a huge difference
to the future of the planet. Before you even start with assessing
materials and construction methods, take a look at the orientation
of your home. As we are in the southern hemisphere, a building
norm is to have living areas facing north, north-east or north-west,
with service areas such as bathrooms and kitchens facing south.
It’s astounding how often builders and developers get this
wrong! How changes in the home can make a difference to carbon
emissions by:
Uniondale is better known for its ghost than for the scenic roads
it has to offer the tourist. These roads must be the Karoo's best
kept secret. Uniondale is ideally situated to form part of circular
tourist routes that include destinations such as Oudtshoorn, Baviaanskloof,
Port Elizabeth, Knysna and George. Read more in Focus on Uniondale,
Western Cape, South Africa
Enjoy!
The editor
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04 May 2009, 11:41:55
The Highland Gate golf and trout-fishing estate in the popular weekend destination of Dullstroom, which was put into provisional liquidation in August last year, will be auctioned by the Alliance Group on 13 May.
This will be a landmark event as the property includes two hotel sites and an 18-hole Ernie Els signature golf course. It is also the first time since 2003 that an entire liquidated golf course and estate has come to the market. "The last two bankrupt golf courses, which were both sold by the Alliance Group, were the Riviera Golf Estate in Vereeniging and the Simola Golf Estate in Knysna," comments Rael Levitt, CEO of Alliance Group. "In both instances new property developers took these estates and made a huge success of them. We envisage the same story applying at Highland Gate."
SA a premier golfing destination
According to the auctioneers, who have been advertising the sale since the weekend, there has been serious interest from golf estate developers from around the world, particularly Europe and the Middle East. "Despite a downturn in the leisure property sector, South Africa is still seen as a premier golfing destination and with 2010 around the corner we are seeing renewed interest from international companies focusing on our market," adds Levitt.
The more than 700 hectare development was at an advanced stage and the entire necessary infrastructure is in place. It comprises 455 stands, 267 of which have been sold and handed over at prices ranging between R700 000 and R1-million. Thirteen holes of the 18-hole golf course are complete as well as the gatehouse and service buildings. Seven houses are also finished, two are under construction and another 40 are planned. Roads and access control are also all in place. The Highland Gate Homeowners Association has been formed and all owners are contributing to the maintenance of the common property.
This is not the first property development that has hit the wall as a result of the downturn in the residential market, but it is the biggest to date — even though many of its stands have been sold since the launch of the estate in 2004.
Liquidation followed the petering out of sales
The previous estate manager Bryce Clarence said the provisional liquidation followed the petering out of sales last year. "The financiers wanted to withdraw and proposed that another funder be sought, after which the development was provisionally liquidated."
Enver Motala, chairperson of the SBT trust and one of the liquidators, says that a rescue mission was set in motion for the project, which entailed finding a suitable buyer to take it over and complete it. "The auction will now facilitate a speedy and unsuspensive sale."
All assets held by the initial developer, Gate Developments (Pty) Ltd, will be sold as one lot. The sale will include 185 serviced residential erven, the 18-hole Ernie Els signature golf course, two hotel/lodge sites, two complete fractional ownership houses and potential 'bulk' sites for future development. Plans for the development include a wellness centre, trout club and various eco-trails.
Due to its proximity to Johannesburg and its plentiful fishing waters, Dullstroom has become a much-loved destination for those wanting a retreat to nature. Highland Gate is a premier trout fishing destination that boasts magnificent scenery and is perfect for all wild game lovers as the Kruger National Park is less than two hours away.
"This truly is a once in a lifetime opportunity to acquire a world class property within close proximity of Kruger National Park," says Levitt. "The development presents an unrivalled opportunity for a new developer to infuse fresh energy into this prime project."
The auction takes place on 13 May 2009 (12.00pm) at the Southern Sun, Grayston Drive.
The troubles elsewhere
The global recession has hit property markets and the golf industry badly, but the South African sectors remain internationally competitive compared to those of the US and UK markets.
A £40-million luxury golf course designed by Jack Nicklaus seems to be the latest victim of the global recession in the UK and in Ireland some golf courses are cutting their green fees in half with one even throwing in a steak dinner with mid-week rounds. In the United States about 100 courses are expected to close this year versus the 80 or so that are expected to open.
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04 May 2009, 11:38:57
In stark contrast to prevailing conditions, the Lydenburg property market is positively buoyant.
That’s the news from Mandy Blom, principal of Homenet Lydenburg, who says that the local property market is directly affected by the performance of the area’s platinum mines which to date has held up well notwithstanding the drop in platinum prices on world markets.
In recent years platinum mining operations in the area have increased and with it the population. The mining companies built a number of homes in Lydenburg, but the influx of permanent and contract workers seeking accommodation was such that demand quickly outstripped supply despite the addition of subsidised mine housing.
According to Blom, developers have been slow to respond to the demand due to the lack of infrastructure. Consequently, in the past five years, property prices have doubled and properties that sold for R400 000 in 2003 are now selling for R900 000 on average.
"What is more, residential development is still relatively thin on the ground thanks to the current economic crisis and lack of electricity approvals. This has underpinned the prices of existing stock and most correctly priced properties that do come on to the market sell like hot cakes," she adds.
The Lydenburg rental market has also skyrocketed. At present a three-bedroom, two-bathroom home in Lydenburg lets for around R6000 per month. Sectional title units are popular with the rental market and investors are buying units for between R560 000 and R750 000.
Nearby Steelpoort has also experienced a major population growth spurt and available properties are practically non-existent. Steelpoort municipal services and schools have subsequently come under pressure.
Fortunately there are now plans to construct a major new security development, 'Spitzkop Village', near the Tubatse Golf Course in the town which should help alleviate some of the strain. This project encompasses over 2500 stands, a shopping node and a school. It’s envisaged that the development will greatly enhance the quality of life of many Steelpoort residents.
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04 May 2009, 11:36:13
Rentals in Cape Town's popular City Bowl are escalating rapidly as strict bank lending protocols take the wind out of potential buyers’ sails.
So says Yazid Khan, letting agent for the Chas Everitt International franchise in the area, who notes that many of those keen to buy property in the City Bowl are having trouble qualifying for the home loans they would need.
The majority of those looking to live in the City Bowl are young, up-and-coming professionals who have either returned from the UK or are moving up in the world and wish to acquire their first major asset. Sometimes parents are also footing the bill for their student children who wish to live there. The area’s aesthetic appeal, lively nightlife, upmarket coffee shops, cafés and trendy retailers make it an obvious choice for this market.
However, he says, the properties these buyers would really like to purchase generally range in price from R1.2-million to R2.5-million which is currently beyond their means. And so, rather than cut back on their lifestyle, many are renting instead in the hope that their financial situation will improve and they will be able to afford the properties they want at a later stage.
"As a result, the City Bowl rental market has been inundated and landlords can now pick and choose their tenants. Rental prices have also risen and even doubled in some instances — although they are still far lower than in areas such as Clifton and Camps Bay.
"Mandela Rhodes Place, Mutual Heights, The Adderley, The Studios, The Rockwell, Wembley Square, Icon, Harbour’s Edge, Flat Rock and Hip Hop Plaza are just some of the sought-after City Bowl addresses where rents have risen fast. One- and two-bedroom apartments in these complexes now rent from R6000 per month to R9000 per month and more, compared to a year ago when they were renting from R4000 per month.
"What is more," says Khan, "tenants as well as landlords are currently favouring long-term leases which suggests that they see rentals going even higher and wish to guard against sudden increases."
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24 April 2009, 08:42:27
The RealNet property group keeps growing in spite of the negative effects that tough economic conditions are having on the property market.
The group has opened six new franchises in the past six months, with new offices covering Port Elizabeth, the Bluff and Berea in Durban, Sedgefield/Wilderness, Kleinmond and Vereeniging/Sebokeng.
What is more, CEO Tjaart van der Walt says the group plans to add another 20 to 25 offices countrywide to its operations in the current financial year.
“We are receiving applications from seasoned professionals and are vetting the best principals. The current economic climate is fuelling the franchising model because entrepreneurs who want to start businesses or grow their current operations know that as members of a well-established group with value added services, they can count on support services that will boost their chances of success,” he says.
“The fact that the real estate business has lost its reputation as a job of last resort, and has instead grown in stature as a profession, creates opportunities to re-invent the estate agency franchising model. Franchises now enjoy better opportunities to become optimally profitable by, for instance, diversifying income streams through better use of technology.
“And the RealNet group has taken up the challenge to develop and design systems to enable our agents to become more productive and to work smarter. We are also in the process of aligning with professional business partners to further enhance our business offering to franchisees,” Van der Walt says.
He adds that that only the best qualified and most professional agents and principals are likely to survive the challenges of the current market. “Our franchise model, however, goes a step further by pulling out all the stops to equip our franchisees with the necessary skills and support to not only survive, but to be successful.”
Issued by RealNet
For further information call
Tjaart van der Walt on
012 460 4605 or visit
www.realnet.co.za
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24 April 2009, 08:40:38
A new era dawns in the cape estate agency sector
The new era of “true professionalism” promised by the Western Cape branch of the Institute of Estate Agents has become a reality: this month saw the first 800 estate agents to qualify under the new National Qualifications Framework Level 4 receive their certificates at a function at the Grand West Casino.
The occasion was sponsored and organised by SSETA (Services Sector Education and Training Authority), the award being made by their CEO, Ivor Blumenthal. Every one of the candidates received a R9 000 SSETA bursary through their training body to cover the cost of the training.
Ivan Neethling, Chairman of the Western Cape Institute of Estate Agents, said that the training through which these agents have successfully worked involved a complete reappraisal of their roles and abilities and a complete updating of the technical legal, financial and negotiation skills and knowledge required for the profession.
“Many agents,” he said, “feared that all this would be beyond them but the courses are structured to nurture those who are struggling and in the end everyone succeeded in completing their RPL portfolio. .”
The ages of the newly qualified agents, he said, range from 23 to 72 years. Those who had already acquired practical experience and/or educational qualifications received recognition for this via the RPL (Recognition of Prior Learning) arrangement and their achievements to date are recorded in their personal portfolios which in future can be continuously updated..
Experienced agents who have held a Fidelity Fund Certificate for more than five consecutive years, said Neethling, will not be expected to write final examinations but those newer to the profession will be doing this from the end of 2009.
“As in all good training,” said Neethling, “the candidates have gained a new respect not just for the way real estate profession should be tackled but also for their own skills. Many have come to realise that they have experience and skills that are not widely available today.
“Now that the “ball is rolling” and the supposed difficulties of the course have been shown to be largely mythical, we expect the rest of the Industry to respond favourably to the need to be requalified - but it should be appreciated by those contemplating joining the profession that NQF4 is now compulsory and involves a full time learnership commitment of 12 months involving both s study and practical training.
For further information contact Ivan Neethling on 083 527 2626 or email startprop@icon.co.za.
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24 April 2009, 08:39:36
The international CENTURY 21 property group has opened a Plettenberg Bay office under the banner of CENTURY 21 Pringle Estates.
The timing of the opening is seen as ideal to capitalise on the opportunities that will arise from the inevitable upswing in the property market.
The office is under the management of husband and wife team John and Christy van Coller, both of whom have an extensive track record in the discerning property market of the area.
Pringle Estates was a small family-owned business established in Plettenberg Bay in 1999. “But we wanted the benefits for our clients of joining a global brand with its international and local referral system, comprehensive training, management and other support,” says John, who had an engineering career before entering the property market.
Christy has a financial services history that includes stockbroking and investment banking.
Plett, as it is affectionately known, has a special place in the South African property psyche, says John. “Values are still strong and although volumes have slowed there is still definitely business to be done.”
Entry level prices for freehold properties in the area are currently around R1,4m for a three bed, two bathroom house and about R670 000 for a two bed, two bath unit approximately 100sqm in extent.
“There has been some softening of prices at the lower end of the market, but that presents opportunities for buyers while the middle segment has held up well. The top end of the market, where beachfront properties start at around R19m and range up to R35m, has been largely unaffected by current conditions, “ he says.
Buy-to-let is not a major issue among Plett property owners other than at the lower end of the market. Rather, market drivers include upgrading, downsizing to retire, relocations and “semigration”.
Generally, John expects Plett to benefit from 2010 Soccer World Cup spin-offs and from the re-introduction of direct flights to the area. “We are extremely optimistic about our prospects,” he says.
ISSUED BY CENTURY 21 SA
FOR MORE INFORMATION
CONTACT LINDIE BOW ON
011-884-2202 OR VISIT
www.century21.co.za
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24 April 2009, 08:37:27
Well branded and niche agencies favoured in current market
Cape estate agencies are folding rapidly: in recent months a further six have closed their doors in Cape Town alone, says Mike Greeff, Chief Executive of Greeff Properties, and have amalgamated to reduce overheads. More, says Greeff, will go before the expected upturn comes about in the third and fourth quarter of the year.
What effect is this having on the market? Does it make conditions for the property seller and buyer easier or more difficult?
Greeff says that certain companies have spent time and money on establishing their brand, through marketing, advertising, company magazines and promotional functions, and have become “personalities” in their marketplace. These, he says, now enjoy higher levels of support from customers and are gaining market share despite the tough conditions because “nobody wants to deal with an agency that might not be around in a month or two”.
This situation, however, can work to the disadvantage of buyers and sellers because the larger companies, with their higher overheads, cannot afford to allow their agents to operate on the lower commissions which some of the smaller players over the last four years found acceptable – in some cases forcing the large companies to follow suit.
“Cuts in commission were previously possible due to increased turnover, but are no longer feasible in today’s economic environment where it can take four to six months to sell a home, compared to the average time of four weeks 18 months ago.”
The good news, says Greeff, is that some of the well branded but smaller, niche agencies with staffs of 30 to 50 now tend to be the fastest movers and more flexible in their approach to the market – and are benefiting from this.
“In today’s conditions purchasing decisions are often drawn out and have a discouraging tendency to end nowhere. However, the agency that has trained its agents to listen and to respond quickly to clients’ needs will also be ready to negotiate and be flexible. The smaller niche operators with specialist knowledge of specific areas are showing that they are still open to negotiation and can do deals that benefit both buyers and sellers.”
For further information contact Mike Greeff on 021 763 4120 or email mike@greeff.co.za.
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20 April 2009, 16:46:39
Cash-flush Europeans splash out in KwaZulu-Natal as prices fall
BRITISH and German jet-setters are bucking the global credit crunch and splashing out in euros for prime coastal homes and estates that have seen asking prices slashed.
Estate agents in Durban this week said they had recorded a flood of cash sales of between R3-million and R6-million for modest homes and sea-facing apartments since December. Rolling out the red carpet and stuffing buyers with lobster and champagne, the estate agents said other cash-flush Europeans, between the ages of 40 and 55 years, were snapping up homes priced between R1-million and R5-million.
One property that has attracted interest from foreign buyers is a R22-million beachfront penthouse located in Pearl Tides in Umhlanga, KwaZulu-Natal.
Boasting 180-degree ocean views, the 600m² double-level penthouse features three en-suite bedrooms, an open-plan living area and a private rim-flow pool.
Pam Golding Properties’ Elwyn Schenk, whose branch recently sold a four-bedroom apartment in Umhlanga for R11-million, said sales in the suburb were increasing month on month.
Foreign buyers include investors, corporate executives, celebrities, socialites and civil servants eager to cash in on South Africa’s property slump.
In June last year, The Times revealed that Hollywood stars Nicolas Cage, Leonardo DiCaprio, and Jude Law’s former wife, Sadie Frost, were just a few of the international celebrities discreetly hunting for houses in Umhlanga.
At the time, property analysts said international buyers were at last finding Cape Town’s seafront suburbs — where prices range from R5-million for a one-bedroom apartment to R60-million for a beach bungalow — too expensive, and were turning their attention to prime property along the KwaZulu- Natal coast.
Last week PGP said it had recently showcased homes, stretching from Umhlanga to Clifton in the Western Cape, to high-net-worth individuals at the Sud-Afrika Tage 2009 show in Germany.
The show, which attracts exhibitors ranging from tour operators and immigration experts to property brokers of luxury hotels and wine farms, was staged in Mainz, on the outskirts of Frankfurt, in Neuss in the Koln, Dusseldorf region and in Hamburg.
Dina Porteous, who runs PGP’s operations in Margate, said: “Our exhibit attracted a great deal of interest. It is clear that what attracted interested buyers is our abundance of sunshine, coupled with our friendly people and beautiful homes.”
Gaby Moessner, manager of PGP group’s German office, said: “This is a discerning market and overseas buyers are extremely well informed about the South African property market. The advantage of acquiring lock-up-and-go apartments and homes was also a major drawcard.”
He said potential German buyers in general preferred stand-alone homes rather than those in golfing or townhouse developments.
“In Germany space is at a premium so this is a top priority when it comes to buying property in South Africa,” said Moessner.
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17 April 2009, 15:53:03
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Edition 15 of 2009, Friday, 17 April 2009
Dear Reader
 All eyes will be on South Africa this coming week as 22 April 2009 is approaching. We’ve heard and will still hear plenty more promises in the days to come. “Interest rate cuts are among the policy responses proposed to minimise the impact of the global financial downturn”, ANC treasurer-general Mathews Phosa said on Wednesday. "Reserve Bank consideration of lower interest rates, as will now be done on a monthly basis...[and] removing internal hurdles to competition," were among the proposed responses outlined by Phosa. Rates to be razed?
What is Politics?
A little boy goes to his dad and asks, "What is politics?” Dad says, "Well son, let me try to explain it this way: I'm the breadwinner of the family, so let's call me capitalism. Your Mom, she's the administrator of the money, so we'll call her the Government. We're here to take care of your needs, so we'll call you the people. The nanny, we'll consider her the Working Class. And your baby brother, we'll call him the Future. Now, think about this and see if it makes sense.
What is Property?
A big, burly man visited the pastor's home and asked to see the minister's wife, a woman well known for her charitable impulses. "Madam," he said in a broken voice, "I wish to draw your attention to the terrible plight of a poor family in this district. The father is dead, the mother is too ill to work, and the nine children are starving. They’re about to be turned into the cold, empty streets unless someone pays their rent, which amounts to R 5,500.00" "How terrible!" exclaimed the preacher's wife. "May I ask who you are?" The sympathetic visitor applied his handkerchief to his eyes. "I'm the landlord," he sobbed.
My question to you this week, “How does politics and property compare”? Send your view point to news@cyberprop.com
Three interest rate cuts since December have failed as yet to have any real impact on the residential market, says Ivan Neethling, Chairman of the Western Cape branch of the Institute of South African Estate Agents – and the reason for this, he says is still the banks’ much criticised reluctance to engage with the bond market as expected of them – and as promise at least by some. Neethling points a finger at the banks for the “disastrous” drop off in homes sales
In the area, last week we focused on Marister (Benoni) and in response we received the following from one of our readers;
Thank you for reporting on our lovely spot. Why did you have to call on quad bikes to come and pester us? One cannot have peace and quiet, bird live etc. with idiots racing up and down the road the whole day!!. We have to listen to one revving up his motor as I write!! Keep up with the other good articles we receive!. Thanks Chris! I’ve come to a conclusion, “You just cannot win them all”
Enjoy!
The editor
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17 April 2009, 08:19:36
Many cape homes not insured for fire, says steward
Some 240 fires have broken out in the Greater Cape Town area this year and although these have resulted in the total destruction of only a few homes, many others have been badly damaged. In the informal settlements the number is far higher, close to 1 000.
Commenting on this, Lanice Steward, MD of Anne Porter Knight Frank, pointed out that time and again people who thought that their homes were insured for fire discovered they were not – and, she added, the usual reason for this has been that the insurance was linked to the bond and ended when that was paid up – without the owner realising this.
"The insurance companies," said Steward, "have been very remiss in not contacting owners in this situation, especially as these homes are usually 20 or more years old and therefore a far greater fire risk"
Reverting to a topic she has covered in many agents’ training sessions, Steward reminded homeowners that most fires originate with an electrical fault and for this reason a regular check and, if possible, upgrading of the electrical network are a good idea. Certification by an electrician is, in any case, required by law when a house is sold.
"Fires," said Steward, "are always seen as disasters that happen to others, not to oneself – but they do occur in homes with ghastly frequency, so make sure your insurance is in place."
For further information contact Lanice Steward on 021 671 9120 or email lanice@anneporter.co.za.
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17 April 2009, 08:15:23
Third generation thatchers set up on their own
New company aims for major contracts
One of the more frustrating aspects of the thatching industry, at least to those who are relatively small operators, is that much of the work they get comes in the form of subcontracts to the few big name companies – who tend to cream off the profit while paying low for the work they commission.
It was this realisation that led to the Cape cousins, Clarence and Gerhardus de Wet, deciding to set up on their own.
In both their families, thatching goes back at least three generations. Both, too, were trained and taught by their own relatives and both believe that they have skills which are unrivalled in the Western Cape.
The organisation they have formed is Thatch Wood c.c., the name emphasising, they hope, the fact that they have in-depth experience in both the structural and the thatching work.
“This means that we can handle anything from a garden lapa or a poolside gazebo to a complete new home or a roof conversion,” said Gerhardus. “No job is too big, and unlike the major companies, we can also say that no job is too small.”
Right now, say the de Wets, some 70% of their work is servicing.
“A well made thatch roof which is exposed to the sun and given a chance to dry out will last 40 to 60 years,” says Clarence, “provided that it is serviced.”
This, he explained, means the dead ends of the thatch are pulled out and broken off. Such a treatment can give even the blackest and oldest looking roofs a brand new light brown look and in most cases, this needs only to be done every five to seven years.
“We offer this service because we know we do it better than most and we know how important it is if you want your roof to last. Some thatch roof owners still, however, do not appreciate this.”
Thatching, says Gerhardus, is catching on throughout the Western Cape for three obvious reasons. Firstly, a thatched roof or even simple 6m x 6m gazebo in the garden will add significantly to the property’s value.
Conversions done by the de Wets, replacing, for example, tiled roofs with thatch, have increased the home’s value by 30 to 40% and in general new thatched homes are priced way above those with other roofs.
Secondly, thatch is ideal for the Cape because of its thermal qualities, which are far greater than those of tiled or metal roofing. Excessive heat is held out in summer but internal heat from fireplaces or under-floor heating is retained in winter.
Thirdly, the aesthetic qualities of thatch appeal to many, especially when it is seen from inside.
“The ability to eliminate a ceiling,” said Gerhardus, “can be a huge design plus. Ceilings are boring, but the curves and structures of a thatched roof are attractive.”
So why does not everyone go for thatch?
The main reasons, say the de Wets, is a fear of fire.
“Like log homes,” he said, “thatch is wrongly perceived to be a fire risk – but this is illogical. The figures show clearly that the percentage of thatched homes burnt down is no higher than that of homes with metal or tiled roofs.”
What is more, he says, modern technology has greatly reduced the fire threat. The use of both fire retardant blankets inserted at regular intervals in the thatch and roof water sprinklers has almost completely eliminated the danger of fires destroying homes – and Thatch Wood is in a position to provide both types of technology.
Another factor which should predispose Capetonians to use thatch, say the de Wets, is that the reeds used by Thatch Wood – and others – are among the very best in the world today. Most are grown near Albertina and, unlike those used in Europe, are dry, woody and strong. European thatch, say the de Wets, is all too often soft and sappy and does not always dry out and retain its strength on the roof.
“Albertina thatch has been used all over the world. I myself have worked with it in Dubai and I can tell you that it is the best available,” says Gerhardus.
Thatch Wood executives are available to discuss the possibilities and the design criteria of thatching with architects – free of charge.
“It really makes no sense that thatch, the traditional Cape roofing material, is still so little used in Cape Town. A change is overdue, especially as, with a team like ours, in which the management are very much part of the work force, Thatch Wood can undercut the bigger operators on price and give costs that are close to those of alternative roofing materials.”
For further information contact Gerhardus de Wet (079 771 3142) or Clarence de Wet (083 518 7080) or 021 857 1987 or via email on thatchwood@telkomsa.net.
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17 April 2009, 08:11:00
Five independent agencies in the Western Cape have signed up to join the burgeoning Harcourts group in the past month and another four will soon swell their ranks.
So says Jeanne van Jaarsveldt, recently appointed as the new GM of Harcourts Africa, who is currently overseeing the group’s expansion in the Western Cape.
“Following last year’s purchase by Harcourts of a majority share in the Homenet group, all the Homenet branches in the Cape are of course now in the process of rolling out their new Harcourts branding,” he notes.
“But the agencies we have signed up in the past month were never part of the Homenet group. They were independents and other established brands who have decided on the strength of the Harcourts value proposition to join the group.”
Recently rated by world real estate authority Stefan Swanepoel as one of the top five international real estate brands, Harcourts operates in Australia, New Zealand, China, Fiji, Indonesia, Singapore, Zambia and Botswana as well as South Africa and has more than 600 offices, 4000 sales consultants and a sales volume in excess of $19,5bn a year.
This supported by its association with Leading Real Estate Companies of the World, which further expands its international reach to more than 35 countries and more than 170 000 agents around the globe.
“And at a time when other real estate groups are cutting back on their value offering, Harcourts is actually expanding and gaining bigger market share, by giving franchisees the systems, training and technologies to be successful in any market. Other agencies have picked up on this and are already gravitating strongly towards the brand,” says Van Jaarsveldt.
The five new offices that are already operating as Harcourts branches are located in Langebaan, Velddrif, Malmesbury, Durbanville and Bellville, and four more will be following suit soon.
Martin Schultheiss, CEO of Harcourts Africa, says the rapid inroads that the company is making in the Western Cape reflect the fact that Harcourts is fresh and dynamic brand that is going to take the local industry by storm. “What will take most real estate companies in South Africa millions of rands and years to develop,” he says, “we are able to introduce to our franchisees right now, and that is going to put them on a totally different level to the rest of the industry.”
ISSUED BY HARCOURTS AFRICA
FOR MORE INFORMATION CALL
JEANNE VAN JAARSVELDT ON
083 641 6603 OR VISIT
www.harcourts.net
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16 April 2009, 16:30:34
Three interest rate cuts since December have failed as yet to have any real impact on the residential market, says Ivan Neethling, Chairman of the Western Cape branch of the Institute of South African Estate Agents. He says the reason for this is the banks' much criticised reluctance to engage with the bond market as expected of them - and as promised, at least by some. Here are his comments:
I came away from a recent meeting with three major banks convinced that they are finding reasons not to invest in the bond market rather than looking for reliable bond applicants.
The reason for this is that the South African banks appear to fear further repercussions from the global credit crisis and continued job losses (up to 400 000 before the year end).
The banks give the impression of believing that the global economic problems will impact on South Africa for a further 18 to 24 months before we get real relief, a view which I see as unrealistically pessimistic. Yes, we have to acknowledge that South Africa is not fully insulated from the world's financial problems and the direst effects of these are only now being felt - but the current bond rejection rate is in the view of almost all estate agents unjustified.
Unless there is a marked change in the banks' attitude, every type of property company will have within the next few months to readjust their expenditure and cut back further on staff, advertising, marketing and other overheads.
Already in the bond origination and conveyancing sectors we have seen really severe cuts that no one would have expected a year ago.
I asked how the banks plan to survive if they cut back strongly on bond lending. My impression is that a great deal of reliance is being placed on the spin-offs generated by the government's infrastructural development programme - but this can only partially compensate for a healthy bond loan business.
In any case, there is a certain injustice in penalising the consumer at this point because it is his taxes that have funded much of the government's spending programme from which in general only a select few are benefiting.
In the housing sector, there is now great awareness of the National Credit Act criteria and this has had a noticeable effect on making loan applications far more conservative and more realistic than they have ever been before.
Very few bond applications today come from chancers. The industry has become self-regulating. No one wants to waste time on a bond that is likely to be refused. Those applications that have been processed almost invariably have come from sound, reliable credit-worthy people who should qualify for a bond - but all too often do not. This situation has simply got to change if the state has any intention of seeing the housing sector revive and of realising its dream of South Africans becoming a home-owning nation.
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16 April 2009, 16:25:42
Estate agents with little or no experience and the banks' extreme tightening on home loan lending are two factors destabilising residential property prices.
Consequently, current selling prices had been slashed to those of about three years ago, Chris Pearson, owner of RE/MAX said in a statement on Tuesday.
Pearson has urged the real estate industry's major players to use stricter vetting levels in the hiring and training of new staff and for greater lending realism on home loans from the major banks.
Pearson said the market, in part, was paying for the industry's many years of failing to train and supervise its staff.
"The man in the street often has a greater knowledge of property than some of the agents themselves," he said.
Pearson blamed unqualified agents for their inability to price correctly and to educate the seller.
He said these agents had "an overwhelming desire to justify their continued employment" to their employee by signing up overpriced sole-mandates regardless that it might seriously impair the seller's rights and that, because of its inflated price, was little more than worthless stock.
Desperation to 'fill desks at all costs' by principals meant the market had been beleaguered by the problem for years.
This was now seriously coming home to roost on the back of the banks' tightening up on their home lending, which Pearson said was rigid.
This combination was now mainly responsible for prices falling to those of three years ago, which Pearson warned could seriously harm banks if more homeowners fell into marginal negative equity situations.
Acknowledging the lending industry's long history of swaying from feast to famine in loan grants, Pearson believed its iron glove approach this time was 'over-reactive'.
He said South African banks should realise that there had been improvements in home sales in the US, UK, Australian and New Zealand markets.
There had also, globally, been a resurgence in first-time buyer activity in all markets.
"Our banks need to recognise this revival and their importance in regenerating our property markets not through high-risk lending, but through more balanced assessment of home loan applications even through the structuring of tailored packages to offset any of their perceived threats in the current market."
In keeping with most industry leaders, Pearson said the recent rate cuts by the SA Reserve Bank would 'soften some of the market's current brutality'.
However, he warned that 'true salvation' would only come from a strong shift in bank's lending attitudes.
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16 April 2009, 16:24:41
How do you know for sure that the beautiful beamed ceilings that made you buy your dream house are not filled with termites and turning to dust? Or that the majestic thatched roof is about as watertight as a sieve?
Unless you are an expert in construction you will only find out when it’s too late to have any recourse to the seller.
Homeowners have been under a lot of financial pressure over the last few years and just haven’t had the resources to keep up proper maintenance of their homes. If you are looking to buy a house the property could end up costing you a lot more than the amount on the contract.
To protect yourself from buying a house that will fall apart around you, hire a few experts to give you a clear picture of the condition. It may cost you a few hundred rand extra in the short term but it could save you thousands in the long run.
The most common problem areas in older homes are the plumbing systems, electrical systems and the condition of the roof. Structural soundness should also be checked.
If there are problems you can renegotiate the price or decide not to go ahead with the purchase. Beware of a seller that promises to make the improvements themselves. They will probably get the job done for the least money possible, causing quality issues further down the road.
Here is a checklist for buying an older home:
- Get a roofing expert to check that the roof is sound. It may look fine to an amateur but an expert will soon point out problem areas. Look for signs of leakage inside the house.
- Perimeter walls are often not built to required specifications. People have been extending the height of their walls without putting in proper supports. A few gusts of strong wind during a storm could blow it down.
- Make sure that the electrical systems in the house have been checked and you receive a certificate to that effect.
- Turn the taps on in the bathrooms. There is nothing worse than getting into the shower of your new home to find that there is as much water pressure as a squirt gun. Get the geyser checked out — a new one will set you back many thousands of rands.
- Examine the trees on the property as some could pose a risk if they are dead or planted too close to a retaining wall.
- Ask the owner about flooding during a rainstorm. The last thing you want is a swamp at the bottom of your garden.
- And finally, ask about the neighbours. If they have psytrance parties every weekend it may not cost you money, but it will sure cost you a peaceful night's sleep.
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15 April 2009, 16:14:23
A whole list of successfully managed international sports events has proved to the world that South Africa is a safe haven for this type of activity — and has the skills and dedication to see that they run smoothly.
This was according to Tony Clarke, MD of Rawson Properties, who listed 24 major events ranging from the Rugby World Cup, the A1 Grand Prix and the Nedbank Golf Challenge to the Comrades Marathon and certain surf-ski and mountain biking events to bear witness to his statement.
"The latest coup, the winning of the 2009 DLF Indian Premier League, is additional evidence that the world trusts us to organise these events," said Clarke. "It shows yet again that we can be competent sports organisers. The FIFA World Cup will, we believe, be the cherry on the top and further boost our image."
All this top level sporting activity, said Clarke, will focus attention on South Africa as never before — and is bound to have spin-offs for those marketing property here.
Easy to buy property in SA
"Many people," said Clarke, "think that it is extremely difficult for a foreigner to buy property in South Africa. This is definitely not the case. Anyone reading the admirably lucid Smith Tabata Buchanan Boyes booklet on the subject will discover that the only people prohibited from buying property here are illegal aliens which in practice means only those with a criminal or terrorist record."
Clarke went on to make a few salient points: Should the buyer, he said, not wish to purchase the property in his own name the purchase vehicle must nevertheless be locally registered and it must comply with the South African laws, particularly those relating to South African companies, trusts or closed corporations.
This, however, does not, said Clarke, prevent the purchase being made in the name of an overseas company or trust.
Quoting the STBB booklet, "It is important," added Clarke, "that the entity chosen to hold the acquired property is set up before the offer to purchase is made because a change of the holding vehicle after transfer will almost invariably carry a penalty."
No need for buyer to be in SA
Non-residents are allowed to buy South African property over the Internet and it is not essential to be in the country to finalise the deal.
Transfer and bond documents, said Clarke, can be signed overseas provided that this is done in the presence of a notary public or at the local South African Embassy and foreign funds can be paid into any South African bank account. In practice, said Clarke, this will usually be the trust account of the attorneys handling the deed of sale and, he said, this is a safe form of investment as these trusts are regulated by professional bodies of which lawyers are members.
Asked about the position of foreigners raising bonds in South Africa, Clarke said that even if the overseas buyer does not intend to live in South Africa fulltime he is still allowed to raise a bond here. However, this is limited to 50 percent of the total sale price. It is also, he said, acceptable to the South African Revenue Services for part or all of the remaining 50 percent to be in the form of a bond raised overseas — it does not have to be paid in cash.
As is the case with South African residents, however, the foreigner borrowing here will have to prove that his earnings are sufficient to pay the monthly instalments. Proof of substantial assets held by the purchaser, said Clarke, is not in itself sufficient to qualify for a South African bond these days — a monthly income stream has to be assured as well.
Buyers subject to a FICA investigation
Buyers will also be subject to a FICA (Financial Intelligence Centre Act) investigation, the purpose of which is to ascertain that the funds used have been legally acquired.
The big question always asked by foreign buyers, said Clarke, is what rules apply to the repatriation of the money if and when the property is sold. In this regard there are no problems provided the original deed of sale has specified that the buyer is a non-resident and provided the sums still owing on the property are paid as the sale goes through. The rest of the money can be repatriated.
If the foreigner decides at some stage to become a permanent resident (which involves declaring his foreign assets to the South African Reserve Bank) he may not repatriate funds within five years of being accepted as a South African citizen.
All funds repatriated are subject to Capital Gains Tax and the non-resident will pay this on the full amount, even if it is his only South African home — unlike the South African resident who pays Capital Gains Tax only if the profit on his primary residence is above R1.5-million.
Foreign residents buying in SA are exempt from tax on overseas earnings
Unlike South African residents, foreign residents buying in South Africa, said Clarke, are exempt from South African income tax on overseas earnings — they pay only on money earned here (if any).
The Capital Gains Tax on the sale of a property registered in the name of an individual (i.e. not a trust or a company), will be 25 percent of the capital gain and will be taxed at the individual’s marginal income tax rate which at present may not exceed 40 percent. This, said Clarke, translates to a maximum rate of 10 percent on the capital gain which by any standards can hardly be deemed a high tax imposition.
As some foreign buyers in the past have avoided paying Capital Gains Tax on their property sale, the South African Revenue Services now stipulate that any buyer of a property sold by a non-resident for R2-million or more has to retain a percentage of the purchase price and pay it to the South African Revenue Services within 40 days of the transfer. If the non-resident seller is an individual, the amount retained is five percent. If the seller is a non-resident company the amount is seven percent and if the seller is a non-resident trust the amount will be 10 percent.
All in all, said Clarke, South Africa remains a country friendly to foreign buyers and very easy for them to deal with. The tax laws, he said, are enlightened and not onerous and the local legal professionals are adequately trained to ensure a smooth transfer of ownership.
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14 April 2009, 16:12:39
Though the rate of new development has slowed dramatically in most parts of the country on the back of the economic downturn, Hatfield in Tshwane (Pretoria) remains a relative hive of residential and corporate activity.
According to Johann Basson, principal of Realty 1 International Property Group in Hatfield, the suburb stands out from others as truly cosmopolitan, filled as it is with street-fronting restaurants, bars and shops. Its pavements have a character of their own with street vendors, artists, students and suit-clad executives providing an endless source of interest to el fresco diners and other watchers. That said, it’s also a suburb on the move. "Hatfield is experiencing ongoing development, both in the form of new residential construction and conversions of old houses into offices which are then being bought by or let to head offices and corporates," he says.
Hatfield Gautrain station
Driven in part by unflagging demand for student accommodation and partly by its status as host to a large collection of international embassies and trade missions, Hatfield’s growth received an additional boost when it was chosen as a site for a Gautrain station, Basson adds. "Located close to the N1 and N4 freeways, Hatfield is well on its way to fulfilling the municipality’s vision of being a desirable and user-friendly environment which will ensure its ability to retain existing business and attract further investment. This in turn is ensuring that property values do not depreciate."
Among the many projects currently underway there is the Hatfield Gautrain station, which Basson envisages playing a significant role in helping grow the CID (city improvement district) and attracting mixed-use developments. Further, construction on a new high-rise block of studio units near Hatfield Square — intended for students and young professionals — is about to begin.
On the corporate side, a 'stunning' 4000m² office block on Duncan Road is nearing completion. According to Basson, office space can be purchased or rented at very competitive prices. Plans are also afoot for a new 4500m² office block on the corner of Schoeman and Festival Streets, which will be developed in line with tenants’ requirements.
Ongoing refurbishment of existing buildings
In addition to new development, he says the refurbishment of existing buildings, including blocks of flats and shopping centres, is ongoing. Examples include The Fields, a recently completed City Property Project in Burnett Street, which boasts an assortment of shops, restaurants and state-of-the-art rental accommodation.
Among the most expensive corporate properties on Basson’s books right now are a 5000m² office block with a price tag of R50-million and a smaller office block for R26-million. Both close to the Gautrain Station, the pricing indicates where demand is currently focused, he says.
Residential accommodation starts at around R480 000 for a studio unit, though some of the newest ones are priced at R1-million or more. One bedroom flats range from R600 000 to R1-million, he continues, while two bedroom flats can fetch as much as R1.3-million. For an average house 'typical of Hatfield 50 years or more ago', one can expect to pay anywhere from R1.3-million to R3.5-million or more. It’s a case of supply and demand, he explains, since no more new houses are being built. Instead, the trend is for the old ones to be demolished and replaced with blocks of flats or offices.
The best investment buys on Basson’s books include a three bedroom, two bathroom house with a separate, modern unit built to accommodate seven students. Considering its location — within walking distance of the Gautrain station — and the ease with which it could be turned into a guest house in time to meet 2010 FIFA World Cup demand, the R3.8-million price tag is very reasonable, he says. Another excellent investment prospect is a 36-room student dormitory on the market for R8.5-million. Close to both the University and Loftus, it is fully let with a monthly nett income of R55 000.
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13 April 2009, 16:11:21
In a move that shows great confidence in the Western Cape's future (particularly the St Helena Bay precinct) as a holiday and tourist destination, the Dale Capital Partners Group has bought west coast developer Gert Joubert’s new hotel, spa and country club at Shelley Point and is immediately going ahead with extensions and new facilities.
The cost of the acquisition and the work to be undertaken this year is just on R100-million.
The Dale Group is the financial services and leisure investment arm of the Stock Exchange of Mauritius-listed Trinity Financial Group. Trinity Group’s core function is asset management with a focus on African mining and resources, information technology and, via Dale, all aspects of financial services and the leisure industry. It is also a sizeable shareholder in the Mauritius based AfrAsia Bank which will soon launch a representative office in Cape Town.
The group, now heading towards its tenth year in operation, controls assets of approximately R500-million. Through Dale it is a significant shareholder in the JSE (Altx listed) hotels and leisure services company Queensgate Hotels and Leisure, one of the fastest growing hospitality groups in South Africa. It manages several South African hotels and game lodges including the Radisson and Park Inn hotels in Cape Town and a Kruger Park lodge.
Shelley Point: Dale and Queensgate venture
Queensgate is currently expanding into Durban, Johannesburg and Port Elizabeth hospitality centres and, says Mr Norman Noland, Chairman of the Dale Group, is now for the first time co-investing with Dale in hotel ownership. Shelley Point will be the second joint venture between Dale and Queensgate, the first being a new four star near Grand Baie in Mauritius, which is now being built and, as indicated above, will be complete in mid-2010, in time for the World Cup.
Queensgate will manage the new hotel and spa at Shelley Point. The spa will fall under the control of its subsidiary One Wellness, which specialises in this type of operation and manages spas throughout South Africa.
"From the outset," said Noland, "it has been our ambition to establish a Mauritian style beach hotel at the Cape and Shelley Point, in our view, is ideal for this as it fits exactly the profile we were looking for. One of its big advantages is that, although it is only a one-and-a-half hours from Cape Town, it is a world apart with beautiful landscaping and a very high standard of design and finishes."
The facilities here, he added, include over 500km² of calm, well protected water in St Helena Bay which is ideal for any type of water sport and provides visitors with some of the best whale and dolphin watching on the entire Southern African continent.
New hotel, spa and country club
The new double storey hotel, spa and country club facility at Shelley Point came on stream in August last year. It has a first-floor restaurant and bar, a large lounge/living area, a wellness centre, a hairdressing facility, an attractive nine hole golf course, a golf pro shop, a small children’s play area, a teenager section (with staff to supervise both) and an outdoor pool which complements the heated and conventional indoor pools of the spa.
Guests at the hotel currently stay in an adjacent 46-suite two-level building where some of the suites have their own small kitchens and living areas.
Dale Capital are now appointing contractors to start work in the later part of April on a second 49-suite block which will be complete in time for the 2010 World Cup tourist invasion. Both blocks have thatched roofs, their styles entirely in keeping with the white-walled, low profile architectural style which is mandatory throughout the Shelley Point estate.
The extensions will include work on an upmarket 'Mauritius influenced but West Coast flavoured' beach club for the use of hotel guests and resident country club members. It will serve light meals, drinks and snacks almost round-the-clock and will offer water-skiing, water scooters, rubber-ducking, kayaking, snorkelling and dolphin and whale watching.
"This type of service," said Noland, "has played a big part in enhancing the popularity of Mauritian tourist facilities and, if done well, adds extra value to any upmarket tourist facility."
Noland stressed that much of his confidence in the Shelley Point purchase stems from the fact that Queensgate will manage it.
"Experience has shown that this group is highly competent and their hotels experience excellent occupancy levels," he said. "This is exactly the sort of operation which suits their skills."
"To date," said Noland, "Gert Joubert has received relatively little credit for creating two magnificent developments: Britannia Bay and Shelley Point. We see it as a privilege to be able to join him in realising his vision for this area. We anticipate this resort becoming favoured by local and international visitors and expect it to rank among the top hospitality venues in Southern Africa. The Shelley Point and West Coast region has tremendous potential and we will use all our skill and resources to promote this Southern African gem on the international market and locally."
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10 April 2009, 16:08:45
Interest rate cuts are among the policy responses proposed to minimise the impact of the global financial downturn, ANC treasurer-general Mathews Phosa said on Wednesday.
The slowdown in foreign exchange due to the commodities "meltdown", is one of the country's biggest challenges, he told a gathering of the ANC's Progressive Business Forum at Gallagher Estate in Midrand.
Innovative
The challenge for government was to find "innovative solutions" to this and other consequences of the global financial crisis.
"Reserve Bank consideration of lower interest rates, as will now be done on a monthly basis...[and] removing internal hurdles to competition," were among the proposed responses outlined by Phosa.
"The banking crisis world-wide is reconfiguring itself in South Africa with an unacceptably high number of house owners due to default on their payments," he said.
This placed social cohesion and the principle of ownership at risk, Phosa added.
"Declining commodity process and demand have a serious impact on our exports, which brings its own negative implications for employment."
Due to these and other factors, government revenues were set to decline and business and consumer confidence were low, he said.
The expanded public works programme was in place to address this and the ruling party proposed an increased focus on the 2010 soccer World Cup, increasing government spending in health and education and promoting external investment as other appropriate policy responses.
"In all of the above... our main aim will be to protect the vulnerable and do everything in our power to alleviate poverty," he said.
Dampening enthusiasm
Deputy Sport Minister Gert Oosthuizen told the forum the world's financial woes did not seem to be dampening enthusiasm for the upcoming World Cup and Confederations Cup.
"More than 1.6 million applications [for tickets] have been received from almost 200 countries," he said.
The country's direct spending in the soccer spectacular stood at R15.6-billion, with the event set to contribute R55.7-billion to the country's gross domestic product and generate R19.3-billion in tax income.
The Confederations Cup later this year would be a "dry run" for the Fifa World Cup with South Africa hosting the world's best players from across the globe.
"Gone is the gloom and doom, the doubts over whether a developing country like ours can indeed host such a huge event, gone is plan B and all the other countries that are supposed to be on standby," Oosthuizen said, outlining South Africa's readiness to host the sporting events.
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09 April 2009, 08:39:44
Tony Clarke critical of Cape Town’s deeds office performance
In a hard-hitting, no-holds-barred interview, Tony Clarke, MD of Rawson Properties, has asked the question, “What is going on at the Cape Town Deeds Office?” - and has answered his own question by saying, “Whatever it is, it is not in the interests of property sellers and buyers and those of us who are working in the industry.”
At the height of the 2004 to 2006 boom, said Clarke, the Deeds Office had examined up to 200 deeds per day and on average taking ten working days to go through each deed prior to transfer. Now, he said, the average turnaround time from the submission of the documents to the point where they effect a transfer is up by 50% - to 15 working days, a “ridiculous” situation.
“Considering that the number of deeds now being processed dropped by two thirds, these delays,” said Clarke, “need to be explained.”
“In practice,” he said, “the 15 working days equate to almost 30 calendar days and I need hardly remind those involved that these delays are costing the sellers, the buyers, the banks and the estate agents a great deal of money. They are also causing the conveyancers embarrassment because the man in the street, wrongly, blames them for the hold-ups.”
Clarke said that the Deeds Office had done a “scientific” calculation on the number of deeds that an examiner should be able to handle in a day – and had settled on a figure of ten to 15 per examiner.
“As the office has up to 50 people allocated to the examination process, it is a mystery to all of us why they are processing so few deeds.”
Clarke said that there had been suggestions that the delays are being deliberately caused by some individuals who want to earn overtime pay. These suspicions, he said, have been further fuelled by a proliferation of rejections on minor, non-material matters such as typing and spelling errors that do not alter the validity of the documents. These delays, he added, have become particularly prevalent over the December and Easter holiday periods and this, too, is leading to suspicions.
Apart from the money uselessly tied up by these delays, said Clarke, they have also caused immense inconvenience.
“Let’s face it,” said Clarke, “people go ahead and plan their lives post-transfer. These plans have in the last year had to be changed time and again.”
“It is time,” said Clarke, “that someone was held accountable for the disruption these totally unjustifiable hold-ups are causing. It is ironic, to say the least, that an office that could cope quite well in a boom period should now be falling behind more and more seriously in today’s far easier, less demanding circumstances.”
For further information contact Tony Clarke on 021 658 7100 or email tony@rawsonproperties.com.
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09 April 2009, 08:37:29
Residential property ownership in S:A for non-south Africans is uncomplicated and has no hidden disadvantages
A whole list of successfully managed international sports events has proved to the world that South Africa is a safe haven for this type of activity – and has the skills and dedication to see that they run smoothly.
This was said this week by Tony Clarke, MD of Rawson Properties, who then listed 24 major events- from the Rugby World Cup, the A1 Grand Prix and the Nedbank Golf Challenge to the Comrades Marathon and certain surf-ski and mountain biking events to bear witness to his statement.
“The latest coup, the winning of the 2009 DLF Indian Premier League, is additional evidence that the world trusts us to organise these events,” said Clarke. “It shows yet again that we can be competent sports organisers. The FIFA World Cup will, we believe, be the cherry on the top and further boost our image.”
All this top level sporting activity, said Clarke, will focus attention on SA as never before – and is bound to have spin-offs for those marketing property here.
“Many people,” said Clarke, “think that it is extremely difficult for a foreigner to buy property in South Africa. This is definitely not the case: anyone reading the admirably lucid Smith Tabata Buchanan Boyes booklet on the subject will discover that the only people prohibited from buying property here are illegal aliens, which in practice means only those with a criminal or terrorist record.”
Clarke went on to make a few salient points: should the buyer, he said, not wish to purchase the property in his own name, the purchase vehicle must, nevertheless, be locally registered and it must comply with the South African laws, particularly those relating to South African companies, trusts or closed corporations.
This, however, does not, said Clarke, prevent the purchase being made in the name of an overseas company or trust.
Quoting the STBB booklet, “It is important,” added Clarke, “that the entity chosen to hold the acquired property be set up before the offer to purchase is made because a change of the holding vehicle after transfer will almost invariably carry a penalty.”
Non-residents are allowed to buy South African property over the Internet and it is not essential to be in the country to finalise the deal.
Transfer and bond documents, said Clarke, can be signed overseas provided that this is done in the presence of a notary public or at the local South African Embassy and foreign funds can be paid into any South African bank account. In practice, said Clarke, this will usually be the trust account of the attorneys handling the deed of sale and, he said, this is a safe form of investment as these trusts are regulated by professional bodies, of which lawyers are members.
Asked about the position of foreigners raising bonds in South Africa, Clarke said that even if the overseas buyer does not intend to live in South Africa fulltime he is still allowed to raise a bond here. However, this is limited to 50% of the total sale price. It is also, he said, acceptable to the South African Revenue Services for part or all of the remaining 50% to be in the form of a bond raised overseas - it does not have to be paid in cash.
As is the case with South African residents, however, the foreigner borrowing here will have to prove that his earnings are sufficient to pay the monthly instalments. Proof of substantial assets held by the purchaser, said Clarke, is not in itself sufficient to qualify for a South African bond these days - a monthly income stream has to be assured as well.
Buyers will also be subject to a FICA (Financial Intelligence Centre Act) investigation, the purpose of which is to ascertain that the funds used have been legally acquired.
The big question always asked by foreign buyers, said Clarke, is what rules apply to the repatriation of the money if and when the property is sold - but there are no problems here provided the original deed of sale has specified that the buyer is a non-resident and provided the sums still owing on the property are paid as the sale goes through. The rest of the money can be repatriated.
If the foreigner decides at some stage to become a permanent resident (which involves declaring his foreign assets to the South African Reserve Bank) he may not repatriate funds within five years of being accepted as a South African citizen.
All funds repatriated are subject to Capital Gains Tax and the non-resident will pay this on the full amount, even if it is his only South African home - unlike the South African resident who pays Capital Gains Tax only if the profit on his primary residence is above R1,5 million.
Unlike South African residents, foreign residents buying in South Africa, said Clarke, are exempt from South African income tax on overseas earnings – they pay only on money earned here (if any).
The Capital Gains Tax on the sale of a property registered in the name of an individual, i.e. not a trust or a company, will be 25% of the capital gain and will be taxed at the individual’s marginal income tax rate, which at present may not exceed 40%. This, said Clarke, translates to a maximum rate of 10% on the capital gain, which by any standards can hardly be deemed a high tax imposition.
As some foreign buyers in the past have avoided paying Capital Gains Tax on their property sale, the South African Revenue Services now stipulate that any buyer of a property sold by a non-resident for R2 million or more has to retain a percentage of the purchase price and pay it to the South African Revenue Services within 40 days of the transfer. If the non-resident seller is an individual, the amount retained is 5%. If the seller is a non-resident company the amount is 7% and if the seller is a non-resident trust the amount will be 10%.
All in all, said Clarke, South Africa remains a country friendly to foreign buyers and very easy for them to deal with. The tax laws, he said, are enlightened and not onerous and the local legal professions are adequately trained to ensure a smooth transfer of ownership.
For further information contact Tony Clarke on 021 658 7100 or email tony@rawsonproperties.com.
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09 April 2009, 08:35:42
The capital gains tax should not be a deterrent to property investment, says steward
Repeating a message that she has put out regularly over the last six months, Lanice Steward, MD of Anne Porter Knight Frank, told her agents this week that they can safely advise investors to buy into residential property right now because the bottoming out of sales prices has become a reality.
“This,” said Steward, “is accepted by most investors today – but, surprisingly, we still have people who fear this type of investment because it is liable to Capital Gains Tax.”
“This,” said Steward, “is almost invariably illogical and based on misinformation.”
“The simple facts are that when a secondary property (i.e. not the investor’s own home) is sold, it is subject to Capital Gains Tax amounting to 25% of the gain since the property was acquired – without any allowance for inflation.”
This figure should be listed in the individual’s tax returns.
Steward pointed out that, as the maximum individual tax rate is now ±40%, the taxed person will pay at most 10% of the Capital Gain on the property, “not an excessive amount by any standards, especially when it is reputed that he base cost includes the original transfer costs, transfer duty, VAT, all professional fees and the cost of extensions (but not repairs and maintenance)”. The costs incurred in the resale are also tax deductible.
Steward stressed, however, that investors should commit themselves to a four or five year – or even longer – haul.
“The quick turnarounds of 2003-2005 where up to 40% per annum returns were possible are not out of the question but anyone hanging in there for five years must benefit – quite possibly to a great degree than on the JSE Securities Exchange.”
Steward added that those going this route should consult a tax consultant on the relative merits of the property being listed in the buyer’s name, in a close corporation or trusts (which pay higher taxes but are exempt from estate duty).
For further information contact Lanice Steward on 021 671 9120 or email lanice@anneporter.co.za.
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09 April 2009, 08:33:27
Aida has increased its footprint in KwaZulu-Natal by opening a new franchise in Pinetown, and owner and principal Jackie Letsatsi is upbeat about the prospects of the office, in spite of the current slow-down in the property market.
“I take a long-term view and see many opportunities opening up in the local property market. We have a enormous pool of aspiring property owners in South Africa who increasingly view having their own home as a valuable asset.
“Just think of the long way that township properties have come in the past few years and how values have grown,” she says.
“Many consumers living in townships are now firmly established on the property ladder and as they move up the rungs, entry-level buyers will be waiting in the wings. To me this implies a healthy and sustainable market.”
Letsatsi adds that Pinetown has a lot to offer to a very wide range of buyers. “The market caters for everybody, with prices for large two-bedroom flats in older blocks starting as low as R400 000. Units in new townhouse developments cost between R500 000 and R800 000, while family homes sell at prices ranging from R700 000 to R2m.
“But while entry-level properties offer very good value, we are not just targeting the lower end of the market,” she says. “ We will also be serving Westville, Reservoir Hills and Kloof.”
Letsatsi, who has spent the past decade as a commercial and retail leasing agent with various big SA companies, says she decided to open her own estate agency after moving from Johannesburg to Westville near Pinetown.
“Coming from Johannesburg, I have been well aware of Aida’s reputation as an outstanding real estate brand. However, I have done my homework and approached several large property groups but when the chips were down, Aida came out tops.
“The group’s quick and professional response, its attention to detail and work ethic swayed my decision in favour of joining Aida. Since signing up, I have been very impressed with the measure of support I have received and am very confident of continued support,” she says.
“Being associated with a well-known brand such as Aida, which offers excellent training to franchisees as well as agents, and the best tools and business model, will give us a sound footing in the market.”
The office, which is fully BEE compliant, is already open for business and Letsatsi plans to increase the current complement of two agents to eight by the end of May.
Issued by Aida National Franchises
Aida head office: 012 682 9600
Contact: Young Carr
Aida Pinetown: 031 266 5625
Contact: Jackie Letsatsi
Distributed by/ versprei deur
The Mega/ Press Network
Pse direct any enquiries to
012-333-6644,
073-946-9649 or
megw@telkomsa.net
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07 April 2009, 15:43:09
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Edition 13 of 2009, Friday, 3 April 2009
Dear Reader
Vehicle news – Naamsa, The National Association of Automobile Manufacturers reported that vehicle sales plunged by 30.1% to 33326 units last month compared to the same months in previous years. I don’t know about you but I’m curious to see the outcome for April 2009 after the 1% interest cut we’ve seen last week. Will South Africans shop more?
Commercial property – Although it fell sharply last year it still managed to beat inflation. This according to the SA Property Owners Association/IPD property index. Is it the right time to buy commercial property? We place two articles that can help you in answering this question. Commercial real estate still beats inflation - for now and Commercial real estate: world's top returns
Residential property – According to the National Association of Realtors US pending home sales have edged up, hinting at a possible pickup of sales activity in coming months. Currently the property market is still underperforming. No good news in the South African property market as the prices of residential property continue to come down. We bring you news from three of the Banks;
- FNB - March house prices down
- ABSA - House prices still falling
- Standard Bank - Falling interest rates to boost house prices
Can things get worse? Dr Johan Botha, of Standard Bank's economics division told Realestateweb that the property market would probably be in the doldrums until the end of this year. "I don't think we have reached the bottom yet. There could be bargains at the moment and going forward."
Dr Neal Bruton, of RGT Smart Market Intelligence Ltd, said he expects the interest rate to come down by another 2%, which would mean consumers would enjoy a roughly 29% cut in their debt financing costs compared to December.
Summit TV spoke to Mike Schussler from Economists.co.za about the growing evidence that without further rate cuts South Africa is going to experience a severe recession and more job losses Tricky times ahead
Last week we reported that Standard Bank is still not accepting new home loan application that has been submitted through a bond originator. This week we can report that Standard Bank said it is reconsidering their participation in the origination market. It’s still a hard time for mortgage originators as commissions are cut and the low approval of bonds continue.
What is carbon footprint? A carbon footprint is the measure of the impact that our activities have on the environment. According to Designs> if you are lucky enough (or insane enough) to be planning the construction of a new home, you are in the right place to make a huge difference to the future of the planet. Before you even start with assessing materials and construction methods, take a look at the orientation of your home. As we are in the southern hemisphere, a building norm is to have living areas facing north, north-east or north-west, with service areas such as bathrooms and kitchens facing south. It’s astounding how often builders and developers get this wrong! How changes in the home can make a difference to carbon emissions by:
Uniondale is better known for its ghost than for the scenic roads it has to offer the tourist. These roads must be the Karoo's best kept secret. Uniondale is ideally situated to form part of circular tourist routes that include destinations such as Oudtshoorn, Baviaanskloof, Port Elizabeth, Knysna and George. Read more in Focus on Uniondale, Western Cape, South Africa
Enjoy!
The editor
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03 April 2009, 14:42:37
The first South African branch of the international Harcourts real estate group opened in Somerset West in the Western Cape this week.
Top local agency Homenet Platinum has converted to the new brand and relocated to larger premises as part of the national Harcourts rollout following the last year’s purchase by the international group of a major stake in Homenet, which has now been renamed Harcourts Africa.
Recently rated by world real estate authority Stefan Swanepoel as one of the top five international real estate brands, Harcourts operates in Australia, New Zealand, China, Fiji, Indonesia, Singapore, Zambia and Botswana as well as South Africa and has more than 600 offices, 4000 sales consultants and a sales volume in excess of $19,5bn a year.
It is, says the Swanepoel Trends Report for 2009, an organisation that is leading the change in expanding successfully into other countries and continents, thanks to its clear purpose and youthful business philosophy
Martin Schultheiss, CEO of Harcourts Africa, says it is also a “fresh and dynamic brand that is going to make a huge impact on a generally stale local real estate industry by lifting our newly-branded Harcourt branches to the next level of operation.
“While most real estate companies are recording their worst results in history, Harcourts International is breaking new ground and gaining bigger market share. It is doing that by putting people before brand and equipping them with the best training, systems and technology to thrive in a tough market, and rapid access to all that is the advantage that our franchisees will now have.
“What will take most companies in South Africa millions of rands and years to develop, we are able to introduce instantaneously to our franchisees and more importantly, we will be able to continue to evolve at the pace of international change without requiring massive dollar inputs.”
Steve Caradoc-Davies, principal of the new Harcourts agency in Somerset West, has been keen to convert since the Homenet/ Harcourts merger occurred. “The two groups are an excellent fit in that their core values are the same. At the same time alignment with Harcourts will give us access to their excellent systems, technology, training and marketing and enable us to substantially add to our already impressive offering to buyers and sellers,” he says.
ISSUED BY HARCOURTS AFRICA
FOR MORE INFORMATION CALL
MARTIN SCHULTHEISS ON
031-201-1060 OR VISIT
www.homenet.co.za
Distributed by/ versprei deur
The Mega/ Press Network
Pse direct any enquiries to
012-333-6644,
073-946-9649 or
megw@telkomsa.net
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02 April 2009, 15:49:56
 World-renowned personal finance guru Suze Orman is obviously no slouch when it comes to picking good investments and one of her most recent is a home in South Africa — an apartment in the über-plush The Cliffs development in Northcliff, Johannesburg.
This speaks volumes about the positive prospects for South Africa’s property market — especially at the upper end — as this is the only country besides the US where Orman has chosen to buy. (She also owns a townhouse in San Francisco, a condominium in Fort Lauderdale and two apartments in New York.)
Her purchase underlines the growing investment potential, in world terms, of upmarket properties in Johannesburg in particular — even though the city has long been regarded as the poor cousin of Cape Town with its multi-millionaires’ playground along the Atlantic Seaboard
Position, position, position
Indeed, Orman says she bought the Northcliff property "for the same reason I invested in the number one property markets in the USA — San Francisco, Florida and New York — position, position and position."
Johannesburg’s attraction, says Lew Geffen, chairman of Sotheby’s International Realty in SA, is that it is increasingly recognised by the international business community as the 'real gateway' to potentially lucrative South African and African markets.
"Cape Town has natural beauty and glamour, but it’s where the money goes on holiday. Jo'burg has the business infrastructure and connections: it’s where the money lives and works. It is one of the three biggest cities in Africa and rated as the best of them to live in, so if you’re an international businessman looking to set up an African operation, Jo’burg is the place to start.
A great place to buy luxury property
"And because of its growing global reputation, it’s a great place to buy luxury property especially if you are buying in dollars, euros or pounds. Mansions in suburbs such as Sandhurst and Hyde Park cost a fraction of what they would in the upper income suburbs of American and European cities and for high-flying executives who prefer lock-up-and-go properties there are apartments such as those in the Melrose Arch, Michelangelo and The Cliffs developments that are also very well-priced in world terms."
At The Cliffs, for example, the three apartments left are priced at between R5-million and R9-million — or around $500 000 to $900 000 which is an easy reach for someone like Orman who makes about $80 000 per speaking engagement as well as the revenue from her books, columns and TV shows.
And as for position, Northcliff is not called 'the rooftop of the City of Gold' for nothing. It is quiet, exclusive and boasts many architecturally designed homes as well as spectacular and unrestricted views that are the perfect backdrop for The Cliffs's sleekly modern apartments. "It is," says Geffen, "an oasis of luxurious calm which is actually not unlike the Atlantic Seaboard in that its property has an increasing rarity premium."
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02 April 2009, 15:45:18
As expected, according to the latest FNB house price index that was released on Wednesday, house prices are down by 7.8 percent year-on-year in March after declining by 6.2 percent year-on-year in February.
This was despite the FNB Residential Property Barometer already having shown some improvement in residential demand since late 2008 and is believed to be the result of a significant oversupply of stock still prevalent in the market.
Such oversupplies come from a household sector that still faces significant financial stress. On a quarter-on-quarter annualised basis, the SA Reserve Bank reported last week that real disposable income had seen negative growth to the tune of minus 1.9 percent in the fourth quarter of last year, the second successive quarter of negative growth, driven by the onset of recessionary conditions in the South African economy.
"The weak economic environment is contributing to a significant amount of 'offloading' of property with the FNB Property Barometer survey reporting estate agents' estimates that about 26 percent of total sellers are selling in order to downscale due to financial pressure," said FNB property strategist John Loos.
Decline will continue for most of 2009
"As a result of oversupplies, it remains likely that this situation of national year-on year house price decline will continue for most of 2009."
On a month-on-month basis minus two percent deflation was recorded, unchanged from the minus two percent of the previous month.
"Whereas until recently it was the market for two-bedroom houses and less where the weakness appeared to be worst, as compared to the three-bedroom market, it would appear that the differential has narrowed as the three-bedroom market also reflects increasing strain," Loos said.
According to the index, for the first quarter of 2009, the average freehold two-bedroom house price — R315 468 — declined by 13.2 percent year-on-year.
This represents a further deterioration from minus 10.3 percent year-on-year in the previous quarter. This is believed to be reflective of the financial strain that lower income groups are experiencing as much of this segment is believed to be found in such lower income areas.
The sectional title 'two-bedroom and less' market continued to fare considerably better than its freehold counterpart, but nevertheless continued with its very weak performance in the first quarter.
The average price of sectional title two-bedroom houses — R623 613 — showed a mild 1.2 percent year-on-year rise using revised figures while the average price of sectional title units with less than two bedrooms — R442 896 — declined by 3.3 percent.
The three-bedroom market has seen most of its recent price inflation coming to an end.
The average price for sectional title three-bedroom units — R903 544 — showed slight year-on-year price inflation of 0.2 percent in the first quarter, down from 2.2 percent in the previous quarter while the average price of the mildly more affordable freehold three-bedroom category — R799 087 — also inflated by a mere 0.2 percent, down from 3.9 percent.
"It is still believed that the apparent superiority in performance of the three-bedroom market until very recently, compared to two-bedroom and less sectional title property, is explained by the belief that much of the buy-to-let surge back in the boom years was focused on the sectional title two-bedroom and less market as was much of the first time buying attention that we saw at the time, and that these forms of demand are more cyclical than established family demand that possibly dominates the three-bedroom market," said Loos.
Tough economic times have recently become a major problem for most market segments
"However, tough economic times have more recently become a major problem for most market segments and this may well have negated any apparent advantage that the three-bedroom market may have had due to a lack of reliance on the more cyclical buy-to-let and first-time buying demand."
Looking ahead, Loos said: "Little changes to our expected outlook for 2009. Tough economic times make for a slow road back to health in the market.
"The downward trend in debt-to-disposable income ratio is expected to resume in the first quarter and the debt-service ratio should get additional downward impetus from interest rate cuts this year," he said.
He noted that improvements in the debt service ratio were a great predictor of future improvement in mortgage loan default rates and as such it is realistic to expect that non-performing mortgage loans will start to decline later this year.
"The bottom line, though, is that weak economic conditions and poor disposable income growth make that progress towards a more manageable household debt situation slower and this in turn can be expected to contain the pace of residential demand growth as well as the recovery in house price inflation.
"Therefore mild residential demand recovery as 2009 progresses remains the expectation, but year-on-year house price deflation is expected to be with us for most of the year until such time as oversupplies are mopped," he said.
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02 April 2009, 15:44:17
South Africa remains a popular choice for Germans who are looking to relocate to warmer climes, says Dina Porteous, area principal in the Margate area for Pam Golding Properties.
Yvonne Booysen, manager of PGP Margate's rental division, together with Gaby Moessner, manager of the Pam Golding Property group's German office, recently attended the high-profile Süd-afrika Tage 2009 show in Germany, an event which attracted high net worth investors and incorporated travel, trade and business meetings. The latter included a business conference highlighting investment opportunities in Southern Africa.
"Our exhibit was a focal point of the expo," says Porteous, "attracting a great deal of interest from visitors. It is abundantly clear that what sells South Africa abroad — and in Germany — is our abundance of sunshine coupled with our friendly people and beautiful homes including those in our portfolio of properties which we marketed over there."
Süd-Afrika Magazine, a publication which focuses on Southern Africa and is a popular subscription magazine in Germany, hosts this annual show. Three locations in various parts of Germany are selected by the publishers of the magazine and they then invite their subscribers and the general public to attend these annual exhibitions, offering them the opportunity to have one-on-one contact with exhibitors.
This year the show was held in Mainz on the outskirts of Frankfurt, in Neuss in the Koln, Dusseldorf region and in Hamburg. Each show was a two-day event linked to food, music and general information on Southern Africa. The exhibitors ranged from tour operators and immigration experts to arts and crafts specialists, 4 x 4 trails, luxury hotels and wine farms.
Shows based around a SA theme
"The shows are based around a South African theme and specially prepared lunches and dinners form part of the event," says Porteous. "Guests are invited to experience a 'taste' of Africa with a selection of South African dishes on offer. Boerewors was on the menu at the dinner in Hamburg — not quite the same as the boerewors back home but close."
"This is a discerning market and overseas buyers are extremely well informed about the South African property market — in particular regarding market related prices," comments Gaby Moessner. "Those visiting the PGP stand were mainly between 40 and 55 years of age and focused on acquiring property as a business or as a second home for holidays — also with rental income in mind. The advantage of acquiring lock-up-and-go apartments and homes was also a major draw card among those seeking property in South Africa. Of interest were homes across the board and priced from as little as R1-million to over R5-million.
"Many clients who had previously been in contact with our German office and were in the process of planning a trip to South Africa during 2009 took the opportunity to talk to us in person and discuss their investment ideas in detail. We also saw a large number of new clients planning to invest in South Africa who asked us for advice regarding the best areas to consider taking into account price, climate and their business considerations. The process of making such an investment decision often takes up to 12 months and this expo was the ideal platform to discuss matters in detail," says Moessner.
"There is still keen interest from the German market regarding the purchase of property in South Africa — surprisingly so at a time when the global economic climate is volatile and occupies almost every news bulletin, both in Germany and elsewhere on the globe," says Porteous. "Positively, the crime issue does not feature too much in conversations about day to day life in South Africa."
The Western Cape remains the most popular relocation choice
Porteous says potential German buyers in general prefer standalone homes rather than those in golfing or townhouse developments. "In Germany space is at a premium so this is a top priority when it comes to buying property in South Africa. The Western Cape — including the Overberg region — remains the most popular relocation choice with bed and breakfast properties a fashionable choice for the younger generation who wants to generate an income from an investment in South Africa. This is followed by the Eastern Cape — with the focus on natural, unspoilt environments and value for money. The hot climate in KwaZulu-Natal often deters German buyers from purchasing property in this region with the climate in the Western Cape more suited to their needs.
"It was refreshing to gain another perspective of South Africa from those in another country such as Germany and reinforced how lucky we are to live in this delightful, interesting and complex country," adds Porteous.
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02 April 2009, 15:37:37
Burgundy Estate is an entirely new suburb which is building its own distinct identity on one of the last remaining valuable pockets of land bordering Durbanville's wine farms and the historic De Grendel wine estate.
For a limited period of time, Better Homes is exclusively offering to pay a 15 percent deposit on behalf of all buyers purchasing a family home within the estate.
Ranging from R1.8-million to R2.3-million you only need to qualify for an 85 percent bond to secure one of these upmarket homes, and there are no transfer duties payable.
The brand new three- and four-bedroom homes are available for immediate occupation. Plots range from 520m² to 620m² and homes from 170m² to 280m².
Just 20 kilometres from Cape Town CBD and 10 kilometres from Century City, the estate will be completely self contained and will have its own junior and senior private schools; a shopping centre; mashie golf course; as well as other recreational facilities. There will also be proactive security measures in place.
For more information on this special and other Burgundy Estate properties please contact Jolene Alterskye +27 82 447 6169 or email info@burgundyrealestate.co.za.
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30 March 2009, 09:00:30
'To bid or not to bid — that is the question…' Hamlet's ambivalence in the famous 'to be or not to be' soliloquy is comparable to the quandary in which those considering buying property on auction have found themselves. Not only is there conflicting opinions about when to buy residential property from national as well as international experts, but buying on auction is often misunderstood. It then becomes daunting. Without a bona fide Nostradamus to predict market movements accurately, it all remains speculative. The further 100 basis point drop announced recently is however a positive move by the Reserve Bank to ease the mortgages of many borrowers and move one step closer to a property market recovery. There is one certainty though: Sale by auction is quickly becoming the preferred way to buy all property — not just the wave of sales from distressed mortgages.
So what is happening globally? In the USA sale by auction is bringing in billions of dollars. Across the country shrewd investors alert to outrageous bargains are beginning to stir. In California and Florida thousands of small investors are crowding auction venues. There are even 'foreclosure bus tours' with free champagne and onboard messages. Some analysts believe it’s the first wave of bargain hunters who will tell us when a housing recovery will happen. They are the ones diligently buying excess supplies and restoring some sort of equilibrium out of the chaos.
Optimism is as prevalent as pessimism
In the UK some experts predict that the market will never recover to its previous levels as it suffered greater depreciation than other countries. Others feel that there is a risk of another housing bubble because demand has not evaporated and once mortgage lending returns there is a danger that the huge demand will be unleashed resulting in ever increasing house prices again. There are even some that are predicting the decline will continue to the end of 2009 with a further 15 percent or even 30 percent drop to go. But nobody can predict with certainty exactly what is going to happen — optimism is as prevalent as pessimism.
In the USA auction companies will sell up to 5000 houses at one mammoth auction sale whilst in the City of London there are distressed auctions selling up to 500 houses a day. The sales are quick and efficient so the lender is able to monetise their defaulting loans immediately. And Australia is no different. A staggering 85 percent of real estate property is today sold by auction.
In this current economic climate where progress is measured in terms of a reduction in the decline in growth a conservative monthly German poll, far from brimming with optimism, has shown investor sentiment to have slightly improved.
Once-in-a-decade opportunity
Experts suggest that there is currently a once-in-a-decade opportunity to pick up residential property at bargain basement prices. Alliance Group, South Africa’s largest auction company, believe that with interest rates dropping and rentals strengthening there could be no better time to get into the market. One of the positive indicators that the residential property market is still active is that buying activity of distressed houses has surged.
Jacques du Toit, Senior Property Analyst at Absa comments: "The expectation is for the residential property market to continue experiencing relatively difficult conditions for most of 2009 despite declining interest rates. It is probably the time to buy property as an investment, taking into account demand and supply conditions and recent price trends."
Alliance Group also believes that 2009 will remain a tough year despite interest rate drops which have been having a muted effect. Throughout most of last year the sector of the residential market that was most affected were single residential units previously valued in the R1-million to R3-million category with particular problems in the secondary and leisure housing markets.
John Loos, Property Strategist for FNB, agrees, "Our FNB property barometer survey of agents suggests that as much as 26 percent of total selling could be in order to downscale due to financial pressure. So there is still financial stress and desperate selling. I expect non-performing loans of banks to start declining later in 2009, but that means that there will still be a high level of repossession and sales in execution for most of this year before it gets better. There is an opportunity for investors to climb in and scoop some desperate sellers’ properties."
And Rael Levitt, CEO of Alliance Group, believes that many of these will be residential developments, development land and incomplete developments. These are the sectors which will experience most of the pain this year. In mid-2008 the upper end of the residential market and particularly the luxury market over R10-million was not affected by the downturn as wealthy buyers continued investing in affluent areas. Now there is no doubt that these markets will be affected and whilst there is still muted buyer demand, it will be the buyers who will dictate prices."
Hordes of opportunistic buyers picking up properties at distressed auction floors
Distressed auction floors across the country are burgeoning and there are hordes of opportunistic buyers looking to pick up properties at lower prices. In the last downturn banks couldn’t give away distressed properties and had to keep them on their books as properties in possession. Shrewd investors know that at the moment they can get high rentals which offer a great investment while they wait for the market to rise. They are in a win-win situation.
"Now there are multitudes of buyers who have access to financing and see the current period as a period of opportunity as unprecedented volumes of houses hit auction floors," comments Levitt.
What is certain is that whenever you decide to enter the property market, buying on auction is the way to go. You only have to look at international trends to see that property going under the gavel is increasing at an exponential rate in sharp contrast to the snails pace of private transactions.
In South Africa, figures speak for themselves. Over 5000 buyers by auction in the last six months can’t be wrong as Alliance Group prepares to take more than 600 properties to auction in the next two weeks.
"House price deflation may start to bottom late in 2009 and that means that currently there is no better time to pick up real estate at lows which have not been experienced in South Africa in decades," adds Levitt. As investment guru Warren Buffet says, "Look at market fluctuations as your friend rather than your enemy; profit from folly rather than participate in it". According to Levitt, "we are urging all potential investors to go to our auctions to get an idea of the extent of bargains which are available. Now is the time to profit off the folly of the last five years' boom".
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30 March 2009, 08:59:57
The RealNet property group is reporting sharply increased property sales in its non-metro franchises.
"These offices are reporting exceptional sales in stark contrast to the end of last year when several of our non-metro outlets had few, if any, sales for consecutive months," says Hennie Combrinck, area manager of the group’s non-metro region which includes centres such as Nelspruit, Thabazimbi, Polokwane, Tzaneen and Witbank.
"One example is Tzaneen," says Combrinck. "The market was very flat in the last four months of last year and the office recorded no sales. But by the end of January it had facilitated six successful transactions with another two under negotiation."
Other non-metro offices in the RealNet stable that have reported an upsurge in sales include Rustenburg and Brits in North West and Witbank and Nelspruit in Mpumalanga. Nelspruit has reported a marked increase in the local residential as well as commercial market.
Combrinck adds that increased buyer activity is also reflected in a sharp increase in inter-franchise buyer referrals. "On top of that the ratio of referrals to successful transactions has climbed from 3:7 at the end of last year to 4:6," he says.
It is still too early to predict whether this trend will be sustained, says Combrinck, and at this stage it is only possible to speculate about the reason for the sudden spike in sales.
"One possibility is that investors now deem the market to be at its lowest turning point which creates good investment opportunities, especially in the light of a lower interest rate cycle. This view is borne out by the fact that some recent buyers in our non-metro areas have bought multiple properties.
"A second possible explanation is that the lower interest rate cycle is spurring renewed activity among buyers who had previously adopted a wait-and-see attitude. The spike would then represent a sudden release of pent-up demand that is likely to be sustained by further rate decreases that will make property even more affordable."
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30 March 2009, 08:46:50
February was a good month for sales of residential property in the wider western and north-western Johannesburg areas, RE/MAX estate agents said on Tuesday.
The agency recorded 33 sales in February in the price range of R335 000 for a one bedroom older apartment in Florida to a R2.9-million luxury home in upmarket Florida Hills, said RE/MAX's Gavin Bouwer.
"All transactions, which included two other apartments of R400 000 each, involved some form of cash deposit with five of the sales being concluded for cash," Bouwer said.
The agency's average selling price for February, at just under R1-million, was higher than earlier months. However, Bouwer said he was uncertain of the market's future stability as banks were 'still blowing cold on lending'.
Bouwer said that early March sales returns already suggested a leaner month.
This was in spite of no shortage of potential buyers still trawling the market particularly in the 'blue collar' lower price ranges where prices, he said, had now settled around those of about two years ago.
In the upper price range, above R2-million, homes were being discounted by some 10 percent on 2007 prices, he added.
Buyer interest remained high, price-focused and mainly in response to print media and internet advertising with show houses having lost much of their traditional appeal and attracting poor attendances.
Bouwer said his staff was showing homes to financially able buyers, but their attitude towards signing offers was largely cautious.
"It could be from uncertainty over the depth or unknown length of the recession or just hanging on for further rate cuts, or even prospects of bargain buys, but there's no shortage of buyer interest from all racial groups, just of their willingness to commit."
Tight lending, high interest rates and the extensive media coverage given to the general recessionary conditions, Bouwer said, had seen sellers change their attitudes towards realistic asking prices and negotiability. He gave the example of a February seller who accepted an offer of R1.35-million on his asking price of R1.5-million, but when the financing on the deal failed he quickly agreed to a lower offer of R1.2-million.
Emigration remained a distant second reason to that of selling for financial reasons, Bouwer said.
Against the confused mix of general market conditions, he advised those home owners who did not have to sell to wait for an improvement which he expected on the back of lower interest rates.
He also anticipated more stable lending from the banks, which he classified as 'pretty erratic' in terms of deposit requirements.
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27 March 2009, 08:14:22
A new era in home buying dawns – 100% bonds available for certain buyers
Rob Lawrence, National Manager of the bond origination company, Rawson Finance, has drawn attention to the fact that, for those in the right income bracket and buying at the approved price levels, 100% bonds are still available – and his company, he said, is making a point of punting this throughout SA.
“Certain press reports,” said Lawrence, “have implied that the banks have turned their backs on 100% loans, possibly in perpetuity – but here at Rawson Finance through one enlightened bank we can slot suitable clients into finance at this level.”
To qualify for a 100% bond, he said, the applicant must not earn more than R11,210 per month and, if a couple purchase, although their incomes will be added together, neither can exceed that individual limit. Effectively, said Lawrence, this means their joint incomes may not exceed R22,420 and , if they buy jointly, the house they plan to buy must not cost more than ±R540,000. In some cases, with this product, all or some of the acquisition costs may be included in the bond.
“The banks’ offering is, therefore, ideal for couples, young or old, who may be buying for the first time or who are moving up from an RDP house.”
Unfortunately, uninformed reporting had, said Lawrence, led to “considerable despair” at the lower level of the market and the belief among many that they would never become homeowners – but the availability of these 100% bonds can, he said, change all that.
Lawrence advised those who will now go house hunting with renewed hope to cut right back on their personal debts – because these have to be taken into account by the banks if they are to comply with the National Credit Act as a pre-requisite to qualify for these bonds to ensure that they have an “absolutely clear and squeaky clean” credit record, rectifying as soon as possible any missed or short-paid accounts.
For further information contact Rob Lawrence on 021 658 7100 or email rob@rawsonfinance.co.za.
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27 March 2009, 08:13:22
Cape residential property
Institute chairman says big interest rate cuts now “absolutely essential”
Another high profile figure in the Cape property sector, Ivan Neethling, Chairman of the Western Cape branch of the Institute of South African Estate Agents, has joined the growing numbers of industry leaders from all sectors who are saying that the South African Reserve Bank’s monetary policy is now hopelessly conservative and a significant drop in interest rates is essential in the near future.
“The release of the dismal fourth quarter, 2008, GDP figures,” said Neethling, “should, in many people’s view, have stirred the South African Reserve Bank into action and made them realise that they cannot delay an interest rate cut any longer.”
A minimum cut of 2% followed by further cuts in mid-year, said Neethling, had been expected not only by the property sector but also by many economists and the business community as a whole.
“It does appear,” said Neethling, “that the cries of ordinary South Africans, the business sector and leading politicians are falling on deaf ears. Mr Mboweni, it seems, is so determined to fight off the international credit crisis by keeping interest rates high that he is prepared to let the economy shrink further.
“It has to be accepted that if we are serious about turning this recession around, stimulating the economy and creating urgently needed jobs, a radical reduction in interest rates is now absolutely imperative.”
Neethling said that State institutions like the South African Reserve Bank should never see their task purely in regulatory terms, i.e. in imposing fiscal disciplines.
“They are at all times, but particularly in difficult times like the present, also responsible for using the tools at their disposal to stimulate business confidence.”
Right now, said Neethling, the rigorous application of the National Credit Act, “for which the government has, quite rightly, been highly praised”, has in the housing sector, and more so in deprived communities, created a huge bottle neck to accessing housing finance.. If any progress is to be made towards housing the poor, decisive intervention will be required by Government.
“Industry leaders,” he added, “also appreciate the need to attract foreign direct investment by offering high interest rates ” “but the general consensus is that this is impacting very negatively on local business and is leading to huge job losses for firms which can no longer keep their doors open in this punitive economic environment.”
The South African economy, unlike many others, said Neethling, should be sufficiently strong to be self-sustaining and self-financing.
“A 3% to 5% growth rate is needed if we as an emerging economy hope to create jobs and remain a meaningful player on the world stage. We cannot sacrifice all else merely to attract more foreign direct investment.”
The irony of the current situation, said Neethling, is that the South African Reserve Bank appears to be standing alone instead of collaborating closely with other stakeholders such as the Department of Finance, who are providing huge stimulation through its works programmes.
“Surely these initiatives should be driven concurrently,” he said.
For further information contact Ivan Neethling on 083 527 2626.
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27 March 2009, 08:11:57
Helderberg estate agency chief blames auctions for some low property prices
Like certain other senior staff involved in real estate marketing, Schalk van der Merwe, franchisee of Rawson Properties’ Somerset West and Strand franchises, believes that, while it is inevitable in the current tight property market, the growing power of auctioneers in real estate is having a negative effect on prices.
“All too often,” said van der Merwe, “the client who resorts to the use of an auctioneer will be the one who has become desperate. He has to go for a quick sale at whatever price he can get because he is under pressure from his bank. He may have lost a job or found himself lumbered with a new debt – but he needs a speedy solution. In these circumstances, the chances of the home selling at its true market value are slight. Sellers in this situation often fail to contact a good estate agency for an alternative option.
“What will usually happen on auction is that a shrewd buyer will get the house at well below the market value and then a few weeks later put it back on the market via an agent. The price will still be well below its true value but the quick in-and-out speculator will probably make 10 to 15% on the deal in under three months.”
Whether bought on auction or via an agency, said van der Merwe, the lower priced units in Strand and, to a lesser degree, in Somerset West (i.e. in the R250 000 to R450 000 bracket) are now an exceptionally good proposition for buy-to-rent investors.
“Demand for rental properties has picked up since the National Credit Act came into being,” he said. “The returns on this type of property can be very good. For example, on a R250 000 apartment in our area, it is quite possible to get a rent of R2 000 to R2 300 per month. This, in turn, means that from fairly early on – possibly in some cases from the outset – the owner can cover his full monthly bond repayments, a situation that is still not typical elsewhere in the Greater Cape Town area.”
Drawing on his four years’ experience in the London property market, where he still owns property, van der Merwe said, “I do assure you that despite – or because of – the huge drop in London property values, buying-to-rent there is going well. The lesson to be learned from that market, I believe, is that in a recession, the buy-to-rent market tends to flourish.”
For further information contact Schalk van der Merwe on 082 880 7071 or email schalk.sr@rawson.co.za.
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27 March 2009, 08:08:21
Cape residential rental market still not booming – but the future looks brighter
Over the last year there have been ongoing reports that rentals of residential properties will rise faster than they have done for a decade or more.
This, says Greeff Properties Rental Consultant, Caren de Nobrega, has not, in fact, happened to anything like the degree predicted.
“It was thought that the lack of bond finance, the higher interest rates and the increased cost of living would cut into the demand for owned homes and this would boost the rental market. However, the near-recessionary conditions have also made people tighten their belts and cut back on every aspect of expenditure – including rentals.”
Landlords, says de Nobrega, will probably this year have to accept that annual rental rises of only 8 to 10% are likely to be the norm, at least until early 2010, and in some cases it may even be necessary to forgo an increase to hold onto a good tenant. Right now, she says, the lower priced properties commanding rents well under R10,000 per month are performing rather better than the high rent properties. Rentals for homes and apartments in the upper bracket are now often overpriced and these premises are sometimes standing empty for months. In general, she says, any property renting at over R25 000 per month probably needs a R5 000 downward adjustment in the rental.
Greeff Properties Rental Division has some 65 managed properties and specialises in Southern Suburbs rentals. In most cases they administer the property, providing a service which includes maintenance, regular inspections and rent collection (for a fee of 12% of the monthly rental) – but they also run an active tenant finding service (for which they charge 7% of the first year’s rental), leaving the owners to do their own management/administration.
One of the big advantages of employing an experienced rental agent, says de Nobrega, is that they know how to check accurately the applicant’s monetary and renting history. They know, too, how to deal with recalcitrant tenants who believe that the landlord is the last creditor they should pay.
Mike Greeff, Chief Executive of Greeff Properties, says that de Nobrega’s comments should not deter people from buying to rent. Returns, he believes, should be calculated over a four or five year span and investment property should never be short-term.
“The plain truth,” he said, “is that at this time, when many JSE Securities Exchange stocks have lost over 50% of their value, the Cape Town Southern Suburbs property sector has by contrast been a star performer and this can be seen in the portfolios we handle. Very few of our landlords have had any real difficulty with rental payments and most units have continued to show satisfactory to good capital appreciation year-on-year. The upside is that as interest rates are likely to decrease as predicted in the year ahead, so the returns on bonded units will increase.”
For further information contact Mike Greeff on 021 763 4120 or email info@greeff.co.za.
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27 March 2009, 08:06:18
Accurate evaluations can set an agency apart from its rivals, says Rawson Somerset west manager
Despite the drop off in sales over the last six months, Rawson Properties Strand and Somerset West branches, which have since August 2006 and February 2008 been run by Schalk van der Merwe (son of Johann van der Merwe, the franchisee) are both still able to employ six agents.
“So far,” says van der Merwe junior, “almost all our agents have worked exceptionally hard and found it possible to stay in business. Certain other local agencies, however, have been far less successful in keeping staff.”
A factor which he believes is making a big difference to the public’s perception of Rawson is that all his team accept that it is ethically essential to value houses accurately and scientifically and to avoid the temptation to overvalue so as to get the mandate.
“This policy,” he said, “has won the respect of the local market: we are now trusted to a greater degree than most.”
Valuations, he said, are calculated on three points: the replacement costs, the likely capital growth and the comparative current sale prices as recorded in the Deeds Office and in rival companies’ advertisements.
“If you put all these statistics into the mix, you will usually end with a reliable figure.”
Currently, says van der Merwe, most Somerset West prices being achieved by his agents are 10% to 20% down on the high points of 2007 while in Strand drops have been in the order of 20 to 30%.
At Somerset West this means that the majority of homes now selling are in the R1,2 to R2,9 million bracket while those at Strand are usually between R600 000 and R1 million, but, says van der Merwe, his agency operates across the board and has homes in a far wider price bracket.
An upswing, van der Merwe believes, will depend on interest rates dropping further and, more importantly, on the banks changing their attitude to loans while still complying with the National Credit Act.
“In July/August last year we had clients regularly qualifying for 110% loans. Now they are often asked for a 20 to 30% deposit – and some banks are just not interested in quoting on a bond if they have to compete against others.”
Van der Merwe believes that the prices are now close to as low as they are likely to go and that by 2010, if not before, a steady upward swing will become evident.
“There are those who say that SA will, along with the rest of the world, take three to five years to recover from the current financial crash. The evidence in my area points to recovery long before that because there is a huge pent up demand for home ownership, especially in the sub-R1 million bracket, which will bear fruit as soon as the banks decide to come to the party – and to me that seems inevitable in the near future, both for the banks’ sakes and for the sake of their customers.”
For further information contact Schalk van der Merwe on 082 880 7071 or email schalk.sr@rawson.co.za.
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27 March 2009, 08:04:40
The sale of ten Rawson franchises shows confidence in S:A residential property is still strong.
On several occasions this year Tony Clarke, MD of Rawson Properties, has warned his group’s franchisees against adopting a recessionary mindset.
"Supposing," he said, "that you never read a newspaper, watched TV or listened to talk about the economy – how would the actual facts of today's property market strike you?"
Clarke believes that in most cases agents would simply work hard and achieve successes, albeit at a lower than ideal rate.
"Out there in the market," he said, "almost everyone has confidence in property as a long-term investment. Furthermore it is still seen as a good career for those who are dedicated and prepared to follow our formula.
"If you want proof of this statement," said Clarke, take a look at the demand for Rawson franchises. This remains very strong indeed, even though we are still rejecting some 70% of all applications."
In the last quarter said Clarke, the franchise sales team had sold or resold franchises in Brackenfell (which is already becoming a star performer), George, Saldanha/Vredenburg, Bloemfontein South and Bloemfontein North, Kimberley, Germiston, Secunda, Tzaneen and Vanderbijlpark.
This, says Clarke, is an indication that the average South African is still very positive about residential property and sees it as a good career choice.
"It has to be borne in mind," he said, "that franchise sales are slower today than previously because under the new educational rulings a franchise principal has to have quite advanced qualifications and this means that most of our franchise buyers now are from the industry, not from other sectors, as before."
Those without property experience who would nevertheless still like to buy a franchise can do so, added Clarke, by appointing a qualified principal who will mentor them for a year. If they then pass certain examinations they will be eligible to own and run a franchise.
Clarke has predicted that double-digit growth figures in property values will be seen by the second quarter of 2010 provided that the interest rates are cut further in the near future. He would like, he says, to see a cut of 3% to 4% altogether.
"Even though it is so conservative, I cannot see the SA Reserve Bank holding out against the repeated calls for economic stimulation which are being made by every sector of the economy," he said.
For further information contact Tony Clarke on 021 658 7100 or email tony@rawsonproperties.com.
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25 March 2009, 13:11:11
Rob Lawrence, National Manager of the bond origination company Rawson Finance, has drawn attention to the fact that, for those in the right income bracket and buying at the approved price levels, 100 percent bonds are still available — and his company, he said, is making a point of punting this throughout SA.
"Certain press reports," said Lawrence, "have implied that the banks have turned their backs on 100 percent loans, possibly in perpetuity — but here at Rawson Finance through one enlightened bank we can slot suitable clients into finance at this level."
How to qualify
To qualify for a 100 percent bond, he said, the applicant must not earn more than R11 210 per month and, if a couple purchase, although their incomes will be added together, neither can exceed that individual limit. Effectively, said Lawrence, this means their joint incomes may not exceed R22 420 and, if they buy jointly, the house they plan to buy must not cost more than about R540 000. In some cases, with this product, all or some of the acquisition costs may be included in the bond.
"The banks' offering is, therefore, ideal for couples, young or old, who may be buying for the first time or who are moving up from an RDP house."
Homeownership now possible
Unfortunately uninformed reporting had, said Lawrence, led to 'considerable despair' at the lower level of the market and the belief among many that they would never become homeowners — but the availability of these 100 percent bonds can, he said, change all that.
Lawrence advised those who will now go house hunting with renewed hope to cut right back on their personal debts as these have to be taken into account by the banks if they are to comply with the National Credit Act. Doing so is a pre-requisite to qualify for these bonds. Applicants must ensure that they have an 'absolutely clear and squeaky clean' credit record, rectifying as soon as possible any missed or short-paid accounts.
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20 March 2009, 14:09:53
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Edition 11 of 2009, Friday, 20 March 2009
Dear Reader
Can you still become a billionaire by investing in property? They do say that nothing is impossible. According to Forbes.com, the richest black African is 63 year old Mohammed Al Amoudi, net worth $9B who built his fortune in construction and real estate in Saudi Arabia before betting on energy. Patrice Motsepe, age 47, is a Johannesburg mining magnate, and South Africa's first black billionaire. Read more in Africa’s Self made Billionaires
All eyes are on the Reserve Bank;
- Reserve Bank to meet every month on interest rates
- Rates to freefall
- Drastic interest rate drops now essential, says CEO
On a regular basis we receive letter from subscribers complaining about how difficult it is to purchase property in the current market. According to one of the estate agency groups using our software, the Leapfrog Property Group, 60% of bonds are declined. “The sales are there but it’s the banks that are not granting the bonds” This according to Haydn James National Operational Manager of Leapfrog. Tony Clarke, MD of Rawson Properties agrees with him. "It looks," said Clarke, "as if the banks are now almost too aware of possible difficulties faced by bond applicants, are too stringent in applying the National Credit Act and far too concerned about shareholders’ reactions. "They have become so risk averse that even the best clients can only get a bond at 0.5 percent below prime and many are now paying 0.5 percent to three percent above prime."
Managing Director of Greeff Properties Graham Leslie have three answers for you if your grant have been rejected and would still like to pursue the possibilities of buying a home;
- Option one is to approach a friend or family member about getting a second bond or advancing a loan
- Option two is to find private equity, possible again from a family member, a friend or less restrictive private financer
- Option three is to form a syndicate of three or more buyers who become joint owners
“In all these options,” says Leslie, “you can benefit from the fact that interest rates will probably come down soon, adding an 8 to 10% capital gain to investors’ stake per annum for the next few years,” while paying off the bond month by month. If you cannot get the bond you want, investigate the other options
It’s that time of the year, Autumn. Autumn is one of the four seasons of the year. It’s also known as the transition season between summer and winter. We share 10 tips with you that you can take with you in your garden this autumn;
 Tidy up
- Dig out the debris
- Start composting
- Embrace the autumn colour
- Plant for the future
- Venture into the interior
- Love your lawn
- Cover up the garden furniture
- Give wildlife a hand
- Protect your pond
Enjoy!
The editor
CLICK HERE FOR MORE
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20 March 2009, 08:30:46
Rawson’s February Sales 11,8% Up On Those Of 2008
In the current residential housing market, there is, says Tony Clarke MD of Rawson Properties, always a danger that positive news will be seen as sales talk, an attempt to boost the market.
"It is, nevertheless, a fact that the Rawson Group's February sales were 11, 8% up on those of February 2008."
This, he said, is a truly remarkable achievement because whereas in early 2008 some 85% of all bond applications were being granted by the banks, right now the average success rate is only 50 to 55% (and even lower in the affordable housing sector).
“There has,” says Clarke, “been a marked reluctance by the banks to loan money.”
The upswing at Rawsons, he says, testifies to a huge increase in achievement.
"To increase sales by some 12% when half our bonds are being turned down indicates that our teams are working harder and are more competently than ever before."
Bill Rawson, Chairman of Rawson Properties agreed saying that this improvement, "which was not yet expected in today's market" is in large part due to the group’s ongoing mandatory training and a big improvement in agents’ commitment to client service.
It is also, he said, attributable to Rawson's strength at the lower end of the market where demand remains very strong and where the only hold-ups are due to the difficulties in getting mortgage bonds.
For further information contact Tony Clarke on 021 658 7100 or email tony@rawsonproperties.com.
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20 March 2009, 08:30:16
Rawson developers and homebuilders taking on work for other companies
Responding to the downturn in new developments, Rawson Developers and Homebuilders are now offering their services to other developers and landowners who may not have the same depth of experience in this field.
Rawson Developers and Homebuilders’ MD, Paul Henry, said that his company can be of assistance to developers and landowners who have access to funds and who understand full well that (a) building costs can only go up and (b) that difficulties in obtaining bond finance have created a very active letting market.
“Consider for a moment the challenges facing a couple intent on buying, say, in the middle range R1,5 million bracket. In today’s market they would require a R300 000 deposit plus R100 000 to cover costs. Their bond repayments would be in the region of R15 000 per month, which means that their joint income would have to be about R45 000 per month.
“If, on the other hand, they temporarily go the rental route, they could live in a house of the same standard for R7 000 per month – and possibly save a few thousand on the side each month. That is why the rental market currently offers opportunities.”
Rawsons, says Henry, can give the clients a straight construction service, i.e. build their developments for them for a fixed price and within a specified time – but they can also add considerable value by helping with feasibility studies (“something in which we have extensive experience”); appointing and liaising with professionals; gaining plan approvals and marketing and selling the end-product through their nationwide network.
"Many people who have inherited or bought land several years ago have very little idea of how to go about developing it," says Henry. "This applies particularly to land holdings in less affluent areas. Today there are good opportunities for developing units in R250,000 to R700,000 bracket and, as I have indicated, in the R800 000 to R1,5 million bracket. "
One southern suburb scheme on which Rawsons is now in full swing as contractors will this year deliver 58 apartments.
For further information contact Paul Henry on 021 658 7100 or email paul@rawson-developers.co.za.
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18 March 2009, 15:38:45
The major new city campus for the University of Zululand — with phase one ready for occupation from January 2010 — is set to provide a boost for the residential property market in Richards Bay, says Phil Hammill, area principal for Pam Golding Properties.
To be located in the Richards Bay CBD, the first phase catering for the faculties of business and management will enrol from 1000 to 1400 fulltime and part-time students — a large number of which will be adult learners currently employed across various sectors of the economy and who wish to further their education.
Demand for smaller residential units
"As a result we anticipate that the demand for smaller residential units will increase, providing the impetus for further investment by developers in such housing accommodation," says Hammill. "In addition, the long-term presence of the campus in the city should have positive spin-offs, including the fact that the university will be hosting many international conferences — thereby bringing delegates and visitors to Richards Bay. Phase two, planned for completion in 2013 and comprising computer and engineering technology, will enrol between 400 and 600 students."
In anticipation of the increased demand for smaller units a new 30-unit residential development is already under way, marketed by Pam Golding Properties and priced from R359 000 for one bedroom apartments. "This development comprises six apartment buildings each with five units and a few have already sold," says Hammill. "We anticipate that as the demand for such accommodation increases as the new city campus reaches completion, this will see council release the undeveloped, municipal-owned land in the CBD."
Activity below R1-million
Hammill says, while locals comprise the bulk of home buyers, Richards Bay has always seen a fair amount of new buyers moving in from other areas and this is an ongoing trend albeit at a slower pace given the current economic conditions. Activity in the residential property market tends to be mainly in the price range below R1-million with movement regarding properties priced above R2-million somewhat slower.
"There are also preferred areas which tend to attract slightly higher prices, those such as the well established Meerensee area and the newer suburb of Birdswood where prices average between R1-million and R1.3-million. In the CBD of Richards Bay sectional title units range in price up to R880 00 for a three bedroom unit, offering good value for money. At the Mzingazi golf estate, also in the Richards Bay area, a number of land purchasers have commenced building their homes and the future for this secure, new and uniquely positioned golf estate is very positive," adds Hammill.
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17 March 2009, 15:40:14
The turn in the interest rate cycle looks set to accelerate over the year ahead. Even our conservative Reserve Bank Governor Tito Mboweni is smiling…
Reserve Bank Governor Tito Mboweni’s comment that he wanted to cut the repo rate by 200 basis points but was restrained by his more conservative colleagues can be taken with a grain of salt, but it is a positive indicator that we can expect further interest rate cuts down the line, probably as soon as the next meeting of the Bank’s monetary policy committee (MPC) meeting in April.
The 100 points reduction, with effect from 6 February, is welcome — not just from the point of hard-pressed consumers, but as a prod to help kick-start the country’s flagging economy. Some analysts expect the prime lending rate to fall to 12 percent by June.
Better times are ahead
Apart from the direct relief these reductions afford indebted consumers — whether struggling to repay housing bonds, motor vehicle leases, bank overdrafts, credit card balances, or the new fridge — the forward scenario is one of hope. Hope that better times are ahead.
Public confidence has slid badly over the past two years and this pessimism has been exacerbated not simply by economic duress, but by political strife and uncertainty. Easier borrowing helps concentrate the mind on fundamentals.
Lower interest rates, however, do not herald a return to the glory days prior to the downward cycle which started in June 2006. Then money was freely available; financial institutions fought marketing duels to lure customers into their lending maw. Mortgage rates to 'preferred' borrowers were as low as two percent below prime, or more, and banks were offering 110 percent mortgages which covered legal and transfer costs.
That’s not going to happen now, nor in the foreseeable future. This is not simply the result of the tougher credit conditions imposed by the National Credit Act (NCA), but also because the banks currently do not have the same liquidity. As a result they are charging higher premiums, effectively increasing interest rates to most new customers, even the most creditworthy.
This could add one or two percent to borrowing rates and this should effectively put a damper on the appetite for new borrowings.
Basically this means that instead of getting a bond at a rate below prime, the borrower will probably pay 100 points or so above the prime rate. This will apply to other forms of credit, although one wonders whether the crisis-ridden motor industry will still be forced to subsidise credit facilities just to move metal.
Growth in credit to the private sector has fallen sharply
One of the major concerns of the Reserve Bank in its struggle to control inflation has been the degree of household indebtedness. Although its prime motivation in increasing interest rates was to counter growing inflation, it was also aimed at curtailing consumer borrowing and spending. This, coupled with the National Credit Act, has done the trick and growth in credit to the private sector has fallen sharply.
Unfortunately the boom in the middle 2000s was a consumer-led boom. South Africans tightened their purse-strings out of necessity and stopped buying. Thus producers slowed down production; all economic sectors suffered. The problem now is whether, faced with the worldwide slump, particularly in demand for commodities — a major export — commerce and industry can pick up again.
In hindsight, one has to wonder about the efficacy or even the necessity of the downward rate cycle. Was our household indebtedness to income ratio really so frightful? Household debt in SA in the third quarter of last year in the form of banks’ loans and advances was equivalent to 79 percent of one year’s nominal GDP. The comparative figure in the US, as it entered the meltdown of 2008, was 365 percent.
The local lending clampdown is illustrated demonstrably by the sharp downward trend in mortgage advances since the beginning of 2007. In December 2008 year-on-year growth in the value of mortgage advances (the total net outstanding balance on mortgage loans at financial institutions) slowed down to 13,2 percent from 14,9 percent in November, based on Reserve Bank data. This is quite a fall from the high of almost 31 percent y/y recorded in October 2006. Data available from Absa for new residential loans approved by banks up to the end of the third quarter of 2008 showed a fall of 30 percent on a y/y basis.
This is the accumulated result of a slower residential market, the National Credit Act and tighter credit criteria by the banks.
Residential mortgages are by far the largest mortgage category (about 78 percent of total banking sector mortgage advances).
The smaller commercial component holds up better, but new lending in the commercial mortgage market has nevertheless slowed significantly.
The decline in the household debt/service ratio, as mentioned earlier, is probably a good indicator of mortgage market credit quality and this, comments FNB property strategist John Loos, augers well for a turn for the better on residential default rates this year.
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13 March 2009, 14:23:11
JOHANNESBURG was aiming for a 9 percent economic growth rate by 2014, said the mayoral committee member for finance and economic development, Parks Tau.
"We believe that if we are to take Johannesburg to greater economic heights - which we define as a 9 percent economic growth rate by 2014 - we have to develop and evolve partnerships with all relevant economic stakeholders and role players in the city," Tau said at a business breakfast on Wednesday, 11 March in Sandton.
The breakfast was aimed at the international business community, represented by various embassy and consulate diplomats.
Tau said the City's long-term vision involved seeing Joburg as continuing to be South Africa's primary business city, a "dynamic centre of production, innovation, trade, finance and services".
"This will be a city of opportunity, where the benefits of balanced economic growth will be shared in a way that enables all residents to gain access to the ladder of prosperity, and where the poor, vulnerable and excluded will be supported out of poverty to realise upward social mobility."
In this city, everyone would be able to enjoy "decent accommodation, excellent services, the highest standards of health and safety, access to participatory governance, and quality community life".
Economist Mike Schussler, the director of economists.co.za, said Joburg's growth rate, at 5 percent, was higher than that of South Africa, at 3,6 percent.
"You could call Joburg the financial capital of Africa. It's also the communications capital of Africa, and the African shopping centre."
He stressed that although Joburg was founded on mining, it was no longer a mining city. In 2007, mining was estimated to contribute just 1 percent to the city's growth, while financial and business services contributed 36 percent, with trade at 18 percent, manufacturing at 14 percent, and construction at 4 percent.
Six core principles
Tau said that the City's vision was based on six core principles, taken from its Growth and Development Strategy: pro-active absorption of the poor; balanced and shared growth; social mobility and equality; settlement restructuring; sustainability and environmental justice; and innovative governance solutions.
He spoke of offering a market to investors which had Africa's best telecommunications, excellent road and transport infrastructure, world-class banking and financial services, and a country with a top rating in terms of ease of doing business.
Over 70 percent of South African companies have their headquarters in Joburg. The city's economic output was R203-billion in 2006, and R216-billion in 2007, with a current growth rate of 4,7 percent annually. With a population of 3,5 million, it has an annual per capita output of about $5 600 (about R56 600).
Clean audit
For the 2006-07 financial year, Joburg received its first clean audit. This was obtained by overhauling the City's financial management systems, in the process quadrupling its capital budget and boosting its credit rating. It now has an A+ rating, according to Fitch Ratings and CA Ratings.
This has been boosted by the five municipal bonds that have been successfully issued by the City since April 2004.
"This adds great credibility to any entity doing business in our city, especially those with international linkages," Tau said.
He referred to the recent electricity supply challenges, saying they were likely to remain until 2013, when new capacity became available. The City has, over the past four years, spent more than R1,65-billion in capital expenditure on the power grid. This means that it has about 120MW in standby capacity. And the electricity facility, City Power, recently issued a tender for 300 000 solar water heaters.
"This initiative by the City of Johannesburg is the latest attempt to create a sustainable and more environmentally friendly solution to our electricity challenges," he said. The City was also endeavouring to abide by the 10 percent cut in electricity consumption requested by the national government.
Safe and secure environment
Tau also talked about the need to provide a safe and secure business environment. A CCTV camera system has significantly reduced the crime rate in the inner city; by 2010 the metro police force will be increased to 4 000 officers, which will complement the expanding South Africa Police Service.
Joburg has also worked hard at regenerating the inner city through the Urban Development Zone Tax Incentive, which has attracted investments into the area of R4-billion. "We are reclaiming the inner city as a future residential, business and entertainment hub of Gauteng."
The Joburg economy is based on mining, trade, information and communication technology, and high value manufacturing, but efforts are being made to create more opportunities in business process outsourcing, tourism, the hospitality sector, financial services, property development, and the public transport infrastructure.
In this regard the City is constructing the Bus Rapid Transit system, the first stage of which will open in May. This will be supplemented by the Gautrain, a rapid train link connecting Joburg with Tshwane and OR Tambo International Airport. The major highways between the two cities are receiving a multi-billion rand makeover as well.
Positive long-term outlook
Schussler said the city's long-term outlook was positive, although poor in the short term, as a result of the world recession.
Communication between the City and the business community was ongoing, through the Johannesburg Business Forum. This helped both sectors to air issues, ask questions, and to fix things, as well as promoted the City, he said.
"I am very proud of the business forum. It is one of the strengths of the City. Some of the combined ideas make a lot of sense and help us to move forward."
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13 March 2009, 08:28:19
Cape property
Current prices offer fast-moving refurb investors great opportunities
Who, if anyone, is doing well in the current downturn in the real estate market?
Tony Clarke, MD of Rawson Properties, said that those equipped to undertake fast turnaround refurbishments are cashing in right now in a big way.
“What we are seeing now,” said Clarke, “is refurbishment investors moving in, buying homes at a very good price, doing them up and then reselling at 10 to 15% profit in a month or two. It is a great way to make money if you can do it.”
The secret, said Clarke, is to work fast and avoid overspending on the finishes and features.
“You have to look at what other similar homes in the area are selling f
or and make sure your price is lower or competitive. You have, too, to ensure that your price significantly beats the replacement cost.”
This, said Clarke, probably means that such features as travertine tiles, marble countertops, cherry wood cupboards and laminated flooring and the like will have to be cut out – “but you can still create an attractive house with less expensive materials”.
Refurb investors, said Clarke, often allow the previous hard-up owner to stay on in the home paying a market-related rent while the work goes ahead. This, he said, works to everyone’s advantage – it ensures that the house is protected, it allows the owner time to find alternative accommodation and it usually means the seller is able to get a better price than he could if the home was repossessed.
For further information contact Tony Clarke on 021 658 7100 or email tony@rawsonproperties.com.
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12 March 2009, 16:30:19
Until recently the Mauritian government limited foreigners to purchasing property in golf and beach developments, namely the Integrated Resort Scheme (IRS) of property development. The IRS was introduced five years ago by the Mauritian government, but recently this was further extended with the launch of the Real Estate Scheme (RES) which now brings ownership of real estate on this idyllic tropical island closer to many more South Africans.
An RES development is situated on a maximum of 10 hectares of land, there is no minimum price set for units and no tourism component is required, says Jonathan Tagg, MD of Pam Golding Properties (PGP) Mauritius. "Foreign buyers are a prime target market for this new type of development as now they can own their own exotic getaway on an island paradise for prices ranging from the equivalent of R3-million to R6-million (at current exchange rates)."
PGP is marketing a newly launched sectional title residential development on the island — Cape Bay Beach Resort Mauritius. Conveniently located on the north coast of the island just five minutes from Grand Baie, Cape Bay Beach Resort is situated in the peaceful beach environment of Bain Boeuf. This luxury development comprises just 48 high end, furnished apartments — most with sea views and ranging in size from 125m² to 153m². Rental returns are forecast at five percent but promise to exceed 10 percent with increased occupancy.
Extremely competitive pricing
"When you take into account the premium price paid around the world for high-end coastal property — even compared with luxury homes in prestigious areas on Cape Town's Atlantic Seaboard — these prices are extremely competitive particularly when you consider the spectacular island setting which makes Mauritius so sought after," says Tagg.
"Through our permanent offices situated in Mauritius PGP is ideally placed to hand pick the best development projects," comments Dr Andrew Golding, CE of the PGP group. "Having successfully marketed both locally and internationally a number of IRS projects on the island such as Tamarina Golf Estate & Beach Club, The River Club and Banyan Tree Corniche Bay we have seen generous capital appreciation achieved in prime real estate.
"The Mauritian government has adopted a responsible approach to residential development being acutely aware of the need to conserve their country's natural environment and retain its sought after, tranquil island appeal. As a result, development is limited with permits for development granted after careful consideration. Well respected internationally for its economic and political stability, Mauritius also enjoys a constantly rising GDP and increasing tourism that further enhances investor confidence," says Dr Golding.
South African developers
The co-developers of Cape Bay are South African property development company 2Tribes (which has launched successful projects in South Africa and abroad) and My Villas (which has an established track record in hospitality, selling tourism destinations worldwide and which will manage Cape Bay's rental pool).
Tagg says 20 units have already sold mainly to South Africans and French buyers with PGP about to commence marketing the project globally particularly to the France and the UK markets. "Finance is readily available to qualified buyers at rates of between 5.5 and 6.5 percent. A five percent deposit is required on reservation of an apartment with 25 percent payable on deed of sale and the balance during the construction process," he says.
Inspired by the traditional Mauritian vernacular while favouring a more contemporary and eco-sensitive design, Cape Bay will blend harmoniously with its scenic surrounds. Situated opposite the beach, the apartments will surround professionally landscaped gardens and a generously proportioned private swimming pool. The resort will be fully served and maintained by My Villas with a 24-hour concierge service available to residents and includes an espresso café and water sport club. Leisure facilities in Mauritius range from water sports, golfing and relaxing on the beach to spa treatments, shopping and fine dining.
Buyers can select from the following:
Fully furnished two bedroom en suite ground floor apartments with kitchen, living room, two deck areas and private plunge pool
Fully furnished two bedroom en suite first floor apartments with kitchen, living room and two private balcony deck areas
Fully furnished three bedrooms en suite, split level penthouse suites with kitchen, living room, two deck areas and private pool
Each apartment is fully furnished and equipped with top quality appliances and kitchenware and all rooms are air conditioned. Expansive glass windows and sliding doors provide spectacular views while the interiors are designed to cater for relaxed island living with the emphasis on entertainment and functionality. With options ranging from relaxed beach chic to a more edgy contemporary feel, owners can choose a style that suits their design and lifestyle needs.
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12 March 2009, 16:29:37
With interest rates falling and further cuts expected during the year ahead, property investors are again actively looking at an improving market. For many, caution is still the watchword; for others, now is the time to strike. As Andre Dippenaar, head of the development division of Pam Golding Properties in Gauteng, comments: "The best time to invest in residential property development is when conditions are cyclically at their worst."
Dippenaar adds that the most effective and rewarding way of doing this is to buy off plan.
"The returns are disproportionately large in relation to the initial outlay. The investor is risk-disposed only to the extent of a relatively small deposit and is not called upon to fork out any further capital until the project is registered — 18 to 24 months down the track." By then the market may well have risen considerably.
Ronald Ennik, managing director of PGP’s Gauteng division, concurs, but adds the caveat that investors need to do serious research.
An important, and often overlooked, aspect of investing in property is the reason or reasons for doing so. Sound trite? Not so, cautions IP’s taxation advisor Grant Bayne.
"Your intention may be to acquire a property to let it. From a tax perspective the purchase of a capital asset (the unit) to generate rental income is the most effective way of shielding capital growth. Rentals would be taxed as a revenue profit. This is effectively on a sliding scale between 18 and 40 percent depending on your annual taxable income. When the unit is sold any gain would be subject to capital gains tax at a maximum of 10 percent. This 10 percent is calculated as follows: 25 percent x 40 percent (max marginal tax rate) = 10 percent.
"Contrast this with a different intention. Say you bought the residential unit off-plan so that you can sell at a nice profit after the development has been completed. Now you have entered into a transaction which is deemed 'a scheme of profit making'. The courts have decreed that 'a scheme of profit making' points to a revenue motive and any gain on the sale is taxed at the individual’s tax rate (maximum 40%)."
So what happens if you buy a unit with the intention of making a profit, but while waiting for the right time to sell you let the unit out for a few months?
"The intention is still there," says Bayne. "The rentals would be taxed as a revenue profit (40 percent max) and so will the gain when the unit is sold.
You may well ask, so how does anyone know my intention? The answer, says Bayne, is that SARS will ask you. They will then look at supporting evidence to see if this upholds your story:
Did you actively market the letting of your unit?
Did you sign any lease agreements with tenants?
For what period did you lease your property before selling?
What correspondence did you have with the developer you bought from, or the agent who sold the unit?
The answers can support or destroy what you say your intention was.
Bayne warns: "Remember that the onus is on the taxpayer to prove what he or she says is true. It is a bit like being presumed guilty until you have proved your innocence. That leads me to the next point — keep a record of correspondence and other documents to show what your intention was at the time of buying the property. Make sure there is an audit trail and store it away. This evidence will save you money and heartache down the line."
Suppose you change your mind and therefore your intention? "You’ll need those supporting documents," says Bayne.
Are there any taxable benefits involved in owning the unit?
"Yes, there are deductions," says Bayne. "Any improvements will form part of the base cost but will not be deductible from income when calculating tax. Repairs are different and costs can be deducted from income."
So what’s the difference between an improvement and a repair?
"If, for example, you buy a unit which requires a new carpet and painting, these are improvements, as they're improving the state (value) of your investment. However, let’s say you do that, let the unit, and a year later the tenant moves out leaving the carpets in a shoddy state and the property needs repainting. By replacing the carpets and repainting the unit you are effectively returning the property to its original state. In other words, a repair; you would be allowed a deduction."
Interest costs?
"They can be deducted from income, but this excludes the capital portion."
Losses?
"Where deductions exceed income the taxpayer is in a loss position. But note, if the premises are let to a relative, losses will be ring-fenced and may not be set off against other income. Furthermore, if losses are incurred for three years out of a preceding five-year period, the losses will also be ring-fenced. These can be carried forward until the years when a profit is made."
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11 March 2009, 12:11:19
Figures recently released by FNB economist John Loos show that Cape Town’s long established 'traditional' residential property areas, particularly the Southern Suburbs and the Atlantic Seaboard, continue to outperform property in almost all other parts of South Africa, said Lanice Steward, MD of Anne Porter Knight Frank — and they also reveal an encouragingly strong demand for property at the lower end of the price range.
"The latest figures for the 'traditional suburbs' are, surprisingly, very good considering that that economy is still in a downturn from which most do not expect it to emerge before the year end," said Steward.
The FNB figures, she said, show that Cape Town property rose in value by 10.8 percent in 2007 and by 8.1 percent in 2008.
"It has to be accepted that the last quarter’s figures for 2008 were not as bullish as the year-on-year statistics, but they are still far better than those of other areas. Somerset West, for example, experienced a 4.8 percent drop in values in 2008 after its 14.1 percent rise in 2007."
The surprisingly good performance of the Cape Town residential sector, added Steward, is revealed in its average prices. In the City-Fish Hoek-Simons Town territory the average price was R1.144-million while the average for the Cape Metro was R890 287.
Khayelitsha and Gugulethu still booming
Perhaps the most encouraging aspect of the whole report, said Steward, is the figures for Khayelitsha and Gugulethu. These showed an amazing 29.6 percent increase in values in 2007 followed by a further 32.7 percent rise in 2008 (to achieve an average price of R185 545).
"All that we have read and heard about the growing economic strength of the emerging middle class is shown up in these prices," said Steward, "and demand here continues."
A similar, but not quite so spectacular rise was achieved in the Mitchell’s Plain-Ottery-Belhar areas where prices rose 7.4 percent in 2008 to give an average price of R290 806. (This came on top of a 29.5 percent rise the year before.) Asked what conclusions she draws from these figures Steward said, "The messages are clear: firstly, with interest rates about to drop, now is the time to buy. We are very definitely close to — or at the bottom of — the downturn. Buyers need to be aware now of what a further three percent drop in interest rates will do for them. For example, buyers on a R1-million bond will save approximately R700 per month. If these drops become a reality they will greatly improve people’s buying ability."
"Secondly, the main hold-up at present is not the interest rates but the banks’ reluctance to loosen their purse strings. Government, in my view, should now put pressure on the banks to do so, possibly providing some form of safety net or guarantee if the due processes have been carried out. Right now, far too many wholly valid bond applications are being turned down even though the originators, the buyers and the agents have worked hard to be NCA (National Credit Act) compliant."
More than 50 percent increase in turnover compared to February 2008
Rounding off her comments on a positive note Steward said that at APKF the sales team had an exceptionally good February with a more than 50 percent increase in turnover as compared to February 2008.
"While this was encouraging," said Steward, "we have to caution people about undue optimism and overpricing. Until we have at least four consecutive months of good sales there can be no justification for saying we are back into a bull market."
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10 March 2009, 12:13:34
Interest rates must be cut by two percent, Consumer Assist, South Africa's biggest umbrella organisation of debt counsellors, said on Tuesday.
Debt was growing rapidly and putting an increasing strain on consumers, banks, retailers and other financial institutions experiencing the highest levels of consumer debt ever, said Andre Snyman, CEO of Consumer Assist, in a statement.
Snyman joined economists and debt counsellors in calling for an urgent cut in interest rates of up to two percent – or 200 basis points.
Snyman said an interest rate cut would help those at risk of losing homes or cars to hold onto them.
"Many consumers need just a little leeway and they can manage... the economy can't afford the sort of terrible debt many consumers and companies now find themselves in," Snyman said.
Snyman said that debt counsellors were concerned by the increasing levels of very heavily indebted people of all income levels.
"We have people who used to be millionaires to those working as teachers, nurses and police officers who simply can't cope anymore.
"They're not paying school fees which is causing difficulties with the financing of schools," he said.
He added that severely indebted consumers suffered health problems.
"Those who are severely indebted are depressed, so their productivity is low and health problems high.
"Those people in sensitive jobs also become more prone to fraud or corruption...
"If interest rates are not cut soon, (there will be) the knock-on problems of seriously indebted people – namely fraud, corruption, low productivity, poor health, marital problems and general depressive conduct."
Snyman said it was interesting to note that alcohol and cigarette sales were high "and that is typical of bad economic times, people often become increasingly self destructive".
A rate cut would not lead to overspending, he added, "simply because prices are high at the moment, people are fearful of losing their jobs and are more likely to save if they have a little spare cash".
He said the National Credit Act had proved to be a blessing.
"Most of those experiencing financial stress now were overspending before the Act came into effect in June 2007."
According to Snyman, it took an indebted consumer three years to clear debt.
"The first consumers who applied for debt counselling in 2007 when the NCA came into effect, will only be clear of debt in June 2010 at the earliest. "
Snyman said economists had warned that the second and third quarters of 2009 were likely to be "tough".
"We are starting to develop a pressure-cooker economy with the rate of bad debt and the Reserve Bank needs to release some of the pressure by urgently cutting interest rates."
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10 March 2009, 08:25:00
Flax forges ahead with phoenix investment project
It is now official: Madison Property Fund Managers’ international investment company, the recently established Global Phoenix Property Investments Ltd, will list on the Bermuda stock exchange towards the end of May.
Phoenix’s declared aim is to buy strategic stakes in listed property funds in the UK, continental Europe and Australia while these are still valued at bargain-basement levels.
Discussing the new venture with prospective investors, Mike Flax, Executive Director of Madison, said that the timing of the launch is near-perfect.
“Listed real estate companies in the established western markets,” he said, “have across the board been dealt devastating blows by the global credit and economic crunch. As a result they are now trading on average at around 20% of the highs they reached in 2007 and early 2008 – but many of these companies, although heavily indebted, still have valuable portfolios and satisfactory occupancy levels and are continuing to give reasonable returns.”
International property cap rates, said Flax, are now moving well into double figures while ten year government bonds, which traditionally have always been closely tracked by listed property, are now trading at ± 4%.
“In the property sectors we have, therefore, a once-in-a-lifetime opportunity and we are determined not to miss it.”
Property, he added, had always “come back stronger” from its low points in the graph and he is confident that internationally it will do so again from late 2010/early 2011. Phoenix, he said, will probably stay in existence for ± five years after which it will be wound up, its capital and profits being paid back to investors to enable them to make the most of the next boom.
Flax revealed that originally he had planned simply to invest some of his own funds and that of associates in a portfolio of foreign property companies. Then, he said, it had become clear that small investments, minority shareholdings, could be at the mercy of the vulture buyers now hovering around and looking for companies to “steal” at low-low prices.
“We realised that the only sound plan would be to acquire larger strategic stakes in a smaller group of counters. The stake has to be big enough to allow us to play a white knight role and to be able to block moves with which we do not agree – something that Madison has many years of experience in. It was this realisation that led to the setting up of Phoenix.”
Madison management, said Flax, will personally be big investors in Phoenix and they have identified other cornerstone investors alive to the opportunity here. Phoenix, he said, has been established so as to allow South African investors to take part in the IPO by using their rands via an asset swap facility.
“Our goal is to invest anything from US $100 to US $200 million after identifying the companies we favour. We will help to recapitalise their balance sheets through rights issues or shares for cash deals.”
Flax said that the Phoenix opportunity resembles closely that of Spearhead Property Investments, which he listed on the JSE in 1999 – at the bottom of the SA economic cycle. Spearhead shares then touched R4,50 but by 2006, when they sold out to Redefine, had gone above R45, i.e. had grown ten-fold in six years.
“I think that a similar performance is more than possible at Phoenix,” said Flax.
Jim Shankland, a top UK property practitioner and former Chairman of the Royal Institute of Chartered Surveyors will be Chairman of Phoenix.
UK-based, he is, said Flax, “one of the foremost practitioners in European real estate and well networked in banking and REITS circles. Add Marc Wainer and Gerald Leissner to that management mix and Phoenix has a very strong team to take it forward.”
Phoenix, although listed in Bermuda , will be registered in Guernsey, to take advantage of its favourable tax regime.
For further information contact Mike Flax on 01 425 1000 or email mflax@madisonproperty.co.za.
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09 March 2009, 09:02:28
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Edition 9 of 2009, Friday, 06 March 2009
Dear Reader
But where you’re making your money is not as a property holder. You’re making your money as a debtor, having your debts wiped out. This according to an interview by Jason Hartman that I found on the Internet. Although this interview is based on the USA I found it applicable to real estate in general and not too be missed. The value of U.S. property is going to go down in real terms, so I certainly wouldn’t buy any property for cash right now Crash Proof - An Interview with Famous Doom-and-Gloomer Peter Schiff
So now we’re a few months into the “worldwide economic crisis”, and it seems as if we are settling down again. Isn’t it interesting how we as human beings adapt to changing situations so rapidly and easily? We even adapt to the fear of the situation getting worse! And we learn to live with fear as a daily part of life. The rules to the “new economy”? Add value! Has the Fat Lady Sung Yet?
Have you ever thought about what happens to the deposit you’ve paid to the transfer attorney when purchasing that new property? "Clients should remember that they have the option of requesting that the money be invested in an interest bearing account at a bank and may sign an investment instruction authorising the Attorney to do so. The interest accrued during this investment will then be paid back to the client once the investment account has been closed, or when it gets closed on transfer of the property." News from Rodney Hayter
The pressure is on the South African Reserve Bank to cut interest rates and it’s not going to ease as investors are not going to back off. Investors beg for rate cut
Win with Design> Magazine! Design>Magazine gave away R1000 to four lucky subscribers over the last four weeks. Congratulations to the winners of week 3 and 4.
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Winner - Week 3
Jennie Olls from Langebaan
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Winner - Week 4
Zingi Gcwabe
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Property buyers in South Africa are at the mercy of estate agents who are obliged to represent the seller’s best interests. But by appointing exclusive representation for the buyer, he or she can save money and time as well as ensure that his or her best interests have also been taken in account. I found two articles related to this statement;
- Distressed sales: Choose the right agent
- Agents for buyers only
Ficksburg is a small town situated at the foot of the Imperani Mountain. It is located in an important agricultural region of the Free State also known as the Cherry Town of South Africa, Focus on Ficksburg, Free State, South Africa
Enjoy!
The editor
CLICK HERE FOR MORE!
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06 March 2009, 09:03:15
The burgeoning new suburbs on Pretoria’s eastern flank have become a treasure trove for property bargain hunters, including investors, first-time buyers and homeowners looking to upgrade.
So says Irene Prinsloo, manager of leading city agency Homenet Pretor, who notes that many sellers in the area have reduced their asking prices by 20% and as much as 30% in some instances.
In addition, the “New East” has for the past few years been characterised by prolific sectional title development and there is now an oversupply of such units, Prinsloo says. “Buyers are aware of this and are taking advantage by opting to buy homes at recently-built developments that offer better packages at cheaper prices than their older sectional title counterparts.”
Sectional title homes in the area typically range in price from R550 000 to R850 000 now, while generously proportioned three-bedroom homes are selling for around R1,1m and attracting existing homeowners upgrading from townhouses or small homes.
Also on the move are the owners of large properties, who are selling at much-reduced values in order to downsize to smaller homes that are easier to maintain and secure.
From the point of view of investors, rentals are “ticking over nicely”, says Prinsloo, with realistically priced lets enjoying swift trade. “And landlords have realised that they can’t foist high rents on the public in an effort to cover their own bond costs, as overpriced properties simply remain unoccupied.” Rentals currently range from around R3800 to R4500pm.
Other current market characteristics in the area include a higher incidence of foreclosures and auctions as well as cash purchases. “Many families and friends are also pooling their resources in order to qualify for bonds and get a start in the market while prices are low.”
ISSUED BY HOMENET
FOR MORE INFORMATION CALL
IRENE PRINSLOO ON
012 346 8829 OR VISIT
www.homenet.co.za
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06 March 2009, 09:01:26
Advice on the transfer of deceased estate property and assets: Tony Clarke says that establishing a trust is still the best way to go
If you own property, particularly two or three different properties, what is the best way to minimise tax and avoid difficulties in passing these on to your heirs, along with other assets, after your death?
Discussing this question at a Rawson Properties training session recently, Tony Clarke, MD of the Rawson group, pointed out that the major hurdle facing the surviving spouse or other heirs to an estate is that, as soon as the person dies, his or her accounts are frozen.
“Access to money then becomes impossible. In our group we have seen many cases of real hardship which could only be solved by borrowing money to pay for such basics as funeral costs, food, rates, electricity, petrol and school fees,” said Clarke.
The problem, he said, is exacerbated by insurance policies being paid into the estate. This is usually the case when the beneficiary shares a bank account with the deceased.
When executors have finally been appointed, the law requires that all outstanding debts owed by the deceased have to be settled first - and this can lead to one or more of the properties having to be sold in a hurry. After these sales capital gains tax will then have to be paid on the profit.
“The cost of winding up an estate,” added Clarke, “can frequently amount to 30% of the total, excluding the debt repayments. Equally serious, it can take two or more years to reach full settlement and that is a long time to go without access to ready money.”
Clarke said that in his experience the best way to circumvent these difficulties is for the bequeather to establish a trust before his death and to transfer the majority of his assets into this trust.
“The big advantages of a trust,” said Clarke, “are that it is not frozen on the death of a spouse and, as it is entirely independent of the estate, is not subject to any estate duties. The surviving spouse, who is usually a trustee, can draw money as and when needed.
“Furthermore, insurance life policies paid into the trust can help to cover the trust’s costs and, as the trust is not responsible for the deceased debts, there will usually be no need to sell off property and to pay Capital Gains Taxes incurred this way.”
Are there, therefore, no disadvantages to the trust system?
Clarke said that by far the most common objections are that it will cost money, payable immediately, to establish a trust and the taxes incurred in transferring property into a trust are higher than those involved in passing it onto an individual.
“All my experience shows that establishing a trust is the best way to achieve a smooth handover of property and assets, especially if you expect some of them to be passed on to subsequent generations, e.g. children or grandchildren.”
Clarke had a word of warning for those who are approached by so-called expert estate planners. Often, he said, these people are not as knowledgeable about estate law as they should be and their main goal is to sell expensive insurance policies.
“It is in my view far better to deal with an accountant or a lawyer who has specialised in these matters and who has kept up-to-date with all the legislation.”
For further information contact Tony Clarke on 021 658 7100 or email tony@rawsonproperties.com.
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06 March 2009, 08:59:55
Latest Llandudno luxury home will have a low profile
The Atlantic Seaboard residential suburb of Llandudno, occupying a spectacular position overlooking its own small bay and beach has always attracted architects and homeowners with a yearning to create out-of-the-ordinary innovative and avant garde homes that make the most of the splendid views and the steep mountain backdrop.
Those residents who have lived there since the early days when it was at “the end of the line” and when most of the homes were bungalows or shacks, have often regretted the proliferation of large, over-scaled, mansions, some of which, they say, are inappropriate, too visible and blots on the landscape.
It is, however, likely that the latest three level 750m2 Llandudno home, due to be handed over in April this year, will be well received even by those purists who far preferred the old Llandudno to the new.
This double storey, contemporary villa was designed by Peerutin Architects for a British client. It is set high on the north-facing slopes of Leeukoppie and enjoys panoramic views of both the beach and the Grootkop/Twelve Apostles range.
As is the norm for such steeply sloping sites, the front boundary wall frames the entrances both to the house itself and the double garage. Although this wall is high, these entrances have been designed on a lower, more intimate and sensitive scale and incorporate landscaping, including some mature trees.
"In this way," says David Peerutin, "it gives something back to the street."
It also creates a large, flat platform on which to build the upper two levels of the house itself and enables them to be set back from the street boundary far enough to be hidden from the road. Llandudno residents will, it is hoped, find this low profile praiseworthy.
The Peerutin team, which included Associates Francois Hugo and Juli Grey, and which was run by Project Architect, David Snyders, was briefed to create a relaxed home that captures the feel of the beautiful setting and enables the owner and his guests to feel at one with the site whether they are indoors or outdoors.
“Coming from Britain, the owner really appreciates the site,” said David Peerutin. “From the outset, therefore, he stressed that he wanted the house to celebrate and be open to its setting. This led to the decision to place the main living areas at the very top level, termed the "Piano Nobile" by the client. The building here took the form of a glass box that spans the entire width of the property from setback line to setback line. The living, dining and family room areas open completely to both sides. To the north, a vast, full width terrace overlooks the magnificent beach and mountain. Adjacent this is a structured "Sunset Terrace" with built-in seating and open fireplace and to the south this level opens across its full length onto a private walled garden known as the "Sky Court", which has a buried fountain, trees and concealed lighting.
The level below houses four bedrooms, two bathrooms, a media room and two studies, one for each of the adults. All spaces open to the expansive grassed garden level with a 25m lap pool across the full width of the property. At either end of the garden there is a pavilion, one open outside the main bedroom and the other fully glazed under the fire pit above. The latter houses the pool room, an entertainment space with bar and lounge seating.
The massive boundary wall at the street level gives the house solidity and security but it achieves increasing lightness as it moves up the site and through the levels. The bedroom level is still of masonry construction but has large punctured openings whereas the uppermost level is a "floating”, wafer-thin concrete plane, lightly supported by elegant stainless steel cruciform shaped columns with the space simply and completely enclosed in glass, giving the impression that it is just a covered outdoor area.
The interiors, says David Peerutin, will be filled with light and for this reason the architects kept the materials to a muted, natural palette of vein-cut marble features and a pale oak floor boards and ash ceilings which are complemented by white walls, curtains and shelving.
Summing up the new home, David Snyders said that it is primarily a holiday getaway with ample room for entertaining but its design also recognises the need for private spaces. It will, therefore, he says, serve as a comfortable base for a large family, no matter how diverse their interests.
For further information contact David Peerutin on 021 464 4360 or email david@peerutin.co.za.
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06 March 2009, 08:58:28
Advice from Lanice steward on how to return to residential property investment
In December 2008, Lanice Steward, MD of Anne Porter Knight Frank, said that she was beginning to detect the first signs of a revival of confidence in the Cape residential property market.
This month, she said this week, the signs are now clearer and far more evident.
"February could be a record month for our group. We definitely are seeing an upswing. Whether it will last I cannot say – but right now all graphs are pointing upwards and with further interest rate drops, I can see no reason why this should not continue."
Some of the stimulus to the market, she said, has come from the return of investors who now want to get in before prices rise. This, in turn, has led to a number of enquiries about how and where to invest.
"There are," said Steward, "two golden rules: the first is to invest with your head and not your heart and the second is to visualise the type of tenant that the property will attract. You have to decide whether that is the sort of person you will able to rely on.
“The preparation of the home is, said Steward, all-important. Obviously if a house or an apartment or its grounds are run down they will not attract a quality tenant. Similarly, if the unit is in an area that has gone downhill, good tenants will avoid it."
Sectional title apartments in blocks which lack the funds for proper maintenance are a particularly bad risk, said Steward, and it is worrying how often people buy into these without checking the levy and accounts position.
This statement, said Steward, should not be taken to mean that less affluent areas are automatically a higher risk than the upper bracket areas – there are expensive, flashy homes in expensive suburbs which also attract "dicey" tenants.
Asked for tips on up-and-coming areas, Steward added that well maintained three and four bedroom homes can be bought in Bergvliet and Meadowridge for under R1,5 million – these represent a good appreciating investment.
"Bergvliet and Meadowridge will join Lower Constantia as areas offering excellent growth potential."
Similarly, Sybrand Park, where prices are now around R1,2 million, offers buyers an excellent opportunity with good prospects.
Those keen to invest in the established areas, said Steward, can do no better than to take another look at Kenilworth, Wynberg, Rondebosch and Claremont.
“People will always want houses here because they are well-placed for schools and shopping centres. The plain truth is that any Southern Suburbs home at current prices is a good buy.”
For further information contact Lanice Steward on 021 671 9120 or email lanice@anneporter.co.za.
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06 March 2009, 08:56:36
While most real estate companies are currently losing good talent, RealNet is not only retaining all employees, but also adding to its existing management team in order to prepare for the future upswing in the economy.
So says CEO Tjaart van der Walt, who announced this week that Jan Davel, a well-known and experienced specialist in the property, financial and legal industries had joined the group as director of business development.
The RealNet group, which has rapidly outgrown the “new kid on the block” tag to become one of the most respected real estate franchise businesses with offices in all major cities in SA, is setting itself up for healthy growth during the next five years, he says.
After starting up its franchise business in 2002 under the leadership of the energetic Rothea Olivier, the group boomed in the next five years and grew to more than 100 franchise territories and just over 80 offices countrywide. Then during the challenging economic conditions for residential real estate businesses during the latter part of 2007 and 2008, RealNet consolidated by terminating unproductive franchises and replacing them with experienced real estate professionals.
“We currently have a footprint of 84 franchises with 68 offices and are budgeting to cut back another 10 franchises and replace them with 25 productive ones during the 2009 / 10 financial year,” says Van der Walt.
“The launch of very exciting new electronic systems to dramatically increase buyer and seller leads; new income-generating business models for new franchises; processes and systems which will substantially reduce infrastructure and operational costs in our franchise offices together with the appointment of our very senior and experienced new business development director Jan Davel, will ensure that RealNet weathers the economic down cycle and is ready to reap all the benefits of a future up cycle with the very loyal franchise footprint.”
Having worked closely with RealNet over the past nine months as legal and business consultant, Davel has also purchased shares in RealNet Holdings, and together with Van van der Walt and the rest of the management team has made a long-term commitment to the growth of the group by signing a five-year employment contract.
“What makes the real estate profession and the residential property market so exciting is that it is a basic business industry which mankind will need for the next 1000 years, and the only important denominator in our business is to embrace change in transformation, technology, consumer behaviour and economic conditions,” says Davel.
Issued by RealNet
For further information call
Tjaart van der Walt on
012 4604605 or visit
www.realnet.co.za
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06 March 2009, 08:55:18
The ERA property group plans to increase its market presence as 2009 unfolds, positioning it strongly for the next property market upturn.
That’s the word from Gerhard Kotzé, CEO of the ERA South Africa property group, who announced this week that the group has acquired the long-standing Carit Estates group of agencies, which has a strong presence in the Western Cape rural and coastal markets.
Carit Estates was established 40 years ago. Today it addresses the needs of the complete spectrum of property clients including the sale, letting and auction of residential, retirement and agricultural properties.
“With 15 offices and an enviable track record, the Carit Estates group, which will be re-branded under the ERA banner, is a very important strategic acquisition that immediately strengthens our presence in the Western Cape,” says Kotzé.
Maria de Villiers, ERA’s Western Cape regional manager, adds that while the group already has several successful Western Cape offices, it has not been strong in the rural areas, which is why the Carit Estates group dovetails so well.
Kotzé says the group has not escaped unscathed from the property slowdown but that the tide will inevitably turn and that the months ahead will see the group selectively seeking out strong franchisees.
“The idea is to establish a bigger, better footprint countrywide, reinforcing our presence in markets where we already participate and entering new markets where we believe there is potential.
“It’s not so much a question of growth for the sake of growth, but rather one of improved strategic presence which will ensure we are able to maximise economies of scale and offer improved national coverage for consumers in all nine provinces.”
He says the basic ERA formula will not change. The group will continue to service the needs of the market from entry level to top-end luxury homes, as well as property rentals, holiday rentals, commercial and industrial properties, agricultural and game farms and new property developments.
Kotzé’s comments come in the wake of news that ERA Real Estate as an international brand continued to show strong growth last year and notwithstanding global problems, added many new offices to the group and expanded others.
Brenda Casserly, US-based president and CEO of the company, says confidence and growth in the ERA franchise systems continued at a consistent rate and that the new additions are taking advantage of “timely marketing tools that are designed to succeed in any market”.
Issued by ERA South Africa
For further comment call
Gerhard Kotzé ON
012 682 9610 or visit
www.era.co.za
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06 March 2009, 08:44:20
CENTURY 21 South Africa, the local arm of the world’s largest real estate group, has announced the appointment of Colleen Gray and Leonard Dann as the new directors of the company.
This follows the untimely death last year of the company’s founder and CEO, Dr Duncan Gray.
Continuity of management was crucial in deciding on the new appointments, says Dann, who brings to the table an impressive background in banking and IT, including senior positions with illustrious international names such as the UBS group and BBC Television and pre-eminent local groups such as ABSA and Barnard Jacobs Mellett.
Property remains an abiding fascination for Dann, however, and he is to remain as broker/ owner of the successful CENTURY 21 ModHomes outlet in Fourways.
Ideally complementing his technical and managerial skills is Colleen Gray’s background in franchise industry HR, labour strategy and business consulting, and she says the whole management team is committed to the original vision of making CENTURY 21 the leading real estate brand in South Africa.
Dann believes the group is well positioned to achieve that goal, notwithstanding current extremely demanding economic conditions.
“Realistically 2009 will be exceptionally difficult for the property market with tight credit restrictions and the slowdown in economic growth impacting on consumers’ ability to acquire property,” he says. “However, we believe we have the brand, the people and the proven referral, management, training and marketing systems to remain firmly in business - and in a position to capitalise on the market upturn which will inevitably occur.
“We currently have 30 franchises, with 21 offices open and another two opening shortly. Our aim is to double the number of CENTURY 21 franchises by year-end and add a further 20 next year. And recognising that the market is not ideal for ‘start-ups’ we are focusing on existing independents and conversions.
“On that basis our new, more affordable franchise offering is totally relevant and we remain optimistic about a market where aspirations towards home ownership are as powerful as ever.”
ISSUED BY
CENTURY 21 SOUTH AFRICA
FOR MORE INFORMATION
CONTACT LINDIE BOW ON
011-884-2202 OR VISIT
www.century21.co.za
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06 March 2009, 08:22:39
Harcourts International, which recently bought a major stake in SA’s Homenet estate agency group, has been identified by a leading world authority on real estate, Stefan Swanepoel, as one of the top five international real estate brands.
According to Mike Green, MD of Harcourts International, the 2009 Swanepoel Trends Report showcases Harcourts International as an organisation that is leading the change in expanding successfully into other countries and continents. These include South Africa, where Homenet is in the process of being rebranded as Harcourts Africa.
The report describes Harcourts’ success as, among other things, being based on a “people orientated culture” that has resulted in a staff turnover rate that is significantly lower than the industry average.
“A youthful Gen X culture has energized the company’s drive, creativity and passion. That cultural mindset is further defined by a clear purpose and a business philosophy that flows down through the organization in the form of four very simple but specific values that are constantly communicated: People first; Doing the right thing; Being courageous; and Fun and laughter,” it says.
Green says that to be recognised in the 2009 Swanepoel Trends Report as an organisation that is influential on a global scale speaks enormously of how far the group has come since he took Harcourts to Australia in 1997.
“This is truly exciting for the Harcourts team and demonstrates that we are now becoming recognised internationally for the quality of our organisation in all aspects. Continuing our strong international growth and constantly striving for our goal of being one of the world’s leading real estate franchise groups will provide even greater marketing opportunities for our clients and our people through greater brand awareness and profile on a global stage.”
Martin Schultheiss, CEO of Harcourts Africa, says: “The report reflects the fact that there is a new DNA in real estate that is so much more than just brand. While most real estate companies are recording their worst results in history, Harcourts International is breaking new ground and gaining bigger market share.
“And it is doing that by putting its people in front of the brand and equipping them with the best training, systems and technology to thrive in a tough market. In the past couple of months, we have also gone about securing some top talent in Harcourts Africa, which is a real testament to the company and its understanding about the importance of people and equipping them for success.”
Currently the Harcourts group has more than 600 offices, 4000 full-time sales consultants, 1500 support staff and a sales volume in excess of $19,5bn a year (fiscal 2008). Already the fastest growing real estate group in Australia and the largest in New Zealand, Harcourts is now also operating in seven other countries: China, Fiji, Indonesia, Singapore, South Africa, Zambia and Botswana.
ISSUED BY HOMENET
FOR MORE INFORMATION
CONTACT MARTIN SCHULTHEISS
ON 031-201-1060
www.homenet.co.za
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06 March 2009, 08:19:46
The ERA property group plans to increase its market presence as 2009 unfolds, positioning it strongly for the next property market upturn.
That’s the word from Gerhard Kotzé, CEO of the ERA South Africa property group, who announced this week that the group has acquired the long-standing Carit Estates group of agencies, which has a strong presence in the Western Cape rural and coastal markets.
Carit Estates was established 40 years ago. Today it addresses the needs of the complete spectrum of property clients including the sale, letting and auction of residential, retirement and agricultural properties.
“With 15 offices and an enviable track record, the Carit Estates group, which will be re-branded under the ERA banner, is a very important strategic acquisition that immediately strengthens our presence in the Western Cape,” says Kotzé.
Maria de Villiers, ERA’s Western Cape regional manager, adds that while the group already has several successful Western Cape offices, it has not been strong in the rural areas, which is why the Carit Estates group dovetails so well.
Kotzé says the group has not escaped unscathed from the property slowdown but that the tide will inevitably turn and that the months ahead will see the group selectively seeking out strong franchisees.
“The idea is to establish a bigger, better footprint countrywide, reinforcing our presence in markets where we already participate and entering new markets where we believe there is potential.
“It’s not so much a question of growth for the sake of growth, but rather one of improved strategic presence which will ensure we are able to maximise economies of scale and offer improved national coverage for consumers in all nine provinces.”
He says the basic ERA formula will not change. The group will continue to service the needs of the market from entry level to top-end luxury homes, as well as property rentals, holiday rentals, commercial and industrial properties, agricultural and game farms and new property developments.
Kotzé’s comments come in the wake of news that ERA Real Estate as an international brand continued to show strong growth last year and notwithstanding global problems, added many new offices to the group and expanded others.
Brenda Casserly, US-based president and CEO of the company, says confidence and growth in the ERA franchise systems continued at a consistent rate and that the new additions are taking advantage of “timely marketing tools that are designed to succeed in any market”.
Issued by ERA South Africa
For further comment call
Gerhard Kotzé ON
012 682 9610 or visit
www.era.co.za
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05 March 2009, 16:44:44
An online survey by ooba to assess South African property owners’ attitude towards the property market reveals that 50% feel that the property market will continue its downward trend until the end of this year.
“The survey reveals that South Africans are divided about the timing of the property market recovery, but they generally agree that recovery will be sometime this year,” says Saul Geffen, chief executive of ooba.
ooba forecasts that the current low level of activity in the property market and negative property price growth with continue until mid 2009.
“Thereafter we expect that the improvement in affordability and sentiment will have a positive impact on house price growth and that activity in the property market will significantly pick up going into 2010,” states Geffen.
Twenty-nine percent believe that the market will begin to stabilise by the end of this year and 19% think it will begin to improve.
The survey also revealed that people still believe that there is value in property.
Thirty-nine percent said that they were hanging onto their properties, 31% said that they were making the most of the buyer’s market and buying a bigger property and 20% revealed that they were buying additional investment properties. Only 6% said that they were getting out of property altogether and 5% said that they were downgrading their home because bond payments were too much.
However, people have been hit by slow-down in the economy with 43% cutting back on luxuries and dinners to keep up with bond payments.
“The property market has been hit hard by the high interest rates and tightening of lending criteria,” says Geffen. “South Africans have had to make changes to their lifestyles in order to keep up with bond payments.”
But, there is hope on the horizon.
“The 1.5% cut in interest rates has already provided relief to consumers and we expect further cuts which will improve affordability for prospective home-buyers,” notes Geffen.
The inflation rate is also expected to show a meaningful decline in the early part of 2009 which will help the South African economy.
“However, bank lending policies are set to continue to be stringent during the course of 2009,” warns Geffen. “We advise that anyone looking to buy property apply for an ooba home loan prequalification certificate to determine their ability to qualify and for how much.”
Banks’ are currently requiring deposits of between 10% and 30% which in not expected to be relaxed for most of 2009.
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04 March 2009, 08:35:37
One of the most pertinent reasons for buying into the housing market right now, says Mike Greeff, CEO of Greeff properties, is that 'second-hand' homes (i.e. those that have already been occupied for a few years) are still some 25 percent less expensive than recently built homes of roughly the same proportions.
"Figures relating to house price increases,” said Greeff, "vary depending on which authority you consult but most would agree that the price rises were in the order of 25 percent in 2006 and 20 percent in 2007 with a levelling off taking place from the second-quarter of 2008."
By contrast, the FNB figures for newly completed homes show that building costs rose just under 40 percent in 2006, 24 percent in 2007 and by 14 percent in 2008.
Much cheaper to buy 'second-hand '
"The nett result is that right now it is almost always considerably less expensive to buy a second-hand home than a new one."
Asked to explain the spectacular rise in building costs, Greeff said that the surveys show clearly that it was materials — steel, cement, bricks, timber, tiles, paint, hardware and the like that caused the exponential increase. By comparison, he said, labour costs, which rose 12 percent per annum in 2006 and 2007, were quite moderate.
It's unlikely that building costs will come down this year as mega structures such as the football stadia and the Gautrain are still supporting high building prices of major companies.
However, Greeff said, among the smaller builders (including many in residential work) prices are now declining — and for first time in five years some new development entrepreneurs are now ready to offer deferred payments, discounts, initial subsidies and equipment installation allowances.
"By early 2010 it seems possible that the new building price increases will once again be on a par with those of second-hand homes.
How much cheaper?
"Right now, however, buyers are able to get an Upper Constantia home in the R6-million to R15-million bracket at R10 000 to R12 000 per m². These same homes built under current conditions could not be built at less than R16 000 to R18 000 per m².
"The message is, therefore, clear: if you can get a bond or have resources, now is the time to get in."
Greeff has already said that, although the Cape housing market could see a few further minor price declines, a bottoming out of the price graph is now becoming evident.
"The market," he said, "is already responding to the anticipated interest rate drops. Those who doubt this just do not understand how strong the desire for home ownership is among the newly empowered lower middle class and how this has a push-up effect across the board."
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04 March 2009, 08:08:31
Property buyers in South Africa are at the mercy of estate agents who are obliged to represent the seller’s best interests. But by appointing exclusive representation for the buyer, he or she can save money and time as well as ensure that his or her best interests have also been taken in account.
Even the most learned buyers enter into sale agreements without reading or fully understanding the contents of their contracts. Some buyers believe they are signing a 'standard' offer to purchase and simply fail to amend the contract to protect their interests. Others are unaware of their rights as a pertinent party to the transaction or simply neglect to exercise their freedom of choice and right to representation.
The seller is the agent’s client
In South Africa sellers mandate an estate agent to market their property. As per the estate agents' code of conduct, the seller is the agent’s client and therefore the agent is obliged to:
act in utmost good faith towards the seller
act in the best interests of the seller
sell the property at the highest possible price
avoid situations where a conflict of interest may arise
not retain any money or obtain a benefit as a result of the transaction, unless agreed to by the seller
avoid disclosing any confidential information divulged by the mandated client (the seller)
Provision for the buyer is also made in the code of conduct by stating that an estate agent must act professionally, legally and ethically towards the buyer or possibly face disciplinary action. To what extend are agents expected to play this dual role without compromising their integrity to the seller?
In countries such as Australia and the USA, a transaction seldom occurs without both parties having their respective representatives. Bill Carey, a former director of the California Association of Realtors and the author of various books on the industry, estimates that in approximately five years it will be illegal in the USA, due to a clear conflict of interest, for an estate agent to represent both the buyer and the seller.
If this is such a sensible approach and an accepted way of doing business in other parts of the world, why is it not widely advocated in South Africa?
The average estate agent will often, without a mandate, offer to find a property for a buyer. In order to minimise a commission split they will first try to sell their own listed stock. If they belong to a multi-listing service they will consider other associated agents' stock. Very seldom will they source unlisted properties or other agents' stock for the prospective buyer.
The perception in the South African property market is that if you hold the stock you control the market. Hence, estate agents work diligently in canvassing stock rather than buyers and are often reluctant to share their stock. Exclusive buyers' agents have a tough time gaining access to mandated properties.
Know that, as a buyer, you're worth your weight in gold
This is shortsighted, especially under the current economic climate where pre-qualified buyers are worth their weight in gold. Before spending time and effort sourcing a property, an effective buyers' agent will ensure that a client can indeed afford the property and has the necessary funds for a deposit and to cover costs. Consumers are also responsible for the status quo, hesitating to pay professional fees for services they believe they can handle effectively on their own. Yet we have seen numerous transactions where the buyer signed a sale agreement or offer to purchase in good faith believing that it was a 'standard contract', but then it resulted in huge financial losses for them.
Most recently Property Factor, a company offering an exclusive buyers' agent service, had an overseas investor seeking advice because she purchased a property while temporarily residing in South Africa and obtained a 100 percent bond through the developer’s bond originator. They failed to inform her that should she leave the country during the term of her loan she would be required to pay the bank 50 percent of the outstanding loan. The buyer would not knowingly have entered into the transaction if this was previously highlighted to her. The end result was that the client had to find R300 000 to meet with the Reserve Bank’s foreign exchange requirements or face legal action by the bank.
In every sphere of life consumers are exercising their right to transparency, freedom of choice and representation. They are making their money work for them, rightfully demanding service and alternative options. There is no better time than right now for you to demand exclusive representation and not settle for an agent who is trying to obtain the highest price for the seller while negotiating the lowest price for you.
For more information contact Tess Rodrigues, managing director of Property Factor, at tess@propertyfactor.co.za or 0861 106 306.
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03 March 2009, 16:43:41
Investors are keeping up the pressure on the SA Reserve Bank to cut interest rates fast after the week ended without any announcement that Governor Tito Mboweni's rate-setting Monetary Policy Committee will meet soon.
Mboweni said after the MPC cut the benchmark repo rate 100 basis points to 10.5 percent three weeks ago that he would consider a special meeting if the GDP data signalled a need to act before the next scheduled meeting in April.
This week's data showed the economy slowing by 1.8 percent in the last three months of 2008.
The newly rebased consumer price index of 8.1 percent in January was higher than most had expected, but still confirmed a steady downward trend – if not the "waterfall" that Mboweni had said he hoped for.
Factory gate inflation reinforced the trend on Thursday, coming in below market forecasts at 9.2 percent for January, and the conditions appeared set for the rest of the 200 basis point cut that Mboweni said he had proposed on 5 February.
"There is definitely room to cut by 200 basis points in a six- to eight-week period – now and in April. Nobody is going to whinge about that or say it's politics," said Andrew Canter of Futuregrowth.
Stanlib research chief Kevin Lings said: "There has been a significant expectation built up around the idea of an interim meeting and if you don't get a 100 basis point cut, people will be disappointed."
But on Thursday, Mboweni sought to cool expectations, saying an interim decision was only a possibility and the markets cheered his measured response.
"One needs to be sensitive about calling an interim meeting – have it, announce it and make sure that the communication around it doesn't spell panic. It seems the Reserve Bank is trying to calm things down a bit," said Lings.
Adenaan Hardien of Cadiz African Harvest said it was important to temper escalating negativity and signal the future interest rate course to potential investors.
"As to whether an interim meeting would be sending the wrong signal – well, one could argue that there is more than enough reason for one to panic," he said.
Canter said Mboweni's focus should be on consumers. "He's trying to head off what has happened internationally. He is trying to head off a collapse in demand."
Though the minister of finance, Trevor Manuel, has insisted that South Africa is not in a recession, most analysts believe they are just waiting for the figures that prove what they already know.
Third-quarter growth of 0.2 percent could be revised into the red when the next data set is released and the trends shown in the fourth-quarter figures – mainly the 22 percent shrinkage in the export-led manufacturing sector – leave little doubt that the country has entered a recession as measured by the technical definition of two consecutive three-month periods of contraction.
"Whether the recession started in the third quarter or in the fourth quarter will be academic. We are in a recession and the risk is that it will go on longer than we anticipate now," said Hardien. Cutting interest rates tops most agendas for action to halt the slide into economic contraction.
"The easing PPI should translate into a lower CPI rate in the coming months, thus leaving the gates open for the SARB to cut interest rates aggressively," said Moody's Economy.com.
Lings said damage control was the first priority. "If you cut the interest rate now, you create the expectation that in 12 to 18 months things will be better, which shapes decisions now. If you do it sooner rather than later, then more people should be able to hang onto their houses and their cars," he said.
And if the central bank and the treasury can convince employers that better times are not too far away, some might find ways to survive the trough without cutting jobs and losing skills they have battled to build.
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03 March 2009, 14:58:15
Over the last few years, higher interest rates and inflated property prices combined with stagnant rental returns have reduced the value proposition of property as an investment opportunity.
For many residential property owners rental returns are often as little as three to five percent of the value of the property per annum, falling far short of the current prime mortgage rate of 14 percent. Add management fees, levies, rates and taxes to the equation and it soon becomes apparent that many 'buy-to-let' properties no longer offer the best value around.
In response, a few property developers are coming up with innovative ways to improve the value proposition for property investors.
Long Street, Cape Town!
"One such solution is the guaranteed mortgage rate of prime minus five percent (to a minimum of 10.5 percent) as well as a guaranteed return of eight percent per annum for the first two years of ownership offered to buyers of apartments in Pepper Club, a new residential development situated along Long Street in Cape Town," says Louise Maranz, Principle of Vered Estates in Cape Town.
With the prime rate currently at 14 percent, Pepper Club offers an interest rate of only 10.5 percent per annum, which is vastly superior to what the majority of lending institutions are currently offering potential property buyers. At present, the best interest rate that potential buyers are likely to secure from most major financial institutions is around prime minus 1.5 percent, equating to 12.5 percent.
A short drive from everything
The Pepper Club also offers the opportunity for significant capital appreciation. This sophisticated Long Street development boasts panoramic views of the best that Cape Town has to offer. It's part of the vibrant Long Street life and a short drive away from the V&A Waterfront, cable car, world famous beaches and with easy access to transport routes to the Winelands. This development not only offers an affordable yet sophisticated physical asset for first-time investors, but also allows tenants to experience first-world exclusivity in an exciting, cosmopolitan environment.
The development, a 20-storey tower with 250 apartments, boasts all the important luxury amenities of a top hotel including a state of the art fitness centre, laundry and cleaning services, swimming pool and sun-deck, private movie theatre, 24-hour security, undercover parking and a concierge to attend to your every indulgent need. "Recent development trends have seen the conversion of old office blocks into apartment complexes. The Pepper Club is unique in that it moves away from this trend to redefine the notion of elite apartment living with the construction of a brand new high-rise with state of the art amenities and finishes to lift the standard to a level not previously seen," says Maranz.
Apartments range from studios of 34m² to luxurious penthouse suite duplexes of 400m². Prices range from R799 000 to R16.5-million with most of the more exclusive options already sold out.
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03 March 2009, 14:56:32
House prices are still falling, according to Standard Bank's most recent residential property gauge released on Monday.
The bank's median house price index decreased by two percent year-on-year in February, following a decline of 3.6 percent in January.
"Evidently, households find economic and financial conditions extremely challenging, while the tightening of lending criteria by financial institutions makes it more difficult to access finance," said Standard Bank's Johan Botha in a statement.
"In real terms, using our estimate of the CPI in February to deflate the nominal data, the decline comes to approximately 10 percent," Botha said.
The residential property book for February 2009 showed the value of the median residential properties financed by Standard Bank was R558 000.
"Furthermore, prospects for the housing environment in 2009 are likely to remain poor," Botha said.
An immediate, meaningful improvement in the housing market was highly improbable.
The bank's residential property book "unambiguously" reflected property market under "tremendous strain".
Growth in Standard Bank's residential median property price peaked in October 2004. An important trigger point in the house price cycle occurred in mid 2006 when the upward phase of the interest rate cycle commenced, Botha said.
The 500 basis points increase in the repo rate between mid 2006 and mid 2008 placed huge strain on the economy in general and mortgage holders in particular.
The number of mortgage loan applications declined significantly from November 2008 onwards as households were unable to access finance due to new lending criteria, he said.
Botha said the macroeconomic backdrop remained bleak.
"The global financial crisis gathered momentum in the latter part of 2008, impacting not only on credit and financial markets, but also on the real economy.
"The current weakness of the economy should not be underestimated," Botha added.
The last half of 2008 showed large swathes of the economy under huge pressure: economic growth virtually came to a standstill in the third quarter of the year and was in fact negative in the final quarter of the year.
Consumers who had overextended themselves during the low interest rate environment now found themselves under severe financial stress.
The outlook for the first half of 2009 remained worrisome, notwithstanding interest rate cuts in December and February, he said.
The international economic environment remained exceedingly frail while locally, consumer confidence was at an extremely low level.
Other indicators of the financial stress of households were the deterioration in the performances of the retail and vehicle markets.
"Some let off, however, is provided by lower inflation and a declining interest rate cycle. Consumer inflation is expected to ease to the upper limit of the inflation target by midyear and end the year at around 5.4 percent.
"Falling inflation and a frail economy will allow the Reserve Bank scope to cut the repo rate further – another 250 basis points cut is foreseen for the rest of the year."
The full impact of interest rate cuts on economic growth could take as long as 18 months.
"An immediate, significant turnaround in household sentiment, which is vital for sustained growth, is unlikely at this stage," he said.
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27 February 2009, 12:50:32
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Weekly Newsletter
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Friday, 27 February, 2009
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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
CLICK HERE FOR MORE!
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27 February 2009, 08:30:48
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.”
BEFORE
AFTER
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27 February 2009, 08:29:26
Leading property services company JHI, has bolstered its valuations consulting services to provide valuation services on a national and regional level for the property assets of both listed property funds and private property investors.
“Valuations and its related consultancy services have become essential to those involved in the increasing complexity and sophistication of accounting, tax, insurance and especially asset management.” Says Marna van der Walt, CEO of JHI Property Services. “And given the fluctuating markets of today, we see an increasing need from our clients and property owners in general for more frequent valuations of their property assets in an effort to attain true value, and to keep their properties adequately insured in these tough economic times." she said.
The company has not only geared up to handle direct valuation consulting on a national basis within our offices set up in both Johannesburg, Durban and Cape Town, but the JHI Valuation services now also extend beyond the borders of South Africa into Africa. Recently the JHI valuations team has undertaken assignments in Mozambique, Kenya, Botswana and Zambia.
”JHI has strategically positioned itself to provide this independent but interlinked service to property owners and developers in the seven African countries we are actively involved in via subsidiary joint ventures .” says Van der Walt.
“In today’s economic climate, our valuation service is no longer about a “number crunching” process but rather a highly specialised consulting service requiring in-depth market knowledge supported by an extensive research capability. This is what enables us to actively assist decision makers with the strategic management of their property assets and investments as well as related development and business strategies.” says Brian van Vuuren, The Divisions Head.
“JHI’s valuation consultancy includes a diverse service offering covering the: Commercial, Retail, Hotel and Industrial sectors, vacant land and building valuations for Corporates in the listed and private sectors.
The division is able to offer valuations services to its client base into global markets via its association with its International partnerships operating in over 40 countries, worldwide.
“The service requirement from clients range from rent reviews, insurance valuations, merger and acquisitions and market related asset tracking, he adds.“ “Over the past few months, we have had an increase in enquiries from the legal sector in relation to properties under insolvent estates, liquidations and judicial management,” says Van Vuuren.
The valuation service is underpinned by the divisions’ adherence to international standards aligned to best business practices, globally. JHI is both a member of the South African Institute of Valuers and each senior member of the team is a Chartered Surveyor, accredited by The Royal Institute of Chartered Surveyors (RICS). This organization is the most respected, high profiled and ethical institution, adhering to global standards and practices and membership to the organization is via a stringent and discerning selection process.
The Chairman, Les Weil and Wayne Wright, the Business Development Director, have recently been appointed as FRICS and MRICS, respectively, to the Institute providing support to the valuation division as and when required.
Brian van Vuuren can be contacted at JHI on (011) 911 8139 or 082 570 0592.
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27 February 2009, 08:27:23
Goede hoop homestead and estate the best buy in the Boland, says Boscendal ceo
Clive Venning, Chief Executive of the new owners’ consortium at Boschendal, went on record recently as saying that right now a handful of the world’s affluent property buyers who want to live in the Cape Winelands and would prefer to do so in a traditional historic home will never find a better buy than Goede Hoop, the largest, most expensive and, some would say, best sited of the Founders’ Estates at Boschendal.
After five years in negotiation, re-negotiation and planning revisions all 18 Founders’ Estates are now available for sale at prices of R16 million to R37 million.
Goede Hoop was built by Peter Hendrick de Villiers in1821, but the original farm grant dates back to 1688 and the title deeds from 1708, making this one of the first successful Huguenot settlements in the Franschheok/Dwars River Valley.
Boschendal’s recently publicised coffee table book covering the entire history of the estate and the Franschhoek Valley reveals that the de Villiers clan were by 1821 the pre-eminent landowners in the valley, with Paul and Anna de Villiers consolidating the family’s position by building the third manor on the Boschendal site. On this a gable reminds us that this was successfully completed in 1812.
In 1897 all the historic homesteads, including Groete Hoop, and their related estates were bought by Cecil John Rhodes as part of his initiative to introduce large-scale fruit farming to the Cape.
Goede Hoop has the conventional H-shape (but with one leg of the H missing), a r
“half-moon” gable and half-hipped ends.
The nearby T-shaped thatched roof cellar which occupies a dominant position on the site has a gable dated 1837 - and there are several other buildings on the site including a manager’s house and stables. The werf is ringed by the traditional white plastered wall and has a bell tower built in 1934 to commemorate the freeing of the slaves 100 years earlier. All this area has mature oaks and cultivated gardens that give year-round shade and a soft look to the home.
The homestead itself has three bedrooms with two further in the annex and large spacious living areas, the flooring throughout being in terracotta tile and wood. The ceilings are yellowwood and the entire floor area of the home and annex is in excess of 600m2.
Venning pointed out recently to possible buyers from the UK that prices have remained roughly the same as they were at the time that the scheme was conceived four to five years ago despite land prices having escalated by over 50% during that period. This, he said, is in recognition of the fact that the global economy is now in a poor state. This means that the Founders’ Estates, for which the necessary infrastructure alone will cost R70 million, are in fact being sold virtually at cost.
Goede Hoop, like other Founders’ Estates, is situated in 320 ha of vineyards and fruit orchards and is linked to 200 ha of mountainside nature reserve reaching up the slopes of the Simonsberg. This will be preserved in perpetuity.
Buyers of the Founders’ Estates will have all the pleasures and privileges of owning a wine estate or fruit farm but without the hassles of farming, harvesting or wine production, which will continue to be under the control of the Boschendal. Buyers will, however, have the right to certain wines and will be able to label these as their own. They will also have the right to use the Herbert Baker designed Rhodes Cottage for entertainment and accommodation for their guests. This will be given an out-of-sight basement that will include a large wine cellar and a living/dining area.
Venning predicts that the Founders’ Estates will treble in value in the next five years.
For further information please contact Peter Rademeyer on 083 447 1223.
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27 February 2009, 08:25:26
Lower Claremont and lower Kenilworth sales and values hold up remarkably well
The last three months at Rawson Properties Claremont franchise have proved conclusively that this area remains quite possibly the most desirable and sought-after in the entire Greater Cape Town area, says George Hayes, Rawson Properties’ long-serving franchisee who has run this franchise for a decade and who has had 17 years with the Rawson Group.
“I predicted when I took over here at Claremont that this would be an area that would always perform better than others,” said Hayes, “and that is exactly what has happened.”
His territory, which includes Lower Claremont, Lower Kenilworth, Mowbray, Rosebank, the Rondebosch section title market and Park Estate, has benefitted from being close to schools, UCT, the technikon, Groote Schuur Hospital, the Red Cross Children’s Hospital, several sports grounds (and the Sports Science Centre) and the city centre, and it is this, above all else, says Hayes, that ensures its ongoing desirability.
“Some areas have seen value drops of 40 to 50% but in these areas they have never been over 20% and in many cases are closer to 10%. What is more, there are now unmistakable signs that the long-awaited levelling off is now taking place in response to the lower interest rates.”
Hayes, in fact, expects a 3 to 4% drop in the interest rates by the end of this year. The further drop expected this week is bound, he says, to be followed up by others because SA is following the global trend (i.e. USA/UK/Europe trend towards ultra-low rates).
Just how well things have panned out for Hayes and this team is shown by their recent sales figures. In December they were 40% up on their figures for December 2007. In January they were 30% up on January of last year and this February they will equal their figures of February 2008.
Values, as indicated, have also held up well: in Lower Claremont, Lower Kenilworth and Mowbray homes are selling from R800 000 to R3 million, in Rosebank prices are higher, from R1,2 million and in the sectional title market they are R500 000 to R4 million. In Rondebosch East and Kenwyn prices can go as high as R5 million but the average is just around R1 million.
Looking ahead, Hayes says that his team will do steadily better this year not only because of the new interest rates but also because the banks will soon begin to succumb to pressure to be more lenient to bond applicants.
“Being prudent is one thing, causing the home marketing industry to stagnate is another,” said Hayes. “Even if lending managers are forced to be more accountable for bad loans, they will in the next few months have to loosen the purse strings a little.”
Rawson’s Claremont agents, he added, now have an average service of five years and they have all fulfilled the Recognition of Prior Learning and other obligatory training courses. Furthermore, says Hayes, every member of his team has a laptop and is computer literate.
“I foresee a time when 80% of all marketing, referrals and introductions will be via online services,” says Hayes. “The older type of agent who likes to think he can operate without the internet is completely out of touch.”
Footnote: for the record, at the end of 2008, Hayes’ franchise took the Rawson Group National Prize for the Highest Fees Earned. Their startling performance this year, says Tony Clarke, MD of the Rawson Group, was expected.
For further information contact George Hayes on 021 674 1094 or email claremont@rawsonproperties.com.
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27 February 2009, 08:23:44
Inexperienced property sellers often lose sight of the “real equity” in their sales
“When selling a property always keep your eye on your equity, i.e. what you will actually get out of the sale.”
This simple, seemingly obvious piece of advice, says Tony Clarke, MD of Rawson Properties, is surprisingly often forgotten, especially by those new to property ownership.
Taking as a typical example a home formerly priced at R600 000, Clarke said that in today’s market the seller may find that he has to accept a 10% reduction, i.e. R540 000.
“Let us assume that the buyer has been in the home less than ten years and still owes R200 000 on his bond. He will find that when he comes to sell his costs are ± R50 000, with the result that the amount that he actually pockets on the home will be R350 000. For some that would be a satisfactory situation, but for many it would come as a shock because they have never actually worked out what they can expect to gain.”
The costs, said Clarke, have a way of mounting up and to compensate for this sellers have in the last few years sometimes agreed to pay them on the buyer’s behalf.
“Here again, however,” he said, “sellers often underestimate what the costs will be – so it is important to get the advice of a good agent and work them out in advance.”
Conscientious agents, said Clarke, keep their sellers aware throughout the negotiation process of exactly how much they stand to gain or lose and if they do agree to take over the buyer’s costs will make sure that these are limited to a specified amount, often not the whole sum.
Those dismayed at recent value drops, said Clarke, can console themselves with the fact that if they are selling to buy elsewhere what they lose on the swings they will quite likely make up on the roundabouts – their new house is likely also to be at a low price. Provided they can get a bond under the new more stringent credit restrictions this price is almost certain to be very close to the bottoming out level.
For further information contact Tony Clarke on 021 658 7100 or email tony@rawsonproperties.com.
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27 February 2009, 08:21:55
Top agents from rival companies buy Rawson’s Brackenfell franchise
The ability of Rawson Properties branding – on which the head office staff has in the last two years spent a great deal of time and money – to attract top real estate performers into the group has once again been demonstrated by the sale of Rawson’s high profile Brackenfell franchise.
The buyers are two very successful agents in the corporate world, both with impressive track records.
Lucas van Vuuren and Andre Swart have done sales in the excess of R300 million over the last five years.
“The way these two dynamic agents combine their performances has proved to be a recipe for success,” said Tony Clarke, MD of Rawson Properties. “Both men were exceptionally successful in the companies for which they worked previously and they won numerous awards for superlative performances despite the challenging times.”
Explaining the factors that led to their move to Rawsons, Swart and van Vuuren said that they had been attracted by:
· the company’s high visibility achieved by its “Think Yellow” slogan and black and yellow cars, extensive advertising and its long 30 year history;
· the warm “family” vibe in the group which they feel emanates from the Chairman, Bill Rawson and MD Tony Clarke;
· the very friendly support, back up and training which form part of the Rawson package;
· the quality of the agents Rawsons has recruited at Brackenfell;
“We are proud of our team and can assure you of our commitment, dedication and professionalism,” said van Vuuren.
Although a full scale recovery in the residential property market is not on the cards until the last quarter of this year, the new franchise principals say that already at Brackenfell there are clear signs of a slow but steady an upturn. Advertisements are attracting far more replies, show houses are very well attended and buyers start to show more interest. The fact that the banks are issuing new loan criteria is also a positive sign.”
“We know Brackenfell,” said Swart, “and what has always been true of it, remains true today: it offers good value for money. It is very central, it is easily accessed by freeways, it has good schools and it has very safe and upmarket residential areas. Any buy here is a good one.”
“We invite our previous clients to come and meet us at our newly renovated offices, and experience again our true energy and passion for real estate,” he said.
For further information contact Lucas van Vuuren and Andre Swart on 021 982 0910 or email brackenfell@rawsonproperties.com.
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27 February 2009, 08:19:48
Cape property
Lack of preparation by buyers scuttles many property deals says Greeff
A great deal of time and frustration could be avoided in the residential real estate marketing world, if buyers would only do the necessary homework before they start looking at homes to buy, says Mike Greeff, Chief Executive of Greeff Properties.
“The first point to be clarified at the outset,” he said, “is how much the banks will allow on a bond. It is surprising how ignorant on this matter people can still be despite the huge publicity given to the National Credit Act.”
A meeting with an estate agent and/or a bond originator whom they genuinely feel they can trust and respect will lead to the applicant usually getting the answers he needs.
“The applicant must know and be able to declare the combined income of himself and his spouse or partner and their expenses – very often we find that certain expenses have simply been overlooked in the review process. The experienced agent or bond originator will then be able to calculate just how much is available for the house purchase and the type of bond that the applicant will qualify for.”
This apparently simple pre qualification process, said Greeff, has time and again not been carried out by those looking for homes.
Many buyers, added Greeff, under today’s credit restrictions qualify for only a 70% or 80% bond. To some this has proved “a big shock” and has resulted either in their giving up the search for a house or having to settle for something less expensive, in a less fashionable area.
Another factor quite often causing sales to fall through, said Greeff, is the conditional clause in the buyer’s offer stating that their current home has first to be sold at or above a stipulated price.
“Here,” he said, “the problem is that despite the ongoing discussions in the press on this matter sellers still often have totally unrealistic ideas of what their homes are worth. A great deal of time and effort goes to waste when after three months they have still not found a buyer at what they regard as an acceptable price and therefore cannot honour their Offer to Purchase.”
Buyers, said Greeff, must find out upfront from reputable valuers and/or agents what the current value of their home is.
“There are a great many who still have no idea of how much property prices have levelled off, or even declined, although, as I have said before, the Cape has proved far more stable than almost any other area in South Africa.”
Buyers, said Greeff, must also accept that the 72 hour (or three day) clause allows the seller to try and find an equal or better offer within that period - and if this happens they will have to meet the offer or forgo the sale.
Conditions in the current market, said Greeff, are beginning to ease and banks are likely to be more generous in the sizes of loans they are offering but, he predicted, for the next six to nine months the type of essential preparation work that he outlined will remain absolutely necessary to achieve a quick sale.
For further information contact Mike Greeff on 021 763 4120 or email info@greeff.co.za.
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26 February 2009, 16:47:21
The decline in credit growth will continue in the months ahead, Nedbank Group's economic unit said on Friday.
"Consumers will probably opt to use any increase in discretionary income from lower borrowing costs and petrol prices to pay down their debt and increase their savings before taking on additional credit," the bank said.
Earlier, the SA Reserve Bank announced that growth in demand for credit by the private sector eased to 11.85 percent year-on-year in January from a revised 13.6 percent in December.
Nedbank said consumer confidence would need to bounce back before firmer spending became entrenched.
Much would depend on the impact of the global recession on the local economy, particularly employment.
"A more pronounced and protracted global recession could see domestic economic activity remaining depressed for longer," Nedbank said.
"This could result in more significant job losses, putting a further dent in consumer confidence and keeping demand for credit subdued for longer."
The sharp drop in commodity prices and significantly weaker global demand, had forced companies to put expansion plans on hold, which would feed through into lower credit demand.
Distress borrowing, particularly by those companies servicing the retail sector, might increase, Nedbank said.
"Companies may be forced to borrow in order to manage their balance sheets as stock sits on the floor and costs remain high."
Nedbank said Friday's credit figures along with the Gross Domestic Product data released earlier this week reflected an economy "suffering both from a cyclical slowdown as well the negative effects of a global recession".
Nedbank said the economy was now projected to grow at just 0.2 percent.
Inflation was projected to fall below six percent towards the middle of this year and stay there, due to a combination of lower oil prices, weak domestic demand and deflationary pressures from abroad.
"As a result, there is a strong case to be made for cutting rates aggressively in the short term," Nedbank said.
However, the Reserve Bank would probably wait to assess early first quarter data before calling any extraordinary meeting of the MPC.
"In this regard, manufacturing and retail sales data towards the middle of next month could prove important."
Over the course of the remainder of the year, Nedbank expected a 350 to 400 basis point decline in rates.
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26 February 2009, 16:45:16
Reserve Bank Governor Tito Mboweni has poured cold water on talk that a special meeting of the Bank's monetary policy committee (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.
That would suggest the Bank was keen to cut interest rates again – most likely by another full percentage point – to keep the economy out of a recession.
"I said we may, we may, convene a meeting – and 'may' still applies, no meeting of the MPC has been called," he said at a conference hosted by Lereko Metier Capital Growth Fund.
"The MPC can meet any time they wish – if they should meet, we would make sure people are informed about it," he said.
News that the economy shrank 1.8 percent in the fourth quarter of last year – its first contraction in a decade – fanned heated speculation that there would be an interim MPC meeting, either this week or next.
SA might join global recession
But Mboweni said the fall in economic output, which sparked concern that SA might join the global recession, was no reason to panic. The economy expanded 3.1 percent over the past year, down from an average pace of five percent of the previous four years.
"The picture is now well known; 2008 was not one of the best years in terms of economic performance," Mboweni said.
"The fourth quarter was in negative territory – this is something which should not alarm people, but is nevertheless of some concern," he said.
Inflation was coming down nicely, but not in the "waterfall" trajectory predicted, he said.
Rand Merchant Bank fixed income analyst Bulent Badsha, who was at the presentation, said the governor's comments had reduced the likelihood of an interim MPC meeting.
"The odds of an early MPC meeting have diminished to about 30-70, although it could still happen," he said. Higher than expected consumer price inflation also counted against an urgent meeting, he said.
A sufficient output gap
Inflation measured by the new consumer price index (CPI) slowed to 8.1 percent last month from a 9.5 percent rise in the previous CPI gauge in December.
But figures released after Mboweni spoke showed producer inflation subsided to 9.1 percent last month from 11 percent in December – well below forecasts. Mboweni also highlighted the large gap between the economy's potential rate of output – which the Bank says is 4.5 percent – and actual output, which the Treasury sees at 1.2 percent this year.
"If we are growing at 1.2 percent, there is a sufficient output gap, and that is a good indicator for inflation," he said. "I'm a bit careful; I will say plus or minus 1.2 percent."
Nevertheless, the slowdown would affect jobs, Mboweni said. "Given current conditions, we expect some slowing in terms of employment creation."
On the bright side, South Africa's banking sector was looking "strong and healthy" despite the worsening global financial crisis, he said.
Total assets in the banking sector rose to R3.17-trillion by the end of last year from R2.66-trillion at the start, while its capital adequacy ratio improved to 13 percent from 11.8 percent. But bad loans, or "impaired advances", rose to 3.8 percent of the total from 2.3 percent.
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25 February 2009, 16:42:05
The Upper Vaal River area, situated on an unspoilt stretch of water below the Vaal Dam, continues to buck the prevailing property market trends with growth in residential property values in excess of 35 percent year-on-year, says Phil Medlock, area principal for Pam Golding Properties (PGP).
"To illustrate this, in 2007 the average selling price of vacant plots was R200 000 while in 2008 all our sales of such properties were above R300 000. Currently we still have no stock available under R300 000.
"Buyers remain drawn to this area not only for its water sport activities, including boating and fly fishing, but for the peace and tranquillity and large size of the properties on both the Free State and Gauteng sides of the river. While purchasers are mostly those seeking lifestyle weekend getaways, we also see an increase in buyers wishing to relocate here permanently — with the drive into Johannesburg/Alberton a comfortable 60 minutes on good roads. With the appealing town of Deneysville a mere five minutes away with its shops, restaurants and marinas, the area offers the ideal weekend getaway from the hustle and bustle of the city," says Medlock.
He says all the waterfront properties range in size from five to nine hectares with 100 metres of private waterfront. These start at around R1.3-million for vacant land and from R1.7-million for stands with improvements (i.e. with homes and/or outbuildings constructed).
PGP Vaal Dam recently concluded the sale of a waterfront property — including a house — located on Vaal Bank for R1.7-million as well as the sale of two properties in the Veekraal Valley priced at R1.1-million and R1.3-million respectively. Each of the latter properties includes a home set on five hectares.
"Prices of homes in this desirable location range up to around R3.2-million," adds Medlock. "Situated on the Vaal River below the dam wall, the Veekraal Valley has very shallow, fast-flowing water making it ideal for fly fishing. It is also home to exceptional bird life including fish eagles.
"Further large plots not on the water but with superb views across the Vaal River valley are currently available for purchase. These are situated on a minimum of five hectares ranging in price from R300 000 to R650 000. While these are not right on the water they do provide river access via a servitude — again affording outstanding fly fishing," he says.
For further information contact Phil Medlock of PGP Vaal Dam on 016 3711377, 082 784 7355 or phil.medlock@pamgolding.co.za.
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24 February 2009, 08:44:11
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Edition 7 of 2009, Friday, 20 February
Dear Reader
 RESERVE Bank governor Tito Mboweni sidestepped questions yesterday on whether an interest rate cut is imminent, saying SA’s economy would still notch up some growth this year, despite the global downturn. Businessday - Property owners will have to be patient.
Do you think Carl Niehaus’s landlord is the only landlord that got a headache? The answer is no. Recent stats shows that 50% of tenants are not paying on time. You cannot rent out a property in these bad economic conditions without keeping your fingers cross.
By Denise Mhlanga – Realestateweb
Disgraced ANC activist Carl Niehaus - who stunned the nation over fraud allegations - isn't the only tenant who has been giving his landlord a headache. The Sunday Times reported at the weekend that Niehaus owes about R250 000 in rent for a large Tuscan-style home in Midrand. Niehaus's R45 000/month rental isn't the politician's only financial headache. He has rung up big debts all over the place.
The numbers may be smaller, but the Niehaus story is a familiar one for many landlords: Despite a cut in interest rates, many tenants are reportedly struggling to meet their rental obligations. What's more, tenants in higher rental categories are the worst when it comes to meeting their monthly obligations for their accommodation.
According to the Tenant Profile Network (TPN) Q4 2008 report, 54% of tenants pay their monthly rental on time. This is the same figure as in the third quarter of 2008, says Michelle Dickens, managing director of TPN. Dickens says the national average is 12% of tenants who cannot meet their rental commitments at all. She says 60% of leases obtain only 0,5% to 0,75% rent value as a percentage of the market value. This means that investors are left with a shortfall on their mortgages and levy payments.
The report said that Kwa-Zulu Natal had the worst performance, with 18% of tenants failing to pay their rent, Eastern Cape and Gauteng recorded 10% each while the Western Cape had only 8% of tenants who could not pay their monthly rentals.
Furthermore, the report said 46% of higher income tenants renting properties priced at R7 000 and R12 000 are struggling to pay while 37% of tenants renting properties priced at R12 000 and above could actually pay their rentals. Tenants in the R3 000 and R7 000 income bracket were more likely to meet their commitments with an average of 61% making regular and full rental payments.
Warren Bradfield, branch manager at "Hunters - The estate agents" in Umhlanga says the situation with tenants paying late or struggling to pay is getting worse every month.
Andrew Schaefer, managing director of Trafalgar Property Management says he is picking up a similar trend. However, he says generally people in the lower income groups are still managing to pay their rentals in full and on time because demand for property in that category is such that tenants cannot afford to be kicked out for failing to pay. He says high income earners have difficulties paying their rentals because they are already over-indebted, resulting in either late payments, or not paying in extreme cases.
Tara-Lyn Hort, rental agent for Aida Milnerton, says perhaps 10% of tenants account for bad payers or those likely to struggle with rentals. She says tenants who do not pay on time would pay three to four days late.
Meanwhile, one rental agent told Realestateweb landlords should not wait as long as Niehaus's did to take action. Provided you have a signed lease in place and a good attorney, it is possible to have a tenant evicted in about six weeks, says the Johannesburg agent.
Win with Design> Magazine! In the newsletter edition of 30 January 2009 we announced that Design>Magazine will be giving away R1000.00 every week for four weeks to one lucky subscriber. Congratulations to our winners of the 1st and 2nd. Make sure that you stand a chance to be a lucky winner by registering now.
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Winner - Week 1
Jason from Honeydew
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Winner - Week 2
Meyer from Fourways
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Perched up in the hills, Haenertsburg looks like a little piece of Austria transplanted to Africa. A tiny village of just one main street, this is a lovely place to enjoy a quiet meal before or after enjoying the great outdoors of the Letaba District. Focus on Haenertsburg, Limpopo, South Africa
Enjoy!
The editor
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23 February 2009, 08:53:08
Banks are repossessing fewer houses and cars, debt counselling organisation Consumer Assist said on Monday.
"Banks, which at one stage were repossessing 10 to 20 houses are now rethinking that strategy because they have realised that unoccupied houses don't sell quickly because of the property slump and thieves soon strip them bare," said CEO Andre Snyman.
He said banks were allowing home-owners to remain in their dwellings and were renegotiating payment terms – "which is what they should have done in the first instance".
There had also been a reported slowing in vehicle repossessions because banks were unable to sell the cars they were repossessing.
A drop of 1.5 percent in interest rates since December 2008 was also relieving pressure on bond and vehicle repayments, Snyman said.
He added that the total number of civil summonses issued for debt in 2008 decreased by 4.4 percent compared with 2007 according to Stats SA's most recent report.
However, there was an increase of 2.6 percent in the fourth quarter of 2008 compared with the fourth quarter of 2007.
Stats SA said the major contributors to the decrease in civil summonses issued for debt in 2008 compared with 2007 were civil summonses issued in respect of money lent (-5.5 percentage points), other services (-0.8 of a percentage point) and promissory notes and other acknowledgements of debt (-0.5 of a percentage point).
He said this did not mean there was less debt.
"What it means is that more people are going to debt counsellors to help them out of bad debt, while others are becoming far more careful of how they spend and are trying to pay off outstanding debt."
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21 February 2009, 08:45:27
R5,9 million will buy you two homes on a single plot with river frontage
Those who know the Cape residential property market will tell you that Newlands, with its 300 year old history and its quiet cul-de-sacs is still the place to find those little residential gems of which the general public is seldom aware, say Mariella Peretti and June Gillespie of Greeff Properties, who are selling just such a property on a 700m2 plot in a Newlands security complex off a peaceful, secure lane.
“The home,” says Gillespie, “has a true Cape Victorian look with long paved verandahs and straight-line gables, but it is in every respect a sophisticated residence with upmarket finishes of travertine and exotic wood.
“It also has the benefit of being two properties in one so that whoever buys here could possibly recoup half his bond repayments each month in rent.”
The property fronts onto a mountain stream which flows year round and provides irrigation water for the vibrant garden.
The main building has a double bedroom with views of the river, a living room with a fireplace and French doors leading onto a deck, which also overlooks the river. The kitchen has a separate scullery and an open plan link to a family room which, in turn, opens onto a private enclosed patio/courtyard. The home has a double garage.
The cottage is a double storey and has two bedrooms, its own kitchenette, a shower bathroom and a study.
The property has state-of-the-art intruder prevention technology, including perimeter beams.
Mike Greeff, CEO of Greeff Properties, commented that Newlands had been one of the few Cape areas to hold its values to within 5 to 10% of the 2007 peak and, as there is almost no room for future development here, demand is likely to continue to exceed supply – keeping prices up.
The area’s greenness and beauty, and above all, its closeness to UCT, the CBD, and some of the Cape’s finest schools make it a first choice for many buyers, he said.
“Priced at R5,9 million, these two homes in one will make a great investment in years to come.”
For further information contact Mariella Peretti: 082 357 4602 and June Gillespie: 083 309 6275
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20 February 2009, 08:37:46
Construction of Zambia’s first ever lifestyle estate is due to begin in Lusaka this year, signalling a coming of age for the country’s property market.
Janet Irwin, principal of marketing agency Homenet Zambia, says the project has already generated considerable interest from buyers with 60 units already reserved.
Named “The Heart of Africa”, the development will be Zambia’s largest residential project to date, with an eventual total of 850 homes, and will also incorporate offices, a variety of luxury retail stores, a five-star hotel, restaurants, an 18-hole PGA standard Matkovich golf course, a country club, dams and communal parks covering 70ha. Security protocols will be of the highest standard.
“We are very excited about the project,” says Irwin. “The time is ripe for a development of this calibre and savvy investors are already buying.”
Situated on the periphery of Lusaka, the development is being built by the South African-based Legacy Holdings, the founders of which were responsible for a number of prominent projects including The Lost City, the Michelangelo Hotel in and Michelangelo Towers in Sandton.
Fully serviced stands now on sale measure between 300sqm and 675sqm and are priced at between US$70 000 and US$260 000. What is more, buyers have a variety of Legacy Holdings architectural designs from which to develop their dream homes.
The architectural style of the development is “African contemporary” or what Legacy has called “Afropean”. A private pool can also be included upon request.
The development is aimed at buyers from all backgrounds, but foreign buyers, says Irwin, would do well to familiarise themselves with Zambian property laws. These provide that in order to be able to purchase property in Zambia, foreigners need to be a permanent resident of the country or to own a company there.
ISSUED BY HOMENET
FOR MORE INFORMATION CALL
JANET IRWIN ON
0026 01 255-747/8 OR VISIT
www.homenet.co.za
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The Mega/ Press Network
Pse direct any enquiries to
012-333-6644,
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18 February 2009, 14:43:00
The Chas Everitt International franchise in Middelburg has just had a bumper sales month thanks largely to increased demand among buyers from the neighbouring Mhluzi township.
Franchise principal Susan Muller says those looking to upgrade from Mhluzi are purchasing homes priced between R400 000 and R500 000 in the Mpumalanga town. Meanwhile 'black diamond' buyers are also making an appearance with many initially renting properties before purchasing for between R800 000 and R1.1-million.
"Many buyers are taking advantage of the lower prices sellers are currently asking," she says. "Indeed, some sellers have dropped their asking prices by as much as R250 000."
As a result, refurbishment has also caught on in a big way. Many buyers are purchasing property in the older parts of town in order to revamp and sell them at a profit, upgrading and then repeating the cycle.
The rental market in the town is also incredibly buoyant at present, says Muller, with high demand being driven by the many contract workers who gravitate to the town on a regular basis to work in its coal mines, steel plant and power station.
In fact, many potential tenants are currently battling to find accommodation, she says. Two bedroom townhouses rent for R4500 per month on average while an upmarket freehold home in the town can fetch as much as R8000 per month.
Interestingly, though, a buy-to-let market has yet to manifest in the town and sectional title properties are selling relatively slowly.
There is also a dark cloud on the horizon in the form of falling steel prices. For the first time ever, the local steel plant closed over the holiday season for three weeks. And should such conditions continue, they could have a negative impact on the town’s property market this year, says Muller.
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17 February 2009, 16:47:55
The January oobarometer price index shows a decrease of 4.8 percent in the price of the average house.
"The oobarometer shows that the property market is continuing its negative trajectory," says Saul Geffen, chief executive of ooba (formerly MortgageSA).
The average purchase price was at R818 905 in January 2008 compared to R779 033 in January of this year.
The oobarometer is expected to continue to record declines in house prices until the second half of 2009. Thereafter the property market is expected to start to make a recovery and begin to show positive growth at the end of 2009 into 2010.
"Interest rates are expected to continue to be cut throughout the first half of 2009 which will give home owners much needed relief and stimulate the property market," says Geffen.
"The stringent changes to lending criteria implemented by banks at the end of last year have had an immediate effect on the average decline ratios," says Geffen.
The year-on-year average decline ratio has increased by 15.3 percent while the month-on-month data reflects a 0.8 percent increase. This means that, in January 2009, 58 percent of all home loans submitted were declined by the first bank their application was submitted to.
The ratio of applications declined by one lender but approved by another also showed a strong downward trend in January of this year to 22 percent from 38 percent in January 2008. This means that only 22 percent of loans declined by one lender were taken up by another in January.
"The sharp decrease in the ratio of applications declined by one lender but approved by another indicates that there is a reduced opportunity to obtain approval once one bank declines an application," states Geffen. "This is due to the restrictive lending criteria the banks have imposed recently."
There has been a 22 percent increase in the year-on-year average deposit as percentage of purchase price which is indirectly linked to the change in bank lending policies.
The average bond size dropped by 8.4 percent from R700 042 in January 2008 to R641 140 in January 2009. There was a 2.8 percent drop in month-on-month average bond size.
Geffen notes that banks’ recent tightening up of lending has compounded the troubles in the housing market.
"Banks have introduced much stricter lending criteria and fewer buyers are qualifying for the full amount of the loan they apply for. With interest rates coming down, the recovery of the property market is shifting towards bank lending policies. Banks will need to relax lending in order to facilitate increased demand and prevent further price deflation," concludes Geffen.
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16 February 2009, 08:53:19
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ABSA has successfully renegotiated its agreement with bond originators regarding commissions paid to them and the quality of applications submitted to the bank. Gavin Opperman, the group executive of SECURED LENDING AT ABSA RETAIL said agreements with the major bond with major bond originators had been concluded and negotiating with smaller originators would be finalised by the end of the month.
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16 February 2009, 07:56:12
Car dealers do it, department stores do it, bakeries do it and you can too — make your product look good, that is. If you're ready to sell your house or apartment, make it easier and more lucrative by following these simple tips.
Cosmetic changes don't have to cost a lot and they can help you get a much better price on your home. The two most important places are the kitchen and the exterior, according to some leading estate agents.
Don't think a little paint and some pansies on the porch will cover up major flaws, though. Even if the scent of lemon and a well-scrubbed floor distracts the buyer, the assessor they hire will likely discover those leaky pipes and damp walls. Most sales are subject to an inspection so cosmetic changes will not cover up major problems. You get into serious legal issues if you try and cover up defects.
If your home requires major work, get it done or lower the price. If not, there are many things you can do to improve the look and price of your place.
A potential buyer's first impression is what real estate agents call 'curb appeal'. Be sure your humble abode makes it past that initial drive-by.
Maintain the lawn and shrubs. Put in a few small flowering plants.
Make sure the entrance is tidy and welcoming.
Paint window casings, shutters and doors.
Keep garbage cans out of sight.
Clean out gutters and drains.
Even in a beautiful house, sloppy housekeeping will give buyers pause. Cleaning your home is the easiest and most cost-effective thing you can do to make it more appealing. You want their focus on the bay window and two-car garage — not the carpet stains.
Tend to the little things — oil squeaky hinges, tighten cabinet knobs and fix leaky taps.
Clean dirty carpets and make sure the bathroom is spotless.
Polish the fixtures, replace the old shower curtain, declutter the countertops.
Clean the oven as many people check there for a clue to your housekeeping habits.
Work out an arrangement with your kids to keep their rooms neat.
We're all proud of our decorating abilities, but unless you're selling the place furnished it's more important to help prospective buyers envision their stuff in your house. They need to imagine themselves in your space, so make it easy for them.
Clear stuff from the garage, basement, attic and closets.
Put extra furniture and belongings in storage.
Let the light in.
Open drapes and blinds (unless your view is of a parking lot or your neighbour’s lawn ornament collection).
If you hire an estate agent, they should advise you about improvements. Agents are in and out of a lot of homes. They know what most appeals to buyers in your area. Get the low down on what does and doesn't work.
If you think these cosmetic details don’t work, I can tell you from personal experience that they do. A close friend of mine bought a home and six months later she had to relocate. In the meantime she spruced up the home with the help of some paint, a talented gardener and good cleaning agents.
Her total cost for the mini renovation was R16 000. She originally paid R730 000 for the home and sold it for an incredible R900 000. She actually made money on the deal, which is rare feat in this market and considering she only held the property for six months. So get out the oven gloves, hone your painting skills and make some extra cash on your home.
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13 February 2009, 08:00:45
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Lower Constantia attracting downscalers from its adjacent areas
Anne Porter Knight Frank agents, Mandy Kuhn and Anne Wilkinson report that there is now a discernible trend in buying at Constantia: older retired people, they say, are downscaling to Lower Constantia.
The advantage of this, says Kuhn, is that they can usually buy at a discount what they were paid for their original homes – and still stay in contact with friends, doctors, sports and cultural clubs.
In most cases they move into a more secure gated estate – but that, says Wilkinson, is seldom as easy as it sounds because although secure estates have proliferated in recent years, there simply are not enough such estates to accommodate all who would like to live there.
“The scarcity of this type of housing,” said Kuhn, “makes such estates now one of the best performing property buys.”
Right now, APKF have just sold one such home for the full asking price of R2,995 million – and, what is more, it was snapped up in three days.
The home is in “The Glen”, a gated community of 20 homes. Previously APKF sold a unit here for a near-record price of R3,2 million.
The house is a single storey with three bedrooms and a spacious living-dining area. Designed in a modern style, it is set in well maintained gardens.
Lanice Steward, MD of Anne Porter Knight Frank said that this is further proof that a well priced Cape home in a security estate will always sell in a short period.
For further information contact Lanice Steward on 021 671 9120 or email lanice@anneporter.co.za.
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13 February 2009, 07:59:19
Rawson properties continues to sell franchises despite difficult conditions
Rawson Properties sold and established 27 new franchises last year (2008) and, says the group’s Chairman, Bill Rawson, they could double this number in the current year.
“Forty-eight new areas have been demarcated,” he said, “but, of course, we will also be trying to set up in some areas not as yet identified – and some of the successful franchises will, as always, be split into two or more operations.”
So far as he knows, said Rawson, no other SA estate agency is expanding at the same rate as his group.
Asked about the casualty rate among franchises (i.e. what percentage have survived), Rawson said the number actually closed down is minimal but in several cases the franchisee has been forced, or has chosen, to cede his franchise to another person. In some cases, he added, this has been an already successful franchisee who is capable of managing several franchisees.
“Some franchisees are just jogging along on low sales waiting for better times,” said Rawson. “This tends to happen especially when the franchisee has other business interests which keep him occupied. We do not like the situation and will this year be stricter in ensuring that franchisees either promote the agency or sell it.”
The areas in which the most expansion will take place, said Rawson, are his group’s traditional hunting ground, the Western Cape, and Gauteng and adjacent provinces, which have their own regional director and active franchise support team.
“What sets us apart from many franchise groups,” said Rawson, “is the support and training we give to our franchisees. In the year ahead we will pay even more attention to appointing quality candidates because, as we have often said, we are now into a new era, one in which slack or dishonest real estate people will give way to the fully educated, better trained professionals.”
For further information contact Bill Rawson on 021 658 7100 or email bill@rawsonproperties.com.
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13 February 2009, 07:57:07
New Rawson franchisee sets up "promising" Wilgeheuwel franchise
Rawson Properties’ plan to expand steadily throughout Gauteng and, in particular, to cover all the major areas in Johannesburg, has been taken a step further by the sale of the Wilgeheuwel franchise to Frederick Lange and his wife Joanita, a qualified conveyancing attorney. (He also studied law at Potchefstroom University, but has never had any inclination to practice in the legal profession). Since establishing the new franchise in August last year, he has built up a stock for sale of ± 40 homes valued from R500,000 to R3 million.
Like many other recently recruited Rawson Properties franchisees, Lange previously ran his own agency but, he said, he had always envied Rawson Properties franchisees and agents the benefits they derived from the strong rand and high profile of their group – and he had always seen Wilgeheuwel as a desirable area with huge potential. This, in recent years, he said, had been further boosted by the growing popularity of adjacent areas, especially Willowbrook, Eagle Canyon and the Ruimsig Golf Estate.
"I think that we are now seeing the very tough trading conditions starting to ease off," said Lange, "and values will, I believe, start to rise from about the end of 2009 onwards.
"What will make the difference in the coming years is the quality of the training given to the Rawson Properties agents and the support from the franchisor. In both these respects Rawson Properties is proving to be ahead of its competition. We particularly appreciate the regular, well researched analyses of the market and the advice we are given on how to operate in current conditions."
Lange said that he had absolutely no regrets about joining the group.
The Rawson agency training takes place weekly and the group has, in Lana de Villiers, one of the best support managers in South Africa today."
One of the things that he has learned from Rawsons, he said, is that if an agency provides a good service there is no need to work to completely cut-throat commissions.
Rawson commissions," he said, "are very competitive but they are not nearly as low as those on which I operated when on my own. I am now attracting far more stock and far more enquiries than I was able to do as an independent operator on minimal commission. This makes it clear that if a group has a good reputation it will attract buyers in good or bad times without having to cut commissions."
For further information contact Frederick Lange on 011 704 4447 or email wilgeheuwel@rawsonproperties.com.
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13 February 2009, 07:48:28
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Edition 6 of 2009, Friday, 13 February
Dear Reader
In last week’s newsletter we focused on the 1% interest rate cut and we asked our readers the following; I expect the SARB to lower rates and the banks to lower interest rates to 13% by April 2009, to 12% by June 2009, to 11,5% in August 2009 and to 11% in October 2009. What’s your opinion?
70% of the readers was of the viewpoint that interest rates will drop with another 2,5 to 3% before end of 2009. Is this just hopes or will it become reality? We can only wait and see.
“Cutting interest rates will not help the housing market unless the banks get over their “property panic” and lower their deposit requirements.” “But with the banks now requiring minimum deposits of 25% on purchases of empty land, even creditworthy clients are being shut out of the market and developers are being forced to become bankers in order to get any deals done.” Banks must come to the party, says top developer
I found the above article very interesting as I received the following cry from one of our readers, I would like to know - how is it possible for first time home buyers with no deposit to be able to afford buying a home? Read more in To the editor
 This week we take a closer look at the 2009-10 budget announced by Finance Minister Trevor Manuel and the impact it might have on the property industry;
“Treasury officials conceded yesterday that if the global economic downturn proved to be deeper and more prolonged than expected it would pose a significant risk to the economic growth forecast they used to underpin the 2009-10 budget announced by Finance Minister Trevor Manuel this week." (Business Day)
"The personal tax relief of R13,5bn will do much to relieve pressure on the consumer. This factor, coupled with falling inflation and interest rates, will also have a spin off effect in that existing home owners will be able to cope far better with their existing debts and bonds. It will also take the pressure off those who might previously have sold their properties too quickly.
The "no real surprises" Budget means the property market will not receive the mild boost it deserves as an engine of growth for the economy
People will always buy and sell property and supporting social
infrastructure development will ensure that more consumers will be enabled to enter the market on a sustainable basis.
As to specifics, the proposed spending on infrastructure, social
development and rural upliftment are all positive from the property point of view, even if only in the long term.
Have you thought about using peach pips for your floor? Unique way of creating atmosphere in the home, using peach pips
Get a grip… get a golf membership
The Players GC is offering CyberProp newsletter subscriber the change to enter the wonderful world of golf and get all the benefits they need as a golfer without having to outlay thousands of Rand’s to get it.
Enjoy!
The editor
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12 February 2009, 16:45:31
The Rental Housing Tribunal (RHT) is an independent body appointed by the Provincial Minister of Housing to promote stability in the rental housing sector and to resolve disputes between landlords and tenants of residential dwellings with the least amount of inconvenience and cost to the disputants. It aims to offer a speedy process of justice to resolving disputes that would otherwise remain clogged in the legal system for months, if not years.
Each tribunal office consists of three to five members that are appointed to serve a term of three years and, if appropriate, can be extended for a further three years. The members include attorneys, advocates, property professionals and experts in consumer matters related to rental housing elected by the Minister of Housing. The tribunal also has a staff component that includes inspectors, technical advisors and administrative support staff.
The RHT has the authority to arrange mediations or sub-poena parties to a hearing. The ruling of the Tribunal is deemed to be a judgment of a Magistrates Court. The RHT can, in addition, impose a fine and/or imprisonment and has the authority to deal with disputes, complaints or problems that include: non-payment of rentals, refund of security deposits, invasion of tenants’ privacy, overcrowding, determination of whether rentals are exploitative , unlawful seizure of tenants' goods, discrimination by a landlord against a prospective tenant, receipts not issued, tenants conducting a nuisance, maintenance and repairs, illegal lockout and disconnection of services.
When a dispute arises
When a dispute arises between a landlord and tenant, the landlord or tenant may file a complaint by either posting, faxing or emailing a complaint form to the RHT office or by filling in a complaint form at their closest RHT office. A case manager will then open a case file and enter the names of the complainant and respondent, a summary of the nature of the complaint and a case number into the register. A letter is then sent to the parties regarding the complaint filed. Parties are also informed of the date, time and place that the case will be mediated or heard. At this stage the respondent can also file a counter-claim against the complainant.
In the case of mediation between the parties, the mediator does not have the power to make a ruling. The mediator's role is to advise the parties about the law relating to the dispute and help them find a solution. At the conclusion of a successful mediation, parties can ask for the agreement to be made a ruling of the tribunal. If the mediation is not successful, the case will be referred to the tribunal for a hearing.
In a hearing, the parties (or their authorized representatives) will be given the opportunity to present their case and to put forward any relevant evidence. Parties have the right to cross examine each other and tribunal members may ask questions of the parties. An inspection report regarding the state of the dwelling may also be discussed depending on the type of dispute. The Tribunal will adjourn to examine the evidence and will usually give its ruling on the same day.
Landlords and tenants should know about the legal requirements of residential letting
Landlords, tenants and letting agents are encouraged to educate themselves on the legal requirements of residential letting to avoid negative consequences down the line and perhaps even a hearing at the RHT.
The University of Cape Town now offers a one–day residential property letting workshop in Cape Town and Johannesburg, which is presented by Mr. Salim Patel and Prof. Graham Paddock.
This workshop is ideal for letting agents, estate agents, attorneys, landlords, home owners and property investors and will equip students with a thorough understanding of the legal aspects pertaining to the letting of residential property. The workshop will empower students in their understanding of the Rental Housing Act and the Prevention of Illegal Eviction Act and will include all recent amendments.
Please contact Candice at candice@getsmarter.co.za or on 021 683 3633 for more information. Alternatively, visit www.getsmarter.co.za.
The Rental Housing Tribunal can be contacted at 086 010 6166.
Salim Patel is the Chairman of the Western Cape Rental Housing Tribunal
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11 February 2009, 16:44:52
The rand is forecast to remain range bound at weak levels for an extended period of time, according to Rand Merchant Bank's currency analysts.
In their monthly rand outlook report, the analysts note that the rand's strong performance in recent weeks has encouraged thinking that the unit will be able to appreciate strongly this year, just as it did after blowing out in 2001.
But they point out that economic conditions are not as supportive for the rand as they were in 2002 to 2003.
"As such, USD/ZAR moves sub-9.00 look highly unlikely," they state.
"We could, of course, see further ZAR gains in the short term. But after having broken the narrow range of 9.85 – 10.30, USD/ZAR is merely back in its wider range of 9.25 – 10.50. With import order very strong, the ZAR having run well ahead of its competitors and the endless geo-economic risks around, we don't think the bottom end of the wider range will be broken. Indeed, we see the magnetic 10.00 pulling the cross back up soon enough and retain this as our end-Q1 forecast. USD/ZAR10.50 remains our end-year forecast.
"We also maintain our end-year EUR/ZAR forecast of 14.18 but have revised our mid-year forecast down from 14.20 to 13.50," the analysts say.
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10 February 2009, 08:33:59
| The following article is a follow up of one of our previous articles (South Africa Experiments With Houses Made of Sand) as requested by one of our valued readers, Mr J. Olivier. |
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Design Indaba 08: continuing our series of stories about the 10×10 Housing Project in Cape Town, South Africa, here are the latest photos showing progress constructing the first sand-bag house.
Designed by MMA Architects, the house is the first of 100 experimental, low-cost homes for former shack dwellers that will be built at Freedom Park on the outskirts of Cape Town.
Work started on the houses last Monday and these photos were taken last Wednesday and Thursday, when local children joined in to help fill sand bags.
See our earlier story for plans of the houses and an explanation of the sand-bag construction method, and photos of the first day’s work here.
“The bags have now all been packed in for the bottom floor, and the shuttering was made right on the top for the concrete ringbeam, which was cast on Friday,” says project manager Nadya Glawe.
“Next week we’ll start plastering the bottom level to give support, before putting up the timber frame on the top level and packing bags again.”
The houses each have a budget of 65,000 Rand (£4,300/$8,600).
1.) Click here to go to the 1st article
2.) Click here to go the 2nd article
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09 February 2009, 11:16:12
The January oobarometer price index shows a decrease of 4.8 percent in the price of the average house.
"The oobarometer shows that the property market is continuing its negative trajectory," says Saul Geffen, chief executive of ooba (formerly MortgageSA).
The average purchase price was at R818 905 in January 2008 compared to R779 033 in January of this year.
The oobarometer is expected to continue to record declines in house prices until the second half of 2009. Thereafter the property market is expected to start to make a recovery and begin to show positive growth at the end of 2009 into 2010.
"Interest rates are expected to continue to be cut throughout the first half of 2009 which will give home owners much needed relief and stimulate the property market," says Geffen.
"The stringent changes to lending criteria implemented by banks at the end of last year have had an immediate effect on the average decline ratios," says Geffen.
The year-on-year average decline ratio has increased by 15.3 percent while the month-on-month data reflects a 0.8 percent increase. This means that, in January 2009, 58 percent of all home loans submitted were declined by the first bank their application was submitted to.
The ratio of applications declined by one lender but approved by another also showed a strong downward trend in January of this year to 22 percent from 38 percent in January 2008. This means that only 22 percent of loans declined by one lender were taken up by another in January.
"The sharp decrease in the ratio of applications declined by one lender but approved by another indicates that there is a reduced opportunity to obtain approval once one bank declines an application," states Geffen. "This is due to the restrictive lending criteria the banks have imposed recently."
There has been a 22 percent increase in the year-on-year average deposit as percentage of purchase price which is indirectly linked to the change in bank lending policies.
The average bond size dropped by 8.4 percent from R700 042 in January 2008 to R641 140 in January 2009. There was a 2.8 percent drop in month-on-month average bond size.
Geffen notes that banks’ recent tightening up of lending has compounded the troubles in the housing market.
"Banks have introduced much stricter lending criteria and fewer buyers are qualifying for the full amount of the loan they apply for. With interest rates coming down, the recovery of the property market is shifting towards bank lending policies. Banks will need to relax lending in order to facilitate increased demand and prevent further price deflation," concludes Geffen.
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09 February 2009, 09:57:28
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Edition 5 of 2009, Friday, 6 February
Dear Reader
 THE RESERVE Bank cut its repo rate by 100 basis points to 10,5% yesterday, the biggest single adjustment in more than five years. What does this mean to home owners? If you have a bond of R500000.00 payable over 20 years it means a saving of R350.00 per month.
According to Central bank governor Tito Mboweni the repo rates should have been cut more “Interest rates should have fallen like in other countries”. He warned the South African public on National Television last night to take it easy, “It’s bad out there”.
 An interview with property investment specialist, Tony Bales(right) of Bales Delaporte Commercial Property Dealmakers; What is your viewpoint on the rate cut and specifically in the area that you focus on, the commercial property sector?
“We expected a 1% rate cut but although it is welcomed we need more than 1% to turn our economy around as it is far deeper rooted. I expect a further 2% cut during the course of the year but 2% might still not be enough to pick up the economy. South Africa is part of the global economy and we will only experience our turn around when the global economy is showing a turn around. This is a major concern. The current global economy is having a negative effect on South Africa’s commercial and industrial property sector. Locals will have to make good decisions in the months to come that will hold water. Lots of tenants are experiencing serious hardship and unfortunately this will continue. England announced an interest rate of 1% and until the global economy recovers South Africa will have to follow suit.”
What is your viewpoint on the residential property sector?
"The residential property sector should show a quicker turn around as it is directly influenced by the individual. I believe that the interest rate cut is going to offer a relief but I don’t know if it will have an influence on residential property prices. Yes, it might stabilise it."
 Berry Everitt, MD of the Chas Everitt International Property Group, says the latest rate decrease is a good "step in the right direction because it will send a positive message to both home owners and potential home buyers, especially when read together with the rate decrease that took place in December". He says that although it will take time to flow through the market it will help to restore consumer confidence in the economy, raise disposable income and slow down repossessions, which will underpin home values."
I expect the SARB to lower rates and the banks to lower interest rates to 13% by April 2009, to 12% by June 2009, to 11,5% in August 2009 and to 11% in October 2009. What’s your opinion? Let us know news@cyberprop.com
Enjoy!
The editor
CyberProp Newsletter 06/02/09...Click Here
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06 February 2009, 08:39:46
Mobile executives opting for the cape’s outlying towns
One of the major changes in Cape lifestyles, the growing practice among executives to operate from outlying towns, has taken place without many people even being aware of it, says Lanice Steward, MD of Anne Porter Knight Frank.
“Ten to 15 years ago,” she said, “if you lived beyond Bellville, Durbanville, Table View or Somerset West, you were thought to be rusticated – out of the main stream. Nowadays, it is in outlying areas that we find some of the Cape’s most active and innovative entrepreneurs and professionals.”
Towns like Franschhoek, Paarl and Hermanus, said Steward, are increasingly populated by go-ahead young people who commute internationally or to the Reef and KwaZulu-Natal and manage big enterprises via the internet from their home bases.
Three factors, said Steward, have helped drive the swing to outlying areas: the growth of gated communities, the establishment of good private schools in country towns and the inadequacies of the Cape Town road network which has made traffic congestion part of many commuters’ daily lives – “a situation totally unacceptable to really go-ahead people”.
Expanding on these points, Steward said that developments like the exclusive Boschendal Founder’s Estates (which will have only 18 homes) are especially attractive to high-flying executives because their stringent security measures enable the buyers to leave home for long periods without undue concern for their families.
On the subject of schools, Steward said that until quite recently, while Afrikaners had good Boland schools, English speakers wanting a private education for their children had to send them to Cape Town – but with schools like Bridge House and Somerset House now getting excellent academic results, this is no longer necessary.
The move by young executives to outlying areas, said Steward, is bound to enhance property values in these rural areas.
“The danger, of course, is that the intrinsic character of the areas could be spoilt by ongoing development but SAHRA (the SA Heritage Resources Agency) seems to be doing a good job ensuring that our legacy is not downgraded and it has to be accepted that economically most wine estates do need the help of ancillary businesses.”
For further information contact Lanice Steward on 021 671 9120 or email lanice@anneporter.co.za.
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06 February 2009, 08:38:39
Apartheid era documentation still has power to embarrass
“Only persons of European descent shall be entitled to own the said land and only such persons shall be entitled to reside therein, but this condition shall not apply to domestic servants of the occupier.”
This clause is still found in transfer deeds published during the earlier apartheid era – and it has been known to cause estate agents considerable embarrassment, especially when they are selling to the growing number of upwardly mobile buyers from previously disadvantaged buyers.
“It needs to be stressed,” says Lanice Steward, MD of Anne Porter Knight Frank, “that a later court ruling made all such clauses of this kind totally invalid. If you find this clause in the deed of a property you can safely ignore it. It may have historic interest but it has absolutely no standing in law.”
For further information contact Lanice Steward on 021 671 9120 or email lanice@anneporter.co.za.
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06 February 2009, 08:37:24
Rawson says bond originators must stay
Recent suggestions that bond originators no longer have a role to play in the residential property market are, in his view, way out of line, says Bill Rawson, Chairman of Rawson Properties.
Reviewing the background to this issue, Rawson said that in “the old days” the building societies charged fixed interest rates depending on the size and value of the bond. Later, to capture strong clients, the banks began to give discounts on the interest raised in excess of 2% in some cases.
“These discounts began to cover as much as 20% of the interest that applied when the rates were lower and even today they are often in the region of 13%.”
“Instead of attacking the supply channel surely this is where the banks should look to increase their profitability.”
Previously, said Rawson, the banks had welcomed originators because, in doing much of the investigatory work, they saved the banks time and money.
However, they also sharpened up the competition for bonds and prevented banks being able to charge whatever they deemed to be the going rate. This, he said, may be a factor causing the banks to rethink their policies regarding originators.
“In the old days possibly half those holding bonds were paying at a rate fixed by the first bank to whom they applied. This rate could be 0,5% or 1% higher than what another bank would charge. Are the banks, by shunning originators, hoping to revert to this situation?”
For further information contact Bill Rawson on 021 658 7100 or email bill@rawsonproperties.com.
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06 February 2009, 08:33:20
Rawson calls for tax rebates on new housing developments
Trevor Manuel’s stimulatory tax incentives for companies redeveloping disadvantaged urban areas are widely acknowledged to be exactly what SA developers need – and they have great spinoff benefits for the areas where they go into action.
Why not now extend the offer to those involved in new housing, especially if it is targeted at the lower income groups, asks Bill Rawson, Chairman of Rawson Properties.
“Something,” he said, “has to be done to make it possible for residential property developers who right now are quite simply unable to get 90% of their schemes out of the ground.”
The existing 2% tax rebate on staff housing, said Rawson, is welcome but it is insignificant in a scenario where well over one million new homes are urgently needed.
Rawson said that the government will this year find that they are unable to collect the large VAT and profit tax sums that were previously generated by the development industry. If, however, Manuel decided to reinvest some two-thirds of the 14% VAT that his department collects on house sales in the form of a 10% first year rebate to developers followed by a 5% annual depreciation allowance, he would end up far better off financially.
“Initially,” said Rawson, “the units could be rented. Two to five years later they could be sold with the usual VAT arrangement – so the treasury would benefit in the long run.”
As in the urban renewal programme, said Rawson, specific areas could be demarcated for this type of tax assistance.
Asked whether such a scheme should apply across the board or only to big projects, Rawson said he would like to see it made available to the two or three man development teams who have performed so well in the past and who are now often reduced to doing maintenance and small extensions.
“It has been said so often that people are tired of hearing it but remains true that rand for rand spent no other industry employs as much labour as building,” said Rawson.
An incentive scheme of this type, he added, would appeal to the banks who would recognise that the rebates make such developments far less risky.
For further information contact Bill Rawson on 021 658 7100 or email bill@rawsonproperties.com.
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06 February 2009, 08:31:39
Another recommendation to buy into sa residential property now
The first half of this year will be a good time to buy residential property, says Tony Clarke, Managing Director of Rawson Properties.
Repeating this message for the third time in as many weeks, Clarke said,
“While it is true that none of us can tell when the market will bottom out, there is also a danger that those who wait too long will miss the boat and find themselves buying on a rising market. Right now, in my opinion, the buying opportunities are excellent and although small drops are still possible, these do not alter the basic message.”
The National Credit Act, redundancies and the general reluctance by the banks to lend money, said Clarke, have caused house prices to drop across the length and breadth of South Africa – with the result that there are now excellent bargains available. Sellers, said Clarke, are throwing in a great many extras, their plasma screens, electrical appliances like refrigerators, certain furniture, jungle gyms and sports equipment and even in one case a small motorcar in order to achieve a sale, whereas in the old days they most certainly would have taken these goods with them.
The predicted falls in the interest rate, said Clarke will enable more people to get onto the homeowners ladder than was possible in 2008 but, he warned, those contemplating a buy, especially those doing so for the first time, should study carefully the methods and tactics of that “small handful of well-informed investors” to whom he has referred on several occasions in press releases.
“What characterises these intelligent buyers is that in every instance they do their homework before they make a decision,” he said. “They are very definitely not risk takers and they get all their information lined up. What is more, they accept that they will probably have to hold onto the property for five to ten years because it usually takes that amount of time for residential property to show a really significant profit.”
Above all, he added, they take great care never to overstretch themselves financially, always making allowance for interest rate rises within the next decade, even if these seem unlikely at present.
“If we have learnt anything from the global recession,” said Clarke, “it should be that it definitely does not pay to be overexposed. Markets, we now realise as never before, do not always rise and interest rates can be counted on to fluctuate at some stage.”
Right now, said Clarke, there are still far too many South Africans in all income categories who are overexposed to debt.
Shrewd buyers, said Clarke, buy first of all to meet their own clearly defined goals, e.g. to be close to a school, to have more space or to be able to establish a work from home facility, but they always bear in mind at the same time, how the property will appear to subsequent buyers, those whom they hope will one day take over from them.
Very often, he added, dedicated to being homeowners, they will often buy in the less expensive area and upgrade a home rather than rent in a more fashionable district so as to gain the right social image. They know that, if they take the former course, they will accumulate a profit which will later enable them to move up socially.
Shrewd buyers, said Clarke, before making any decision, go through a long process of “educating themselves” about the market in which they are interested. They visit show houses in the area, they go to the Deeds Office and consult with non-aligned, independent agencies and mortgage originators to find at what prices homes in the area are sold. They are, in addition, adept at using the internet for research on residential data, both national and local which can help so greatly in setting current values.
Also, said Clarke, they chart the historic capitalisation rates of properties in their area over short, medium and long term periods and they make a point of checking out what major future developments are planned there. They will, he said, familiarise themselves with the ancillary attractions in the area, schools, transport, retail centres, sports clubs churches, synagogues and temples.
“All of this research takes effort – but time and again we have seen how it really does pay off,” said Clarke. “It is regrettable that too many buyers still rely on bar talk and the advice of one or two good friends who probably got lucky a year or two before and now feel they understand the market better than most.”
Those reluctant to do the necessary research work, said Clarke, should either avoid the property market or team up with a really reliable agent, one dedicated to building up a long term relationship rather than achieving a quick one-off sale.
For further information contact Tony Clarke on 021 658 7100 or email tony@rawsonproperties.com.
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06 February 2009, 08:29:19
Advice from a property professional when selling a home, be open and transparent about its faults
One of the best pieces of advice an estate agent can give to a home seller is, “declare openly and upfront all the defects and faults in your property”.
This is the counsel of Tony Clarke, MD of Rawson Properties.
“I would in fact go further,” said Clarke. “I would advise sellers to ensure that in the sales mandate that they sign with the agent every one of the defects and deficiencies of the property is listed in writing.”
This, said Clarke, could be useful at a later stage if it became evident that the agent had not been completely open with prospective buyers.
In the majority of cases, said Clarke, where the fault becomes evident after a sale, the owner will often himself have been unaware of it.
In one case Rawson Properties sold a home with a patio gas braai which had been disconnected for many months. On moving in the new owner linked the braai to a large gas cylinder and invited his friends to a housewarming braai – but a small explosion shortly after the gas was turned on alerted him to the fact that there was a serious leak in the system.
“The previous owner, on hearing this, was distraught,” said Clarke, “because he realised that he could in fact have put the whole family at risk – but it was quite clear to us that he had long since forgotten that his braai was actually out of action. Nevertheless, had anyone been seriously hurt or killed, a case of culpable homicide would have been investigated.”
Regrettably, said Clarke, there are cases of deliberate non-disclosure – and he warned that this is a legal offence which can result in penalties and even a cancellation of the sale.
“In my experience,” he said, “non-disclosure is usually the result of the seller being in financial difficulties and wanting a quick sale. However, it has also been my experience that revealing the relatively few negative aspects of a property upfront very seldom causes the buyer to walk away, especially if the seller and buyer agree to share the cost for their repair, during the negotiating phase of the sale.”
Where a defect has already been treated by the seller, it is, said Clarke, wise to draw this to the attention of the buyer and to present him with the receipts for the work done. In many cases if the problem comes up again, it will be covered by a warranty and the contractor/artisan responsible for the repair can be called in to put it right. .
Unreliable hot water geysers, erratic electricity networks, damp patches and leaky swimming pools are probably the most common problems encountered by new owners.
In certain court cases alleging non-disclosure, said Clarke, the seller and/or his agent had been able to show that the defect was “patent”, i.e. was there for all to see and was not in any way hidden. For example, if the ceiling was collapsing, this would be evident to anyone coming into the room. In such cases, even though the fault was not declared upfront, the seller and his agent could be exonerated of all responsibility.
Clarke said that these comments were important because there is still a widely held misconception in South Africa that the voetstoots clause frees the seller from any further responsibility once the property has been transferred.
“This is simply not true,” said Clarke. “If the seller is guilty of deliberate non-disclosure, the law will come into force on behalf of the buyer.”
For further information contact Tony Clarke on 021 658 7100 or email tony@rawsonproperties.com.
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06 February 2009, 08:27:36
Cape Coastal Properties Now At Bargain Prices
Although he has, he says, “grown a little weary” of the current trend among estate agencies to claim that their area is bucking the trend and resisting price falls better than most, he himself cannot resist at this point in the property cycle giving one piece of advice, says Tony Clarke, Managing Director of Rawson Properties.
“Have a good look at the small Cape coastal properties,” said Clarke. “Right now there are many incredibly good bargains to be had here.”
The current low prices, he said, have often come about as a result of cash-strapped people deciding that they must for the next few years do without a holiday home or that they should defer their retirement /opting out plans.
“Obviously all coastal properties have been affected but those in truly rural areas like Betty’s Bay, Kleinmond, Gansbaai, Port Owen and Saldanha have seen prices drop more radically than the better established areas such as Hermanus. (Rawson Properties has just sold a new franchise in Vredenburg/Saldanha to Quinton and Yvette Dawson.)
Clarke said that anyone buying in the small coastal areas should make absolutely certain that he can find a tenant. On that basis, he said, such an investment four to eight years from now could turn out to be very profitable.
“I believe that the potential of our small coastal areas is still to be realised. Although it could take five years for the major western economies to recover fully and obviously this will effect our property market, the local property industry is clawing its way back month by month and by mid-2010 values should reach 2001/2004 levels in real terms.”
Clarke said that SA has shown itself to be capable of avoiding the full scale recession now ruining confidence in the USA, UK and Europe.
“This is good news for property investors because even a moderate, smallish growth rate is always reflected in the property sector.”
For further information contact Tony Clarke on 021 658 7100 or email tony@rawsonproperties.com.
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06 February 2009, 08:17:33
Arno le Roux, owner of the new Aida franchise in Alberton, has proved doomsayers and critics spectacularly wrong and got off to a flying start in his new estate agency, which he financed himself.
Le Roux knocked on several doors to obtain finance and although his business plan was deemed excellent, in the prevailing market conditions he met with no success. “In the end I used what I had – ambition and two credit cards – to start up the franchise,” he says.
Then in the space of two months he sold 10 properties, three of which have already been registered. Le Roux, who has extensive experience in the financial and investment sectors, says he has learned to ignore financial predictions and reckless news statements about the property market, unless made by people who sell property for a living.
“Many people have opinions about the health or otherwise of the property industry, but opinions have never been knowledge,” he says. “The cornerstone of our economy is property and property ownership, whether residential, industrial, mining, or other commercial property. People are still buying and people are still selling, and will do so in any market.”
He adds that during his stint in the investment world, more and more of his local and international clients chose to buy property rather than invest in other portfolios “And at no stage could I fault their planning since their choice mostly outperformed other investments over five, 10 and 15 years.”
This experience brought about a career change for Le Roux, who joined an international property brand four years ago and opened his Aida franchise late last year.
“As to the future, I believe in the next five to 10 years the bigger brands will play a huge role while, at the same time, agents will be moving away from large and impressive estate agency offices to home-based offices. The challenge for the bigger brands will be to dominate commercial and residential property portals on the web,” he says.
Le Roux’s franchise rights cover the greater Alberton area where average prices range between R740 000 and R3m.
Issued by Aida National Franchises
Aida head office: 012 682 9600
Contact: Young Carr
Aida Alberton: 082 687 2733
Contact: Arno le Roux
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05 February 2009, 08:14:33
While the outcome of April's Monetary Policy Committee meeting is likely to be a cut of 50-basis-points, the consensus is for South Africa's repo rate to be cut by 100-basis-points to 10.5 percent on Thursday, a survey of leading economists by I-Net Bridge shows.
Of the 14 economists polled, nine are expecting a 100-basis-point reduction, while four are expecting a cut of 50-basis-points. One outlying economist has gone as far as predicting a full 150-basis-point cut.
The South African Reserve Bank's (SARB's) Monetary Policy Committee makes its final decision at around 3.10pm on Thursday.
However, according to 12 economists polled, the consensus forecast is only for a 50-basis-point cut in April. Four economists predicted a fall of this increment after the cut of 100 seen in February, while four see a 50-basis- point cut following 50 in February. Another four see it falling another 100- basis-points after the cut of 100 in February, but they are in the minority for April.
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04 February 2009, 15:42:55
South Africa remains a popular choice for Germans who are looking to relocate to warmer climes, says Dina Porteous, area principal in the Margate area for Pam Golding Properties.
Yvonne Booysen, manager of PGP Margate's rental division, together with Gaby Moessner, manager of the Pam Golding Property group's German office, recently attended the high-profile Süd-afrika Tage 2009 show in Germany, an event which attracted high net worth investors and incorporated travel, trade and business meetings. The latter included a business conference highlighting investment opportunities in Southern Africa.
"Our exhibit was a focal point of the expo," says Porteous, "attracting a great deal of interest from visitors. It is abundantly clear that what sells South Africa abroad — and in Germany — is our abundance of sunshine coupled with our friendly people and beautiful homes including those in our portfolio of properties which we marketed over there."
Süd-Afrika Magazine, a publication which focuses on Southern Africa and is a popular subscription magazine in Germany, hosts this annual show. Three locations in various parts of Germany are selected by the publishers of the magazine and they then invite their subscribers and the general public to attend these annual exhibitions, offering them the opportunity to have one-on-one contact with exhibitors.
This year the show was held in Mainz on the outskirts of Frankfurt, in Neuss in the Koln, Dusseldorf region and in Hamburg. Each show was a two-day event linked to food, music and general information on Southern Africa. The exhibitors ranged from tour operators and immigration experts to arts and crafts specialists, 4 x 4 trails, luxury hotels and wine farms.
Shows based around a SA theme
"The shows are based around a South African theme and specially prepared lunches and dinners form part of the event," says Porteous. "Guests are invited to experience a 'taste' of Africa with a selection of South African dishes on offer. Boerewors was on the menu at the dinner in Hamburg — not quite the same as the boerewors back home but close."
"This is a discerning market and overseas buyers are extremely well informed about the South African property market — in particular regarding market related prices," comments Gaby Moessner. "Those visiting the PGP stand were mainly between 40 and 55 years of age and focused on acquiring property as a business or as a second home for holidays — also with rental income in mind. The advantage of acquiring lock-up-and-go apartments and homes was also a major draw card among those seeking property in South Africa. Of interest were homes across the board and priced from as little as R1-million to over R5-million.
"Many clients who had previously been in contact with our German office and were in the process of planning a trip to South Africa during 2009 took the opportunity to talk to us in person and discuss their investment ideas in detail. We also saw a large number of new clients planning to invest in South Africa who asked us for advice regarding the best areas to consider taking into account price, climate and their business considerations. The process of making such an investment decision often takes up to 12 months and this expo was the ideal platform to discuss matters in detail," says Moessner.
"There is still keen interest from the German market regarding the purchase of property in South Africa — surprisingly so at a time when the global economic climate is volatile and occupies almost every news bulletin, both in Germany and elsewhere on the globe," says Porteous. "Positively, the crime issue does not feature too much in conversations about day to day life in South Africa."
The Western Cape remains the most popular relocation choice
Porteous says potential German buyers in general prefer standalone homes rather than those in golfing or townhouse developments. "In Germany space is at a premium so this is a top priority when it comes to buying property in South Africa. The Western Cape — including the Overberg region — remains the most popular relocation choice with bed and breakfast properties a fashionable choice for the younger generation who wants to generate an income from an investment in South Africa. This is followed by the Eastern Cape — with the focus on natural, unspoilt environments and value for money. The hot climate in KwaZulu-Natal often deters German buyers from purchasing property in this region with the climate in the Western Cape more suited to their needs.
"It was refreshing to gain another perspective of South Africa from those in another country such as Germany and reinforced how lucky we are to live in this delightful, interesting and complex country," adds Porteous.
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04 February 2009, 15:42:11
South Africa remains a popular choice for Germans who are looking to relocate to warmer climes, says Dina Porteous, area principal in the Margate area for Pam Golding Properties.
Yvonne Booysen, manager of PGP Margate's rental division, together with Gaby Moessner, manager of the Pam Golding Property group's German office, recently attended the high-profile Süd-afrika Tage 2009 show in Germany, an event which attracted high net worth investors and incorporated travel, trade and business meetings. The latter included a business conference highlighting investment opportunities in Southern Africa.
"Our exhibit was a focal point of the expo," says Porteous, "attracting a great deal of interest from visitors. It is abundantly clear that what sells South Africa abroad — and in Germany — is our abundance of sunshine coupled with our friendly people and beautiful homes including those in our portfolio of properties which we marketed over there."
Süd-Afrika Magazine, a publication which focuses on Southern Africa and is a popular subscription magazine in Germany, hosts this annual show. Three locations in various parts of Germany are selected by the publishers of the magazine and they then invite their subscribers and the general public to attend these annual exhibitions, offering them the opportunity to have one-on-one contact with exhibitors.
This year the show was held in Mainz on the outskirts of Frankfurt, in Neuss in the Koln, Dusseldorf region and in Hamburg. Each show was a two-day event linked to food, music and general information on Southern Africa. The exhibitors ranged from tour operators and immigration experts to arts and crafts specialists, 4 x 4 trails, luxury hotels and wine farms.
Shows based around a SA theme
"The shows are based around a South African theme and specially prepared lunches and dinners form part of the event," says Porteous. "Guests are invited to experience a 'taste' of Africa with a selection of South African dishes on offer. Boerewors was on the menu at the dinner in Hamburg — not quite the same as the boerewors back home but close."
"This is a discerning market and overseas buyers are extremely well informed about the South African property market — in particular regarding market related prices," comments Gaby Moessner. "Those visiting the PGP stand were mainly between 40 and 55 years of age and focused on acquiring property as a business or as a second home for holidays — also with rental income in mind. The advantage of acquiring lock-up-and-go apartments and homes was also a major draw card among those seeking property in South Africa. Of interest were homes across the board and priced from as little as R1-million to over R5-million.
"Many clients who had previously been in contact with our German office and were in the process of planning a trip to South Africa during 2009 took the opportunity to talk to us in person and discuss their investment ideas in detail. We also saw a large number of new clients planning to invest in South Africa who asked us for advice regarding the best areas to consider taking into account price, climate and their business considerations. The process of making such an investment decision often takes up to 12 months and this expo was the ideal platform to discuss matters in detail," says Moessner.
"There is still keen interest from the German market regarding the purchase of property in South Africa — surprisingly so at a time when the global economic climate is volatile and occupies almost every news bulletin, both in Germany and elsewhere on the globe," says Porteous. "Positively, the crime issue does not feature too much in conversations about day to day life in South Africa."
The Western Cape remains the most popular relocation choice
Porteous says potential German buyers in general prefer standalone homes rather than those in golfing or townhouse developments. "In Germany space is at a premium so this is a top priority when it comes to buying property in South Africa. The Western Cape — including the Overberg region — remains the most popular relocation choice with bed and breakfast properties a fashionable choice for the younger generation who wants to generate an income from an investment in South Africa. This is followed by the Eastern Cape — with the focus on natural, unspoilt environments and value for money. The hot climate in KwaZulu-Natal often deters German buyers from purchasing property in this region with the climate in the Western Cape more suited to their needs.
"It was refreshing to gain another perspective of South Africa from those in another country such as Germany and reinforced how lucky we are to live in this delightful, interesting and complex country," adds Porteous.
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04 February 2009, 15:35:39
Another Test
Another Test
Another Test
Another Test
Another Test
Another Test
Another Test
Another Test
Another Test
Another Test
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04 February 2009, 15:35:16
Burgundy Estate is an entirely new suburb which is building its own distinct identity on one of the last remaining valuable pockets of land bordering Durbanville's wine farms and the historic De Grendel wine estate.
For a limited period of time, Better Homes is exclusively offering to pay a 15 percent deposit on behalf of all buyers purchasing a family home within the estate.
Ranging from R1.8-million to R2.3-million you only need to qualify for an 85 percent bond to secure one of these upmarket homes, and there are no transfer duties payable.
The brand new three- and four-bedroom homes are available for immediate occupation. Plots range from 520m² to 620m² and homes from 170m² to 280m².
Just 20 kilometres from Cape Town CBD and 10 kilometres from Century City, the estate will be completely self contained and will have its own junior and senior private schools; a shopping centre; mashie golf course; as well as other recreational facilities. There will also be proactive security measures in place.
For more information on this special and other Burgundy Estate properties please contact Jolene Alterskye +27 82 447 6169 or email info@burgundyrealestate.co.za.
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04 February 2009, 15:34:33
Burgundy Estate is an entirely new suburb which is building its own distinct identity on one of the last remaining valuable pockets of land bordering Durbanville's wine farms and the historic De Grendel wine estate.
For a limited period of time, Better Homes is exclusively offering to pay a 15 percent deposit on behalf of all buyers purchasing a family home within the estate.
Ranging from R1.8-million to R2.3-million you only need to qualify for an 85 percent bond to secure one of these upmarket homes, and there are no transfer duties payable.
The brand new three- and four-bedroom homes are available for immediate occupation. Plots range from 520m² to 620m² and homes from 170m² to 280m².
Just 20 kilometres from Cape Town CBD and 10 kilometres from Century City, the estate will be completely self contained and will have its own junior and senior private schools; a shopping centre; mashie golf course; as well as other recreational facilities. There will also be proactive security measures in place.
For more information on this special and other Burgundy Estate properties please contact Jolene Alterskye +27 82 447 6169 or email info@burgundyrealestate.co.za.
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04 February 2009, 09:10:03
Projects worth R1-billion at the Coega harbour have been put on hold due to the global economic crisis, the Eastern Province Herald reported on Tuesday.
The crisis has led to a dramatic fall in world shipping volumes.
While volumes through all of South Africa's harbours have dropped, January volumes at Coega were down 44 percent down on the same month last year, the newspaper said.
While the National Port Authority told the Herald that no jobs would be lost because of the postponements at Coega's new deep-water port of Ngqura, several key contracts — which would have been a boost for the Eastern Cape economy would not be awarded.
Also, the NPA said staff lost through attrition would not be replaced.
However, Transnet told the newspaper that development at Ngqura was on track and that the port would be ready for the official opening later this year. This was in spite of the fact that several projects involving Ngqura had been dropped.
These included the construction of a administration building, the expansion of the container quay and a tug jetty.
However, none of the postponed projects had yet gone out to tender.
Infrastructure projects already under way, including the erection of six massive cranes, the port control building and the port entrance plaza, would not be affected.
A possible positive spin-off for Ngqura from the crisis-hit world maritime trade could be that major shipping lines would be looking for ports in which to "park" under-utilised or unused vessels, the Herald reported.
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02 February 2009, 10:41:27
The prime lending rate is expected to end 2009 at 11 percent, Nedbank Group's economic unit said on Friday.
The prime rate presently stands at 15 percent.
Nedbank said credit figures released earlier on Friday — along with economic data released earlier this week — had boosted the case for a more aggressive interest rate cut at next week's Monetary Policy Committee meeting.
"Recent releases seem to confirm that the manufacturing, mining and retail sectors are all in recession, while inflationary pressures at both the producer and consumer level are receding fast," it said.
Furthermore, the global economy's woes had intensified, which would add to deflationary pressures and the possibility of a more protracted slowdown in South Africa.
"Given the lag between loosening monetary policy and the impact on the real economy, the SA Reserve Bank will probably opt to act more aggressively in the early part of the year, cutting rates by 100-basis-points in both February and April before reverting to 50-basis-point cuts in later meetings," Nedbank said.
Earlier the SA Reserve Bank released data showing that private sector credit extension — or credit growth — eased for a second consecutive month to 14.04 percent annually in December from 15.30 percent the previous month — an indication that the general level of credit extended to the private sector was responding to the elevated interest rate environment.
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30 January 2009, 08:31:44
Situated within the gated Summer Field security estate, the Summer Place development offers affordable, quality homes for first-time buyers in convenient Midrand.
Christelle Maritz of marketing agency Homenet VWB says that a number of factors combine to make Summerplace an ideal platform for those starting out on the property ladder.
The sectional title development consists of 138 units of which 80% have already been sold. Construction is almost complete and occupation is expected to take place towards the end of February.
Summer Place is centrally situated between Johannesburg and Pretoria near Samrand and is close to Centurion and Midrand central as well as the N1 and N28 freeways, thus enabling easy access to a number of work nodes.
The area is fully serviced and the Marylone Mall and Mall @ Reds as well as a number of other retail outlets, entertainment nodes and schools are within easy reach.
At Summer Place, buyers have four property types to choose from, some of which include loft and patio options. Kitchens come complete with granite tops and built-in stoves.
Residents can also lock up and go, safe in the knowledge that their properties are secure thanks to the 24-hour controlled access. A clubhouse, carports, tennis court, gazebo, pool and green communal area with walkways will also be available for residents’ use.
Finishes are upmarket and R10 000 secures. Prices start from R395 000 for a bachelor studio to R799 000 for a two-bedroom, two-bathroom apartment.
Says Maritz: “Summer Place has attracted a lot of interest. It’s perfect for the entry-level buyer and can accommodate starter families too. Demand for this type of accommodation is high as evidenced by the large number of units already sold.”
ISSUED BY HOMENET
FOR MORE INFORMATION CALL
CHRISTELLE MARITZ ON
012 661 8345 OR VISIT
www.vwbhomenet.co.za
Affordability and a convenient location are attracting buyers to the Summer Place development in Midrand, which is being marketed by Homenet VWB.
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30 January 2009, 08:29:36
Prestigious Awards To Madison Property Fund Managers
Madison Property Fund Managers has been selected by the judging panel of the independent research organisation, CRF South Africa, as the runner up for the best managed company in the SA property sector as part of CRF SA’s Leading Managers annual project.
In addition, the company’s three Executive Directors, Marc Wainer, Wolf Cesman and Mike Flax, have been chosen as the runners-up in Leading Managers’ South Africa’s Best Executive Management Team of 2008.
Samantha Crous, General Manager of CRF South Africa, which runs the Leading Managers project each year, said that her company, working in ten different countries worldwide has, since its formation 18 years ago, established a reputation as a pioneer in researching HR and management best practice.
“There are always many rating agencies assessing companies’ current financial positions and prospects but our Leadership Benchmark goes further: we try to get clarity on the softer, less obvious issues such as the company’s corporate governance policies and sustainability practices, and we endeavour to dig out the real facts on which the management’s reputation – or lack of it –is based.
“Our own reputation now is such that, if we commend a company, its image and shareholder relations will be significantly enhanced.”
The assessment, said Crous, is a three phase operation. Initially the company’s managers are asked to respond to a detailed online questionnaire. This information is then monitored by experts and used by a journalist as a basis for interviews with the company’s managers, the object of which is to check its veracity and to find further information.
“Then, in the third phase, a panel of judges – in this case made up of the SA Institute of Directors, the SA Institute of Management, the Institute of People Management, the Business Women’s Association, the Gordon Institute of Business Science and the Afrikaanse Handelsinstituut – decide on the winners.”
In Leading Managers’ latest survey 50% of some 300 companies invited to participate in this research were assessed. The research, said Crous, acts as an independent ‘audit’ of best practice and if successful, an all important independent third-party endorsement of the practices affecting key stakeholders. The findings appear in CRF’s official publication, “Leading Managers in SA” and are available online. Twenty nine companies made it into “Leading Managers” this year.
Mike Flax, one of the successful Madison director triumvirate, said that in the long run a company is only as good as its employees and the award is, therefore, in effect to the whole staff.
Asked what factors might have impressed the judges, Flax said that the directors of Redefine, Apex-Hi and Madison can take credit for being some of the SA property industry’s leading innovators.
“At Apex-Hi Wolf Cesman and Marc Wainer created for the first time the three categories of securities, high, medium and low risk, which have proved so popular with investors. It was they, too, who at Redefine, created the hybrid model in which investments in listed funds are combined with physical property – and this opened up many opportunities. At Madison we broke new ground by structuring an asset manager like a loan stock company and at Redefine we were among the first SA companies to buy into offshore listed property opportunities.”
With the proposed merger of Redefine, Apex-Hi and Madison now being taken forward along the lines of the model used previously by Flax at Spearhead Property Holdings, Redefine, said Flax, will again be breaking ground because the enlarged company, with over R19 billion assets, should qualify for the JSE Securities Exchange Top 40 Companies’ group and will be big enough to be included in several international indices.
The forthcoming merger, said Flax, has already received the initial approval of the majority of the shareholders in all five shareholding categories as well as the go ahead of the directors of the companies concerned. The new company and its management, he said, will more than ever before, be able to align its interests with those of its shareholders. (The official Redefine release on the merger also lists higher levels of attraction for international investors, easy access to capital at competitive rates, cost savings and generally improved competitiveness as additional advantages.) The Redefine directors have predicted that all shareholders will be better off as a result of the merger, which is expected to take effect from the 1st June.
In Madison itself, said Flax, despite the great difficulties of 2008, a very competent development team emerged and this will definitely be of great benefit to Redefine. Looking ahead, he said, the Madison team will also play an important role in the new offshore investment Phoenix Fund, which is about to raise US $200 million to buy into offshore property opportunities (both listed companies and physical properties). Right now, said Flax, there are some prize assets trading at greatly discounted prices.
Within two to three years, said Flax, offshore holdings could comprise 30% of Redefine’s assets, making it the significant player on the international scene that its directors have always said was one of their aims.
For further information contact Mike Flax on 021 425 1000 or email mflax@madisonproperty.co.za.
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29 January 2009, 14:31:44
Insights into the latest report released by the South African Property Transfer Guide (SAPTG) suggest that there is hope for the residential property market in the near future and that the challenging conditions experienced across the South African real estate market over the last two years will improve in 2009…
A leading marketing insights company, Knowledge Factory, has released a report based on the SAPTG property sales data across all major provinces in South Africa over the past five years. Entitled 'Property Sales Data 5 Years', the report presents an overview of historical trends and provides a comparative analysis of sales in the different provinces calculated over this period according to their sale dates. Sales valued below R100 000 and above R19-million as well as those to and from companies as well as government departments were excluded from the analysis.
"Affordability issues, which have hamstrung many sales from being concluded, will gradually improve during 2009 and 2010," argues Dieter Deppisch, SAPTG national training manager and data specialist. "While we have welcomed the exacting requirements of the National Credit Act, it has made it more difficult for agents to find qualified buyers. As a result consumer sentiment and confidence levels dropped significantly over the past 24 months. With lower inflation as well as interest rates and a stable local macro-economy we believe that this sentiment will soon change for the better".
Coast trumps inland regions
The report shows that coastal regions, such as the Eastern Cape, Western Cape and Kwa-Zulu Natal, recorded the highest sales volumes between 2004 and 2006. In general terms coastal regions have held up better than their inland counterparts in the current property market downturn. While there is no definitive reason for this, Deppisch believes that this is due in part to 'semi-gration'.
"Coastal regions — especially smaller areas such as East London, The Garden Route, The South West Coast and Hermanus — are viewed by many as South Africa’s 'retirement villages'," Deppisch observes, "and, typically, those who can afford to purchase homes there a few years before they retire will do so. The typical buyer demographic is a higher-income earner who finds it easier to qualify for such purchases".
In addition to semi-gration, foreigners are also a driving force when it comes to the purchase of property in the coastal regions. While the overall volume of South African property bought by foreigners is relatively small — anecdotal evidence suggests between five and 10 percent — Deppisch notes that these sales do account for a larger percentage of the overall value because foreigners tend to go for the higher priced properties. "It’s not unusual for them to buy a place in Mossel Bay or Plettenberg Bay for between R4-million and R6-million whereas the South African holiday home buyer is more likely to look to the R1,5-million to R3-million range," he confirms.
Fairing the best by declining the least
While the report reveals an overall drop in sales across all the provinces of 36 percent between 2007 and 2008, KZN and Limpopo — whose decline rates were approximately 29 percent each — fared a lot better than Gauteng and the North West, both of which experienced a 39 percent decline in volume of sales. Likewise, when comparing the total value of sales across the provinces, the Northern Cape and Limpopo, again, showed the least decline while Gauteng and the Western Cape fared worst.
"One must bear in mind, however, that the volume of trade in Limpopo is relatively low with buying patterns being influenced by platinum mining and the agriculture sector," explains Deppisch. The SAPTG report reveals that during 2007 in Limpopo there were only around 7500 transaction sales between full and sectional title properties and in 2008 there were just over 5000 transactions. "This is very small in comparison to Gauteng and the Western Cape," clarifies Deppisch, "whose total value of transactions during the same period, despite their higher decline rates, was about 10 fold greater. These two provinces accounted for 63 percent of total national sales in the past 12 months."
Hang on in there!
Drawing on the wealth of information available through the SAPTG, Deppisch argues that what the South African market has experienced in the past two years has been part of a normal cyclical economic trend and a necessary, if painful, 'correction'. Its effect on the real-estate market was exacerbated by additional negative factors such as high inflation, high interest rates and the turbulence in the world economy. He also cites the general consensus among experts that they have weathered the worst. "We agree with economists who believe that there is going to be a turn-around by the second quarter of 2009," he notes, "on the back of an expected 150 basis points reduction in the repo rate."
He also refers to additional positives that should boost consumer sentiment and increase confidence within the South African economy, such as the fall in the Consumer Price Index (CPIX) inflation and the drop in fuel prices. "This backdrop, together with the fact that a drop in interest rates takes about three to six months to filter through, suggests a turning point in public sentiment towards buying residential property by the third quarter of 2009," he concludes.
For further details about the Report or to find out more about subscribing to the SAPTG — the most comprehensive online source of property data in South Africa — visit SAPTG at www.saptg.co.za or contact Knowledge Factory directly on (011) 445 8100.
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28 January 2009, 14:30:43
Central London residential property, previously often described as one of the three or four leading performers in the world market, has been hard hit by the global recession.
Lanice Steward, MD of Anne Porter Knight Frank, has drawn attention to the latest Knight Frank review which quotes Liam Bailey, KF’s head of residential research, as saying: "Prices for the best properties in the capital are now almost 20 percent below the peak they reached in 2008."
Houses worth over £10-million, said Bailey, are now down only 8.1 percent, but homes costing £1-million to £2.5-million are down 22 percent in value.
Further drops seem likely as the total number of sales for £1-million plus properties is down by a staggering 49 percent. Bailey, in fact, estimates that overall values will fall to 30 percent below the 2000 level — but he does point out that price declines are now beginning to slow.
What does this mean for South Africans?
According to Steward, it means that the next two to three months will offer unprecedented opportunities to buy in London, especially as the Rand has, despite misconceptions on this subject, performed very satisfactorily.
"The Rand stood at R13.6113 to the pound on the 2 January last year," said Steward quoting figures from x-rates.com, "while on 2 January this year it was at R13.5919 — almost exactly the same level as a year ago."
Steward said that she does not expect London property to regain its former values in a hurry — KF estimate that £1-million plus sales will this year be below 3000, the lowest turnover in 20 years — but London property, she said, must still be rated as one of the prime investment avenues in the world and a recovery here, she predicts, will become evident from the end of this year onwards.
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27 January 2009, 08:51:31
The latest FNB Residential Property Barometer on Monday revealed that while some positive signs are starting to emerge in the South African housing market, the global economic crisis keeps the 2009 outlook uncertain.
The overall indicator of the FNB Residential Property Barometer has shown a positive shift, rising from 4.1 in the third quarter of 2008 to 4.6 in the fourth quarter.
"Seasonality may have played a role in the slight increase in Q4 2008 activity level. However, some of the headline trends where seasonality doesn't play as much of a role also showed a quarterly improvement," said John Loos, property strategist at FNB Home Loans.
Three such headline trends showing improvements are the time property remained on the market, the selling price of property, and first-time entrants into the market.
The length of time property remains on the market has shifted. From a peak of 20 weeks and 1 day, Q4 2008 saw the average time on the market fall significantly to 15 weeks and 3 days, by far the most significant drop since the Barometer's inception back in 2004.
In addition, a slightly smaller percentage of sellers had to drop their selling price.
From 88 percent in Q3, the percentage of sellers selling at less than asking price declined to 81 percent, the barometer revealed.
First-time buyers were reported to have become a more significant part of the market in the fourth quarter.
As a percentage of total house purchases, first-time buyers made up an estimated 17 percent in Q4 2008, compared with 12 percent in the previous quarter.
However, the buy-to-let market showed no sign of turning for the better. As a percentage of total buyers, buy-to-let buyers made up a smaller estimated 12 percent in Q4 2008, compared with 14 percent in the previous quarter.
But arguably the most exciting news emanating from the Barometer was the estate agents' view that the percentage of sellers selling in order to emigrate had declined significantly from 20 percent in the previous quarter to 14 percent in the final quarter of 2008, this following a steady rise since late 2007.
Should this be the start of a downward trend in emigration selling, it would not only provide support for the property market but for the economy as a whole.
Loos said that he believed that over time minority groups should come to terms with the leadership change, something which is a normal part of democratic societies, and he believed that this year may even see a surge in expats returning to South Africa, accompanying a drop in emigration, driven by a very weak job situation in many developed country as the economic crisis deepens.
"Therefore, the overall picture of the FNB Residential Property Barometer shows early signs of property demand strengthening. The household sector's debt situation has begun to improve as interest rates start to decline and the debt-to-disposable income ratio follows a downward path," said Loos.
"However, we don't expect any fireworks, as the big negative factor, that will work against the positive impact of lower interest rates, for residential property in 2009 will be the weak global economy and its negative impact on economic growth via SA's export-driven sectors."
While the residential and new mortgage loan demands are expected to recover gradually as 2009 progresses, national house price inflation is only expected to resume in 2010, concluded Loos.
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21 January 2009, 11:45:20
South African residential property put in its worst performance in 12 years, the Standard Bank said on Tuesday as it released its median house price index.
The index recorded a decrease of 3.1 percent year-on-year in December, bringing the average annual decline in 2008 to 0.3 percent, the bank said.
According to Standard Bank, the second half of 2008 showed large swathes of the economy under huge pressure — "economic growth virtually came to a standstill in the third quarter of the year; consumers who had overextended themselves during the good times came under severe financial stress; and the residential property market had its worst performance in 12 years," Standard Bank said.
Furthermore, the international economic environment was in tatters with the industrialised world experiencing its worst recession in almost 80 years, the bank added.
In the early part of 2008 households and businesses suffered from high oil prices, threatening to result in runaway inflation, only for commodity prices to collapse on a grand scale towards the end of the year.
The combination of sharply declining commodity prices and weak demand resulted in inflation falling rapidly in many countries, the bank said.
"Locally the decline was less spectacular, but with inflation peaking in August last year and the outlook for further declines rosy, room was created for the Reserve Bank to cut the repo rate by 50 basis points in December."
Standard Banks said job layoffs were on the increase as businesses found it increasingly difficult to cope given the trying economic and financial circumstances.
"These conditions point toward further strain for the housing market in 2009."
The weakness in the economy was reflected in disposable (after tax) income which advanced by only 0.2 percent in the third quarter of 2008 compared to growth rates of higher than 6.5 percent in 2006 and 2007.
Household savings as a percentage of disposable income had been negative since the beginning of 2006, the bank said.
Furthermore, household debt remained a sizeable burden despite easing since the second quarter last year.
"Clearly, the combination of slow growth, relatively high interest rates, punitive debt levels and still high inflation in a general environment of plunging confidence will impact negatively on many segments of the economy, including the residential property market," the bank noted.
According to Standard Bank, the housing market could not prosper in a weak economy which was still reflecting a rising number of insolvencies and liquidations.
Banks had also reported sizeable increases in bad debt, it said and households currently owed banks an astounding R1.1-trillion of which the bulk constituted mortgage advances.
Over the short term economic conditions were expected to deteriorate further, however, positive developments on the inflation front early this year would lead to further interest rate cuts in 2009, the bank said.
"Standard Bank expects 250 basis points relief this year."
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20 January 2009, 09:33:12
Thousands of homeowners are overpaying on their home loans in an effort to reduce their debt — and many more are expected to keep their monthly repayments up even though they have started to decline with lower interest rates.
Kay Geldenhuys, Manager of Property Financing and Insurance Processing at ooba (formerly MortgageSA), says that clearing home loan debt is currently a popular strategy again amongst homeowners.
"Lots of South African homeowners are worried about an uncertain economic backdrop, nervous about the stock market and just having too much debt so they are dumping excess cash into their bonds.
Paying home loans off quicker
"We've also seen that many homeowners have asked their banks to keep their monthly repayments at the levels they were before the rate cut to pay off their home loans quicker.
"It's a good strategy because many people have got used to paying more and want to keep repayments the same throughout, what is expected to be, a year of rate cuts."
The saving effects from keeping repayments the same are dramatic:
For example, the monthly repayments on a 20-year, one percent below prime, R1-million home loan was R12 800 a month at 14.5 percent. After the rate cut of 0.5 percent in December 2008 the monthly repayments are now R12 440, a fall of R360.
Dramatic savings
"You can ask your bank to keep your repayments at the old level which means you'll be overpaying by R360 a month and saving over R300 000 in interest over the life of the loan.
"You'll also reduce your repayment period by over 2.5 years," notes Geldenhuys.
If rates drop another two percent this year on top of the 0.5 percent in December, monthly repayments will fall to R11 010 a month or R1790 a month less.
If a homeowner keeps his repayments at the level of R12 800, the amount before the rate cuts started, she or he will save a whopping R687 696 in interest and reduce her or his home loan term by over seven years.
Benefits of cash diminishing
Geldenhuys points out that, as interest rates drop this year, the benefits of sitting on cash diminish because interest earned on that money is less.
"Overseas it has become one of the most popular investment strategies right now as money in bank accounts is earning almost no interest. While we don't expect rates to fall as dramatically as they have in, say, the UK or the US we still see them falling.
"This will further underpin the case for investing in your bond as returns on cash deposits fall."
Geldenhuys also said that with stock markets the world over under pressure, investors are looking for certainty.
"If your home loan rate is at 14 percent, putting money into the home loan means you are getting a certain return of 14 percent. And that's a really good return in any economic climate."
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20 January 2009, 08:44:22
Greeff Properties have come up with a first for the Cape estate agency sector that, Chief Executive Mike Greeff believes, will give the company a distinct marketing advantage.
The new innovation is a ten to twelve minute DVD that is shown on the agents’ laptop computers or the home’s TV or LCD screen in every Greeff show house.
The DVD, explained Greeff, sets out to tell the visitor to the show house much of what he or she should know about the area in which house is situated. This in practice means that the DVD deals largely with Cape Town’s southern suburbs, the prime area served by Greeff Properties.
The presentation shows how well these suburbs are served by churches, synagogues and mosques as well as excellent schools, international standard retail centres and restaurants as well as medical and professional services. The video also tries to give the viewer a better understanding of each suburb and the type of homes offered there.
Greeff believes that even people who have lived in Cape Town all their lives will find much useful information on the DVD but it is, he says, primarily aimed at the potential out-of-town or overseas buyer visiting Cape Town and unsure what the Southern Suburbs have to offer.
Agents sitting in on the 28 to 40 show houses on view every weekend will have the DVD and they will be instructed to offer a viewing as many visitors as possible.
“This is just one of the marketing tools that we now employ and find so useful,” said Greeff. “All of them, from our website to our magazine and advertising, I like to think, set us apart from those agents who might be less caring and less conscientious.”
For further information contact Mike Greeff on 021 763 4120 or email info@greeff.co.za.
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19 January 2009, 08:48:45
Redefine Income Fund Ltd. of South Africa offered to buy two property-related companies for 12.3 billion rand ($1.2 billion) in stock. The transaction would be the largest in the country’s real-estate industry.
Redefine, based in Johannesburg, bid for ApexHi Properties Ltd., an investment company, and property administrator Madison Property Fund Managers Holdings Ltd., Chief Executive Officer Brian Azizalohoff said today by telephone. The agreement, announced seven months after the three companies abandoned a merger, would create the biggest company in the industry.
“There are synergies and cost savings,” Azizalohoff said. “It’s a good deal for everybody.”
South African property companies are merging or buying real-estate management companies to attract foreign investors as the industry prepares to introduce real estate investment trusts. Most REITs manage property funds internally.
If the offer is successful, Redefine plans to combine ApexHi’s real estate with its own portfolio, Azizalohoff said. Madison already manages buildings for the other two companies.
Redefine gained 44 cents to 6.9 percent to 6.85 rand, giving the company a market value of 6.1 billion rand. ApexHi’s C-shares fell 10 cents, or 0.7 percent, to 13.70 rand. Madison declined 20 cents, or 3.1 percent, to 6.20 rand.
Holders of ApexHi A-shares were offered 202 Redefine units for every 100 held; ApexHi B-stockholders 246.8 for every 100 held and those owning ApexHi C-units 104 for every 100 shares, the company said in a statement to the Johannesburg exchange. Madison investors will get 90 Redefine shares for every 100 shares they own.
“The enlarged Redefine would be expected to attract interest from a wider group of investors, such as tracker funds and international investors,” the company said. It will also “have greater access to capital markets for funding at competitive rates based on moderate debt and secure cash flows.”
Growthpoint Properties Ltd. is South Africa’s biggest publicly traded real estate company.
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16 January 2009, 14:30:09
Surprisingly, given the dismal conditions currently prevailing in the KwaZulu-Natal property market, sellers still persist in ignoring the advice of property professionals and insist on over-pricing their homes.
Russell Hayes of ERA Unique Westville says while this 'maybe it will sell' mentality may not preclude a sale, it typically delays the process until the price is adjusted to more realistic levels and almost inevitably results in a lower price than the estate agent recommended at the outset.
Hayes makes the comments against the background of recent market analysis by the agency in Westville and Cowies Hill over an eight-month period.
Some of the key take-outs from the research are that:
Unrealistically priced properties are achieving between two and five percent less than ERA’s valuation;
Properties are on the market for an average of 71 days; and
The motivation for selling includes a high quota of potential emigrants (40 percent) and distressed disposals.
Also, sales volumes are down 35 to 40 percent year-on-year and prices achieved are down between 15 to 20 percent year-on-year.
"Conditions therefore remain difficult and this is probably a microcosm of many of the country’s property markets although, obviously, on the ground this will vary from region-to-region," says Hayes.
"However, based on our own backyard as it were, I would anticipate an upturn in late 2009 going into 2010 as the final preparations for the World Cup are put into place.
"That scenario could of course change depending on how far the Reserve Bank is prepared to go in cutting interest rates and the impact of world economic conditions on the South African economy.
"A reduction of two to three percent would be required to kick start the market and given Reserve Bank governor Tito Mboweni’s previous history we can expect only small, incremental decreases in rates. It will take time before the benefits filter through to the property market suggesting no sudden, overnight improvement but rather a steady recovery."
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16 January 2009, 10:08:20
Not until July can homeowners and sellers expect the property market to show any real improvement.
That’s the word from Berry Everitt, MD of the Chas Everitt International property group, who says that while the next six months will present many opportunities for brave investors, and should see at least one more interest rate cut, "I don’t think the general confidence that is vital for a resurgence of the market will take hold until the second half of the year".
He notes that while fuel prices, inflation and interest rates are already declining it takes six to nine months for consumers to really feel the effects of such drops and for household budgets to ease up.
"In the meanwhile, the national Budget in February is unlikely to contain any major personal tax cuts and there is an election to get through in April or May that promises to be full of high drama.
"And on top of that we are likely to see the banks continue to take a hard line on credit and enforce their 25 to 30 percent deposit requirements, making it really difficult for potential buyers to get home loans and effectively putting a lid on the market."
But after June, he says, the picture should change. "Hopefully the fallout from the global credit crisis will have settled by then and a turnaround will be evident in the world’s major economies. SA, too, should begin to experience rising economic growth once more with a concomitant rise in employment that is the surest consumer confidence booster.
"Add to that the mounting excitement as we head towards the 2010 Soccer World Cup and we should start to see a steady rise in real estate sales activity and in property prices."
Absa begs to differ
Jaques du Toit, senior property analyst at Absa, begs to differ. He believes that, despite expectations of lower interest rates and inflation, the outlook for the South African residential property in 2009 will remain bleak.
Du Toit foresees prices in the middle segment of the market to decline by as much as 2.5 percent in nominal terms this year.
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15 January 2009, 14:29:16
Although the main function of a kitchen is to prepare food, modern day kitchens are often the hub of social activity. Functionality is key element to any kitchen design; however, if the kitchen is the heart of the home then you want it to look great too.
Perhaps the biggest kitchen trend is not following a trend at all, but rather being original by creating a space that suits your lifestyle. Kitchen designs and materials are not as easily interchangeable as other décor accessories, so it is important to choose a design that works for you.
Kitchen décor trends have become more personalised as people have embraced the kitchen as an entertainment space. The kitchen has always been an area where people congregate and linger, but this trend has become even more prevalent with the introduction of open-plan living areas. Homeowners want the space to be inviting and reflect their personal style while creating flow between the kitchen and other living places.
Contemporary kitchens are being designed with more than one focal point and several different work stations such as an island which is multifunctional and maximises useable space. Focal points are not only being created in the architectural design elements, but also in the décor by adding contrasting texture and colour to create a striking result.
Cladding has become a growing global trend
SmartStone, a manufacturer of cast stone products, says that adding cladding to a kitchen wall can bring texture and introduce an interesting focal point. Cladding an interior feature wall has become a growing global trend that can complement any style choice. The natural sandstone colouring of cladding can work well in conjunction with other earthy tones as well as bold bright colours. The cladding is virtually maintenance free and will act as a second skin protecting the wall from condensation and mould. Fitting cladding behind your stove hob can act as a splash back which is both functional and aesthetically pleasing. It is important that a suitable sealant is used on the cladding for these types of applications especially where oil can make contact with the cladding.
Although other flooring applications have made a strong appearance in kitchen designs, tiles are still extensively used due to being versatile, hard-wearing and easy to maintain. The key to kitchen flooring is practicality and the surface should be one that can be effortlessly cleaned.
Tiled walls have undergone resurgence in contemporary kitchen styling, from matt stone-like tiles to the ever popular glossy mosaics. Tiles are distinctive and used as decorative accessories rather than a staid obligation. The wide range of tiles available makes it easy to find a style that will meet your requirements.
Property evaluations show that beautiful kitchens add the most value to a property
With a little creative flair, tiles can also be used in some other interesting applications. "A rustic tiled countertop can add character and lend a unique look to your kitchen while still being durable," says James Metcalf, a director at SmartStone. "Tiles or cladding can also be used to add depth and frame a window in much the same way you would a work of art.”
In most cases property evaluations have shown that beautiful kitchens and bathrooms add the most value to your property. With all the creative possibilities available, your kitchen can be an enticing room that exudes elegance and is admired by all.
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14 January 2009, 14:28:17
The price of middle-segment housing in South Africa was up by one percent year-on-year (y/y) in December 2008 from 0.9 percent y/y in November, the country's biggest mortgage lender, Absa, said on Friday. The bank added that in 2008 the average nominal price of middle-segment housing was up by 3.8 percent after rising by 14.5 percent in 2007.
This December outcome brought the average nominal price of a house in this segment of the market to about R971 300 in December, which was 0.2 percent up on November.
Absa said that taking account of the effect of inflation, house prices in the middle segment of the market were down by 9.7 percent y/y in November last year, based on a headline CPI inflation rate of 11.8 percent y/y at the time.
In real terms, house prices in the middle segment were down by 6.7 percent in the first eleven months of 2008 compared with the same period in 2007. Real price growth is based on headline consumer price inflation, which averaged 11.7 percent year-on-year (y/y) in January to November last year.
According to Absa's calculations, nominal annual average house price growth in the middle segment of the market slowed down to below four percent in 2008, which was the lowest price growth recorded since 1996. It was even lower than the growth rate of about five percent registered in 1999 after interest rates were hiked to well above 20 percent the previous year as a result of the contagion effect of the Asian financial crisis.
In real terms, house prices dropped by an average of almost seven percent in the period January to November last year.
The average nominal price of large houses (221m² to 400m²) showed an increase of 5.3 percent in 2008 after rising by 17.4 percent in 2007, while in real terms prices were down by an average of 5.1 percent y/y in January to November last year.
The average nominal price of medium-sized houses (141m² to 220m²) increased by 4.7 percent in 2008, which was significantly lower than the 17.6 percent registered in 2007. On average, prices in this category of the middle segment dropped by a real 5.9 percent y/y in the first eleven months of 2008.
Nominal price growth in respect of small houses (80m² to 140m²) was at a level of 5.3 percent in 2008, compared with 11.4 percent in 2007. The data shows that, in real terms, prices in this category of housing dropped by an average of 5.1 percent y/y in the period January to November last year.
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13 January 2009, 09:38:38
South Africa's central bank will need to loosen monetary policy further if it hopes to revive spending and investment, and further monetary easing is therefore expected in mid-February, says Moody's Economy.com in a research note on Friday.
After this week's abysmal manufacturing release, the Moody's Economy.com economists say that slumping domestic and foreign demand is to blame.
"Despite the weak rand, key export markets are cutting their demand for South African-made goods, while the country's important commodity exports, including precious metals, have also been hit. Meanwhile, elevated interest rates have cooled domestic demand," say the economists.
They add that although input costs are easing, no turnaround in fortunes is expected for the country's industrialists in the medium term.
This comes as the dour manufacturing data dominated the economic releases from South Africa in the past week. Manufacturing output dropped three percent month-on-month and 4.4 percent in annual terms in November. This marked the fifth consecutive month of contraction, while the annual fall was the biggest decline in almost a decade. Factory output accounts for about 16 percent of the economy.
Electricity shortages also remain a threat, according to the economists, and borrowing conditions are still tight. Growth in borrowing by households and companies rose 15.3 percent in annual terms in November, the lowest rate in four years.
"The South African Reserve Bank will need to loosen monetary policy further if it hopes to revive spending and investment," says Moody's Economy.com.
The central bank lowered its key lending rate by half a percentage point to 11.5 percent in December.
"Central bankers had been on a tightening schedule, having hiked interest rates six times since mid-2007. Further monetary loosening is expected through 2009," they say.
The JSE stock index is around 23 percent below its year-ago level and the rand is around 40 percent lower against the dollar.
"Concerns about the sharp slide in the rand since September could prompt the bank to adopt a gradualist approach to monetary easing in the opening months of 2009. However, price growth is showing signs of cooling, and rapidly deteriorating economic conditions call for aggressive interest rate cuts," say the economists.
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12 January 2009, 16:41:14
In my opinion, most South Africans — of all colours and creeds — have an unhealthy fixation with owning property. We assume that it's always advantageous to buy a home and that people rent out of necessity, not rationality. Well, I rent an apartment despite having enough money to buy a house and I have very good reasons for doing so.
Do you own a house, but feel like you're spending the best years of your life with a financial ball and chain around your ankles? Why not just rent?
Here are just some of the advantages that renting a home has over buying it:
Throwing money into the water
Isn't renting purely an expense, akin to throwing money in the water? This clichéd argument does not take all the facts into consideration.
Let's say your geyser gives up the ghost. No worries, your landlord foots the bill — it's still sushi for dinner, baby!
What about the cost of borrowing? In the first few years of ownership, most of what you're paying into your bond goes to interest, not the capital. You won't see a cent of this money when you sell and with prime at 15.5 percent — and rising — one can almost say paying interest on borrowed money is, uhm, throwing money into the water.
Of course there are also all kinds of other expenses a property owner has including property taxes, levies, insurance, the cost of upkeep not to mention lost opportunity costs in the form of better returns one would have received if one rather invested in, say, stocks.
It's cheap to rent
For many virgin buyers getting a foot onto the property ladder has become nothing more than a pipedream. An affordability crisis has all but squeezed first-timers out of the South African housing market.
While getting on is near damn impossible nowadays, moving up poses almost the same challenge. For many growing, mid-income families staying in the same area if they wish to upgrade to a larger house is a mere fantasy. They can either decide to not make babies and stay put, or move to a less sought-after neighbourhood.
But these aren't their only options, of course. By renting they can grow their family in the place where they're happiest.
Usually when you rent you have to put down a deposit equivalent to a month or two's rent to indemnify the landlord against your possible non-payment. This initial payment is five to 10 times less than the cash needed to cover all the fees a buyer needs to pay before they can move into a home she or he bought. Renters also get their deposit back when they move out while there's no such luck for a buyer.
And what if Tito decides to hike rates again? No problem if you're renting — crack open some fine wine, 'cause your rent stays put!
Not a care in the world
One of my main reasons for renting? It's way less hassle!
Renters have a very limited responsibility towards the home they live in. Repairs and maintenance are not your problem and one monthly rent payment takes care of everything. If, however, you own the home you live in there are countless separate bills to pay and costs to consider.
Living in a rented flat is a piece of cake! Let the landlord do the work while you rest easy.
Freedom!
Rent and you're free to come and go as you please. Some leases are very short-term and when they're up you can simply pack your bags and go. Even where leases are for a year or more there'll usually be a notice period of a month or two after which a renter can leave without losing their deposit.
Renting provides almost boundless flexibility. There's no worrying about the market cycle before you move and no agonizing while you're waiting to sell. If push comes to shove and you just have to move out, you can do so at any time by simply forfeiting your deposit.
Renting is a good choice if your job requires you to travel a lot. Owning your own home requires that you or someone you trust is around for maintenance. It's very hard and stressful for an absentee landlord or owner to take proper care of their homes.
Do you intend on moving within the next year or three? Then renting is a better option as the costs (e.g. transfer fees, lawyers, etc.) involved in selling and buying a house are massive.
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09 January 2009, 14:53:35
Despite the expectations for lower interest rates and inflation, the outlook for the South African residential property market in 2009 remains bleak, senior property analyst at Absa, Jacques du Toit, says.
Levels of activity are set to stay subdued up to the second half of the year while prices in the middle segment of the market may decline by as much as 2.5 percent in nominal terms this year.
A further real decline in house prices of up to eight percent is expected in 2009, based on projected consumer price inflation trends and a drop in nominal prices, he said.
Lowest price growth since 1996
The Absa House Price Index, released on Friday, showed nominal annual average house price growth in the middle segment of the market slowed down to below four percent in 2008 which was the lowest price growth recorded since 1996.
Prime and mortgage interest rates are forecast to be cut by a cumulative 300 basis points during the course of 2009 to reach a level of 12.5 percent by year-end, mainly as a result of declining inflation during this period.
Despite expectations of lower inflation and interest rates, economic conditions are expected to remain depressed for most of the year. Real economic growth of below one percent is projected for 2009 after estimated growth of around three percent in 2008.
1.5% real disposable income growth in 2009
Growth in real fixed capital formation is expected to be barely positive this year while growth in real final consumption expenditure by households will also be low compared to previous years, resulting from employment levels expected to come under further pressure and real household disposable income growth projected at only 1.5 percent in 2009, down from an estimated 2.7 percent in 2008, he added.
Du Toit added that in respect of the various categories of housing (small, medium and large housing in the middle segment as well as affordable and luxury housing), activity levels and prices are expected to remain under pressure well into 2009.
"All of these categories of housing are forecast to bottom in the second half of the year and to pick up gradually towards year-end, with levels of activity and prices only to markedly improve from 2010 onwards," he concluded.
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09 January 2009, 08:21:08
Sedgefield on the Garden Route is seemingly impervious to the property market downturn.
Mario Ferreira, principal of the local Chas Everitt International franchise, says that properties in every category are moving well. He adds that while prices have remained essentially stable there has, in stark contrast to just about everywhere else, even been some price growth over the past six months.
Known for luxury
Known for its luxurious properties Sedgefield has long attracted affluent investors. The buyer mix consists of both local and foreign buyers and enquiries from overseas are on the increase. Ferreira says that a number of cash buyers have also made an appearance of late the majority of whom are buying properties in the R3.5-million to R4-million price bracket.
Also popular with buyers at this time are vacant plots in security villages that are priced from the low R300 000s on average. Fractional ownership properties are also being snapped up by those looking for their piece of the pie at prices around R300 000. Luxury beachfront properties priced at around R15-million are also attracting attention.
"Sedgefield has performed remarkably well in recent months and we are fielding an increasing number of enquiries from qualified and cash buyers alike," says Ferreira. "Buyers feel that Sedgefield is one of the most stable areas to invest in at present and they know they can expect good returns on property purchases here."
No new developments
Buy-to-let investors are jumping on the bandwagon in droves with many purchasing new properties in existing developments. According to Ferreira, this trend has gained a lot of momentum lately as proposed developments are increasingly being turned down due to environmental concerns and service bottlenecks.
Further bolstering Sedgefield’s appeal is the fact that it is a 'no-go' area for industrial development, a state of affairs which has maintained the area’s village-like ambience.
Sedgefield is also home to the longest beach on the Garden Route as well as a number of small lakes and mountains. Knysna, Plettenberg Bay and George are all also within easy reach and the area is fully serviced.
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08 January 2009, 14:34:14
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Are you having trouble selling your house? You're not alone — the market is tough and potential takers are few and far between. Now, more than ever, it's vital that those interested in your home see it at its finest.
Barring essential, major renovations don't spend a fortune trying to make your house more attractive. In a buyers' market you probably won't get a return on such an 'investment'.
The importance of realistic pricing cannot be overestimated. However, don't short-change yourself — you can sell it quickly at the price you'd like.
Here are some simple tips on how to spruce it up without breaking the bank:
Does your house have 'curb appeal'?
A house without 'curb appeal' is a house without sex appeal. First impressions last, so it almost goes without saying how important it is what your house looks like from the street.
Go outside and face your house from the road. Try to imagine that you have never seen it before and attempt to think like a buyer would. Be as objective as possible and ask your friends and family to do the same. Does anything draw your attention? Can you plainly see your house's number? Is the pavement clear? Is the paint peeling or are there weeds growing through cracks in the driveway?
A great 'introduction' is the first step to ensuring a quick sell at a fantastic price.
- The garden. Keep your grass short and the edges neatly trimmed. Grass as green as grass sells houses, so water your lawn regularly and apply compost or fertilizer high in nitrogen. Reseed or replant if there are any bare patches.
Remove weeds from the flowerbeds and trim shrubs and other plants so they don't block any windows or entrances. Also, take out dead plants and trees.
Planting colourful flowers and adding mulch to the flowerbeds are cheap and effective ways of cheering up the yard.
- Gates and fences. Fix your fence and repaint a rusty or dirty gate. Replace broken hinges and make sure it opens and closes properly.
- Gutters. Unclog blocked gutters and re-attach the places where they might be sagging. Ensure that the soil where the water runs out isn't eroded.
- Pathways and driveway. You need your home to be alluring so keep these areas free from toys, bicycles or anything that clutters and remove oil stains.
- Clear the clutter. Remove all junk and loose items like car parts, lawnmowers, toys, etc. from your yard.
- Exterior lights. Ensure that all exterior lights are working.
- Clean the windows on the exterior and interior and check that they all work properly. Paint faded window sills.
- The outside walls. Do they still look clean and crisp? It's not always essential to paint, but they should at least not be dirty.
According to Wendy Reay, a Fine & Country estate agent, one has to consider the neighbourhood when deciding whether or not to paint. "You have to budget according to the market, so it depends on what area you are in. Is the house less the R1-million? Or more than R3-million? This factor should have a huge impact on your decision to paint or not"
You're going to sell the house anyway, so don't buy expensive paint and stick to a conservative colour — white is usually best.
- A great entrance. The entrance to your house should be very well lit, clean and free of any clutter. A fresh paintjob is called for if your front door looks dull or uninviting. Remember, this is where all potential buyers enter your house, so skimping on its renovation if it's even remotely needed makes no sense. Tighten doorknobs, apply oil to squeaky hinges and make sure the doorbell works.
Providing a rug to sweep your feet as you enter the house will help cement the idea that the house is tidy and therefore a good buy.
Be creative when making the entrance as alluring as possible. "Simply having some fresh flowers at the entrance to your house can add great value," says Reay.
Do you normally use a back or side entrance? If so, it's important to pay particular attention to the front entrance as you'll be less aware of its condition. By hanging a mirror, the front entrance will appear bigger and brighter.
Preparing the interior of your house
Go outside, open the door and stand there for minute. Do you feel like going inside? Does the house 'invite' you in?
Reay reckons that very few buyers can envision what a house might look like after renovations have been done. There is no use in telling potential buyers of your intention to fix, clean, paint, repair or replace something in the house. They won't 'see' it and will simply scratch your house from their list. "In my experience, most people aren't visual. They don't walk in and see the potential or they might be in a rush. Whatever the reason, they don't stand there and think about what they could do if it was their place. This is a fact — I know that."
Space is a top priority for many buyers, so make as much room as you can. A new furniture arrangement might inconvenience you for a few months, but it can help create a great show case for prospective buyers.
Buyers must be able to imagine themselves living in the house so it's vital that you de-personalise your home by removing most of your pictures and family heirlooms.
Take care to ensure stylistic continuity. Giving one room an antique look while keeping another contemporary will make your house seem very disjointed.
"Consider borrowing artwork, cushions or nice lounge furniture," advises Reay. "On one occasion I literally borrowed more than R500 000 worth of things for a house I was marketing. You can easily change the whole vibe of a room. Don't only borrow some things, borrow a lot of stuff! You want to make money out of this, right?"
- The kitchen is probably the most important area of a house when it comes to how fast and at what price it will sell. Having said that, if your kitchen is only somewhat scruffy, there's no need to redo it completely for your home to leave a good impression.
Clean the outside of all your kitchen appliances and the inside of your oven. If you have tiles, pay careful attention to cleaning the often overlooked grout.
To create more space store all items that you don't often use inside a cupboard.
The counters, stove and sink should sparkle. Degrease the oven and thoroughly clean the refrigerator just in case the buyer wants to look inside.
According to Reay, if you have some money to spend this is where to do it. "Find a good carpenter. Instruct them to buy 'super wood' and have them redo the cupboards. There are all kinds of styles you can choose and super wood is really inexpensive."
- Paint. A new paintjob does wonders for the whole look and feel of a house. Keep the colours neutral — off-white is best.
- Floors. If the carpets are worn it would be best to replace them. If not, a good steam clean will do wonders. Vacuum if you know a viewing is imminent.
Wooden floors are almost universally preferred over carpets — even nice ones.
"If you have tired carpets over wooden floors, pick them up," says Reay. "By throwing out the revolting carpets and fixing up the wood you can easily add 10 percent to the price of your house."
- Once again, clear the clutter. Consider all the 'stuff' in your house — if you rarely use it why not throw it away or store it until you've sold your house? Remove all your books from the bookcases and clear the kitchen counters.
- Brighten the braai. Clean your indoor braai or fireplace and, if it's not too much to ask, resist using them while showcasing your house.
- Closets. Tidy closets appear larger, so go through all of them and throw out or store away everything you don't use often. Buyers love to snoop so make sure all the closets are tidy and spotlessly clean.
- Doors and window should all work perfectly.
- The living room should only have a few pieces of furniture so as not to appear smaller than it is. Remove some of the books from their shelves and get rid of any ornaments that you are displaying. Remember the golden rule — no clutter!
- The bedrooms. You guessed it — remove all clutter! Seriously, if you don't need it every day it's best to store it away until you sell your house. Rearrange the furniture in a way that allows a couple of people to easily manoeuvre around the room.
- The bathrooms. Everything must be clean, shiny and smelling like daisies. Most people want the bathrooms to be bright, so fit the highest wattage light bulbs that your fixtures permit.
Don't forget to clean the grout when washing the tiles. Fix dripping taps and broken toilets. Remove any signs of mildew and unclog all the drains. Have fresh towels ready and hang these up before a buyer views your house.
Reay suggests you buy some baskets filled with spa treatments such as lotions, moisturisers, scented soaps and candles.
Get tile paint if your bathroom is very dated or has an 'eccentric' colour.
- The garages. You know the drill, remove all junk! Broken car parts, old golf clubs, boxes, toys — they all have to go. Clean oil marks from the floor and allow ample room for the buyer to imagine his or her car in the garage.
Show time!
You're house is shipshape, squeaky clean and uncluttered. Now, it's show time!
- Let there be light! Open all the curtains and turn on the lights (make sure all bulbs are working and that there are no dead bugs in the fixtures). Brighter is better!
- The sweet smell of success. Air the house out before a showing to get rid of foul odours like those of your dog or husband. Get some anti-tobacco air freshener if you have smokers living in your home. Brew a pot of coffee or bake some cookies, but make sure your house smells divine.
- Man's best friend, a seller's worst enemy. Remove all pets from the house before a showing. Having pets in the way is sure to dampen the spirit of many a potential buyer. If you've got a large dog in your yard have someone take it for a walk while you're showing your house. Woofles might be part of the family, but keep in mind that some people don't like dogs or are scared of them.
- Cleanliness is next to godliness. Every nook and cranny must be absolutely spotless, especially in the bathroom and the kitchen. Make sure all linen and towels are clean and smell better than daisies.
- Unclutteredness is godliness! Repeat this mantra over and over: No clutter, no clutter, no clutter...
- Create a 'rapid reaction force'. Often an agent will arrive with an interested buyer at very short notice — always be ready to rock! Allocate a task or room to each family member to take care of and make sure everyone knows exactly what their responsibilities are. Your 'rapid reaction force' will ensure an immaculate house even if the agent and potential buyer steps in 15 minutes after alerting you they're on their way.
- Supply a fact sheet. A fact sheet is a document with your house's 'vital statistics'. Home buyers often view many houses so it's easy to forget which attributes makes one or the other special. Supplying a fact sheet will place your house above the others in a buyer's mind.
The fact sheet should include all basic information like the amount of rooms and bathrooms, size of the house, stand and individual rooms. Also, include all aspects of your house that make it stand out from the rest. This might be physical attributes such as the style of the house or other things such as access to amenities that are close by or good schools that serve your neighbourhood.
Other things to mention: Do you have a pool? Describe the kitchen, bathroom and bedrooms in as much detail as possible.
Do you have air-conditioning? Is there a double or single garage? Do you have a pool or Jacuzzi? Is there a granny flat on the property? What are your rates and taxes?
Your own and the agent's contact details should be prominent as well as a stunning, high quality picture of your house.
Print the fact sheet on quality paper and be sure to hand it to the buyer before they leave.
- Using an agent? Then go away! Make yourself as inconspicuous as possible if you can't get out while the agent is showing your house. If it is comfortable outside, go there until the buyers leave. You don't have this luxury if you are selling on your own. In that case, be as helpful as you can but don't crowd the buyers.
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08 January 2009, 14:33:22
Growing demand among public servants for housing in central Pretoria has led to severe shortages.
According to Chris Swanepoel of the RealNet Sunnyside office, current estimates by Stevens Mokgalapa, DA counsellor for the area and spokesperson for housing, put the shortage of low cost, RDP type housing in the region of 330 000 units. While not as acute there also exists a shortage of other social housing as well as formal housing units. "Suburbs such as Sunnyside, Arcadia, Hatfield and the city centre itself are popular among public servants and other young professionals who are looking for housing close to the central business district.
Earmarked for dramatic densification
"Consequently the whole area, already known as Pretoria’s flatland, is earmarked for further dramatic densification. Developers have started buying up adjacent properties and are demolishing old homes to make way for new apartment blocks," he says.
Once completed the Gautrain project is expected to further boost the property market around the new station in Hatfield. Another trend is conversion of homes around the Loftus rugby stadium near the campus of the University of Pretoria into offices for professionals such as architects and attorneys.
Swanepoel says the inner city areas have shaken off their image of crime and grime thanks to concerted efforts by various stakeholders to clean them up. The clean-up campaign is supported by local businesses, political parties as well as local government and teams of volunteers take to the streets once or twice a month armed with rubbish bags.
Instilling pride among residents
"Not only do the volunteers physically clean up litter, the campaign aims to instil pride among residents in their suburbs. The results have been remarkable."
The local RealNet office has taken this community involvement a step further and is in the process of setting up adult literacy classes in conjunction with a local pre-school. "We view it as imperative that people living and working in a community reach their full potential. It is the most assured way of establishing and maintaining a vibrant and sustainable community — a pre-requisite for a healthy property market," says Swanepoel.
He adds that the area currently offers a wide array of properties ranging from bachelor apartments to historic homes and various embassies. Prices for bachelor units start at around R270 000 while large old homes sell at prices of up to R2-million. Embassies in the area are valued up to R10-million.
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02 January 2009, 12:25:39
Boschendal proposals the antithesis of the current trend towards prolific smallholding sub-division, says ceo
Clive Venning, the CEO of Boschendal, the 2,240 ha wine and fruit estate 20 kms from Franschhoek, was last week asked by a visiting journalist how a conscientious, environmentally and socially responsible developer might see the future of the Cape Winelands.
Venning replied by saying that certain facts are no longer disputed. These, he said, are:
1. increasingly larger numbers of people are opting for a winelands lifestyle and a break from the cities;
2. this has resulted in the ongoing subdivision of existing estates to the point where, if the trend is not halted, urban sprawl will take over “all the way from Franschhoek to Cape Town”; and,
3. subdivision is being hastened by the problems facing wine and fruit farmers, large and small, in achieving a viable profit from their operations and, as a corollary to this, in being able to provide employment at a satisfactory level year-round.
“It is,” said Venning, “now quite obvious that many farmers with, say, 100 ha are tempted to secure their futures by subdividing and selling off. The Department of Agriculture, recognising the challenges they face, will, we are told, in many instances condone a subdivision as small as 40 ha.
“Once this has gone through the new owners can exercise their right to put a primary residence, a manager’s house, stables and/or cowsheds, tractor garages and workshops and, quite possibly, will also get permission to erect a shop or a restaurant, a winery and a guesthouse.
“As a result, the Paarl to Franschhoek corridor, the Banhoek valley and many similar former farming areas are becoming suburbanised and overbuilt and are losing their attractive agricultural flavour.”
The Boschendal masterplan, said Venning, seeks to ally the estate with the conservationists and those against ongoing subdivision, while at the same time ensuring that the Boschendal farming operation has a sustainable future.
“Under the urban sprawl scenario which I have outlined,” said Venning, “anything up to 35% of the numerous smallholdings now being created will become built up in the way I have described.
“By contrast, Boschendal, where only 11% of the estate (5% already built on) will be developed altogether, will remain a green lung with 300 ha of fruit, vineyards and pastures and 1,000 ha of fynbos. What is more, the latter will be preserved in perpetuity and, as part of our undertaking to the estate, be kept clear of alien vegetation. It will also be opened for walking trails.”
Venning added that the major proposals for the Boschendal estate - 23 farm villages, a 500 unit retirement village and a 120 room hotel (attached to a small retail centre) - will be built either on existing built areas (such as the defunct cannery and railway siding) or on land which over three centuries has never been farmed as it is unsuitable for any kind of crop or even pasture.
What is more, he said, the developments in most cases will be hidden from the view of passers-by and other residents on the estate.
“The green coverage will be significantly increased - anyone flying over Boschendal will, in fact, see currently derelict buildings replaced and all the agricultural areas completely intact.”
Expanding on the huge demand for country lifestyles, Venning said that it is to him significant that on the 18 large and expensive Founder’s Estates, which have now received official approval and one-third of which will be transferred to buyers this January, most of those who are moving in have young children, often still at school.
“What we are hearing from these buyers,” he said, “is that they do not want their offspring to grow up in an urban environment where clubbing, drugs and a general decline of traditional restraints are the norm.
“As private country schools, such as Bridge House (to which Venning sent both his daughters) and Somerset College, are now rivalling the academic and in many cases the sporting achievements of the traditional private schools, there are no longer disadvantages to attending a local country school. Indeed, in the view of our buyers, such schools have a great deal to offer.
“We are also hearing that in today’s electronic business world it is feasible for industry and professional leaders to operate from a country base provided it is, as at Boschendal, close to an airport and provided it has state-of-the-art security - which is very definitely part of the Boschendal package.”
Discussing the economics of the Boschendal proposals, Venning said that the development could be compared to a golf estate or a V & A Waterfront apartment purchase where a monthly levy on the home helps maintain the golf course or the canals and landscaped areas.
“Here at Boschendal the homeowners’ levy will maintain the farming operation which now employs 250 people and cares for 300 ha of arable land, but which has not made a profit for a decade or more. If subsequently, as seems possible, the farm team does show a small profit, this will be put back into the upgrading and improvement of the farming venture.”
Venning added that the Boschendal proposals go a step further than those of most rural developments because they incorporate a significant social levy which will make R500 million available in cash and land to the local community. The cash, he said, will be used only for upliftment and educational purposes.
Asking for an in-depth understanding of Boschendal’s masterplan from those genuinely concerned about the Winelands’ future, Venning said,
“It has to be accepted that if Boschendal goes ahead it will set a new standard for winelands and agricultural development and, we hope, will slow down or possibly put an end to the disastrous piecemeal developments we have seen all around us. This is, in my view, the only route that conservationists can take if they genuinely want farm estates rather than unprofitable, badly run, overbuilt smallholdings. No other option is viable so long as unsubsidised winelands farming continues to find it hard to achieve profits. This, I believe, will be the case for at least two decades to come.”
For further information contact Clive Venning on 083 706 9715.
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02 January 2009, 12:24:50
In the last half year the Rawson Properties group has helped 21 new franchisees set up in business. Eleven of these are in Gauteng or its surrounding provinces, including the Free State.
Sean McCauley, a Rawson Properties Director, has said that, although his Chairman, Bill Rawson, would have liked to have seen more new franchises established, the sales rate this year has been “very satisfactory” considering the blow that the economic downturn has dished out to the residential property sector.
“Across the whole of South Africa,” he said, “we are now finding that some people are turning their backs on corporate life. Let’s face it, this has often not suited the middle rank manager with ambition and a strong entrepreneurial instinct. This, however, is the type of person we find we can attract to property franchising.”
McCauley warned, however, that Rawson Properties still take on only one in twelve of the applicants for a new franchise and that, due to the educational qualifications which have now become obligatory in the real estate marketing sector, a new franchisee with no property experience might have difficulty setting up as a principal until he has completed aninternship. However, he said, there are still ways of arranging this. Rawson is one of few estate agencies that is facilitating and assisting with this process.
By contrast, said McCauley, those with some or all of the necessary experience and qualifications are now steadily coming across to Rawson Properties from both their own independent organisations and from other agencies where they held subordinate positions.
“Many people, seeing the need for ongoing training and educational qualifications,” said McCauley, “are now coming to us so that they can get these as part of our very comprehensive package.
“Others are coming to Rawson Properties because they recognise that sellers now look for a big well branded company, one with a reputation to defend and a higher authority to whom they know they will be able to appeal if not satisfied.”
Many of the new franchisees recently set up in Rawson Properties’ northern territories, most have in fact worked previously in property. New Rawson Properties franchisees at Germiston, Wilgeheuwel and Secunda have all been in property already and of the new franchises established in the last 18 months some 70 % also had property experience.
The star performers among the new franchises, said McCauley, had been Kensington, Glen Vista and Rand Park with North Riding, Morningside, Ferndale and Midrand also turning in very good performances
“The fact that our franchises have been able to perform and survive in these extremely difficult conditions augers well for our future,” said McCauley.
For further information contact Sean McCauley on 083 600 3231.
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02 January 2009, 12:24:01
Rawson director advises bond holders to stick with existing bond repayments - the advantages, he says, are seldom fully appreciated
The coming year, says Sean McCauley, a Rawson Properties Director, could well see interest rates dropping by a further 2,5%.
Regrettably, he says, the vast majority of bondholders will then find “other ways” of spending the cash that they formerly had to devote to bond payments - but this, says McCauley, would be a pity.
“At Rawson Properties we are trying to convince our clients to bite the bullet for a few more years if they can and pay above the stipulated rate. The advantages of doing this are far greater than most people realize.”
Certain Rawson Properties clients, he says, are now continuing to pay off their bonds at the rate that pertained before the latest 0,5% cut.
“On a R900,000 bond this means that they would now be paying in another R334.00 per month. That may seem an insignificant sum but, on a 20 year bond, it will cut 33 months off the full pay back period and save the bondholder R326,000 altogether.
“Supposing, as we expect, we do get a further 2,5% drop in interest rates in 2009 but the bondholders still continues to pay off his bond at 2008 levels, he will save eight years on the repayment time and R729,000 altogetherl - a significant sum when you consider that on the model we are discussing the borrower signed for only R900,000 in all.” (The interest portion in initial years of a bond, McCauley added, can consume as much as 90% of the repayments.)
The National Credit Act, says McCauley, has forced people to become more prudent about their spending, but it has not as yet inculcated a true save-at-all-cost mentality.
“Recently,” he says, “we have seen a 5% drop in the amount of debt incurred by South Africans in relation to their disposable income - but as that figure stands at 76% it is still far too high for an emerging economy.”
Asked if and when residential property could again experience the heady boom conditions of 2006/07, McCauley says that, “other factors being equal which can never be guaranteed”, while an upswing is inevitable “because the market is always cyclical” it will probably take at least a year for South Africa to see truly buoyant residential property conditions. At the same time, he says, he agrees with his co-directors Bill Rawson and Tony Clarke that the next few months would be a good time to buy into property.
“One further interest rate cut, I believe, will result in prices starting to firm up and indeed to rise,” he says.
For further information contact Sean McCauley on 083 600 3231.
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02 January 2009, 09:35:54
Secondhand housing far less expensive than the new product. Says rawson director
Some idea of just how good (from the buyer’s viewpoint) the current values of South African housing are can be gained from ABSA Bank’s data which were recently explained by Sean McCauley, a Director of Rawson Properties, to certain of his colleagues in the Johannesburg operation.
McCauley showed that used (“secondhand”) housing is now 13,9% less expensive on average than new homes coming onto the market from builders and developers. The prices of new homes, he said, are currently still, at least in part, resistant to the downturn.
In November they rose 18,1% year-on-year, giving an average price countrywide of R1,1 million for new homes.
By contrast, the average price of a secondhand house was R954,000. (If these figures seem high, it should be realised that ABSA’s figures do not take in the full spectrum of township housing.)
Land prices, said McCauley, had also resisted the downward trend and in fact rose by 17% year-on-year. The reasons for this, he said, could be partly that there is now less fear of electricity outages and therefore ongoing development will once again become feasible and, secondly, that there is now a land shortage.
Housing prices, added McCauley, have risen this year, despite the negative comments from the press, albeit it not in many cases in line with inflation: they were 3,9% up year-on-year in November, with the upper bracket homes, i.e. those with an average price of R4,6 million, showing a remarkable 10,4% increase. Western Cape house values fared better than those of Gauteng, he added.
Developers, said McCauley, will still be able to launch selected, possibly smaller, projects because they are still given preferential treatment by the big lending institutions. Buyers here, he said, are in the strong position of being able to get 100% bonds - and these buyers pay no VAT or transfer duty.
Some bond applicants, said McCauley, are fortunate because they still qualify for bonds, but this is no longer the norm, and one bank is in fact threatening to limit their loans to 70% except in exceptional circumstances/
For further information contact Sean McCauley on 083 600 3231.
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31 December 2008, 08:54:03
US/UK/EUROPEAN HOUSING WOES FAR MORE SERIOUS THAN THOSE OF SA
Bill Rawson
South African homebuyers can be grateful that they have been spared the direst consequences of the global credit crisis, says Bill Rawson, Chairman of Rawson Properties.
Rawson, who has recently been in discussions with a leading UK mortgage banker, admits that what he has heard has shaken him.
"Following the Madoff collapse," said Rawson, "further cases of this kind are seen as inevitable and the result is that, coming on top of previous problems, UK bankers are in a state of complete indecision. Not one of them really knows where the market will end up and how long it will take to recover. With banks, therefore, the first and possibly only priority now is to protect their assets, the debtors' problems being seen as more or less
irrelevant."
One effect of this, said Rawson, is that many UK banks are re-valuing their clients' properties and, in the light of the substantial decreases experienced, are often insisting that the bondholder pays in or faces the property being sold under his feet by the bank. This, explained Rawson, is possible in the UK because bonds there are issued short term, sometimes for as little as two years, and often for no more than five years. When the review becomes due it is then only too easy, said Rawson, to put screws on the bondholder.
"The number of sales in liquidation is the highest within living memory," said Rawson. "Almost all the banks are saying that they have never seen a situation like this."
As a consequence, said Rawson, home valuers are now extremely reluctant to commit themselves to a decision: today's price could be way out within a month
or two - and valuers could then face allegations of negligence from the banks for a miscalculation.
Also now on the increase, said Rawson, is international banking: An investor in the UK, finding that he is blocked from raising any money there, might well look to Singapore, Tokyo or Dubai for finance - and will probably have a better chance of securing it there than on his home turf.
It is worrying, added Rawson, that in the re-evaluation process UK banks appear to be abandoning the traditional concept of taking into account the building's replacement value.
"Crisis conditions seem to have caused this approach, previously so widely accepted, to be completely forgotten. I find this difficult to understand because all of us who have been in property for over 20 years have seen property values emerge stronger after every recession - and this will surely happen here: there can, for example, be very few central UK properties which will not be worth double their current values within ten years."
The panic attitude of UK banks, said Rawson, also appears to ignore the fact that rentals have withstood the meltdown far better than sales values - as has been the case over the last year in South Africa.
"Residential property in South Africa is now a very good place to be," said Rawson. "We have seen significant rent rises this year, literally on a month-by-month basis. The first interest rate drop has been taken by the public to indicate that further drops are on the way, which will, as they see it, usher in a slow but steady upturn in the market."
South Africans, said Rawson, can take comfort from the fact that our banks have emerged from the global crisis with enhanced reputations and with the ability to continue to fund mortgage finance.
"Granted that it is now more difficult to get a bond, these are still available to anyone who is earning regularly and is not seriously in debt. Our residential market, therefore, will continue to move forward. What is more, where people have been in trouble, the banks are often able to take a lenient, longer term view and to make a plan."
Right now, therefore, said Rawson, the future for residential property "is beginning to look very good". In the Rawson Group, he said, greatly improved December sales bear witness to this.
Asked how long it might take for the international banking/housing market to recover fully, Rawson said that initially he had estimated that it would take a year, but three to four years might in fact be needed to get First World economies up and running.
"The world will never be quite the same again," he said, "but the good news is that South Africa's economy, though minute in comparison, is in better shape than that of the big players and our exporters, who have shown commendable initiative over the last year will, I believe, continue to make market inroads elsewhere
as a result of the very low value of the rand."
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For further information please telephone Bill Rawson on 082 458 4389.
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30 December 2008, 11:01:09
The South African property market is expected to remain under pressure early in the new year, but there is the prospect of a gradual up tick in demand during the second half of 2009, property experts told I-Net Bridge.
In his 2008 fourth quarter housing review, property analyst Jacques du Toit said: "In view of the current and expected domestic economic conditions towards end-2008 and into 2009, the housing market is forecast to stay subdued over the next 12 months."
He noted that in 2009 nominal property price growth is expected to be extremely low, even lower than 2008, if not negative during the early stages of the year.
Pick up gradually
The demand for property, he said, would still be relatively low but that both demand and price growth are expected to bottom next year and to pick up gradually during the second half of the year.
"The pick up will be mainly on the back of declining inflation and a number of expected interest rate cuts expected during the course of the year," he said.
For the first time this year, the South African Reserve Bank's Monetary Policy Committee (MPC) this month reduced the repo rate by 50-basis-points to 11.5 percent.
The downward movement in the local CPIX and PPI figures is a strong indicator that the inflation is on the decline and this suggests that further interest rate cuts could be likely in the new year.
"It will most probably be in 2010 when the property market shows a marked improvement," said Du Toit.
"The general move in property values this year had been weaker, first in the form of declining inflation, but in the latter part of the year I believe we have moved into full-blown price deflation," said John Loos, property strategist at FNB.
He said that demand had declined more dramatically than prices, but a slowdown in supply has curbed the deceleration in prices, as many people don't sell houses in such a weak market. Those that do often hold on for longer to obtain their price, and the supply of newly built stock coming onto the market is also slowing.
Slowdown in supply
"So the slowdown in supply to the market has helped to partially support prices as demand plummets," he said.
"I don't think that the full impact of the global economic growth slowdown has yet been felt on the market," he noted.
He further explained that it was the commodity price spike earlier this year, most notably oil and food prices, which had had the major impact to date, causing local consumer price inflation to eat into disposable incomes as well as having driven interest rates up.
"Much of the negative impact from the global crisis therefore still has to be felt in 2009," he warned.
Looking ahead Loos said that he expects to see the FNB house price average show average deflation of between three and five percent, although on an area-to-area basis many areas would be worse hit than the average.
Not all doom and gloom
However he noted that it wasn't all doom and gloom.
"We expect the interest rate cutting to continue through much of 2009," he said, noting that this decrease was expected to see demand bottoming out in the first half of the year and improving in the second half.
The recovery in demand is expected to be gradual, though, constrained by low economic growth and job losses, which will partly offset the positives of interest rate cutting.
Loos said that demand for property could start showing significant recovery towards mid-2009 and in the second half of the year, while house price inflation is expected to respond with something of a lag, turning positive only very late in 2009 or early-2010.
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29 December 2008, 12:43:05
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RISING CONFIDENCE IN SOUTHERN SUBURBS PROPERTY IS NOW EVIDENT
SIGNIFICANT RECENT INCREASE IN GREEFF PROPERTIES SALES
Mike Greeff, CEO of the estate agency that carries his name, told UK visitors this week that March to June had seen his company’s sales hit their lowest levels since 2005. However, July to September showed an average 22% increase over the March – June period, with October and November showing a 42% upturn when compared to the earlier period.
What is more, says Greeff, there are clear signs that the improved sales turnover will continue through the summer.
“I think,” he said, “that we are now into a scenario in which there is renewed confidence in property. People are saying, “If we had had more of our portfolio in property we would have fared better – and that is true.”
Greeff said that factors which, in his view, are underpinning this confidence are perceptions that:
- with five substantial parties in parliament our new democracy will be strengthened and the ruling party will be more vulnerable and sensitive to the people’s real needs. This, among other things, will result in an intensified effort to increase delivery of low cost housing.
- Eskom’s problems now appear to be better contained and not as disastrous as originally feared.
- inflation, now close to 12%, is being brought under control and will be kept in check by lower oil prices and more efficient credit control (through the NCA and the banks’ tightening up).
- as a corollary to this the public has come to terms with the new Credit Act and are being forced to pick up a “save-first” attitude.
- the global financial crisis has impacted far less on SA than on the First World countries.
- the Zimbabwe disaster, although serious, has not affected SA as much as some feared it would and a solution here is likely to be found within the next nine months.
- the international terrorism threat has not been a problem in SA. We do, said Greeff, have serious crime issues that need to be sorted out urgently, but these do not have as negative an impact as dedicated terrorism. said Greeff.
“Six months ago,” he added, “many people were looking at emigrating. With the rand at its current low levels, that is now discussed far less: we are instead seeing people getting on with their lives and again investing in property and many expats are coming back because of the world financial crisis and job losses. Some of these people have substantial funds which they are putting into property.”
The upturn in property confidence particularly in the Southern Suburbs but also in Greater Cape Town, he said, has been helped by improved rentals on residential property which, he says, have risen by 10-15% this year.
Graham Leslie, MD of Greeff Properties, predicts that by late February the interest rate will have come down by 1% to 1,5%. This, he expects, will put the whole residential market onto a good wicket and will result in a slow, but steady, return to satisfactory trading in the third and fourth quarters of 2009.
“Now, therefore, would be a good time to buy” said Leslie and we do not believe prices will fall further from now on.”
For further information, contact Mike Greeff on 083 679 1809
Mike Greeff: Confidence in Cape Residential property now on the increase.
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22 December 2008, 09:28:12
Rawson Financial Services has recently been achieving a success rate of over 80% on its applications to banks for home loan mortgage bonds - far higher than the average for the industry - and this, says the Rawson Group MD, Tony Clarke, is due largely to the way in which they package and present the applications they help clients prepare.
“At Rawson Financial Services,” he said, “we have trained our consultants without in any way fudging the truth to present the client’s financial situation in a manner that is more likely to find favour with the banks since they started to operate on the National Credit Act rulings. The client’s risk profile has to be reduced to make him or her more acceptable for a loan and, although apparently simple, this does require a certain skill.”
Many clients, added Clarke, are ill-informed as to what a bond actually is and how it works and they are scared off by the apparently draconian regulations of the National Credit Act – but they have been relieved to find that bonds can still be obtained if the consultant knows how to present the client’s application professionally.
The bond application process kicks off with the client submitting a bond application, but these days this is often not acceptable to the banks and sale agreement is cancelled – a frustrating situation for both buyer and seller.
Where bonds are approved, said Clarke, in many cases the sum required is not granted. It is very unusual today, for example, to get a 100% bond, 90% being the maximum generally allowed.
What routes are then open to the thwarted purchaser longing to own his own home but in need of extra finance?
The first thing the buyer may able to do, said Clarke, is to prove that he has income over and above the sum registered on his monthly pay slip. Guaranteed annual bonuses, for example, do count as income and it is sometimes possible to arrange with the employer to pay these on a monthly rather than on an annual basis, thereby raising the applicant’s basic salary cheque.
Alternatively, it can be possible to arrange with the employer to pay part or all of the applicant’s provident fund contributions into his salary or to make a cash advance using the funds built up in his pension fund. This, said Clarke, makes good sense because a home is a very sound investment and can eventually contribute towards the applicant’s pension.
Then, too, said Clarke, there are instances in which the buyer can raise a further bond on property which he already owns and on which he has significant paid up equity.
Alternatively third parties can also sometimes be persuaded to make an unsecured collateral investment, thereby again earning interest at attractive rates.
The collateral route, said Clarke, is often followed by families with, for example, the father assigning certain funds to the bond issuers dealing with his son or his daughter. When this is done the sum assigned, although not used, is put into a fixed deposit and is immediately frozen by the bank.
Insurance policies, too, can be pledged as security for a long term loan, provided they have been running long enough to have a worthwhile paid up value. Again, as a home is a sound investment, many people see this as a kind of insurance.
Buyers can, in some cases, persuade banks to register a second bond covering the shortfall on the first bond in favour of the seller. This can be very helpful where the seller is in a hurry to leave but the first bond issuer has to agree to this.
Here the purchaser arranges with two or more people to form a syndicate to advance the extra capital needed (e.g. 10% or 20% of the purchase sum). The purchaser is given the first right to buy back the shares from the syndicate.
This system, said Clarke, in most instances works because anticipated increases in the value of the property will make it possible down the line to register a higher bond value and for this the bond applicant’s increased earnings by then will probably qualify him.
In certain companies, where the bond applicant is a tried and trusted employee, it is often possible to arrange a loan for him on the so-called “golden handcuff” system, i.e. he agrees to continue to serve the company for a stipulated period while his loan is paid off.
The seller may also himself agree to advance a loan to help with the buyer’s deposit and in most cases this is done without security. Although risky, this procedure has brought about many a sale where the property was in danger of sticking on the market, said Clarke.
In some cases, added Clarke, buyers and sellers can hammer out an instalment sale agreement which does away with the need for a bond and allows the seller to benefit from interest rate payments that would otherwise go to the bank.
“This is a great way to keep wealth in the family or company,” said Clarke, “but it does have a drawback: if the buyer defaults on his payments, all his instalments to date are legally forfeited.”
Some of these alternative options, said Clarke, can be particularly attractive to sellers who are in a hurry to dispose of their properties, for example if they are leaving a city or leaving the country.
“Wise sellers realise that it is better to get a deal tied up quickly rather than to try and manage the sales process over a long period from another part of the country or from overseas. They also realise that if they delay selling now in the hope of getting a higher price, the exact opposite will probably happen - after months of waiting they will often find that the house sells at below its true market value.
“Many sellers dislike the stress and the invasion of privacy that the whole selling process can entail and are very aware that finalising the sale quickly frees them to make the most of other opportunities. In addition where sellers do help buyers, in our experience this usually enables them to get a slightly better price than they would otherwise have done.”
DECEMBER BUYERS ARE UP
The general opinion is that December would be a quite month... right! Maybe not! If you are a seller in the current market that has certainly arrived with it's challenges this year, then have hope and confidence in December. Family's and individuals are either being forced into relocation for better pickings or maybe being relocated by the company they work for. Midrand becomes a good first choice for these potential buyers and therefore the amount of activity can increase, in fact we have seen an increase in the number so far.
Naturally the most difficult part of marketing a home in December is "do you really want to make your home available". It's a time when family are over and you just don't feel up to it. Depending on your situation of course, you may well consider making your home available if possible, especially if you have been marketing your home for a long period or are under pressure to complete a sale. If you are going on leave, then possibly your agent can have spare setof keys in case the opportunity arrises (consider this option at your own risk however as we certainly won't vouch for opposition!). A pleasant surprise to arrive back and find an offer to purchase
Properties will continue to sell through the month, whether a certain property is available or not, I certainly believe then by making your "sellable" property available, certainly increases your chances as in general options for buyers will be fewer than normal at the moment and therefore odds are up!
Good luck!
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19 December 2008, 09:21:43
 SoHco (The Social Housing Company) is capitalising on the success of its Amalinda 598 unit housing project at East London developed five years ago, by going ahead with a similar development nearby.
The first Amalinda scheme recently won the National Department of Housing’s Goven Mbeki Award for the Best Social Housing Scheme in South Africa.
“SoHco’s goal in life,” says John Weaver, a director of Inframax Developments (which delivers turnkey projects for SoHco), “is to deliver and manage rental homes for low income families earning R2 500 to R7 500 per month.”
The new development in East London, which has a construction value in excess of R100 million, will be on a 13,4ha site, a few kilometres from the previous project. The area is close to the CBD and has good transport links.
For the follow up project, SoHco has once again entered into an agreement with Inframax Developments to handle the project on a turnkey, fixed price basis.
Weaver said that Inframax takes pride in contributing to the resolution of South Africa’s housing backlog. On this contract, he added, the ability to deal with a single client capable of commissioning an order of this size has removed the marketing risk and has enabled Inframax to price keenly, thereby helping SoHco meet the required rental levels.
The new project will be known as Emerald Sky, and when fully developed will have 700 units in all. SoHco has signed for the first 481 units and is now negotiating with Inframax to purchase a further 120 units in the next phase.
Mike MacLachlan, Inframax’s director responsible for the project, said that SoHco’s initial rentals will have to be between R1 050 and R2 250 per month to enable the development to be eligible for the government’s institutional housing subsidies. (Because the project falls within a restructuring zone, it will qualify for a special grant.) The balance of the finance is being borrowed from NHFC (the National Housing Finance Corporation) and from an overseas organisation, the Dutch International Guarantees for Housing (DIGH).
When complete, Emerald Sky will provide three categories of apartments: 30m2 bachelor units with combined living and kitchen areas and bathrooms; 35m2 one bedroom units in which a bath replaces the shower and the kitchen and living areas are separate; and similar but larger 42m2 two bedroom units. These will all be in three and four storey walk-up blocks.
The project was structured by Thomas Stewart, Inframax’s representative in the Eastern Cape, working with a local professional team. The planning took 24 months.
The architect is Bob Coombes and the contractor, who began work in October, is Heaton Construction.
Buffalo City Municipality, said Thomas, deserves praise for the way they cooperated with Inframax and SoHco to cut red tape and speed up the approval process.
“It is not surprising that this municipality is one of those taking a lead in the provision of social housing in South Africa,” said Stewart. “They have a concerned, innovative attitude.”
Weaver has on previous occasions commented that the success of social housing depends largely on the ability of the management to keep very tight - control of debtors – with the full support of the other residents.
“The long-term aim in social housing, said MacLachlan, “has to be the provision of affordable, sustainable, quality rental accommodation in well located areas.”
MacLachlan said that the Amalinda project is now seen by many East London families earning R3 500 to R10 000 per month as a “very desirable” place to live.
“The Emerald Sky development,” he predicted, “will be just as popular as the Amalinda project and will almost certainly be fully tenanted before handover.”
For further information contact John Weaver on 021 530 5760.
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18 December 2008, 10:48:26
ANNE PORTER’S UK ASSOCIATES LOOK BACK ON A GOOD YEAR – AND FORWARD TO A VERY TOUGH ONE
Some idea of just how the global property market boomed prior to this year’s sub-prime market meltdown can be gained from a perusal of the Knight Frank 2007/2008 results announced recently in London. Knight Frank, with 6,770 professional staff, is the world’s largest property consultancy. In South Africa it is partnered by Anne Porter Properties with whom it has a trade/consultancy agreement.
Knight Frank’s turnover in the year to April 2008 rose 17% to £339 million. On this figure a before tax profit of £59,2 million was realised.
Overseas turnover rose 41% to £112,7 million and in the year past Knight Frank were able to open new offices in Munich and Cambodia as well as to establish a single operation for their European and Irish deals. Knight Frank’s residential teams, the report reveals, continue to operate in the main prime property markets and in the year under review expanded in the Balearics, Italy, Switzerland and the USA. In the USA they were involved with major developments in three cities and have set up a commercial property partnership with a local company Newmark.
In the UK the number of Knight Frank offices was increased to 55 and sales in the £10 million plus market rose by 55%, confirming Knight Frank’s dominance in this sector.
Commercial consultancy and transactional disciplines provided depth and breadth to the operation as a whole and contributed 47% of the commercial division’s turnover.
Following on from these impressive results, how does Knight Frank see the current situation?
“The world is now a different place,” said Nick Thomlinson, a senior partner and chairman of the Knight Frank group, “but we have still managed to trade positively in the first seven months of this year ………”
Knight Frank, he said, now find themselves back in a market where only the best agents and professionals will shine and he indicated that they would maintain their leading position in the current far more difficult conditions.
Lanice Steward, MD of Anne Porter Knight Frank, which is headquartered in Claremont, said that Knight Frank would, like her own company, in the long run benefit from the downturn because, with almost half the competition now ailing or already out of the picture, they will be able to build up new networks which will pay off when the upswing materialises. This, she said, will probably be in the last quarter of 2009.
“The big drop in sales in recent months does have a silver lining,” she said. “We are now in a scenario in which the less competent agents simply cannot survive and are steadily leaving the industry. By 2010 those who are still in the business will, as in the UK, be the tried and tested branded professionals whose service has never really been in question.”
Steward added that although December is “as always” likely to be a low trade month, October and November had seen a 30% uptick on the very poor mid-year months of May to July.
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18 December 2008, 10:36:23
BETTER TRAINED ESTATE AGENTS WILL USHER IN “A NEW ERA”, SAYS RAWSON, BUT BANKS WILL HAVE TO BE LESS “RIGID”
The message put out by so many agency chiefs in recent months - that the South African residential market is entering a new era - was confirmed and expanded on this week when Bill Rawson, Chairman of Rawson Properties, gave his views of what will happen in 2009 to some 250 Rawson Properties agents gathered for an end of year function in Cape Town.
“I do see a gradual improvement taking place,” said Rawson, “but this will not mean any truly significant upswing in unit sales until the third or fourth quarter of 2009.”
The tighter conditions now being experienced, coupled to the ongoing training made obligatory by the Department of Trade and Industry for all agents, will, said Rawson, bring about further reductions in the number of agents employed: the 53,000 people currently registered as estate agents could, he said, drop to 35,000 in 2009 and to 20,000 or even less by the end of 2010. However, he added, the reputation and standing of estate agents will rise steadily from now on due to the fact that they are on the way to becoming part of one of the best trained and most regulated estate agent bodies in the world today.
Agents looking to survive, he said, must hone up on their IT, internet and computer literacy skills because these days estate agents are expected by clients to be fully competent in these fields - and, equally important, much of the marketing effort of any good agency is done via IT systems.
Big agencies such as his own, said Rawson, will have to find ways of expanding their IT marketing capabilities (already at Rawson Properties these are “very sophisticated”) within drastically constrained budgets.
While property will always remain a highly desirable asset class, said Rawson, it will in 2009 be more difficult to acquire because of the National Credit Act and the rigid, less flexible approach so often taken by the banks and lending institutions.
“While it is possible to understand the need for lenders to be extra cautious right now,” said Rawson, “there is, in my view, a huge marketing opportunity awaiting a bank prepared to rely less on rules and more on personal assessments by competent assessors. The personal touch, the ability to listen and to adapt terms and conditions appropriately, has almost died out at banks. In the first round of negotiations and, sometimes later, borrowers these days find themselves judged almost entirely on statistics, figures and formulae.”
Rawson Finance, he said, had become popular in a short space of time because they had shown clients how to present their applications so as to make them more likely to succeed - but even they have had their frustrations.
“The banks have now got to find some way of reintroducing a more individual approach to loan applications,” said Rawson.
In his own business in the initial years (and later when he began to set up franchises), he said, he had made lifelong friendships and built up longstanding loyalties by assisting property and franchise buyers with loans, some of which were unsecured.
“In the early days of this business we worked largely on our own personal estimates of the applicant’s integrity and reliability and in those first five years I can honestly say that we only had one case where we had eventually to take a borrower to court. People, in my estimation, are by and large honest.”
This type of very individual approach, he said, is possible if an institution employs experienced assessors who have learned to sort out the chancers and fly-by-nights from those who are fundamentally sound.
Rawson said that he will, in fact, be discussing this matter with certain banks because although, as recent events have shown, easy credit can be disastrous, the “retreat-to-your-corner” approach now evident among banks is exaggerated and often not warranted by the borrower’s financial situation.
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18 December 2008, 10:05:39
Asrin Property Developers report that they have had “a very encouraging” response to the launch of the 16 000m2 60 unit Epic Business Park in Berkley Road, Maitland. The R130 million development is being taken forward in joint venture with Land Equity, a Stuart Chait company.
Shiraaz Hassan, Asrin’s Marketing and Sales Manager, said that they have had over 120 enquiries and to date 80% (12 800m2) of phase one with a value of R105 million has been reserved.
“It looks as if we got the formula 100% correct,” he said. “The size of the units, 250m2 to 350m2, is exactly what the smaller entrepreneurs, now tired of paying for rental premises, want and the price of R8,200 per m2 is competitive in the fast expanding industrial market.”
Although the development is attracting investors who, says Hassan, appreciate that they can get a better return there than on a residential investment, the majority of the buyers are owner occupiers, particularly firms working in the light industrial field.
The first transfers will take place in late 2009.
Security has been treated as a top priority: the park will be protected by a high security wall and the entrance will be manned 24/7. CCTV coverage of the entire 19 259m2 site will operate night and day.
Several buyers, said Hassan, have revealed that a major attraction of the site is its position in relation to the N1, the N2, the M5, the city and the harbour.
Other buyers, he said, had signed on because they find the designs attractive: the architects Jacobs Wolters have come up with a design that is unmistakably contemporary but incorporates Cape features and has classic Cape Dutch proportions. Roofs are almost flat and hidden from view. All units will have 3m high roller shutter doors, mezzanine floors, small kitchens and toilets – and parking on a ratio of 1,25 bays per 100m2.
To gain a realistic idea of how the project will look, see www.theepicbusinesspark.co.za.
Sales are being handled by in-house consultant Annamarie du Bois who can be contacted on 021 713 3012 or 083 444 2409.
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18 December 2008, 10:03:47
The decision on 11th December to drop the interest rate by 0,5% is the first swallow that heralds the coming summer in the residential property sector, says Bill Rawson, Chairman of Rawson Properties - but, he added, those naïve enough to think that a full-scale boom in the property sector is imminent had better think again. By his estimate, unit sales will probably rise only some 20% in 2009.
“The good news of recent weeks,” he said, “is that inflation has dropped from 13,6% to 12,4% and is still on the way down. This is at least in part due to the far lower price of oil, a major contributor to high inflation.
“Equally important, now that the South African Reserve Bank has decided after many years of discussion on the matter to institute new methods of calculating the CPIX inflation basket, we can expect the inflation rate, whatever its level, to be dropped by a further 2%.”
This, in effect, said Rawson, means that by mid-year in 2009 the inflation rate could be close to the upper target figure of 6% and within it by the end of the year.
In the light of these expectations, said Rawson, he (and others) look forward to 0,5% drops in the interest rate in the year to come in February, April, June and later, giving a total fall of 2,5% to 3% before the year end.
“This,” he said, “will stimulate the economy, but it has to be realised that it will not bring about a boom of the kind we have recently been through. Rather, as I see it, it will usher in a return to the traditional trading conditions with which most of us have operated in all our lives.”
The limiting factors in the residential property sector, said Rawson, are that:
· The National Credit Act (which he supports) will continue to make loan approvals difficult – rejections as high as 50% have been seen in some areas.
· The banks themselves have become so risk averse that even within the confines of the National Credit Act they have been extra cautious and this, said Rawson, is unlikely to change until they see far more clearly where the economy is heading.
“It is,” he said, “now the norm for borrowers to have to find a 15 to 20% deposit plus 5% costs. House buying will always be slow under such conditions.”
· Many businesses, now “hammered” by high interest rates and lack of consumer spending, will not show significant profits again before 2010.
· The current labour laws, drawn up in reaction to years of exploitation by employers, are now, said Rawson, weighted far too heavily in favour of the employee - and are a discouragement to entrepreneurs, especially to those contemplating a fast expansion.
· The world economy will need at least a few years to emerge from its current quagmire.
Taking these factors together, said Rawson, 2009 will see a slow but steady improvement, the full benefits of which will not, however, be reaped until 2010.
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18 December 2008, 10:02:26
Estate agents in South Africa are right now looking rather desperately for signs of hope, for indications that a revival in property sales is on the way. However, they are still often not giving the clients the service they expect and this is definitely one factor delaying a full-scale recovery in the residential property sector.
This down-to-earth message was given by Bill Rawson, Chairman of Rawson Properties, to some 250 agents at a Rawson Group end-of-year function.
“Seven years of boom or near-boom conditions,” said Rawson, “have resulted in some agents expecting business to come knocking at their door. The reality, as those of us who have been in this game know only too well, is that in the sort of conditions we are now experiencing you have to get out, market yourself and find new business.”
Even in the present conditions, he added, some property transactions will always take place because, like food and transport, a home is one of the basic necessities of life. However, the market right now has shrunk by 60% and only those agents continually hunting for new opportunities will make a satisfactory living.
Rawson went on to say that maintaining regular communication with clients always was, and remains, one of the keys to success.
“If there is one fault that is fatal to an agent’s reputation and success,” he said, “it is to neglect the regular feedback reports that clients expect. You simply cannot work in residential real estate if you find this highly necessary service irksome or troublesome.”
Rawson added that while there is always a tendency to glorify the past and to think that “we somehow did it better”, the agents of yesteryear were more punctilious about maintaining contact with their clients - by telephone, fax and regular direct contact. With email, he said, this is far easier and even more necessary than previously.
The second most common fault today, said Rawson, is for agents to allow themselves to be browbeaten into accepting prices that they in fact know are too high.
“In a group like Rawson Properties,” he said, “it takes only a day or two to learn how to compile and assess the data you need for an accurate valuation. Once you know how to do this it is essential that you stick to your guns and explain your reasoning to your client. Unless he is totally obdurate, he will respect you for it. Overpricing has been the bugbear of the industry for at least a year now.”
Clients, added Rawson, should not be reluctant to give agents sole mandates if they want top performance from them.
“Only with a sole mandate can the agent know that the effort and money he spends on the marketing effort has a reasonable chance of being recovered. It is disheartening, to say the least, when sole mandates are not awarded, to see another agent scoop a sale on which a conscientious agent may have spent a great deal of money and time and on which he may be very close to success.”
Rawson went on to list a number of reasons for renewed optimism in the residential property sector right now. These will be published shortly on the www.rawsonfranchisees.co.za online newsletter and in the form of a press release.
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18 December 2008, 09:44:21
ADVICE TO UPCOUNTRY AND FOREIGN PROPERTY BUYERS HOPING TO BUY AT THE CAPE: TREAD WARILY
Now that the overseas and upcountry visitors are once again much in evidence all over Cape Town, the Cape Peninsula and further afield, the traditional estate agency tactic of trying to lure some of them into buying property here is once again apparent.
Advertisements aimed specifically at visitors are now cropping up in the local press and one agent has even gone so far as to advertise himself as, “the recognised expert in helping non-Capetonians establish a foothold in this sought after area”.
Lanice Steward, MD of Anne Porter Knight Frank, one of the smaller agencies which has grown exponentially in the last five years, warns that it is very easy for out-of-town people and those accustomed to different real estate marketing practices to find themselves completely at sea when dealing with a local agent.
“The first pitfall to avoid,” she said, “is being talked into to accepting an unrealistic price. People from as near as Paarl and Worcester have fallen into this trap - so you can imagine how difficult it is for those who come from further afield to assess the real current market value of a property.”
It can, said Steward, be helpful to insist on the agent drawing up a list of similar properties recently sold or still on the market so that the potential buyer can compare prices. However, she warned, even this can be misleading because it is only seldom that the buyer is genuinely comparing apples with apples. It is quite possible, she said, for an agent, without any conscious intention of cheating, to select only those properties which are slightly better than the one he is selling, giving the misleading idea that the property is in fact competitively priced.
Then, too, said Steward, out-of-towners can easily be led to believe that this or that area is up and coming, i.e. has some of the fastest growing values in the area.
“In many cases this is a very good reason for buying,” said Steward, “and at APKF we have been successful in recommending clients to buy in areas which later blossom, for example De Waterkant. However, it is quite clear that some agents have got their predictions wrong and have recommended areas in which no boom has subsequently taken place.”
Another mistake made by non-Capetonians, said Steward, is to team up with small freelance operators, many of whom have minimal experience in property and may in fact be fly-by-nights. Some, she said, do not even have their Fidelity Fund Certificates or any stock of their own.
“Here,” said Steward, “the tactic is often to interest the client in another agent’s property and then, having done none of the paper work or any of the canvassing for the property, to insist on being paid half the commission if and when it sells.”
Steward’s advice, therefore, is never to deal with an agent who does not have the now obligatory educational qualifications or the Fidelity Fund Certificate and, if possible, to deal with an agency which has an established track record.
“In the end,” she said, “it always pays to do your own investigations of the market. Take the trouble to consult other agencies and other experts on prices and price movements. Look at what is happening in adjacent areas and make sure that your agent has given you a comprehensive picture of what is taking place in the area you favour.”
The sort of questions that should be asked, she said, are, are any road works or road changes planned, what possible developments could follow and how serious is crime in this area.
It may be invidious to mention it, added Steward, but in these tough economic times the established, branded agents are finding that they are trusted and selected ahead of the newcomers and the small freelance operators.
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15 December 2008, 13:45:02
Now is the time to buy property on the KZN South Coast, where bargains currently abound.
That’s the opinion of several Homenet principals with offices in the area, who note that properties in the popular holiday destinations of Margate, Pennington and Scottburgh in particular are offering “never-to-be-repeated” value right now.
Joe Foxcroft, principal of Homenet Hibiscus in Margate, says properties priced below R1,2m are currently in highest demand and that about 40% of sales on his books are investment purchases, many made with cash.
The flourishing rental market in Margate is boosting investor confidence, with rentals currently averaging around R4500pm for a three-bedroom house, depending on the view and locality.
In Pennington, property sales have tapered off somewhat but investor confidence is rallying says local Homenet principal Des Robb. Properties under R1m are moving well again and two new developments are poised to give the area a shot in the arm.
Pen Valley Estates is complete and already has a clubhouse up and running. Twelve homes have also been built and the nine-hole golf course is already open to golf fundis. Stands measuring 600sqm’s are selling for R450 000 and fully developed stands for R1,6m.
The other development is Rovadale at which only seven stands measuring between 600 and 900sqm have been made available. Prices start at R350 000 and all services are already in place as well as an electric fence and gate.
‘Another positive indicator going forward is the strong holiday rental market,” says Robb. We were concerned that this segment of the market would slump but it has remained surprisingly robust. Most holiday lets for this year are fully booked and are being rented for between R700 and R1000 a day.”
In Scottburgh, holiday lets have decreased but permanent rentals have increased, says Rudy Naiker, principal of Homenet Scottburgh.
Homes are letting for between R3500 and R4500 a month and those priced at less than R1m are also selling relatively well.
ISSUED BY HOMENET
FOR MORE INFORMATION CALL
JOE FOXCROFT ON 039-312 2411
DES ROBB ON 039-975 1105
RUDY NAIKER ON 039-976 1330
OR VISIT
www.homenet.co.za
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15 December 2008, 13:03:24
The Newlands rugby ground – if it ever comes up for sale would cost at least R115 million
Speculation is growing that rugby could be played at the new Green Point Stadium after 2010. If so, what will happen to the Newlands Rugby grounds? What would their value be if sold for residential development purposes?
Paul Henry, a director of Rawson Developers, and his team have done some homework on this – and to unlock the highest potential value they have calculated their figures on the maximum achievable density possible on the site.
“We assume,” said Henry, “that the Council would consider seriously high rise blocks of residential apartments and offices. This is, of course, only one route they could go.”
Henry said that his investigation had been set in motion by the purchase by his company of a 20 000m2 site a few hundred metres from Newlands (for a price of R32 million). On this Rawsons hope to build 260 apartments in 13 blocks, two and three storeys high. He had also, he said, heard reports that some form of large-scale development at Newlands has been proposed to the city leaders.
“In our investigation,” he said, “we assumed that and area of some 43 770m2 could eventually be covered by perhaps 400 apartments in blocks of varying sizes.”
A development of the hallowed rugby grounds would, said Henry, be certain to raise objections from the local community, the Heritage officials, conservation officials and, of course, almost every Protea and Western Cape rugby supporter.
“The plain fact is, however, that Cape Town probably does not need two facilities of such a high standard as the new Green Point stadium and the Newlands grounds – but it will take a lot to convince our rugby public of that.”
Rawson Developers, said Henry, have to tread warily on their own project proposals because a development of this size in an already developed area tends to be controversial and nearby property owners have a constitutional right to object to rezoning for development purposes.
However, said Henry, the public also has to accept that densification and growth of already-developed areas are inevitable. Worldwide, he said, this is the trend.
“With densification,” he said, “traffic congestion will always be a major concern. Many of the streets in the older southern suburbs were designed for horse drawn transport. Redevelopment (on the scale envisaged by a possible takeover of Newlands) will call for a complete rethink on transport matters and, ultimately, systems which actually reduce the number of cars in the area.”
In most cases, said Henry, Cape Town, Johannesburg and Durban supports redevelopment proposals for large land parcels in already serviced areas. The developers, however, make a big contribution to the related infrastructure at Cape Town by paying to the Council a bulk services levy of R10,000 to R35,000 for every development opportunity created.
“Every ten fairly inexpensive sectional title apartments can, therefore, add ±R350,000 to the developer’s costs but this contribution can make a real difference to the transformation – and ultimate improvement of – the whole precinct.
The Newlands redevelopment into a residential precinct, he said, would involve a land cost of between R115 and R125 million – by his estimate.
For further information contact Paul Henry on 021 658 7100 or email paul@rawson-developers.co.za.
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15 December 2008, 13:00:32
One of the most sought-after bushveld developments, Intaba Indle near Bela-Bela, is now offering fractional ownership.
The 496ha wilderness estate consists of about 100 full-title stands and 10 fractional units are now on sale to buyers who want to own a piece of the bushveld for holiday breaks, says Annelie Botha of Aida Warmbaths, which markets the units.
“Intaba Indle is regarded as one of the premier bushveld estates. A wide variety of game roams the extensive estate, set against the Waterberg, but there are no predators, which allows owners to freely explore the grounds on foot or mountain bike,” she says.
Game includes kudu, eland, giraffe and small antelope as well as a variety of bird species, including water birds that can be viewed at the large dam on the estate.
The fractional units, the first of which were completed at the end of October, are being sold in blocks of four weeks per year at a price of R295 000.
The three-bedroom units each sleep six and include two en-suite bathrooms as well as a guest bathroom on the second floor. A large open-plan living area on the ground floor leads through sliding doors to a private boma with braai facilities and a private swimming pool. The double garage is designed to accommodate a table tennis table.
Botha adds that the units sport thatch roofs to blend in with the natural surroundings. Each unit is being tastefully decorated and fully furnished. The estate will offer property management services and all units will be fully serviced by cleaning staff.
Full-title properties in Intaba Indle are selling from around R3m and up. Botha says these units are set on stands of around 1ha and most homes exceed floor space of 400sqm.
Issued by Aida National Franchises
Aida head office: 012 682 9600
Contact: Young Carr
Aida Warmbaths: 014 736 4848
Contact: Annelie Botha
The entrance to Intaba Indle, where new fractional title units are on sale.
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15 December 2008, 12:58:37
A holiday home in Blaauwberg on the Western Cape Coast for as little as R450 000! That’s indicative of the bargains revealed by a straw poll of coastal property this festive season.
Helene Visser of ERA Steer Blaauwberg says that price will buy you a two-bed sectional title unit in a security complex. “It may not be grand but it does indicate how prices have softened.”
In the R1m bracket, she quotes Parklands and Tableview as areas where bargains are to be had. Ideally, she says, buyers should have cash as rentals will generally not cover a geared bond if they want to let the property out.
Nick Hill of ERA Atlantic Seaboard says prices in the City Bowl and Atlantic seaboard are holding. However in Woodstock, Observatory and University Estates, entry level prices are around the R700 000 mark. Gautengers are in the market but there is “no mad rush” of overseas buyers despite the softer rand.
On the Garden Route, Sedgefield offers real value right now. ERA National’s Henning Swanepoel says chic apartments with great rental potential are available from R490 000 and a family home a stroll away from the beach is selling for R750 000. “It’s definitely a buyers’ market,” he says.
At Wilderness, prices are “sheer joy ” this year – a compact home with all the mod cons is on the market for R1,395m and a superb four-bed home with magnificent finishes and sea views is going for R3,9m.
At Mossel Bay, Swanepoel says, there are real opportunities for discerning investors. A large house in Dana Bay selling for R1,6m will get you a fixed rental of R9000pm and at Hartenbos a three-bed, two-bath apartment within walking distance of the beach is selling for R795 000.
In Port Elizabeth, Vanessa Sutherland of ERA Sun Port Elizabeth says vacant land offers good value. A 700sqm plot with a sea view will cost you
R500 000 to R600 000.
PE’s South End, North End and Kensington (where you can pick up a property for around R300 000) offer real bargains, while in high-end markets such as Humewood, Summerstrand and Lovemore Heights, homes are currently priced at 20% to 30% below true market value.
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Eracoastal 2 last
In East London, Ascot Park and Beacon Bay offer new three-bed townhouses for R950 000 and in Stirling you can pick up a three-bed family home for R1,25m, says ERA Sun East London’s Roy Taylor.
In Durban’s centrally situated Berea area, ERA Berea North’s Rishaad Mohamed says sellers have knocked off about a third of asking prices. “Sellers who have been hanging on are now perhaps more ready to negotiate and the bargains are appearing,” he says.
On the KZN North Coast, ERA Unique St Lucia’s Rene Baumann says that despite the upmarket image of Ballito, you can acquire a two-bed, one-bath sectional title unit for around R700 000.
Further up the coast at popular Mtunzini, a unit in a complex will cost you around R680 000 to R800 000, while a three-bed home on the agency’s books is going for R1,2m. And At Richards Bay you can expect to pay around R950 000 for a four-bed home while a sectional title unit will cost you from R700 000 to R860 000.
Issued by ERA South Africa
For further comment call
Gerhard Kotzé ON
012 682 9610 or visit
www.era.co.za
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15 December 2008, 12:55:13
The latest lifestyle estate to be launched in Midrand, Carlswald Creek is specifically tailored to meet the needs of young, up-and-coming professionals and has been well received by this sector of the market.
So says Annelie Steynberg of marketing agency Homenet Pretor, who notes that the first phase of the estate is already 90% sold out.
A development by VCR Property Projects, Carlswald Creek is located alongside the Summerset and Carlswald North estates, and offers a range of accommodation types from 84sqm duplexes with two bedrooms, one bathroom and a single garage to 151sqm duplexes with three bedrooms, two bathrooms and a double garage.
Each home comes with its own private garden and prices range between R595 000 and R980 000. Bond and transfer costs are included in the purchase price and buyers can choose from a range of finishes and floorplans.
“Demand for such properties is increasing rapidly,” says Steynberg. “Buyers are looking for convenient, well situated and secure properties which aren’t going to break the bank or compromise on quality.”
The development is centrally situated and enjoys close proximity to a variety of quality private and public schools and a number of commercial nodes as well as the Carlswald Lifestyle shopping centre complete with entertainment facilities and restaurants.
Security provisions include a solid perimeter wall topped by an electric fence, a CCTV surveillance system and controlled access through a guarded gatehouse, as well as a Guardian panic and assist system with panic buttons in each home.
ISSUED BY HOMENET
FOR MORE INFORMATION CALL
ANNELIE STEYNBERG ON
082 4440 979 OR VISIT
www.vcrproperties.co.za
The entrance to Carlswald Creek estate in Midrand, where units costing between R595 000 and R980 000 are on sale through Homenet Pretor.
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11 December 2008, 13:07:06
If you must sell your home, sell it now as the market is not going to improve for at least another year.
That’s the word from Lew Geffen, chairman of Sotheby’s International Realty in SA, who says that homeowners who really have to sell at this stage should “take the money and run” if they get a serious offer of any kind. “They should definitely not hold out in the hope of higher offers in the next few months as the market is going to get worse before it gets better.
“It is also not advisable for owners who have to move to try to rent out their existing homes now and delay the sale in the hope that prices will rise significantly over the next year. For a start, rentals are under pressure at the moment because there is an excess of stock and tenants are bargain hunting, so whatever rental income it might be possible to generate is highly unlikely to cover the mounting holding costs on the property.
“Secondly, home prices have now started to show a decline even in nominal terms and are set to go through a further dip before any interest rate drops start to have an upwards effect. It takes nine months for changes in interest rates to kick in, so the likelihood is that prices will not be much higher at this time next year than they are now.”
Obviously, says Geffen, it would be better for homeowners to ride out the current downturn and only think about selling again in 2010, but there are always those that simply have to sell, in order to relocate, downscale or perhaps emigrate.
“It’s also a matter of relativity – if you sell low, you buy low too. And if you upgrade in this market you will score because, when the market firms, you will benefit more proportionally on the more expensive property.
“Meanwhile, the competition for buyers is fierce. The average number of listings we put on our books each month is 13% higher now than at the start of the year, while the average number of sales concluded is 40% down. Listing times are also longer and it is notoriously difficult for buyers to get finance.
“Consequently, homeowners who are forced to sell now need to be very particular when awarding a mandate. They need to choose a top-notch agency that has access to exceptional marketing resources to showcase their property in SA and internationally.
“Then they need to listen very carefully to their agent’s advice when it comes to setting a market-related asking price that will attract the highest number of potential buyers and finally, they need to be prepared to make a quick decision when they receive their first serious offer.”
ISSUED BY
LEW GEFFEN SOTHEBY’S INTERNATIONAL REALTY
FOR MORE INFORMATION
CALL LEW GEFFEN
AT (011) 886-8070
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11 December 2008, 08:08:41
The residential property market in Pretoria North and surrounds is being suppressed by lending institutions in spite of renewed demand.
Anemi Leach of the local RealNet office says demand has climbed, yet two out of three credit applicants are being turned down. “In many instances banks require cash deposits of up to 30 percent before they will grant loans. But for many prospective buyers, this threshold is simply too high.”
She says there is currently good stock availability in Soshanguve where buyers generally target three-bedroom homes in the R250 000 to R350 000 bracket. There is also still demand for larger homes with up to five bedrooms and these units are often converted to guesthouses because of growing demand for overnight accommodation.
Stock levels in nearby suburbs such as Florauna, Amandasig and Ninapark are also high since owners who have thus far managed to keep up with higher bond repayments are starting to struggle because of higher living costs.
Leach says there are now good buys in these areas, with many sellers willing to accept prices that will cover their outstanding bonds. Prices generally start at about R900 000. “This represents excellent value since many properties here compare favourably to those in upmarket suburbs such as Waterkloof. Homes are generally set in lush gardens thanks to the tropical climate, while the Magaliesberg forms a dramatic backdrop.”
Properties in the Orchards and Akasia areas arguably offer even better value. Three-bedroom homes with double facilities and swimming pools are currently selling here from about R650 000.
Leach says commercial development has boosted Akasia’s popularity. “Commercial activity is anchored by the extensive Wonderpark shopping centre and new restaurants are being opened. There are now also signs of densification with the first high-rise development in the area having been completed recently. Bachelor units in this development sell from R300 000 while two-bedroom units sell from R500 000.”
Prices of smallholdings in Heatherdale between Akasia and Pretoria North range between R2m and R4m for holdings of between 1ha and 4ha.
Issued by RealNet
For further information call
Anemi Leach at
RealNet Pretoria North on
012 549 0151 or visit
www.realnet.co.za
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11 December 2008, 08:07:58
Young professionals, notably from Pretoria’s Old East suburbs, are targeting security estates near Midrand.
Lynette Gregorowski of RealNet Midrand Estates says the secure lifestyle made possible by estates such as Midstream, Midfield and Midlands is the main attraction among this class of buyer. “They have typically made their mark in their chosen professions and are now starting families – and they want a secure environment for themselves and their children,” she says.
Security measures at the three estates include weekly helicopter patrols of the perimeter, biometric access control and electrified fences.
“The excellent reputation of the parallel medium private school, Midstream College, which caters for pre-schoolers to matriculants, is another big attraction. The intake in just the primary school for 2009 now tops 1200,” Gregorowski says.
The estates are centrally located 27km from Sandton and about 21km from Pretoria’s Menlyn shopping centre while a new shopping centre opened in the Midstream Estate in April.
Although sales at the estates have been ticking over this year in spite of a slower market, Gregorowski says activity picked up markedly in September. “Interest rates do not play a significant role among this group of buyers – indeed many of them have sold existing properties in upmarket suburbs and typically offer substantial deposits – but many seem to have waited for the market to allow them greater opportunities for price negotiation.”
She adds that buyers in the area now have a margin of up to 10% with regard to price negotiation.
Properties in the R2m to R2,5m price range are popular and are typically 350sqm homes with three bedrooms, a study, staff quarters and garaging on 1000sqm stands.
Issued by RealNet
For further information call
Lynette Gregorowski at
RealNet Midrand Estates on
012 661 1863 or 083 543 5246
or visit www.realnet.co.za
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11 December 2008, 08:07:16
Summer has brought cheer to the property market in the quaint holiday and fishing town of Struisbaai near the southernmost tip of Africa.
Comine du Toit of the local Aida office reports that the market started turning at the beginning of October thanks to increased enquiries from buyers from Gauteng, the Free State and Cape Town looking for holiday properties.
“There is also an upswing in the number of retirees who have chosen Struisbaai as their preferred retirement home thanks to Struisbaai’s peaceful atmosphere, beauty and lack of crime,” she adds.
“An interesting feature is that many buy with cash, which facilitates quick sales,” she says.
Vacant stands, ranging in price from about R300 000 to R2m depending on view and location, are also again finding favour among investors, while units in new developments find ready buyers. Du Toit says only five out of 31 units in The Tides, a new development in the Greek Mediterranean style, remain unsold. The two-bedroom, two-bathroom units are selling at R900 000.
Larger three-bedroom homes with double facilities sell from around R1,5m while properties with sea views command prices of up to R2,5m. Top beachfront properties sell for up to R5m, while B&B establishments with conference facilities reach prices of around R4,5m
Du Toit adds that plans for a new golf development, the Agulhas Golf Links, have been approved and the development is expected to add to the cachet of a Struisbaai address.
“The village is a popular holiday spot thanks to its safe swimming beach, excellent line and deep-sea fishing, and small harbour where small fishing vessels are launched daily by the local fishermen who still make a living from the sea.”
As part of Aida’s 50th anniversary celebrations the Struisbaai office will organise a fun run just before Christmas and proceeds from entry fees will be donated to the local hospice.
Issued by Aida National Franchises
Aida head office: 012 682 9600
Contact: Young Carr
Aida Struisbaai: 028 435 7400
Contact: Comine du Toit
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11 December 2008, 08:05:28
Greeff: Rising Confidence In Southern Suburbs Property Is Now Evident
Mike Greeff, CEO of the company, told UK visitors this week that March to June had seen his company’s sales hit their lowest levels since 2005. However, July to September then showed on average 22% increase over the March to June period, with October and November showing a 42% upturn in comparison to the earlier period.
What is more, says Greeff, there are clear signs that the improved sales turnover will continue through the summer.
“I think,” he said, “that we are now into a scenario in which there is renewed confidence in property. People are saying, “If we had had more of our portfolio in property we would have fared better” – and that is true.”
Greeff said that factors which, in his view, are underpinning this confidence are the perceptions that:
· With five substantial parties in parliament our new democracy will be strengthened and the ruling party will be more vulnerable and have to be sensitive to the people’s real needs.
· Eskom’s problems seem now to be better managed and not as disastrous as originally feared.
· Inflation, now at 12.4%, is being brought under control and will be kept in check by lower oil prices and more efficient credit control (through the NCA and the banks’ tightening up).
· As a corollary to this the public has come to terms with the new Credit Act and is starting to pick up a healthy “save-first” attitude.
· The global financial crisis has impacted far less on SA than on the First World countries.
· The Zimbabwe disaster, although serious, has not affected SA as much as some feared it would, and
· The international terrorism threat has not affected SA. We do have crime issues that need to be sorted out urgently, but this does not have as negative an effect as broad scale terrorism,” said Greeff.
“Six months ago,” he added, “many people were looking at emigrating. With the rand at its current low levels, that is now discussed far less: we are instead seeing people getting on with their lives and investing in property. A number of expats are coming back because of the world financial crisis and job losses.”
The upturn in property confidence in the Southern Suburbs and the border of Cape Town, he said, had been helped by improved rentals on residential property, which, he says, have risen by 10 to15% this year.
Graham Leslie, MD of Greeff Properties, predicts that by late February the interest rate will have come down by 1% to 1,5%. This, he expects, will put the whole residential market onto a good wicket and will result in a slow, but steady, return to satisfactory trading in the third and fourth quarters of 2009.
“Now, therefore, would be a good time to buy,” said Leslie. “We do not believe prices will fall further from now on.”
For further information contact Mike Greeff on 021 763 4120 or email info@greeff.co.za.
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11 December 2008, 08:04:28
Phalaborwa, the quiet northern bushveld town bordering the Kruger National Park, is a hot favourite among investors who are buying retirement property.
Lelani Stucki of the local Aïda office reports that interest among this type of investor has picked up since the beginning of November and that she expects a busy holiday season.
“There are good bargains to be had right now as prices are under pressure and a number of properties are being offered on bank auction. Lifestyle and retirement buyers are, however, very selective and besides good value, they are in the market for home comforts. Because of the hot bushveld climate, pools and air conditioning are not negotiable as far as they are concerned.”
Stucki adds that apart from the balmy winter temperatures, the proximity of the Kruger National Park and Mozambique and the rural atmosphere of Phalaborwa act as incentives for this type of buyer.
“The Phalaborwa gate to Kruger is just minutes from the town centre. The Mozambique border post is only an 80km trip through the park and the Mozambique coastline is about 250km away,” she says. “Hoedspruit, famed for its scenery and wildlife, is an easy 1-hour trip away.”
Many of the investors buying units for their own retirement or for holidays come from Gauteng and they typically target properties from about R900 000, she says.
Meanwhile, guesthouses and lodges around town are reporting brisk business at the start of the summer holidays. Lodges around the famous Hans Merensky golf course, where warthogs and other game are wont to wander, are particularly popular among tourists. Rates average R2800 per night for units with up to four bedrooms and some units are for sale at prices ranging from R2,8m to R4m.
Stucki says that local buyers are quite active in the price range from R400 000 to R600 000. “Many are first-time buyers employed at the local mines and are buying basic family homes.”
Issued by Aida National Franchises
Aida head office: 012 682 9600
Contact: Young Carr
Aida Phalaborwa: 015 781 7930
Contact: Lelani Stucki
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11 December 2008, 08:03:47
Just launched, the Santomar boutique cluster development offers just five luxury cluster homes to discerning buyers.
Situated in the heart of Upper Bedfordview at the corner of Dean and Van Buuren roads, the development is close to excellent schools and within easy reach of upmarket shops, the OR Thambo airport and freeway routes to all parts of greater Johannesburg.
Michael Pompa of marketers Wanda Bollo Nationlink says the five homes in Santomar have been designed by New Age Architects in a modern classic style and that all will feature a selection of international finishes for buyers to choose from.
“These exclusive homes all have three reception rooms, three or four bedrooms and study or guest room with en-suite bathrooms, state-of-the-art kitchens, staff quarters and at least two garages,” he says.
“Developed by the well-known and highly respected Santos Group, they range in size from 420 to 450sqm on stands of between 750sqm and 1000 sqm. And prices range from the mid R4-millions to the early R5-millions, which is highly competitive for this area.”
Bedfordview has long been the area of choice for some of the wealthiest homeowners in the country, and in recent years it has also gained renown for luxury cluster developments like Santomar, which offer a desirable combination of security and privacy and are low-maintenance compared to the area’s traditional freehold homes.
Indeed, says Pompa, cluster homes are the top sellers in Bedfordview at the moment, especially among established professionals and business executives. Such homes vary in price from around R3m at entry level right up to up to R12m, so those in Santomar are great value for money.
* For more information call Michael Pompa on 072-239-3396 or visit www.wandabollo.co.za
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11 December 2008, 08:03:06
A favourite coastal retreat, Plettenberg Bay is poised for a good holiday season at year-end.
So says John Fuller, principal of the local Chas Everitt International franchise who notes that most holiday rental properties in the town are already booked out for the duration of the Christmas season.
There is high demand from landlocked South Africans and foreigners alike and rentals range from R1500 a day for a typical holiday flat to R13 000 a day and more for luxury homes. A case in point is a local celebrity sport star’s home which is available to rent for R15 000 a day but which can accommodate up to 16 people at a time.
“Prospects for the upcoming season are good,” says Fuller. “All our rental stock at the Goose Valley Golf Estate is fully booked and the town is prepped to cater to the influx of holidaymakers.”
In anticipation of a busy year-end, the town has put together an exciting “Summer Campaign” which will run from 15 December to 15 January. Events include a street party, late night shopping, craft markets, beach activities and a number of sporting events such as the Sabrina Love Ocean Challenge, the Rat Race Media TransAgulhas inflatable boat race and the Kurland International Polo tournament.
Visitors will also undoubtedly appreciate the improvements made to Plett’s main street where a year-long upgrade has finally been finished. Shopfronts have been revamped, outdoor seating provided, indigenous plants placed throughout and a nautical theme employed.
And rentals aside, the Plett property market has been enjoying fairly buoyant conditions of late, says Fuller. Golf course apartments priced between R900 000 and R2m are selling well to foreigners who typically stay for the summer months, and freehold homes priced between R1,5m and R2,5m are selling reasonably well to locals.
Unsurprisingly, properties in the higher price categories of R6m and more are moving slowly with the majority of these buyers opting to retain rather than sell at this juncture.
ISSUED BY CHAS EVERITT
FOR MORE INFORMATION CALL
JOHN FULLER ON
044 533 5250 OR VISIT
www.everitt-plett.co.za
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11 December 2008, 08:02:23
Affordable, quality homes are being made available to first-time homebuyers in a new development in Pietermaritzburg.
Albie Timmerman, principal of marketing agency Homenet 1st Realtors, says The Ridge offers those starting out in life the opportunity to purchase homes of a high standard without breaking the bank.
Situated on the outskirts of the picturesque Panorama Gardens, The Ridge is within easy access of all major amenities as well a number of fine schools. The development, which is being built by Cornerstone Projects, already has a show house and the basic infrastructure is being put in place.
Each home will feature three bedrooms, two bathrooms and a fitted kitchen and have wooden windows and moulded cornices. Parking is ample and the entire complex will be access controlled. Floor sizes vary between 70sqm and 100sqm with prices starting at R485 000, and residents have a variety of designs from which to choose.
The Ridge offers great value for money, says Timmerman. “The National Credit Act created a vacuum, leaving much of the emerging market with very few options but The Ridge offers constrained buyers a step on to the property ladder.”
Further sweetening the appeal of the development says Timmerman, is the fact that no transfer duties will be charged. Additionally, the first 10 buyers will receive a R1500 electrical appliances voucher.
In general, the Pietermaritzburg property market is faring relatively well however there is definitely room for improvement says Timmerman. Buyer activity is up and many perceive the city to be a family-friendly one, with crime being relatively low. “Property for the emerging market is thin on the ground, hence we expect The Ridge to be well received.”
ISSUED BY HOMENET
FOR MORE INFORMATION CALL
ALBIE TIMMERMAN ON
082 553 9921 OR VISIT
www.homenet.co.za
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11 December 2008, 08:01:32
After the long and wet winter, enquiries about properties for sale in the Western Cape have risen dramatically since October – in some cases by as much as 400 percent.
Karl Marais, regional manager for the RealNet property group, reports that the group’s offices have seen an average increase of 150% in the number of enquiries received from prospective buyers. “Some regions such as Mitchells Plain and Kuils River notched up an increase of around 30% while our office in Stellenbosch reports an increase of 400%.”
The figure for Stellenbosch was boosted by parents investing in property to accommodate their children who have enrolled at the local university for the next academic year. “Many parents view student accommodation as an excellent investment that will yield profits when the property is onsold once their children have completed their studies.”
The weather, however, exerted a major influence on the market this year during early spring, Marais adds. “This year the Cape experienced the highest rainfall for September in the past 51 years and the general consensus among conveyancing attorneys, bond originators, banks and estate agents is that both interest among buyers and sales in spring this year was below par when compared to the trend for the same period last year.”
“The sunnier weather since October, however, released pent-up demand, which partly accounts for the sudden flurry of activity,” he says.
Attendance at show houses, he adds, has more than doubled in the past month and interested buyers are keeping viewing appointments whereas heavy rain led to many cancellations during the winter and the start of spring. “All in all, the drier weather conditions have definitely elevated activity levels as well as the mood in the local market.”
Issued by RealNet
For further comment call
Karl Marais on
021 856 3364 or visit
www.realnet.co.za
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10 December 2008, 08:29:01
Consumer spending has fallen for the first time in almost ten years, according to the SA Reserve Bank's December Quarterly Bulletin published on Tuesday.
"Real final consumption expenditure by households declined at an annualised rate of 0.8 per cent in the third quarter of 2008.
"This was the first contraction since the fourth quarter of 1998," the bank said.
The data will allow space for the bank to cut interest rates this week.
"Yes, the consumer spending data allows room for a cut," said T-SEC economist Mike Schussler.
"We're getting a clear idea that the economy is continuing to slow down – and I think the bank will cut the repo rate by 50 basis points," Schussler said.
"The bank will start off mildly when cutting rates – but the cuts could get bigger later on.
"Governor Mboweni is a bit concerned about the effects of cuts on the rand – and this is something he's also made clear in the Quarterly Bulletin," Schussler said.
The bank has increased the repo rate six times since the middle of 2007, causing consumers to curb spending but also causing the country's economic growth to slow.
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09 December 2008, 08:06:04
Property sales in South Africa have ground to a halt but experts are prediciting that when they start to recover they could rise more than 50 percent in three years.
The next three months will offer some bargain prices when those who want to invest in the longer term can pick up some good property that will sell well in the future, according to the latest report from Chas Everitt international which has offices throughout South Africa.
"You make money when you buy property, not when you sell and we believe that the next few months will present the best buying opportunities for shrewd property investors to make the most money when the property market recovers," said spokesman Berry Everitt.
"It may be contra-intuitive to buy now, when the property market is in a downturn, but property prices are predicted to rise by 50 to 60 percent over the next three years and those who delay now will make relatively smaller returns on their property investments," he added.
Although price growth has slowed almost to a halt while interest rates appear to have peaked, there is already increasing demand as indicated by rising sale activity since August and this will intensify when interest rates start to fall next year, the company report shows.
"At that point stock levels will really start to drop and prices will start to rise, which means that there is a window of opportunity to negotiate the best deals of just a few months. Looking back in three years' time, investors will recognize this as the turning point of the market," Everitt predicts.
The report predicts that the best buys are likely to be in the medium-price, medium-size sector of the market, where price growth is currently at its lowest ebb and the high numbers of homes for sale make it possible to secure excellent value for money.
"Such homes are also likely to experience the highest level of demand when the economy turns and many middle-class families who are currently making do in rented accommodation or smaller homes can once again qualify for home loans and start looking for homes of their own or upgrades," he concludes.
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08 December 2008, 13:05:54
A new tarred road that will improve access to Gansbaai is set to dramatically increase tourism to the quiet seaside town.
The new road, currently under construction, will cut the distance between Gansbaai and Cape Agulhas by more than 50 percent, says Ewald Langeveld of the local Aida office.
“We expect the new road will benefit the local property market. The greater Gansbaai area that stretches from De Kelders to Perlemoenbaai, has seen intense development in the past four to five years as buyers overflow from the fully developed market in popular Hermanus,” he says, “and better access to the many villages dotted along the new route will probably accelerate this trend.
“Gansbaai has been identified as a growth point along this stretch of coastline and a new soccer and sport stadium that will be used by international teams to prepare for the 2010 Soccer World Cup is under construction. While it will showcase the area to international visitors during the tournament, it will also benefit the local community for years to come.”
Langeveld adds that there is currently a high level of residential and holiday properties available. “Many sellers are willing to negotiate and there is now good value to be had. Holiday units with two bedrooms in older areas, for instance, are selling from about R700 000 while prices of luxury units reach levels of up to R5m.”
Vacant stands are arguably an excellent investment at the moment. Langeveld says stands of about 600sqm cost from around R300 000 and there are virtually no time limits to start building. “Local building costs range from R3500 to R4500/sqm depending on finishes. Whether stands are to be developed or not, we expect prices to rise in tandem with the expected inflow of buyers.”
Gansbaai is famed for its quiet seaside atmosphere and is a popular home base among tourists who want to view Great White Sharks off the coast or visit the nearby seal colony at Dyer Island.
Issued by Aida National Franchises
Aida head office: 012 682 9600
Contact: Young Carr
Aida Gansbaai: 028 384 1303
Contact: Ewald Langeveld
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05 December 2008, 11:54:52
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Edition 47 of 2008, Friday, 05 December 2008
Dear Reader
 The IPD released the results for the SAPOA/IDP South African Biannual Property Indicator, the first ever, for the first six months of the year and although there is no comparable report for the previous six months there is a clear indication that Real Estate in South Africa has slowed down. "High interest rates, tighter economic conditions and global uncertainty have all played a part. The 2008 figures due early next year will be very interesting.” This according to Stan Garrun (Pictured right), Managing Director IPD South Africa.
But according to the South Africa’s property specialists it is not all doom and gloom and is there indeed plenty good news to end 2008 with!
 The last few months have clearly shown that South Africa is not protected from or immune to the global financial problems, says Bill Rawson, Chairman of Rawson Properties - and this has implications for the property market; With interest rates set to drop sooner rather than later now is the time to buy property
 “The realistic view is that economic pressure will ease shortly: Interest rates are set to come down, the latest economic figures point to lower inflation, and fuel prices are also heading south. Not only will this put extra money in consumers’ pockets, but it will also strengthen consumer confidence, which will impact greatly on the property market.” Young Carr, CEO of Aida National Franchises; 2009: Market ‘set to improve’
 There’s a new mood of optimism sweeping through the global property market in the wake of the US election outcome, and it’s generating renewed interest in SA real estate. So says Berry Everitt, MD of the Chas Everitt International property group, who notes that European buyers in particular are keen to invest in SA property once more, thanks to the weakness of the rand against their currencies and the relatively low prices. Foreign buyers flowing back to SA
 Among house sellers at this time of the year there is always a tendency to delay putting their homes onto the market until January – but this is a serious mistake, says Lanice Steward, MD of Anne Porter Knight Frank. “Serious buyers,” said Steward, “do not take breaks in their search for a new home – they keep at it until they are satisfied. We have found that the holiday season does not deter for one moment those who are seriously on the lookout for a new place to live”
The history of the discovery of the Free State Goldfields, the most fantastic mineral discovery in South Africa this century, is essentially the history of Welkom, Free State, South Africa for without this world-shattering event Welkom would not have been. The clock must be turned back to the latter years of the nineteenth century when two men, a Mr Donaldson who was a prospector, and a Mr Hinds, an engineer, investigated a portion of the farm called Zoeten-Inval belonging to a Mr Barends Klopper near where the small town of Allanridge is situated today. This was believed to have been in 1896, and the pair were interested in a small outcrop of rock protruding about a foot above the ground and about two feet in length which appeared to be conglomerate pebble reef. A 60 feet pit was excavated and samples collected. The men could raise no interest among mining companies in Johannesburg, which all laughed off the idea of gold in the Free State. Read more in Focus on Welkom, Free State, South Africa
Enjoy!
The editor
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05 December 2008, 07:59:16
Growing Objections To Time Spent Commuting
The last decade has seen a huge increase world-wide in demand for homes that cut down the time spent on commuting – and no doubt this will continue, says Lanice Steward, MD of Anne Porter Knight Frank.
Even in “uncongested” Cape Town, she said, there is now a reluctance to waste time on commuting.
“Just how serious the situation has become in the First World countries,” said Steward, “is evident from the fact that in New York, Tokyo or London it can take four to five hours in peak traffic times to cross the city – but in case people think that South Africa is far less affected, it should be realised that in Johannesburg many people are now spending four hours a day in traffic while others are refusing to take jobs within 15 kilometres of the CBD and some have objected strongly to driving past any area where muggings have become prevalent.”
These objections, said Steward, are not unreasonable: if you spend four hours a day commuting you are, in effect, sacrificing 130 days (or 18 eight hour working weeks) a year to travel. If you spend only two hours a day in your car you are still giving up 65 days a year. Everyone, says Steward, has better things to do with their time than that.
One solution, she added, is to promote work-at-home alternatives but, while these can be useful, it has been shown that people doing this miss the comradeship and the stimulus of a communal work place.
Nor, she said, is CBD living always the dream it is hyped up to be by inner-city developers.
“Obviously it is a huge advantage to be able to walk to work in ten or 15 minutes but as Osbert Lancaster said in his ‘History of Architecture’, tensions and neuroses proliferate among occupants of homes high above the ground and without any daily contact with flowers, grass, trees and the like. It seems we all need a green quite place to which we are able to retreat occasionally.”
For further information contact Lanice Steward on 021 671 9120 or email lanice@anneporter.co.za.
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05 December 2008, 07:58:19
Low-Slung Single Storey Home Bucks The Trend At Bishopscourt
In striving for some sort of Cape vernacular ambience and feel, the designers of Cape Town homes have frequently tended to neglect the obvious suitability of the American single storey spread out ranch-style house for SA conditions. So says Diane Hosty of Anne Porter Knight Frank. Or, she adds, they revert to the solid, often unimaginative, English suburban / country house look which, by and large, is not suited to a Mediterranean climate such as Cape Town’s.
Both the Cape vernacular and the English look, says Hosty are very evident in Bishopscourt. However, one spread out luxury ranch-style home has now come onto the market there – and, in her view, is particularly well suited to our sunny summers and fairly wet winters (the latter having enabled the owners to grow a beautiful garden).
Sited on almost 4,000m2 of land, with clear views of Devil’s Peak and the Kirstenbosch mountains, the home has three bedrooms, three bathrooms, a study and an “enormous” entertainment room which leads onto an outdoor patio and braai area. The roof tiles are grey and the walls white.
“The light-filled open spaces of this home make it a real design gem,” said Lanice Steward, MD of Anne Porter Knight Frank. “It is a sort of house in which a large family can rattle around without in any way impinging on each other’s privacy and in every case the choice of the features and fittings are upmarket and tasteful.”
The listed price of the property, which has just become available, is R8,995,000. This, says Hosty, is a very realistic price in today’s highly competitive market and the home should find a buyer within the next few weeks.
For further information contact Diane Hosty on 082 775 2777 or email info@anneporter.co.za.
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04 December 2008, 16:42:24
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Builders in South Africa have begun construction on a new type of housing for low-income families. The buildings look like conventional homes, but the walls are made with sandbags. Architects say their experimental design is quicker and easier to build. For VOA, Terry FitzPatrick reports from Cape Town.
South Africa builds about 250,000 houses for the poor, every year. But ten homes going up in Freedom Park are a radical departure from standard construction practices.
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 Construction of a sandbag home in South Africa
"This is a drawing plan which we use for construction," said Luyanda Mpahlwa of MMA Architects, who was commissioned by a Cape Town foundation, called the Design Indaba, to develop new ideas for low-cost homes.
"We had to be creative, in terms of finding a different way of building. Because we're all comfortable to say this is how you build today and we don't challenge ourselves to find alternative methods," added Mpahlwa.
The design team's first innovation was to move beyond the standard floor plan of a single-story home. The new layout has two floors. A living room, kitchen and bath are downstairs. Upstairs, there are two bedrooms and a balcony. Mpahlwa says the 581 square feet of living space is bigger and better than the low-income homes South Africa has been building.
"We are trying to introduce the element of dignity in low-cost housing. Now, as architects we've got the challenge to apply our trade to improve the lives of people. But, at the same time, we should provide good quality for the people, so that they have a decent house," said Mpahlwa.
The building's most unusual innovation comes from a small factory, a few miles away. Frameworks for the homes are pre-fabricated at a company called Eco Beam and then shipped to the construction site. Mike Tremeer developed the wood-and metal framework design.
"I think it makes it easy to build. It's extremely fast. It's ideal for situations where you have no infrastructure," said Tremeer.
Once the frame goes up on site, the walls are filled-in with 3,500 sandbags. Tremeer says sandbags are strong and durable. And, to keep costs down, community members fill the bags, themselves, at the building location.
"It adds so much value to someone's property, if they've actually had an input in actually being able to help to build that house. And, this is an opportunity for people to actually do that. We can use extremely unskilled labor," said Tremeer. "Once the framework is up, it's just a matter of filling in the gaps."
The ten experimental sandbag homes will be occupied by families who have been living in shacks. Construction is being financed by private donors. The project recently won the prestigious Curry Stone architectural award from the University of Kentucky, in the United States. But it is not clear if South African officials will adopt the sandbag concept for other housing developments. The architects estimate each home will cost about 10-thousand dollars to build. That is more than expected and is twice the price of a conventional low-income house in South Africa.
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03 December 2008, 13:45:37
Property sales in South Africa have ground to a halt but experts are predicitng that when they start to recover they could rise more than 50% in three years.
The next three months will offer some bargain prices when those who want to invest in the longer term can pick up some good property that will sell well in the future, according to the latest report from Chas Everitt international which has offices throughout South Africa.
'You make money when you buy property, not when you sell and we believe that the next few months will present the best buying opportunities for shrewd property investors to make the most money when the property market recovers,' said spokesman Berry Everitt.
'It may be contra-intuitive to buy now, when the property market is in a downturn, but property prices are predicted to rise by 50 to 60% over the next three years and those who delay now will make relatively smaller returns on their property investments,' he added.
Although price growth has slowed almost to a halt while interest rates appear to have peaked, there is already increasing demand as indicated by rising sale activity since August and this will intensify when interest rates start to fall next year, the company report shows.
'At that point stock levels will really start to drop and prices will start to rise, which means that there is a window of opportunity to negotiate the best deals of just a few months. Looking back in three years' time, investors will recognize this as the turning point of the market,' Everitt predicts.
The report predicts that the best buys are likely to be in the medium-price, medium-size sector of the market, where price growth is currently at its lowest ebb and the high numbers of homes for sale make it possible to secure excellent value for money.
'Such homes are also likely to experience the highest level of demand when the economy turns and many middle-class families who are currently making do in rented accommodation or smaller homes can once again qualify for home loans and start looking for homes of their own or upgrades,' he concludes.
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03 December 2008, 08:21:26
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There is no time like the present to invest in Cape Town city centre living. Due to a weak South African property market there are a number of extremely affordable options currently on the market in central Cape Town, ranging from studio apartments to luxurious penthouses. When the market turns, however, expect values in the Central Business District (CBD) to skyrocket.
Safe, clean city living
Cape Town's city centre has famously regenerated and offers an unparalleled lifestyle to its trendy residents. It is a very different story today from five years ago, says Pam Golding Properties MD for the Western Cape metro region, Laurie Wener. "In the past five years crime in the CBD has dropped by 60 percent and the area has undergone a significant facelift," she says. "Billions of Rands have been invested in residential densification and there have been huge improvements in the overall cleanliness of the city. Plans are now underway to improve the internal transport network within the Central City including the upgrade of Cape Town station, the introduction of the new Bus Rapid Transport System and decentralised multi-storey parking garages allowing for a park and ride system as well as investment in pedestrian and cycling zones throughout the city. Money is also being spent upgrading public spaces such as the Grand Parade and Church Square and updating the Golden Acre shopping centre.
"The chief executive of the Cape Town Partnership, Andrew Boraine, indicated late last year that there was between R28-billion and R30-billion worth of new private and public sector investments planned for the Central City over the next three to five years. All these projects will have a significant impact on the area and can only improve the prospects for capital growth for property owners."
Electric, cosmopolitan atmosphere
The Central City area is now home to over 30 residential developments including apartments, townhouses, penthouses and smaller studios. It also boasts an eclectic collection of fashionable restaurants, coffee shops, internet cafes and designer boutiques scattered among its modern office blocks and historical facades. Buyers in this area to date have included a mix of full-time city residents, Gauteng-based commuters and some foreigners and the result is a character-filled environment with an electric, cosmopolitan atmosphere – the perfect place for young professionals to live, work and play.
PGP’s area manager for the Atlantic Seaboard and City Bowl, Basil Moraitis, says entry level prices in the Central City now stand at their most affordable level in years. "Current prices represent great opportunities for young professionals wishing to live close to work and close to the buzzing city nightlife," says Moraitis, "and also for investors wishing to take advantage of the slowdown in the market and buy at the most affordable levels in years, then earn rental income. There is a strong and consistent demand for rental properties in the city, both on long- and short-term lets, and from a variety of sources. For example, we see parents of students seeking rentals (and purchases) in the affordable buildings close to the Cape University of Technology campus while businesspeople tend to prefer the developments situated close to the Cape Town International Convention Centre and key office buildings. For tourists, proximity to the V&A Waterfront is a key factor as well as ease of access to transport and other leading tourist attractions. Investment buyers can also opt to purchase an apartment and rent it out, furnished, on a daily basis via the many developments offering a rental pool such as Fountains Suites, Icon, Circa and Mandela Rhodes Place. Our City Centre rental agent is exceptionally busy at the moment letting both furnished and unfurnished apartments in the city, many of them to foreign visitors. With the depreciation of the Rand we are definitely seeing renewed foreign interest in this market."
Cape Town's City Bowl has always had a lot going for it, even before the successful renewal drive. Do you want to live there? Click here to search for properties in Cape Town
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02 December 2008, 14:18:22
| Some interesting stats about Cyberprop as well as Cyberagent! |
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02 December 2008, 13:08:15
The FNB House Price Index continued its declining year-on-year percentage change trend in November, to record its first month of average price deflation to the tune of minus 0.2 percent, the bank's property division said on Monday.
While supply had dropped to a certain extent — due to people holding on to their houses for longer — this drop had not been as much as the decrease in demand, FNB said in a statement.
"The start of recorded national price deflation does not come as a surprise given the myriad of negative factors that have been steadily mounting against the residential market."
The November figure was significantly worse than the plus 1.3 percent revised year-on-year inflation rate of October.
On a month-on-month basis minus 0.3 percent deflation was recorded, down from zero percent in the previous month.
With 11 months of the year past, it would appear that the average price inflation rate for 2008 as a whole would be in the region of five percent. This represented the fourth consecutive year of slowing average price growth since the peak of the boom in 2004.
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28 November 2008, 07:55:44
LIZ ROWLINSON: WHEN IT comes to lifestyle, the Western Cape of South Africa is hard to beat. It's got dramatic scenery of mountains, pristine beaches, winelands and superb golf courses, plus the cosmopolitan city of Cape Town with its quality restaurants and fashionable Waterfront area.
Throw in the mild Mediterranean climate, an English language culture, and the first-world feel of the region and it becomes clear why large numbers of Irish and British "swallows" choose to winter there every year.
"It's the most amazing place in the world to live; a small, sophisticated city with a European lifestyle," says restaurateur Conrad Gallagher who moved to Cape Town five years ago.
He now runs his own restaurant consultancy business and has a noodle bar that he's looking to turn into a chain.
Gallagher estimates there are up to 1,000 Irish owners in the city - his Geisha restaurant on the Waterfront is often full of those who have bought in new developments, or on golf estates.
"Property prices have gone through the roof in the past five years and it's now great value," says the 37-year-old from Letterkenny.
Indeed, with the value of the South African rand 25 per cent lower than a year ago, life on the Cape is very affordable for the Irish all round.
Even when you factor in a €1,000 airfare for the 12-hour flight from London to Cape Town, a property in South Africa can still prove to be worth the trek.
"An equivalent standard of property on the Cape is twice the price in Europe," says Simon Gibbs of South Africa's largest chain of estate agents, Pam Golding (www.pamgolding.co.za).
"There's still a huge interest in the Cape because it's possible to live a very comfortable life in a secure community with a nice garden and lots of space."
It may seem odd that the backdrop against which the rand has dropped is actually a relatively healthy economy and property market.
Last year's national credit act tightened up lending - foreigners can borrow 50 per cent of a property's value - and buyers from the Middle East and Russia are now pursuing premium properties.
Annual price increases have slowed from a steady 10-15 per cent to 5-6 per cent, according to Gibbs, but in many prime areas of Cape Town, 25 per cent has been seen.
Within the city, the Atlantic seaboard and southern suburbs are the favoured areas - the former generally attracts a younger, glitzier set, whilst the latter's laidback, bucolic feel suits families and the semi-retired.
The really desirable stretch of creamy sand backed by buzzing beachside restaurants and jogging tracks runs between Camps Bay and the Waterfront, taking in Clifton, Bantry Bay, Fresnaye and Green Point (where Gallagher owns a townhouse).
Here, according to George Norris of Aylesford International (www.aylesfordsa.com), you won't get more than a two-bedroom apartment for €500,000 with some stunning contemporary homes cut into the hillside reaching €7.5 million.
"You're paying for the location and buying into the lifestyle," says Norris, who is currently selling an apartment in what he calls the "best block in Cape Town", Eventide, for €3 million.
The serviced apartment comes with four bedrooms, a whopping 100sq m (1,076sq ft) livingroom with floor-to-ceiling windows overlooking the sea, wine cellar and gym.
A little further north a new stadium is being built for the 2010 World Cup (the airport is being expanded too) near the attractive Victoria Albert Waterfront area, with its designer shopping and stylish marina apartments.
One of these high-spec apartments is owned by Dr Eilis Cryan from Galway, who rents it out for between €1,827 and €2,240 a week (www.holidaylettings.co.uk/69424) when not using it herself.
"The location is as good as anything you're going to get around the world, with Table Mountain from the back balcony and the sea from the front," says the consultant physician with a husband who's a GP and two children in their twenties.
"I'd been coming to the Cape for 10 years because I import wine and think the scenery is stunning, the restaurants fabulous and the cost of living is way lower than in Ireland.
"Yes, there's a lot of security here, but it's very discreet and I've never felt in danger myself," she says in reference to the country's high levels of crime.
Nearby there are penthouses for sale in Sol Kerzner's new One Only luxury brand six-star resort at €8.3 million, the most expensive property per square metre South Africa has ever seen.
At the other end of the spectrum, a three-bedroom home on a development in the northern suburb of Milnerton goes for around €100,000.
In the leafy, exclusive southern suburbs of Constantia and Bishopscourt you can buy a substantial family home for around €750,000 but those seeking even more space should consider the wine-growing valleys east of Cape Town.
Within a half-hour drive are the charming towns of Stellenbosch and Franschhoek with their wineries and traditional Cape Dutch gabled period homes - prices from €200,000.
Alternatively, a substantial home on the nearby Pearl Valley golf resort - surrounded by the Simonsberg and Drakenstein mountains and a Jack Nicklaus signature course - is available from Aylesford for €1.8 million.
With six bedrooms and open-plan rooms opening onto decks and a pool, it offers great indoor/outdoor living typical of the Cape.
This area is rich in top-level golf courses - including the top-ranked Arabella, Darren Clarke's favourite, Pinnacle Point, and Pezula (both further east along the Garden Route).
Plots or shares of homes on Pezula in the popular resort area of Knysna - where Roger Federer lives part of the year - start from around €113,000. (www.pezula.com).
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27 November 2008, 09:01:47
Private property sales are becoming more and more popular as homeowners try to save on commissions. According to Lanice Steward, managing director of Anne Porter Knight Frank estate agency, her experience in the industry has shown that these private sales can be disastrous.
Steward pointed out that there is a misperception of the role of the estate agent in some cases. This stems from ignorance of what the agent does and a lack of appreciation of what he or she can bring to the negotiation and sales process. This, according to Stewart, is somewhat surprising seeing that people don’t try to diagnose their own ailments, and they certainly don’t try to service their own cars, buy yet they think that they are qualified to market and sell their biggest assets.
The biggest mistake made by DIY home sellers is often made while investigating prices in their region. Show houses are almost always overpriced and when sellers use that price as a guideline they often overprice (or sometimes under-price) their own property.
DIY sellers often find that the advertising cost is higher than they bargain for and that possible buyers pray on their inexperience and downgrade their price by pointing out drawbacks and defects. When a serious buyer do come around the sellers often lack the legal and negotiating skills to get a good deal.
When using a trained agent these issues are often totally excluded from the selling process; the seller benefits from the agency’s large-volume advertising and the agent will have a potential buyers list, which is a good start. A professional agent will recognise the pitfalls and traps to avoid in the all-important negotiation process and all other deed related issues would be handled with precision.
Steward thinks it is important for all homeowners to note that, although an agent’s commissions might sometimes be high, the reality is that paying an agent will almost always get you a sooner and better deal.
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25 November 2008, 08:37:31
Century 21 CEO Dr Duncan Gray died in Johannesburg on 22 November following a short illness. He was 47, the company said in a statement on Monday.
Dr Gray is survived by his wife Colleen, two sons and a daughter.
Born in Cape Town, he was educated in Pretoria and obtained a degree in veterinary science from the University of Pretoria in 1987. He practised as a veterinarian until 1990 when he joined the veterinary science faculty at Onderstepoort as a senior lecturer.
Three years later, he joined the real estate industry as an agent for Seeff Properties and after several promotions in that company he left to become general manager of JH Isaacs Residential, with special responsibility for the Eskel Jawitz Real Estate trading division.
In 1998, Dr Gray obtained an MBA from the University of South Africa and a year later he joined Pfizer Animal Health, where he rose to become regional director and chief executive for the sub-Saharan region.
He returned to the real estate industry in 2005, when he secured the Century 21 master franchise for South Africa and began establishing a national real estate group. In 2007 he was named as one of the industry's Young Lions at the Nedbank Property Association national awards.
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24 November 2008, 08:52:27
The number of property transfers registered at Cape Town's deeds office has nearly halved since an industry peak two years ago.
According to the Deeds Registry office only 293 866 property transfers have been registered this year, compared with the whopping 469 753 transfers registered in 2006. Last year 444 995 properties were registered.
Vanessa Tango, assistant registrar of deeds, said their jurisdiction included the Western and Eastern Cape, and part of the Northern Cape.
The past year has been tough for the property sector. A third of estate agents have left the industry, property prices have fallen and many "For Sale" signs stay up for months, overgrown by weeds.
At Pam Golding's annual media presentation this week, chief executive Andrew Golding said: "We are living in tumultuous times.
"South African house prices have reduced nominally by around 10 percent while crucially the volume of transactions has slowed by at least 30 percent. Added to this is the fact that the mortgage market is down by at least 50 percent. The extraordinary rate of mortgage decline coupled with the unavailability of credit in recent times has been the most challenging part of this difficult market."
The industry had had to adapt quickly to changing market conditions.
"The speed and severity with which this market turned is perhaps the single most commented-on issue by those who have seen many up and down cycles in their time."
Dr Golding said all businesses worldwide had had to review their expense base and adjust to the new market levels. He expected volumes for his group to be down by about 20 percent for the financial year ending in February 2009.
The tempo of residential developments had tapered off, with many projects being delayed and in some cases shelved indefinitely, and the rate of purchase cancellations had been high as over-indebtedness, the effects of the National Credit Act and general economic slowdown took their toll.
In the group's Western Cape region, while unit turnover had dropped substantially across most sectors of the market, sales in the upper end had been maintained at a higher level, both in terms of unit numbers and value.
"The majority of sellers at this level can wait out the market without reducing prices significantly, or can take their properties off the market, thus preventing over-supply. Furthermore, buyers at upper levels are ultimately prepared to pay for what they want."
They were also seeing families trading down in both area and price, and suburbs such as Woodstock and Observatory in the southern suburbs and Brackenfell in the north were in higher demand as a small three-bedroomed home could be bought for between about R850 000 and R1,4-million.
He said certain areas in the Boland and Overberg had performed well.
Stellenbosch had achieved consistently high sales, with record sales of R63m in September, while the growing hub of Somerset West, with its easy access to Cape Town, remained a sought-after region.
Agricultural properties were proving to be a key factor for this region, and the company recently sold the well-known 150ha Kentucky Farm for R37m. There was also growing interest in the purchase of "lifestyle" farms with a rural feel in areas such as Elgin, Paarl, Tulbagh and Stellenbosch.
Dr Golding said the next 12 months would be influenced politically by the next elections and economically by global and local influences. He expected a "full recovery" to begin towards the end of 2009. The 2010 Soccer World cup should have "positive spin-offs" and boost the market.
Seeff Properties chairperson Samuel Seeff said the unfolding world financial crisis had not cancelled out expectations of a recovery in the local market. "I believe the global financial crisis has and will continue to present the South African property sector with a number of challenges."
However, as in the past, the local economy and property market had proved resilient.
"The challenges to our market are serious and will remain a factor for the next few months.
"The closeness to the World Cup should see buyer sentiment improving to the point of the market turning to much greater activity all round," said Seeff.
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21 November 2008, 12:41:13
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Edition 45 of 2008, Friday, 21 November 2008
Dear Reader
 The JSE - The stock market or equity market has been around for many moons with wealthy businessmen being the dominant role players. Over the years this has changed with various funds traders, insurance companies, investors groups, financial institutions and also the individual, the smaller investor coming on board looking for making a quick and good profit. At the beginning of October 2008 the stock market was estimated at about $3,6 trillion US. The stock market is the import source to raise money for a company as it allows the public trading of company shares. Why this education about the stock market in this week’s newsletter? If I could short real estate now, I would. What does this mean?
To short sell in the stock market means the trader borrows stock (usually from his brokerage) and then sells it on to the market in the hope that the price will fall. He then buys back the stock and either making money if the price of the stock fell or losing money if the price rose. Some traders use this as a strategy to artificially lower the price of a stock. Would you like to do this in today’s property market? Send your viewpoint to news@cyberprop.com
Worldwide there was not much optimism in the property market this week. In South Africa Business Day reported on the property market as follows;
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THE RESERVE Bank will possibly start cutting interest rates in the second half next year, the Bureau of Economic Research said today. It is expected that the Bank will cut rates by 150 basis points next year and by a further 100 basis points in 2010
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BRICK manufacturers, faced with a huge surplus, plan to sell stock below cost and to extend their annual shutdown next month
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CAPE TOWN — Housing department officials and MPs yesterday dismissed suggestions in a Human Sciences Research Council (HSRC) report that dissatisfaction over housing delivery was one of the key reasons behind the xenophobic violence this year
 Some time ago we shared with our readers Greeff Properties, as their community project, sell art of previous disadvantage artists. It is now official that they will be opening a art gallery at the end of the month where these arts can be viewed; Road of Hope Art Gallery opens for township artists
Enjoy!
The editor
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19 November 2008, 03:57:40
Set amidst large open spaces, Bardale Village is a one-of-a-kind residential security estate offering incomparable lifestyle benefits…
Bardale Village is a first-of-its kind, secure, medium-cost residential development that’s ideally suited to first time homeowners. The expansive estate offers 'lock-up and go' convenience, alongside lifestyle and social amenities such as sprawling lawns, children’s playgrounds, an informal grassed amphitheatre, cycle-paths and a mini-soccer pitch. There’s also a planned crèche, nursery-school and after-school care facility as well as a retail element anchored by a national supermarket.
Bardale Village is centrally located in Kuilsriver South with easy access to the R300, N1 and N2, bus and taxi ranks as well as world class shopping malls.
Garden city
The developers behind Bardale Village, Integrated Housing Development (Pty) Ltd (IHD), based the Bardale Village design and philosophy on the German concept of a garden city or 'Gartenstadt'; offering secure, quality living in a unique green and healthy environment. In a bid to create a greener environment, IHD has lined all roads and public spaces within Bardale Village with trees and strategically placed park benches.
Phase One of Bardale Village, which consists of 516 units, has seen annual capital growth of 23 percent against a backdrop of diminishing returns in a volatile property market. Phase One homes are now priced from R285 990 to R524 590, meaning that the highest-priced homes at Bardale Village are still priced well below the national average of R683 088 and the Western Cape average of R814 707 for small (80m² to 140m²) houses in the middle segment — as set out by ABSA in their latest Home Loans Housing Review for the third quarter of 2008 (Jacques Du Toit, ABSA Home Loans Housing Review, Third Quarter 2008).
Bardale Village offers one to four-bedroom houses with a mix of double and single storeys, all of which are architecturally designed according to classic aesthetic guidelines to ensure the village retains its unique charm. This 'village' feel is further complemented by the tree-lined sidewalks, neatly trimmed grass verges and pedestrian-friendly roads.
Front doors and windows opening onto the street, without high walls and visual barriers
What sets Bardale Village apart from any other medium-cost residential development is the power of design, specifically with regards to architectural design and the overall town planning. The moment you have front doors and windows opening onto the street, without high walls and visual barriers, security in that street is increased. The design of the planned retail element at the entrance node also encourages safety with the mixed-use nature of the offices and businesses in close proximity to the homes.
Each home within Bardale Village is finished to exacting standards with good quality finishes and comes with a burglar alarm which is connected to the security centre via a radio signal. The houses are also finished with additional features such as quality light fittings, plaster cornices, wooden skirting boards and additional tiling in the bathrooms. A further indication of the high standards set by the developers is that each home also features a letter box and house number, further contributing to a harmonious streetscape within the estate.
The village is well protected with a 2.1 metre composite block wall and electrified palisade fencing. It is manned around the clock by security guards. There is also CCTV surveillance and 24 hour access control. This level of security offers unprecedented lifestyle benefits to those who live within Bardale Village. Parents have peace of mind that their children are safe when playing outside and home owners feel more secure.
Runners-up in the non–subsidised builder of the year category in 2008
IHD was nominated for the Govan Mbeki Housing award by the NHBRC and were runners-up in the non–subsidised builder of the year category in 2008. IHD’s focus on using only quality materials, as well as their patience with investment returns, ensures homes within Bardale Village remain competitively priced.
Levies to the home owners at Bardale Village are kept low and are currently only R255 a month. This covers the upkeep of the security system, any institutional maintenance and the landscape maintenance.
Phone 021 909 0301 for more information on Phase Two of Bardale Village.
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18 November 2008, 22:06:59
Here is some very interesting stats on www.Cyberprop.com as well as other property portals we host and manage.
CyberProp.com - October 2008
| Hits |
| Total Hits |
10,259,291 |
| Average Hits per Day |
330,944 |
| Average Hits per Visitor |
29.31 |
| Page Views |
| Total Page Views |
2,470,810 |
| Average Page Views per Day |
79,703 |
| Average Page Views per Visitor |
7.06 |
| Visitors |
| Total Visitors |
350,052 |
| Average Visitors per Day |
11,292 |
| Total Unique IPs |
164,350 |
| Bandwidth |
| Total Bandwidth |
174.47 GB |
| Average Bandwidth per Day |
5.63 GB |
| Average Bandwidth per Hit |
17.83 KB |
| Average Bandwidth per Visitor |
522.61 KB |
Stats for this month up until 18 November 2008
| Hits |
| Total Hits |
6,171,659 |
| Average Hits per Day |
342,869 |
| Average Hits per Visitor |
29.87 |
| Page Views |
| Total Page Views |
1,322,854 |
| Average Page Views per Day |
73,491 |
| Average Page Views per Visitor |
6.40 |
| Visitors |
| Total Visitors |
206,628 |
| Average Visitors per Day |
11,479 |
| Total Unique IPs |
106,939 |
| Bandwidth |
| Total Bandwidth |
99.28 GB |
| Average Bandwidth per Day |
5.52 GB |
| Average Bandwidth per Hit |
16.87 KB |
| Average Bandwidth per Visitor |
503.83 KB |
A total of more than 225,000 unique users and 5,7 million page impressions were recorded among 9 of our bigger portals we manage. Bandwidth usage for October was in excess of 900 GB on all our servers.
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18 November 2008, 08:50:45
Eighty percent of the demand for residential housing is now aimed at the sub R500 000 market and a large portion of the remaining demand is for homes in the R500 000 to R1-million bracket, says Bill Rawson, Chairman of Rawson Properties.
"Wherever we have properties in these price categories, we are still able to find buyers quickly despite the tighter credit restrictions and the high interest rates," said Rawson. "We would very much like to be doing more development in these sectors ourselves. However, so often we come up against the very high costs of land which makes projects here non-viable."
Hinting that this might be an area in which a government committed to the provision of housing could give assistance (possibly by buying and retaining the land while allowing the developers to get on with the building and selling of the homes), Rawson said that his group now has a Cape development coming up in the sub R500 000 bracket and is looking at several in the R500 000 to R1-million bracket.
"We accept that as South Africans we have a real duty and a commitment here," he said. "Privately owned housing has always been the bedrock on which stable states are built. A home is not just a place of shelter. It is also the incubator of ideas, new ventures and prosperity. It is from this base that the family members, particularly the young, go out to make careers for themselves and change the world — and this is nowhere more evident than in the townships. All the evidence at hand indicates clearly that when a family home falls apart, crime and unemployment almost invariably follow swiftly."
The value of housing, said Rawson, had again been proved in the current financial difficulties.
"It looks very much now as if the world’s economies will take some two to three years to sort themselves out and get rid of the huge debt incurred," he said. "However, in these difficult conditions South African housing continues to be bought and sold at the levels that pertained in 2006. Even if we dropped to 2004 levels, as seems just possible, the truth remains that housing has been able to ride out the current bumpy patch far better than most asset classes."
Recent auctioned property, added Rawson, had achieved higher than expected prices — a sign that people have retained their faith in the enduring value of property.
Another side of this, he said, is the growing trend among the new middle class to upgrade their homes, either with improvements or by moving to a new area. Armed with a new awareness of property values and of the current conditions many of these people are proving extremely hard bargainers, both in getting good prices for their new homes and in ensuring that the homes they sell go at market or above market values.
Commenting on the minor furore that an interview given by his MD, Tony Clarke, to the online property press has provoked, Rawson said that Clarke’s basic message had been very similar to his: that property has remained a safe investment and one that had fared well in the current troubles. One of the reasons for this, he said, is that property meets two basic needs — a place to live and a place to work. For this reason the property market, except in times of real upheaval, will always fare better than most asset classes.
In his interview Clarke implied that the 'experts' who had sold off shares and other financial packages over the last two years and had not seen the advent of the current crisis had some explaining to do and this, said Rawson, was no doubt the main reason why the article had caused such a storm.
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17 November 2008, 08:52:14
The South African housing market is expected to remain subdued in the next 12 months as buyers continue to grapple with high interest rates and inflation, according to the latest Absa quarterly housing review issued on Monday.
"Consumers continue to experience financial strain as a result of high inflation and interest rates while real household disposable income growth tapered off to two percent in the second quarter of 2008 — its lowest level since the end of 2000," said Jacques du Toit, an economist at Absa, South Africa's largest home loans lender.
He added that levels of activity and price growth across all segments of the market and in most geographical regions were projected to remain under pressure well into 2009.
Du Toit forecast a nominal house price growth of three to four percent for 2008 to 2009 while prices are set to decline in real terms this year and next.
In the third quarter of 2008 both nominal and real house price growth slowed down further across most segments and geographical regions.
According to the review, the average nominal price of affordable housing increased by 7.3 percent year-on-year (y/y) to R284 300 in the third quarter of 2008 (11.7 percent y/y in the second quarter). In real terms prices were down by 5.4 percent y/y in the third quarter (+0.1 percent y/y in the preceding quarter).
Nominal price growth of 2.1 percent y/y was recorded in middle-segment housing in the third quarter of 2008 (4.6 percent y/y in the second quarter) which brought the average price of a house in this market segment to R966 100.
In real terms, prices dropped by ten percent y/y in the third quarter (-6.3 percent y/y in the second quarter).
In the luxury category of the market house prices increased by a nominal 10.4 percent y/y to about R4.6-million in the third quarter of 2008 (9.9 percent y/y in the second quarter).
In real terms, prices in the luxury segment dropped by 2.7 percent y/y in the third quarter (-1.6 percent y/y in the preceding quarter).
The bank said that on a quarterly as well as an annual basis, nominal house price growth was lower in the small, medium and large categories of housing at provincial and metropolitan level in the third quarter of 2008 with prices actually declining in some areas.
"Calculating these price movements in real terms, the slowdown in the housing market is even more significant," said du Toit.
Based on Absa's nominal house price data and household disposable income statistics published by the South African Reserve Bank, the affordability of housing has improved somewhat in recent months with the ratios of house prices and mortgage repayments to disposable income declining in the first half of 2008.
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14 November 2008, 15:42:03
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Edition 44 of 2008, Friday, 14 November 2008
Dear Reader
When all know that the Rand is the South African currency and that it replaced the South African Pound. I wonder how many of our readers can remember in which year this happened. Did you know the name comes from the word “Witwatersrand”, the ridge on which Johannesburg City of gold is built? Did you know that the Rand was worth more than the Dollar from the time of its inception until 1982? Did you know that the Eskom Electricity crisis would have an impact on the value of the Rand? Most importantly did you know that the weakening of the rand plays an important role in the property market?
What is your opinion? Do you think the depreciation of the Rand will have a negative or positive effect on the property industry?
With the Rand getting weaker and other things also beginning to happen in South Africa, it is quite possible that the property markets might get a nice boost; This according to an article that I found on Propertywire.com. I was expecting a negative effect and yet here we read about a positive effect. Why?
- By keeping interest rates the same property might become attractive again
- The main reason for people wanting to move to South Africa still remains and South Africa attracts more and more International visitors every year
- Investors are starting to change their strategy collapsing their investments into bigger stakes in a lower of companies and lastly
- High-end properties in South Africa is now more attractive to foreign investors
Don’t miss this week’s article in Real Estate news - Floccinaucinihilipilification Send us your view points to news@cyberprop.com
It was with great interest this week that I read what Berry Everitt, MD of the Chas Everitt International Property Group had to say about space for home offices that is becoming a prime consideration among senior citizens when buying property. “Statistics show that only about 10% of people retiring at age 65 have made adequate provision for their golden years and that about a third keep working to supplement their income,” says Berry. Developers take note: Seniors want office space
It is important to regularly check the condition of your property and to make sure any damage or wear and tear is repaired as soon as possible, this according to The Department of Building and Housing of New Zealand. Of importance when letting out is that you inspect the property on a regular basis. In South Africa the Homenet Property Group warns that prevention is better than cure. “By keeping up with the maintenance it is likely that you can stop most small problems from becoming big problems that can be very costly to remedy.” Regular home maintenance gives sellers the edge
The last town in the southern Drakensberg lies immediately beneath the majestic mountains of this area, their looming greatness offering a multitude of hikes and moments of breathtaking beauty. It is a little town, and busy, despite the fact that this part of the district is predominantly farming country. This town, although not well known, is pretty functional although it has grown in the last couple of decades and now includes a number of commercial ventures. Indeed a town not to be missed! Focus on Underberg, KwaZulu Natal, South Africa
Enjoy!
The editor
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14 November 2008, 10:38:03
New student development for Stellenbosch
13 November 2008
Stellenbosch is to get 44 new student units in time for the new academic year – weather permitting.
The occupation date for Bergzicht, about 200m from campus, is set for January next year and well-known developer HDK Developments is pulling out all the stops to make the deadline in spite of the inclement weather that has been experienced in the Western Cape, says Shawn Pieterse of the local RealNet office.
“A total of 17 units have been sold since the launch in July and sales are expected to speed up as we get closer to the new academic year. A show unit is now nearing completion and experience shows that sales pick up fast when prospective buyers are able to view a physical unit rather than look at building plans.”
The development consists of eight bachelor, four one-bedroom, 25 two-bedroom and seven penthouse units. All units will be fitted with washing machine and tumble drier combos, fridge/freezers, microwave and traditional ovens, as well as hobs and extractor fans. Units will also be fitted with telephone and data points and security measures include access control and safe parking.
The penthouse units will further be fitted with dishwashers, air-conditioning in the living rooms and heated towel rails and under floor heating in the bathrooms.
Prices for the 31sqm bachelor units start at R790 000, while the 37sqm one-bedroom flats cost from R930 000. Two-bedroom flats measuring 49sqm sell from R1,16m each while the prices of the 57sqm penthouses – three of which have been sold or reserved – range between R1,52m and R1,58m. The penthouses also feature 50sqm patios.
Prices include all costs and units can be secured with a 10% deposit, Pieterse says. “Bergzicht offers a sound investment opportunity. Finishes are outstanding and the position of the development relative to the campus is excellent.”
Issued by RealNet
For further information call
Shawn Pieterse at
RealNet Stellenbosch on
021 886 8616 or visit
www.realnet.co.za
Exterior view of Bergzight, the new student apartment complex in Stellenbosch
Distributed by/ versprei deur
The Mega/ Press Network
Pse direct any enquiries to
012-333-6644,
073-946-9649 or
megw@telkomsa.net
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14 November 2008, 10:36:45
Bargains aplenty in Montana
12 November 2008
The five-year development boom in the northern Pretoria suburb of Montana shows no sign of abating, despite the current market slump, and the area is a buyers’ delight.
So says Savas Nicolaides, principal of leading local agency Homenet Prime, who notes that it was the advent of the giant Kolonade shopping centre that sparked off extensive development in the area and boosted the values of existing properties.
“And now Zambezi Drive, Montana’s main road axis, has become so popular as a business location that commercial space is in short supply. Similarly, the scale of residential growth has placed pressure on local schools and infrastructure.”
Thanks to ongoing development, however, there is a plentiful supply of residential stock. Townhouses are the best sellers at prices between R700 000 and R800 000, with clusters coming in at about R1,1m to R1,2m.
Freehold homes priced from around R1,7m to R3,5m are moving more slowly although many are situated on the Montana ridge and enjoy panoramic views.
“We find that buyers at the moment are extremely picky, as they are well aware that they have a very wide variety of properties to choose from in this area. However, sellers have dropped their asking prices, and there are plenty of bargains for those ready to buy now,” says Nicolaides.
He notes that those in this fortunate position currently include many new middle class or Black Diamond buyers - probably because of the huge contingent of public servants in Pretoria, many of whom are looking to cut their commuting time to government offices in the city centre.
“They love Montana because of its central location, modern homes and the fact that it is very well-supplied with convenient shops, schools and recreational facilities. Add to this a temperate climate and proximity to the upgraded Wonderboom Airport, and the area will no doubt remain a firm favourite for many years to come.”
ISSUED BY HOMENET
FOR MORE INFORMATION CALL
SAVAS NICOLAIDES ON
011 454 4002 OR VISIT
www.homenet.co.za
Distributed by/ versprei deur
The Mega/ Press Network
Pse direct any enquiries to
012-333-6644,
073-946-9649 or
megw@telkomsa.net
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14 November 2008, 10:36:01
GREEFF PROPERTIES BOOST THEIR SHOW HOUSE PRESENTATIONS
Mike Greeff, Chief Executive of Greeff Properties, has on several occasions made it clear that, in his view, nothing will ever replace the show house day as a means of marketing and selling a home.
It was this belief that led him to start placing his own security guards at show houses, a move that looks as if it will be followed by others.
Greeff also believes, however, that the time has come to give show house days “something extra”.
“Show houses are an excellent way of putting a house on the market but we have come to feel that these open days need some form of excitement, some novel idea to enhance the whole experience,” he says.
Greeff Properties will now be providing professionally prepared DVDs that will be played on the television sets in the homes on view, or on Ipod’s that the clients can listen to while passing through the property. A spokesperson for the company will spell out on DVD in detail relevant facts regarding the area in which the show house is sited, for example, information on nearby schools, churches, synagogues and temples, sports facilities, golf courses, hospitals, shopping centres and other facilities. The current market conditions and trends will also be explained. Before and after the DVD showing/ ipod experience, tranquil music will be piped through the house to create a calm atmosphere which, Greeff hopes, will help clients to focus on the home without distraction.
“It has to be accepted that deciding on a new home to which your family will be moving can be difficult, especially for those who are not accustomed to the process. The selling aids that we have developed will, I believe, de-stress the decision making process, making it possible for potential buyers to be more logical, rational and comfortable with their ultimate choice.”
For further information please contact Mike Greeff on 021 763 4120 or 083 679 1809.
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14 November 2008, 10:33:55
JHI managed Richards Bay shopping centre produces impressive figures
Boardwalk Inkwazi’s refurbishment delivers increased footfall
The dust has settled, and the opening fanfare and celebrations has quieted down, but Boardwalk Inkwazi continues to show positive levels of support from both the tenants and local consumers. For a consecutive three months, foot traffic figures have remained at the 1 million a month mark.
“The R520 million revamp and development of the JHI managed Boardwalk Inkwazi Shopping Centre in Richards Bay completed in April this year, has proven to not only offer shoppers a completely restyled shopping destination, but has also been the biggest commercial development ever undertaken in the city of Richards Bay. “ says Ivan Pachonick, Director for Retail Developments at JHI Property Services.
In April an additional 38 170 m2 of world-class retail space joined the original centre, making Boardwalk Inkwazi a regional centre with a gross lettable area of more than 65,000 m2.
The refurbishment of the centre has been well received by the local market. Consumers who felt the absence of variety, good service and choice are now travelling from outlying areas as far as Pongola, Kwambonambi and Stanger to ustilise the centre, which is well supported by the primary catchment area.
The well planned tenant mix has allowed for ease of comparative shopping. “Many of the fashion tenants were relocated from the original portion of the centre to the new mall, their relocation allowed for the final phase of the development which is currently underway and incorporates key home store tenants who will open their doors to the public by the end of November 2008”, adds Pachonick.
The new tenants include Boardmans, @ Home, Home Comforts, House & Home, Pep and Foschini Express, as well as a Pick ‘n Pay Clothing Store and Liquor Outlet along with various well know national tenants. NWJ join the already well known list of national and local jewelers. Maxi’s also recently opened as one of the newer additions to the several food retailers throughout the mall.
Boardwalk Inkwazi is a Pangbourne Properties Ltd investment, managed in full by JHI Property Services.
About JHI:
JHI is an independent well-established property services company delivering comprehensive service offerings to a wide client base. JHI’s current portfolio comprises in excess of R31 billion of assets under management, approximately 1035 managed buildings, over 12 700 tenants and approximately 7,7 million m² under management. JHI is the Sub Saharan representative for the Oncor Group. For more information visit www.jhi.co.za.
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13 November 2008, 11:33:52
 The V&A Waterfront is one of the most successful dockland renewals in the world, attracting some 22 million visits annually. Seeff Atlantic Seaboard MD Ian Slot and Waterfront V&A Marina area specialist Emelia van der Linde earlier this year achieved the highest priced property ever sold in South Africa, for the penthouse at Sol Kerzner’s 6-star One&Only Hotel at over R110 million, as well as the highest price for an apartment in the Marina at R30m, neither of which have yet been pipped. Says Van der Linde: “In the current market the average price for a penthouse on the front yacht basin will be in the region of R49m. A penthouse on the canal which was marketed at R30m was sold by us in June for close to the asking price.”
Van der Linde’s partner, Karen Miller, says property prices have increased significantly at the V&A Marina, and has calculated the average growth rate per annum. “From 2001 to 2007 it was 29% p.a. - and from January 2008 to date a growth rate of 37% has been achieved on resales. The average rate per m² for 2007 on the canal was R39,924, while for 2008 it was R53,779. The average rate per m² for the front yacht basin was R49,032 in 2007, and R68,062 for 2008.”
The Seeff Waterfront V&A Marina team says that last year there were 19 sales made until November, compared with 15 sales for this year to date. Independently confirmed figures show that Seeff’s market share at the V&A Marina has been 97% for the last 5 months.
Completion of the V&A Marina development in its entirety is expected by August 2009, with 537 apartments in total in six apartment blocks on the front yacht basin and eleven on the canal.
Ian Slot, MD of Seeff Atlantic Seaboard, CBD, V&A Waterfront and City Bowl, foresees the adjoining Roggebaai Precinct as also coming into its own: “The Roggebai Precinct, which is also on the canal adjacent to the V&A Marina, is where Canal Quays is soon to be completed. Seeff sold out this development in its entirety, and we will soon be launching the 6 luxury penthouses on top of Canal Quays.”
Seeff are mandated to market the two remaining penthouse apartments being constructed on top of the One&Only Hotel, and have many other top-end mandates. Says Van der Linde: “Seeff currently has the exclusive mandate to sell an apartment in the prestigious Pinmore building, which is being marketed at R40m. There is only six apartments in this sought- after block. This awesome property offers three bedrooms, three bathrooms and three parking bays with 498m² of living space, a storeroom, swimming pool, wrap-around terrace, full air-conditioning, stunning views of the front yacht basin, multi-media room and designer kitchen with modern finishes.”
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11 November 2008, 08:53:02
The latest ABSA Home Loans Review shows clearly that those who have been talking down the prospects for the South African residential sector are ignoring much positive data, says Mike Greeff, Chief Executive of Greeff Properties.
“Year-on-year the South African figures for the second quarters of 2007 and 2008 show that all residential home categories achieved reasonable growth rates,” said Greeff. “In the affordable category, the year-on-year price growth was 12,1%. In mid-segment housing the growth was 4,7% and in the luxury category 8,8%. Two of the three categories, therefore, kept ahead of the average inflation rate over the last year and the mid-segment was only 2% below it. This, in my view, is hardly the property recession that the doom and gloom prophets have said has overtaken us. Let us face it: property is the place to be now. For many years it has been a very stable growth investment – and the latest figures show that this will continue. As ABSA has commented, homeowners who bought three to ten years ago are still realising appreciable capital gains if they decide to sell.”
ABSA, said Greeff, are forecasting a 10% growth across all property bands by 2010.
Analysing the ABSA figures further, Greeff said that the Western Cape was one of only four South African provinces to achieve year-on-year price rises in the second quarter of 2008, when there were significant drops in home values in such key areas as Gauteng , Eastern Province and KwaZulu Natal. The increase in the Western Cape prices in that quarter was, in fact, 6,9%. Properties in the southern suburbs, Greeff’s area of specialisation, have, he said, held up even better than this as demand still outstrips supply here – and will do so for a very long time still.
Also evident from the ABSA Review, said Greeff, is the fact that it is now almost invariably better to buy than to build, the reason for this being that the average price of building a new home in South Africa rose year-on-year by 16,7%.
“This is a trend that we have warned about previously,” said Greeff, “but the good news is that the major developers, including several for whom we work, have been more successful than the smaller operators in containing cost rises, with the result that multi-unit projects can still offer buyers very good value.”
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10 November 2008, 13:12:26
Mike Greeff calls for greatly increased awareness of security in Constantia
Mike Greeff, Chief Executive of Greeff Properties, one of the front-running estate agencies serving Constantia, said this week that he is still surprised and very concerned by how casual people in this affluent precinct still are about their own security.
“One would have thought that by now people would be intensely aware of the dangers of crime,” said Greeff. “It is true that we are having a great deal of success in getting rid of it: figures from ADT and from our highly effective neighbourhood watch show that night crime has been significantly reduced, although daylight crime is still on the increase. What worries me is that people are still taking too few precautions”
The number of attempted hold-ups and attempted and successful break-ins in October, said Greeff, were just over 20 which, in his opinion, is unacceptably high. What is more, he said, if the trend in previous years is followed the figure is likely to increase over the holiday period.
Homes sited close to green belts, said Greeff, are now known to be especially vulnerable and those which offer quick escape routes to the mountains or to retail precincts are also at risk.
In general, said Greeff, the public’s reaction to crime is always to move to security villages, with the result that there has been a proliferation of these and his company is now inundated with enquiries for homes in this type of project. However, he said, if the right security measures are taken at freestanding homes, these can be made (if not 100% safe) at least exceptionally difficult to penetrate or disturb.
“An investment in electric fencing, perimeter alarms, close circuit television, intercoms, intruder alarms and panic buttons is actually very small in relation to the cost of the total property and is surely insignificant when put against the family’s safety,” said Greeff.
“My advice, therefore, is to go the whole way. Do not skimp on these items, show the criminal element that you really mean business. The only reason why they are still able to be active in Constantia - and Bishopscourt - is that far too many people are still half-hearted about the way in which they secure themselves and they resent spending money on these very necessary items.”
Given that most homeowners would accept that message, Greeff was asked how most people would protect themselves when they enter or leave the property. Greeff said that, again, the relevant security bodies have laid down procedures for this and if these are observed the chances of a successful hit or hold-up are always greatly reduced. ADT offers a short course on this and time should be spent on attending one of these.
“In particular,” he said, “people should check out the neighbouring street before opening their gates and leaving their properties and on arriving back. Look for tell-tale signs or suspicious-looking vehicles and check if you are being followed. Rather circle the block once or twice and if you feel you are being followed head for the nearest police station. These may be irksome precautions – but they make all the difference.”
Greeff Properties have followed their own advice on security by installing guards, who are linked to ADT, at certain show houses. Greeff also regularly provide clients with security plans and with introductions to security companies when, having sold a home, they feel the security needs beefing up.
“We have,” said Greeff, “to scotch the idea that this is an impossible challenge which we cannot meet. It is only difficult because too few people have applied their minds to finding a solution. I and others are convinced that Constantia could become an almost crime-free area if only we all got together and really put our minds to this problem.”
For further information contact Mike Greeff on 021 763 4120 or email info@greeff.co.za.
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10 November 2008, 08:27:16
A weakened Rand may mean more belt-tightening for consumers, but it’s good news for farmers wishing to take advantage of the export market. There has been a surge in interest in agricultural properties in the Western Cape’s Overberg region — home to some of the country’s most fertile land and renowned for its fruit, wine, grain and livestock farms. The demand is coming not only from serious commercial farmers, but also from lifestyle buyers wanting to opt out of the rat race and move to the countryside.
Commercial farms
Recent years have seen a huge increase in the number of wine farms in the Elgin and Grabouw areas in particular, spurred in part by a decline in the fruit business in the 1990s causing some farmers to replace their orchards with vineyards. The Hemel-en-Aarde Valley is now producing some outstanding Pinot Noir wines while the cooler coastal areas around Walker Bay provide the ideal topography and climate for the noble white grape cultivars. Pam Golding Properties area manager Adrian Kuiper says he currently has several wine farms on the market, ranging in price from R9-million to R20-million.
Meanwhile, the past two years have seen a dramatic recovery in the fruit market with the decline in the Rand once again boosting exports. "There is very little stock on the market at present due to the industry’s surge in productivity and profitability," says Kuiper. "Land prices have increased dramatically to around R250 000 per hectare.
"Livestock and grain farms meanwhile remain economically viable," he continues, "and the larger sheep, dairy and beef farms tend to demand — and achieve — exceptionally good prices. However, these are seldom available for purchase as many are old family farms passed down through the generations."
Kuiper notes an exciting trend in the increasing number of farms seeking Black Economic Empowerment components. There has also been a lot of interest in the Overberg from foreigners and from people migrating from Kwa-Zulu Natal and Gauteng. The bulk of sales however remain to Cape-based buyers, either starting out in the farming industry or expanding on their existing businesses.
Lifestyle farms
The demands of the lifestyle buyer are completely different. Rather than approaching the purchase with serious commercial motives they tend to be looking for a place to live or spend weekends — an escape from the hustle and bustle of the city with at most the opportunity to indulge in some small-scale hobby or niche market farming.
Well over 60 percent of PGP's farm stock currently for sale is aimed at the lifestyle market. "The bulk of our enquiries are coming from lifestyle buyers," says Kuiper, "with the main criteria being exquisite scenic environments. We have some fairly large mountain farms on the market as well as numerous smaller properties and these tend to be very reasonably priced for their size. There are a number of very good buys on the market at present, priced anywhere from R860 000 to R13-million."
A particular focus for this market at present is the Elgin Valley. Kuiper says there has been a huge exchange of land ownership over the past five years, initially with lifestyle buyers moving in when the fruit industry was struggling and more recently with several record sales of active fruit farms. This change has stimulated significant growth and diversity in the towns of Elgin and Grabouw.
PGP’s MD for the Boland and Overberg, Annien Borg, says there is much to tempt both the serious farmer and the lifestyle buyer to this area. "Not only does the Valley boast a stunning scenic environment and a temperate climate, but it has very little crime and it is situated just 20 minutes’ drive from Somerset West and only an hour from Cape Town. This proximity means that residents have easy access to excellent schools, shopping and medical facilities. In addition to this, its lifestyle offering is quite superb with unlimited capacity for outdoor activities. The local Country Club offers facilities for cricket, squash, tennis, bowls and rowing while the nearby Theewaterskloof Dam is ideal for those who pursue sailing, water-skiing, fishing and boating. The surrounding countryside, including the Kobio Nature Reserve, also provides ample trails for hiking, mountain-biking and quad-biking. It is no surprise that the area has developed to such an extent that besides the local government schools, it now even has its own private school named Applewood Junior School."
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10 November 2008, 08:05:35
Western cape residential property has performed above the South African average
The latest ABSA Home Loans Review shows clearly that those who have been talking down the prospects for the South African residential sector are ignoring much positive data, says Mike Greeff, Chief Executive of Greeff Properties.
“Year-on-year the South African figures for the second quarters of 2007 and 2008 show that all residential home categories achieved reasonable growth rates,” said Greeff. “In the affordable category, the year-on-year price growth was 12,1%. In mid-segment housing the growth was 4,7% and in the luxury category 8,8%. Two of the three categories, therefore, kept ahead of the average inflation rate over the last year and the mid-segment was only 2% below it. This, in my view, is hardly the property recession that the doom and gloom prophets have said has overtaken us. Let us face it: property is the place to be now. For many years it has been a very stable growth investment – and the latest figures show that this will continue. As ABSA has commented, homeowners who bought three to ten years ago are still realising appreciable capital gains if they decide to sell.”
ABSA, said Greeff, are forecasting a 10% growth across all property bands by 2010.
Analysing the ABSA figures further, Greeff said that the Western Cape was one of only four South African provinces to achieve year-on-year price rises in the second quarter of 2008, when there were significant drops in home values in such key areas as Gauteng, Eastern Province and KwaZulu Natal. The increase in the Western Cape prices in that quarter was, in fact, 6,9%. Properties in the southern suburbs, Greeff’s area of specialisation, have, he said, held up even better than this as demand still outstrips supply here – and will do so for a very long time still.
Also evident from the ABSA Review, said Greeff, is the fact that it is now almost invariably better to buy than to build, the reason for this being that the average price of building a new home in South Africa rose year-on-year by 16,7%.
“This is a trend that we have warned about previously,” said Greeff, “but the good news is that the major developers, including several for whom we work, have been more successful than the smaller operators in containing cost rises, with the result that multi-unit projects can still offer buyers very good value.”
For further information contact Mike Greeff on 021 763 4120 or email info@greeff.co.za.
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07 November 2008, 15:40:47
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Edition 43 of 2008, Friday, 07 November 2008
Dear Reader
 The next US President, Barack Obama has as tough job on hand. He was urged to help the US Nation’s housing finance agencies who are struggling to provide mortgages to poorer and moderate income property buyers. Will he bring a change in the US and also International property market? Send us your view points to news@cyberprop.com
When the going gets tough... the scamsters get going! This week we heard of a lady renting an apartment, and then sub-letting it to ten different people. This deal of course came to a sudden crash - but only after the scamster made off with a couple of thousands, that the defrauded people had paid - as a deposit! John Charles Mackay claims he's not in the same league as these fraudsters - after being taken to court for the Starbucks to SA deal that fell through.
This week our newsletter is filled to the brink with many interesting articles:
- Why Africa is still appealing to investors
- We look at the local property market :
- The future of the local market
- How house prices are still falling
- Where there are still bargains to be found
- Nedbank and their mortgage finance dealings
- Pension Fund Managers are still looking to real estate for investment
- SARS - a crack in the wall...
- Low cost housing - the huge demand that can't be met
We focus our eyes this week on Hazyview in Mpumalanga.
We thank you for your correspondence - we have a few answers on questions you sent us last week.
Enjoy!
The editor
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07 November 2008, 07:27:28
New residential developments continue to sprout in the well-established Randburg suburb of Broadacres, where numerous homes on large stands and small holdings
are being demolished and rezoned to make way for new sectional title units and clusters with more appeal for modern buyers.
Among the latest projects to be launched is Rich Meadows, a cluster complex offering a variety of two and three-bedroom double-storey homes, all with two bathrooms, double covered parking and private gardens. Stand sizes range from 300 to 400sqm and prices for plot-and-plan packages start at R1m.
“The location of these homes is excellent,“ says marketing agent Joep Rijntjes of Century 21 ModHomes. “They are close to the Broadacres mall with its wide range of shops and restaurants, a gym and a Barnyard theatre. There are also good schools and the New Life hospital nearby and the development also offers easy access to transport routes and the Randburg CBD.”
Sporting facilities in the area include the Virgin Active gym, the Dainfern golf club and some of the new complexes also offer their own jogging trails, clubhouses, communal pools and tennis courts.
Residents of Rich Meadows will also enjoy peace of mind as regards security, as it has controlled access through a guarded gatehouse and is surrounded by a high wall topped by electric fencing.
“This is a stylish development designed to appeal to young professionals and retirees. The low maintenance finishes include granite-topped kitchen counters and the living areas are open-plan to facilitate modern lifestyles,” says Rijntjes. “We anticipate that the development will sell out quickly.
“Home loans can be arranged through Bond Choice, which will obtain the best rate possible, subject to financial affordability. There is no transfer duty payable on these homes.”
Issued by Century 21
For more information call
Joep Rijntjes at
Century 21 ModHomes on
011 465 2438 or visit
www.century21.co.za
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06 November 2008, 16:04:40
Big bank Absa (JSE:ASA) has warned that the property pain is set to continue into next year and said the housing market has cooled off "to levels not seen in many years".
Its October House Price Index, released on Thursday, still shows nominal year-on-year house growth (1,2%), but at its lowest level since January 1993.
With inflation at just over 13%, a little lower than 13,7% year-on-year in September, in real terms house prices in South Africa are falling. The figure for September is -10,1%, said Absa.
Looking at the price trends, said senior property analyst Jacques du Toit, "nominal year-on-year house price growth is at risk of moving into negative territory in the near future".
Looking at sub-categories, Du Toit said:
Small houses (80-140m²) increased in value by 2,8% in nominal terms, which is down from the year-on-year 3,4% in September. The average small house cost about R687 100 in October, said the bank;
A medium-size house (141-220m²) increased by 1,7% year-on-year in October - down from the revised 1,9% year-on-year in September. Average house size: R958 700;
Large houses (up to 400m²) grew by a nominal 1,5% year-on-year in October, also down from a revised 1,8% in September. The average house price: R1 394 300.
"In view of current and expected economic conditions, prospects for the residential property market in the rest of 2008 and into next year are quite dismal."
Du Toit expects house price growth for the year to average between 3,5% and 4% - the lowest annual price growth since 1996 (3,6%). The middle segment house, it is expected, will show a real decline of 7%.
Nominal house price growth is expected to be even lower in 2009, warned Du Toit, with real prices set to decline for a second year in succession.
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05 November 2008, 08:50:34
OTTERY’S NEW CHINA TOWN OFF TO A FLYING START – EXTENDED SHOPPING HOURS TO BEGIN SOON
The new R50 million China Town at Ottery, developed by Madison Property Fund Managers on behalf of the Redefine Income Fund for the China Town Trust, has now been in operation for three months and is trading well beyond expectations, says Steve Kruger, a Trustee of China Town.
Kruger said that Mr Shwu-ing Liou, a former Chinese ship skipper turned businessman and travel promoter, can take much of the credit for the original concept. They saw how successful three developments of this kind were in Johannesburg and, says Mike Flax, Executive Director of Madison, had realised that a similar success could be achieved in Cape Town.
Madison, who owned the site, made it available for the project. It is only 250m from Redefine’s massive Ottery Hypermarket, which has an average foot count of 6 000 people per day and covers 15 000m2. Parking space is provided within and close to the new project for 400 motor cars.
All 45 units covering 7 500m2 of floor area were leased prior to completion, with 98% of the tenants being authentically Chinese and selling only Chinese goods.”
Certain of the tenants, said Liou, had taken two or three units and some, he said, are already asking for more space. Limited amount of additional space may be provided in a follow-up phase.
The main items traded in the new complex are clothing, shoes, handbags, electronic goods (including cell phones), linen, cutlery, crockery, stationery – and food. Prices of all goods, said Kruger, are very significantly lower than those of the average Southern Suburbs retailer, a statement proved recently when a visiting journalist discovered he could buy a strong battery powered lamp for R65, a pair of sports shoes for R68 and a colourful umbrella for R20.
A food court with three tenants provides take-away and sit down food, cooked in the traditional Chinese way and there is, too, a Halaal food outlet. This service has been so popular that the centre is now planning to stay open until 8:30pm on behalf of visitors wishing to eat and shop here.
A fairly large percentage of the purchasers visiting the complex, said Liou, are small or informal traders who find that the low prices enable them to resell them at a significant mark-up. Liou said that the Chinese tenants had, in fact, made it possible for many struggling small traders to set up with new lines of merchandise and increase their profit.
“The real attraction of this whole development, however,” he added, “is not just the goods: it is the traditional Chinese courtesy and friendliness which visitors encounter. The traders here are people who know how to work and how to come out on top despite very low prices.”
Kruger added that the project now ranks as probably the best of its kind in South Africa because, unlike its predecessors in the north, it was not developed in refurbished buildings but on a pristine site with totally new, appropriately designed units.
“The daily foot count on a good weekend can be as high as 3,000 and the trust estimates that, after admittedly starting from a fairly low base, trader turnover is being increased by some 20% per month. The Christmas trade, for which this complex is particularly well suited, should see turnovers rise exponentially within the next few weeks.”
For further information contact Caroline Coates from Madison on 021 425 1000.
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04 November 2008, 12:24:32
Foreign property investors are increasingly interested in buying in South Africa as the weakening Rand and relatively stable growth rates make the country a more attractive investment despite the country's property slowdown.
European buyers in particular have been looking at properties in the Western Cape, along the Garden Route and in cities that will host the 2010 World Cup, according to industry professionals.
A favourable exchange rate between the Rand and the Euro is also adding to the attractiveness of South African property for Europeans.
'There is an upturn in inquiries especially via the internet,' said Lew Geffen, chairperson of Sotheby's International Realty in South Africa. 'German buyers like the relatively stable growth of the property market and see a downturn in prices as a good opportunity to invest,' he added.
The company, which has recently opened offices in Hamburg, Essen and Dusseldorf, has found that German investors are most interested in lifestyle property and very demanding as to finishes and building standards.
Simon Gibb, general manager of Pam Golding Properties' international division, said over the past fortnight the division has noted a slight increase in inquiries from foreigners.
'We assume it is as a direct result of the depreciating Rand. These inquiries relate more to what stock is available on the market here than to properties in specific locations and in a specific price range, he said.
Head of Seeff Properties, Samuel Seeff, said: 'It is still too early to tell what the real impact on foreign buyers is going to be. There is still too much turmoil in the world financial markets to be clear about how they are going to respond in terms of buying property in South Africa.'
However, he added that the property sector does expect the demand from foreign buyers will increase as they seek to take advantage of the weaker Rand.
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03 November 2008, 09:46:05
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.
And while it is known for its upmarket status, the Plett property market has slowed in recent months - creating ideal conditions for these wealthy young retirees to pick up "bargains" in the R2m to R3m range.
"Meanwhile, older retirees looking for serviced retirement facilities are also catered for," says Hutchinson.
"A number of retirement developments such as Formosa Gardens Village and Glen Eden Village have been built in recent years to meet the increased demand. Residents can either purchase or rent here."
However, retirees aren't the only ones finding Plett attractive. The area continues to appeal to a wealthy local and foreign buyer mix drawn to the beautiful natural surrounds, mild climate and über-chic restaurant and retail facilities such as those to be found at the Upper Deck Lifestyle Piazza and LM restaurants in the recently refurbished Plett CBD.
Improvements to the CBD are just about complete, says Hutchinson. The main road and various other public facilities have been upgraded, bringing Plett in line with other coastal hotspots. "Unfortunately, some commercial properties and the main beach did suffer storm damage recently, but clean up operations are already under way and things should be spick and span by the start of the holiday season in December."
He says a fair amount of activity is occurring at the moment at the very top end of the Plett property market where a number of beachfront properties have become available at prices of R20m and more.
"At the local entry level, values are currently holding fairly steady at an average of just over R1,8m for freehold homes and around R1,2m for sectional title units, and long term rentals are holding their own at between R5k and R7k a month."
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31 October 2008, 15:38:52
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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.
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Month
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Views
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April
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2,959,149
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May
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3,725,213
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June
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3,723,095
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July
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3,522,457
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August
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3,667,788
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September
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4,886,942
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October
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5,130,475
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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
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31 October 2008, 10:44:01
Growth in South Africa is forecast to rebound towards the end of 2009 and return to 4.5 percent to five percent growth levels, with food and fuel inflation retreating from historic highs and the manufacturing sector benefiting from a slightly weaker exchange rate, according to the Deloitte Touche Tohmatsu Global Economic Outlook fourth quarter report released on Thursday.
"Growth in South Africa continues to be driven by strong spending on infrastructure, particularly in electricity, rail, ports and infrastructure for the 2010 soccer World Cup. The country's financial sector is also relatively insulated from global turbulence," note the researchers.
Growth is, nevertheless, expected to be slightly slower during 2009 as prices of key exports such as gold and platinum ease and world growth softens.
But from 2010 onwards, growth is expected to return to the levels experienced before the global financial crisis, and the economy should "comfortably" continue expanding at between 4.5 to five percent a year.
Written by five Deloitte global economists, the report predicts that although developed country economies will continue their serious downturns, the massive infusion of government money should restore activity to the credit markets and set the stage for recovery. Emerging countries will feel the negative effects of this downturn, though.
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30 October 2008, 07:37:40
Tougher economic conditions and stricter lending policies have all affected the ability of South Africans to acquire homes. It was with this in mind that the developers of Montague Place in Maitland have launched a brand new development with apartments selling from as little as R340 000, putting them amongst the most affordable in South Africa.
Not only is Montague Place one of the most affordable new apartment blocks in the country, but it's also situated in the heart Cape Town as Maitland and surrounds have recently been allocated as part of Cape Town’s burgeoning CBD — a location that is one of the most desirable for homeowners and investors in South Africa.
"This apartment block is ten minutes from everywhere in Cape Town," says Nick Docking, developer of Montague Place. "It is very close to the major transport routes of the M5 and the N1, 50 metres away from the railway station, 70 metres from a taxi rank and 100 metres from Voortrekker Road." For people working in town, the Northern Suburbs or Milnerton, this is conveniently situated in the centre of it all."
The size and location make the apartments ideally suited to students, young families or investors looking to buy-to-rent. "The area is very much up and coming with many new commercial as well as residential developments on the cards," says Docking.
Rentals of over R3000 per month
For investors there is a great deal of opportunity in the area. Docking adds that "in the current property market, not many people in the lower LSM groups can afford to buy, making small apartments the ideal investment to cater to these people. There is a large block of 110 flats down the road that are all constantly occupied by either owners or renters. Because of the proximity to town, the average rentals for similar apartments range between R2700 and just over R3000 per month."
"The units are beautifully designed and brilliant for first-time buyers," says Louise Maranz, principle of Vered Estates, Cape Town. "The block, due for completion in July, has 36 units in total and only 18 still available for sale."
The development is ideally suited to take advantage of some of the best views in the Cape. The top three floors of Montague Place all have views over Table Mountain, Table Bay and the city. Ground floor apartments have 18m² landscaped gardens.
Vered, together with the developers, have arranged financing options that make the apartments more affordable for first time buyers. "If a buyer meets certain conditions and has a R10 000 deposit, our mortgage originators will be able to arrange a bond to cover the balance. For first-time buyers who only qualify for a 90 percent bond, the developers, along with Investec bank, have agreed to allow them to pay off the balance over six months."
No additional or hidden costs — the price you see is the price you pay
"The price of the apartments is also the price that you pay. There are no additional, hidden costs," continues Maranz.
There are three types of unit available. On the ground floor are 33m² apartments with 18m² gardens. The rest of the apartments are also 33m², apart from smaller corner units that lose space to comply with certain safety regulations. "These are proving to be very popular, however, because of the additional windows, allowing for a light and airy feel," says Maranz.
Each unit has a single bedroom, en-suite bathroom and open-plan kitchen-lounge area. The kitchen is tiled, fitted with an oven and hob and plumbing for a dishwasher or washing machine. The bedroom is carpeted with nearly floor-to-ceiling built-in cupboards, allowing for far more storage space than usual. The windows are maintenance-free aluminium and all taps are cobra or of a similar quality. Each unit also has its own electrical box, allowing owners to buy and control their electricity consumption.
The entire block is protected by a large perimeter wall with electric fencing and an automated gate and each flat has a parking bay within the enclosure.
The price for an apartment in Montagu Place ranges from R340 000 for a corner unit to R390 000 for a 33m² unit and R410 000 for a ground floor unit with a garden.
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30 October 2008, 07:34:02
Property auctioneers in South Africa report that there has been a marked improvement in investor sentiment over the past couple of weeks following the Reserve Bank’s decision not to raise interest rates, with buyers packing into residential property auctions.
Rael Levitt, CEO of The Alliance Group, says trading on the group’s auction floors this month throughout the country has seen the strongest investor appetite in more than a year.
“And our success rates and bidding activity has literally changed overnight.”
He believes the decision not to raise rates has made many investors and property owners “breathe a sigh of relief, realising that the country is most likely at the top of the interest rate cycle.”
He adds: “There is no doubt that trading on our auction floors has been surging, particularly since the neutral stance by the Reserve Bank governor on interest rates.”
Jonathan Smiedt, CEO of auction group Claremart, also says there has been a marked increase in buying power in residential property auctions over the past two weeks.
He comments: “We knew as soon as the governor stayed the increase in interest rates, this would show a semblance of governance and would pull the buyers back into the market again.
“[There] is a clear indication that buyers have come back into the market.”
However, property economist Francois Viruly, of Viruly Consulting, says there “must be a lot of properties coming on to the market at the moment”.
“I still think that investors in the residential buy-to-let market are finding it very difficult to make respectable returns in this environment. I am not that quick to say the storm has passed us yet. I think there are still uncertainties,” says Viruly.
But he says the decision not to increase interest rates does bode well for the property industry.
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29 October 2008, 07:50:14
Office and industrial property rentals continued to grow impressively, according to the latest issue of Rode's Report on the SA Property Market issued on Monday.
In spite of this, building plans approved for new office and industrial buildings were slowing down markedly, the report said.
"No doubt, this anomaly is the result of the uncertain international environment and high interest rates," said Rode's Report editor John Lottering.
"In tandem with these risk factors, capitalization rates are also weakening slightly. This possibly reflects the lagged impact of rising interest rates."
However, Lottering said it must be remembered that cap rates were not determined only by interest rates, but that investment demand and prospects for capital returns also played a role.
"Fortunately, when interest rates started rising in the second half of 2006, property fundamentals were — and mostly still are — quite strong."
Lottering said that barring a severe economic slowdown, he expected continued strong property fundamentals to keep capitalization rates from moving too far north.
In addition, the now improved outlook for inflation brought on by the reweighting of the CPI, lower oil and food prices as well as the 'base effect' might also help in keeping capitalization rates at bay, he said.
However, a weakening Rand exchange rate posed a severe threat to inflation.
"Thus we do not expect interest rates to come down to their levels of 2006 any time soon and capitalization rates might have seen their best levels for a long time to come."
Lottering said that good news was that office rentals had continued to record impressive growth.
Nominal rentals in top decentralized office areas such as Pretoria (+21 percent), Cape Town (+16 percent) and Johannesburg (+13 percent) all managed to achieve growth in excess of the expected growth in building costs of 10 percent, he noted.
In Durban decentralized, market rentals were, on the whole, only four percent higher than a year ago.
Rentals in the industrial market had also shown vigorous growth with prime industrial rentals up by as much as 26 percent in Durban and by 18 percent in the Cape Peninsula and the Central Witwatersrand.
Port Elizabeth recorded the weakest growth at only 11 percent higher than the same quarter a year earlier.
Lottering said that rental growth in all major industrial nodes had managed to keep ahead of building costs.
However, he pointed out that overall economic growth was still expected to ease to about 3 percent per annum over the next few years. "This is much lower than the 5 percent per annum we've been enjoying since 2004; thus, combined with the ongoing constraint on energy supplies, we could, therefore, expect to see a moderation in these growth rates as compared to the past few years."
Turning to the housing market, he said that house-price growth was expected to continue drifting lower from its peak at the end of last year.
"And as one would expect from this, building activity in the residential sector is declining."
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29 October 2008, 07:48:28
Raising interest rates in South Africa at this stage would be hugely damaging, says Stanlib's chief economist, Kevin Lings. Instead, he feels a rate cut would be the next move, but only in April next year and until then they will remain on hold.
Lings, who was speaking during a media briefing, noted that while other central banks around the world had been able to cut rates in the face of the global turmoil, SARB Governor Tito Mboweni's situation was "slightly different".
Lings feels that the local situation will be seen as behoving the central bank to wait for more evidence that inflation is being managed and that cutting now would move them too far off their targeting principles.
Bad situation
"Putting rates up would make the situation worse," he said.
Lings points out that the SARB can cut rates before inflation is back within the target.
He says the cutting will likely be delayed and not happen sooner until more light is thrown on the extent of the re-weighting of the inflation basket in February. He notes that this re-weighting could bring inflation down by a good two percent in one swoop, if reports are to be believed.
Added to this is that the central bank will want inflation to be below the peak before they cut.
Lings feels the current 13.6 percent level will be the peak, but that if it comes down, the rate will still be high at above 13 percent.
The I-Net Bridge consensus for the September outcome due on Wednesday is that CPIX will hit 13.2 percent.
"It must trend lower," emphasises Lings.
He feels the first time these issues will be reflected properly will be by April.
Lings says that while SA's GDP growth will slow to just over three percent this year and two percent next year [he feels the Treasury's forecasts of 3.7 percent in 2008 and three percent in 2009 are a little optimistic], there will not be an outright consumer recession.
No service recession
"A big part of this is services, like healthcare, which are not in recession," he explains.
Then he feels that credit card growth will slow to negative territory next year and household debt will "slow appreciably".
South Africa's next rates decision takes place on December 11, and recent rand weakness has raised fears a hike may be on the cards.
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28 October 2008, 14:07:02
Amid increasing traffic congestion and high petrol prices more people are seeking to live close to work, shortening their commuting time and cutting down on transport costs. The result is a resurgence in popularity of suburbs situated on the fringes of the central city area. De Waterkant is no exception and the demand for homes in the suburb is far outstripping supply.
De Waterkant has enjoyed a reputation as a trendy and artistic environment for over two decades now — predating the rejuvenation of the CBD and even the development of the V&A Waterfront. However, its past is far less chic with the area having housed many of the city’s most marginalised communities throughout the colonial era and well into the 20th century.
Trendy, artistic and cosmopolitan
The cultural melting pot that resulted is evident in the varied architectural styles and character-filled buildings which include elements of Georgian, Cape Dutch and Asian design. The steep cobbled streets are now home to an eclectic mix of old and new residential and commercial buildings with lock-up-and leave homes nestling side by side with small delis, coffee shops, décor stores and restaurants.
There has been much sensitive renovation, strictly controlled by the Heritage Council to preserve the area’s character. Today, the suburb retains its rich cultural diversity and has a cosmopolitan vibe popular with locals and tourists alike and beloved of the media, the artistic set, design fundis and the gay community.
Pam Golding Property's MD for the Western Cape metro region, Laurie Wener, says it is no wonder that the area remains consistently popular. "For young singles and professionals it is ideally placed," she says, "offering quick access to the city as well as to the N1 and N2. The intimate restaurant culture coupled with a peaceful residential atmosphere is unique and also hugely appealing to this market while the historic and traditional aspects of the suburb attract continued interest from foreign buyers. We also see a fair number of buyers who purchase holiday homes here and then let them out on short-term rentals during the year to generate additional income."
Great views of the CBD and Table Mountain
"Another huge draw-card is the Cape Quarter shopping centre which is currently being extended and which offers a mix of upmarket shopping, dining and entertainment options. The V&A Waterfront is also just a stone’s throw away, as is the Mouille Point promenade, and the area’s many rooftop terraces offer some truly spectacular views of the harbour area, the CBD and Table Mountain."
PGP’s area manager for the Atlantic Seaboard and City Bowl, Basil Moraitis, says one can obtain sectional title apartments in De Waterkant from around R1.6-million for a compact one-bedroom unit with undercover parking. Top-end apartments in newer buildings like The Rockwell and Harbour Edge can fetch as much as R5-million. Entry-level houses and cottages start at around R1.2-million going up to as much as R8.7-million for larger homes. Some of the semi-detached and double-storey homes in the suburb date back as far as the 19th century, but most have been creatively renovated to modern standards. An extremely active residents’ community is involved in monitoring and maintaining the unique character of the area.
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27 October 2008, 09:24:09
Johannesburg - South African property firms are expanding into Africa as part of a major drive.
Groups like JHI and Broll have been involved in Africa for a number of years, with an expansive network of offices on the continent.
Two SA property groups have recently announced massive projects in Namibia and Zambia.
Redefine is involved in a R2bn project in Windhoek, with some 80 000m² available for retail and offices. It also involves a hotel and residential units.
Liberty Property has also established its first big African project outside SA, with a R2bn shopping centre spanning 30 000 m² combined with a hotel and offices in Lusaka. The Zambian national pensions authority has provided the capital.
The Broll group, which is involved in the management and development of property in Africa, says big foreign investment in Nigeria, Ghana and Zambia has encouraged a big demand for quality property developments.
Foreign companies are looking for A-grade office space, which is in short supply.
Strong economic growth has created a developing middle class, which has lead to a demand for formal shopping space.
Shopping centres recently developed in Lagos, Nigeria have done particularly well.
SA retailers who are expanding their networks in Africa, but are not finding available retail space, are also driving the demand for shopping space.
Whitey Basson, CEO of Shoprite, has recently called on SA developers to become more involved in Africa.
Currently, SA companies in the property market in Africa are largely confined to providing expertise.
Mostly, capital for the developments comes from overseas, especially Asia. The firms make use of SA knowledge about the continent and its challenges.
Groups like JHI and Broll are mostly involved in the management of properties as well as development, which is precisely what Liberty Properties wants to do.
Marna van der Walt, CEO of JHI, does not expect that the current financial uncertainty will stop the investment flow to Africa. JHI has seven offices in Africa,
"Amid the threatening food shortages, Africa could become the world's 'pantry' and the continent's commodities' is crucial to fulfil the developing giants needs."
The Broll group has singled out Tanzania's property industry as a market, which holds particular opportunities.
According to Brian Azizollahoff, CEO of Redefine, Namibia is the ideal starting point for SA companies who want to expand in Africa.
That market is a lot like South Africa, but investors are also reassured by the strong economic growth and political stability.
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24 October 2008, 15:37:28
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Edition 41 of 2008, Friday, 24 October 2008
Dear Reader
 The International property market is still taking strain and the prices of houses has fallen. This is a fact and not a myth. I can remember a newsletter of a few years ago where we were reporting on the prices of property in England and that most South Africans could only afford to buy a parking bay in central London. Times has changed, this according to Savills Research, house prices in prime central London are expected to fall by 10 to 15 percent this year and then a further 10 percent in 2009 from the highs of 2007. Central London for a song
Not only have we seen a drop in the prices of houses but also dramatic drops in the stock market. However, the current stock market should not freak you out and should not cause alarm among South Africa property investors and homeowners. Stock market slump no cause for property panic
The current economic conditions are forcing people to rent rather than to buy with the results that we have seen a booming rental market over the last few months. 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? Send it to news@cyberprop.com
The Trafalgar City report 2008, launched on Thursday, reveals that analysis done on private and public sector property sales over the past two years has unearthed interesting trends throughout South Africa. Property trends revealed
In this week's edition we focus on the landlord;
- Landlords cautioned on rental increases
- Property trouble: When a tenant runs a business behind your back
- When your tenant does a duck
- Stringent credit restrictions can make life difficult for landlords as well as tenants
Affectionately known as the Jacaranda City for all the purple blossom-bedecked trees, which line its thoroughfares in summer, Pretoria (Tshwane) is an elegant, quiet city that's a perfect contrast with its more frenetic neighbour, Johannesburg, just half an hour away. Pretoria has a long, involved and fascinating history - first as the capital of the independent Boer republic of the Transvaal, then as one of the three capitals of South Africa, it became an international synonym for apartheid. (www.safarinow.com), Focus on Pretoria (Tshwane), Gauteng, South Africa.
Enjoy!
The editor
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24 October 2008, 08:36:25
A Dubai-based company behind a $4 billion development in South Africa says it is confident that the project will not be derailed amid a political row.
Ruwaad Holdings unveiled Amazulu World, a massive themed entertainment and mixed-use destination development on the north coast of Durban at a glittering ceremony in the emirate last month.
Bosses said the real estate, hospitality and tourism project on 16,500 hectares of land in KwaZulu-Natal province would be the biggest development of its kind anywhere in the African continent.
The company even flew in the local Zulu King Goodwill Zwelithini and the Premier of KwaZulu-Natal, Sibusiso Ndebele, to endorse the mega project and a memorandum of understanding was signed during the visit.
But on Thursday, it emerged that the local Macambini community, led by Khayelihle Mathaba, was opposed to Ruwaad's plans and had reserved part of the proposed development site for another massive project led by another Dubai-based company, the Bukhatir Group.
The multi-billion dollar scheme would be known as the Macambini Sports City, a sports city to be built by the Bukhatir Group's property arm Sport Cities International, featuring high-rise residential and commercial towers, a shopping mall, a five-star hotel, a signature golf course, a multi-purpose stadium and other social amenities. Construction is expected to start in 18 months.
Now, the Bukhatir scheme and the Ruwaad proposals are facing the prospect of competing for the same development site but Ruwaad group CEO Hayan Merchant denied that Amazulu World was at risk.
In an exclusive statement to Arabian Business, Merchant said: "We would like to categorically announce to all stakeholders that Amazulu World is still proceeding as planned and has the blessings of all arms of the government including the local, provincial and national government.
"Ruwaad are moving swiftly to complete the social and community participation procedures for the project, in order to obtain the approvals required from the South African government, necessary to begin the project’s construction. The project is scheduled to be built in multiple phases over a period of 25 years.
"We remain committed to developing this project which we believe will have huge benefits for the local community, the Kwazulu-Natal province and South Africa."
The Ruwaad project would also include a number of hotels, resorts and spas, a marina, a variety of residential offerings, community facilities, and nature reserves.
Initial studies indicate that Amazulu World will create more than 200,000 new jobs, and will increase tourism to the region by almost 40 percent through attracting millions of tourists.
But Sport Cities International chief executive Zahid Noorani, quoted in South African media reports, said: "We aim to improve the quality of life for the people of Macambini through our sports academies and grass-roots programmes."
Last week, crowds of people from Macambini took to the streets, burning tyres and disrupting traffic during a protest against the Ruwaad development.
A Dubai-based company behind a $4 billion development in South Africa says it is confident that the project will not be derailed amid a political row.
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24 October 2008, 08:28:48
Windhoek, Namibia - Johannesburg Stock Exchange (JSE) listed property firm Madison Property Fund Managers has said that construction work in the first phase of the US$200 million plaza in Windhoek will start in November. Dubbed the 'Freedom Plaza', the premium quality 80,000 m2 precinct, whose design is similar to that of Johannesburg's Melrose Arch, is being developed by Madison Property Fund Managers and Swiss Properties, together with another JSE property firm, Redefine Income Fund and a local partner United Africa Group (UAG).
The first of its kind in Namibia, the plaza will comprise of four premium-grade office towers, a six-star boutique African Pride Hotel, a four-star hotel for the Arabella Starwood Group, three trendy apartment blocks including airy lofts and exclusive penthouses, and convenient retail outlets.
The plaza, which will be surrounded by the central bank, Supreme Court, Windhoek City Council and the 'green lung' Zoo Park, will also comprise of a three-level super basement and retail shops will be conveniently located at street level.
Construction of the mega plaza, which will be done in five years, will culminate in the two hotels with 350 rooms combined, 8,000 m2 of retail space, 180 residential units, 35,000 m2 of office space and 2,000 parking bays.
Madison Property Fund Managers said that Freedom Plaza is a project of highest international standards and is set to transform the urban design of Windhoek's central business district.
"We are secure that this world class asset will add prestige to the city as well as become an interest point for locals and travellers alike," Mike Flax, an executive at Madison Property Fund Managers, said Wednesday.
The JSE firm would be making its first forays into the African market outside its home base, South Africa.
"Africa remains under-serviced by reasonable quality real estate to cater to the needs of a continent growing at a pace well ahead of that of the developed world," Flax said.
He also said that Namibia had become a natural first step for South African investors.
The Namibian economy is closely linked to that of South Africa, with the Namibian dollar pegged one-to-one with the South African rand.
The construction phase of the multi-billion dollar project is also expected to create thousands of jobs.
"It is our strategy to ensure that as much benefit as possible which flows from the development of Freedom Plaza should stay with the local economy," Flax said.
The developers of the plaza will use the latest green building principles.
Madison is behind some of South Africa's landmark properties such as the iconic Convention Tower which stands at the gateway to Cape Town's illustrious foreshore and borders International Convention Centre.
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24 October 2008, 07:58:58
South African property investors are becoming ever more adventurous, straying far from the well-tried markets of the UK and Europe to explore exciting new opportunities in emerging powerhouses such as Dubai, Brazil, China and now India.
“And their aims are being furthered by increasing political and trade co-operation between SA and these countries, as evidenced by the India-Brazil-South Africa (Ibsa) summit recently held in New Delhi,” says Duncan Gray, CEO of the CENTURY 21 real estate group in SA.
“For example, we currently see much closer real estate ties developing with India, because of the historical connections with SA and also because trade between the two countries, already worth billions of rands a year, is growing at 50% annually. The Ibsa figures show that its trilateral trade should top R15bn by the end of next year.”
What is more, he says, India’s residential property market is very healthy – unlike many of those in the more ‘developed’ world. The country has a population of 1,1bn and there are millions of people looking to become first-time homeowners as the economy grows and their financial prospects improve. Home prices in India have been rising in earnest for the past two to three years, with key areas in Mumbai, Delhi and Bangalore registering increases of up to 55%.
Consequently, it is not surprising that there is an increasing demand among South African investors for properties in India to be used not only for holiday and business travel purposes, but also for permanent letting and capital growth. “However, as always, those who are buying property in a foreign country need to be aware that different legal frameworks may apply.
“This is where it really pays to seek the help of an international real estate organisation such as CENTURY 21, which has local representation in more than 60 countries and territories around the world and a global referral network that links buyers and sellers in all those countries.”
Gray notes that CENTURY 21 has recently signed a master franchise agreement for Greater India including the Bangalore, Chennai, Delhi, Hyderabad, and Mumbai regions, and expects to have 1000 offices open in India within the next five years. “This means that SA investors who deal with CENTURY 21 now have a direct and easy route into India’s major property markets.”
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FOR MORE INFORMATION
CALL DUNCAN GREY
ON 011-884-2202
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012-333-6644,
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24 October 2008, 07:58:13
Property prospects are looking up in the middle class Johannesburg suburb of Weltevreden Park, in response to the unchanged interest rate and early indications of improvements in the local business sector.
Jon Rosenberg, principal of the local Homenet agency and an agent in the area for 27 years, says there has been a marked improvement in buyer sentiment in recent weeks and that enquiries are coming in steadily.
Originally considered a somewhat remote suburb, Weltevreden Park grew out of an area of plots and farmsteads. Now there is little undeveloped land left and this underpins demand for existing properties in the popular suburb. Despite this densification, however, the area has managed to retain its village-like ambience making it appealing to a varied, family-orientated mix of buyers.
“Infrastructure upgrades have been slow to follow in the wake of the residential growth and we are now faced with a situation where the existing schools and roads are battling to cope somewhat with the increased traffic,” says Rosenberg.
“However, prospective buyers don’t seem deterred and show-house attendance is definitely on the up.” Townhouse prices in the area now average about R650 000, he says, and freehold homes are moving when priced realistically at prices ranging from R950 000 to R1,3m.
In addition, the rental market in the area is booming, with two bedroom townhouses proving the most popular at rentals between R4000 and R4500 a month. Enquiries for freehold properties are also increasing.
“Indeed, it seems that while Weltevreden Park has not escaped unscathed from the unforgiving property market conditions of the past few months, the area is now well on the way to a solid recovery.”
Spinoff demand from the new FNB office and shopping complex nearby has yet to be felt, says Rosenberg but it is expected that the build will create some impetus for the area in the future. There are also other projects in the pipeline that have been delayed due to a lack of electricity approvals, a scarcity of land and developer nervousness.
ISSUED BY HOMENET
FOR MORE INFORMATION CALL
JON ROSENBERG ON
011 678 7431 OR VISIT
www.homenet.co.za
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24 October 2008, 07:56:23
World financial woes have altered APKF’S buyer profile
Anne Porter Knight Frank, which has its headquarters in Claremont, and is firmly ensconced in many of the upmarket suburbs like Constantia, Kenilworth and Bishopscourt, report that already they are seeing a marked change in their buyer’s profile as a result of the financial problems that have hit world markets.
“In recent years,” she said, “we have regularly sold to young, upwardly mobile executives from the financial sector – investment bankers, hedge fund and unit trust CEOs, financial counsellors and the like.
“These people had sometimes made fortunes in three or five years – and their huge buying power had a noticeable effect in their pushing prices up at an exorbitant rate.
“We sometimes saw them buy prime area high priced properties and then spend equal or greater sums on demolishing and rebuilding the home.
“Now they are suddenly no longer around – and the residential market has returned with a resounding thump, to “normality”.”
What this means, said Steward, is that for a short while (perhaps six to twelve months) prices are at levels that will probably never be seen again – and buyers should be getting in there and capitalising on this.
For overseas buyers, she said, there is a temporary window of opportunity while the rand remains weak and those buying now could in the next month or two find that they are able to get in on good property at a 15% discount. However, she added, sellers must remember that they are competing in the global market and although SA might have bargains, many other countries are now offering good value buys at low-low prices.
Sellers, said Steward, still have to heed the constant warnings from all property sector spokespeople that they must come to turns with the market realities and not fall into the trap of putting their homes on the market at dream prices – only to find them rejected by buyer after buyer.
“Rather than follow this course, if they are not serious sellers and put their houses on at a market related price, they should hold back and sell next year or later,” she said. “Any home which sticks on the market picks up a stigma which ultimately results in it going for below its true value.”
For further information contact Lanice Steward on 021 671 9120 or email lanice@anneporter.co.za.
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24 October 2008, 07:55:02
Deeds office processing greatly speeded up by lower throughput
One of the major problems in the Cape property sector has been solved by the drastic slow down in house sales: the Deeds Office is now no longer over-burdened and has been able to catch up to a remarkable degree on the transfer of properties and the registration of bonds.
At the height of 2006/2007 boom, said Bill Rawson, CEO of Rawson Properties, it often took three months or longer to finalise a transfer, with the possibility of further delays if there were any mistakes in the documentation.
Today, said Rawson, an efficient conveyancer is usually able to transfer and tie up all the legalities on a property within six weeks, the Deeds Office paper work being completed within ten days.
This rapid improvement, said Rawson, has caused difficulties for a few buyers, particularly those planning to use the proceeds of a previous sale for the new purchase. Some have had to pay for their new property well before receiving the money from their previous home and this has involved them in finding expensive bridging finance.
Rawson pointed out, however, that it is perfectly acceptable to include a clause in the sales document stipulating that the payment is contingent on the full payout from the first property being received. Buyers should insist that such a clause is written into their documents if there is any doubt as to when a sale will go through.
For further information contact Bill Rawson on 021 658 7100 or email bill@rawsonproperties.com.
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24 October 2008, 07:52:21
Political uncertainty now more serious than global meltdown for South African property prospects, says Rawson...
Discussing the current property scenario with a few of his Cape franchisees recently, Bill Rawson, Chief Executive of Rawson Properties, said that in his opinion many of the big fears regarding the impact of the world’s debt crisis are being discounted by the South African property sector which is now beginning to look forward to a slight upturn in sales in 2009.
But, said Rawson, he is finding that he is now being increasingly questioned about South Africa’s political future.
“Regrettably,” he said, “there is a growing concern that the direction South Africa might take could be unduly influenced by distributionist left wing policies and, in particular, by the very inexperienced ANC Youth League. If this happens, it will definitely deter investors.
“I am now regularly encountering concern about the lack of censure from the Zuma faction leaders regarding the ANC Youth League’s more irresponsible statements. This appears to indicate that they are unsure of their stance in economic matters and that there is less respect for the constitution. The statements seem to indicate a willingness to ignore the courts and the rule of law and to ride roughshod over other people’s opinions. This perception has very definitely been harmful to South Africa’s image.”
For many, added Rawson, the possibility of a strong opposition to the ANC alliance emerging is welcome - but until clarity on these matters is achieved uncertainty will hold back investors, developers and man-in-the street buyers from committing themselves in the property sector.
“Let us hope that before the end of the first quarter of next year the leaders, whoever they turn out to be, will have given the general public some assurance that South Africa understands and accepts the beneficial role of private enterprise. The country now desperately needs to step up its growth rate and go forward despite the effects of the First World’s economic failures.”
For further information contact Bill Rawson on 021 658 7100 or email bill@rawsonproperties.com.
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23 October 2008, 16:01:57
A major South African bank has launched an affordable housing finance offering to South Africans earning below R9,760.
The affordable home loans stems from the announcement of a €40m subsidised loan agreement between Nedbank and the French Development Agency (AFD) for the provision of loans for low income housing.
Jeff Lawrence, Nedbank Retail's head of affordable housing, says despite the government's efforts, there continues to be many challenges in the low-income housing arena, such as growing affordability issues where the costs associated with land, infrastructure and building, together with soaring interest rates, are by far out stripping the earnings of the market.
The housing finance scheme is characterised by first-to-market initiatives including a once-off non-refundable grant of R8,500 for applicants.
The grant will be used to cover legal and up-front home loan costs, and the remainder will help reduce the loan amount. Another feature is the 12-year reducing cap interest rate.
The benefit of this rate structure is that the client never loses out when interest rates move - the client's interest rate will never go up but may go down should the interest rates move below the client's original agreement rate. This mechanism ensures home owners are protected from the vagaries and uncertainty associated with a fluctuating interest rate environment.
The home loan agreement period can exceed the 12-year reducing cap period and is typically 20 years. After 12 years, the agreement will revert to a variable rate, but clients can negotiate any other interest rate option that may be available at the time.
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23 October 2008, 12:13:13
With climate change being such a prevalent issue, some may argue that water shortages may become the 21st century’s most burning environmental concern. As an established and attractive garden can add substantial value to your property, a water-wise garden could well be a sensible investment.
South African gardens consume an estimated 30 to 50 percent of domestic water. With an average annual rainfall of 500 millimetres, water has become a dwindling resource in our dry country. By making your garden water-wise, both cost and waste can be cut down while still preserving its natural beauty.
Cut down on lawn areas
According to SmartStone, a manufacturer of cast stone products, adding hardscaping elements to your garden provides an architectural feature that is both water-wise and aesthetically pleasing. Bear in mind that the style of hardscaping used can influence the overall feel of the garden. A straight, paved path will, for example, create a structured formal feel while a meandering path of railway sleepers is less structured and could invite exploration. By adding a circular feature or cobblestone path you can cut down on lawn areas and reduce your garden's watering requirements.
Before starting any landscaping project it is important to look at all elements and work on a plan that flows naturally into the landscape. The lie of the land may influence placement of hardscaping elements, particularly if drainage is affected. By holistically planning all aspects of the garden, the design can fit into your plans for future landscaping projects. With little effort established gardens can be made water-wise. However, planning to be water-wise from the start is far easier not to mention cheaper.
Plant choice plays a very important role in establishing a water-wise garden. Bedding plants can consume a lot of water, but by mulching and adding water retention granules to the soil you can substantially reduce the need to water. It is essential to group together sought after or favourite plants that require regular watering. These should be in a prominent section of your garden. Plants that require less water can then be considered for the rest of the garden.
Crisp, clean lines give a stylish feel
James Metcalf, director at SmartStone says: "Garden kerbs can create a beautiful natural line between the garden beds and the lawn. They will retain water and contain the ground cover or mulching in the bed." Edging can add a sense of order and define spaces in your garden while also creating focal points. Crisp, clean lines will give the garden a well-organised, stylish feel that can flow from the exterior of your home.
No garden is complete without a birdbath or water feature. Water is a calming element that will create a greater sense of tranquillity in any environment. You can minimise evaporation by placing water features and birdbaths in shaded areas of the garden. The use of cast stone pots for topiary-type gardening can also reduce evaporation. Cast stone stays cooler than plastic which absorbs heat much quicker than stone containers.
When making hardscaping choices it is important that the style and surfaces are harmoniously linked and complement the overall feel of your garden. A water-wise garden can be a beautiful extension to your home while simultaneously taking care of the environment we live in.
A circular feature that reduces a garden's watering requirements.
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22 October 2008, 12:46:05
The financial institutions’ clamp down on defaulting mortgage bond repayments has made it absolutely essential for those landlords who are themselves bonded to receive payment from their tenants on time every month, says Bill Rawson, Chief Executive of the Rawson Property Group.
“In the old days,” said Rawson, “the banks were often prepared to be understanding about landlords who had difficulty in getting their tenants to pay their rents and they were open to extending bonds and granting access facilities on existing bonds without stringent credit limitations.
“Those days regrettably are now over. Since the National Credit Act the banks have been forced to become very unsympathetic about any breaches in the mortgage repayment schedule.”
Should a landlord fall behind on his bond repayments, said Rawson, he may well find that he is credit black listed with those organisations that keep track of these matters. This will make it difficult for him later to get a new bond or indeed any other form of credit.
For tenants, said Rawson, the tighter restrictions have also made life far more difficult. They are often expected to pay upfront a deposit equal to two or three months’ rental. Previously the deposit was often only one month’s rental and many landlords would accept deferred payment of it.
Later, when the tenant decides to move on, the deposit is often not paid back until he has completely vacated the premises, the reason for this being, landlords claim, that they cannot properly assess damages until the premises are empty.
This in turn means that when asked to pay a new deposit for their follow-up premises they frequently do not have the money. The net result, said Rawson, is that tenants are now far less mobile and far more likely to extend their leases than they were before.
One of the main lessons to be learned by estate agents from the current conditions, said Rawson, is that the initial vetting and selection process of tenants now has to be even more thorough and it will pay landlords to use those agents with experience in these matters.
“It is only too easy for an inexperienced landlord to be bluffed by an impecunious but glib possible tenant. We have recently seen several instances where the references, on being thoroughly checked, turned out to be bogus and the credit track records in some cases absolutely disastrous - but it needs a good agent to unearth these facts.”
For further information contact Bill Rawson on 021 658 7100 or email bill@rawsonproperties.com.
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22 October 2008, 12:13:16
One of the major problems in the Cape property sector has been solved by the drastic slow down in house sales: the Deeds Office is now no longer over-burdened and has been able to catch up to a remarkable degree on the transfer of properties and the registration of bonds.
At the height of 2006/2007 boom, said Bill Rawson, CEO of Rawson Properties, it often took three months or longer to finalise a transfer, with the possibility of further delays if there were any mistakes in the documentation.
Today, said Rawson, an efficient conveyancer is usually able to transfer and tie up all the legalities on a property within six weeks, the Deeds Office paper work being completed within ten days.
This rapid improvement, said Rawson, has caused difficulties for a few buyers, particularly those planning to use the proceeds of a previous sale for the new purchase. Some have had to pay for their new property well before receiving the money from their previous home and this has involved them in finding expensive bridging finance.
Rawson pointed out, however, that it is perfectly acceptable to include a clause in the sales document stipulating that the payment is contingent on the full payout from the first property being received. Buyers should insist that such a clause is written into their documents if there is any doubt as to when a sale will go through.
For further information contact Bill Rawson on 021 658 7100 or email bill@rawsonproperties.com.
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22 October 2008, 11:19:21
The Trafalgar City report 2008, launched on Thursday, reveals that analysis done on private and public sector property sales over the past two years has unearthed interesting trends throughout South Africa.
It showed that highly sought-after residential areas have experienced dramatic property price hikes despite the escalating interest rates.
According to the report several suburbs have shown sales growth in three-bedroom houses and a corresponding drop in smaller home purchases.
Increase in smaller home purchases
Other areas confirmed an increase in smaller home purchases as entry-level homeowners seek cheaper options in bachelor flats and one-bedroom homes.
The report also highlighted some of South Africa's social housing challenges.
Provision of rental housing for lower-income earners caught between government-subsidised homes and having the capital to purchase their own accommodation has not typically been viewed as the realm of the private sector.
"When seeking solutions to the country's low-cost housing crisis, the government has often attempted to adopt and apply international best practices to the local environment," said Trafalgar managing director Andrew Schaefer.
Private sector should supply social housing
Schaefer said one lesson South Africa can take to heart is that internationally, particularly in developed countries, the private sector is expected to contribute towards boosting social housing stock.
"An estimated 20 percent of local households live in rental accommodation with the bulk of these being among poor and low-income earners and around 55 percent have a monthly income below R3500 while another 22 percent earn between R3500 and R7500," he said.
According to the report among the country's biggest problems is the quandary on breaking the vicious circle of insufficient means for investing, land scarcity and costs, residents' ignorance about regular rental payments, poor local government management, lack of experience among housing corporations and private managers and the lack of trust among the participants concerned.
The report highlighted that the worldview is slowly shifting towards sustainability
The report highlighted that the worldview is slowly shifting towards sustainability and the concept of green building — the practice of increasing the efficient use of resources by buildings and reducing the impact construction has on human health and the environment.
South Africa has been criticised for lagging on these issues, which the report reflects is an issue the newly established Green Building Council of South Africa aims to tackle.
The government is also retrofitting more than 106 000 buildings and public offices in line with 'leading by example'.
"Essentially South Africa has the systems, legislation and policies in place to deliver on its housing requirements. The way forward demands large-scale implementation, unrelenting follow-through on non delivery, consistent engagement with stakeholders and communities and the strict enforcement of existing legislation," Schaefer said.
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22 October 2008, 09:22:10
Political uncertainty now more serious than global meltdown for South African property prospects, says Rawson
Discussing the current property scenario with a few of his Cape franchisees recently, Bill Rawson, Chief Executive of Rawson Properties, said that in his opinion many of the big fears regarding the impact of the world’s debt crisis are being discounted by the South African property sector which is now beginning to look forward to a slight upturn in sales in 2009.
But, said Rawson, he is finding that he is now being increasingly questioned about South Africa’s political future.
“Regrettably,” he said, “there is a growing concern that the direction South Africa might take could be unduly influenced by distributionist left wing policies and, in particular, by the very inexperienced ANC Youth League. If this happens, it will definitely deter investors.
“I am now regularly encountering concern about the lack of censure from the Zuma faction leaders regarding the ANC Youth League’s more irresponsible statements. This appears to indicate that they are unsure of their stance in economic matters and that there is less respect for the constitution. The statements seem to indicate a willingness to ignore the courts and the rule of law and to ride roughshod over other people’s opinions. This perception has very definitely been harmful to South Africa’s image.”
For many, added Rawson, the possibility of a strong opposition to the ANC alliance emerging is welcome - but until clarity on these matters is achieved uncertainty will hold back investors, developers and man-in-the street buyers from committing themselves in the property sector.
“Let us hope that before the end of the first quarter of next year the leaders, whoever they turn out to be, will have given the general public some assurance that South Africa understands and accepts the beneficial role of private enterprise. The country now desperately needs to step up its growth rate and go forward despite the effects of the First World’s economic failures.”
For further information contact Bill Rawson on 021 658 7100 or email bill@rawsonproperties.com.
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21 October 2008, 12:26:24
A development in Cape Town’s Woodstock has been selected as the best development is South Africa. This news is especially surprising given the impressive number and quality of developments in South Africa generally
Upper East Side, a ‘green’ mixed use development in the heart of Cape Town’s Woodstock is officially South Africa’s Best Development (Multiple Units).
That’s according to CNBC Africa Property Awards 2008 who awarded the title to developers Swish Property Group and listed property stocks Madison Property Fund Managers on behalf of the Redefine Income Fund. As with all competitions there are only a few winners and these were revealed at a gala presentation dinner at The Park Lane Hotel in London recently.
Comments Giancarlo Lanfranchi, Swish Property Group CEO, one of Cape Town’s inner city rejuvenation and mixed use development pioneers, “We are incredibly proud of Upper East Side which continues to surprise and impress all who visit it. Not only does it bring our live, work, play philosophy to life, it is considerate to the community in which it is situated by making a major contribution towards inner city rejuvenation. The fact that it’s eco-friendly only adds to its success.”
A CNBC spokesperson said that it’s vital for estate agents, developers and others involved in the property business to be competitive to succeed in such a highly competitive industry. “This desire to be the best has been channelled by a large number of professionals entering the African Property Awards in association with CNBC.”
Supported by a host of well-respected professional bodies such as FIABCI, NAEA and NHBC to name but a few, the awards are judged by an independent team of experts in the property, design and construction fields, together with property writers and sponsors.
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20 October 2008, 11:53:39
Low cost of living let down by rocketing inflation, according to study
With UK inflation hitting a 16-year high of 5.2% last month, where can you go to make your pound go further?
Research by currency specialist Foreign Currency Direct examined the cost of living across 10 of the most popular countries for British expatriates.
The findings reveal that two countries – at the top and bottom of the African continent – provide the best value for money.
Overall, Morocco was found to offer the lowest cost of living for day-to-day essentials such as food and utilities.
However, when the initial costs of buying a property and a car are taken into account, South Africa beats its continental rival.
The total cost for a shopping list of food staples such as bread and milk, plus quarterly bills for gas, electricity and water, a tank of petrol and meals and drinks at a pub or restaurant ranged from £144 for Morocco to £591 in Canada, the most expensive destination.
A car will set buyers back an average of £3,000 more in Morocco (just over £14,000) than South Africa (£11,305), tipping it into second place when it comes to value for money.
The most expensive place to purchase a four-door hatchback was Hungary, where costs were almost twice those of the US (£16,000 versus £8,500).
House prices further consolidated South African’s position as best-value destination. The average price for a two-bedroom house in South Africa is just over £45,000, compared to £56,000 in Morocco. At the other end of the scale, in France buyers will have to pay an average of more than £240,000.
There is a word of caution, however, for those looking to escape UK inflation.
While the UK rates are among the highest in established economies including France (3.7%) and Canada (3.4%), South Africa has the highest rate of inflation of the countries surveyed (13.4%).
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20 October 2008, 11:40:59
SOUTH Africa will be going green from next month when the first part of an environmental rating system is introduced to architects and property developers at a function to be held in Cape Town.
The rating system is based on a similar programme currently in operation in Australia and was adopted because climatic conditions are much the same.
The Australian green building council has offered the local body considerable assistance in establishing a South African version of the rating system.
Bruce Kerswill, chairperson of the Green Building Council of South Africa (GBCSA) said the proposal for the Green Star SA rating system was made public in July and 220 formal comments were received.
These were then considered by the technical group for final consideration.
“The voluntary Green Star SA rating system is now being finalised and will be presented to the public at the beginning of next month.”
Although the green building concept is new to South Africa, a green building is considered to be one which is environmentally efficient, involving design, materials and technology. A green building incorporates reduced heat loads, maximises natural light and promotes the circulation of fresh air, energy efficient air-conditioning and lighting, waste management and the use of renewable energy sources and environmentally friendly materials.
Craig Hallowes, a spokesperson for the Association of Property Unit Trusts, said that the Canada Green Building Council claimed that good daylight increased production by 13% and as much as 40% ; scholars could increase results by 5%; improved ventilation could lift profitability by 4% to 17%; absenteeism for illness was cut by 9% to 50%; while better ventilation added to productivity by 0.5% to 11%.
For property owners there are significant benefits. The fact that green buildings are preferred by tenants suggests that they will pay premium rentals and will have a higher occupancy rate.
Green buildings do not necessarily cost more to build than traditional buildings, but the savings in electricity and water use are major factors for property owners.
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17 October 2008, 15:36:06
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Edition 40 of 2008, Friday, 17 October 2008
Dear Reader
The AA (Automobile Association of South Africa) said this week that it is unlikely for the fuel price to go down. What about the interest rate? Will we ever know? We will have to wait and see.
Tony Clark, MD of Rawson Properties predicts that a drop in the interest rate could take place as early as December 2008. Clarke predicts drop in interest rates soon
Then on the other hand with the rand weakening and above target inflation rates Moody's Economy.com says it is unlikely that interest rates will come down well into next year.
All this leaves the consumer with the question should I buy property or should I rent?
Sometimes rent is dead money and sometimes it is not. If house prices are rising and interest rates are looking good it is always a good time to buy property. If house prices are falling and interest rates are high it is not always a good time to buy. It might be to your interest to rather rent and put away what you save for a deposit for when the market has recovered and the time is right to buy. The best advice is to look at your financial situation and if you are in your comfort zone to buy a property then do it and if not, rather rent.
Donald Trump, American business magnate, real estate developer, socialite, television personality and author has signed a 10 year agreement with a South African businessman to develop property in South Africa. Real Estate news - Trump to Open South Africa Property
With interest rates so high it is important to look at the bonds on your property and get the best rate possible. The "standard rate" is the amount of interest that you would pay if you got no discount. This according to valuer and estate agent Mike Spencer, Are you getting the cheapest bond? According to him discounts are given for the following reasons:
- Good credit record;
- High value bond;
- High deposit, low percentage bond against purchase price/value;
- Multiple bonds;
- Use of numerous services at the lending bank; and
- If you are a high income client
Go West! This is the message we get this week. From spring wildflowers to whale-watching, surfing, fishing or simply long walks on the beach, the Cape West Coast has much to offer those in search of a beachside holiday home or a permanent retreat from the rat race. The area is growing in popularity as a full-time residential alternative, while at the same time maintaining its reputation as a highly sought-after holiday destination. In the area...
Enjoy!
The editor
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17 October 2008, 08:15:51
A press release issued by Lanice Steward, MD of Anne Porter Knight Frank, which stated that top-end residential property in the prime positions of the world’s financial capitals, particularly London, had proved to be almost unaffected by the economic meltdown, has led to a number of sceptical comments from online watchers of property trends.
This week, Steward clarified their statement, again drawing on data supplied by APKF’s associate, Knight Frank, whose headquarters are in London and close to the action.
“Some of the readers of my statement appear to have thought that I was saying all top-end UK property has resisted the collapse – but that was not the case. What I said was that prime CBD residential London property (e.g. in Mayfair and Knightsbridge, much of which is owned by Americans and Middle Eastern landlords) had shown almost no drop – in fact, less than 5%.”
“The position with the other London properties is very different, Knight Frank report that outer London areas fell by over 15% in the last year while urban residential properties in most of the UK have fallen by well over 30% - and, it is said, continue to decline.”
Jon Neale, Head of Development Research at Knight Frank, has, said Steward, also highlighted the plight of developers in the UK. He calculated that over 60% of UK developments not yet launched are now on hold, in many cases because banks have frozen their assets pending the emergence of a clearer picture of the economy. Many developers, he said, are now selling sites to raise cash and bolster their balance sheets.
As in SA, said Steward, speculators with cash are now on the hunt for the bargain buys being offloaded by investors and developers, often at below 50% of their former value: 21% of buyers, Neale has said, are now speculators.
Neale, says Steward, expects a further across-the-board value drop of 10% in the next 12 months but believes that the territories which have seen the biggest drops (e.g. Yorkshire) will also see the earliest and most dramatic recoveries.
“As I have pointed out before,” said Steward, “that small group of buyers with a yen for a UK or French rural retreat should buy now. The KF Development Land Index shows price drops of over 40% in the North-West Scotland, Yorkshire and the Humber, while in the Bordeaux area centuries old vineyards can be had for R200 000 per hectare.”
For further information contact Lanice Steward on 021 671 9120 or email lanice@anneporter.co.za.
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17 October 2008, 08:12:20
Mike Greeff, CEO of Greeff Properties, has drawn attention to a recent analysis of the Cape residential property market compiled by Greeff Properties MD, Graham Leslie.
“I think,” said Greeff, “that Graham’s conclusions are worth noting because they tie in with what many other property sector spokespeople are saying and because Graham’s previous analyses have proved very sound.”
In his summary, Leslie said that in his view the Cape residential property market is at the bottom of the cycle and is in the process of turning the corner - and from now on should improve.
“Last Thursday’s decision by the SAR Bank to hold the interest rates at their current levels” (which Leslie predicted a month ago) “will boost buyer confidence and usher in a new economic scenario,” said Leslie.
He expects, despite the present world financial crises a drop in the interest rates to occur “before February” which would then be followed by another drop by latest June 2009.
“I think the Reserve Bank has to go this route,” said Leslie, “because, firstly, the inflation curve looks as if it has evened out and, secondly, growth has slowed. They must now do something to get growth back to well above 4% - and a lowering of interest rates could achieve this.”
Every sector of the property industry, said Leslie, had been hard hit by the recent slowdown. New residential development is down 70%, loans to homebuyers have been cut by almost 50%, bond originators are going out of business, conveyancers are laying off staff and the number of registered estate agents in SA has dropped from 85 000 to 55 000.
“It is also worth noting,” said Leslie, “that this time higher interest rates did not cause a significant strengthening of the rand. Many people, therefore, are now saying that we should follow Australia’s lead and that of other leading countries and drop interest rates. When this happened recently in Australia, there was an almost immediate halt to stock exchange drops and a rise in consumer spending.”
South Africa, said Leslie, had been far less affected than most by the collapse of world markets for three reasons: we were protected by our exchange controls (previously said by some economists to be archaic); the National Credit Act, although unpopular, had saved South Africans from dangerous high consumer debt; and the funds now available for infrastructural development will prop up the economy for another two to three years.
“All in all, therefore,” Leslie concluded, “we can look forward to a slow but steady recovery in the residential sector.
“This leads me to say, as so many others are now saying, that the next two to three months would be a good time to buy. Of course this is what agents are expected to say, but here at Greeff’s we are now seeing those able to get bonds – or holding cash – now taking this advice to heart. Let us hope that before long the lower and middle income earners will be able to follow suit.”
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17 October 2008, 08:10:43
Located in the Randburg suburb of Broadacres, San Henrique is an almost completed cluster development offering five different home designs for buyers to choose from.
Available in two and three-bedroom configurations, all with 2,5 bathrooms and double garages, the homes are Tuscan in overall style although buyers have the opportunity to choose their own finishes. Prices range from R867 000 to R1,395m, in addition to the stand price of R500 000.
San Henrique is being marketed by Joep Rijntjes of Century21 ModHomes, who says the development’s proximity to good schools as well as the Broadacres shopping centre which incorporates a gym, variety of restaurants and a Barnyard theatre make this an excellent investment opportunity before prices start rising again next year.
Buyers to date have mainly been from surrounding areas and through relocations from other parts of the country.
The development is designed to appeal to young professionals and families, with low-maintenance homes set in private walled gardens. The security provisions are excellent, with controlled access through a guarded gatehouse and regular patrols as well as zoned electronic perimeter fencing.
“Home loans can be arranged through Bond Choice, which will obtain the best rate possible, subject to financial affordability. There is no transfer duty payable on these homes,” says Rijntjes.
Issued by Century 21
For more information call
Joep Rijntjes at
Century 21 ModHomes on
011 465 2438 or visit
www.century21.co.za
Distributed by/ versprei deur
The Mega/ Press Network
Pse direct any enquiries to
012-333-6644,
073-946-9649 or
megw@telkomsa.net
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17 October 2008, 08:07:59
Demand boosts rentals in Strand, Gordon’s Bay
Rental accommodation is in strong demand in Strand and nearby Gordon’s Bay, with top properties attaining rentals of R9000 a month.
Karen Coetzee, co-owner of the local Homenet Two Oceans office, reports that demand has climbed steeply on the back of tougher economic conditions and that rentals now start at around R3000 a month for two-bedroom flats and average R5000 to R6000 a month for family homes.
At the same time, says agency manager Tasha Williams, there is still reasonable buying activity in the under-R1m price range.
“Areas with more affordable properties, such as Onverwacht and Southfork, are drawing upgraders from Kuilsrivier, Eersterivier and Mitchell’s Plain. Most properties in these areas are in the R600 000 to R800 000 bracket and the local mosque and good shopping facilities are additional attractions for buyers.”
“In Strand Central, flats are still available at prices of between R600 000 and R900 000. House prices range between R1m and R2m and there is demand for the older, character homes with their large rooms, wooden floors, and arches although such units are seldom offered for sale,” she says.
Investors are targeting units in Strand’s Broadlands, mainly with an eye to rent to migrants. Williams says prices for compact flats and townhouses in this area range between R350 000 and R500 000.
Meanwhile sales in the higher price categories are still ticking over, albeit at a slower pace. Williams points to a luxury unit in Gordon’s Bay’s Beach Road, which languished on the market for four years before being sold recently for R10m, a record for the area.
ISSUED BY HOMENET
FOR FURTHER INFORMATION:
KAREN COETZEE OR TASHA WILLIAMS AT
HOMENET TWO OCEANS ON
021 853 2380 OR VISIT
www.homenet.co.za
Distributed by/ versprei deur
The Mega/ Press Network
Pse direct any enquiries to
012-333-6644,
073-946-9649 or
megw@telkomsa.net
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16 October 2008, 09:02:45
A Dubai-based real estate company said on Monday it plans to build a multi-billion-dollar themed entertainment development in South Africa, the largest of its kind in the African continent.
'Amazulu World' will be "a multi-billion-dollar themed entertainment and mixed-use destination development on the north coast of Durban," the firm Ruwaad said on the first day of an international real estate exhibition.
Largest in Africa
"The project will be a master-planned, uniquely African destination development covering approximately 16 500 hectares (40 750 acres) of land and will be the biggest and most comprehensive development of its kind anywhere in the African continent," it said.
Key elements will include Africa's first world-class internationally branded entertainment theme park, Africa's largest shopping destination, a sports village, a dedicated education and health village as well as hotels and resorts.
"South Africa's hosting of the 2010 football World Cup, its heavy investment in infrastructure and the recent surge of foreign investments in tourism projects will support this development in becoming the destination choice of Africa," said Ruwaad CEO Hayan Merchant.
Built in phases over 25 years
The development will be built in phases over 25 years, the company said.
Property developers in Dubai on Monday shrugged off the global financial turmoil to announce mega projects at the opening of Cityscape 2008, an annual four-day real estate exhibition.
One government firm said it planned to build a 'new city' in the booming Gulf emirate at a projected cost of US$95-billion dollars.
Developers based in Dubai, which is part of the oil-rich United Arab Emirates, are also involved in major real estate projects overseas.
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15 October 2008, 14:52:53
Donald Trump recently announced that his real estate company will move into South Africa in a joint venture with local businessman Neill Bernstein. The two real estate moguls will work on a variety of properties, including golfing, hotel and residential developments. They have signed a 10 year agreement, and the next few years are expected to produce a myriad of new properties for sale.
Bernstein, who is one of the largest real estate developers in the country and owns Devland Holdings, has indicated that there are several projects already in the works. He recently took Donald Trump Jr., the eldest son of Trump, on a tour of potential projects and sites in South Africa. Trump Jr. is expected to lead the company’s venture in South Africa.
The Trump Organization, once a mostly US oriented company, has expanded overseas in recent years with new developments in Dubai, Panama, and Asia.
“It makes sense for them to look at projects in Africa too,” said Bernstein. “The organization has a great formula for success, enormous experience and an appetite for quality developments across the leisure, golf and residential spread. There is an opportunity for all these in our market.”
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15 October 2008, 14:41:36
South African home loans originator ooba on Tuesday said that the global stock market meltdown and worldwide banking failures are likely to spur renewed interest in the safety of bricks and mortar.
Chief executive of ooba Saul Geffen said that recent events are likely to lead investors to re-look at property as a safe haven investment after losing confidence in shares and banks.
"The property market is compelling right now as investors will feel more secure having their money in a tangible asset with underlying inherent value in the land, and which they control directly," says Geffen.
The company said that house prices in South Africa have been relatively flat and in some cases fallen in the past year, while rental yields have risen from greater demand for rental property, as buyers have been unable to raise finance.
"Stock market meltdowns are likely to underpin the case for property as investors are comparing it to riskier paper investments," said Geffen.
He said that cash buyers will be in a particularly strong position to snap up properties because of the bargaining power cash has. But other investors will also seek the relative safety of property investment.
Geffen noted that existing investors who have the experience to cope with the current market conditions would initially lead this trend.
"With property, you can feel it, touch it and see it and you know it cannot be taken from you. With a worldwide recession looming, equity markets are unlikely to perform for the next few years, so investors will inevitably be switching some money from equities into property", says Geffen.
The company said that the latest 'oobarometer' price index showed that average house prices have risen 3,4% in the month of September 2008, year-on-year, and that the average purchase price in September jumped 2,4% from August 2008, bringing the price rise since July 2008 to 1,6%. - I-Net Bridge
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14 October 2008, 16:13:29
 The residential property market in the middle to lower south coast area of KwaZulu-Natal remains resilient, with value for money one of the region's key selling points, reports Pam Golding Properties.
In Pennington, homes with direct beach access are selling up to around R3.5 million, while those with sea views sell priced mainly up to approximately R1.3 million - sound value when compared with beachfront homes elsewhere.
PGP's area principal Stefan Nel says buyers include a mix of upcountry buyers seeking holiday homes which they can share with friends or family, and either small freestanding homes or those within a secure complex for retirement purposes.
"In addition, we anticipate that the new Arbour Town giant shopping mall currently under construction in nearby Amanzimtoti will have a positive impact on residential property along this entire area of the south coast.
Further good news is that we have increased our rental portfolio, with an increase in home owners putting their holiday homes into the permanent rental pool. This is coupled with the fact that higher rentals are now being achieved - some 15-20 percent more than previously. Homes to rent offer good value, ranging on average from R3000 for a three bedroom home with single garage to R5000 per month for a good quality four bedroom home with double garage," says Nel.
Further south at Umtentweni Herman and Carolina Reyneke of PGP report that an increasing number of enquiries are from local buyers, including those from elsewhere in KwaZulu-Natal. "We are seeing a marked trend towards those wishing to purchase homes for permanent residence - including retirement - which bodes well for confidence in our area. Buyers are becoming aware of the huge value for money which we offer. For someone looking to retire, an example of the excellent value is a beautiful two bedroom sectional title home within a secure complex which we are currently marketing at just R550 000. This includes its own private garden and undercover patio. The average price of a three bedroom, two bathroom home with quality fittings ie a good sized family home, is between R800 000 and R1 million. Umtentweni is an attractive area, popular among professionals, with neat, well maintained homes and neighbourhoods," adds Carolina.
Being more a location for permanent residence rather than a holiday home/holiday letting scenario, the Port Shepstone the property market remains active, with most buyers those at the upper end of the market - either upgrading or investing, report Veshad Pooran and Nirvana Maharaj, PGP area principals. "The value of properties currently being sold ranges from R800 000 to R1.5 million. With some stands in the Port Shepstone area in the region of 2500sqm, we're also currently receiving calls from a number of owners wanting to subdivide stands to sell, in order to reduce their rates bill," comments Pooran.
Further down the south coast Dina Porteous, PGP area principal for the areas Shelly Beach, St Michael's on Sea, Uvongo, Margate, Ramsgate and Southbroom, says in Shelly Beach sales remain steady, with average prices currently around the R1.3 million mark. "Dubbed the gateway of the south coast, the Shelly Beach market is driven by both the residential and the holiday market as it is the 'new area' of the south coast. Gated estate living close to schools and major shopping areas proves a compelling drawcard for permanent residents relocating here from other areas. Uvongo, a more established residential area, offers good buying opportunities for those prepared to do some renovations. Average prices here are up from approximately R915 000 in
2006 to R1.15 million this year. Complexes such as St Michael's Manor in St Michael's on sea offer clients excellent value for money with an average price per square metre of R5500, making them affordable and ideal for retirement."
Porteous says in Margate the sectional title and general residential markets have moved in opposite directions in terms of price appreciation. "While the average sectional title unit is currently around R2.8 million - up from R1 million in 2006, the residential market stands at an average price of around R660 000, down from R1 million two years ago. This could be due to the fact that most of the old beachfront lodges have made way for upmarket beachfront apartments for sunseekers, resulting in the Margate residential market 'moving' to Shelly Beach. One of the most consistent markets in the area, Ramsgate's sales remain stable as does the average price of approximately R1.2 million. With its lush gardens, well organised ratepayers' association, good community policing, shopping centres, school and long stretches of beachfront this area is safe and central for both permanent and holiday markets."
She says upmarket Southbroom, with its top golf course and well kept common areas, attracts the high end buyer particularly those seeking a tranquil coastal hideaway, and the property owners' list reads like a who's who.
"Although there are very few sectional title properties available the attraction here seems to be for gentleman's residences, three of which are currently marketed under sole mandate by PGP, priced between R8.5 million and R15 million. These quality homes offer outstanding value for money and it's not often that buyers have this opportunity to own the best the area has to offer," says Porteous.
In the Port Edward area, PGP's Cathy du Plessis says most buyers seeking property in the area are cash buyers, looking for good buys for investment. She says there is also interest in vacant land mainly from upcountry buyers - again mainly for investment purposes. "Enquiries generally are for tracts of land in the region of 22 000sqm and priced around the R3 million mark, which represents good value for money as these sites tend to be around the golf course, with sea views etc. This bodes well for future development as these are savvy investors with an eye on the future, securing land with a view to development when the market is ready." She says in addition, there remains a steady demand for homes for permanent letting, mainly in the R3 500 / R4 000 per month price range.
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13 October 2008, 16:27:55
The Rawson Property Group's sales in September were the best they have achieved in the last eleven months. This, says Tony Clarke, the MD, indicates that the South African residential property market is at last on a path to recovery.
After last week's welcome South African Reserve Bank decision to leave the interest rates as they are, Clarke predicts that the first long-awaited drop in the rates could take place as early as this coming December.
Citing the factors mentioned by many economists recently - a drop in inflation and especially the oil price and the need to stimulate the economy - Clarke says he can now see no reason to keep the interest rates at their current levels. He expects the rate, in fact, to hit 13% by mid-2009 and he is confident that demand for houses will pick up month-by-month from now on.
Right now, he adds, the market remains tough. Quoting the FNB Property Update, he says that nowadays 88% of properties are sold below their asking price (in 2007 the figure was 73%) and on average it takes five months to sell a home - as compared to two and a half months in 2007.
Shrewd investors with resources, he adds, are cashing in on the bargains now available: 13% of buyers are now buying to rent out the property.
South African property in 2009 is, says Clarke, in for a "ride of a lifetime".
"Those of us in the Rawson Property Group are now being asked a lot of questions about how the global economic crisis will affect South African property.
"As many spokesmen have recently explained, the South African economy has felt the impact of this very serious meltdown less than most other countries and the reasons for this are that we have been protected by our conservative currency exchange rulings (previously often criticised as archaic) and the National Credit Act, which, although it arrived late, did prevent the average South African becoming seriously over-borrowed.
"Equally important perhaps is the perception now in the international market that following the bail-out by the US Federal Bank of Fanny Mae and Freddy Mac no further major rescues will be necessary. If this turns out to be true - and we can only hold our thumbs and hope that it does – the international economic scenario could now be on a very slow recovery path, which, again, will benefit South Africa."
Particularly beneficial to the Rawson Property Group, says Clarke, has been the new company Rawson Finance, which has been in operation since 1st May to help clients access bond mortgage credit.
This company, says Clarke, has been achieving a 40% increase in sales per month at a time when other bond originators have been laying off staff in large numbers. The reason for this, he believes, is that the team work between the agent and the Rawson Finance people has resulted in their presenting the bond applications in more creative and innovative ways than was hitherto the general practice.
"Believe me," says Clarke, "the fact that the agent will lose the sale if the bond application is not approved has proved a major motivating force and, building on their many years of previous experience, the Rawson team has in a very short time learned to present Mortgage Bond applications in a way that makes it far easier for the banks to accept them."
Vivienne Ferguson of Rawson Finance commented that the deposits now being received are very often larger than previously - often 40% to 50% of the sales price. This, she said, indicates that there is a trend towards scaling down and towards accepting the stricter credit restrictions of the National Credit Act. This augurs very well for the future of the South African housing sector because it shows that South Africans are at last coming to terms with market realities, said Ferguson.
For further information contact Tony Clarke on 021 658 7100 or email tony@rawsonproperties.com.
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13 October 2008, 16:27:20
One of the saddest aspects of the current slow-down in the residential property market is that buyers faced with having their homes repossessed as a result of falling behind in the payment of their bonds all too often take no steps to avoid this and minimise their losses.
This was said recently by one of Rawson Properties’ most successful franchisees, Johann van der Merwe, owner of the Rawson’s Somerset West, Strand and Gordon’s Bay franchises (the last two now operate as one from the Strand office).
Van der Merwe said that he has yet to find a case where a home repossessed by a bank and sold on auction is bought at anything like its true market value.
“It is always,” he said, “infinitely preferable for the bondholder in difficulties to come to his estate agent and get him to sell the home as quickly as possible. That way, he will get a far better price than is achieved at a repossession auction.”
Bondholders in difficulties, said van der Merwe, are often understandably too proud to admit this to an agent but in eight cases out of ten their predicament is not of their own making but due to adverse economic conditions.
“Experienced agents understand this because these days we have numerous clients in the same boat,” said van der Merwe.
In some cases, he added, the agent can actually help the bondholder to retain ownership of his property by advising him how to negotiate a new deal with the bank.
Rawson’s MD, Tony Clarke, has pointed out that every bank with whom he has discussed bondholders’ problems has indicated that they are prepared to be flexible and to adopt such measures as extending the bond repayment period or allowing the bondholder to pay only the interest for a specified period of time.”
For further information contact Tony Clarke on 021 658 7100 or Johann van der Merwe on 021 854 8905.
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13 October 2008, 07:37:39
The new entry qualifications for estate agents which became effective on 15th July this year have created barriers to the profession and will in the long run further reduce the number of agents in SA, says Bill Rawson, Chairman of Rawson Properties – but, he adds, those agents who are daunted by the prospect of training and writing examinations and are planning to give up should not do so.
“It should be recognised that the new challenges are not that difficult and once met, will add greatly to the skills of agents. Agents must realise that there is no immediate cut-off point. If you fail to qualify now, you have until 2013 to try and try again.”
All new agents now entering the profession have to serve a one year internship during which they have to be supervised by a qualified agent with at least three years experience. Thereafter, they have to undergo further update training each year. Those with tertiary qualifications and/or property experience can, under a “recognition of prior learning” arrangement apply for credits on this account.
Right now, said Rawson, no qualification is in place for principals. This means that currently only existing principals are allowed to run franchises or branches – but it is hoped that the matter will be put right soon.
“The new regulations place existing agencies with trained staff in a very strong position. They were, however, never meant to create a monopoly but simply to raise the standards in the property marketing sector. It may be that the these academic type qualifications provide only a partial solution, but at least they take cognisance of the fact that property selling requires a whole range of expert knowledge – and far too many agents have until now seriously lacked this.”
For further information contact Bill Rawson on 021 658 7100 or email bill@rawsonproperties.com.
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13 October 2008, 07:37:04
Holding onto too high a price still the main mistake that sellers make
Perhaps the most common mistake made by sellers of homes in the current market is still to insist on a price that is no longer acceptable, says Bill Rawson, Chairman of Rawson Properties.
“The plain truth,” said Rawson, “is that Cape property prices, while continuing to perform better than most others in the SA, have come off their 2007 peak by 20%. However, when a certain type of seller finds that the offers he is receiving reflect this, he goes into a state of denial, blames the agent, the advertising or some other factor and holds on stubbornly to his original prices.
“This invariably leads to the property sticking on the market for six to twelve months, after which it is quite likely to be below its true market value because it has picked up a certain stigma. Buyers suspect that it has some hidden fault which prevents it from selling.”
The right time to lower the asking price of your home, said Rawson, as soon as you realise that your price is not going to be accepted. If you do that many of the original potential buyers will regain interest in the home.
“I do realise,” said Rawson, “that it can be emotionally upsetting for a seller to reduce the price on a home on which he has spent money and lavished care but the reality is that buyers are now in the best position that they have been in for nine years. There is, therefore, absolutely no point in sellers trying to buck the trend and talk buyers up – it is a tactic that almost never works.”
The number of homes on the market, said Rawson, has dropped by 20% and the time taken to sell a property is now between 12 and 15 weeks, almost twice as long as in 2007. What is more, said Rawson, he does not see the situation changing noticeably for a year, although the SA Reserve Bank’s decision not to raise interest rates has stabilised the market and probably marks the end of the downturn.
“Despite the difficulties with getting bond finance, now is a wonderful time to buy. This is a message we need to put out into the market which, in its reaction to the downturn, ha now grown overly cautious and negative. Property remains a top-line investment and this has never been truer than in today’s tough sale conditions.”
For further information contact Bill Rawson on 021 658 7100 or email bill@rawsonproperties.com.
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13 October 2008, 07:36:09
Bottoming out of market now a reality, says Bill Rawson
Eight weeks ago Bill Rawson, Chairman of Rawson Properties, said that, while it could take as much as a year for the turnaround to become fully evident, the SA residential property market had bottomed out and could now only improve.
This prediction, it now transpires, is becoming a reality: Rawson revealed this week that his group, which has just over 140 franchises nationwide, had bounced back from a low in May / June to record a 250% increase in sales in September.
Rawson did, however, make the point that this upswing was no means universal and that his company was possibly unique in this respect.
“At this stage,” he said, “I think our group is one of the very few which can report such a turnaround. Many smaller agencies are still going under and agents are still leaving steadily: the national figure for registered agents is now down from 85,000 to 55,000.”
Asked to what he ascribes this success, Rawson gave both political and economic reasons, he said that there is now a widespread belief that although interest rates are likely to decline, further rate increases are also unlikely and this has had a noticeable stabilising effect on the market.
“Also,” said Rawson, “although there are big questions about the direction the new political leadership will take and exactly how the ‘fairness to all’ dispensation will play out, the change in leadership has been well handled. It is also recognised internationally that the constitution-related way in which the President stepped down reflects a certain maturity in our politics today which has certainly not been typical of many African countries to our north.”
Added to these positive factors, said Rawson, is the fact that the new interim President has already shown an awareness of South Africa’s economic realities and has won a large measure of confidence from the business sector. In particular, said Rawson, there is now a widespread hope that the new ANC, even if it does split, will be far more effective at speeding up the delivery and ensuring that those sitting with large unspent budgets either get on with development or are thrown out of office.
Asked how the international financial turmoil will impact on South Africa, Rawson said that we are in a position to ride it out because wise fiscal policies have resulted in the treasury accumulating large funds for spending on infrastructural development. Furthermore, said Rawson, our banking system had been better regulated than those of many of the First World nations and was not overexposed to toxic debts. The National Credit Act, he said, although not welcomed by estate agents, had come just in time to prevent many middle-class South Africans from becoming over-borrowed.
“It is particularly encouraging,” said Rawson, “that many South Africans are coming round to accepting the new price structures in the property market. This often involves scaling down but the big increase in large deposits taken by our group recently (often 20 to 30% of the sale price) reflects the fact that buyers are scaling down.”
The economic upsets of the last year, said Rawson, have not phased the Rawson management because they have been through similar tough times previously (“Many of us have over 30 years in the property industry”) and know how to handle difficult conditions.
“It is quite clear, however, now that many of the younger companies have absolutely no experience of tough conditions and are suffering as a result. The well trained, well resourced teams are now coming to the fore.”
Ongoing branding and marketing, with increased emphasis on sophisticated customer related IT systems, ongoing support for franchisees with training, advice and encouragement and upgrading of all the support systems (again, particularly those that are IT related) are the factors that are taking the Rawson group forward, said Rawson.
Particularly relevant in today’s market, he said, are the facts that the Rawson franchises are strong in the middle- and low-cost market, which is where most of the action now is and that Rawson franchises can be low cost operations.
“It is quite possible for an ambitious but under-resourced agency to operate from the principal’s home for the first year or two,” he said.
Rawson franchisees, said Rawson, are still being sold at a steady rate. This year over 20 new franchises have been signed up and although some of these are resales where the new franchisee has found that he is not suited to real estate marketing, the group is in a strong position to expand from its current base.
For further information contact Bill Rawson on 021 658 7100 or email bill@rawsonproperties.com.
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10 October 2008, 15:34:43
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Edition 39 of 2008, Friday, 10 October 2008
Dear Reader
 Thursday, 09 October 08 and South Africa's Monetary Policy Committee for the second consecutive meeting decided not to make any changes to the repo rate leaving it at 12 percent. Indeed not what property owners were hoping for.
What had Trevor Manuel, Minister of Finance had to say about this;
- Building costs are a huge threat to what we want to do. I’m not too concerned but we need to be watching it,”
- If liquidity dries up, how do you finance cross-border deals — be it in trade, investment, or links into the global payments system? Raising foreign exchange will be very tough in an illiquid market,”
- It’s going to be a lot tougher and may impact on the cost of infrastructure.”
- The bottom line is that in the next while — and it’s not going to be six months or a year but probably two years — there will probably be enormous recalibration of what we do and how we finance it,”
- We’ve never lived through such a period of uncertainty,”
Consumers were hoping for some relief as were most economic sectors such as retail, motor vehicles, leisure and of course the residential market, which has become subdued since the heady days of the property boom. Rates Reaction – Andrew Golding
There has been much talk lately of the good opportunities that exist for homeowners with cash or equity in their properties to upgrade to larger, more expensive homes. However, says Dr Willie Marais, national president of the Institute of Estate Agents (IEASA), there are other factors to consider before making such a move. “For example, you should ask yourself whether you want to spend all the equity you have built up as the deposit on a new home, or if you’d rather use only some of it to alter your existing home. Questions to ask before you upgrade
We introduce a new section to our newsletter this week "In the area" and this week we take a closer look at the property market in the following areas;
- East London
- Heidelberg - Western Cape
- Kuilsrivier
According to a new survey that came out on Monday, Realestateweb, More than 5 months to sell a home - new survey reported as follows;
- It took an average of 14 weeks and six days to sell property
- Fewer people are receiving asking price from buyers
- There were fewer residential investors (12%) buying properties last quarter compared to the second quarter (14%
- One in five sellers cite emigration as the reason for offloading their properties - a figure that has been rising this year
- One in four sellers cite financial constraints as the reason for putting their homes on the market - also a higher figure than the previous quarter
- There's an increase in the number of investment properties that are being returned to the market without making a profit for their owners - and even a loss; and
- Downscaling because of financial pressures appears to be more marked in KwaZulu-Natal and the Western Cape than Gauteng
Enjoy!
The editor
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06 October 2008, 16:45:11
In a statement some weeks ago Bill Rawson, Chairman of Rawson Properties, said that, as he sees it, the residential property market in SA had bottomed out and is now on a slow but clearly discernible recovery path.
The recent deposing of President Mbeki has, said Rawson, surprisingly caused only a momentary halt in property’s recovery – and it now continues as before.
“All in all, I think the whole handover has been well handled,” said Rawson. “The public for a few days held back on property activity but the signs now point to confidence already being regained. Sales in the Rawson Group this September will be significantly up on those of last year.”
The public perception, said Rawson, is that a Zuma presidency will face the challenges of reducing poverty and increasing jobs more determinedly – and will be more effective in getting public departments to use the funds available to them. This will free up the economy and help the bottom 20% on the wage scale.
“It is particularly good news that unless there is another radical decision change, of which we have not yet been told, Trevor Manuel will stay on as Finance Minister and the successful fiscal policies of the Mbeki era will be maintained,” said Rawson. “The impression given is that although Zuma (faced with massive new expectations) will have to spread SA’s wealth more evenly, he will not be allowed to be irresponsible in these matters.”
Inflation, says Rawson, could rise to 14%. This will help house prices rise and make property investment more popular.
“Buyers are now learning to operate within the far stricter parameters of the National Credit Act and may have to accept that the sort of home they aspired to owning in 2007 is probably beyond their reach in 2008 but the man in the street still sees property as a good investment,” said Rawson. “He must now recognise that he will have to reduce his expectations and save harder to get it – but, at all costs, please do not give up your property owning ambitions.”
For further information contact Bill Rawson on 021 658 7100 or email bill@rawsonproperties.com.
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03 October 2008, 15:34:03
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Edition 38 of 2008, Friday, 03 October 2008
Dear Reader
Do you have a house in your shopping basket? The South African consumers has definitely taken a battering as far back as when the new National Credit Act was introduced, then with the rise in interest rates of the last few years and eventually the increase of fuel prices. The result, potential buyers find it harder to source funding and the property demand started to dry up.
Property news this week seems to be more positive on the whole. The CEO of one of our Property Groups, Hall Property Group, told us that they have seen a turn in the property market for the month of September 2008.
We take a closer look at reports from two of the major banks, FNB and Standard Bank;
The September FNB House Price Index released on Wednesday showed a slight year-on-year increase (1,8%), but prices declining month-on-month (-0,1%). Residential values - when taking inflation into account - dropped by a whopping 9,5%. FNB – year-on-year price change edges towards deflation
Standard Bank's median house price jumped by a surprising 3.6 percent y/y in September from a y/y decline of 1.8 percent in August, the banking group's property gauge showed on Thursday. House prices spike
Do you have a car in your shopping basket?
New vehicle sales is down with 18,1% to 40 966 units last month the National Association of Automobile Manufactors reported yesterday. If you include sales from the Associated Holdings total vehicle sales fell from 55,645 September 2007 to 44,725 September this year. Toyota is leading the market with Volkswagen in second place. "Even though the worst period of rising inflation and interest rates is behind us, sales are likely only to find new impetus from the second half of next year, when lower inflation and interest-rate relief have had time to ease pressure off consumers' stressed financial positions," said Standard Bank economist Danelee van Dyk.
What I did find interesting is that new car sales in September 2008 had been up 0,2% on the previous month.
 Gautrain - It has been nearly two years since we have seen the first of the constructions taking place. According to reports the constructions is all on schedule. For more information, some interesting facts and to see photos visit the official Gautrain website, www.gautrain.co.za
What about the property market? “My view is that one will get a lot of developments and property values will sky rocket in years to come near the stops along the Gautrain line." This according to First National Bank property strategist John Loos. Read more about what others have to say in Rosebank enjoys Gautrain boom
The name "Bedfordview" came about as the result of a competition in 1926. A girl who won the competition thought there was a nice view from Bedford Farm. "Bedford View" (two words) was then registered. Over the years the name has contracted to one word. Bedfordview has long been the area of choice for some of the wealthiest homeowners in the country, and famous for its excellent schools, proximity to the airport, location at the centre of Gauteng’s freeway network and its quality shopping malls and entertainment venues. Focus on Bedfordview, Gauteng, South Africa
Enjoy!
The editor
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29 September 2008, 17:04:34
Things are very different for agents, buyers, sellers after a shocking year.
This year will go down as one of the worst in many for South Africa's shrinking army of estate agents and the panicky sellers who have enlisted them with offloading their bricks-and-mortar.
Aside from the fall-out of the international credit crises, the nation has had its own series of dramas to deal with - starting from when the lights went out in January, thanks to Eskom incompetence, to this month's political turmoil.
Amid the changes, the news is not all bad:
The fittest will survive. When it comes to estate agents, order-takers can't cope, so they are leaving the market. That means buyers and sellers should be left with a more competent group of estate agents, people who work harder for their money. As Dr Piet Botha, chairman of Nationlink, said this week: "When the market was hot and homes were selling before they even reached the market, you didn't need to worry about getting the best agent - just the cheapest."
Now you need a top salesperson, he says. "Interview agents rigorously and insist that they present you with proof of their recent successes and a well-conceived marketing plan that goes way beyond the usual internet listing, one or two show days and a tiny weekly advert," advises Botha.
The survivors will make more money. A smaller pool of estate agents should, theoretically, mean more money because there will be more stock shared among fewer players. What's more, some of the smarter operators are suggesting some nifty ways for sellers to incentivise estate agents to sell their homes first. Here's one of Nationlink's: "You may want to consider offering the agent a bonus if the home is sold within 30 days or at your asking price."
Financially-savvy investors will live through the tough times. Interest rates have hammered owners and show no sign of easing yet. That means it's a good idea for property owners to tighten their belts and have cash available for unexpected emergencies. Internationally, it's becoming cool to be frugal as consumers in many countries grapple with tougher economic times. We have entered an era where it is a case of "goodbye bling, hello thrift". The "buy now, pay later" culture is over. "That means no more conspicuous consumption, at least for a year or two. Instead we have conspicuous carefulness," says personal finance advice site Fool.co.uk. Expect people to start bragging about bargains rather than big brands.
Renting, rather than buying, is increasingly attractive. It's no longer "in" to be a property buyer. Anne Porter Knight Frank managing director Lanice Steward says her agents "come across young, upwardly mobile people who tell us that they prefer to rent at discount rates in a good area rather than compromise with a less attractive home in a not-so-fashionable suburb."
"This philosophy, in my view, is short-sighted. It is adopted, in most cases, by yuppies who earn good salaries, drive expensive cars and believe they have what it takes to ‘make it' in today's commercial world - but the day will come when they rue their decision.
"They will find themselves without a home of their own and condemned to annual rent increases in perpetuity." Those who skimp and save to get together a deposit, buy a home and then work on it will find that every five to seven years they can upgrade at very little extra cost, predicts Steward.
Speculators look for new hobbies. Also exiting the market have been many speculators who suddenly thought residential property was a get-rich-quick-scheme. Fingers burnt, they are unlikely to return in a hurry.
With property losing its popularity as an investment choice among the masses, investors presumably stand to make more money in the long run. That's, of course, assuming less stock will be built.
Less residential, more commercial. Developers are switching from residential to commercial as banks pull the plug on funding new residential projects. La Residence in Sandton, where Nedbank's move irritated estate agents who had already attracted well-heeled buyers, is a case in point. However, FNB also recently revealed that it was withdrawing finance for buyers in new developments. That, in the long run, should be good for residential property prices - rental and on disposal. Supply in certain areas has exceeded demand.
Looking beyond this annus horribilis: the construction sector is under pressure but big developments are going ahead. That suggests that many with money to spend still see good things for the country and their investments.
International investors are making announcements about big property projects on an almost weekly basis. And local hoteliers, like Sun International, report healthy block bookings for 2010 and say they are probably more excited about 2009 when other sporting events - like the Fifa Confederations Cup - will bring additional visitors.
With a new President who quickly moved this week to reassure the nation that economic growth and hosting a successful 2010 are priorities, things are finally looking up for those who are betting on a bright future for South Africa.
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29 September 2008, 17:00:05
The KwaZulu-Natal Midlands town of Estcourt is constantly staking its claim as a prime retirement destination.
 "Estcourt has an excellent climate and everything one needs in terms of shops, churches and sports facilities including golf and bowls," says Roy Emanuel of local estate agency Homenet Emanuel.
Launched in February this year, the first phase of the R100m Garden Estates retirement development will include 80 one, two and three-bedroom homes at prices ranging from R420k to R1,3m. Communal facilities in the village will include a clubhouse with kitchen, lounge/dining area, library facilities and heated pool.
The estate will also be fully secured with the latest security protocols and most importantly, residents will have access to an onsite medical centre.
"A fully equipped private medical facility at the hub of the development will ensure that any medical requirements can be swiftly attended to. The centre will house an eight-bed frail care unit with 24-hour nursing facilities, an onsite clinic, a 24-hour resuscitation and monitoring room and a heli-pad. There will be a 24-hour ambulance service and generators will guarantee that patients won't be affected by power cuts."
Image: The Garden Estates retirement development in Estcourt offers one, two and three-bedroom homes at prices ranging from R420k to R1,3m.
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29 September 2008, 16:58:31
Home décor and DIY expert Janice Anderssen shows some fun and easy ways to remodel your place and up the value at the same time.
 Some choose to build recreation rooms and studies while others add new appliances, fixtures and cabinets to enliven rooms and make their home more attractive to future buyers. But, when should you decide to stop sinking money into a home and buy a bigger place? And how much is too much when it comes time to recovering remodelling costs through a home sale.
For instance, if you've just spent R50k remodelling your living room and didn't expand your small bathroom, the chances of ever recouping that cost should you sell your home, are slim.
With these concerns in mind, here are a few tips for those struggling to add value to their home.
First, always protect the character of your home. Nothing sticks out more than a new addition that is completely different in architectural style. Be consistent. Recognise the character of your home and stay within that framework.
 The most financially rewarding areas to remodel are usually the kitchen and bathroom.
Newly re-done cooking spaces and cabinets can attract more buyers and may command a slightly higher price for the home than a comparable one on the market. Simple repairs that are made to last will bring you the biggest returns upon sale.
Enlarged bathrooms are the most popular attraction for new home buyers.
But be sure to install modest, solid amenities.
It's easy to quickly overspend on bathroom fixtures.
Swimming pools can be a poor investment if installed for the sole purpose of increasing a home's value. It's rare that a pool's cost will be recovered in a home sale. It can also be a negative feature for potential buyers with very young children.
Replacing worn carpeting, tiles and wood floors can give your home an immediate advantage over similar properties in the area. Updating paint colours in all areas of your home can also prove beneficial. However, it's recommended that you use neutral colours, such as gray, beige and off-white when adding new floor and wall coverings. Fewer buyers will then turn away because of differing tastes.
 Stay simple with your remodelling and look at your home as though you were the buyer. Chances are that if you find the upstairs bedroom could be brightened by a larger window, potential buyers will probably feel the same.
Don't go overboard. Concentrate on improving two or three deficiencies in your home. More than likely, the time and money you spend adding quality to your home will be rewarded with greater profit at selling time.
Before you undertake a home improvement project, assess your financial position. To start, know the value of your property, both as it is and as it will be with the proposed improvements. You should also look at the home's relative value within the neighbourhood.
It's be better to put a lot of work into the worst, smallest house on the block, than to make the street's biggest and best house better. Finally, it is necessary to get a sense of the size of the investment needed to accomplish the improvements, and what type of return can be expected if the home needs to be sold fairly soon after the improvements are completed.
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26 September 2008, 15:29:32
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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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23 September 2008, 14:47:42
The question he is now most frequently asked, says Rob Lawrence, a Business Development Manager at Rawson Properties head office, is “How will the world’s economic problems affect the residential sector in SA?” – and the answer, he says, is that it will make life more difficult but it is not an end-of-the-world catastrophe.
“We have to appreciate,” he said, “that although the SA banking system is not directly linked to the international banking world, local banks do borrow a proportion of their money via the Interbank network and that banks , like ABSA, are linked to parent banks that do trade in the international money market.
“Here the relevant fact that the US Federal Reserve is planning to pump up to a trillion dollars into the US banks , who are paying up to 3,2% for inter bank funds, but should now be able to access funds from the Fed, at a much cheaper rate – with benefits to all concerned.
“Consumers, however, should realise that although this will save the banks, the credit crunch worldwide will now be tightened, making all capital more expensive or more difficult to obtain.”
In SA, said Lawrence, he does not see the new scenario resulting in another interest rate rise.
“The banks will simply have to operate on reduced margins – but it will make them more careful in selecting the people to whom they lend money. Bad debts will now have to be avoided at all costs, as these erode margins even more.”
The ongoing credit crunch, said Lawrence, will make it essential for sellers to continue to accept that the stabilisation period in house prices has not yet arrived: for the foreseeable future prices 20 to 30% off the 2007 highs will continue to be the order of the day – and SA will not see a change in this until the next interest rate drop.
Asked when he expects this, Lawrence said that at the earliest it is likely to be by February/March 2009.
Lawrence commented that, although it will be an expensive and difficult solution, the USA’s bailing out process is far preferable to that of the 1929 collapse when, on the advice of Andrew Mellon, President Hoover did not increase the amount of cash in the economy and let the entire country slide into liquidation, a slump from which it took many years to recover.
Political factors are also affecting the SA economy, said Lawrence, but Mbeki’s decision to resign while still in office could be seen internationally as mature and civilised and should enhance perceptions that SA is now one of the more responsible players in international politics.
For further information contact Rob Lawrence on 021 658 7100 or email rob@rawsonproperties.com.
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23 September 2008, 14:46:44
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.
Asked recently when, if ever, an upturn in home sales could become evident, Steward said that, despite the economic fallout worldwide (“the worst since 1929”) and Mboweni’s warning that a credit crunch now seems inevitable, property marketers are still hopeful that there will be no further interest rate rises.
“If that is the case,” she said, “the market could turn upwards before the end of this year. Although the freefall in the world’s stock markets is serious, SA is to an extent protected from it because our credit restrictions, although imposed late, have been effective and, due to the foreign exchange controls (so often seen as a handicap), our banks were not involved by and large in sub-prime lending. Furthermore, our state finance portfolio was farseeing enough to build up reserves in the boom years, making it possible now to tackle 15 years worth of infrastructural development in five.
The impact of the 2010 soccer event, although overplayed in some quarters, will focus interest on SA and will channel a small percentage of (some say 2%) of international property investment in our direction.
“The estimated 350 000 plus visitors at this time is just what we need,” said Steward. “We have already experienced several new enquiries from the USA, a country in which we have had traditionally few clients.”
For further information contact Lanice Steward on 021 671 9120 or email lanice@anneporter.co.za.
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19 September 2008, 15:27:49
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Edition 36 of 2008, Friday, 19 September 2008
Dear Reader
 The falling of world-wide share prices, fearful lenders and failing of rescue plans from the Fed send trouble companies and investors into ever-deeper holes with the result that expectations for a quick end to the crisis are fading fast. I think it's going to last a lot longer than perhaps we would have anticipated," Anne Mulcahy, chief executive of Xerox Corp., said Wednesday. A plea from the Swiss bank UBS “Stop the insanity,”. The US stock market plunged 4,7% to a three-year low, the dollar slumped and US treasury bonds soared. And the JSE was pushed deeper into a bear market, losing another 2,6% of its value. This indeed is not good news for property owners.
Two articles this week to give us more inside on the International market and what might happen to the property market
- US Housing Bear Market Nowhere Near a Bottom
- South Africa: Lehman's Venture Likely to Go Ahead
Rental accommodation is currently in strong demand and landlords are in a strong position – but they should not throw away their advantage. Think long-term, landlords advised
 Residential property prices are generally heading into negative terrain, with the numbers set to look worse before they get better. But some owners must still have smiles on their faces, suggests new data released this week. SA's best and worst property performers Investments
Property sellers who have to sell fast in a more difficult market may be tempted to keep quiet about known faults in the property in the hope of attracting more buyers and selling faster. But the best advice to such sellers is: Don’t! The whole truth brings peace of mind
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. Send your viewpoint to news@cyberprop.com
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The editor
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12 September 2008, 15:18:21
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Edition 35 of 2008, Friday, 12 September 2008
Dear Reader
Is the world property market stabilising?
USA - "I think it is reasonable to say that we can expect moderation over the next year or so in certain aspects of the turbulence surrounding the structured products and the valuation losses on those products," the former US assistant Treasury secretary said. In the same breath he also warned that the market turbulence would not end unless the US property market shows clear signs of "bottoming" out. One cannot help to wonder what the impact of the government takeover of two of the largest companies and mortgage lenders Fannie Mae and Freddie Mac is going to be. Will it stabilise the markets? I guess we will have to wait and see.
South Africa (1) - AN ANTICIPATED improvement in the household sector’s financial situation is expected to reverse the fortunes of the ailing residential mortgage market, says FNB property economist John Loos. Economic growth might go slow for a while but the good news is that South Africa will not fall into a recession.
South Africa (2) - "I remain very positive," said Tony  Clarke, MD of Rawson Properties. "We have recently publicly said that with interest rates likely to be stable from now on, the residential sector is set to bottom out. My own belief is that prices will cease to fall within the next two or three months and that by January real growth will creep back into the market. Right now, we have seen a dramatic increase in the market activity, up to 35% month to month. It is an exceptionally good time to buy for anyone looking to build a useful buy-to-rent property portfolio in the residential sector."
Do you think that with the Reserve Bank's decision to hold interest rates, the South African property market will stabilise?
to take part in our online poll.
 Homeowners who are considering additions or alterations to make their home more attractive to potential buyers should focus on exterior projects at the moment. They should, says Institute of Estate Agents national president Willie Marais, spruce up outdoor entertainment areas with decks or patios, paint or recoat exterior walls and if they want to make structural changes, replace old steel windows with wooden or vinyl ones.
Focus on Oudtshoorn, Western Cape, South Africa - Oudtshoorn is the centre of the Klein Karoo and "Ostrich-feather Capital" of the world. Furthermore Oudtshoorn is also world-renowned for the Cango Caves, but there's much more to this town than just that!
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The editor
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05 September 2008, 15:16:16
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Edition 34 of 2008, Friday, 05 September 2008
Dear Reader
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French Colonial homes in St. Louis, Senegal
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Africa with its 53 countries is still considered to be the next hot market with enormous growth potentials with huge opportunities in the property market. Southern African countries such as Botswana, Mozambique, Namibia, South Africa and Zambia have a lot to offer in terms of game-related properties, according to Craig McKenzie, owner of Wildnet Africa Properties, a company focusing on wildlife real estate in the continent.
Is this what the market statistics tells us?
Annual residential property price inflation fell to 4.8% during the 2nd quarter of 2008. Prices are now falling in almost half the markets listed in the index. This according to the Knight Frank Gloval Price Index; Property news - More countries registering falls as global house price inflation continues to slow
- Bulgaria is at the head of this list, where values have of 1999 grown at 32.3% over the past year, and have now risen by 68% over the past two years
- Australia has experienced a downturn in house price growth over the past quarter
- Prices continue to fall in the United States
- According to the Index, prices in South Africa rose by 3.8% over the past year, the lowest rate since the third quarter
Samuel Seeff, chairman of real estate agency group Seeff Properties, said there was definitely a “bit more activity taking place in the market"
Jeanne van Jaarsveldt, marketing and finance director of RE/MAX of Southern Africa, provides fascinating insight into what's been happening in the residential property market this year through figures compiled by his organisation. South Africa's largest property real-estate group, in conjunction with BetterBond, on Thursday released statistics around South African residential property buying transactions and property market performance compared to the same period in 2007. This article published on Realestateweb.co.za so far received 94+ responses. Indeed this weeks article of the week; SA's property market crash: grim new stats
Knowledge is power. If you are buying into sectional title, the more you know about this type of title, the more likely you are to protect your investment. So before you buy, take the time to investigate the scheme fully and once you're a sectional title owner keep your finger on the pulse of the body corporate by attending meetings. Consider becoming a trustee, or even the chairperson so that you are able to maintain control and are not hit with any nasty surprises. Sectional title for dummies Part 1 & 2 Article By: Jennifer Paddock
 When I sold my previous home I wondered why the prospective buyer was taking so many photographs and he said that you would be amazed at the amount of fixtures and fittings that are removed or changed by sellers before they move out. For sure an article by Cheryl Marais, Direct Marketing Manager: Betterbond not to be missed this week - Prevent Dishonest Sellers Removing or Changing Fixtures and Fittings
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The editor
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29 August 2008, 15:14:28
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Edition 33 of 2008, Friday, 29 August 2008
Dear Reader
Developers around the world will find anything from satellite security to a year's worth of spa treatment to entice property buyers. Some developments will even supply and maintain their own jet. In the South Africa the corporate jet for Pezula, the sprawling resort on South Africa's Garden Route, has helped ferry notables like Paul McCartney and Nelson Mandela around the continent, according to Keith Stewart, a project developer. Pezula residents can charter the plane at a reduced price. "Because we're targeting the very, very high end of the market, there has been increasing demand for use of the private jet when those people fly into the continent of Africa," Stewart said. "They feel more comfortable moving around in private jet."
Not so good news this week for motorists; petrol prices could fall less than the expected R1 a litre.
Auctioneers say investor sentiment has improved significantly over the past two weeks following the Reserve Bank’s decision not to hike interest rates, with buyers pouring into residential and commercial property auctions. Property buyers ‘back in market’
What to do about that blot on your landscape? Writing in the Property Signposts newsletter, Everitt suggests that you could offer to help pay for a garden cleanup, for instance, or to lend a hand with painting, and says that while you may think it a bit extreme to have to invest money or labour in a neighbouring property, the chances are that you will amply recoup the cost of your efforts through a better selling price for your property. To the editor
 This week we bring the beautiful Western Cape, South Africa to you;
- Fairest Cape comes to Sandton
- Fifty percent of Northern Suburbs sales are cash driven
- Woodstock’s historical buildings adapt with the times
- Focus on, Gansbaai, Western Cape, South Africa
Enjoy!
The editor
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22 August 2008, 15:13:18
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Edition 32 of 2008, Friday, 22 August 2008
Dear Reader
Financial Minister Trevor Manuel said it was unlikely that South Africa would find itself in a recession, good news for property owners. "Averaging out growth for the first two quarters of this year, it is highly unlikely that the SA economy will experience recession."
“Property is a long-term investment.” The quality of the property portfolio will influence the long-term earning prospects of the companies and funds concerned, says Nedbank Corporate Property Finance MD Frank Berkeley. Pay attention to quality, says Nedbank
 Buying a property is most people’s biggest financial commitment. Most also look at it as a long life investment. So why not take time and do it right? Buying a property might be time consuming, expensive and frustrating but in today’s property market you can’t afford to make the wrong decision;
- Equip yourself with the right information
- Work out what you can afford. Buying a property can cost more than what you think
- Be aware of running costs as insurance, water and electricity etc.
- Does the property suit you? Take crime, location, space, new developments etc. in consideration
- When you have found a property you like view it again and again and again, making sure it is what you want and that it is in the right condition. Don’t be sidetracked by the décor etc.
- Check the price of the property by comparing to others in the area
- Work out where you want to finish before you start
- Don’t let emotions get in the way
- Think about the future and keep home improvements and the resell of the property in mind and lastly
- Enjoy it! For most people this happens only once in their lifetime
Senior citizens in the established south-eastern suburbs of Pretoria are unlocking value in their homes by renting to tenants and becoming tenants themselves. “Such owners typically have a very small or no mortgage on their homes and can achieve rentals of about R6000 to R8000 a month for three-bedroom family homes. Becoming landlords is a better proposition for them in a market where there is great rental demand but downward pressure on selling prices." Senior citizens a new class of landlords
North of Durban on the western coast of South Africa is the suburb of La Lucia, which is becoming one of the most popular places in the region for both businesses and residents alike. The beach side residences and spectacular homes lead inland to a series of increasingly busy corporate parks and business areas. The older homes have been joined with newer apartments and off-plan developments as La Lucia has continued to grow. La Lucia is South African Real Estate Hot Spot
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The editor
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15 August 2008, 15:10:23
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Edition 31 of 2008, Friday, 15 August 2008
Dear Reader
"THE Reserve Bank held its repo rate steady at 12,0% today, as expected, citing concerns about economic growth and despite inflation surging to a record high." This indeed was the best news for property owners this week.
"While the decision will obviously not give any relief to homeowners who remain under financial pressure, it will certainly start to stem the tide of falling sentiment," said chief executive Herschel Jawitz. Realtors welcome rate decision
Home loan shocker: FNB pulls plug on property credit. This article that was placed in last weeks newsletter was indeed a shocker in the property industry. Various readers wrote and wanted more news. In answer to your questions we place the following two articles in this weeks newsletter;
The real estate world is abuzz with news that a French Riviera home called the Villa Leopolda, built by King Leopold II of Belgium in 1902, has sold for $750 million to a Russian oligarch. Most Expensive Home Or Image Accessory?
This week our focus is on Klerksdorp in the North West Province and Betterbond shares some tips on House Marketing Mistakes to Avoid.
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The editor
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08 August 2008, 15:02:27
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Edition 30 of 2008, Friday, 08 August 2008
Dear Reader
 14 August is coming and one cannot help to start wondering about what is going to happen with the interest rates. The general feeling amongst analysts is that there is not going to be an increase. But not all of them are optimistic;
"I know this is against the grain as everyone has jumped on the re- weighting story," This from Peter Attard Montalto, Analyst from Lehman Brothers who expects a hike of 50-basis-points.
 The biggest news this week regarding the property industry; Home loan shocker: FNB pulls plug on property credit. The Ombudsman for Banking Services fired a warning shot at FNB for withdrawing home loans approvals on a large scale as a result of rising inflation and falling property prices continues. Absa has revealed that it is the self-employed professionals that are being hit the hardest by the recession in the property market.
Furthermore Absa also reported that the nominal price growth if all three categories of housing in the middle segment of the market has slowed down further. Absa reports lowest house price growth in almost nine years
 To auction or not to auction? Auctioneers have been reporting an increase in the number of distressed sales as consumers feel the effects of the economic downturn. ‘Distressed’ sales have pitfalls as well as opportunities
After months of desperation at the lack of buyers in the market, estate agents are perking up as sales activity takes a turn for the better. Lew Geffen, chairman of Sotheby’s International Realty in SA, says that with prices continuing to fall in real terms, show house attendances are suddenly starting to pick up again and buyer numbers are also starting to increase once more. Buyer numbers pick up as prices drop
Bakoven has the potential to eclipse Clifton as SA’s most sought-after beachfront suburb. Nestled sedately on the periphery of Camps Bay, the area already boasts property prices on a par with Clifton – and has a few features that may soon put it ahead in the best-address stakes, Is Bakoven the new Clifton?
Read more in Focus on about Bakoven, Western Cape, South Africa
Enjoy!
The editor
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01 August 2008, 14:59:16
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Edition 29 of 2008, Friday, 01 August 2008
Dear Reader
 This week we saw an increase in the South Africa's consumer price index excluding mortgage rate changes (CPIX) for metro and other areas but what is most importantly used by the South African Reserve Bank for its inflation target. The CPIX was up 1.1 percent month-on-month after it increased 1.1 percent month-on-month in May and for the fifteenth month running it has been above the six percent upper target limit. How Economists react to the CPIX data, by iAfrica;
Colen Garrow, Brait: "It's a little bit higher than expected. I think the inflation numbers are not going to carry the same meaning as they did in the past until we get the new weightings and they are fully operational. I'd be very surprised if it prompts another rate hike. The prudent stance would be to put things on hold until we can assess where the new weightings will take inflation."
Jeff Gable, Absa Capital: "Higher than expectations, and will spark a rally in the bond market and pretty much erase better inflation prospects for 2009."
Doret Els, Efficient Group: "It's slightly above our expectations. It shows that inflation pressures are still a real phenomenon in the economy. The number doesn't bode well for interest rates, but we believe CPIX will peak in the third quarter of 2009 and subside thereafter. So an interest rate hike in August will have little or no impact on it."
Carmen Altenkirch, Nedbank: "The figure is certainly higher than expected, but it should really not come as much of a surprise, with inflation expected to get worse over the next three months. "The good news is that inflation is probably reaching its peak, with both international oil and food prices falling over the past week or two. However, these prices have been volatile over the past few months and there's always a chance that they might rebound."
Annabel Bishop, Investec: "We expect no more interest rate hikes this year as the SARB estimates that the monetary policy transmission mechanism impacts inflation with a lag of twelve to 24 months (arguably shorter by some), and we believe under the re-weighting that CPIX inflation will regain target in H2.09. "The sharp drop in the level of inflation in 2009 is also likely to cause the SARB to cut interest rates significantly in H1.09 next year as the newly weighted (and substantially lower) CPIX inflation series becomes a fact.
In the last newsletter we focused on building and building plans. A warning to our readers this week; A neighbour that takes exception to your planned alterations can cause lengthy delays and even forced cancellation of plans - at great cost! It pays to do your homework before embarking on an building project and ensure you have all the right approval and permission in place before hand
In the mean time it is business is as usual at the top end!
We are noticing a number of interesting and positive trends in the residential property market within different segments around the country, for example ongoing investment in homes here among South African expatriates living in various countries overseas and a strong rally among cash buyers, particularly in the R5m and upwards price range; Strong rally in R5m-plus cash buyers Strong rally in R5m-plus cash buyers
A gracious double-storey home in the Johannesburg suburb of Parktown North has been sold for R8,5m – a record price for the area; Record sale price for Parktown North
“There are amazingly good opportunities available for cash buyers, mainly at the top end ,” says O’Shea. Luxury, views at the top end
Celebrating fifteen years in the décor and design industry, Decorex Joburg 2008 marks this magical milestone with the most exceptional show features ever with an invigorating theme to match ‘Imagine.. Innovate.. Realise..’; Decorex 2008!
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The editor
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25 July 2008, 14:57:57
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Edition 28 of 2008, Friday, 25 July 2008
Dear Reader
Credit crunch and economic uncertainty have taken their toll on the global property market, with transaction volumes falling by 46 per cent in the first quarter, according to a property report; International real estate transactions dip 46%
And that is where we are going to be focusing on this week, the International Real Estate Market;
- Property news - Heavenly havens
- Property market feels the pinch - Namibia
- So near, yet so far - Invest in Israel
- Australia's example on interest rate fluctuations should be followed
Closer to home the experts is expecting the residential housing market to show a countrywide drop in sales volumes of about 35 percent. We have already seen a drop of 10 percent year-on-year (albeit not in all areas) in the average house price. In how low will it go the Rawson Property Group give their opinion. "As we have said before, now is an excellent time to buy because good property deals are available throughout South Africa."
What is CyberProp.com's viewpoint? We have seen the increase of oil prices. We have seen the long queues at filling stations the night before a price increase in fuel with the result that you cannot help to wonder if the same is applicable to the property industry. Is there also deadlines?
When buying a property there are three things to take in consideration;
- Are you one of the lucky ones that can pay cash?
- Are you on of the millions out there that have to finance the purchasing of your property through a loan? If yes you must not only take your income, expenses but also savings and amortisation in account when you do your planning
- Are you buying the property as an investment? If yes always keep in mind the period of the investment as the property can only fetch a high price if there is a demand for it. There is always the cycle of rising and falling of prices and we are for sure near the end of the property boom
The answer on the question, is it the best time to buy? The answer is yes, for us it is always the best time to buy as property is one of your safest investments. BUT this is only if you are sure about your finances as interest rates can still go up.
Some South Africans may be battling the current tough property market, but one Cape Town seller took a mere 10 minutes to flog a tiny Sea Point apartment. To top it all, the buyer, who snapped it up via an sms, had not even seen it. The 29m² pad, which has no kitchen or parking bay and which was previously used as “staff quarters”, was sold for a “bargain” R425 000 recently. Property moves fast in Sea Point
What are my rights as an owner? I am an owner in a sectional title complex of 9 units. These units were ex airforce units that where privatised and are now part of a Body Corporate. The units are double storey units and my unit is above and bordering the old servants quarters. The original gardener appointed by the then airforce has been occupying these quarters for the past few years to my knowledge. Unfortunately the noise caused by this gentleman is becoming a nuisance, he is also now inviting guests to live with him in these quarters This weeks letter of the week; Letters to the editor
Enjoy!
The editor
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18 July 2008, 14:56:21
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Edition 27 of 2008, Friday, 18 July 2008
Dear Reader
According to a survey done by Colliers International parking your car in London's financial district can cost you dearly as it is the most expensive city to park your car in. "We continue to observe a direct correlation between the rising cost of monthly parking and the ongoing strength of the office real estate market," said Ross Moore, director of market and economic research at Colliers International. What about parking your car in South Africa? Read more in London is world's most expensive parking spot: survey
 Should I buy or should I build? It is far easier to buy a house than to build but the downfall is that you will not always get what you want. If you decide to rather build that dream home it is important for you to know that it should and cannot be a passive exercise. You will have to get involved and you will have to keep the following in mind;
- Having the biggest and most expensive house in the neighbourhood is not wise and will cost you in the long run thus do not overbuild for the neighbourhood
- Always keep the resale of your property in mind by not building for your own likes and needs. Build practical
- Make sure you find the right architect that can put your ideas on paper and make sure he knows your budget
- Get a building contractor that not only fits your budget but who you can relate to as on many occasions where you cannot make up your mind you will force the builder to make them on your behalf
- Be prepared for delays! Do not set your move in date on day one as 9 out of 10 times there are always a delay
- Make sure your monitor the progress on a regular basis so that you can catch those early mistakes that can not only cause you a lot of headaches but which can also be costly
In this weeks newsletter two building plans related articles;
- LAST month the Constitutional Court heard the case of Walele vs City of Cape Town where Walele was aggrieved by the approval of building plans for his neighbour’s property, writes Kay Naidoo, of attorneys Livingston Leandy Inc. Know your rights on building plans
- The value of South African recorded building plans passed at constant 2000 prices in May decreased 36.2% year on year from a revised increase of 14.4% (11.6%) in April, Statistics South Africa (Stats SA) data showed. Building plans passed drops 36.2%
Even if you think a home is overpriced, that’s no reason not to view it and possibly make an offer for it. So says Dr Piet Botha, chairman of the Nationlink estate agency group, who notes that there are several reasons that overpriced properties usually don’t attract offers – all of them mistaken. Take another look at overpriced properties
 The Indraai Cottage at Calitzdorp. Calitzdorp is the fruit-bowl of the Little Karoo and source of the country's finest port wines. Nowhere is the authentic character of a Little Karoo community and the unique architecture of the region better preserved than here. Calitzdorp, is surrounded by three mountain ranges - the Swartberg to the north, the leopard-haunted Rooiberge to the south and the mountains of the Huisrivierpass to the west. Although less arid than the Great Karoo, the land is no less challenging - with flash floods, droughts and winters that can clad the mountain slopes with snow. Focus on Calitzdorp, Western Cape, South Africa
 CyberProp would like to wish Madiba a very happy 90th birthday, may there be many more.
Enjoy!
The editor
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11 July 2008, 14:55:11
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Edition 26 of 2008, Friday, 11 July 2008
Dear Reader
Times are not getting easier in fact it is set to get tougher. This to both businesses and the consumer was the message this week. Another 50 basis-point interest rate hike is on the table for August 2008 and more is expected before the end of the year.
Although we have seen many of our strongest companies share prices slashed and the prices of houses fall to its lowest in 15 years there should not be any concern that the country is on the verge of its first recession in 16 years. The overall message is that things will get better, not now but predicted at the end of 2009.
End 2009? It seems like a very long way off, definitely not a quick end in sight. It is best for struggling homeowners to take action right now. You might be asking what is the right action. This is difficult to answer as only you know your real financial situation. My advice to you is to do whatever you can to keep your property as property stays a good investment and to speak to your bank/lender before problems happen as they are more open to assist then.
Hi, I just want to know from you, when the economy in South Africa is as it is, is it time to buy or does signs like these gives a warning to wait? Read more in Letters to the editor
We are going through tough times all over. Who would have thought that removal companies are also experiencing tough times? They are also battling to survive as domestic business is shrinking;
Industry executives confirm that the local removal industry is in turmoil, Elliott International CE Charles Luyckx, saying the removals business has declined dramatically over the past six to nine months. Luyckx says his firm, which focuses on the corporate market, is facing a downturn in some areas of its local business. Crown Removal says it used to generate 60% of its business locally but this revenue stream has been overtaken by international business, which now accounts for 70% of its revenue. Even one of the industry's bellwethers, Stuttaford Van Lines, acknowledges the slump. "Over the past three months there has been a downturn in national moves due to the slowdown in real estate caused by rising interest rates," says Stuttaford Van Lines national marketing manager Julie Munro.
On the property front this week three articles on rentals as "rental" is quickly becoming the new buzz word in the property industry;
- Residential rental cost rising rapidly
- Rental demand up sharply in Joburg’s northern areas
- Retail tenants call for rental reductions
The way you live in your home is not the way to sell your home. Most buyers would prefer to buy a house that doesn’t need any work or minimal work. It is not an easy task to predict what will appeal to a potential buyer or what will turn them away. BetterBond's tips to home buyers and sellers
Don't forget to visit our CyberProp Blog for more property news and views.
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The editor
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04 July 2008, 14:53:42
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Edition 25 of 2008, Friday, 04 July 2008
Dear Reader
May 2008 and the mortgage market is slowing down with a year-to-year growth in the value of total mortgage loans outstanding from 21.9% in April 2008 to 20.6% in May 2008.
 Vehicle sales in June 2007 showed a 21.9% decrease when compared to sales of June 2007. On a month-on-month there was also a decrease of 1.15% with less vehicles sold in June 2008 than in May 2008 leaving the month with the lowest sales rate in over four years.
What I cannot understand is that the prices of houses are coming down but the prices of vehicles are not. Can you understand this? Standard Bank's median house price, the middle price on the group's home loans portfolio has dropped from R 620 000 in June 2007 to R 550 000 in June 2008. The drop in the price of houses is not only applicable to South Africa but to other countries also with the UK suffering currently suffering the most. Standard Bank Property Gauge: Sizwe Nxedlana – property economist, Standard Bank
According to Luke Doig, senior economist at Credit Guarantee South Africa has seen a near 3% drop in total business liquidations for May year-to-year with May 2008 showing fewer liquidations than the same period last year. “Our claims against bad debts have risen 30 percent, so I’m puzzled by Stats SA’s figures. The drop could be due to a distortion caused by financiers opting for voluntary liquidation because of the National Credit Act last year. Most of these businesses were probably real estate agencies forced out of business by the slump in home sales." Indeed not good news for the real estate industry.
Maria Ganhao, General Manager of AA Finance, warns: "Many people perceive car finance through their bonds as affordable credit. Home loan not for cars
You will always find the wise amongst us. It is those that does not get carried away by the falling of house prices, the downturns or the property booms. It is those who predicts them, await and then exploit. If you are not one of them the National Credit Act has made provision for debt counsellors who have the systems and the authority to help an over-indebted person through his difficulties. If you are struggling to pay your bond consider contacting the NCA Debt Council by Rawson Properties
News from - iafrica.com - SA's priciest properties, Sought-after by those at the very pinnacle of the social hierarchy, South Africa's most expensive properties are everything you'd expect — extremely luxurious and very private. Personal lifts, scurrying housekeepers, a butler or three, spas and fully equipped home gyms are just some of the humble pleasures that the distinguished owners of these homes have come to expect.
Lets take a look at some of the most expensive properties listed on www.cyberprop.com
And this is what dreams are made of!
The Gem of the Overberg Region, world renowned for the natural hot mineral water springs, but also a historically and agriculturally the hub of the area, surrounded by magnificent natural beauty and fynbos, Focus on Caledon, Western Cape, South Africa by www.places.co.za
Don't forget to visit our CyberProp Blog for more property news and views.
Enjoy!
The editor
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27 June 2008, 14:51:41
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Edition 24 of 2008, Friday, 27 June 2008
Dear Reader
Is it the right time to buy property? When asking this question to various property experts and also when looking for responses on the Internet the answer is clear; it is always the right time to buy property. Aside from the occasional blip, property will always increase in value above the rate of inflation. What are your thoughts on this subject?
Angola - "The level of speculation in real estate prices in Luanda is very worrying and makes the life of citizens able to pay low rent very difficult,"
United Kingdom - The UK housing market is very sentiment driven, and in many ways exhibits the same sort of behaviour as that of stock market investments moving between extremes of over valuation and undervaluation against the UK 's GDP growth trend.
"As I was growing up, my father taught me many important lessons. Today, I will share with you one of them. He always told me to start from where I was and continually improve myself. Start from somewhere he always said. This was especially with regard to buying real estate. His principle was buy a small property to begin with and continue moving up". Start small to grow investments in real estate, by Eleanor Kigen
According to other South Africans you do not have to be classified under the super rich to be property owner in Europe. "One of the best investments I've made. I have no regrets so far. The rental agent has been efficient and I don't have mortgage finance over the property, so I have had no worries about covering costs. Plus, I plan to go skiing some time soon." Buying foreign property "not a rich man's game"
 Ensure your home shines on camera; This is advice from Dr Willie Marais, the Institute of Estate Agents of South Africa, IEASA. It is up to you as the owner to ensure that your home really shines on camera and to do this you really need to understand the camera’s perspective. The camera’s eye is very different from the human eye. It magnifies clutter and poor furniture arrangement. Tips for a quick sell
 In times like we are experiencing right now in the property market many homeowners are now having to looking at new ways to stretch their bond obligations. If the do not look at this many stand to loose their properties. One option is to take in lodgers or to rent out sections of their homes. The warning is, be careful! This not a decision to be taken lightly. Pros and cons of lodgers
 Serious home sellers should start specifically targeting investors, News from the Nationlink Property Group.
Don't forget to visit our CyberProp Blog for more property news and views.
Enjoy!
The editor
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20 June 2008, 14:42:08
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Edition 23 of 2008, Friday, 20 June 2008
Dear Reader
 How can there be an up and down in the real estate industry at the same time? I am sure that this is a question that many of our readers has asked over the last few months. In our own country, South Africa, we read about areas where the price of properties is still on the rise and yet the overall market shows that there is a definite decline in property prices. The same for the International property market.
Real estate prospects for the UK has taken a turn for the worse and at the same time The Knight Frank Global House Price Index found that their are still countries where property prices are on the rise; Bulgaria, Singapore, Hong Kong, Jersey, Russian, Iceland and Australia.
Then on the other hand property prices might be on the rise in Australia but yet one of the areas that showed the weakest growth over 2007 was also from Australia;
Key Highlights from the 2008 Annual Wealth Report, Knight Frank:
- Global prime property prices rose by 11% during 2007
- The highest price growth achieved by prime residential properties was in Antigua (40%); St Jean Cap Ferrat, France (39%) and St Petersburg, Russia (38%)
- The areas with the weakest growth over 2007 were Dublin (-15%); Ibiza (-13%) and Noosa Heads, Australia (-7%)
- London is the most expensive location for prime residential property with an average price of £3,025 per sq ft, Monaco is second at £2,877 per sq ft and St Jean Cap Ferrat third at £2,860 per sq ft
Looking at the above I can tell you that there is never one dull moment in the property industry for home owners, investors and developers.
Berry Everitt, managing director of Chas Everitt International Property gave some good advice to the consumer; "Homeowners and sellers are currently preoccupied with a possible decline in prices but they need to realise that this is part of the perpetual economic cycle, in which the prices of all commodities – including property – go up, go down and then go up again. It is a time to be looking at the bigger picture and finding ways to maximise the opportunities it always presents"
Welcome to the real world Mr. President. IFP President Mangosuthu Buthelezi reported that his guest house in Ulundi was broken into on Father's Day. Valuable of R100 000 was stolen and this while his house was under 24-hour guard.
There is still plenty of activity in the upper end of the property market. "Old houses are being upgraded and modernised and the asking prices are R1.8-million and more. The properties are close to schools and shopping areas and the stand sizes are over 1300m². The upper end is also active in Coltshill (Whiter River)where two years ago the highest price reached was R1.15-million, but asking prices now range from R1.3-million to around R1.7-million." Good times still rollin'
 "My house is going to fall down. I can't think straight. I don't know what to pack," said Moreen Neethling. This was one of the cries heard this week from the South Coast of KwaZulu Natal where houses and businesses were flooded after heavy rainfalls.
White River lies just north of Nelspruit not far from the border of the Kruger National Park. It is not a large town but there are some stunning establishments in the fertile surrounding area of scenic beauty. White River is well placed for visiting the rest of the Panorama Route or Kruger National Park, Focus on White River, Mpumalanga, South Africa
Don't forget to visit our CyberProp Blog for more property news and views.
Enjoy!
The editor
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13 June 2008, 14:38:33
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Edition 22 of 2008, Friday, 13 June 2008
Dear Reader
The decision of the SA Reserve Bank to hike the repo rate by 50 basis points to 12 percent with the result of a prime lending rate of 15.5 percent was not well accepted and criticised by various companies and organisations although it was a big relief for many South Africans as an increase of up to 200 base points was expected. However most people felt that it was "A big mistake".
Trade Union Solidarity - The bank's decision will cause thousands of South Africans to lose their cars and houses in the coming months,". This union is planning a campaign to give South Africans the opportunity to opposed against the higher interest rate.
In the property industry the general feeling is that higher interest rate is setting a scene for a booming rental market as debt burden have been made heavier and  that the prices of houses will definitely come down in 2008.
Jeanne van Jaarsveldt, RE/MAX believes that the group is expecting the housing market to bottom out in 2008 with gradually pricing increasing again in 2009 and 2010 with lower inflation and interest rates.
Eskel Jawitz, Jawitz Properties feels that in general the economy and property market is under siege. He said people who bought property two years ago were going to have to pay about 35 percent more on their  bond instalments.
Samuel Seeff, Seeff Properties, "The number of sales will now begin to decline as the market, which was flat up until now, begins to come off," This means that the prices of property will come down.
 Kevin Lancaster, Betterbond, "We can and should find comfort in the fact that a similar trend has been noted in interest rates cycles over the past years, and with reference to history, we could be near the peak in the current cycle. Homeowners should however, during these tough times, exercise caution and restraint in terms of spending. Make wise financial decisions so as to keep up with home loan repayments,”
Pat Jewell, CyberProp.com, "House prices are slowing down and if homeowners are desperate to sell their properties they will have to come down with their prices. Homeowner has never been realistic in their prices, not in good times and not in bad times and this has been one of the major problems real estate agents had to face for many years. For those not so serious sellers it would be best to rather do the math's, to try and hold onto their properties by joining the upcoming rental market"
This week we saw a public row between Saul Geffen, CEO of Ooba and dad Lew Geffen, head of Lew Geffen Sotheby's International Realty. Lew Geffen last week in an internal memo warned his group of a 40% drop in house prices at the top end of the market from last year's highs. His remarks was the result of numerous of articles in national newspapers that caused panic among buyers and sellers. According to Geffen he was being realistic. Saul, the son, issued a media statement in which he said that "recent alarmist forecasts by the property market commentators, many of which are unsubstantiated by facts, have caused homeowners undue concern". Our question to you last week was "Are the prices of houses dropping or not?" The general answer was YES! Read one of our readers comment in Letters to the editor
Don't forget to visit our CyberProp Blog for more property news and views.
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The editor
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06 June 2008, 14:36:41
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Edition 21 of 2008, Friday, 06 June 2008
Dear Reader
 Put your money where your mouth is; at the World Economic Forum investment professionals, Runa Alam, the CEO of Developing Partners International; Bolaji Balogun, CEO of the Chapel Hill Denham Group; John Gnobbe, CEO of Brait Private Equity; and Brian Henderson, chairman of the Global Public Sector at Merrill Lynch had a fictional 41tn to invest in Africa and this what they came up with;
Why invest in Africa?
They believe that there are still a lot of opportunities in Africa with few competitors and margins that are high.
Where to put it?
There were different few points on where to put you money targeting quick returns, long term returns, focusing on the emerging middle class income and of the importance of having the right partners. Areas of investments to look that is looking promising is telecommunication services, financial services, retail, mining and minerals, and behold, real estate.
A message for South African Investors
You want to get some exposure to African growth into your portfolio, but you also want reasonable stability and security. You don't have to invest directly into Africa to get that exposure. You could, for example, invest in a South African company with many African subsidiaries instead." Said John Gnobbe, CEO of Brait Private Equity. By Moneyweb
On the property front I found two interesting articles this week. An article with depressing news for homeowners and then an article that brings hope for homeowners;
Article 1 - There is no good news for homeowners desperate to sell their houses as the latest house price survey shows a dip that has not been seen since 1999. Furthermore, if you have put your house up for sale, you can expect to get as much as 40 percent less than your initial asking price by the end of this year. Homeowners feeling down
Article 2 - A recently released report reveals that the country's property market is in good shape and that, while the ‘boom' is tapering off in certain cities, it's only growth rates, not actual property prices that are dropping. Report reveals good news for South African property market
 Are the prices of houses dropping or not? Share your viewpoint on these two articles with us and send it to news@cyberprop.com.
In this weeks newsletter a fascinating interview by The Summit Investor with Dolf de Roos, professor of real estate studies at the University of North Texas. In one of his answers he gave excellent advice on what he would do regarding making money in commercial real estate; Put a helipad on the roof
Don't forget to visit our CyberProp Blog for more property news and views.
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The editor
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30 May 2008, 14:33:48
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Edition 20 of 2008, Friday, 30 May 2008
Dear Reader
 Come 12 June 2008 at we will see property owners sitting on the edge of their chairs after a warning by the Reserve Bank Governor, Tito Mboweni, that the monetary policy committee might raise interest rates by two percent. This warning overall had a negative feeling in the property industry.
This week we have seen an increase in negative factors dampening the residential property market. The biggest of these was the xenophobic attacks that have rocked Gauteng and spread to other provinces.
This weeks view points;
- Top auctioneer Rael Levitt warned that another interest rate hike will be disastrous for the property market; Scary property stats: SA vs the world
- The Lehman Brothers SA research team predicts that the discussion at the next Monetary Policy Committee will be between 50 basis points and 100 basis points hikes; Mboweni makes amends
- "Property rates are going up and that is going to be a further shock for consumers, on top of the petrol price. We are really taxing our middle class and they are not given anything back. The rich can (emigrate) and then we will find out what poor really is," T-Sec economist Mike Schussler said; The worst is still to come, say economists
- It's getting a lot more difficult for people to score property finance these days, with banks turning customers away in their droves and increasingly expecting deposits. And bank managers say your mortgage application is more likely to be approved if you put your own money into a deal in the form of a cash deposit. This by Jackie Cameron; Banks tighten mortgage screws
We received a call and also an email from one of our subscribers and if you are selling your property privately this warning is not too be missed; "Once here he opened the luggage, called me and then proceed to open a silver trunk with grand gesture, safety locks and all, gloves on his hands and some white powder flying around. To my surprise he pulled out R100 notes with a clear stamp of The United Nations on it". If this sounds unbelievable to you for sure you are not going to believe the rest of the letter; Letters to the editor Thank you Marina for this warning.
Many people reckon that the most important rooms for selling your home are the bathroom and the kitchen. Although the other rooms are important, these are the rooms that can make or break the potential sale; BetterBond's tips to home buyers and sellers
Don't forget to visit our CyberProp Blog for more property news and views.
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The editor
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23 May 2008, 14:32:12
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Edition 19 of 2008, Friday, 23 May 2008
Dear Reader
News, in general, this week is not all looking that good;
- The increase of the interest rate by the SA Reserve Bank slowed new car sales down in April to nearly 8% to 24094 units from last year's disastrous. April figures when vehicle sales crashed because of the e-Natis fiasco
- Eskom warned that it might be forced to resume power cuts
- For three straight days the price of oil sped to new peaks and top $135 a barrel
- Xenophobic attacks sent foreigners fleeing from townships an displaced
- The property industry is going through a rough patch and sales of coastal properties have shown a drop
We have seen tough times before and we have survived it too. Best advice to our readers is to hold onto what you have for dear life, to plan ahead and to look for alternative solutions right now. The next 18 months are not going to be easy.
 Crime can affect us in many different ways. I am sure that many people are surprised at how emotional they feel after being a victim of crime. Some people share with others while others like to keep the silence. People around us like our families and friends will also be affected. And that is not where it will end. Markets around us like the property market are also affected.
Interest rates might be the key factor for the property market deterioration crime is for sure playing an increasingly negative role. The unrest in the townships this week in Gauteng contribute to this. In the newsletter this week, three crime relate property articles;
- Rawson Properties new dossier tells agents how to protect themselves and in doing so also the sellers property. Keeping ahead of the criminals
- FNB - Crime as a key risk to residential property performance
- A woman tourist who played golf on Pollsmoor Prison's driving range lost R300 000 after being duped by prison inmate Maurice de Grandhomme, the Wynberg Regional Court has been told; Woman lost R300 000 in property scam
 Modern homes are getting more compact and while small kitchens, bathrooms and even bedrooms do not seem to bother most people, a spacious living area is highly desirable; Open up your living room
Somerset East, Eastern Cape, South Africa is a charming town bathed in history, set among Oak trees, white-washed buildings, mountain streams and waterfalls (within sight of 16 waterfalls) at the foot of the Boschberg Mountain and so much different than the Somerset West, the town that most of us are familiar with in the Western Cape. The forested and mountainous backdrop creates a dramatic setting for the town and makes it an excellent bird watching destiny. Focus on Somerset East, Eastern Cape, South Africa
Don't forget to visit our CyberProp Blog for more property news and views.
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The editor
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16 May 2008, 14:31:38
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Edition 18 of 2008, Friday, 16 May 2008
Dear Reader
 “What can I rent it for?” “What are the rentals?” If I had one Rand for every time I’ve heard these two questions, I’d be a rich man. Two brilliant articles from iAfrica;
- Rental property can provide a worthwhile active or passive income to investors; Charge more rent
- Advice on getting potential tenants to pay higher than average rent; Getting tenants to pay more than average
What the "giants" had to say this week about the property market;
FNB - What would it take to get us back to around 6,5% debt-service ratio, similar to the low of late-2003? The implications of household debt - by John Loos
Standard Bank - The residential property market is expected to suffer a relatively mild cyclical downturn rather than a full-blown recession. Standard Bank downplays house slump
And then Tony Clarke MD of Rawson Properties made a strong statement condemning some of the negative and misleading media reports recently published throughout South Africa. "Too many people's thinking," said Clarke, "has been skewed by the exceptional conditions that we enjoyed from 2002 to 2007. It has to be accepted that property is a long-term investment and is subject to cycles". Tony Clarke takes up the cudgels on SA home prices - many reports misleading he
One would think that the new NCA (National Credit Act) and the higher interest rates may have forced property owners to "lay low" for the interim period but according to reports it has not. It might have investors thinking twice about buying investment properties and new home owners looking for those bargains but it hasn't stopped homeowners from upgrading existing homes. Tips to make your home more appealing to potential buyers by Betterbond
Focus on The Garden Route, Western Cape, South Africa; the most beautiful region in the Cape. This region includes the most beautiful stretches of coastline with beaches and bays and mountains with colourful wild flowers. It has become the home of many foreigners, artists and soul finders.
The Garden route has long since been one of SA’s quality tourist and holiday destinations. More recently, though, it appears to be increasing in popularity as a “semi-gration” destination according to an FNB special survey, as quality of life in the larger metros deteriorates. Many of these “semi-grators” commute long distance to the larger cities. However, rapid growth in the economy of this region suggests that an increasing number of skilled people may be attracted to the region by its own economic opportunities. All of this is great for residential property in the area, and we see the Garden Route as one of SA’s top performing property regions in the years to come. Garden Route - the future in semi-gration?
Don't forget to visit our CyberProp Blog for more property news and views.
Enjoy!
The editor
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09 May 2008, 14:26:55
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Edition 17 of 2008, Friday, 09 May 2008
Dear Reader
We saw the launch of the new Metrorail's Business Express from Pretoria to Johannesburg, in just under an hour, launched yesterday by Transport Minister Jeff Radebe. The train offers free refreshments, a laptop workstation with power points and Internet Access. "Compared to taxis which cost around R1,200 a month or petrol which costs around R2,000 a month for the journey, our service is very affordable, it would only cost R750 monthly," Tshepo Lucky Montana, CE of the SA Rail Commuters Corporation, which operates Metrorail, said. Similar services is planned for Cape Town and Durban. Indeed good news. Hopefully this will help with the traffic problems.
On the property side, in the news this week;
 "Fractional ownership is moving beyond the shared planes of the jet-setting elite. The masses are already sharing everything from property, art to cars to designer handbags, and as pooling demand and resources becomes increasingly sophisticated, this model will be applied to an even wider range of categories."
 Due to the restricting effect power cuts have on new property development, property analysts concur that in the near to medium term they will be advantageous to property rentals as a result of stock supply not meeting demand.
 PPC, which has already increased the price of its cement 8,5% this year, said the hike of about 5% in July was meant to bring cement prices in line with March’s producer price inflation of 11,8%.The increase will drive up construction costs generally, and the costs of the government’s infrastructure spending programme
My first house - Mark Fish or "The Big Fish" as he is know in the soccer world. ‘I was living in Italy at the time but my mother wanted a house and I told her to go and have a look at some places so I could buy one for her.’ Chatting about properties currently available in Pretoria, Mark says one can find great places: ‘I suppose Pretoria feels like home to my family and I, which is why we initially decided on buying there. Houses are usually a great investment, but they’re expensive.'
Focus on Goodwood, Cape Town North, Western Cape, South Africa, Goodwood lies between the northern and southern suburbs of Cape Town, 10 kilometers from Cape Town’s city centre. Named after the famous British racetrack, as the area was initially used for horse racing, Goodwood includes Tygerdal, Vrizjee, Goodwood Park, Goodwood West and Glenwood.
News from Nationlink Plattekloof - The latest offering in contemporary design arises with The Towers in Goodwood. Spawning modern day lifestyle facilities, it also offers security and spacious living surrounds. The development places emphasis on affordability and exclusivity.
Don't forget to visit our CyberProp Blog for more property news and views.
Enjoy!
The editor
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25 April 2008, 14:06:19
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Edition 16 of 2008, Friday, 25 April 2008
Dear Reader
 Doom.. doomed? The word "doom" refers to "inevitable destruction or ruin". Looking at this and the property market one cannot help to wonder what is in stall for home owners. Currently there is a panic in the market. According to the reporters of Finweek realtors say South Africa's housing correction is far deeper and wider as anticipated and that the market could be heading for a crash.
Sellers needs to be patient, thus from Sameul Seeff, Seeff Property Group. According to him high interest rates and inflation are not the only factors determining property prices. A positive influence can be the build up to the 2010 Soccer World Cup and could be seen within the next year.
But in the mean time life goes on. What can we do to soften the blow of the current interest rates and that to come in the near future as predicted? Home owners can apply for the longest possible repayment period on their home. “Qualifying for a longer repayment period does not increase the amount of interest paid as this is charged on the outstanding balance of the loan each month, unlike vehicle finance where the full interest amount is paid first and the balance of the loan only reduces once all the interest is paid,” Ronell Killina, Amdec Property Developments, Head of bond origination.
Rates put brakes on car sales and not only on the sale of property - New vehicle sales fell by 17.5%, or 10 103 units, year-on-year in March to 47 778 units as higher interest rates continue to eat into buyers' pockets.
Have you had your home on the market for months and, despite having many show houses, and loads of people viewing your home during the week, you have not had an offer to purchase? BetterBond's tips to home buyers and sellers.
The Gem of the Overberg Region, world renowned for the natural hot mineral water springs, but also a historically and agriculturally the hub of the area, surrounded by magnificent natural beauty and fynbos, Focus on Caledon, Western Cape, South Africa.
Don't forget to visit our CyberProp Blog for more property news and views.
Enjoy!
The editor
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18 April 2008, 14:05:02
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Edition 15 of 2008, Friday, 18 April 2008
Dear Reader
In the news the week; "Retailers are expected to see an increase in bad debt as rate hikes put pressure on consumers, but most retailers should have anticipated the impending debt crunch" As for the property industry I was told that one of the big four financial institutions only granted 32% of the bond application received last month. Indeed "tuff" times for the property industry.
Sales figures from the Sunshine Coast showed UK buyers purchased residential properties worth $21 million in 2006-07, not including unconditional contracts in projects being sold off the plan or under construction. Apart from the UK, New Zealanders stepped up with $13 million worth of deals, followed by South Africa on $2.5 million, Ireland with $1.6 million and the rest of Asia at about $5 million. UK buyers snap up Coast property
One of SA's estate agency groups, RE/MAX South Africa will be opening a communication channel directly with the SA Reserve Bank president, Tito Mboweni. They are encouraging homeowners to send their letters of concern about inflationary pressures on monthly mortgage repayments as interest rates keep on raising and the effect thereof on South African household. Explain your woes to Tito
The property industry still stays one of the most interesting industries to keep your eyes on. There might be bad times but there are also plenty of good times for example; Although the property market has cooled down, there is still interest at the top end of the market, with a certain breed of buyer willing to splash out on prime properties from R10m-R20m. Got a spare R60m lying around?
Furthermore, wine farms are in demand. According to Annien Borg, MD of Pam Golding Properties Boland there is no doubt that this is an increasing evident trend. "90 percent of buyers in the Paarl and Wellington areas are seeking a lifestyle farm in order to escape from a city environment. Predominantly a wine farming district with other agricultural activities such as fruit, wheat and buchu farming, lifestyle appeal remains a key factor, coupled with the fact that these areas offer sound value for money," she says. Wine farms in high demand
And that is where we will stay this week, in the Cape, the Paarl. Paarl is one of the oldest towns in South Africa and particularly known for its mountain or "Paarl Rock". As far as the Wine industry is concerned, Paarl boasts the headquarters of the industry in South Africa, the co-operative Wine Growers' Association (KWV) and the Paarl wine Route.
The KWV is a South African institution that over the years has acquired an international reputation because of its unique achievements and its imprint of quality on the industry. Focus on Paarl, Western Cape, South Africa
One of the best parts of settlement is that buyers and sellers need to do very little. This according to our www.cyberprop.com Blog team, Home Ownership!
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The editor
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11 April 2008, 13:47:20
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Edition 14 of 2008, Friday, 11 April 2008
Dear Reader
 "The battle with inflation is going to be long and hard" This is what Tito Mboweni, Reserve Bank Governor had to say yesterday as the bank decided to increase the repo rate by 50 basis points to 11,50 percent lifting prime interest rates to 15 percent.
The increase in prime interest rate was indeed not good news for home owners and property investors but what was the general feeling about this increase and the results thereof in the property market?
Andrew Golding Pam Golding Property Group - The decision by the Monetary Policy Committee to raise the repo rate by 50 basis points is regretted by Andrew Golding, CE of the Pam Golding Property Group, who believes it will undoubtedly exert further pressure on consumers whose disposable income is already being eroded by rapidly rising fuel and food costs as well as proposed significant hikes in electricity tariffs.
Jeanne van Jaarsveldt RE/MAX - The repo rate increase of 50 base points will further trim the already shrinkage in the volume of residential property sales, but its impact would again be cushioned, just as the earlier increases had been absorbed to some degree, by sellers lowering their expectations on asking price.
John Loos FNB Home Loans - With CPIX inflation near 10%, and today’s 50 basis points rate hike signalling the seriousness with which the SARB takes its inflation targeting job, John Loos, FNB Home Loans Property Strategist, warns that the economy is definitely not out of the “danger zone” yet with regards to risks of further rate hikes.
As such, he advises the market to proceed with caution when involved in home purchasing and to buy in a price range well within one’s means. “Scenario planning to allow for the possibility of further interest rate hiking would be a good practice.”
Falling house prices and rising inflation may make you feel queasy about bricks-and-mortar assets. Don't despair: it won't be long before prices start turning the corner and heading up again. That's the message from Tony Clarke, managing director of Rawson Properties, who believes you can expect a 60% capital gain on your property by 2011. His comments follow warnings from estate agency bosses like Lew Geffen, chairman of Lew Geffen Sotheby's International Realty, that sellers reject today's offers at their peril. Geffen believes the property market is faring much worse than Absa's House Price Index figures suggest. Property returns: "expect 60% in 3 years
 Are you ready? One of the keys to making the buying a house process easier and more understandable is planning. In doing so, you'll be able to anticipate requests from lenders, lawyers and a host of other professionals. Furthermore, planning will help you discover valuable shortcuts in the process. This according to our www.cyberprop.com Blog team.
Enjoy!
The editor
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04 April 2008, 13:45:17
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Edition 13 of 2008, Friday, 04 April 2008
Dear Reader
Hum for a Blustery Day - Winnie the Pooh
 Hum dum dum ditty dum
Hum dum dum
Oh the wind is lashing lustily
And the trees are thrashing thrustily
And the leaves are rustling gustily
So it's rather safe to say
That it seems that it may turn out to be
It feels that it will undoubtedly
It looks like a rather blustery day, today
It sounds that it may turn out to be
Feels that it will undoubtedly
Looks like a rather blustery day today
It looks like a rather blustery year this according to Shaun le Roux, Alphen Asset Management. Shaun's advice; "We would be avoiding residential property in the meantime as we would anticipate that there will be a lot of pain to come in the middle- to upper-end over the next couple of years. By Moneyweb
We all know the saying that whatever goes up must come down. South African house prices fell in March for the first time in eight years, with the average house price down to R550000 from R570000 in February. House prices hit lowest point in eight years
On the other hand South African listed property performed well with a returned 27.7% last year, higher than the 27.1% of 2006. The 2007 South African Property Owners’ Association/IPD SA Property Index - which surveyed 70% of the total property assets held by financial institutions and property companies - showed that the last three years had seen the highest returns in the history of the index. How is 2008 going to perform?
 Tony Clarke, MD of Rawson Properties predicts a further hike in the interest rate. According to him it is likely that it will be with a full 100 base point (1%) taking the interest rate to 15,5%. We will have to wait and see what next weeks meeting of the SA Reserve Bank delivers.
Which facility do you think raise the price of any property exponentially? And the answer is.. facilities for horses! "In my view," said Mike Greeff, CEO of Greeff Properties recently. "Horses are greedy, expensive luxuries, dangerous at both ends and uncomfortable in the middle, but the plain truth is that whenever a property has paddocks, stabling and access to riding trails it becomes eminently desirable and sought after - so much that in our business we have never had enough equestrian homes to meet the demands"
This week in Focus on we take a closer look at Robertson, Western Cape, South Africa. Robertson is well known for its beauty, renowned for its wines of connoisseur quality, radiant roses and thoroughbred horses. Columns of red or yellow cannas and flaming bougainvillea line the roads outside the wine estates, gardens overflow and vineyards are banked with roses, while brilliant mauve jacarandas shade the streets. The Robertson Wine Route is an officially recognised Wine of Origin region and the Cape's largest wine producing region under irrigation. www.sa-venues.com
In our CyberProp Blog we look at why the number of showhouses and showhouse visitors are well up on last year.
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The editor
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28 March 2008, 13:42:19
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Edition 12 of 2008, Friday, 28 March 2008
Dear Reader
North.. East.. South.. West.. Looking for property where will it be? This week we hope that we can assist you in making that decision.
North - Is northern Joburg a buyers' or sellers' market? According to Denise Mhlanga, Real Estate Web, it all depends who you ask and where you look even over the northern Johannesburg area where questions are raised of whether the market has become oversaturated
East - Upper-end EC home market slows down. EAST London’s houses are spending a longer time on the market, as reduced affordability and political uncertainty is slowing down the property boom. One upper-end Gonubie house has been on the market for nine months, having dropped from its original selling price of R2.3 million to R1.5m. This according to Siya Miti and Roux van Zyl
South - Property Investment in Australia Price values in the Australian property market took a fall from 2004 to 2005 and have been struggling to recover ever since. Some are predicting that the market is close to stabilising and that now may be the time to invest “Down Under.”
West - Good returns reported on student accommodation in Magalies “In the absolute buyers’ market prevailing at present in Magalies, one really bright spot is the potential student commune market, which suggests that investors may realise good returns as a result of the demand for student accommodation,” says Chris du Toit, franchisee of Realty1 International Property Group in Magalies.
South Africa banks are confident that they will exceed the 42 billion rand low-cost housing finance origination target by year-end, an industry body said. The low-cost housing finance loans commitment forms part of the 2003 Financial Sector Charter, in which the banking sector committed to originating loans to low-income households totalling 42 billion rand over the five-year period to the end of December 2008. Banks to beat FSC housing target
Magaliesburg, Gauteng, South Africa - This small village lies at the heart of a beautiful region of mountains, valleys, rivers and indigenous woodland - home to a variety of birds. Magaliesburg is a tranquil haven of tourist attractions. Here you will find country guest houses, hotels, lodges, stores, art and craft studios, working farms, horse and mountain bike trails. www.places.co.za
In our CyberProp Blog we look at the top 10 Man-Made Island Paradises.
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The editor
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20 March 2008, 13:42:07
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Edition 11 of 2008, Thursday, 20 March 2008
Dear Reader
“The Knight Frank Global House Price Index shows that while property prices in Europe and America appear to be suffering from the downturn in economic conditions; Asia and elsewhere, notably Singapore and Hong Kong, are performing very well." South Africa - Although impressive by International standards, the 12.3% growth recorded in South Africa represents a significant slowdown for the South African property market, and is the lowest annual growth figure since Q4 1999. The outlook for house price inflation over the next year remains uncertain as although inflation is expected to remain high, new residential construction is predicted to slow, raising levels of demand for existing homes. Global House Price Inflation was 8.2%
10 for Greeff Properties this week! Greeff Properties set up a non-profit organisation, The Greeff Art Trust, to help township and previously disadvantaged artists to find a market for their art work. They have just distribute 6 000 DVD's to homes in Bishopscourt, Claremont, Kenilworth and Constantia. Read more in Greeff holds out a helping hand towards Township artists
 My first house, John Robbie. Does John have any advice for those considering entering the property marker? "It's stupid to pay off someone else's home loan if you can pay your own bond. Just jump on the bandwagon if you're not already a homeowner.
Will you pay R3-million for a one bedroom apartment? Developers of La Residence, arguably the country’s most expensive residential development, would have built three penthouses had they known that demand for one of the two multilevel apartments would have resulted in a heated bidding war. Prices for the 152 apartments in the development range from R3-million for a one-bedroom unit to more than R25-million for each of the six other ordinary penthouses. SA’s most expensive homes
Bill Rawson shares commonly errors made by property investors;
- To buy in response to an emotional stimulus
- To accept the advice of a friend
- To neglect the management of the project
- To go into the deal without a game plan
Don't forget to visit our CyberProp Blog for more property news and views.
Enjoy!
The editor
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14 March 2008, 13:36:41
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Edition 10 of 2008, Friday, 14 March 2008
Dear Reader
It's back! "Load Shedding". Eskom, at the end of March, is to begin with "pre-emptive load shedding". This because the country did not meet the target reducing electricity demand by 10 percent. According to Jacob Maroga, Eskom's chief executive the electricity system is still "very vulnerable". Eskom is to be begin with "pre-emptive load-shedding" on 31 March.
If you thought the national power shortage crisis couldn't produce any more surprises, think again. Some government officials would like to see a prohibition on electric geysers without a solar heating facility in new dwellings valued at more than R750 000 or that are bigger than 300m². Ban on geysers, pools, office air-con
Although the monthly costs of homeownership such as home loan instalments and municipal rates are on the rise, this is no time to slack off on maintenance. So says Berry Everitt, MD of the Chas Everitt International property group, who notes that keeping your home in top condition will save you money in the long run, and that in the current tight economic conditions the old adage that “a stitch in time saves nine” should be kept in mind. No time to neglect home maintenance
Is mortgage the new marriage? It's a common scenario that one party is officially the buyer, and the other pays some of the mortgage as 'rent', or pays their way by footing the other costs. I know a couple who operated this way for about seven years. When they split, it became startlingly clear that the person who'd bought the house was the winner – she got to stay on, and the house had benefited from seven years of property boom. He, on the other hand, just had a drawer full of receipts, and had to start again, from scratch, without even the deposit on a new home.
Pricing decisions should be grounded in reality rather than wishful thinking. When the time comes to price your home for sale, you may be tempted to start with the price you paid for it, add a healthy mark-up and call it a day. Unfortunately, that strategy is unlikely to result in a true reflection of your home's market value. The CyberProp Blog shares 6 tips today that can help you when pricing your home. How to price your home
In our CyberProp Blog we look at why Homeowners must have their title deeds on hand when selling a property.
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The editor
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07 March 2008, 13:35:43
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Edition 9 of 2008, Friday, 7 March 2008
Dear Reader
USA - The Property market is melting down. For months, economists have debated whether the United States is headed toward a recession. Today, there is no doubt. What about South Africa?
 ABSA - House price growth has not been so low since the end of 1999, when it was 9,3%. "The outlook for inflation does not appear to be positive over the short term, taking account of the latest trends with regard to the international oil price, the rand exchange rate, and food price inflation. The CPIX inflation rate is forecast to rise to a level of above 9,0% in the near term, which poses a risk to interest rates," Absa said.
The average house price (ABSA) - R 969 800
 Standard Bank - South African average house prices were flat for the third straight month in February after moderating to 6.5% y/y in November from 10.2% y/y in October, the Standard Bank property gauge showed on Monday. "This softening trend characterises the waning consumer fundamentals, especially more expensive debt, alongside slower real income growth," said Nxedlana."
The average house price (Standard Bank) - R 570 00
Don’t hide when you’re in default - Homeowners who are behind on their bond repayments too often take the head-in-the-sand approach and leave their number-one asset exposed to repossession. In fact, what borrowers should do at the first sign of trouble is contact their lender themselves, and ask about repayment alternatives that will enable them to reduce instalments and keep their home." Wise words from Berry Everitt MD of the Chas Everitt International Property Group.
Don’t keep all your eggs in one basket. Heard that one before, right? This well known investment maxim makes perfect sense to the average South African small investor. Even the simplest portfolio invariably consists of various asset classes. Buying an overseas property is an excellent way to protect yourself against economic and political uncertainty as well as the devaluing Rand. It also makes good investment sense to tap into booming markets. Buying abroad
Are you ready to become a "beach bummer"? SA scores well on economic-freedom index
In our CyberProp Blog we look at some smart questions to ask when renting to own.
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The editor
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28 February 2008, 13:28:44
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Edition 8 of 2008, Friday, 29 February
Dear Reader
29 February! Leap Year is not celebrated every year. As we know it occurs every fourth year. Now, what is the chances for another edition of your newsletter on Friday, 29 February in the near future? Very slim so we better make the most of it this year, 2008!
"While there are indications of strain over most of the residential market at present, it would appear that there are certain signs of a higher degree of strain building at the lower income end. While this does not lead me to expect any collapse in performance at the lower –priced end of the former white suburban market, I do believe that its superior performance compared to the higher-priced end will all but disappear this year." This is what John Loos, FNB Home Loan Property Strategist had to say this week. You can also read more about what John had to say about the load sharing and power crisis in Property positive on power
 "Howinthegoshdarnworlddidthishappen?" The "for sale" sign was stuck in the ground, an information sheet about the place was taped to it and there were cards from the seller's real estate office attached to the sign. Home isn't always where this heart is, a true story about a renter wounded up signing a purchase of a property agreement
In the heart of South Africa ’s millionaires’ playground lies a tiny private island that is up for sale for R27-million. For sale: A little piece of paradise
With home loans having become more difficult to obtain and afford, thanks to the National Credit Act and higher interest rates, more and more consumers are seeking to rent property. But there is a growing shortage of homes to let, so prospective tenants need to put their best foot forward, says Dr Piet Botha, chairman of the Nationlink estate agency group. How to get the landlord’s attention
I am hoping that someday there will be a serious discussion with all the stakeholders about the housing issue for the so-called "middle income earners". Zodwa This weeks top letter to the editor
Don't forget to visit our CyberProp Blog for more property related news and views.
Enjoy!
The editor
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22 February 2008, 13:17:03
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Edition 7 of 2008, Friday, 22 February
Dear Reader
 Budget 2008! The new buzz. First it was the New National Credit Act, then the increase in interest rates and now the Budget of 2008. Factors that plays a vital role in the property market. One cannot help to wonder what will be next.
Realestateweb - Finance minister Trevor Manuel has failed to heed calls from those eager to get some fiscal fuel into the residential property market. When asked why he was so stingy to property players this year, Manuel told Realestateweb that he does not want to encourage speculative activity in the real estate market.
ABSA - The national Budget did not contain much for the slowing South African residential property market, Absa, the country's largest mortgage lender, said on Wednesday.
But not all the responses were negative. On the positive side is that inflation will be within the target range of three to six percent by the end of this year with the results that interest rates could come down.
But let me not spoil your fun. In this weeks edition you can read all about the responses received from the "giants" in the property industry and form your own opinion. Let us know what you think news@cyberprop.com
Langebaan is an idyllic little seaside town on the South African West Coast. It is located at the edge of the Langebaan lagoon. The lagoon is part of a protected area, the West Coast National Park, and is also popular for all kinds of water sport. The area is popular with nature lovers and adventure seekers alike. During the flower season the landscape is transformed into a giant wildflower garden. Langebaan is a very popular holiday resort and offers a wide variety of activities and attractions within the immediate area - www.langebaan.co.za Focus on Langebaan, Western Cape, South Africa
 For those of you that can remember last week's article and the invitation to Richard, one of our readers, to submit his article; it's here; Letter to the Editor. Thank you Richard your bottle of sparkling wine is on its way. In response to the article written in your newsletter of February 8 with the Title:” RE/MAX urges state to launch first-time buyer "package". I absolutely agree with this article but would like to bring to the attention of your readers the following: Have your potential new house inspected !!
In our CyberProp Blog we look at Five Keys To Successful Negotiation.
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The editor
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15 February 2008, 12:55:09
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Edition 6 of 2008, Friday, 15 February
Dear Reader
Over the last few months we have blamed the New National Credit Act and then interest rates for the downwards trend in the property market. The latest is 'Blame it on the oil'. "All paper money is doomed to fail! It is doomed in the long run." Those were the concluding words of a presentation by the economist Dr. Marc Faber at a mining conference in South Africa. He claimed globalization has caused the whole world to act in unison, with the result that, when the current financial bubble pops, the entire global economy, built on fancy fabrications, will founder.
"In five years’ time property is expected to be about 60% more expensive than today, taking into account annual growth of 10% over this period," said Gavin Opperman, managing executive of Absa Home Loans. Property prices to rise
Against this backdrop of increasing new homeowners, many consumers are not taking the time to inspect their new homes during the crucial period of moving in - often to the detriment of their properties long term value, warns the Master Builders Association Western Cape (MBAWC). New homeowners warned to check for faults within 24 hours
South Africans keen to buy property overseas currently have several major factors in their favour – and now a leading real estate group is launching a new company specifically geared to help them make international property investments. A launch function will be held on Wednesday 20th February 2008 at the Mount Nelson Hotel in Cape Town. This is your last chance to register; CEI Overseas Properties Launch Press Release
Remember the article "RE/MAX urges state to launch first-time buyer "package" that was in last week's newsletter? Herewith a shortened response we received from one of our readers;
"I fully agree with the article but would like to add a very important aspect that a first time buyer must know. HAVE YOUR POTENTIAL NEW HOUSE INSPECTED!! before you put a signature under you 20-30 bond. This way you can budget for "surprises" that would be there without a report. If you want I could write an article on this subject, to educate the public and make sure the public is served with their best interests in mind". Richard we await your article.
In our CyberProp Blog we look why you should award a sole mandate to an experienced agent.
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The editor
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08 February 2008, 12:52:12
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Edition 5 of 2008, Friday, 08 February
Dear Reader
Public Enterprises Minister, Mr. Alec Erwin yesterday said that South Africa's power crisis is not a threat for hosting the Soccer World Cup in 2010. My question however remains, what is the impact of the load sharing of electricity going to have on the property industry in South Africa?
Staying at the 2010 Soccer World Cup; Property owners are gearing themselves for the lucrative renting market in 2010 but should be cautious as the football party tenants descend on mass. Housing hooligans by iafrica
In the news this week:
- South African median home prices were flat for the second consecutive month
- SA house price growth brushes 97-month low
- House price slows to 13.2%
- Power cuts worry building sector
- Affordability for first time buyers a concern
Have you had this dream of a country home? Some advice from the Chas Everitt Property Group; Be patient and take your time. By their very nature, country properties may come to market at longer intervals than city property. But that does not mean you should not enjoy the search! How to answer the call of the country
Moneyweb, Power hour - an interview with Jacques du Toit: Senior property analyst, Absa;
MONEYWEB: So if you've invested in a coastal resort, a golf estate, something like that, it's not going to be easy for you to quickly get your money back?
JACQUES DU TOIT: No. I should say it is now time to keep your property, hold on to your property and try to sit out these more difficult times.
Founded in 1851 on the Oorlogskloof River and named after religious reformer John Calvin, Calvinia lies at the foot of the Hantam Mountains. Hantam being a Khoi word meaning "where the red bulbs grow". Calvinia is the region’s key growth point and one of the country’s largest wool-producing areas, Focus on Calvinia, Northern Cape, South Africa
In our CyberProp Blog we look at the warning signs of a bad loan.
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The editor
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01 February 2008, 12:39:51
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Edition 4 of 2008, Friday, 01 February
Dear Reader
Thank you Mr. Tito Mboweni! This is what plenty home owners will say this week as it was announced yesterday by the Reserve Bank's governor that the repo rate and therefore the interest rate will stay the same. Indeed a relief in the property industry. However, South African should not expect rate cuts soon.
 I received emails from subscribers wanting to know what would be the best, to rent or to buy. This is for sure not an easy answer and something that only you can decide on. To make it easier to conclude an answer do not miss the following article. Think you should sell up? The pros and cons – two respected economists weigh in on either side of the debate. "Better to rent than buy"
As a kid living in the inner city was always like a dream to me, to be in the middle of all the action. Over the years times has changed and no longer people wish to stay there. Great was my surprise this week when I found not one but two positive articles on two of our inner cities, Johannesburg and Cape Town.
Johannesburg - Young professionals are buying sectional title units newly created from offices in Braamfontein and the core CBD, attracted by the opportunity to get on the property ladder at prices as low as R140 000.
Cape Town - "Let's add more people."
"They knew exactly which neighbour's wall to climb over, exactly which doors to come through and where everything in the house was and what to ask for," Is it safe to sell your property with a mandate, privately or even on show? When killers knock on your door
In our CyberProp Blog we look at some of the various forms of insurance associated with home ownership.
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The editor
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25 January 2008, 12:38:44
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Edition 3 of 2008, Friday, 25 January 2008
Dear Reader
This week, as far as the property industry goes, there are two issues that we have to look at that can play a major role in the property market over the next few months;
1. The global market
2. Eskom and the rolling blackouts
As the markets are plunging it is sending a stern warning to world leaders. "I don't think there is a country that will avoid the effects, including South Africa," these were the words from the African National Congress. As for home owners in the USA unhappy homeowners are finding their real estate is worth only as much as someone is willing to pay for it.
"Interest rates have taken a backseat in recent days as rolling blackouts turn the attention to electricity supply shortages. What will be the impact of these power shortages on property, I have been asked. The simple view would be that the "energy crisis" will be negative for the economy and thus negative for property.
But things are never that simple, and power supply shortages may well prove to be a "double-edged" sword - negative for property developments but positive for property returns." John Loos FNB Home Loans Property Strategist. The impact of electricity production and distribution shortages on the property market
"The key is to try and hang on to your property. Real estate is a long term investment and while it is attractive to cut and run now, long-term growth has always prevailed and property is an excellent retirement vehicle." "Rampant' property buyers' market predicted by Homenet
 If you had R1-million to spare where would you invest? What if you had R25-million? Which property would you buy? Property tops wish list
In our CyberProp Blog we look at some points to consider when looking for a new home.
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The editor
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18 January 2008, 12:33:54
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Edition 2 of 2008, Friday, 18 January 2008
Dear Reader
This week the rand touched its weakest level since late December amid a global flight from risky assets and many property owners are concerned about where it is all going to end.
 According to John Loos, FNB Home Loans Property Strategist there is no need to worry. "Firstly, it may be comforting to know that residential property crashes are not common. In fact, in over 40 years since the mid-1960s there has only been one, and that was in the mid-1980s. Already, therefore, this would suggest that the chances are slim. How does the current environment compare? This time around (compared to the 1980s), I expect the economy to hold up far better in the long term, thus providing little chance for a slide in the affordability ratios al la mid-1980s. Rather, the affordability issue will continue to be addressed by a move towards smaller units on smaller stands and, unfortunately, the end of the spacious lifestyle that many middle class South Africans have come to accept as the norm."
 The world's housing markets in 2007 and 2008, an article not to be missed this week. "South Africa is rapidly cooling, after more than five years of double digit house price increases. The housing market is likely to be dampened by political uncertainty associated with the 2009 election, given the pro-redistribution rhetoric of front-runner Jacob Zuma"
In the wake of the panic property buying of the mid-2000s, many would find it hard to believe that house prices can actually drop in value. But they can, and have, dipped below what they are worth, Can houses drop in value?
This is your last chance to register for the launch of the Chas Everitt International Overseas Properties opportunity. A launch function will be held on Wednesday 20th February 2008 at the Mount Nelson Hotel in Cape Town. Read more in CEI Overseas Properties Launch Press Release
Familiar with the following;
I could not agree more... but how deceiving are the agents? Take this house for instance (Ref: 370864) It looks so pretty on the pictures, in fact, it looks perfect... what they failed to took in the photo's are the neighbours whose driveway run through your property and around your house! But even better, they failed to show that there is no fence between you and your neighbour so you share their kids, you share their black dog and you share their friends... I mean, love though neighbour but this is a bit much!!! Visit our blog CyberProp Blog for more postings.
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The editor
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11 January 2008, 12:22:33
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Edition 1 of 2008, Friday, 11 January 2008
Dear Reader
2008! It seems that we are now in a period during which property investors are having to adjust to higher capital costs due to higher interest rates. Although we have not yet seen;
- a lot of forced selling
- that prices of property are coming down dramatically
- that property stock have bottomed
To all our readers who will be ventured into purchasing property this year best of luck. From our side we will continue bringing you news, advice and forecasts.
South Africans have traditionally been spoilt for property space, but that’s been changing in recent times and, in keeping with trends elsewhere in the world, the process is set to continue with properties becoming smaller. Honey I shrunk the house by Iafrica.
Western Cape Properties Boom; an interesting article I found this week on The Times property website or should I rather say that it was not the article but the comment from one of the readers that got me thinking. Send your view point on this issue to news@cyberprop.com
Marketing South African real estate internationally remains a committed focus of Chas Everitt but now the leading property group is bringing the world of international property investment to South Africans. A well established trend in Europe is the investment in a second home but what about South Africans? A launch function will be held on Wednesday 20th February 2008 at the Mount Nelson Hotel in Cape Town. Read more in CEI Overseas Properties Launch Press Release.
Although most of us has just returned from hopefully a good holiday there is some of us that is already planning the next holiday. Accommodation on Course shares with us local accommodation that they believe to be among the best South Africa has to offer in terms of places to stay.
In our CyberProp Blog we look at a few points to remember when choosing a home.
Enjoy!
The editor
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