 05 February 2010, 08:21:24 AM
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 AM
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 AM
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, 04:24:39 PM
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 AM
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 AM
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 AM
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 AM
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 AM
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 AM
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
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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 AM
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
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012-333-6644,
073-946-9649 or
megw@telkomsa.net
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27 November 2009, 09:13:59 AM
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 AM
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 AM
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 AM
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, 04:28:38 PM
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.
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
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19 November 2009, 04:26:57 PM
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, 03:34:13 PM
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 AM
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.”
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MANDY BLOM ON
013 235 4131 OR VISIT
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13 November 2009, 09:48:19 AM
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.”
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031 201 1060 OR VISIT
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13 November 2009, 09:47:15 AM
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 AM
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 AM
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 AM
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 AM
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 AM
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 AM
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 AM
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 AM
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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CONTACT ANDREW LINE
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13 November 2009, 09:26:30 AM
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.”
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CALL HARCOURTS MARITZ
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OR VISIT www.harcourts.co.za
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13 November 2009, 09:25:04 AM
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 AM
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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MARTIN SCHULTHEISS ON
031 201 1060 OR VISIT
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06 November 2009, 10:02:20 AM
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.
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06 November 2009, 10:00:49 AM
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 AM
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 AM
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 AM
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 AM
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 AM
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 AM
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 AM
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
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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30 October 2009, 10:26:41 AM
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
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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19 October 2009, 09:57:27 AM
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 AM
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 AM
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 AM
Upper Claremont home offers chic, modern look – and 180¢ª 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 AM
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 AM
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 AM
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 PM
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 AM
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 AM
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.”
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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25 September 2009, 08:27:30 AM
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 AM
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 AM
 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 AM
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 AM
 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 AM
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 AM
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 AM
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, 03:15:32 PM
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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 AM
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 AM
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 AM
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, 04:51:18 PM
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
Kind Regards
Cyberprop
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08 September 2009, 04:37:56 PM
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 AM
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, 03:11:00 PM
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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 AM
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 AM
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 AM
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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Pse direct any enquiries to
012-333-6644,
073-946-9649 or
megw@telkomsa.net
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31 August 2009, 08:13:21 AM
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 AM
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 AM
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
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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28 August 2009, 03:22:13 PM
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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 AM
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
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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25 August 2009, 09:49:12 AM
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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Pse direct any enquiries to
012-333-6644,
073-946-9649 or
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24 August 2009, 09:51:05 AM
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 AM
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 AM
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
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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21 August 2009, 03:03:42 PM
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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 AM
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 AM
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 AM
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 AM
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 AM
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 AM
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 AM
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¢ª 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 AM
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 AM
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, 03:06:32 PM
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, 02:51:10 PM
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 AM
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 AM
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 AM
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 AM
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 AM
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, 03:07:44 PM
The international Harcourts real estate group is now represented in Ballito on the KwaZulu-Natal north coast, thanks to the rebranding of leading local agency Homenet Ballito.
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.
Ida Du Plooy, principal of Harcourts Ballito, says the conversion has gone smoothly and she and her team are very excited and proud to become a part of a global real estate organisation.
“Harcourts is a very well established, professional organisation with a 120-year track record that also offers some of the most advanced real estate technology and systems in the world. Its marketing and training methods are also exceptional. Moreover, it offers great networking capabilities and opportunities to ensure international exposure for our clients’ properties”.
Indeed, says Harcourts Africa CEO Martin Schultheiss, the conversion of Homenet branches to Harcourts is about much more than fresh branding.
“Harcourts offers our principals and agents 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.”
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
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07 August 2009, 09:57:40 AM
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 AM
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 AM
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 AM
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 AM
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 AM
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 AM
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 AM
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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 PM
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 PM
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 PM
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 PM
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 PM
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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 AM
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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 AM
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
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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 AM
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 AM
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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16 July 2009, 03:51:20 PM
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, 03:48:15 PM
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, 01:17:30 PM
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, 01:03:55 PM
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 AM
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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 AM
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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The Mega/ Press Network
Pse direct any enquiries to
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073-946-9649 or
megw@telkomsa.net
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10 July 2009, 08:38:28 AM
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 AM
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 AM
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, 03:56:18 PM
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, 03:54:10 PM
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, 04:02:53 PM
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 AM
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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
CLICK HERE FOR MORE
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03 July 2009, 08:55:52 AM
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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 AM
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 AM
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.
Distributed by/ versprei deur
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Pse direct any enquiries to
012-333-6644,
073-946-9649 or
megw@telkomsa.net
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03 July 2009, 08:49:05 AM
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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 AM
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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Pse direct any enquiries to
012-333-6644,
073-946-9649 or
megw@telkomsa.net
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01 July 2009, 04:19:49 PM
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 AM
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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 AM
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 AM
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 AM
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 AM
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 AM
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 AM
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 AM
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 AM
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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 AM
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 AM
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 AM
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 AM
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 AM
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¢ª 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 AM
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 AM
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 AM
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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
CLICK HERE FOR MORE
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12 June 2009, 09:04:09 AM
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 AM
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 AM
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 AM
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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Pse direct any enquiries to
012-333-6644,
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05 June 2009, 09:55:22 AM
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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 AM
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 AM
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 AM
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 AM
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 AM
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 AM
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 AM
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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
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25 May 2009, 10:59:13 AM
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 AM
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 AM
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 AM
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 AM
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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 AM
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 AM
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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, 03:27:22 PM
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, 03:50:36 PM
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, 03:48:08 PM
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, 03:51:14 PM
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 AM
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 AM
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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, 04:37:08 PM
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 AM
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 AM
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 AM
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 AM
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 AM
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 AM
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 AM
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 AM
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 AM
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, 04:46:39 PM
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, 03:53:03 PM
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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 AM
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 AM
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 AM
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, 04:30:34 PM
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, 04:25:42 PM
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, 04:24:41 PM
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, 04:14:23 PM
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, 04:12:39 PM
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, 04:11:21 PM
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, 04:08:45 PM
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 AM
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 AM
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 AM
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 AM
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, 03:43:09 PM
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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, 02:42:37 PM
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, 03:49:56 PM
 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, 03:45:18 PM
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, 03:44:17 PM
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, 03:37:37 PM
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 AM
'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 AM
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 AM
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 AM
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 AM
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 AM
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 AM
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 AM
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 AM
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, 01:11:11 PM
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, 02:09:53 PM
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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 AM
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 AM
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, 03:38:45 PM
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, 03:40:14 PM
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, 02:23:11 PM
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 AM
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, 04:30:19 PM
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, 04:29:37 PM
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 PM
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 PM
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 AM
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 AM
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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 AM
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 AM
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 AM
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 AM
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 AM
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 AM
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 AM
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 AM
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 AM
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, 04:44:44 PM
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 AM
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 AM
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, 04:43:41 PM
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, 02:58:15 PM
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, 02:56:32 PM
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 PM
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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 AM
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 AM
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 AM
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 AM
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 AM
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 AM
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 AM
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, 04:47:21 PM
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, 04:45:16 PM
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, 04:42:05 PM
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 AM
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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 AM
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 AM
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 AM
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
Distributed by/ versprei deur
The Mega/ Press Network
Pse direct any enquiries to
012-333-6644,
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18 February 2009, 02:43:00 PM
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, 04:47:55 PM
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 AM
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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 AM
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 AM
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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 AM
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 AM
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 AM
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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
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The editor
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12 February 2009, 04:45:31 PM
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.
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