The information in this article is courtesy of iAfrica (BER sees 150bs cut – 22 May 2009).
The Bureau for Economic Research (BER) believes that more limited rate cuts of 50 basis points could be expected in South Africa. There is also a chance that the Reserve Bank might go a bit further than that.
Professor Ben Smit of BER said that the Governor acknowledges recession meaning we can expect “recessionary conditions”.
According to Smit some improvement can be expected towards the 3rd quarter of the year, and he pointed out that the global crisis has probably had about 4% impact on the BER’s GDP forecasts.
BER predicts inflation in South Africa at an average of 6.8% in 2009, dipping below 6% in August, but ending the year back at 6.9%. In 2010 these levels will move back to within target range averaging 5.3%.
In other predictions, the BER sees South Africa's nominal wage rate at an annual average of 8.3 percent in 2009 from 9.9 percent in 2008, dipping to 6.3 percent in 2010.
Monday, May 25, 2009
Thursday, May 21, 2009
Selling Options: The Pros and Cons
The information in this article is courtesy of Realestateweb (Selling your property – 21 May 2009)
When it comes to selling property, you have a few options. Most people opt for using an estate agent, other sell by private tender and some go to auction to get their property off the market. Here are the pros and cons of these options:
Sale by private tender incorporates the best selling methods of estate agents and auctions. Your property will also have a limited time in which it will be sold. The process of selling by private tender is not transparent, which means that buyers are forced to put their best offer forward as they do not know who has offered what.
A disadvantage of selling by private tender is that buyers have a short time in which they have to make a decision, as there are limited viewing days. Also, sellers might not accept any of the offers and buyers never know what price they are bidding against, leaving them no choice but to put in their maximum bid.
Using an estate agent to sell your property means you get a personal service. Safety is also guaranteed as the agent will screen and pre-qualify potential buyers to view property. Also, you can benefit from estate agents’ knowledge of legal terms and the property market.
However, estate agents charges a commission and advertising and marketing your property might be expensive. Another disadvantage of using an estate agent to sell your property is that not all agents have the incentive to get the highest price for the property.
When you sell your property on auction, you are assured that the buyer will take care of the commission as well as all the other costs of the transaction. The deal is transparent since auctions are live and bidders know at every stage what the highest bid is. The purchase of a property on auctions is also not subject to bond approvals.
A disadvantage of selling on auction is that buyers are often scared of bidding, because they are not familiar with the process. Also, there is often an oversupply of stock meaning sellers can often miss out on an opportunity to sell. Another downside is that in some cases, sellers are responsible for advertising costs.
Thursday, May 14, 2009
More Accolades for the Mother City
Cape Town has won another prestigious prize – this time palming in the award for Africa’s leading destination at the World Travel Award in Durban on May 11. The Property Magazine reports that this is the second time in a row that this popular city has walked away with the award.
Executive Director of Economic, Social Development and Tourism in the City of Cape Town, Mansoor Mohamed, who accepted the award, said that it reaffirms Cape Town’s position as leading tourism destination and will also help to make Cape Town the city of choice for the 2010 Fifa World Cup.
Travel experts have rated this award as the best endorsement that any travel product can receive and it is globally considered as the Oscars of the travel industry.
The Mount Nelson Hotel in Cape Town also scooped up the award for Africa’s Leading Hotel. Mariette du Tiot Helmbold, CEO of Cape Town Tourism, accepted the award.
Buy Cape Town Property
Monday, May 11, 2009
Atlantic Seaboard Property: It's Bargain Time
The information in this article is courtesy of Business Day (Bargain time on the Atlantic Seaboard – 6 April 2009)
Never has there been a better time to buy property in this sought after area. According to Di Reid, principal of the Atlantic Seaboard Chas Everitt International franchise, the prices for expensive properties on the Atlantic Seaboard has come done – presenting those wishing to buy into the area with a perfect opportunity to scoop up a bargain.
Property in Camps Bay are selling for between R4,5 and R10 million and Bakoven homes around R8,5 million. You can now pick up Clifton apartments for between R6,5 and R10 million – between 6% and 21 % lower than six months ago.
Reid added that there has also been a trend among investors to buy some of the older properties in these areas to renovate or to demolish to make room for contemporary sectional title properties. These properties can be rented out for between R15 000 and R25 000 per month.
Buy Atlantic Seaboard Property
Wednesday, April 29, 2009
Is the Rent-To-Own Option For You?
The information in this article is courtesy of iAfrica (Pitfalls of Rent-to-Own – 28 April 2009).
Since banks are insisting on exceedingly large deposit before granting home loans, the rent-to-own option has become a popular choice among home buyers.
In a nutshell, rent-to-own or lease-to-own is a term relating to a real estate agreement, which is composed of a rental lease, and a purchase agreement where the tenant has the option to purchase the property at a fixed price at a specified point of time in the future. The main idea of a rent-to-own agreement is for the buyer/tenant to rent and maintain the property for a set period of time before she or he must obtain a home loan and exercise an option to purchase — or decide to walk away from the deal.
Dr Willie Marais, national president of the Institute of Estate Agency (IEASA), believe that both the tenant/buyer and the landlord/seller win in such an agreement.
For sellers, the agreement means that they have the opportunity to tap into a broader market of potential buyers, not just those with good credit and cash for a deposit. Also, the rental income will cover existing mortgage and an opportunity to lock in the property price that might fall in a down market.
One of the main advantages for the seller is probably the fact that tenants will have an interest in maintaining the property, as it will soon be theirs.
Potential buyers will have the advantage of moving into a home that they want without handing in a large amount of cash.
A rent-to-own transaction has 3 agreements: an Option to Purchase, a Lease Agreement and a Sales Agreement. The landlord/seller will usually charge an option fee equal to 1% to 3% of the purchase price, which can then be paid off by the tenant/buyer as part of the rent. This will then act as most of the deposit on the property at the end of the rental period.
Marais warned potential rent-to-own buyers that they should consult an experienced estate agent, a reputable mortgage originator and the advice of an attorney should they decide to enter such an agreement. The following questions should be answered before signing the agreement:
Is the price fair given future price expectations?
What portion of the rent will be credited towards the purchase price?
Who will be responsible for rates/taxes during lease period?
Under what conditions could the rent-to-own contract be voided?
Under what conditions will the buyer be refunded any part of the option fee?
Marais also proposed that all buyers that are considering renting-to-own should first consider renting cheaply while saving for a deposit, as this might be a better option in some cases.
Buy Durbanville property
Since banks are insisting on exceedingly large deposit before granting home loans, the rent-to-own option has become a popular choice among home buyers.
In a nutshell, rent-to-own or lease-to-own is a term relating to a real estate agreement, which is composed of a rental lease, and a purchase agreement where the tenant has the option to purchase the property at a fixed price at a specified point of time in the future. The main idea of a rent-to-own agreement is for the buyer/tenant to rent and maintain the property for a set period of time before she or he must obtain a home loan and exercise an option to purchase — or decide to walk away from the deal.
Dr Willie Marais, national president of the Institute of Estate Agency (IEASA), believe that both the tenant/buyer and the landlord/seller win in such an agreement.
For sellers, the agreement means that they have the opportunity to tap into a broader market of potential buyers, not just those with good credit and cash for a deposit. Also, the rental income will cover existing mortgage and an opportunity to lock in the property price that might fall in a down market.
One of the main advantages for the seller is probably the fact that tenants will have an interest in maintaining the property, as it will soon be theirs.
Potential buyers will have the advantage of moving into a home that they want without handing in a large amount of cash.
A rent-to-own transaction has 3 agreements: an Option to Purchase, a Lease Agreement and a Sales Agreement. The landlord/seller will usually charge an option fee equal to 1% to 3% of the purchase price, which can then be paid off by the tenant/buyer as part of the rent. This will then act as most of the deposit on the property at the end of the rental period.
Marais warned potential rent-to-own buyers that they should consult an experienced estate agent, a reputable mortgage originator and the advice of an attorney should they decide to enter such an agreement. The following questions should be answered before signing the agreement:
Is the price fair given future price expectations?
What portion of the rent will be credited towards the purchase price?
Who will be responsible for rates/taxes during lease period?
Under what conditions could the rent-to-own contract be voided?
Under what conditions will the buyer be refunded any part of the option fee?
Marais also proposed that all buyers that are considering renting-to-own should first consider renting cheaply while saving for a deposit, as this might be a better option in some cases.
Buy Durbanville property
Friday, April 24, 2009
Legal Duties of Estate Agents
The information in this article is courtesy of iAfrica (An Estate Agents Legal Duties – 24 April 2009).
When selling your residential property, it is essential that you are aware of the duties of the estate agent. The agent has a responsibility towards the seller but must always be fair to the buyer. These are some other duties of an estate agent:
1. An agent must strive to achieve the highest possible price excepted by the buyer.
2. Agents must ensure that there is no conflict of interest such as selling to themselves or to friends. If so, agents must disclose this information.
3. Agents are not allowed to take any payments from the buyer to achieve a quick sale.
4. Agents are not allowed to disclose any private details about the seller especially not to help the bargaining process – unless this has been discussed.
5. An agent must submit to the clients all offers on a property including those that may have come through another agency on a shared commission basis.
6. Agents must advertise property in an honest way according to the promises made when the mandate was received.
7. Payment of rental properties must be kept up-to-date by agents and monthly statements must be send to clients if money is kept in the agent’s trust.
When selling your residential property, it is essential that you are aware of the duties of the estate agent. The agent has a responsibility towards the seller but must always be fair to the buyer. These are some other duties of an estate agent:
1. An agent must strive to achieve the highest possible price excepted by the buyer.
2. Agents must ensure that there is no conflict of interest such as selling to themselves or to friends. If so, agents must disclose this information.
3. Agents are not allowed to take any payments from the buyer to achieve a quick sale.
4. Agents are not allowed to disclose any private details about the seller especially not to help the bargaining process – unless this has been discussed.
5. An agent must submit to the clients all offers on a property including those that may have come through another agency on a shared commission basis.
6. Agents must advertise property in an honest way according to the promises made when the mandate was received.
7. Payment of rental properties must be kept up-to-date by agents and monthly statements must be send to clients if money is kept in the agent’s trust.
Wednesday, April 15, 2009
Southern Suburbs Struggling
The information in this article is courtesy of Property24 (Southern Suburbs taking a baeating - 15 April 2009).
The Southern Suburbs of Cape Town has certainly shown just how tough conditions are.
Figures show that there has been 49 sales between January and March 2008 at an average price of R6,4m against the 12 sales at an average of R3,1m for the same period this year. It also shows a 14% difference between sale price and list price.
Seeff's Upper Constantia team of Sari Raz and Christiaan Steytler explains that these figures don’t necessarily mean that price have decline but rather illustrates that less expensive properties are being sold.
Raz added that March did see 3 good sales between R4m and R7m by overseas buyers.
The Southern Suburbs of Cape Town has certainly shown just how tough conditions are.
Figures show that there has been 49 sales between January and March 2008 at an average price of R6,4m against the 12 sales at an average of R3,1m for the same period this year. It also shows a 14% difference between sale price and list price.
Seeff's Upper Constantia team of Sari Raz and Christiaan Steytler explains that these figures don’t necessarily mean that price have decline but rather illustrates that less expensive properties are being sold.
Raz added that March did see 3 good sales between R4m and R7m by overseas buyers.
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