For example, many a builder, when asked to supply a quote for renovations to a house, will tell people he is registered with the National Home Builders Registration Council (NHBRC).
He may be, but what he doesn't say is that the council only regulates the building of new homes, not renovations to existing ones, which means NHBRC registration is meaningless to someone contemplating enclosing a veranda. (Read More...)
Independent Online
Monday, November 30, 2009
Wednesday, July 15, 2009
Property market boosted by returning expats
People with investment properties in South Africa are seeing a better return not only from rentals but from ongoing drops in interest rates. For those South Africans living abroad, 77% still have some form of investment in SA - 69% have a bank account, 32% still own a house, and 29% still maintain their SA retirement annuity.
Many experts believe that the property market is starting to show green shoots of recovery which is also attracting expats. Comments John Loos, Property Strategist at FNB: “There is a recovery of sorts in the SA property market in that there seems to be a slight uptick in demand activity. However, it would be some time before this translates into national price inflation, because I believe that the oversupply of property on the market is significant and will take a while to be mopped up. I do believe that there may well have been some slight increase in expats returning home, especially from the likes of Dubai which has come under severe stress.”
A number of expats are also seeing 2010 as a fantastic investment opportunity by purchasing guest houses and hotels. With the exposure South Africa tourism will receive during the Fifa World Cup it is a fantastic opportunity to market their properties to the rest of the world. Adds du Toit: “Some of the expats may see opportunity in the hospitality industry due to the World Cup next year, and will then invest some hard currency in related properties, which will benefit this segment of the market.’’
“SA boasts phenomenal landscapes and wildlife, warm and friendly people, the ability to host world class events and fantastic business opportunities,” adds Levitt, “and there are also many opportunities associated with infrastructure developments ahead of the 2010 Soccer World Cup which is attracting expats. Those who left our shores are now realising that the grass is not always greener on the other side." (Read More..)
eProp - Alliance Group
Many experts believe that the property market is starting to show green shoots of recovery which is also attracting expats. Comments John Loos, Property Strategist at FNB: “There is a recovery of sorts in the SA property market in that there seems to be a slight uptick in demand activity. However, it would be some time before this translates into national price inflation, because I believe that the oversupply of property on the market is significant and will take a while to be mopped up. I do believe that there may well have been some slight increase in expats returning home, especially from the likes of Dubai which has come under severe stress.”
A number of expats are also seeing 2010 as a fantastic investment opportunity by purchasing guest houses and hotels. With the exposure South Africa tourism will receive during the Fifa World Cup it is a fantastic opportunity to market their properties to the rest of the world. Adds du Toit: “Some of the expats may see opportunity in the hospitality industry due to the World Cup next year, and will then invest some hard currency in related properties, which will benefit this segment of the market.’’
“SA boasts phenomenal landscapes and wildlife, warm and friendly people, the ability to host world class events and fantastic business opportunities,” adds Levitt, “and there are also many opportunities associated with infrastructure developments ahead of the 2010 Soccer World Cup which is attracting expats. Those who left our shores are now realising that the grass is not always greener on the other side." (Read More..)
eProp - Alliance Group
Monday, July 6, 2009
South African House Prices Slide Most in 23 Years
South African house prices fell the most in 23 years last month, dropping 4.4 percent from the year- earlier period, according to Absa Group Ltd., the country’s biggest mortgage lender.
The average nominal house price dropped to 924,600 rand ($115,130) as prices fell 0.5 percent in the month, Absa said in an e-mailed report today.
South Africa is in its first recession in 17 years, pushing up unemployment, slowing consumer spending and depressing house prices. The Reserve Bank has cut its benchmark interest rate five times since December, dropping it to 7.5 percent, to help revive the economy.
“Nominal house price deflation is set to continue for the rest of 2009, starting to slow down towards the end of the year,” Absa said in an e-mailed report today. “The lagged effect of lower interest rates and a gradual recovery in the economy from the second half of the year are factors which will contribute to an expected improvement in residential property market conditions from early 2010.”
House prices will probably decline about 3.5 percent this year, and by more than 12 percent after taking inflation into account, the Johannesburg-based lender said.
Absa’s house-price index is based on the average cost of a home from the mortgage applications it receives. Standard Bank Group Ltd., which uses the median price in its survey, said July 1 that house prices fell 4.9 percent in June compared with a year earlier.
By Mike Cohen
Bloomberg.com
The average nominal house price dropped to 924,600 rand ($115,130) as prices fell 0.5 percent in the month, Absa said in an e-mailed report today.
South Africa is in its first recession in 17 years, pushing up unemployment, slowing consumer spending and depressing house prices. The Reserve Bank has cut its benchmark interest rate five times since December, dropping it to 7.5 percent, to help revive the economy.
“Nominal house price deflation is set to continue for the rest of 2009, starting to slow down towards the end of the year,” Absa said in an e-mailed report today. “The lagged effect of lower interest rates and a gradual recovery in the economy from the second half of the year are factors which will contribute to an expected improvement in residential property market conditions from early 2010.”
House prices will probably decline about 3.5 percent this year, and by more than 12 percent after taking inflation into account, the Johannesburg-based lender said.
Absa’s house-price index is based on the average cost of a home from the mortgage applications it receives. Standard Bank Group Ltd., which uses the median price in its survey, said July 1 that house prices fell 4.9 percent in June compared with a year earlier.
By Mike Cohen
Bloomberg.com
Thursday, June 18, 2009
Tax wise investments
Property is a popular investment vehicle in South Africa. Where property is held as trading stock (i.e. in the case of property traders), any gain or loss on disposal would be regarded as being of a revenue nature and taxable as such. In this scenario, any expenditure relating to the property dealings may be deducted for tax purposes on the basis that it is incurred in the production of taxable income.
Where property is acquired with the intention to hold it as a long-term investment, it would constitute a capital asset in the hands of the taxpayer and fall within the capital gains tax regime. Any proceeds on disposal would accordingly be subject to capital gains tax in the year in which the asset is disposed of. As mentioned above, the base cost of the asset is essentially the acquisition cost. However, certain additions to the base cost are permitted by the legislation, for example, estate agent’s commission, transfer duty and advertising costs to find a buyer or seller.
Property remains a tax-efficient investment where the investor is prepared to hold such property for a longer period, mainly since the inclusion rate of any capital gain realised is significantly lower than thjavascript:void(0)e marginal income tax rate. (Read More..)
Published courtesy of Blue Chip magazine
Where property is acquired with the intention to hold it as a long-term investment, it would constitute a capital asset in the hands of the taxpayer and fall within the capital gains tax regime. Any proceeds on disposal would accordingly be subject to capital gains tax in the year in which the asset is disposed of. As mentioned above, the base cost of the asset is essentially the acquisition cost. However, certain additions to the base cost are permitted by the legislation, for example, estate agent’s commission, transfer duty and advertising costs to find a buyer or seller.
Property remains a tax-efficient investment where the investor is prepared to hold such property for a longer period, mainly since the inclusion rate of any capital gain realised is significantly lower than thjavascript:void(0)e marginal income tax rate. (Read More..)
Published courtesy of Blue Chip magazine
Monday, June 8, 2009
Big estate agency group goes green
One of South Africa's biggest residential property sales organisations is getting its agents to recycle and curb wasteful consumption.
Announcement
RE/MAX of Southern Africa this week announced the launch of its RE/MAX Green initiative. RE/MAX franchises in South Africa will be designated green by adhering to prescribed green practices, such as recycling and methods of curbing potential wasteful consumption.
"The RE/MAX Green program was created to help consumers utilise the expertise of ‘Green Agents' in a world that increasingly values - and needs - eco responsibility," says Peter Gilmour, Senior Vice President International Franchise Sales for RE/MAX International.
"As part of its philosophy of premier community citizenship, RE/MAX is committed to the sustainability and environmental well-being of the communities in the more than 70 countries in which its real estate professionals work and live.
Internationally hundreds of agents participating in the RE/MAX Green program have completed one of five recognised eco-accreditation programs: NAR Green, EcoBroker, LEED-Accredited Professional, Accredited Green Agent and Accredited Green Broker.
Earlier this year RE/MAX of Southern Africa received recognition from the World Wide Fund for Nature (WWF) for the role it played as a corporate supporter during Earth Hour. RE/MAX pledged its communication infrastructures and mobilized its national franchise office network to raise awareness, and encourage South Africans to switch their lights off on 28 March for an hour, as a sign of solidarity against climate change.
Eskom reported that it recorded a drop of 400 MW of electricity during this time, which confirmed the participation of 1 million South Africans.
www.realestateweb.co.za
Announcement
RE/MAX of Southern Africa this week announced the launch of its RE/MAX Green initiative. RE/MAX franchises in South Africa will be designated green by adhering to prescribed green practices, such as recycling and methods of curbing potential wasteful consumption.
"The RE/MAX Green program was created to help consumers utilise the expertise of ‘Green Agents' in a world that increasingly values - and needs - eco responsibility," says Peter Gilmour, Senior Vice President International Franchise Sales for RE/MAX International.
"As part of its philosophy of premier community citizenship, RE/MAX is committed to the sustainability and environmental well-being of the communities in the more than 70 countries in which its real estate professionals work and live.
Internationally hundreds of agents participating in the RE/MAX Green program have completed one of five recognised eco-accreditation programs: NAR Green, EcoBroker, LEED-Accredited Professional, Accredited Green Agent and Accredited Green Broker.
Earlier this year RE/MAX of Southern Africa received recognition from the World Wide Fund for Nature (WWF) for the role it played as a corporate supporter during Earth Hour. RE/MAX pledged its communication infrastructures and mobilized its national franchise office network to raise awareness, and encourage South Africans to switch their lights off on 28 March for an hour, as a sign of solidarity against climate change.
Eskom reported that it recorded a drop of 400 MW of electricity during this time, which confirmed the participation of 1 million South Africans.
www.realestateweb.co.za
Tuesday, June 2, 2009
Oversupply sinks property market
HOUSE prices are continuing to decline, due to a sizeable oversupply that has built up in the residential market, FNB said yesterday.
Its latest house price index continued to decline in May to -11.3 percent year-on-year. This represented a deterioration on the revised -9.2percent rate of year- on-year decline recorded for April.
It was also the sixth consecutive month of year-on-year decline in the house price index, FNB said.
On a month-on-month basis, the rate of deflation was -3percent in May.
The deflation was a result of oversupply, with selling due to financial pressure being a key driver of supply, FNB added. “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.
Domestic interest rates have now declined by 450 basis points since the start of rate cutting in December last year.
“This should bring some stimulus to a very credit-sensitive market such as the residential property market.
“However, unlike the 2003 aggressive interest rate cutting which took place in good global and local economic times, the current stimulus from interest rates is to a great extent offset by an economic recession which contains growth in household purchasing power,” Loos said.
As such, the expectation of nothing more than a very mild improvement in residential demand during 2009 continued, and with oversupplies still believed to exist on the market, house price deflation was expected to be around for most of 2009, Loos added.
“However, I believe that the worst year-on-year price deflation will show in the figures around mid-year, and that during the second half of the year we’ll begin to see the rate of decline subsiding,” Loos said.
He said at the Reserve Bank’s most recent interest rate meeting, governor Tito Mboweni had started to prepare the market for a possible pause in interest rate cutting, “so though all future interest rate decisions depend on how future economic events unfold, we should not expect too much in the way of interest rate cutting from here forward,” Loos said.
The Lightstone annual national house price inflation, meanwhile, dropped to -3.1percent in January based on Deeds Office transactions, according to the latest Lightstone House Price index also released yesterday.
Sapa and I-Net Bridge
www.thetimes.co.za
Its latest house price index continued to decline in May to -11.3 percent year-on-year. This represented a deterioration on the revised -9.2percent rate of year- on-year decline recorded for April.
It was also the sixth consecutive month of year-on-year decline in the house price index, FNB said.
On a month-on-month basis, the rate of deflation was -3percent in May.
The deflation was a result of oversupply, with selling due to financial pressure being a key driver of supply, FNB added. “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.
Domestic interest rates have now declined by 450 basis points since the start of rate cutting in December last year.
“This should bring some stimulus to a very credit-sensitive market such as the residential property market.
“However, unlike the 2003 aggressive interest rate cutting which took place in good global and local economic times, the current stimulus from interest rates is to a great extent offset by an economic recession which contains growth in household purchasing power,” Loos said.
As such, the expectation of nothing more than a very mild improvement in residential demand during 2009 continued, and with oversupplies still believed to exist on the market, house price deflation was expected to be around for most of 2009, Loos added.
“However, I believe that the worst year-on-year price deflation will show in the figures around mid-year, and that during the second half of the year we’ll begin to see the rate of decline subsiding,” Loos said.
He said at the Reserve Bank’s most recent interest rate meeting, governor Tito Mboweni had started to prepare the market for a possible pause in interest rate cutting, “so though all future interest rate decisions depend on how future economic events unfold, we should not expect too much in the way of interest rate cutting from here forward,” Loos said.
The Lightstone annual national house price inflation, meanwhile, dropped to -3.1percent in January based on Deeds Office transactions, according to the latest Lightstone House Price index also released yesterday.
Sapa and I-Net Bridge
www.thetimes.co.za
Tuesday, May 26, 2009
South Africa: Residential Property's Slide Continues
Johannesburg — WITH the economy forecast to contract 0,5% this year, combined with falling employment and lower disposable household income, the residential property market is expected to remain depressed until late this year.
House prices in the middle segment of the market were forecast to drop 3%-4% in nominal terms this year, despite falling interest rates, according to Absa 's latest quarterly housing review released yesterday.
Absa sectoral analyst Jacques du Toit said a further real decline in house prices was expected this year, based on projected consumer price inflation trends and declining nominal prices.
In the first quarter of this year house prices in the middle segment of the market - from 80mÂ' to 400m and up to R3,1m - for which mortgage finance was approved by Absa, declined for the first time on a year-on- year terms since late 1986.
In real terms, after adjustment for the effect of inflation, house prices in the middle segment dropped for the fifth successive quarter, slumping 3,6% in the first quarter from 2,6% in the fourth quarter of last year.
Prices in the luxury segment of the market have performed visibly better in recent quarters than those in the middle segment, where prices are declining over a wide front in nominal terms.
Thabang Mokopanele
http://allafrica.com
House prices in the middle segment of the market were forecast to drop 3%-4% in nominal terms this year, despite falling interest rates, according to Absa 's latest quarterly housing review released yesterday.
Absa sectoral analyst Jacques du Toit said a further real decline in house prices was expected this year, based on projected consumer price inflation trends and declining nominal prices.
In the first quarter of this year house prices in the middle segment of the market - from 80mÂ' to 400m and up to R3,1m - for which mortgage finance was approved by Absa, declined for the first time on a year-on- year terms since late 1986.
In real terms, after adjustment for the effect of inflation, house prices in the middle segment dropped for the fifth successive quarter, slumping 3,6% in the first quarter from 2,6% in the fourth quarter of last year.
Prices in the luxury segment of the market have performed visibly better in recent quarters than those in the middle segment, where prices are declining over a wide front in nominal terms.
Thabang Mokopanele
http://allafrica.com
Subscribe to:
Posts (Atom)
