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, 30 November 2009
Wednesday, 15 July 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, 06 July 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, 18 June 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, 08 June 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, 02 June 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, 26 May 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
Monday, 11 May 2009
Builders must get NHBRC exemption before construction starts
All potential owner builders that qualify for exemption from the NHBRC, must take note that they have to get exemption before construction starts.
If you start with construction of a newly built home without an enrolment certificate or a letter that exempts you from enrolling your home you are breaking the law and will then have to enrol your home as a late enrolment.
For more information, please visit The Facilitators FAQ's Page.
If you start with construction of a newly built home without an enrolment certificate or a letter that exempts you from enrolling your home you are breaking the law and will then have to enrol your home as a late enrolment.
For more information, please visit The Facilitators FAQ's Page.
Thursday, 07 May 2009
Steel Buildings Are Taking Off
IN just a few years the light steel frame building (LSFB) industry has grown into a useful technology. This is largely due to the efforts of the Southern African Light Steel Frame Building Association (SASFA), a division of the Southern African Institute of Steel Construction (SAISC). “Such are the advantages of this construction technology it is increasingly becoming an accepted alternative for the local building industry,” says SASFA director John Barnard.
He says the ability of practitioners to learn quickly the gamut of skills required in LSF building, including understanding overall cost and energy savings available through this building method, have added to the success of this new industry.
“Of course, with a burgeoning new construction technique one has to ensure that standards are maintained. Training is fundamental to this process,” says Barnard.
He says that while there will be several training initiatives in areas such as erection and cladding, courses for designers and builders, SASFA will concentrate initially on building inspectors - i.e. municipal and NHBRC inspectors and financial institution evaluators - to ensure they have the skills to monitor that the LSFB industry is complying with the standards set down in SASFA’s building code.
In the meantime, SASFA is in the process of rolling out an industry accreditation scheme, which will assess the four main stages of the LSFB process i.e. the LSFB system utilised e.g. Scottsdale, FrameMaster, Hayes, Howick, Mitec and Dezzo; design and manufacturing processes; steel frame erection and building completion. “We see an inextricable link between the SASFA Accreditation Scheme and our training initiative. They work hand-in-hand to ensure consistently good standards in our industry”, says Barnard.
SASFA is planning several key training programmes, which will be presented in the major centres across the country, as well as Namibia. “We are trying to provide training in all the facets to ensure that the potential of this building method is reached in Southern Africa.”
There are currently 29 South African profiling companies manufacturing light steel frames.
They have a combined annual manufacturing capacity (single shift basis) of 43 million linear metres of light steel sections, or 39 000 tons of galvanised steel per year. Some 36% of the capacity is dedicated light steel truss manufacturing facilities.
“Conservatively, this means that light steel frames can be supplied for 1.5 million sq m of LSFB structures (wall frames and trusses) and trusses only for a further 1.8 million sq m per year of floor area of building
Barnard says that because the light steel frame building offers a wide range of benefits for fast track construction logistical cost advantages and thermal efficiency, offering cost savings of up to 20% or more compared to conventional building methods, the industry is growing rapidly.
Cape Business News - Cape Town,South Africa
He says the ability of practitioners to learn quickly the gamut of skills required in LSF building, including understanding overall cost and energy savings available through this building method, have added to the success of this new industry.
“Of course, with a burgeoning new construction technique one has to ensure that standards are maintained. Training is fundamental to this process,” says Barnard.
He says that while there will be several training initiatives in areas such as erection and cladding, courses for designers and builders, SASFA will concentrate initially on building inspectors - i.e. municipal and NHBRC inspectors and financial institution evaluators - to ensure they have the skills to monitor that the LSFB industry is complying with the standards set down in SASFA’s building code.
In the meantime, SASFA is in the process of rolling out an industry accreditation scheme, which will assess the four main stages of the LSFB process i.e. the LSFB system utilised e.g. Scottsdale, FrameMaster, Hayes, Howick, Mitec and Dezzo; design and manufacturing processes; steel frame erection and building completion. “We see an inextricable link between the SASFA Accreditation Scheme and our training initiative. They work hand-in-hand to ensure consistently good standards in our industry”, says Barnard.
SASFA is planning several key training programmes, which will be presented in the major centres across the country, as well as Namibia. “We are trying to provide training in all the facets to ensure that the potential of this building method is reached in Southern Africa.”
There are currently 29 South African profiling companies manufacturing light steel frames.
They have a combined annual manufacturing capacity (single shift basis) of 43 million linear metres of light steel sections, or 39 000 tons of galvanised steel per year. Some 36% of the capacity is dedicated light steel truss manufacturing facilities.
“Conservatively, this means that light steel frames can be supplied for 1.5 million sq m of LSFB structures (wall frames and trusses) and trusses only for a further 1.8 million sq m per year of floor area of building
Barnard says that because the light steel frame building offers a wide range of benefits for fast track construction logistical cost advantages and thermal efficiency, offering cost savings of up to 20% or more compared to conventional building methods, the industry is growing rapidly.
Cape Business News - Cape Town,South Africa
Thursday, 30 April 2009
First beneficiaries move into unfinished houses
The first residents of the Refentse Low Cost Housing Project in Rietfontein have move into eight homes at the site even though the contractors are still at work completing the houses and no water or sanitation infrastructure have been installed.
According to some of the residents they were informed by the community officer of the Local Municipality of Madibeng that they could move into their houses and they told Kormorant that the municipality assisted them to move there last Saturday.
The residents said that they were the first ones to receive houses at the low cost housing project and that they had been waiting for their homes since they put their names on the beneficiary list in 2000. According to what they understood they were the first to receive houses because of the age of the beneficiary and that the position on the original list was not used to determine this.
Mostly, the residents expressed their joy at being able to move into their houses but during a tour of the two bedroom houses they indicated that although installed, the toilets are not working yet and there are no water taps or basins in the houses.
A portable toilet was placed in the area of the eight occupied houses and the residents indicated that they get water from taps which are situated approximately 100m away.
According to the residents the contractors are still working on site and indicated that they would clear the veld between the houses during this week. The tall, dry grass holds a danger of fire as the residents still make fires outside the houses to cook on.
Asked whether they needed to pay any money to be able to move in, the residents said no. This followed rumours that residents of the informal settlement were told that they could pay R30 and receive an ANC membership card which would allow them to move into the houses before the election last week.
Mr. Patrick Morathi, communication and marketing coordinator for the Local Municipality of Madibeng said in response to enquiries that although the project has not been handed over to the municipality by the contractors there are eight families occupying houses on the site.
He said that all the services have not been installed at the project yet and that the project will continue after a forensic audit by the Department of Local Government and Housing and the NHBRC.
Morathi said in all 50 houses were inspected and minor problems were found.
“The basis for allocation was to allocate houses to the most needy people but obviously there were categories identified and prioritised. We must indicate that we have 461 approved beneficiaries for the project of 167 houses. This was the result of having initially targeted 1000 and scaled down to 500 and finally 167 after objections and the Environmental Impact Assessment process,” Morathi said.
He confirmed that transport was arranged to help the families move because some of the families were relocated from Kommandonek.
Morathi said that more families will not be moved to Refentse in the near future.
“We have installed five mobile toilets for the current occupants and will extend the service as and when the need arises. As for water, we are currently providing water tankers and will extend such a service on the basis of need,” Morathi explained.
He denied that the residents were asked to pay R30 for an ANC membership card.
He said that although some people have been approved as beneficiaries the prioritisation was designed in terms of need. “Our first priority was the elderly, followed by child headed households as a result of parents passing away, then the rest will follow.
We are currently engaging developers around the Dam to accommodate low cost housing projects in their respective developments to accommodate the rest of the approved beneficiaries,” Mortahi said.
Kormorant - Hartbeespoort,South Africa
According to some of the residents they were informed by the community officer of the Local Municipality of Madibeng that they could move into their houses and they told Kormorant that the municipality assisted them to move there last Saturday.
The residents said that they were the first ones to receive houses at the low cost housing project and that they had been waiting for their homes since they put their names on the beneficiary list in 2000. According to what they understood they were the first to receive houses because of the age of the beneficiary and that the position on the original list was not used to determine this.
Mostly, the residents expressed their joy at being able to move into their houses but during a tour of the two bedroom houses they indicated that although installed, the toilets are not working yet and there are no water taps or basins in the houses.
A portable toilet was placed in the area of the eight occupied houses and the residents indicated that they get water from taps which are situated approximately 100m away.
According to the residents the contractors are still working on site and indicated that they would clear the veld between the houses during this week. The tall, dry grass holds a danger of fire as the residents still make fires outside the houses to cook on.
Asked whether they needed to pay any money to be able to move in, the residents said no. This followed rumours that residents of the informal settlement were told that they could pay R30 and receive an ANC membership card which would allow them to move into the houses before the election last week.
Mr. Patrick Morathi, communication and marketing coordinator for the Local Municipality of Madibeng said in response to enquiries that although the project has not been handed over to the municipality by the contractors there are eight families occupying houses on the site.
He said that all the services have not been installed at the project yet and that the project will continue after a forensic audit by the Department of Local Government and Housing and the NHBRC.
Morathi said in all 50 houses were inspected and minor problems were found.
“The basis for allocation was to allocate houses to the most needy people but obviously there were categories identified and prioritised. We must indicate that we have 461 approved beneficiaries for the project of 167 houses. This was the result of having initially targeted 1000 and scaled down to 500 and finally 167 after objections and the Environmental Impact Assessment process,” Morathi said.
He confirmed that transport was arranged to help the families move because some of the families were relocated from Kommandonek.
Morathi said that more families will not be moved to Refentse in the near future.
“We have installed five mobile toilets for the current occupants and will extend the service as and when the need arises. As for water, we are currently providing water tankers and will extend such a service on the basis of need,” Morathi explained.
He denied that the residents were asked to pay R30 for an ANC membership card.
He said that although some people have been approved as beneficiaries the prioritisation was designed in terms of need. “Our first priority was the elderly, followed by child headed households as a result of parents passing away, then the rest will follow.
We are currently engaging developers around the Dam to accommodate low cost housing projects in their respective developments to accommodate the rest of the approved beneficiaries,” Mortahi said.
Kormorant - Hartbeespoort,South Africa
Tuesday, 21 April 2009
Centurion drawing first-time buyers
Centurion's plethora of sectional title properties has been drawing a steady stream of buy-to-let investors and first-time buyers in recent years.
Paul Greyling, principal of the local Chas Everitt International franchise, says many are now coming back on to the market at good prices because the rentals that can be achieved do not cover the monthly home loan instalments at current interest rates.
Four residential nodes are currently proving particularly popular with the young set, he says, including the lifestyle estates of Celtisdal and Brooklyn which offer one and two-bedroom units ranging in price from R480k to R800k. Carports and pools come standard and Brooklyn residents also have the use of a tennis court and clubhouse.
Thatchfield estate and the suburb of Eldoraigne have also become fashionable. Units on offer are larger at prices ranging between R800k and R2m.
"Some developers have also now realised that there is demand for bachelor style accommodation, and open-plan apartments catering to this market are starting to make an appearance, at prices from around R400k," says Greyling.
However, he advises that those who want to get on to the property ladder do need to be well-prepared financially. "The majority of banks now require a deposit of at least 10% and on top of that there are transfer costs, which means you need to have quite a large amount of cash on hand.
"Banks also need to know that you can afford your bond and they prefer that your instalment does not absorb more than a third of your monthly income. So if you want to purchase a property for R500k, with a monthly bond repayment of R6k, you would need to prove household earnings of about R18k pm to qualify for a home loan."
And then, he says, potential buyers need to budget for rates and taxes as well as sectional title levies. In Centurion, rates range between R300 and R600 a month depending on the area. Levies range from as little as R300 a month to as much as R1k in some older developments.
www.property24.com
Paul Greyling, principal of the local Chas Everitt International franchise, says many are now coming back on to the market at good prices because the rentals that can be achieved do not cover the monthly home loan instalments at current interest rates.
Four residential nodes are currently proving particularly popular with the young set, he says, including the lifestyle estates of Celtisdal and Brooklyn which offer one and two-bedroom units ranging in price from R480k to R800k. Carports and pools come standard and Brooklyn residents also have the use of a tennis court and clubhouse.
Thatchfield estate and the suburb of Eldoraigne have also become fashionable. Units on offer are larger at prices ranging between R800k and R2m.
"Some developers have also now realised that there is demand for bachelor style accommodation, and open-plan apartments catering to this market are starting to make an appearance, at prices from around R400k," says Greyling.
However, he advises that those who want to get on to the property ladder do need to be well-prepared financially. "The majority of banks now require a deposit of at least 10% and on top of that there are transfer costs, which means you need to have quite a large amount of cash on hand.
"Banks also need to know that you can afford your bond and they prefer that your instalment does not absorb more than a third of your monthly income. So if you want to purchase a property for R500k, with a monthly bond repayment of R6k, you would need to prove household earnings of about R18k pm to qualify for a home loan."
And then, he says, potential buyers need to budget for rates and taxes as well as sectional title levies. In Centurion, rates range between R300 and R600 a month depending on the area. Levies range from as little as R300 a month to as much as R1k in some older developments.
www.property24.com
An eye for luxury property
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.
The Times - Johannesburg, Gauteng, South Africa
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.
The Times - Johannesburg, Gauteng, South Africa
Property sector plans post-election lekgotla
South Africa’s fast-changing political environment and its impact on the country’s economic outlook would receive attention at the South African Property Owners Association’s (Sapoa’s) forty-first International Convention and Property Exhibition, to be held in Sandton in early June.
It was particularly keen to understand whether there would be a so-called “shift to the left” and a rise in “antibusiness sentiment”, which would be the theme of an input by Free Market Foundation executive director Leon Louw.
Further, Redefine Income Fund CEO Brian Azizollahoff would debate the question of "business unusual” as part of the convention’s scheduled panel discussion on South Africa’s economic outlook.
This would be preceded by an economic trend analysis presented by economist JP Landman.
Various panels would also discuss other challenges facing the property sector in Africa, as well as the global outlook for the property sector.
Creamer Media's Engineering News - Garden View, South Africa
Terence Creamer
It was particularly keen to understand whether there would be a so-called “shift to the left” and a rise in “antibusiness sentiment”, which would be the theme of an input by Free Market Foundation executive director Leon Louw.
Further, Redefine Income Fund CEO Brian Azizollahoff would debate the question of "business unusual” as part of the convention’s scheduled panel discussion on South Africa’s economic outlook.
This would be preceded by an economic trend analysis presented by economist JP Landman.
Various panels would also discuss other challenges facing the property sector in Africa, as well as the global outlook for the property sector.
Creamer Media's Engineering News - Garden View, South Africa
Terence Creamer
Sunday, 19 April 2009
Timing is the key to property market killing
Auction house boss says strike now for the housing bargain of a lifetime, writes David Pincus
A question doing the rounds, particularly among those who have finance or can raise it, is: does one buy residential property now that prices have fallen so much? They have been declining since the middle of 2008 and dropped 4.2% year-on-year in March, according to mortgage originator ooba, formerly MortgageSA.
It is not an easy decision. Many believe the price of residential property will continue to drop for quite a while, and many others believe the market is close to bottoming.
Rael Levitt of the Alliance Group, which will auction more than 600 properties in April and May, believes the time to buy is now.
He said: “In the last downturn banks couldn’t give away distressed properties. They had to keep them on their books as properties in possession. But unprecedented volumes of houses are now hitting auction floors, and many buyers who have access to financing see the current period as a window of opportunity and are picking up properties at low prices.
“They’re getting high rentals at the moment, which means that while they wait for the market to rise their purchases are turning into great investments.”
But when will the market rise? Levitt believes it may start to bottom late in 2009, “which means there is no better time than now to pick up real estate at lows that haven’t been experienced in South Africa in decades”.
Your trusty calculator may help to provide the answer: if the market turns up in, say, September, it means those who delay purchasing until then will buy for less, but will lose four or five months’ rental.
Levitt will not find estate agents clamouring to join his fan club when he says buying on auction is the way to go.
“You have to look at international trends to see that, in sharp contrast to the snail’s pace of private transactions, property going under the gavel is increasing at an exponential rate,” he says.
But, Levitt concedes, “buying on auction is often misunderstood, and can be daunting”.
From houses to horses: if you are into horse breeding and have been toying with the idea of setting yourself up in the Cape, the ClareMart Auction Group’s sale of the more than 300ha Oaklands Farm near Wellington at midday on Friday should be of interest to you.
It has everything, such as stabling, foaling barns, paddocks, stud facilities, two manager’s houses, as well as river and borehole water.
Phone Andrew Koch on 082-494-9631 to find out how to get to the sale.
Inland dwellers toying with relocating to Jeffreys Bay, or having a holiday home there, could consider the three-bedroom home in Hoepoe Street, Aston Bay, “with lovely views and a self-contained flat with a separate entrance” being auctioned by Colliers International Auctions tomorrow at midday.
It is labelled a bank auction, which may mean it’s a repossessed home, so it may go for a reasonable price.
On Tuesday at 10.30am Park Village Auctions will start disposing of plant and equipment from the liquidated Masingita Mining and Minerals of SA at Jan van der Merwe’s farm, 121km from Last Stop on Brits along the R511.
The equipment includes a dump truck, a front-end loader, a bulldozer, two shovel excavators and a special purpose flammable liquid trailer.
The new car market is taking strain but as prices achieved at auctions show, the used-car market is faring better.
It is bolstered by moneyed folk who buy what they want for less than if they were to buy it new — but not at give-away prices.
Last week Park Village Auctions knocked down a 2007 Lamborghini Gallardo for R2.375-million. That’s more than twice the R1.06-million it got for a four-bedroom (all en-suite) house with four carports, and a face-brick building with nine bedrooms, all en suite, on the same property.
And, as Aucor showed at its used truck sale in Bapsfontein last Tuesday, buyers are prepared to pay for late-model trucks built by reputable manufacturers that have been well maintained.
A 2008 Freightliner Argosy CAT C15-515 6x4 Horse went for R770000 and a 2007 model of the same vehicle went for R610000.
The Times - Johannesburg, Gauteng, South Africa
A question doing the rounds, particularly among those who have finance or can raise it, is: does one buy residential property now that prices have fallen so much? They have been declining since the middle of 2008 and dropped 4.2% year-on-year in March, according to mortgage originator ooba, formerly MortgageSA.
It is not an easy decision. Many believe the price of residential property will continue to drop for quite a while, and many others believe the market is close to bottoming.
Rael Levitt of the Alliance Group, which will auction more than 600 properties in April and May, believes the time to buy is now.
He said: “In the last downturn banks couldn’t give away distressed properties. They had to keep them on their books as properties in possession. But unprecedented volumes of houses are now hitting auction floors, and many buyers who have access to financing see the current period as a window of opportunity and are picking up properties at low prices.
“They’re getting high rentals at the moment, which means that while they wait for the market to rise their purchases are turning into great investments.”
But when will the market rise? Levitt believes it may start to bottom late in 2009, “which means there is no better time than now to pick up real estate at lows that haven’t been experienced in South Africa in decades”.
Your trusty calculator may help to provide the answer: if the market turns up in, say, September, it means those who delay purchasing until then will buy for less, but will lose four or five months’ rental.
Levitt will not find estate agents clamouring to join his fan club when he says buying on auction is the way to go.
“You have to look at international trends to see that, in sharp contrast to the snail’s pace of private transactions, property going under the gavel is increasing at an exponential rate,” he says.
But, Levitt concedes, “buying on auction is often misunderstood, and can be daunting”.
From houses to horses: if you are into horse breeding and have been toying with the idea of setting yourself up in the Cape, the ClareMart Auction Group’s sale of the more than 300ha Oaklands Farm near Wellington at midday on Friday should be of interest to you.
It has everything, such as stabling, foaling barns, paddocks, stud facilities, two manager’s houses, as well as river and borehole water.
Phone Andrew Koch on 082-494-9631 to find out how to get to the sale.
Inland dwellers toying with relocating to Jeffreys Bay, or having a holiday home there, could consider the three-bedroom home in Hoepoe Street, Aston Bay, “with lovely views and a self-contained flat with a separate entrance” being auctioned by Colliers International Auctions tomorrow at midday.
It is labelled a bank auction, which may mean it’s a repossessed home, so it may go for a reasonable price.
On Tuesday at 10.30am Park Village Auctions will start disposing of plant and equipment from the liquidated Masingita Mining and Minerals of SA at Jan van der Merwe’s farm, 121km from Last Stop on Brits along the R511.
The equipment includes a dump truck, a front-end loader, a bulldozer, two shovel excavators and a special purpose flammable liquid trailer.
The new car market is taking strain but as prices achieved at auctions show, the used-car market is faring better.
It is bolstered by moneyed folk who buy what they want for less than if they were to buy it new — but not at give-away prices.
Last week Park Village Auctions knocked down a 2007 Lamborghini Gallardo for R2.375-million. That’s more than twice the R1.06-million it got for a four-bedroom (all en-suite) house with four carports, and a face-brick building with nine bedrooms, all en suite, on the same property.
And, as Aucor showed at its used truck sale in Bapsfontein last Tuesday, buyers are prepared to pay for late-model trucks built by reputable manufacturers that have been well maintained.
A 2008 Freightliner Argosy CAT C15-515 6x4 Horse went for R770000 and a 2007 model of the same vehicle went for R610000.
The Times - Johannesburg, Gauteng, South Africa
South Africa's slums grow, despite housing drive
CAPE TOWN (AFP) — Even as the government has built millions of homes since apartheid ended, the shantytowns keep growing, turning housing into one of the key issues in general elections due Wednesday.
Under apartheid, blacks had been forced to live on the edge of cities, where overcrowded and poor slums grew.
Elizabeth Toll has a million dollar view.
But as the sun dips behind the mountains enclosing the picturesque cove where she lives, she shivers inside her tiny wooden shack, the raging wind whistling through her corrugated iron roof.
Above, more shacks balance precariously against the mountain, just a stone's throw from a popular tourist spot outside Cape Town.
The 49-year-old has lived on this prime patch of land for 15 years, fought a legal battle to avoid eviction, and is still "waiting, waiting, waiting" for a house from government.
"I applied many years ago, but nothing has happened. I haven't given up hope," she says, coughing with a cold as she clutches a small worn slip with a reference number and a housing department stamp.
Toll is one of millions of South Africans still living in shacks.
Kailash Bhana, chief executive of the Development Action Group (DAG), a housing advocacy group, says that while the government has built an impressive 2.8 million houses in 15 years, the situation is still dire.
"Overall the South African government has performed in terms of numbers. No one can deny that given the backlog that they started off with. It is the quality of the housing and the access to services that is being questioned."
Critics argue that the government's housing scheme has reinforced apartheid-era urban planning, keeping the poor on cheap land in inferior houses far from urban employment, schools, healthcare and other services.
Moegsien Hendricks, the group's programme manager, warned South Africa could end up with giant slums such as those in India and Latin America.
"All the evidence is there to suggest we are on our way to having mega slums," he said.
Itumeleng Kotsoane, director general of the housing department, told AFP only 1.1 million South African families now live in shacks, but DAG figures show the backlog growing at 200,000 households a year.
Kotsoane admits that the government's initial drive to build a million houses in only five years resulted in shoddy workmanship and poor planning.
"Before we were looking at numbers, now we are looking at housing opportunities," he told AFP, saying policy had shifted to creating better neighbourhoods and discouraging urban sprawl.
Rising property prices are one of the main challenges, forcing even teachers and nurses to live in informal settlements as they cannot afford to rent close to the city.
"Unless the state intervenes in the land and property market it is never going to meet the backlog," said Hendricks.
A small community 40 kilometres (25 miles) outside of Cape Town in the vast dusty expanse called Mitchells Plain are living in houses brightly painted in red, pink, yellow, and blue after 17 years on housing waiting lists.
But the numbers of people milling around in the heat of the day show the high level of unemployment, with many unable to afford the 15 rand (1.60 dollar, 1.28 euro) taxi fare into the city to search for work.
Already graffitied expletives mark the walls of the new community centre, theft is rife and single mothers with up to seven small children live on their own with no income.
"The South African housing scheme is unsustainable outside a broader economic strategy. People live beyond housing," said Aaron Hobongwana, a development specialist.
"Even if people don't have permanent jobs, if they lived in the CBD they could wash someone's car ... It's a vicious cycle."
AFP
Under apartheid, blacks had been forced to live on the edge of cities, where overcrowded and poor slums grew.
Elizabeth Toll has a million dollar view.
But as the sun dips behind the mountains enclosing the picturesque cove where she lives, she shivers inside her tiny wooden shack, the raging wind whistling through her corrugated iron roof.
Above, more shacks balance precariously against the mountain, just a stone's throw from a popular tourist spot outside Cape Town.
The 49-year-old has lived on this prime patch of land for 15 years, fought a legal battle to avoid eviction, and is still "waiting, waiting, waiting" for a house from government.
"I applied many years ago, but nothing has happened. I haven't given up hope," she says, coughing with a cold as she clutches a small worn slip with a reference number and a housing department stamp.
Toll is one of millions of South Africans still living in shacks.
Kailash Bhana, chief executive of the Development Action Group (DAG), a housing advocacy group, says that while the government has built an impressive 2.8 million houses in 15 years, the situation is still dire.
"Overall the South African government has performed in terms of numbers. No one can deny that given the backlog that they started off with. It is the quality of the housing and the access to services that is being questioned."
Critics argue that the government's housing scheme has reinforced apartheid-era urban planning, keeping the poor on cheap land in inferior houses far from urban employment, schools, healthcare and other services.
Moegsien Hendricks, the group's programme manager, warned South Africa could end up with giant slums such as those in India and Latin America.
"All the evidence is there to suggest we are on our way to having mega slums," he said.
Itumeleng Kotsoane, director general of the housing department, told AFP only 1.1 million South African families now live in shacks, but DAG figures show the backlog growing at 200,000 households a year.
Kotsoane admits that the government's initial drive to build a million houses in only five years resulted in shoddy workmanship and poor planning.
"Before we were looking at numbers, now we are looking at housing opportunities," he told AFP, saying policy had shifted to creating better neighbourhoods and discouraging urban sprawl.
Rising property prices are one of the main challenges, forcing even teachers and nurses to live in informal settlements as they cannot afford to rent close to the city.
"Unless the state intervenes in the land and property market it is never going to meet the backlog," said Hendricks.
A small community 40 kilometres (25 miles) outside of Cape Town in the vast dusty expanse called Mitchells Plain are living in houses brightly painted in red, pink, yellow, and blue after 17 years on housing waiting lists.
But the numbers of people milling around in the heat of the day show the high level of unemployment, with many unable to afford the 15 rand (1.60 dollar, 1.28 euro) taxi fare into the city to search for work.
Already graffitied expletives mark the walls of the new community centre, theft is rife and single mothers with up to seven small children live on their own with no income.
"The South African housing scheme is unsustainable outside a broader economic strategy. People live beyond housing," said Aaron Hobongwana, a development specialist.
"Even if people don't have permanent jobs, if they lived in the CBD they could wash someone's car ... It's a vicious cycle."
AFP
Tuesday, 14 April 2009
On Verge of Penetrating SA Housing Market
WINDHOEK – A top official of the National Home Builders Registration Council (NHBRC) in South Africa recently held intense discussions with a Namibian construction company, Trans Atlantic Enterprises, to enhance its chances of formally operating and competing in the housing construction industry in the neighbouring country.
Dr Jeffery Mahachi, executive director of Technical and IT in the NHBRC in Johannesburg, held fruitful discussions with Heinrich Schroeder, founder of Trans Atlantic Enterprises, and James Arm, Kavango Block Brick marketing manager in the capital.
“Discussions were held to streamline and finalise acceptance of our company’s innovative Kavango Block Brick construction system to fit in with the South African National Building Regulations,” said Heinrich Schroeder.
The NHBRC, which provides a 5-year warranty against housing structural defects, is a South African legislative statutory body with a mandate to regulate the home building industry and to protect the housing consumer.
“To us NHBRC approval will open many doors in the building industry as financial institutions would gladly finance housing construction projects using the Kavango Block Brick system. This in effect will mean that our building system will comply with the stringent quality control and proven accepted building standards specified by the National Building Regulations,” said James Arm.
It is a regulation in South Africa that all homebuilders are NHBRC registered prior to delivering domestic housing.
“The Kavango Block Brick has received major interest and recognition from South African communities over the past few years. Our company is currently finalising an application for NHBRC approval in order to deliver housing in South Africa. We are confident that final approval will be issued in the near future, considered to be a milestone for our Namibian company. This will allow us to compete across our border in South Africa. It is my opinion that the time is set for a Namibian company to export its technology to SADC, making a significant contribution towards addressing the housing backlog in the SADC Region,” said Schroeder.
According to Arm, Kavango Block Brick has achieved a major milestone during the past six months, the completion of a Kavango Block Brick house near Cape Town for public viewing.
“Further projects the company will be involved with include the ABSA/NHBRC International Housing Innovation and Sustainable Energy Efficiency competition to take place in the Western Cape, and participation in this year’s Southern African Housing Foundation Innovative show village in Swakopmund in July,” said Arm.
New Era - Windhoek, Namibia
Frederick Philander
Dr Jeffery Mahachi, executive director of Technical and IT in the NHBRC in Johannesburg, held fruitful discussions with Heinrich Schroeder, founder of Trans Atlantic Enterprises, and James Arm, Kavango Block Brick marketing manager in the capital.
“Discussions were held to streamline and finalise acceptance of our company’s innovative Kavango Block Brick construction system to fit in with the South African National Building Regulations,” said Heinrich Schroeder.
The NHBRC, which provides a 5-year warranty against housing structural defects, is a South African legislative statutory body with a mandate to regulate the home building industry and to protect the housing consumer.
“To us NHBRC approval will open many doors in the building industry as financial institutions would gladly finance housing construction projects using the Kavango Block Brick system. This in effect will mean that our building system will comply with the stringent quality control and proven accepted building standards specified by the National Building Regulations,” said James Arm.
It is a regulation in South Africa that all homebuilders are NHBRC registered prior to delivering domestic housing.
“The Kavango Block Brick has received major interest and recognition from South African communities over the past few years. Our company is currently finalising an application for NHBRC approval in order to deliver housing in South Africa. We are confident that final approval will be issued in the near future, considered to be a milestone for our Namibian company. This will allow us to compete across our border in South Africa. It is my opinion that the time is set for a Namibian company to export its technology to SADC, making a significant contribution towards addressing the housing backlog in the SADC Region,” said Schroeder.
According to Arm, Kavango Block Brick has achieved a major milestone during the past six months, the completion of a Kavango Block Brick house near Cape Town for public viewing.
“Further projects the company will be involved with include the ABSA/NHBRC International Housing Innovation and Sustainable Energy Efficiency competition to take place in the Western Cape, and participation in this year’s Southern African Housing Foundation Innovative show village in Swakopmund in July,” said Arm.
New Era - Windhoek, Namibia
Frederick Philander
Friday, 10 April 2009
Couple win gruelling case against builder
A GRUELLING civil court case between a couple from Gordon's Bay and their builder ended this week after eight years. Builder Pierre Kotze was instructed to pay damages after his work was found to be sub-standard and unsafe.
Mr Kotze started work on alterations to the Solomons' multi-storey house against the mountainside in Gordon's Bay in January 2001. The contract ran late and Mr Kotze's company was eventually ordered off the site after a consulting engineer told the Solomons the standard of workmanship was poor and unsafe.
In his verdict, Mr Van Reenen dealt with a number of issues relating to the dispute, among them Mr Kotze's claim to the Solomons that he was registered with the National Home Builder's Registration Council (NHBRC). The magistrate said that when challenged in court, Mr Kotze was at a loss to confirm this.
Mr Van Reenen said he was particularly impressed by the testimony of an expert witness for the Solomons, whose own report in his capacity as consulting civil engineer, had condemned the builder's work.
As for Mr Kotze's expert witness, engineer Lourens van der Westhuizen, the magistrate said he himself had conceded the workmanship had been poor, lending support to the plaintiff's case.
Mr Van Reenen did not agree with Mr Kotze's attorney that Mrs Solomon had been an untrustworthy witness and said Mr Solomon's e-mail communication to the builder had been "clearly diplomatic, even though he was not happy [with the state of affairs]"."He wanted to keep Mr Kotze focused on the project," Mr Van Reenen said, adding that it was a pity the Solomon's offer that the dispute be taken to arbitration had not gone ahead. "This would have saved much time and money."
The magistrate said Mr Kotze had been an aggressive witness and that on numerous occasions had been instructed in court to contain his temper.
"At times when [the Solomon's attorney Ludolph Joubert] asserted Mr Kotze had contradicted himself, he simply refused to answer the questions.
"One of the problems here was that I believe Mr Kotze underquoted on the project and realised mid-way into the work that he had done himself in," Mr Van Reenen said. "Mr Kotze was clearly not up to the job."
In an unrelated case, an investigation is underway into the questionable tactics of a builder, who operates in the Helderberg and Stellenbosch area.
He is notorious for not showing up after a deposit has been paid into his banking account, and because the work is of such bad quality - often the result that clients chase him away. The senior public prosecutor requires more evidence for a successful prosecution. It is believed that several clients have become victims of this man. Anyone who believes they've been a victim, is requested to phone Leon Alhadeff on (021) 557-8669 or (021) 556-4690.
www.news24.com
Clifford Roberts
Mr Kotze started work on alterations to the Solomons' multi-storey house against the mountainside in Gordon's Bay in January 2001. The contract ran late and Mr Kotze's company was eventually ordered off the site after a consulting engineer told the Solomons the standard of workmanship was poor and unsafe.
In his verdict, Mr Van Reenen dealt with a number of issues relating to the dispute, among them Mr Kotze's claim to the Solomons that he was registered with the National Home Builder's Registration Council (NHBRC). The magistrate said that when challenged in court, Mr Kotze was at a loss to confirm this.
Mr Van Reenen said he was particularly impressed by the testimony of an expert witness for the Solomons, whose own report in his capacity as consulting civil engineer, had condemned the builder's work.
As for Mr Kotze's expert witness, engineer Lourens van der Westhuizen, the magistrate said he himself had conceded the workmanship had been poor, lending support to the plaintiff's case.
Mr Van Reenen did not agree with Mr Kotze's attorney that Mrs Solomon had been an untrustworthy witness and said Mr Solomon's e-mail communication to the builder had been "clearly diplomatic, even though he was not happy [with the state of affairs]"."He wanted to keep Mr Kotze focused on the project," Mr Van Reenen said, adding that it was a pity the Solomon's offer that the dispute be taken to arbitration had not gone ahead. "This would have saved much time and money."
The magistrate said Mr Kotze had been an aggressive witness and that on numerous occasions had been instructed in court to contain his temper.
"At times when [the Solomon's attorney Ludolph Joubert] asserted Mr Kotze had contradicted himself, he simply refused to answer the questions.
"One of the problems here was that I believe Mr Kotze underquoted on the project and realised mid-way into the work that he had done himself in," Mr Van Reenen said. "Mr Kotze was clearly not up to the job."
In an unrelated case, an investigation is underway into the questionable tactics of a builder, who operates in the Helderberg and Stellenbosch area.
He is notorious for not showing up after a deposit has been paid into his banking account, and because the work is of such bad quality - often the result that clients chase him away. The senior public prosecutor requires more evidence for a successful prosecution. It is believed that several clients have become victims of this man. Anyone who believes they've been a victim, is requested to phone Leon Alhadeff on (021) 557-8669 or (021) 556-4690.
www.news24.com
Clifford Roberts
Wednesday, 25 March 2009
Rate cuts not only focus - Mboweni
As he cut the Reserve Bank's official repo rate by a full percentage point yesterday, governor Tito Mboweni said: "The world has changed radically." He warned: "Nobody must think the cure for the rapidly changing global and domestic situation is just monetary policy."
Pressed on how quickly interest rates might fall, he said South Africa needed more than monetary and fiscal stimulus.
"There is a danger that in the current debate many countries might forget one of the critical issues confronting economic policy is structural change. It would be folly for us in South Africa to forget that we have a lot of work to do in terms of industrial policy and focus only on the financial market crisis."
Mboweni reported that South Africa's current account deficit had fallen to 5.8 percent of gross domestic product (GDP) in the fourth quarter from a revised 7.8 percent in the third. The deficit - the gap between export revenue and import costs - is the lowest since the third quarter of 2006, when it was 5.5 percent. It averaged 7.4 percent last year, reaching a quarterly peak of 9.2 percent in the first quarter.
Mboweni warned, however, that the R17.4 billion trade deficit in January was a sign that the fourth-quarter improvement might not last.
Currency traders paid more attention to the warning than the fourth-quarter figure. After initially strengthening, the rand lost ground to close at R9.4625 to the dollar.
Jeff Gable, the head of research at Absa Capital, said that if the contraction in the current account deficit continued, the risks to the rand would be much reduced.
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The cut in the bank's repo rate to 9.5 percent brought relief to hard-pressed consumers as benchmark prime and mortgage rates fell to 13 percent from a peak of 15.5 percent in December. For a home owner who had borrowed R1 million, it will cut the monthly mortgage repayment by R719 to R11 716. Since rate cuts started in December the monthly repayment on a R1 million loan has fallen by R1 823.
John Loos, a property strategist at First National Bank, estimated the cost of servicing debt at about 11.7 percent of household income, "based on the assumption that the average interest rate on all loans is prime rate and average term of loan is 10 years". However, if capital repayments were included, "the ratio rises to nearly 15 percent".
Mboweni warned the public not to assume that the increase in monetary policy committee meetings from once every two months to once a month meant rates would be cut at each meeting. He again referred to the widening in the output gap - the difference between the potential and the actual output of the economy.
South Africa has 4.5 percent potential for growth and the economy shrank nearly 2 percent in the fourth quarter of last year. In the circumstances, pressure on inflation is much less than when actual growth was more than 5 percent.
It will need cuts of a further 2.5 percentage points to take consumers back to the start of the rate rising cycle in June 2006. Even then, it will be quite some time before consumers recover their confidence and resume spending.
www.busrep.co.za
Ethel Hazelhurst
Pressed on how quickly interest rates might fall, he said South Africa needed more than monetary and fiscal stimulus.
"There is a danger that in the current debate many countries might forget one of the critical issues confronting economic policy is structural change. It would be folly for us in South Africa to forget that we have a lot of work to do in terms of industrial policy and focus only on the financial market crisis."
Mboweni reported that South Africa's current account deficit had fallen to 5.8 percent of gross domestic product (GDP) in the fourth quarter from a revised 7.8 percent in the third. The deficit - the gap between export revenue and import costs - is the lowest since the third quarter of 2006, when it was 5.5 percent. It averaged 7.4 percent last year, reaching a quarterly peak of 9.2 percent in the first quarter.
Mboweni warned, however, that the R17.4 billion trade deficit in January was a sign that the fourth-quarter improvement might not last.
Currency traders paid more attention to the warning than the fourth-quarter figure. After initially strengthening, the rand lost ground to close at R9.4625 to the dollar.
Jeff Gable, the head of research at Absa Capital, said that if the contraction in the current account deficit continued, the risks to the rand would be much reduced.
Click here!
The cut in the bank's repo rate to 9.5 percent brought relief to hard-pressed consumers as benchmark prime and mortgage rates fell to 13 percent from a peak of 15.5 percent in December. For a home owner who had borrowed R1 million, it will cut the monthly mortgage repayment by R719 to R11 716. Since rate cuts started in December the monthly repayment on a R1 million loan has fallen by R1 823.
John Loos, a property strategist at First National Bank, estimated the cost of servicing debt at about 11.7 percent of household income, "based on the assumption that the average interest rate on all loans is prime rate and average term of loan is 10 years". However, if capital repayments were included, "the ratio rises to nearly 15 percent".
Mboweni warned the public not to assume that the increase in monetary policy committee meetings from once every two months to once a month meant rates would be cut at each meeting. He again referred to the widening in the output gap - the difference between the potential and the actual output of the economy.
South Africa has 4.5 percent potential for growth and the economy shrank nearly 2 percent in the fourth quarter of last year. In the circumstances, pressure on inflation is much less than when actual growth was more than 5 percent.
It will need cuts of a further 2.5 percentage points to take consumers back to the start of the rate rising cycle in June 2006. Even then, it will be quite some time before consumers recover their confidence and resume spending.
www.busrep.co.za
Ethel Hazelhurst
Monday, 16 February 2009
House prices: dipping or diving?
"South Africa is now joining an international landslide in this sector". That was the stark warning about the country's residential property market, issued by the Alliance Group's chief executive Rael Levitt this week after the release of his company's Distressed Asset Index results.
But estate agents have been issuing statements, suggesting we are not far from the bottom of the cycle. Who is right? Should you buy now?
House prices "diving" - the auctioneer's view
Home repossessions, insolvencies and distressed residential property sales "jumped alarmingly" in the last quarter of 2008, Levitt notes.
He says the residential property market is now in the third quarter of a technical recession. The index, which tracks various distressed asset classes, shows that the residential property market is in a deepening recession, house prices are continuing to fall and interest rates cuts are having a muted effect on mortgage arrears.
"Despite sunny optimism from many residential agencies, the reality of the housing market is that it is going through a startling downward correction," he says.
Levitt says housing price deflation is being fuelled by banks that are reassessing their exposure to the home loans market and being cautious in granting new mortgage loans.
"As bad debts spiral, banks are writing down their balance sheets and have made access to new home loan financing as tight as was last experienced in the early 1980s. There is little comfort to be taken from the current raft of available figures, with a shrinking economy, rising unemployment and falling house prices," says Levitt.
The Alliance Group believes negative housing equity - where your home is worth less than you owe on it - is now most probably at 1 in 15 South African homes.
"Those who are in mortgage arrears and are in the position where their outstanding finance is above their house's current market value and they are caught in a debt trap. Many people are sadly trapped in a home worth less than the loan they took out to pay for it," says Levitt.
The Alliance Group Distressed Asset Index tracks mortgage stress, which it has defined as mortgage holders who have been in arrears for two months or less. Mortgage stress has sharply increased from 75 000 in the third quarter of 2008 to 130 000 in the last quarter of the year.
"The rapid escalation of those in mortgage stress has picked up pace into 2009 despite interest rate cuts and we expect some very poor results in the first quarter of this year". More concerning, says Levitt, is severe mortgage stress where bondholders are over four months in arrears and likely to lose their homes. Severe mortgage stress catapulted from 8 000 in the second quarter of 2008 to over 35 000 in the last quarter.
Levitt says: "Despite a downward trend in interest rates, we are seeing severe mortgage stress continue to grow. Currently there are approximately 1 200 houses per month which are being sold forcibly through legal channels which include sales in execution, insolvency sales and banks' voluntary distressed sales channels.
"One of the positive indicators that the residential property market is still active is that buying activity of distressed houses has surged. 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. 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."
According to Levitt, the only factor that can alleviate severe mortgage stress will be aggressive interest rate cutting. "The Reserve bank will have to follow international central banks in applying far more severe rate cutting. What we have seen to date from their Monetary Policy Committee is too re-active and too slow. Financially distressed South African households are crying out for significant interest rate cuts and while the Reserve Bank concerns itself with targeting inflation, many families are simply interested in targeting to retain a roof over their heads".
Unfortunately interest rates cuts are having a limited effect on property values, says Levitt, who points to the UK and USA, where interest rates are heading towards zero yet house repossessions have remained at historic levels.
Internationally distressed housing markets have continued to grow and are fuelled by a collapse of household balance sheets and the inability to raise new financing. According to Levitt, over the last two decades, South Africans have become used to recessions but these have been alleviated by reductions in interest rates which have created credit-induced spending and caused house prices to grow.
"But this recession is different", says Levitt. "With a triple whammy of a deepening global recession, job losses and a constrained financial sector, this downturn is differentiated from previous forms which were largely interest rate-driven".
"Worryingly, the knock-on effect of a housing market in recession is the inevitable cutback in households which are rapidly cutting back on consumption and the demand for new housing". There has also been a sharp spike in company liquidations of residential property developments and allied services. "Many residential property developments are in real threat of hitting the wall and recently we have seen liquidations of well known property developers which cannot sustain themselves".
"Throughout most of last year, the sector of the residential market that was most affected were the single residential units, previously valued in the R1m - R3m category with particular problems in the secondary and leisure housing markets. By the last quarter of 2008 residential developments, development land and incomplete developments were the sectors which were experiencing most of the pain. In mid-2008 the upper end of the residential market and particularly the luxury market over R10mi was not affected by the downturn as wealthy buyers continued investing in affluent areas. Now there is no doubt that these markets are being affected and whilst there is still muted buyer demand, buyers are now dictating prices".
"House price deflation may start to bottom out in late in 2009, but unless we see significant rate cuts this year, distressed homeowners will lag the market by two quarters. However, continued contraction in credit availability, lower loan-to-value ratios and increases in funding costs for borrowers will continue to put downward pressure on values. What the credit boom gave, the crunch may take away."
House prices dipping - the estate agents' view
Mike Greeff, CEO of Greeff Properties, like many other estate agency bosses takes comfort from the latest figures from Absa Homeloans. He says these "indicate clearly that in 2008 house price growth slowed noticeably in all price categories and across most of South Africa - but the overall picture is nowhere near as bleak as many property watchers would have us think."
"Absa's prediction is a 2,5% nominal house price drop in 2009, but it should be noted that the Western Cape, with a 5,2% overall price rise, was in 2008 the outstanding performer in SA. Cape Town itself should see a 2,4% nominal price increase."
"It has to be remembered that from 2004 to 2006 prices rose roughly 30% per annum. Any purchase before this date is, therefore, still showing an exceptional capital gain and will probably see a doubling of his home's value by late 2010.
"With an anticipated drop of 3,5% by October 2009 now would, in my view, be a good time to get into residential property. The current period must be close to the imminent bottoming out of the market," he says.
Like Greeff, Laurie Wener of Pam Golding Properties says "it's not all doom and gloom". "It is undeniable that there has been a downward trend in the property market and a reduction in transaction volumes, resulting in downward pressure on prices," says that group's MD for the Western Cape metro region.
"Certain suburbs as well as specific types of homes are bucking the trend, and continuing to attract high levels of demand and even top prices. A handful of top-end properties which are iconic or individualistic in terms of design, position and finishes, sometimes defy market trends, as they can only be acquired at a price acceptable to the seller. These sellers are often prepared to wait for the right price, or especially for a cash buyer. This trend generally occurs in upmarket areas such as Clifton, Bantry Bay, Camps Bay, Upper Constantia and Bishopscourt. "
Figure were up for Wener's organisation for January, with more sales, more interest from potential buyers, and better attendance of show-houses. "There has also been significant improvement in the lower-priced segments which were initially hardest hit when the market started cooling, but are now picking up noticeably."
This is especially true, says Wener, of the lower-end price ranges in the Atlantic Seaboard and Southern Suburbs (up to R2m, and particularly in sectional title sales) and in the Northern Suburbs (residential sales up to R3m).
There is "no denying that some areas have been hard hit by the downturn, particularly where buyers typically have high mortgages relative to value.
Wener says in areas where there has been high investor activity over the past 18 months or so, like Cape Town's inner city, owners may now find it difficult to recover their costs in the current market. "Our advice to investors/owners would be that if it is at all financially feasible for them, they should try to hold onto their properties and rent them out until the market recovers, rather than sell now at a loss. The market will recover and they will see capital growth again."
Cash buyers remain at a significant advantage in the current market, adds Wener, as banks continue to tighten their lending conditions even further. "Whilst the latest reduction in interest rates announced on 5 February is a welcome step for home-owners," she says, "the ongoing conservative approach being taken by banks towards their loan criteria and reduced mortgage loan budgets will dilute its positive effects to some degree."
Realestateweb.co.za
But estate agents have been issuing statements, suggesting we are not far from the bottom of the cycle. Who is right? Should you buy now?
House prices "diving" - the auctioneer's view
Home repossessions, insolvencies and distressed residential property sales "jumped alarmingly" in the last quarter of 2008, Levitt notes.
He says the residential property market is now in the third quarter of a technical recession. The index, which tracks various distressed asset classes, shows that the residential property market is in a deepening recession, house prices are continuing to fall and interest rates cuts are having a muted effect on mortgage arrears.
"Despite sunny optimism from many residential agencies, the reality of the housing market is that it is going through a startling downward correction," he says.
Levitt says housing price deflation is being fuelled by banks that are reassessing their exposure to the home loans market and being cautious in granting new mortgage loans.
"As bad debts spiral, banks are writing down their balance sheets and have made access to new home loan financing as tight as was last experienced in the early 1980s. There is little comfort to be taken from the current raft of available figures, with a shrinking economy, rising unemployment and falling house prices," says Levitt.
The Alliance Group believes negative housing equity - where your home is worth less than you owe on it - is now most probably at 1 in 15 South African homes.
"Those who are in mortgage arrears and are in the position where their outstanding finance is above their house's current market value and they are caught in a debt trap. Many people are sadly trapped in a home worth less than the loan they took out to pay for it," says Levitt.
The Alliance Group Distressed Asset Index tracks mortgage stress, which it has defined as mortgage holders who have been in arrears for two months or less. Mortgage stress has sharply increased from 75 000 in the third quarter of 2008 to 130 000 in the last quarter of the year.
"The rapid escalation of those in mortgage stress has picked up pace into 2009 despite interest rate cuts and we expect some very poor results in the first quarter of this year". More concerning, says Levitt, is severe mortgage stress where bondholders are over four months in arrears and likely to lose their homes. Severe mortgage stress catapulted from 8 000 in the second quarter of 2008 to over 35 000 in the last quarter.
Levitt says: "Despite a downward trend in interest rates, we are seeing severe mortgage stress continue to grow. Currently there are approximately 1 200 houses per month which are being sold forcibly through legal channels which include sales in execution, insolvency sales and banks' voluntary distressed sales channels.
"One of the positive indicators that the residential property market is still active is that buying activity of distressed houses has surged. 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. 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."
According to Levitt, the only factor that can alleviate severe mortgage stress will be aggressive interest rate cutting. "The Reserve bank will have to follow international central banks in applying far more severe rate cutting. What we have seen to date from their Monetary Policy Committee is too re-active and too slow. Financially distressed South African households are crying out for significant interest rate cuts and while the Reserve Bank concerns itself with targeting inflation, many families are simply interested in targeting to retain a roof over their heads".
Unfortunately interest rates cuts are having a limited effect on property values, says Levitt, who points to the UK and USA, where interest rates are heading towards zero yet house repossessions have remained at historic levels.
Internationally distressed housing markets have continued to grow and are fuelled by a collapse of household balance sheets and the inability to raise new financing. According to Levitt, over the last two decades, South Africans have become used to recessions but these have been alleviated by reductions in interest rates which have created credit-induced spending and caused house prices to grow.
"But this recession is different", says Levitt. "With a triple whammy of a deepening global recession, job losses and a constrained financial sector, this downturn is differentiated from previous forms which were largely interest rate-driven".
"Worryingly, the knock-on effect of a housing market in recession is the inevitable cutback in households which are rapidly cutting back on consumption and the demand for new housing". There has also been a sharp spike in company liquidations of residential property developments and allied services. "Many residential property developments are in real threat of hitting the wall and recently we have seen liquidations of well known property developers which cannot sustain themselves".
"Throughout most of last year, the sector of the residential market that was most affected were the single residential units, previously valued in the R1m - R3m category with particular problems in the secondary and leisure housing markets. By the last quarter of 2008 residential developments, development land and incomplete developments were the sectors which were experiencing most of the pain. In mid-2008 the upper end of the residential market and particularly the luxury market over R10mi was not affected by the downturn as wealthy buyers continued investing in affluent areas. Now there is no doubt that these markets are being affected and whilst there is still muted buyer demand, buyers are now dictating prices".
"House price deflation may start to bottom out in late in 2009, but unless we see significant rate cuts this year, distressed homeowners will lag the market by two quarters. However, continued contraction in credit availability, lower loan-to-value ratios and increases in funding costs for borrowers will continue to put downward pressure on values. What the credit boom gave, the crunch may take away."
House prices dipping - the estate agents' view
Mike Greeff, CEO of Greeff Properties, like many other estate agency bosses takes comfort from the latest figures from Absa Homeloans. He says these "indicate clearly that in 2008 house price growth slowed noticeably in all price categories and across most of South Africa - but the overall picture is nowhere near as bleak as many property watchers would have us think."
"Absa's prediction is a 2,5% nominal house price drop in 2009, but it should be noted that the Western Cape, with a 5,2% overall price rise, was in 2008 the outstanding performer in SA. Cape Town itself should see a 2,4% nominal price increase."
"It has to be remembered that from 2004 to 2006 prices rose roughly 30% per annum. Any purchase before this date is, therefore, still showing an exceptional capital gain and will probably see a doubling of his home's value by late 2010.
"With an anticipated drop of 3,5% by October 2009 now would, in my view, be a good time to get into residential property. The current period must be close to the imminent bottoming out of the market," he says.
Like Greeff, Laurie Wener of Pam Golding Properties says "it's not all doom and gloom". "It is undeniable that there has been a downward trend in the property market and a reduction in transaction volumes, resulting in downward pressure on prices," says that group's MD for the Western Cape metro region.
"Certain suburbs as well as specific types of homes are bucking the trend, and continuing to attract high levels of demand and even top prices. A handful of top-end properties which are iconic or individualistic in terms of design, position and finishes, sometimes defy market trends, as they can only be acquired at a price acceptable to the seller. These sellers are often prepared to wait for the right price, or especially for a cash buyer. This trend generally occurs in upmarket areas such as Clifton, Bantry Bay, Camps Bay, Upper Constantia and Bishopscourt. "
Figure were up for Wener's organisation for January, with more sales, more interest from potential buyers, and better attendance of show-houses. "There has also been significant improvement in the lower-priced segments which were initially hardest hit when the market started cooling, but are now picking up noticeably."
This is especially true, says Wener, of the lower-end price ranges in the Atlantic Seaboard and Southern Suburbs (up to R2m, and particularly in sectional title sales) and in the Northern Suburbs (residential sales up to R3m).
There is "no denying that some areas have been hard hit by the downturn, particularly where buyers typically have high mortgages relative to value.
Wener says in areas where there has been high investor activity over the past 18 months or so, like Cape Town's inner city, owners may now find it difficult to recover their costs in the current market. "Our advice to investors/owners would be that if it is at all financially feasible for them, they should try to hold onto their properties and rent them out until the market recovers, rather than sell now at a loss. The market will recover and they will see capital growth again."
Cash buyers remain at a significant advantage in the current market, adds Wener, as banks continue to tighten their lending conditions even further. "Whilst the latest reduction in interest rates announced on 5 February is a welcome step for home-owners," she says, "the ongoing conservative approach being taken by banks towards their loan criteria and reduced mortgage loan budgets will dilute its positive effects to some degree."
Realestateweb.co.za
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