Link: http://www.property24.com

Controversy still surrounds the terminology “effective cause of the sale” in property documents, as different interpretations are often attached to these words.

If the right meaning is not ascertained, it could hit the seller’s pocket hard.

“Sellers should take note that property attorneys in South Africa have given different interpretations to these words,” says Lanice Steward, MD of the Cape Peninsula estate agency, Anne Porter Knight Frank (APKF).

One interpretation, said Steward, is that any agent who introduced the buyer to the property or to the seller can claim to be the effective cause of the purchase if and when that same person eventually buys the property, whether or not they have kept in contact with the buyer.

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(article from Weekend Argus - Saturday 24 July 2010)
Five major projects could create 40 000 jobs

MELANIE PETERS

BILLIONS of rands are set to be pumped into the West Coast’s Saldanha Bay over the next 20 years, radically changing it into an industrial powerhouse and creating thousands of jobs.

Five major projects are on the cards for the town. They include developing the port economy, increasing its bulk export capacity, building a renewable energy plant, exploiting its oil and gas potential, and a massive housing project. The investment, mostly foreign, will be to the tune of a whopping R83 billion over 20 years and creating close to 40 000 jobs.

Saldanha Bay has the deepest and largest natural harbour in the southern hemisphere, making it ideal for industrial development.

This week the Saldanha Steel debacle highlighted the pressing need for new ways to diversify the town’s economy.

The government had to step in to help resolve the dispute between ArcelorMittal SA and Kumba Iron Ore over an interim pricing agreement. Although it is an interim agreement, it heads off Mittal’s threat to close its Saldanha Steel plant, shed up to 4 000 jobs, and curtail exports and domestic production, leading to higher local steel prices and curbed economic growth.

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Link: http://www.windhoekberg.co.za

Velddrif - Hank McGregor powering into the canoeing history record books by winning his seventh title in the Windhoek Berg River Canoe marathon, edging past the record of six wins that he had shared with Robbie Herreveld, while Robyn Kime dominated the ladies race over the four days, finishing over an hour ahead of nearest rival, Donna Winter.

McGregor blasted into the finish at Velddrif victorious, without another boat in sight. “I am really happy. My dad was here for my first win, and now he was here for my seventh. It’s a really special moment.” said the champion.

Second placed King praised McGregor saying, “Hank deserves it. He is a true professional. No one can match his skill, racing mentality, and experience.” Heinrich Schloms raced a skilled and consistent race over the last four days, to finish in third overall.

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(from Property Trader)

According to mortgage originator ooba, the average house price rose 6,8% year-on-year in June to R837 599 (from R784 427 in June 2009), and the outlook for the SA residential property market remains positive.

“House prices are continuing to increase, albeit at a slower pace than in the past few months,” says ooba CEO Saul Geffen “We have seen a sharp recovery in house prices during the first half of this year and we are still seeing an easing in lending criteria, which is good news for potential homebuyers and the property market in general."

The ooba statistics also show that as a percentage of purchase price, the average deposit paid by home buyers has dropped from 22,5% of the price to 17% in the past year, and that the average approved bond size has increased 14,3% yoy to R695 381.

Nevertheless, the average bond decline ratio is still sitting at just under half of all applications (48,8% in June), the originator says.

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Link: http://www.overberg.biz

INTERNATIONAL

- US quarterly earnings got off to a good start with better than expected results from benchmark companies Alcoa and Intel. However, earnings are a lagging indicator, and the outlook presented on release is often more important, illustrated by JPMorgan which although beating expectations issued a cautious outlook, causing the share price to decline.

- US wholesale sales unexpectedly fell in May by 0.3 % month-on-month the 1st decline since March 2009 and against a 0.5 % consensus forecast increase. Total inventories increased 0.5 % higher than the 0.4 % consensus forecast, taking the inventory-tosales ratio, a measure of how long it would take to sell stocks at the current sales
price, to 1.14 months from April’s 1.13 months.

- The Philadelphia Fed reported a weaker than expected factory activity index, dropping in July to 5.1 against a consensus forecast 10. The New York Fed reported its manufacturing index fell to 5.08 against a consensus forecast 18.

- US producer price inflation fell for a 3rd straight month in June by -0.5 % year-on-year after falling -0.3 % in May and more than the consensus forecast -0.1 %.

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