Wicked Pickel
With recent report from the Reserve Bank, it would seem at last that a small but welcome breathing space is forthcoming, with inflation expected to remain below 4 % for the next quarter due to the strength of the rand.
Hopefully we will receive a much welcome interest rate cut in September, which is certainly a most positive sign and welcome for all home owners and new buyers. Taking into account that inflation coupled with a weak demand globally and locally, along with the improvement in the rand, it follows that there should be no reason for the MPC not to cut interest rates in September.
There seems to be a very positive “air” about our new South Africa, after the successful World Cup, which as a “Founder Member” of “Proudly South African”

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Link: http://www.property24.com

You may know in your own mind when you decide to sell your home, but do you know your own market?

“One thing that is absolutely certain in real estate is that nothing stays the same,” says Tjaart van der Walt, CEO of the RealNet estate agency group.

“When one part of the country booms, another could quite well be losing population and real estate demand. And even very popular suburbs can suddenly be perceived as too pricey, causing buyers to focus their attention on more affordable areas that then become revitalised and rejuvenated in their turn.

“So what is up may go down and what is down may go up and no matter what the market conditions were when you bought your property, they are very unlikely to be the same when you sell.”

However, he says, even if your local market is currently depressed, there will be a buyer for your home – provided that it is presented and priced right. “Now everyone knows that your best move in any market is to keep your home in good condition, but getting the asking price just right for current conditions is much more difficult.

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Link: http://www.property24.com

The concept of taking out credit has been given a hard time in recent years – following the sub-prime mortgage crisis in the US and rising levels of indebtedness in South Africa.

However, according to Kay Geldenhuys, property finance processing manager at ooba, South Africa’s leading bond originator, if it is used in a constructive way, credit can prove to be a vital tool in building wealth creation for the future.

Here, Geldenhuys discusses the various ways consumers can use credit to their own advantage.

Property

Property is a prime example of using good credit for wealth creation as property owners use the banks' money to finance their purchase, paying off a small portion each month while the property appreciates in capital value.

“The obvious type of good credit is purchasing a property either as a main residence or as an investment property and financing the purchase through a home loan,” says Geldenhuys.

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Link: http://www.property24.com

Listed property has always been an excellent investment.

But the prospects for the nearly 20 listed property funds are currently less than positive.

Investors will therefore have to be very careful and more selective.

Coronation Fund Managers says listed property has offered investors a firm average return of 23,2% per year over the past 10 years. This makes listed property the asset class that has fared the best during this period – even better than local shares (17%).

But what about the next decade?

Coronation’s forecast is a return of only 9% to 10% per year – lower than the forecast for local and international shares alike and a tad higher than for unit trusts.

This does not mean that listed property is no longer a good investment. But investors will have to lower their return expectations.

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Link: http://www.property24.com

Worldwide, the sub-division of large residential stands is gaining popularity – and presents good opportunities for property investors.

So says Harcourts Africa CEO Martin Schultheiss, who points to new figures from the UK Department for Communities and Local Government that show 25% of new British homes are now being built on subdivided existing residential land, including many “back gardens”.

“And although no hard figures are available locally, the trend is also visible in South Africa and the reasons are plain: Land is becoming scarcer and it is often cheaper and easier to build in developed areas because of existing infrastructure.

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