The official result of South Africa’s fourth democratic election was announced on Saturday - 4 days after just more than 17 and a half million voters went to the polls.
According to the official results, the ANC won 65.9% of the votes, failing to secure a two-third majority. The Democratic Alliance remained the official opposition by taking 16.66% of the votes with new party COPE in third place with 7.24% of the total votes.
Brigalia Bam, chairman of the Independent Electoral Commission said that she has no doubt that the basic features of our democracy are great and also commended all parties and candidates for the peaceful manner in which they campaigned.
The results also showed that the ANC will have 264 seats in the national assembly, with the DA 67 seats and COPE 30 seats.
Provincially the ANC dominated 8 of the 9 provinces with Helen Zille’s DA winning an outright majority in the Western Cape.
New president Jacob Zuma will be inaugurated on the May 9.
Tuesday, April 28, 2009
Monday, April 20, 2009
Is the Property Market Bottoming Out?
The information in this article is courtesy of Business Report (House Market Nears Bottom – Bond Choice – 17 April 2009).
One of South Africa’s biggest mortgage originators suggests that the residential property market is bottoming out.
Richard Gray, CEO of Bond Choice said this can be seen in the increasing volume of applications they have submitted to banks as well as the improvement in approval rate. He added that the around 2000 estate agencies with whom they deal are of the opinion that the market was not getting worse.
Although Gray are feeling positive about the market he still sees large deposits required by banks as the biggest knock to the market, as prospective buyers didn’t have the cash to put down.
Another large bond originator in South Africa, ooba, said that recovery in the housing market was imminent, although they can’t say that it will happen in the second half of this year or next year.
Saul Greffen, MD of ooba, recons that if the appetite of banks to lend increases, the recovery will happen quicker. He added that their bond application volume and bank approval rate had continued to deteriorate from July until February, although it has been stable for the past 2 months.
Jacques du Toit, senior property analyst at Absa believes a turnaround in the market is still a long way off. He recons that the full effect of interest rate reductions can not yet be seen as the household sector are still under financial pressure.
"I don't see the market turning in the near future," Du Toit said. "It may level out but not turn up. It might start recovering later this year, but I only see price growth and increased levels of activity early in 2010."
John Loos, property strategist at FNB Home Loans believes that the improved activity in the market shown by the FNB property barometer recently, is a result of interest rate cuts and improvement in affordability.
Oversupply and financial pressure are still the biggest reasons why demand won’t translate into price deflation, according to Loos. He expects house prices to decrease in 2010.
Apply for a bond online
One of South Africa’s biggest mortgage originators suggests that the residential property market is bottoming out.
Richard Gray, CEO of Bond Choice said this can be seen in the increasing volume of applications they have submitted to banks as well as the improvement in approval rate. He added that the around 2000 estate agencies with whom they deal are of the opinion that the market was not getting worse.
Although Gray are feeling positive about the market he still sees large deposits required by banks as the biggest knock to the market, as prospective buyers didn’t have the cash to put down.
Another large bond originator in South Africa, ooba, said that recovery in the housing market was imminent, although they can’t say that it will happen in the second half of this year or next year.
Saul Greffen, MD of ooba, recons that if the appetite of banks to lend increases, the recovery will happen quicker. He added that their bond application volume and bank approval rate had continued to deteriorate from July until February, although it has been stable for the past 2 months.
Jacques du Toit, senior property analyst at Absa believes a turnaround in the market is still a long way off. He recons that the full effect of interest rate reductions can not yet be seen as the household sector are still under financial pressure.
"I don't see the market turning in the near future," Du Toit said. "It may level out but not turn up. It might start recovering later this year, but I only see price growth and increased levels of activity early in 2010."
John Loos, property strategist at FNB Home Loans believes that the improved activity in the market shown by the FNB property barometer recently, is a result of interest rate cuts and improvement in affordability.
Oversupply and financial pressure are still the biggest reasons why demand won’t translate into price deflation, according to Loos. He expects house prices to decrease in 2010.
Apply for a bond online
Friday, April 17, 2009
Property Upgrades: Don’t Over-Capitalise
The information in this article is courtesy of iAfrica (Don’t over-capitalise – 17 April 2009).
A large number of homeowners are opting to improve their current properties as oppose to trying to sell in these tough economic times not to mention the weak property market. This in itself is not a bad investment, but risks of over-capitalisation are much higher now with the house price deflation currently felt by South Africans and around the world.
Rob Stefanutto of Lew Greffen Sotheby’s International Realty says that the years of whirlwind growth in house prices have allowed people to overspend on finishes for investment homes and get away with it. These days it is vital to assess the value of the property in terms of the suburb in which it is located before making decisions on where within the house to spend their money.
He adds that it might take several years to be recouped for the investment so it is essential to make sure that upgrades are well considered and well executed.
Stefanutto explains that the best return on investment is often “invisible” improvements, which includes wiring, plumbing, roofing and other structural upgrades. These improvements are vastly more expensive than visible upgrades like Italian kitchens and creative décor but it will add to the longevity of the property.
If you are planning on structural upgrades it is important to keep in mind that you investment might take around 5 years to show return – so be prepared to stay put.
Installing proper security systems, according to Stefanutto, is another way to add value to your property. Carports and good plumbing are also on his list of ways to improve the value of your house. Good quality paint that can maintain its look over 7 years is also a sound investment.
Stefanutto concludes by warning that the time where expensive home decorating can be made up thanks to price escalation, is over. He warned homeowners that the time it takes these days to make a return has lengthened considerably.
A large number of homeowners are opting to improve their current properties as oppose to trying to sell in these tough economic times not to mention the weak property market. This in itself is not a bad investment, but risks of over-capitalisation are much higher now with the house price deflation currently felt by South Africans and around the world.
Rob Stefanutto of Lew Greffen Sotheby’s International Realty says that the years of whirlwind growth in house prices have allowed people to overspend on finishes for investment homes and get away with it. These days it is vital to assess the value of the property in terms of the suburb in which it is located before making decisions on where within the house to spend their money.
He adds that it might take several years to be recouped for the investment so it is essential to make sure that upgrades are well considered and well executed.
Stefanutto explains that the best return on investment is often “invisible” improvements, which includes wiring, plumbing, roofing and other structural upgrades. These improvements are vastly more expensive than visible upgrades like Italian kitchens and creative décor but it will add to the longevity of the property.
If you are planning on structural upgrades it is important to keep in mind that you investment might take around 5 years to show return – so be prepared to stay put.
Installing proper security systems, according to Stefanutto, is another way to add value to your property. Carports and good plumbing are also on his list of ways to improve the value of your house. Good quality paint that can maintain its look over 7 years is also a sound investment.
Stefanutto concludes by warning that the time where expensive home decorating can be made up thanks to price escalation, is over. He warned homeowners that the time it takes these days to make a return has lengthened considerably.
Wednesday, April 15, 2009
No Worries for Foreigners Buying in SA
The information in this article is courtesy of iAfrica (SA is Easy – 14 April 2009).
With South Africa’s diverse landscapes, excellent climate and favorable exchange rates, it’s no surprise that a large amount of foreigners opt to invest in this beautiful country. There are however also many foreigners that think that it is extremely difficult to buy property in South Africa, but the contrary is that it is actually a hassle-free process.
Tony Clark, MD of Rawson Properties, explains that should a foreign buyer decide not to purchase a property in his/her own name, the purchase vehicle must nevertheless be locally registered an it must comply with South African laws. This does however not prevent a purchase made in the name of an overseas company or trust.
Also, Clark added, non-residents are allowed to buy South African property over the Internet and it is not essential that buyers should be in the country to finalise the deal. This means that transfers and bond documents can be signed overseas and should be done in the presence of a notary public of at the local South African embassy.
According to Clark foreigner buyers are allowed to raise bonds in South Africa even if they are not intending to live in SA. The bond is however limited to 50% of the total sale price. The other 50% can come from a bond raised overseas. South Africa’s lending criteria will essentially apply to foreign lenders.
Buyers will also be subject to a FICA (Financial Intelligence Center Act) investigation, the purpose of which is to ascertain that the funds used have been legally acquired.
The South African law states that foreign residents buying in South Africa are exempt from South African income tax and overseas earnings, meaning foreigners only pay on money they earn in S.A.
In essences, Clark said, this means that South Africa is one of the friendliest places to buy property and local legal professionals are adequately trained to ensure a smooth transfer of ownership.
Buy Cape property
With South Africa’s diverse landscapes, excellent climate and favorable exchange rates, it’s no surprise that a large amount of foreigners opt to invest in this beautiful country. There are however also many foreigners that think that it is extremely difficult to buy property in South Africa, but the contrary is that it is actually a hassle-free process.
Tony Clark, MD of Rawson Properties, explains that should a foreign buyer decide not to purchase a property in his/her own name, the purchase vehicle must nevertheless be locally registered an it must comply with South African laws. This does however not prevent a purchase made in the name of an overseas company or trust.
Also, Clark added, non-residents are allowed to buy South African property over the Internet and it is not essential that buyers should be in the country to finalise the deal. This means that transfers and bond documents can be signed overseas and should be done in the presence of a notary public of at the local South African embassy.
According to Clark foreigner buyers are allowed to raise bonds in South Africa even if they are not intending to live in SA. The bond is however limited to 50% of the total sale price. The other 50% can come from a bond raised overseas. South Africa’s lending criteria will essentially apply to foreign lenders.
Buyers will also be subject to a FICA (Financial Intelligence Center Act) investigation, the purpose of which is to ascertain that the funds used have been legally acquired.
The South African law states that foreign residents buying in South Africa are exempt from South African income tax and overseas earnings, meaning foreigners only pay on money they earn in S.A.
In essences, Clark said, this means that South Africa is one of the friendliest places to buy property and local legal professionals are adequately trained to ensure a smooth transfer of ownership.
Buy Cape property
Wednesday, April 8, 2009
Turning Your Home Into A Guest House for 2010
This information in this article is courtesy of The Property Magazine (Things to consider before turning your home into a guesthouse for 2010).
The 2010 Soccer World Cup is coming to South Africa and a lot of us are considering renting out rooms in our homes for an extra buck or two. This is a unique once-in-a-lifetime opportunity, which was prompted by the decision by Internationale de Football Association’s (FIFA) first-time decision to allow non-hotel accommodation facilities to be made available during the tournament.
There are, however a number of things to consider before you start prepping rooms in your house for eager soccer fans:
Be very mindful of insurance implications as properties are insured as private dwellings. The moment a property is converted into a guesthouse, the class of insurance changes from private to business. This means that standard household and homeowner cover is invalidated. In layman’s terms this would imply that, should a guest’s possessions be stolen or if the room should be burn to the ground, you as the homeowner would be responsible for the damages. You would even be responsible for medical cost should a guest fall in the shower or hurt him/herself in any way.
Changing your insurance from private to business is all but an easy task. A business needs to be registered before you can get insurance cover and this means separate bank accounts, registration with SARS for income tax etc.
Another point to consider is that MATCH Event Services – an events company hired by FIFA to secure a minimum of 55 000 rooms for 20101 in both the hotel and non-hotel industries - stipulates that facilities need to be officially graded in order to be contracted as accredited service providers. If you want to be contracted, the rooms in your house need to be available for the entire duration of the tournament, without any form of a guarantee in terms of secured guests and listing an ad would come out of your own pocket.
Don’t be over eager - make sure you weigh all options and cost before you make the decision to convert your property into a guesthouse.
For more information visit http://www.match-ag.com/accommodation.html
Buy Garden Route property
The 2010 Soccer World Cup is coming to South Africa and a lot of us are considering renting out rooms in our homes for an extra buck or two. This is a unique once-in-a-lifetime opportunity, which was prompted by the decision by Internationale de Football Association’s (FIFA) first-time decision to allow non-hotel accommodation facilities to be made available during the tournament.
There are, however a number of things to consider before you start prepping rooms in your house for eager soccer fans:
Be very mindful of insurance implications as properties are insured as private dwellings. The moment a property is converted into a guesthouse, the class of insurance changes from private to business. This means that standard household and homeowner cover is invalidated. In layman’s terms this would imply that, should a guest’s possessions be stolen or if the room should be burn to the ground, you as the homeowner would be responsible for the damages. You would even be responsible for medical cost should a guest fall in the shower or hurt him/herself in any way.
Changing your insurance from private to business is all but an easy task. A business needs to be registered before you can get insurance cover and this means separate bank accounts, registration with SARS for income tax etc.
Another point to consider is that MATCH Event Services – an events company hired by FIFA to secure a minimum of 55 000 rooms for 20101 in both the hotel and non-hotel industries - stipulates that facilities need to be officially graded in order to be contracted as accredited service providers. If you want to be contracted, the rooms in your house need to be available for the entire duration of the tournament, without any form of a guarantee in terms of secured guests and listing an ad would come out of your own pocket.
Don’t be over eager - make sure you weigh all options and cost before you make the decision to convert your property into a guesthouse.
For more information visit http://www.match-ag.com/accommodation.html
Buy Garden Route property
Tuesday, April 7, 2009
The Top 10 List of Most Expensive Property Markets
(The Global Property Guide compiled this list based on a 120 sq. m. apartment in city-centre of these cities)
The most expensive property market is without a doubt Monte Carlo in Monaco with property prices more than twice as expensive as the runner-up. The average cost of property in Monte Carlo is R434,931 per square meter.
Coming in at number 2 is the Russian capital, Moscow, costing an average of R190,643 per square meter, closely followed by London, UK with an average price tag of R189,773 per square meter.
The two Asian cities of Tokyo and Hong Kong take fourth and fifth place. Tokyo has an average property price of R164,557 per square meter and Hong Kong R147,432 per square meter.
The US has one entry on the top 10 list of most expensive property markets with New York’s property prices averaging a staggering R136,171 per square meter.
Paris, France comes in at number 7 with property in this city costing around R110,883 per square meter followed by Singapore where a property will cost you an average of R88,669 per square meter.
Italy's property makes an entry at number 9 with an average price of R83,775 and wrapping up the top 10 is Mumbai in India with property costing an average of R83,752 per square meter.
The most expensive property market is without a doubt Monte Carlo in Monaco with property prices more than twice as expensive as the runner-up. The average cost of property in Monte Carlo is R434,931 per square meter.
Coming in at number 2 is the Russian capital, Moscow, costing an average of R190,643 per square meter, closely followed by London, UK with an average price tag of R189,773 per square meter.
The two Asian cities of Tokyo and Hong Kong take fourth and fifth place. Tokyo has an average property price of R164,557 per square meter and Hong Kong R147,432 per square meter.
The US has one entry on the top 10 list of most expensive property markets with New York’s property prices averaging a staggering R136,171 per square meter.
Paris, France comes in at number 7 with property in this city costing around R110,883 per square meter followed by Singapore where a property will cost you an average of R88,669 per square meter.
Italy's property makes an entry at number 9 with an average price of R83,775 and wrapping up the top 10 is Mumbai in India with property costing an average of R83,752 per square meter.
Thursday, April 2, 2009
House Prices Keeps Dropping
The information in this article is courtesy of iAfrica (March House Prices Down – April 1 2009).
The latest FNB house price index shows that house prices are down by 7.8% year-on-year in March after declining by 6.2% year-on-year in February.
Johan Loos explained that the weak economic environment is contributing to a significant amount of ‘offloading’ of property with the FNB Property Barometer survey reporting estate agents’ estimates that about 26% of total sellers are selling in order to downscale due to financial pressure.
According to Loos, this means that it remains likely that the current situation of national year-on-year house price decline will continue for most of 2009.
The index shows that the first quarter of 2009 showed that a freehold two-bedroom house stands at R315 468, declining by 13.2% year-on-year.
The average price of a sectional title ‘two-bedroom and less’ market continued to fair considerably better than freehold property with three-bedroom seeing most of its recent price deflation coming to an end.
Loos predicts that this year-on-year price deflation is expected to be with us for most of the year until such time as oversupplies are mopped.
Buy Durban property
The latest FNB house price index shows that house prices are down by 7.8% year-on-year in March after declining by 6.2% year-on-year in February.
Johan Loos explained that the weak economic environment is contributing to a significant amount of ‘offloading’ of property with the FNB Property Barometer survey reporting estate agents’ estimates that about 26% of total sellers are selling in order to downscale due to financial pressure.
According to Loos, this means that it remains likely that the current situation of national year-on-year house price decline will continue for most of 2009.
The index shows that the first quarter of 2009 showed that a freehold two-bedroom house stands at R315 468, declining by 13.2% year-on-year.
The average price of a sectional title ‘two-bedroom and less’ market continued to fair considerably better than freehold property with three-bedroom seeing most of its recent price deflation coming to an end.
Loos predicts that this year-on-year price deflation is expected to be with us for most of the year until such time as oversupplies are mopped.
Buy Durban property
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