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Showing posts from May, 2011

Realestateweb - SA RMBS performance remains stable In March 2011 - Moody`s - Investment insights - South Africa's fastest-growing property website

Realestateweb - SA RMBS performance remains stable In March 2011 - Moody`s - Investment insights - South Africa's fastest-growing property website London, 24 May 2011 -- The performance of the South African residential mortgage-backed securities (RMBS) market remained stable during the six-month period leading to March 2011, according to the latest indices published by Moody's Investors Service. Gareth Shepperson

Demand outstrips supply for lower-to-mid priced rentals - Residential

Realestateweb - Demand outstrips supply for lower-to-mid priced rentals - Residential - South Africa's fastest-growing property website The first quarter of 2011 saw a 25% increase in volume of transactions concluded for rentals in the Cape Town Metropolitan Area, with demand for lower-to-mid priced (R5,000 - R10,000) rentals outstripping supply. Gareth Shepperson

Regulator moves to shut down estate agency - Property | Moneyweb

Regulator moves to shut down estate agency - Property | Moneyweb Constantia Sectional Title Management (CSTM) is hours away from having its fidelity fund certificate (FFC) withdrawn by the Estate Agency Affairs Board (EAAB). On Tuesday the EAAB will in an urgent application to the South Gauteng High Court seek to withdraw CSTM’s FFC and have a curator officially appointed to administer its trust account. Gareth Shepperson

Goodbye dollar - Across the Atlantic | Moneyweb.com

Goodbye dollar - Across the Atlantic | Moneyweb.com By 2025, the dollar will no longer be the world's dominant reserve currency; instead, global finance will be based on a multipolar system in which the dollar shares the role of top currency dog with the euro and the renminbi. This is one of the predictions of the World Bank's latest report, Global Development Horizons 2011-Multipolarity: The New Global Economy, which argues that the growing economic importance of emerging markets is reshaping the global system in fundamental and important ways. Gareth Shepperson

Property News Gauteng: Selling your home should be "strictly business"

Property News Gauteng: Selling your home should be "strictly business"

More home loans approved

Banks declined fewer home loans in April 2011 compared to the same month in 2010, a bond originator said on Monday.  "The ability to obtain financing is one of the biggest drivers in the property market, so the consistent improvements are positive for the market," ooba CEO Saul Geffen said in a statement.  The bank initial decline ratio was 8.7 percent lower year-on-year, at 45.4 percent.  The bank effective approval ratio for home loans increased significantly from 57.3 percent in April last year to 64.4 percent, ooba found.  Geffen said the strong April approval rates followed record numbers in March, when the approval figure was the highest value of approved home loans since October 2008.  The average deposit size as a percentage of the purchase price decreased year-on-year by 39.6 percent to 13.1 percent, or R108,164.  At the same time, the average approved bond size increased by 3.7 percent to R715,319 in April 2011 from R689,742 in April 2010.  "The average deposit

Sharemax offers investors a “haircut”

Sharemax investors are being offered the choice between receiving a monthly income for their investment in the company or being repaid part of the money that they have invested in a full and final settlement agreement. About 40 000 investors have put more than R4,5-billion into the property syndication company. The Sharemax board has proposed that a scheme of arrangement and an offer of compromise is negotiated with investors. In September last year Sharemax defaulted on monthly interest payment to investors and this led to the company being investigated and statutory managers being appointed to run the scheme which appeared to be operating in contravention of the Banks Act. Spokesman for the company, Dawie Roodt confirmed that some of the companies in the Sharemax portfolio were "definitely bankrupt" and said that the amount owed to investors by some of the companies exceeded the value of assets owned by the company. He did not say which of the companies was bankrupt. He say

Are banks 'killing' property market?

Has it ever struck you just how many people are property experts when you mention that you are thinking of buying or selling a property? Paddy Hartdegen writes a regular column for Property24.com These well-meaning advisers – with opinions that are certainly influenced more by hearsay than knowledge – will say that now is not the time to be involved in the property sector and, as a rule of thumb, they think they're right. People with a little more knowledge, like estate agents, will say it's an excellent time to buy but, if you want to sell, make sure that you've priced your house correctly, particularly if it falls into the upper price brackets. Do estate agents give you a true value? Never. They give you a 'gut-instinct' based value that is determined by what you want and what they think they can get. If the house is slow to move, then the price is too high. It's a pathetic basis for determining a true value. Bankers (responsible for lending the money) o

Property in demand, despite prices

The demand for property in SA belies reports of a "soft" market from First National Bank (FNB) and Absa (ASA), according to Jawitz Properties. Absa reported that house prices encountered relatively sharper declines on a year-on-year basis in April, while FNB said the April increase in house prices may not be sustainable in the short term. Jawitz Properties CEO Herschel Jawitz said: "Demand is measured by show-day attendance, enquiries, buyer appointments and website activity, all of which are still showing better numbers than property price performance would suggest. It's not as if the phone is not ringing." He added that the underlying activity in the market continued to be resilient, but converting this underlying activity and interest into offers and successful deals was the real challenge. "When buyers do decide to put in offers, they usually reflect their perception of a buyer's market, and often much work still needs to be done to close the gap b

CSTM suspected of “criminal wrongdoing” - EAAB - Special investigations | Moneyweb

CSTM suspected of “criminal wrongdoing” - EAAB - Special investigations | Moneyweb The offices of Constantia Sectional Title Management (CSTM) in Roodepoort, Johannesburg were again raided on Friday by the Estate Agency Affairs Board’s (EAAB) inspectors assisted by the police. Gareth Shepperson

Sandton skyline dominates property development awards

Sandton skyline dominates property development awards The South African Property Owners Association (SAPOA) Innovative Excellence in Property Development Awards 2011, sponsored by Nedbank Corporate Property Finance, has awarded five of the nine award-winning property developments to properties located in Sandton, proving it to be the centre of innovative property development and design in South Africa.

Office Cycle upswing in the wings?

This article is from the Newsletter that I receive from eprop.co.za In general the amount of new development has come down or at least remained quite steady and the ratio of unlet space has remained fairly flat as shown in the first graph below. Over the past five quarters the ratio has come down quite noticeably for Durban and has broadly been flat for Cape Town, Pretoria and Johannesburg . The prognosis is that most markets are in line to experience balanced supply evidenced by lower new supply and a tapering off of vacancy rates on existing stock. This bodes well for perfomance into the medium term. As per the second graph, the ratio of new development to total market stock shows a slight increase for Cape Town and Joburg. The highest ratio remains PE now approaching 12 percent with Pretoria at under 6 percent albeit having come down from over 12 percent 18 months previously. It is important to note that the OVS tracks committed new developments as opposed to planned/speculative sch

Realestateweb - Generation x leads property recovery - Property talk - South Africa's fastest-growing property website

Realestateweb - Generation x leads property recovery - Property talk - South Africa's fastest-growing property website A report by an American company, John Burns Real Estate Consulting, revealed that of the 10 000 buyers and potential buyers they surveyed in 27 metro areas throughout the US, between 85% and 89% said that they felt now was a good time to buy a home and most felt optimistic about a new home purchase.

Realestateweb - Gloves off as Trafalgar takes on the city of Tshwane - Residential - South Africa's fastest-growing property website

Realestateweb - Gloves off as Trafalgar takes on the city of Tshwane - Residential - South Africa's fastest-growing property website Trafalgar Property Management is taking its six-year long battle with the Tshwane Metropolitan Council back to court after the council failed to comply with a court order against it. Attorney Dewald de Beer says his client will apply to have the matter placed on the unopposed court roll after the city failed to meet the 15-day deadline to file an opposing affidavit. This was after the council indicated it was going to oppose an application to have the Tshwane Metro declared in contempt of court. The application was lodged after the city apparently failed to comply with a court order. The dispute first arose in 2005 when Trafalgar discovered that around 30 body corporates under its management in Pretoria were being billed for individual owner's arrear electricity accounts. These are the accounts for which body corporates are not legally liable f

Outrage at CIPC, Cipro`s replacement`s website - Special investigations | Moneyweb

Outrage at CIPC, Cipro`s replacement`s website - Special investigations | Moneyweb We have experienced the exact same issues with CIPC. It also took us 45 minutes "on hold" to get through to the call centre who basically advised that we should be patient it is being attended to. Ou e-mails to CIPC have met with zero response and appear to be an utter waste of time. Gareth Shepperson

South Africa most transparent real estate market out of BRICS nations - South Africa | Moneyweb

South Africa most transparent real estate market out of BRICS nations - South Africa | Moneyweb According to Jones Lang LaSalle’s Global Foresight research paper on local real estate, factors that contribute to South Africa’s high transparency ranking include robust listed vehicle governance, strong auditing and reporting standards, a highly-developed legal system, the fairness and efficiency of the regulatory framework relating to real estate taxation, planning and building codes, enforceability of contracts and title, and a strong tradition of property rights.

Buffett’s folly - Soapbox | Moneyweb

Buffett’s folly - Soapbox | Moneyweb

Absa House Price Index: Jacques du Toit - sectoral analyst, Absa Retail Bank - SAfm Market update | Moneyweb

Absa House Price Index: Jacques du Toit - sectoral analyst, Absa Retail Bank - SAfm Market update | Moneyweb This is an extract of a radio interview on SAfm with Jacques du Toit a senior property analyst at ABSA Bank Home Loans. The interview took place on release of the ABSA House Price Index for April. Gareth Shepperson

Realestateweb - Why I sold Picvest - accounting boss - Investment insights - South Africa's fastest-growing property website

Realestateweb - Why I sold Picvest - accounting boss - Investment insights - South Africa's fastest-growing property website PKF accountant Cobus Kritzinger has supplemented his income by selling shares and debentures in property syndication company Picvest (formerly PIC Syndications). Kritzinger is managing director of PKF's Bloemfontein branch and also a director of PKF South Africa. Gareth Shepperson

Barclays Plc to move Africa headquarters in Dubai to Joburg - Financial | Moneyweb

Barclays Plc to move Africa headquarters in Dubai to Joburg - Financial | Moneyweb Barclays Africa headquarters was based in South Africa until 2006 when it was moved to the Gulf Arab emirate. The latest move follows the recent decision by Barclays and its majority-owned Absa (JSE:ASA) Group to combine their operations, the source said. Barclays bought a 56.4 percent stake in Absa in 2005. Gareth Shepperson

WMP has over R16m short fall - Liquidator - Property | Moneyweb

WMP has over R16m short fall - Liquidator - Property | Moneyweb A liquidator's report indicates that Wendy Machanik Properties (WMP) has a shortfall of more than R16 million, The Star reported on Monday. The report estimates the shortfall from preliminary investigations and has been sent to estate agents who worked for the agency. Gareth Shepperson

Realestateweb - South African property market corrections - Property talk - South Africa's fastest-growing property website

Realestateweb - South African property market corrections - Property talk - South Africa's fastest-growing property website South Africa is experiencing a property market correction. The question is whether it is or has been on the same scale as has been experienced in the USA during the last 3 years. The American dream has in some states unfortunately changed into an American nightmare. Gareth Shepperson

Realestateweb - Real estate giant Capital & Counties issues new shares - Listed - South Africa's fastest-growing property website

Realestateweb - Real estate giant Capital & Counties issues new shares - Listed - South Africa's fastest-growing property website JSE listed Capital and Counties Properties PLC (Capco) has issued new shares worth more than R18.6m. The placing price will be determined through an accelerated bookbuild launched on May 5 2011. A third of the company's shareholders are South African. A company statement says the proceeds will predominantly be used to fund acquisitions at Covent Garden and for ongoing repositioning of assets at its central London estate. Capco says it has identified a number of potential acquisitions of various sizes that the board believes will become available in coming months. Capco is a non-mining rand hedge on the JSE with its asset base in and around the London city centre. It's been responsible for the revamping of the historic Covent Garden on the eastern fringes of the West End and areas of the populous Earls Court district. Covent Garden report

Realestateweb - Seeff tries to rescue Golf & Leisure - Listed - South Africa's fastest-growing property website

Realestateweb - Seeff tries to rescue Golf & Leisure - Listed - South Africa's fastest-growing property website Due to the fact that I have already been consulted by one of the Fractional Companies involved in this whole disaster, I have been following and continue to follow developments closely. My Client appears to be one of the few lucky ones (at this stage) but investigations continue. Gareth Shepperson

Africa’s growth beats global average - World Economic Forum | Moneyweb

Africa’s growth beats global average - World Economic Forum | Moneyweb I guess the words of the Shakira FIFA World Cup song come to mind "It's time for Africa!" The World Economic Forum’s Africa summit opened on Wednesday with the launch of the Africa Competitiveness Report, 2011. The report, the third produced so far, takes stock of Africa’s competitiveness in relation to other regional economic hubs.

Realestateweb - Financial wizardry in R3.5bn property scheme - Investment insights - South Africa's fastest-growing property website

Realestateweb - Financial wizardry in R3.5bn property scheme - Investment insights - South Africa's fastest-growing property website A picture of financial wizardry is emerging at Picvest (formerly PIC Syndications), one of the country’s biggest property investment schemes. Despite assurances that investors’ assets are rock solid, there is no proof provided to back up these claims. Please also see my previous Blog postings on this topic. Gareth Shepperson

Home loans advances still sluggish

The growth in home loans advances remained sluggish but the total value of outstanding credit balances in the country’s household sector increased by 7,4% year-on-year (y/y) to R1 127,8-billion according to figures released by the South African Reserve Bank yesterday. The number of new home loans being granted will remain sluggish for the rest of this year as consumers battle to afford or qualify for finance. Total household credit comprises instalment sales agreements, leasing finance, mortgage advances, overdrafts, credit card debt and general loans and advances. According to Jacques du Toit, senior property analyst at Absa Home Loans, the growth in the total value of outstanding mortgage balances – both for commercial and residential bonds – dropped by 2,9% y/y. “It was the lowest year-on-year growth on record since 1966,” says Du Toit. “On a monthly basis, total mortgage balances were down by R1,6-billion or 0,2%,” he adds. “The mortgage balances in the corporate sector

Death of the salesmen - Money Matters | Moneyweb

Death of the salesmen - Money Matters | Moneyweb Thousands of investors have been severely affected by the recent collapse of various property syndications around South Africa. Whenever something like this happens, people always want to know how this could have happened and who is responsible. See some of my previous posts on Picvest and Sharemax. Gareth Shepperson

Rebosis offers black exposure in property - Property | Moneyweb

Rebosis offers black exposure in property - Property | Moneyweb Rebosis, built up from scratch by CEO Sisa Ngebulana (pictured above), offers as unique selling points a large exposure to the rising black-middle class through strategically located retail developments.

Realestateweb - Increase in first time home buyers - Residential - South Africa's fastest-growing property website

Realestateweb - Increase in first time home buyers - Residential - South Africa's fastest-growing property website The FNB House Price Index (HPI) for April has shown a significant increase in the number of first time buyers between the 2nd quarter of 2010 and the first quarter of 2011. According to the index, first time buyers as a percentage of total buyers rose to 22% from 17% over the past four quarters.

FNB house price index grows 2,2%

The FNB house price index has recorded 2,2% growth year on year (y/y) in April from the revised 1,2% in March. The bank said this was the second successive month of mild acceleration in y/y house price growth, triggered by the lagged result of interest rate cuts by the Reserve Bank late in 2010. "Those rate cuts caused a mild uptick in residential demand which may have been more than just the usual summer seasonal factors," said FNB property strategist John Loos. In real terms, however, adjusted for consumer price inflation, the y/y decline continued to the tune of -2,8% in March. "However, the FNB valuers' market strength index suggests that our valuers have started to see further deterioration in the strength of demand versus supply during April, after some small signs of stabilisation in preceding months of 2011. This weakening in the market balance is the combined result of a further strengthening in the supply of residential stock on the market during th

Conveyancers slam Sars' transfer duty e-filing : Property News from IOLProperty

Conveyancers slam Sars' transfer duty e-filing : Property News from IOLProperty Criticism about the functionality of the new property transfer duty e-filing system introduced by the SA Revenue Service (Sars) last month has escalated. The Law Society of South Africa (LSSA) on Friday added its voice to complaints that serious problems were being experienced by conveyancers with the new system. Adrian Lackay, a spokesman for Sars, earlier last week denied there were any problems with the new system and maintained it was working normally. I don't know who Adrian Lackay is BUT I would like to tell him that the system has several faults and that the staff at the SARS call centre are TOTALLY UNTRAINED in its use! Why would you actually pay someone whose only ability/skill is to give you a reference number and tell you that a consultant will revert to you???? Why would these staff tel you that a consultant will contact you within 48 hours when they have no intention of doing so

What’s happening with property? - Property | Moneyweb

What’s happening with property? - Property | Moneyweb Property funds and property stocks listed on the JSE have shown outstanding growth over the past few years. And this with substantially less volatility than the current boomer: mining and resources

Realestateweb - Affordable housing in demand - Residential - South Africa's fastest-growing property website

Realestateweb - Affordable housing in demand - Residential - South Africa's fastest-growing property website Demand for affordable housing in South Africa far outweighs affordable housing stock, particularly for properties with values below R200 000, where potential demand is in the millions.

South Africa vs the world - The Burning Question | Moneyweb

South Africa vs the world - The Burning Question | Moneyweb At the end of 2010, South Africa was formally inducted into the group after some intense lobbying, and the group became, officially, BRICS. This inclusion promises to give South Africa a prominent spot in world economic debates, and to put it firmly into global league tables. The question is, how does South Africa stack up against its BRICS and emerging market peers, and against the rest of the world?

Denny Crane

Denny Crane
It's not me ... yet. Denny Crane from the TV series Boston Legal. Click on picture if you're not sure who he is!