Posts

Showing posts from June, 2011

Old Mutual in R3bn development that will house its SA HQ

Old Mutual in R3bn development that will house its SA HQ Insiders say the new precinct , called Mutual Place, will be a 120 000m² multi-storey mixed use office precinct and is expected to be taller than the 50-floor Carlton Centre in downtown Johannesburg. It will also be one of the greenest, if not the greenest, multi-storey precincts in the area.

Property as an investment option

Property as an investment option - Investment insights The biggest leverage that any successful investor possesses is knowledge. Knowing where and how to invest comes with studying the market and the current conditions. While current property market conditions favour buyers, one still needs to make an informed decision and look at all factors relating to the purchase such as the location and future appreciation potential of the property. These elements of property investment will always remain important regardless of the conditions surrounding the transaction. *Adrian Goslett is the CEO of RE/MAX of Southern Africa.

PROPERTY FINANCE

This morning, I was fortunate enough to attend the Property Finance "Power-Hour" Breakfast offered by SAPOA (South African Property Owners Association) in Sandton. The Power Hour was presented by Gerhard Zeelie of Standard Bank and he dealt with the state of the South African Property Market. It was interesting to get his perspective on where the market is and where it may be heading. No-one can accurately predict these things BUT as Gerhard said … "At least he has charts." Obviously an hour is wholly insufficient to cover the whole market in depth but we were afforded the opportunity to gain an oversight. Gerhard dealt with the following: Office Property Market Industrial Property Market Retail Property Market Residential Property Market SOME MARKET SEGMENTS PERFORMING WELL On average, the first three segments of the property market appear to be fairing quite well. Returns in the Office market are currently the best with an average return of 14.1% but

Rate increases loom as inflation quickens - Economic trends

Rate increases loom as inflation quickens - Economic trends This is BAD NEWS for a property industry that has failed to recover despite lower interest rates. Gareth Shepperson

All housing sectors affected by recession - but estate

All housing sectors affected by recession - but estate The latest Lightstone Review reveals that since 2003 the growth in the estate market has been almost 350%.

Standard Bank expects to payout over R50bn in new loans

Standard Bank expects to payout over R50bn in new loans Higher than inflation increases in disposable incomes and demand for mortgages is expected to help Standard Bank (JSE:SBK) lend over R50bn in new loans this year as businesses and individual’s appetite to borrow recovers, the bank said on Monday. Standard Bank’s head of personal and business banking, Peter Schlebusch, said the bank expects to pay out over R50bn in new loans this year mainly in the personal markets space.

Buying or selling property?

Buying or selling property? Most property transactions in South Africa are affected by the legislation in terms of which taxes and duties are levied. This article provides a summary on some of these taxes. Transfer Duty Transfer duty is, generally speaking, payable when immovable property is acquired. It is payable by the purchaser and is calculated as a percentage of the purchase price. If SARS is of the opinion that the purchase price is less than the fair value of the property, then SARS will calculate the transfer duty based on the fair value. The current transfer duty rates were announced in the Budget on 23 February 2011. They are applicable to both individuals and legal persons (companies, close corporations and trusts) in respect of properties acquired under sale agreements concluded on or after 23 February 2011. R37,000 plus 8% of the value above R1,500,000 Transfer duty is payable within six months from the date of acquisition, which is usually the date the sale agreem

Homeownership: Rent or buy

Homeownership: Rent or buy I have time and again seen homeownership put a family on a new footing socially, psychologically and economically. Homeownership provides a stabilising influence and serves as an anchor for which all members of the family will be prepared to make sacrifices and endure hardship. However in today's market we are frequently asked if this is not a good time to rent.

Property market remains conducive to new home buyers

Realestateweb - Property market remains conducive to new home buyers Residential house prices in South Africa fell slightly in May from a year earlier, according to latest statistics recorded by ooba - South Africa's leading bond originator - however, the environment remains conducive to new homebuyers with lenders continuing to relax their lending criteria.

Realestateweb - Property Loan Stocks deliver performance - Investment insights - South Africa's fastest-growing property website

Property Loan Stocks deliver performance - Investment insights - South Africa's fastest-growing property website Research published by the PLSA demonstrates that some PLSs are already showing around double-digit returns for the year-to-date to May 2011: Fortress B is at some 15.9% and Octodec 8.4% in the three month period to 31 May 2011, highest returns were reported by Fortress B, Octodec, and Growthpoint Properties with total returns of 18.1%, 13.0% and 10.8%, respectively.

Wendy Machanik reapplies for a Fidelity Fund Certificate

Wendy Machanik reapplies for a FFC Although the Wendy Mechanik saga is rapidly becoming old news to everyone except Wendy Mechanik, I have posted this article because of a comment that was posted by someone using the pseudonymn Zeitgeis, who posted: "what an idiot - she's going to jail!? is she going to sell timeshare in the eating hall?" Gareth Shepperson

What motivates an Estate Agent’s selection of a Conveyancer???

Image
I would humbly submit that our Firm provides a service that is better than most and is, in fact, comparable to the very best service levels in our profession! In a perfect world, this should mean that Estate Agents are beating down our doors in order to refer work to us. This is (unfortunately) not happening and I continue to search for the essential elements that inform an Agent's choice of Conveyancer. I am specifically not going to deal with the kickbacks paid to Agents by Conveyancers. We all know that it happens but (as a highly ethical law firm … don't laugh, there is such a thing) we are not prepared to indulge in illegal behavior. I am therefore not including it in my search for the essential elements that inform an Agent's choice of Conveyancer. Other than to state that we serve and treat our Agents very well, I am not prepared indulge this topic any further. I therefore continue to actively strive to ascertain what motivates the selection of a Conveyancer.

Significant improvement in residential building activity

Image
Significant improvement in residential building activity In the first four months of 2011, building activity with regard to new housing in the South African residential property market improved significantly in especially the planning phase compared with the same period in 2010.

REALTOR® Magazine-Daily News-Signs of a Real Estate Recovery?

REALTOR® Magazine-Daily News-Signs of a Real Estate Recovery? The global financial crisis started with the sub-prime mortgage issues in the USA and the ensuing downturn in that real estate market. That is why I am always on the lookout for positive news from the US real estate market becuase I don't think that a local recovery is possible without a coinciding global recovery.

Where will the smart money in property be going in the next twelve months?

Where will the smart money in property be going in the next twelve months? - Investment insights This is an article by Jason Lee. I have read his books and also receive his weekly newsletter. His advice is usually quite sound and practicle. It is interesting that he points out that the barriers to entry into commercial/industrial property investment are higher and that it therefore represents a better opportunity for investors. However, he fails to mention how these barriers may be overcome. Gareth Shepperson

Growthpoint, PIC concludes V&A Waterfront deal - Commercial - South Africa

Growthpoint, PIC concludes V&A Waterfront deal - Commercial - South Africa The Government Employees Pension Fund (GEPF), represented by the Public Investment Corporation Limited (PIC), together with Growthpoint Properties Limited today announced that their purchase, in equal proportions, of South Africa's landmark V&A Waterfront is now complete and all conditions have been fulfilled.

Sectional Title Amendment Act has useful changes

Sectional Title Amendment Act has useful changes The Sectional Title Amendment Act (2010) which is now in force incorporates a number of useful changes. The latest amendment allows the trustees of the scheme to extend a section simply by notifying the bondholder/owner - and, if no response is received from him within 30 days, to deem that he has no objection

2012 - 2013 likely to see property recovery

2012 - 2013 likely to see property recovery - Property talk On-going reporting on the USA's massive debt, serious economic problems in at least five European countries, war, revolution and other problems in the Arab world, Afghanistan and Pakistan are said by some to have dampened confidence in property worldwide - and here in SA. (An article by Lanice Steward, the MD of Anne Porter Knight Frank.)

Health returning to industrial property

Health returning to industrial property Industrial property is showing signs of a recovery with vacancy rates seemingly levelling off and rentals once again showing growth.

First time buyers set to dominate sales

First time buyers set to dominate sales South Africa has arguably one of the fastest growing middle class population segments in the world, which brings new property buyers into the market every month.

Time to make like China, learn from US successes

Time to make like China, learn from US successes It’s a short jump from forgetting why the Berlin Wall fell to joining the mob attacking the cornerstones of free market economics. Given its obvious superiority over the alternatives, these attacks are illogical. So I started wondering whether this isn’t some dastardly plot hatched in Washington, designed to throw the rest of us off track. Because, surely, our leaders couldn’t be that dumb?

Property investment: disproving the conventional wisdom of "high risk, high return"

Property investment: disproving the conventional wisdom of "high risk, high return" Conventional knowledge dictates that high risk investments will produce high returns, and similarly, low risk investments will yield low returns. Dr Koos du Toit, CEO of P3 Investment Group explains why this adage does not hold true when it comes to buy-to-let property, a low risk investment producing exceptional returns.

Far reaching judgement may cause upsets for property sales

Far reaching judgement may cause upsets for property sales The Supreme Court of Appeals recently delivered two far-reaching judgments, with detrimental consequences for the taxpayer. The latest case, delivered in May has far reaching consequences for companies wanting to sell unused land. The first, on 1 December 2010, was the NWK case and the most recent on May 10 2011, was the Founders Hill case. Neither judgment was in the taxpayer's favour, and there is a growing fear that a new trend has started at the Supreme Court of Appeal against the taxpayer. In the NWK case, more than a century worth of good precedent was strangely interpreted to arrive at a judgement against the taxpayer.

Property deals cannot be exited after offer is accepted

Property deals cannot be exited after offer is accepted This is an interesting article from Realestateweb and in my opinion highlights why buyers and sellers should consult with their PROPERTY ATTORNEY throughout the process and particularly BEFORE SIGNING ANYTHING! This will be the biggest financial transaction of their lives and yet people seem to be willing to enter it based upon blind faith. Great for litigation attorneys - not great for anyone else. There are many honourable and professional people in the real estate game but there are also many "snakes" on the prowl for victims. Find honourable, honest and ethical people. Ask around. My advice - make sure that you consult with a specialist Property Lawyer throughout the process. Gareth Shepperson

Taking care of your biggest investment - Wealth Building | Moneyweb

Taking care of your biggest investment - Wealth Building Moneyweb MOST people consider their residential property to be their biggest asset. This perception was created by the 8-year property boom which came to an end when the Global Recession hit in 2008. However, the downturn in the residential property market has shattered this myth as property went into a severe downturn. Property can be an expensive mistake, as so many buyers of leisure properties and empty stands can testify. Furthermore, your property is a lifestyle asset. We all need to live somewhere, but will this provide an income for your retirement? Gareth Shepperson

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!