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Showing posts from December, 2012

Rise in new wealth bodes well for residential property

Rise in new wealth bodes well for residential property Recent reports of current annual growth of 31% in the ranks of the wealthy in South Africa (compared with 19% in 2010) is good news for prime residential property says Gauteng luxury homes marketer Ronald Ennik. "Firstly, it will create a welcome new layer of buyers of luxury homes. Secondly, the sustainability of the top end of the market will be reinforced as more and more of the new wealthy buy into it. "Thirdly, it will compensate for the (hopefully temporary) withdrawal of foreign investors who, in spite of the attractions of the weaker Rand, seem to be adopting a wait-and-see strategy based on recent negative socio-economic and political developments in South Africa," says the CEO of Christie's-affiliated Ennik Estates. •Meanwhile, in the recently published global Wealth Report 2012, Renato Grandmont, chief investment officer for Citi Wealth Management and Citi Private Bank in Latin America, picks

Middle segment property values rise 5% on Absa index

Middle segment property values rise 5% on Absa index Middle segment property values increased by 5 percent year on year last month following a revised 3.3 percent year-on-year rise in October, according to the latest Absa house price index released yesterday. However, Absa said average house prices in the first 11 months of this year were unchanged compared with the corresponding period last year. In addition, Absa said although the year-on-year growth in the average value of homes in the middle segment of the housing market increased further last month, month-on-month house price growth continued to be on a downward trend. This trend commenced at the middle of this year and was expected to affect year-on-year house price growth "in the near future", said Jacques du Toit, a property analyst at Absa Home Loans. Du Toit said real price deflation was still evident in the middle house segment up to October but the downtrend was being arrested, with the smalland medium-s

Super rich flock to Sandton, Cape Town central

Super rich flock to Sandton, Cape Town central : Where do South Africa's wealthiest people live? A report from London-based consultancy Wealth Insight sheds some light on their geographical distribution. With 36 multimillionaires, Sandhurst accounts for the largest proportion of Johannesburg's ultra high net worth individuals (UHNWIs). Bryanston accounts for the second-largest percentage, "although it is a significantly larger suburb than the likes of Sandhurst, Hyde Park and Westcliff ", the report notes. "The area known as Sandton, which includes Sandhurst, Sandown, Morningside, Hyde Park, Melrose, Atholl and a number of other suburbs, is home to over half of Johannesburg's UHNWIs." The report also notes that a number of South African companies moved their head offices to Sandton, following a rise in crime in Johannesburg's city centre between 1990 and 2000. "Most notably, the JSE moved to Sandton in September 2000 from the central bus

Diepkloof Square community shopping centre opens in Soweto

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Diepkloof Square community shopping centre opens in Soweto Soweto entered a new era of convenient, quality retail when Diepkloof Square community shopping centre opened, fully let, on November 29. Diepkloof Square in Soweto opened last month. The 16 108 m2 community centre is anchored by Pick n Pay in a 3 112 m2 store and features 50 shops, including a new 1 720m2 Food Lover's Market. "Diepkloof Square is a really exciting project," says Food Lover's Market group property and business development manager Graeme Liebenberg. "Diepkloof holds a special place in the heart of many South Africans. "It was one of the earliest communities in Soweto and many influential South Africans live, have lived or passed through this suburb." In the epicentre of affluent Soweto, Diepkloof Square is positioned in an exciting setting in a growing community in Diepkloof Extension 3 near the N1, with excellent visibility and access from the main arterial road

How to build a credit history for your home-loan

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How to build a credit history for your home-loan Contact us for advice and assistance. (www.prop-law.co.za) In today's real estate market it is imperative for consumers to establish an excellent credit record and maintain it. By establishing a credit history, consumers ensure their best possible chance of bond approval, says Adrian Goslett, CEO of RE/MAX of Southern Africa. "Having a favourable credit record is essential for consumers who aspire to own property. While lending criteria is not as stringent as it was when the National Credit Act (NCA) was initially introduced, the requirements in the current market are still strict and it is likely to remain that way for some time," he says. "Just as important as a positive credit score is an established credit history that shows that the consumer can conduct their credit responsibilities in a favourable manner. A consumer's credit history will have an impact on whether or not the loan is granted and if

New N1 interchange proposed for Tshwane

New N1 interchange proposed for Tshwane Plans are under way to tackle problems related to traffic congestion in the Ashlea Garden/Garsfontein area. Tshwane Metro Council will construct a new interchange as part of the plans for the area. This will result in the closure of Matroosberg and Dely roads, between Garsfontein and Matroosberg roads, Ashlea Gardens, to make way for the Garsfontein/N1 interchange. Garsfontein Road will be upgraded to a four-lane road between the Garsfontein/N1 interchange and Selati Road. The construction of the Garsfontein/N1 interchange is aimed at improving accessibility to and from the N1. According to the municipality, traffic volumes are expected to grow significantly on roads such as Garsfontein, Dely, Brooklyn and Selati, "which would have a significant impact on the residential environment between these gateways". Executive mayor Kgosientso Ramokgopa said council would ensure that the residential character of those areas was prote

Tshwane claims progress in turning Pretoria CBD around

Tshwane claims progress in turning Pretoria CBD around Tshwane Metro Council has recorded several successes under its "I can" project aimed at ridding the city of crime and grime and ensuring that by-laws are adhered to. These include the recovery of 37 municipal rubbish bins; the issuing of 27 notices for contravening the by-law on health and solid waste; the closure of a tavern on the corner of Sophie de Bruyn (Schubart) and Boom streets and the arrest of 83 illegal immigrants. Deputy city manager, service delivery co-ordination and transformation management, Ronnie Boshielo stated in a report that "I Can", was aimed at among others, the removal of illegal posters, the removal of illegal structures on council-owned road reserves, addressing trade, illegal transport activities. The project is also aimed at fixing broken street lights and traffic signals, damaged street signals and potholes, and cleaning the urban environment by concentrating on roads and

Work on Pretoria's Paul Kruger Street to start in June

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Work on Pretoria's Paul Kruger Street to start in June Work is expected to start next year on the beautification of one of the main routes in Pretoria's inner city, Paul Kruger Street. Member of the mayoral committee for economic development and planning, Subesh Pillay, said yesterday work would start around June next year. Paul Kruger Street is expected to be closed to certain types of traffic, with the route reserved for the proposed Bus Rapid Transit (BRT) project. Line 1A of the BRT project is expected to run from the Rainbow Junction (Pretoria North) to Nana Sita Street (Skinner) along Paul Kruger Street. Stations will be situated on Paul Kruger Street, south of Church Square; on Paul Kruger, between Struben and Johannes Ramokhoase (Proes) streets; and on Paul Kruger, north of Boom Street and at Mansfield Road in Eloffsdal. A report submitted to the city council said the BRT would be located on a transit mall on Paul Kruger Street. The mall would have 6m-wid

When the state expropriates private property

When the state expropriates private property Governments or their agencies have the power to take away privately-owned land or property - usually for public use. Most governments compensate the deprived owner for the expropriated property. In some countries, like the US, an owner's permission to expropriate property is not needed, although the owner is "justly compensated". The South African constitution requires the government to pay the owner the market value, or what is "just and equitable" in a particular situation. Does a tenant have any claim for compensation if the owner's property is expropriated? Take the case of an owner who agrees to his property being expropriated in return for payment. He is allowed to continue occupying the property as a tenant, but later discovers that the municipality has changed the purpose for which the property would be used. Does he have a claim against the municipality for "misleading" him, or can

Joburg set to pay high fee to rebuild its tarnished image!

Joburg set to pay high fee to rebuild its tarnished image ! How much is fixing Joburg's reputation worth? R145 000? R10 million? Five times that? The City of Joburg is fed up with its bad reputation and is looking for a professional reputation management company to help clean up its image, and has received some expensive offers. "Being the biggest municipality in South Africa, the city enjoys a lot of media attention. Therefore, a good reputation is key," the city document outlining the problem said. "Group Communication and Tourism has therefore identified a need to obtain the services of a well-established reputation management company for the purpose of assisting the city manage and enhance its image and reputation." Joburg has been strongly criticised by its residents over recent years for its shambolic billing system. The city is prepared to pay for a good reputation fix. "This contract exceeds R10 million," states one section of the

What are a property's fixtures and fittings and what aren't?

What are a property's fixtures and fittings and what aren't? It is not uncommon for disputes to arise between a buyer and a seller regarding what is classified as a fixture and fitting and what isn't. "In many cases there are certain items that a seller has installed and would like to remove from the property and take with them when they move," says Goslett of RE/MAX Southern Africa. "Sellers often ask whether they are allowed to do this and the simple answer is yes, provided that both parties are in agreement. Alternatively, if the agreement of sale excludes any specific item, the seller is entitled to remove it." He points out that the general rule when it comes to fixtures and fitting is that the when the purchaser buys a property, they receive the land, the permanent physical improvements such as any buildings erected on the land, along with all items that are permanently attached to the improvements or buildings that are erected on the land.

Fais Ombud orders Sharemax broker to repay R800 000

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Please view our website at: www.prop-law.co.za Fais Ombud orders Sharemax broker to repay R800 000 The Ombud’s finding will worry brokers who sold shares in Zambezi and The Villa. Financial advice ombudsman Noluntu Bam delivered her first negative finding against a Sharemax broker last week. Her determination may spark fear among those who sold shares in the property syndication company’s two biggest projects, Zambezi and The Villa. It may also encourage other investors to lay complaints against their brokers. Sharemax is one of the country’s two largest sellers of property syndication schemes. Investors, many of them elderly, have placed about R4.5bn in its numerous schemes. The Villa and Zambezi together account for R2.5bn of investors’ funds. They are also two of the most troubled schemes. On Wednesday Bam ordered financial adviser Deeb Risk to repay his client, 72-year-old retiree Elise Barnes, R800 000 she had invested in Zambezi. Barnes actually invest

'Don't give up on bond application too soon'

www.prop-law.co.za 'Don't give up on bond application too soon' Although the ongoing publicity on the National Credit Act and the continued tightening up of the banks' criteria for issuing bonds is to be welcomed in general, it has had the unfortunate effect of deterring many potential home owners from trying to realise their dreams. This is according to Mike van Alphen, national manager for the Rawson Property Group's bond origination division, Rawson Finance. "Although Rawson Finance has had a 20 percent increase in the number of bond applications and a 15 percent increase in the rise of approvals this year, we know that many people who could actually qualify for a bond have given up," he says. "Very often such people have been deterred by a refusal at one bank, but bond originators may be able to help. Bond originators will be able to establish what size bonds they qualify for and, with the help of the credit bureaus, find out what obsta

Machanik admits guilt, regrets actions

www.prop-law.co.za Machanik admits guilt, regrets actions Former estate agent Wendy Machanik deeply regrets the actions that led to her conviction on 90 counts of theft, she wrote in a newspaper opinion piece yesterday. "I'd like to hereby state clearly and unambiguously that, yes, I am guilty of unlawfully accessing my company's trust fund to the value of R17 million, but not in the manner or for the reasons portrayed," Machanik wrote in the Sunday Times. Machanik was fined R1.5 million by the Johannesburg Specialised Commercial Crimes Court last month under a plea agreement in terms of which she admitting to 90 counts of theft totalling R27m, and two of failing to keep proper records of her company's trust fund. She wrote yesterday that her business, Wendy Machanik Properties, was hit by the economic downturn in 2007 and that she borrowed from the trust in an attempt to save her employees' jobs. "Looking back now, I know what I should have do

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!