The information in this article is courtesy of Fin24 (Market expects one more cut – 9 July 2009)
Speculation about another rate cut is doing the rounds, according to a senior dealer in the money market. The dealer stated that although there is pressure at the short end due to issuance, many in the market do expect one more 50 basis point cut in September while some are even expecting two more cuts.
Apart from the speculation regarding another rate cut, the money market also finds itself guessing if Governor Tito Mboweni will renew his contact come the August 7, 2009.
Meanwhile an article on iAfrica reported on the effects of the recent interest rate cuts on cash investors and debt owners.
According to the article, those who have invested in money market instruments such as fixed deposits, money market accounts or even in a fund with high exposure to cash, the recent rate cuts would have had an incredibly negative impact. This is especially worrying for investors who make a living out of the market and are therefore at the mercy of these declining yields. There is also the risk of these yields not keeping pace with inflation and ultimately resulting in the loss of buying power – meaning you will “save yourself poor”.
If you are, however a debt owner, the last 6 months has been a welcome relieve and has presented the perfect opportunity for some to claw their way out of debt.
This only means that all eyes will be on the monetary committee on the August 13, when the decision on another rate cut will be made.
Thursday, July 9, 2009
Thursday, June 4, 2009
Holiday Homes in South Africa: What to Consider Before You Invest
South Africa has some of the world’s most sought-after holiday destinations and offers buyers great opportunities to invest in a steady and resilient market. There is however a few things to keep in mind before you take the first step to investing in a holiday home in South Africa:
What do you want from the property
Do you want to use it as a holiday home, retirement home or do you plan to move to this property permanently? You might want to buy-to-rent or even open a guesthouse or bed & breakfast.
Define your needs
Maybe you want to use it for long summer holiday or for summer of winter rental only. You might want the property to be close to specific recreational or sporting facilities like a golf course or beach. Be very clear about your needs.
Take a look at your budget
Start looking into what how much property you can afford. In South Africa you can choose between houses, apartments, managed property, time-share, fractional ownership or you might want to build your dream home from scratch. Make a list of your needs such as, how many bedrooms and bathrooms, your swimming pool requirement, parking facilities, etc.
Find an agent
An experienced agent would be able to help you with the finer details of purchasing a holiday home in South Africa. Popular vacation destinations in South Africa include Cape Town’s Beaches (Camp’s Bay, Clifton, Llundudno and Hout Bay) and The Garden Route, including popular destinations such as, Knysna, Nature’s Valley, Plettenberg Bay and Wilderness. Also consider KwaZulu Natal’s South and North Coast and the Overberg also known as the Whale Coast.
Buy Knysna property or invest Overberg property.
What do you want from the property
Do you want to use it as a holiday home, retirement home or do you plan to move to this property permanently? You might want to buy-to-rent or even open a guesthouse or bed & breakfast.
Define your needs
Maybe you want to use it for long summer holiday or for summer of winter rental only. You might want the property to be close to specific recreational or sporting facilities like a golf course or beach. Be very clear about your needs.
Take a look at your budget
Start looking into what how much property you can afford. In South Africa you can choose between houses, apartments, managed property, time-share, fractional ownership or you might want to build your dream home from scratch. Make a list of your needs such as, how many bedrooms and bathrooms, your swimming pool requirement, parking facilities, etc.
Find an agent
An experienced agent would be able to help you with the finer details of purchasing a holiday home in South Africa. Popular vacation destinations in South Africa include Cape Town’s Beaches (Camp’s Bay, Clifton, Llundudno and Hout Bay) and The Garden Route, including popular destinations such as, Knysna, Nature’s Valley, Plettenberg Bay and Wilderness. Also consider KwaZulu Natal’s South and North Coast and the Overberg also known as the Whale Coast.
Buy Knysna property or invest Overberg property.
Thursday, May 21, 2009
What Does Sale By Private Tender Mean?
Sale by private tender is becoming more and more popular with the rising number of urgent property sales. It is especially useful to sellers that need to meet deadlines and still achieve market-related prices. The question is: What exactly does this selling option involve?
Sale by private tender is in many ways like a silent auction – interested parties submit their written offers before a certain date. Offers are not transparent, meaning parties are not aware of what other offers are being submitted. There are limited viewing or show days and the seller are not allowed to except an offer before a specific date. On the determined date the seller can accept or reject the offers.
A clear advantage of a private tender is that it is sure way to sell your home fast. The fact that potential buyers can’t see each other’s bids also means that all parties put in their highest possible bid in order to secure a sale. As a seller you are in no way forced to accept the highest bid.
However one of the biggest advantages of sale by private tender is that buyers are not at the mercy of banks’ strict lending criteria as no loans can be taken on the home. All transactions are strictly cash.
Sale by private tender is in many ways like a silent auction – interested parties submit their written offers before a certain date. Offers are not transparent, meaning parties are not aware of what other offers are being submitted. There are limited viewing or show days and the seller are not allowed to except an offer before a specific date. On the determined date the seller can accept or reject the offers.
A clear advantage of a private tender is that it is sure way to sell your home fast. The fact that potential buyers can’t see each other’s bids also means that all parties put in their highest possible bid in order to secure a sale. As a seller you are in no way forced to accept the highest bid.
However one of the biggest advantages of sale by private tender is that buyers are not at the mercy of banks’ strict lending criteria as no loans can be taken on the home. All transactions are strictly cash.
Tuesday, May 19, 2009
Common Mistakes When Selling Property
iAfrica asked Saul Greffen, CEO of ooba, to point out some of the common mistakes made by property sellers. Here are the nine selling flaws:
Overcrowded Rooms
Don’t overcrowd your rooms with furniture. This makes the room look small and not necessarily cosy.
Bright, Busy Carpets
Taste differs, so rather keep to something neutral.
Badly Built Extensions
A space that disrupts the flow and form of a house is not appealing.
Carpets in the Kitchen/Bathroom
Most buyers will be thinking of the cost of removing these carpets or presume that you are hiding something underneath them.
Too Many Colours
Buyers will definitely ask for money off should they not like your busy colour scheme.
Garden Gnomes
Hide these pieces because not everybody thinks they are cute.
Lime Scale and Dirt in the Bathroom
Get rid of grime and lime scale built-up. Buyers will remember the impression of an icky bathroom.
Gloomy Lighting
Bad lighting looks depressing compared to the cheerfulness that bright lighting offers.
Dirty Light Switches
Potential buyers might think there are something wrong with the wiring if light switches are dirty, so rather clean them properly.
Greffen concludes by saying that ignoring these things might be costlier than fixing them.
Overcrowded Rooms
Don’t overcrowd your rooms with furniture. This makes the room look small and not necessarily cosy.
Bright, Busy Carpets
Taste differs, so rather keep to something neutral.
Badly Built Extensions
A space that disrupts the flow and form of a house is not appealing.
Carpets in the Kitchen/Bathroom
Most buyers will be thinking of the cost of removing these carpets or presume that you are hiding something underneath them.
Too Many Colours
Buyers will definitely ask for money off should they not like your busy colour scheme.
Garden Gnomes
Hide these pieces because not everybody thinks they are cute.
Lime Scale and Dirt in the Bathroom
Get rid of grime and lime scale built-up. Buyers will remember the impression of an icky bathroom.
Gloomy Lighting
Bad lighting looks depressing compared to the cheerfulness that bright lighting offers.
Dirty Light Switches
Potential buyers might think there are something wrong with the wiring if light switches are dirty, so rather clean them properly.
Greffen concludes by saying that ignoring these things might be costlier than fixing them.
Wednesday, May 13, 2009
Knysna Property Sees First Quarter Growth
The first quarter of 2009 has seen the Knysna property market grow with around 28%. Alan Evans of Seeff Knysna said that their agency had 10 sales totaling R22,5 million and nine sales totaling R28,99 million. He added that although numbers were down by 10%, the value was up by 28%.
According to Evans most of these sales were Thesen Island property – two of which was over the R7 million mark. He added that the majority of these sales were cash transactions.
Another area that has seen growth is East London as it attracts many buyers from Guateng and the Free State looking to settle in smaller cities.
Tulbach is another area showing growth. This is mainly due to the realistically priced property that can be found in the Witzen Valley.
The information in this article is courtesy of Property24.
According to Evans most of these sales were Thesen Island property – two of which was over the R7 million mark. He added that the majority of these sales were cash transactions.
Another area that has seen growth is East London as it attracts many buyers from Guateng and the Free State looking to settle in smaller cities.
Tulbach is another area showing growth. This is mainly due to the realistically priced property that can be found in the Witzen Valley.
The information in this article is courtesy of Property24.
Thursday, April 23, 2009
Advantages of Renting
The information in this article is courtesy of iAfrica (Why renting rules … - 23 April 2009).
Tough lending criteria and high deposits have made it impossible for many to buy property. Renting hasn’t just become a reality for those who can’t afford to buy, but also for people who feel like they are spending the best years of their lives with a financial ball and chain around their ankles. Here is why most people prefer to rent:
A lot of people recon that you are throwing water down the drain by renting, but if you take in consideration the amount of money you save when renting, this statement might be nothing but a cliché.
Renting means you pay a monthly fee, which includes all repairs and maintenance should something break. You as the tenant know exactly what amount of money you will spend on you accommodation and you don’t have to anticipate extra costs.
In the first few years of ownership, most of what you're paying into your bond goes to interest, not the capital. Isn’t that almost like throwing money into the water? Also, homeowners needs to be prepared for all other expenses like property taxes, levies, insurance, maintenance fees etc. You might be better of investing in stocks.
Renting is a great option for families that want to expand but can’t buy a bigger property. Renting deposits are relatively low and you can look forward to getting you deposit back. This way your family will have the space they need without breaking the bank.
Renting is a hassle-free way of living without responsibility towards the property you live in. Let the landlord take care of everything.
Renting is an easy way of not tying yourself down. You simply give notice and you are free to go. If you are planning on moving, or if you require traveling a lot, it might be easier to rent as maintenance and costs are low.
Tough lending criteria and high deposits have made it impossible for many to buy property. Renting hasn’t just become a reality for those who can’t afford to buy, but also for people who feel like they are spending the best years of their lives with a financial ball and chain around their ankles. Here is why most people prefer to rent:
A lot of people recon that you are throwing water down the drain by renting, but if you take in consideration the amount of money you save when renting, this statement might be nothing but a cliché.
Renting means you pay a monthly fee, which includes all repairs and maintenance should something break. You as the tenant know exactly what amount of money you will spend on you accommodation and you don’t have to anticipate extra costs.
In the first few years of ownership, most of what you're paying into your bond goes to interest, not the capital. Isn’t that almost like throwing money into the water? Also, homeowners needs to be prepared for all other expenses like property taxes, levies, insurance, maintenance fees etc. You might be better of investing in stocks.
Renting is a great option for families that want to expand but can’t buy a bigger property. Renting deposits are relatively low and you can look forward to getting you deposit back. This way your family will have the space they need without breaking the bank.
Renting is a hassle-free way of living without responsibility towards the property you live in. Let the landlord take care of everything.
Renting is an easy way of not tying yourself down. You simply give notice and you are free to go. If you are planning on moving, or if you require traveling a lot, it might be easier to rent as maintenance and costs are low.
Thursday, April 16, 2009
Property Prices and Crime
The information in this article is courtesy of Realestateweb (Crime and your property’s value – 15 April 2009).
According to the FNB Residential Property Barometer Q1 2009, 10% of total sellers of residential property are selling because of safety and security reasons.
The Barometer shows that Gauteng showed 12% of seller moving for safety reasons and the Eastern Cape 17%. KwaZulu Natal showed 6% with the Western Cape having 5% of the province’s sellers moving because of crime.
John Loos, FNB Property Strategist, are also of the opinion that more and more people are moving to secure places such as gated communities and complexes compared to freehold homes.
However, Loos explains, the impact of crime on the property market affects the long term of property performances in the sense that property owners have to spend more money on crime prevention and security measures in their properties.
This does not mean that there will be a sudden increase in property prices in secure areas. Loos recons that the turn of the market might see prices rising in places conceived as safe and secure.
Loos said to keep in mind that people also move to gated communities as they are convenient and offers the “lock up and go” option.
The current situation in South Africa shows that property prices in places like Dainfern in Johannesburg are holding up nicely, but this might also mean that the wealthy people living in these areas have more cash, so they are not as interest rate sensitive.
Loos added that Johannesburg is the business hub of Southern Africa and businessmen has no choice but to live close to this city. These businessmen are more likely to live in safer places close to Johannesburg.
According to the FNB Residential Property Barometer Q1 2009, 10% of total sellers of residential property are selling because of safety and security reasons.
The Barometer shows that Gauteng showed 12% of seller moving for safety reasons and the Eastern Cape 17%. KwaZulu Natal showed 6% with the Western Cape having 5% of the province’s sellers moving because of crime.
John Loos, FNB Property Strategist, are also of the opinion that more and more people are moving to secure places such as gated communities and complexes compared to freehold homes.
However, Loos explains, the impact of crime on the property market affects the long term of property performances in the sense that property owners have to spend more money on crime prevention and security measures in their properties.
This does not mean that there will be a sudden increase in property prices in secure areas. Loos recons that the turn of the market might see prices rising in places conceived as safe and secure.
Loos said to keep in mind that people also move to gated communities as they are convenient and offers the “lock up and go” option.
The current situation in South Africa shows that property prices in places like Dainfern in Johannesburg are holding up nicely, but this might also mean that the wealthy people living in these areas have more cash, so they are not as interest rate sensitive.
Loos added that Johannesburg is the business hub of Southern Africa and businessmen has no choice but to live close to this city. These businessmen are more likely to live in safer places close to Johannesburg.
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