14 April 2010
Where it's at and where it's going.
The South African property market is slowly gaining traction and provided lending institutions loan in a responsible manner and interest rates stay down, the market should grow by a positive, albeit modest, 9% this year.
Despite predictions that the local property market wouldn't start showing signs of recovery until 2010, things started to look up towards the end of last year and the market is already on an upward trend.
We were all prepared for a particularly gloomy 2009 but the market stabilised by September and house prices began rising by the end of the year. We believe that 2009 was nowhere near as bad as had been predicted. In fact, we believe it was actually a relatively good year for the South African property market, particularly in comparison with 2008, which was pretty dismal indeed.
Overall, the volume of property sales rose by 46% and turnover increased by 42%. House prices declined by 5% owing to the first two quarters of the year. Geffen is confident that the housing market will maintain this upward momentum as long as interest rates stay down.
There is still an excess of housing stock, particularly in certain price categories. This is due to repossessions and houses up for sale by owners who found they'd financially over-extended themselves as the recession took hold. Furthermore, stricter lending criteria and the National Credit Act have made it difficult for potential buyers to secure housing loans.
On the whole, there was waning interest in property because people were either too financially-strapped to buy houses or, against the backdrop of what was happening in the global housing market, decided that investing in property was too risky. All of this contributed to a lack of buyers and an over-supply of houses for sale. However, demand is picking up. To give you an example, this year we saw the especially notable sales of a property in Bryanston for R50 million and another in Sandhurst for R35 million. Also, the overall sales volumes being logged by our offices are currently 46% ahead of the volumes recorded at this time last year, and turnover is up a whopping 42%.
A slack in banks' lending criteria would be welcome because it would enable more people to qualify for loans and buy houses.
This would certainly help to stimulate movement and growth in the market. More importantly, it would give more people a chance to own their own home. However, lending institutions must lend responsibly otherwise it could be detrimental.
Geffen's advice to homeowners is to upgrade their properties now while the market is still warming up.
We offer property investment opportunities throughout South Africa and Europe
Wednesday, 14 April 2010
Friday, 29 January 2010
First-time buyer segment resilient
There is unflagging improvement in the residential market's first-time buyer segment, which rose from 14% of total buying in Q2 2009 to 19% in Q4 2009.
On top of that, it is expected to rise even further during the course of the year to comprise an even bigger share of total buying.
This was one of several positives in FNB's Residential Property Barometer for Q4 2009.
"The group probably benefits more than many others from the banks' recent relaxation of deposit requirements on home loans, as these buyers are probably a low savings group even by South Africa's weak savings standards," says John Loos, property economist at FNB.
"This source of demand is typically more cyclical than the overall market, and it is expected to rise to a higher percentage of the total in the coming quarters. I expect the growth in this segment to continue for another quarter or two.
"But it won't reach 30% of total buying like in the boom years," Loos said.
The other main positives emanating from the report are the reduction in selling time and greater price realism and affordability.
Where a property took on average 16 weeks and four days to sell in 3Q 2009, this figure dipped to 13 weeks and two days in Q4 2009. "This represents a big decline from the peak of 21 weeks and one day just two quarters ago."
In the final quarter of 2009, survey respondents reported that the overwhelming majority of sellers, i.e. 89%, still had to ultimately drop their asking price in order to make a sale. "This percentage was, perhaps surprisingly, up from the pervious quarter's 83%."
"However, the faster pace of the average sale suggests greater realism, not necessarily in the form of sellers deliberately asking for lower prices, but rather in terms of the demand side catching up, and buyers putting in stronger offers."
On the point of affordability, the report showed that the reasons for selling given by estate agents have begun to point towards a mildly better financial position of households.
"Downscaling due to financial pressure during the fourth quarter declined from 28% in Q3 to 24% in Q4. The percentage of downscaling sellers at the higher end of the market is noticeably less than the lower end."
"Simultaneously, selling in order to upgrade rose further from 12% of total sales to 15% over the same two quarters."
Loos says 52% of agents surveyed anticipate better activity in Q1 2010 when compared with Q4 2009.
But the report also had some negative findings, such as the state of the buy-to-let market, indications that the growth trend is nearing its end and a slight increase in emigration as a selling factor.
Loos said the start of a declining growth trend started appearing in Q4. "We'll start seeing a plateau in the demand for houses as the effect of lower interest rate cuts starts wearing thinner.
However, 2009's fourth quarter still saw positive growth to the tune of 23,7%, which is strong but lower than the 36,8% of Q3.
"The buy-to-let market has showed no significant improvement when its activity is expressed as a percentage of total activity. Its share of total buying is 13%, which is unchanged from 2009's third quarter."
Emigration selling expressed as a percentage of total sales rose slightly from 6% in the previous quarter to 7% in Q4. "This suggests that after the strong downward trend in this percentage, from the 20% high at a stage of 2008, the rate of emigration selling may be levelling out."
On top of that, it is expected to rise even further during the course of the year to comprise an even bigger share of total buying.
This was one of several positives in FNB's Residential Property Barometer for Q4 2009.
"The group probably benefits more than many others from the banks' recent relaxation of deposit requirements on home loans, as these buyers are probably a low savings group even by South Africa's weak savings standards," says John Loos, property economist at FNB.
"This source of demand is typically more cyclical than the overall market, and it is expected to rise to a higher percentage of the total in the coming quarters. I expect the growth in this segment to continue for another quarter or two.
"But it won't reach 30% of total buying like in the boom years," Loos said.
The other main positives emanating from the report are the reduction in selling time and greater price realism and affordability.
Where a property took on average 16 weeks and four days to sell in 3Q 2009, this figure dipped to 13 weeks and two days in Q4 2009. "This represents a big decline from the peak of 21 weeks and one day just two quarters ago."
In the final quarter of 2009, survey respondents reported that the overwhelming majority of sellers, i.e. 89%, still had to ultimately drop their asking price in order to make a sale. "This percentage was, perhaps surprisingly, up from the pervious quarter's 83%."
"However, the faster pace of the average sale suggests greater realism, not necessarily in the form of sellers deliberately asking for lower prices, but rather in terms of the demand side catching up, and buyers putting in stronger offers."
On the point of affordability, the report showed that the reasons for selling given by estate agents have begun to point towards a mildly better financial position of households.
"Downscaling due to financial pressure during the fourth quarter declined from 28% in Q3 to 24% in Q4. The percentage of downscaling sellers at the higher end of the market is noticeably less than the lower end."
"Simultaneously, selling in order to upgrade rose further from 12% of total sales to 15% over the same two quarters."
Loos says 52% of agents surveyed anticipate better activity in Q1 2010 when compared with Q4 2009.
But the report also had some negative findings, such as the state of the buy-to-let market, indications that the growth trend is nearing its end and a slight increase in emigration as a selling factor.
Loos said the start of a declining growth trend started appearing in Q4. "We'll start seeing a plateau in the demand for houses as the effect of lower interest rate cuts starts wearing thinner.
However, 2009's fourth quarter still saw positive growth to the tune of 23,7%, which is strong but lower than the 36,8% of Q3.
"The buy-to-let market has showed no significant improvement when its activity is expressed as a percentage of total activity. Its share of total buying is 13%, which is unchanged from 2009's third quarter."
Emigration selling expressed as a percentage of total sales rose slightly from 6% in the previous quarter to 7% in Q4. "This suggests that after the strong downward trend in this percentage, from the 20% high at a stage of 2008, the rate of emigration selling may be levelling out."
No stimulus for property market
The property market will have to get by without the stimulus of a series of rate cuts, as it is unlikely to enjoy much interest rate relief during 2010.
The property market will have to get by without the stimulus of a series of rate cuts, as it is unlikely to enjoy much interest rate relief during the course of 2010.
This is the word from Brian Falconer, CEO of Colliers Residential in response to the SA Reserve Bank Monetary Policy Committee's decision to leave the repo rate unchanged. It has now remained unchanged since August last year, at 7%.
This leaves the prime rate at 10,5%, which is still too high to stimulate the property market, says Falconer.
"We can understand the Reserve Bank's reluctance to afford debt-strapped consumers a further 50 basis point cut, but it is disappointing that our interest rates remain so high," says Falconer.
"While there are a few signs of recovery in the property market, notably in upward house prices, other indicators remain negative.
"For instance, the total value of building plans passed by larger municipalities decreased by 23,1%, or R17,4 billion, in the first 11 months of 2009, as reported by Statistics South Africa.
"This is a true leading indicator, and it tells us that consumer and investor confidence in the property market remains low.
"Of particular concern to us is the fact that the largest decrease in approved business plans was for residential buildings, which fell by 38%, or R13.9 billion. This is a clear indication that the market will remain sluggish during 2010 without the external stimulus a rate cut would have provided."
While Falconer has understanding for the Reserve Bank's decision, he points out that there was significant favourable data to have led to a different decision:
At 5.8%, inflation is under control. Specifically, food inflation did not spiral out of control over the Christmas season.
Festive season retail figures were down at their lowest level for a decade, according to preliminary sales data.
While some commentators have viewed this as a consequence of job losses caused by the recession, another view is that people are concerned about incurring additional debt - credit extension was down 1,59% year on year in November 2009.
This would mean that the Reserve Bank's policies regarding credit have succeeded in their intent.
Despite the record cold snap in the northern hemisphere, oil prices have remained lower than expected, keeping a lid on inflation.
Against this, though, are the looming Eskom price increases and anticipated inflationary inputs from the Soccer World Cup.
"On balance, the Reserve Bank may have made a decision that is in the country's broader interests, but from a property perspective, we would hope for a little more latitude next time around," says Falconer.
"The property market needs positive stimulation, and we hope it will come around later this year. But for now, we have to get by with what we have".
Source: I-Net Bridge
The property market will have to get by without the stimulus of a series of rate cuts, as it is unlikely to enjoy much interest rate relief during the course of 2010.
This is the word from Brian Falconer, CEO of Colliers Residential in response to the SA Reserve Bank Monetary Policy Committee's decision to leave the repo rate unchanged. It has now remained unchanged since August last year, at 7%.
This leaves the prime rate at 10,5%, which is still too high to stimulate the property market, says Falconer.
"We can understand the Reserve Bank's reluctance to afford debt-strapped consumers a further 50 basis point cut, but it is disappointing that our interest rates remain so high," says Falconer.
"While there are a few signs of recovery in the property market, notably in upward house prices, other indicators remain negative.
"For instance, the total value of building plans passed by larger municipalities decreased by 23,1%, or R17,4 billion, in the first 11 months of 2009, as reported by Statistics South Africa.
"This is a true leading indicator, and it tells us that consumer and investor confidence in the property market remains low.
"Of particular concern to us is the fact that the largest decrease in approved business plans was for residential buildings, which fell by 38%, or R13.9 billion. This is a clear indication that the market will remain sluggish during 2010 without the external stimulus a rate cut would have provided."
While Falconer has understanding for the Reserve Bank's decision, he points out that there was significant favourable data to have led to a different decision:
At 5.8%, inflation is under control. Specifically, food inflation did not spiral out of control over the Christmas season.
Festive season retail figures were down at their lowest level for a decade, according to preliminary sales data.
While some commentators have viewed this as a consequence of job losses caused by the recession, another view is that people are concerned about incurring additional debt - credit extension was down 1,59% year on year in November 2009.
This would mean that the Reserve Bank's policies regarding credit have succeeded in their intent.
Despite the record cold snap in the northern hemisphere, oil prices have remained lower than expected, keeping a lid on inflation.
Against this, though, are the looming Eskom price increases and anticipated inflationary inputs from the Soccer World Cup.
"On balance, the Reserve Bank may have made a decision that is in the country's broader interests, but from a property perspective, we would hope for a little more latitude next time around," says Falconer.
"The property market needs positive stimulation, and we hope it will come around later this year. But for now, we have to get by with what we have".
Source: I-Net Bridge
Friday, 11 December 2009
Global housing on the mend - December 2009
Investors across the globe are starting to return to residential property markets, following what has arguably been one of the longest and strongest real estate slumps the world has ever seen.
The Knight Frank global house price index for third quarter 2009 released earlier this week shows that house prices are now rising in almost 70% of the locations tracked by the British property group, compared to less than 50% in second quarter 2009. Knight Frank compares house price movements in 42 countries.
Liam Bailey, head of residential research at Knight Frank, says although house prices in almost 60% of the countries included in the index are still lower than they were a year ago, most markets have now turned the corner.
Singapore reported the biggest quarterly jump in prices with growth of 15,2% in third quarter. That was followed by Hong Kong (6,3%), Canada (4,9%), Australia (4,2%) and New Zealand (4,2%). South Africa ranks as the sixth fastest growing housing market in Knight Frank's index, with prices up 3,8% in the three months to September 2009 (quarter-on-quarter).
The UK and US, two of the countries hardest hit by the credit crunch and global recession, are also back in positive growth territory with quarterly price increases of 3,7% and 3,2% respectively.
On an annual basis, Israel is now the world' fastest growing housing market with prices rising 13,7% in the year to September 2009. That was followed by Austria (9,7%), Malta (9,7%) and Switzerland (7%). South Africa ranks 15th in the annual growth stakes with prices up 1,3% over the 12-month period.
Dubai is the biggest loser, with prices sliding a massive -47% in third quarter 2009 year-on-year (y/y). There are also a few European countries where prices are still falling on the back of what appears to an oversupply of stock. These include Spain, Denmark and Ireland.
Bailey says Dubai's recent debt woes have no doubt dented investor confidence in that country. The problems now seen in Dubai's housing market underscore the fact that the global housing recovery will not necessarily be smooth sailing, says Bailey.
However, he believes that any further house price falls are likely to be corrections rather than the start of another round of drastic reductions.
Link
Investors across the globe are starting to return to residential property markets, following what has arguably been one of the longest and strongest real estate slumps the world has ever seen.
The Knight Frank global house price index for third quarter 2009 released earlier this week shows that house prices are now rising in almost 70% of the locations tracked by the British property group, compared to less than 50% in second quarter 2009. Knight Frank compares house price movements in 42 countries.
Liam Bailey, head of residential research at Knight Frank, says although house prices in almost 60% of the countries included in the index are still lower than they were a year ago, most markets have now turned the corner.
Singapore reported the biggest quarterly jump in prices with growth of 15,2% in third quarter. That was followed by Hong Kong (6,3%), Canada (4,9%), Australia (4,2%) and New Zealand (4,2%). South Africa ranks as the sixth fastest growing housing market in Knight Frank's index, with prices up 3,8% in the three months to September 2009 (quarter-on-quarter).
The UK and US, two of the countries hardest hit by the credit crunch and global recession, are also back in positive growth territory with quarterly price increases of 3,7% and 3,2% respectively.
On an annual basis, Israel is now the world' fastest growing housing market with prices rising 13,7% in the year to September 2009. That was followed by Austria (9,7%), Malta (9,7%) and Switzerland (7%). South Africa ranks 15th in the annual growth stakes with prices up 1,3% over the 12-month period.
Dubai is the biggest loser, with prices sliding a massive -47% in third quarter 2009 year-on-year (y/y). There are also a few European countries where prices are still falling on the back of what appears to an oversupply of stock. These include Spain, Denmark and Ireland.
Bailey says Dubai's recent debt woes have no doubt dented investor confidence in that country. The problems now seen in Dubai's housing market underscore the fact that the global housing recovery will not necessarily be smooth sailing, says Bailey.
However, he believes that any further house price falls are likely to be corrections rather than the start of another round of drastic reductions.
Link
Thursday, 29 October 2009
South Africa - Exchange controls: limits and red tape relaxed
PRETORIA - Treasury has announced several measures designed to reduce the administrative burden of exchange controls. The limits of some exchange controls have also been relaxed, allowing individuals and business more freedom to put money overseas.
The Mini-Budget Statement says that South Africa continues to welcome foreign direct investment and encourages local firms that wish to diversify offshore from a domestic base .
One of the proposed reforms is to increase the amount a company may invest offshore tenfold, from the current limit of R50m to R500m. For individuals, the foreign capital allowance has been increased from R2m to R4m. The single discretionary allowance has been increased from R500 000 to R750 000.
The following relaxations are proposed for business transactions:
SA companies will be allowed to invest in Southern African Development Community (SADC) member countries through offshore intermediaries. The relaxation excludes investment in member states that are part of the Common Monetary Area.
Increasing the current R50m limit for company applications to undertake outward investment to R500m. Applications below this limit will be processed by authorised dealers, subject to all existing criteria and reporting obligations.
Removing the 180-day rule requiring companies to convert their foreign exchange into rand. However, South African companies are still required to repatriate export proceeds to South Africa.
Doing away with the R250 000 limit on advance payments for imports.
Allowing South African companies to open foreign bank accounts for permissible purposes without prior approval, subject to reporting obligations.
Replacing the current paper-based monitoring system of exports (Form F178) with a more efficient electronic system in due course.
Treasury is also trying to boost foreign direct investment by relaxing borrowing restrictions for non-residents. It has abolished a rule which restricts borrowing for foreign direct investment by non-residents to a ratio of 3:1. According to this rule, non-residents must invest R1 for every R3 borrowed locally.
After it's abolishment, they will be able to finance 100% of their investment. However, the relaxation does not apply to emigrants, the acquisition of residential properties by non-residents, or any other financial transactions - such as portfolio investments, securities lending, hedging or repurchase agreements - by non residents. For these cases, the existing finance ratio of 1:1 still applies.
More announcements on these reforms will be provided in due course by the Reserve Bank, whose task is to police exchange controls.
The Mini-Budget Statement says that South Africa continues to welcome foreign direct investment and encourages local firms that wish to diversify offshore from a domestic base .
One of the proposed reforms is to increase the amount a company may invest offshore tenfold, from the current limit of R50m to R500m. For individuals, the foreign capital allowance has been increased from R2m to R4m. The single discretionary allowance has been increased from R500 000 to R750 000.
The following relaxations are proposed for business transactions:
SA companies will be allowed to invest in Southern African Development Community (SADC) member countries through offshore intermediaries. The relaxation excludes investment in member states that are part of the Common Monetary Area.
Increasing the current R50m limit for company applications to undertake outward investment to R500m. Applications below this limit will be processed by authorised dealers, subject to all existing criteria and reporting obligations.
Removing the 180-day rule requiring companies to convert their foreign exchange into rand. However, South African companies are still required to repatriate export proceeds to South Africa.
Doing away with the R250 000 limit on advance payments for imports.
Allowing South African companies to open foreign bank accounts for permissible purposes without prior approval, subject to reporting obligations.
Replacing the current paper-based monitoring system of exports (Form F178) with a more efficient electronic system in due course.
Treasury is also trying to boost foreign direct investment by relaxing borrowing restrictions for non-residents. It has abolished a rule which restricts borrowing for foreign direct investment by non-residents to a ratio of 3:1. According to this rule, non-residents must invest R1 for every R3 borrowed locally.
After it's abolishment, they will be able to finance 100% of their investment. However, the relaxation does not apply to emigrants, the acquisition of residential properties by non-residents, or any other financial transactions - such as portfolio investments, securities lending, hedging or repurchase agreements - by non residents. For these cases, the existing finance ratio of 1:1 still applies.
More announcements on these reforms will be provided in due course by the Reserve Bank, whose task is to police exchange controls.
Saturday, 3 October 2009
2010 Soccer World Cup Rentals - Johannesburg
Current rental accommodation available in Johannesburg for the 2010 Football World Cup.
For more information, please click on links below:
If you require any further info or if the properties above don't match your criteria, please drop me an e-mail at info@horizon-consultancy.com
Tuesday, 29 September 2009
Friday, 31 July 2009
Rolling with the punches......
A few months ago the subject of property was the latest buzzword around any braai or lunchtime table. Every person from the local dominee to the gardener wanted to get on into the action & when this was before the New Credit ACT (NCA) many people did.
But then ask yourself the question: When the gardener has 5 properties & he gives you advice on how to sublet your flat in Clifton, shouldn’t you think twice?
And then out of the blue, the NCA is introduced, bank credit dries up & invariably property growth goes into decline. Couple this with an increase in interest rates by a staggering 30% with rental income remaining constant, and you suddenly have a situation where buy-to-let has swine flu & you cannot get rid of it soon enough. And to top it all, we currently sit in a recession which is like the Boks losing to England………it affect all of us!!
So who in their right mind is going to look at property when they’re living day to day?
Here’s some food for thought on why real investors would consider buying in a tough market:
1) In property, you make your money when you buy:
The whole point of property is to buy so that your rental income covers the mortgage pay. And where does the rental income come from? The tenant! So look at what your tenant wants first, then go out and buy the property. You wouldn’t buy a property in De Aar & then expect tenants to fall over themselves wanting to sign the rental contract. (No offence to the people from De Aar, but rental demand might prove to be a little stronger in Joburg or Cape Town)
2) More interest rate reductions, more breathing space for the Landlord:
Since December 08, there has been a cumulative decrease of 4.5% in the interest rates. On a R1m property, this decrease is a saving of more than three thousand Rand per month! So more cash for the owner, means less chance of having to increase the rent which in turn decreases the chances of the tenant of leaving.
3) Property is a good investment – if you have the patience for it:
My personal strategy is to buy property, and never sell. The reason for this is the replacement cost of selling and then having to buy a similar or better property is very rarely achieved. You also have to factor in capital gains tax when you sell & if SARS decides you were speculating, you have to hand over 40% of what you made from the transaction. Building Materials & Labour also keep increasing, so an equivalent property will only get smaller, thereby decreasing the rental which in turn affects your bottom line.
4) Bargain, Bargain, Bargain – but do your homework:
Just because there are more people wanting to sell their properties, doesn’t mean that anything you buy now will net you millions. Markets are imperfect things & due to the flow of information, there is still a competitive advantage of one party over another. So just as word of warning, when supply far outweighs demand, remember to do the calculation ! Does the rent cover the mortgage? No. So move on to the next one.
5) In the long run, property will outperform all other assets:
59% of the world’s wealth is held in property. When Ray A Croc, the owner of McDonalds was asked what business he was in, he didn’t reply with the ‘burger business’. He just smiled and said the ‘property business’. So maybe (and I’m just throwing it out there J), if you stick to property it might not be as easy as selling shares, but at least you know that the chances of a receiving a steady stream of passive income, looks a whole lot better.
So in keeping in mind the points mentioned, remember the words of Warren Buffett, the most successful private investor in the World:
Put your eggs in one basket, watch that basket closely !!
But then ask yourself the question: When the gardener has 5 properties & he gives you advice on how to sublet your flat in Clifton, shouldn’t you think twice?
And then out of the blue, the NCA is introduced, bank credit dries up & invariably property growth goes into decline. Couple this with an increase in interest rates by a staggering 30% with rental income remaining constant, and you suddenly have a situation where buy-to-let has swine flu & you cannot get rid of it soon enough. And to top it all, we currently sit in a recession which is like the Boks losing to England………it affect all of us!!
So who in their right mind is going to look at property when they’re living day to day?
Here’s some food for thought on why real investors would consider buying in a tough market:
1) In property, you make your money when you buy:
The whole point of property is to buy so that your rental income covers the mortgage pay. And where does the rental income come from? The tenant! So look at what your tenant wants first, then go out and buy the property. You wouldn’t buy a property in De Aar & then expect tenants to fall over themselves wanting to sign the rental contract. (No offence to the people from De Aar, but rental demand might prove to be a little stronger in Joburg or Cape Town)
2) More interest rate reductions, more breathing space for the Landlord:
Since December 08, there has been a cumulative decrease of 4.5% in the interest rates. On a R1m property, this decrease is a saving of more than three thousand Rand per month! So more cash for the owner, means less chance of having to increase the rent which in turn decreases the chances of the tenant of leaving.
3) Property is a good investment – if you have the patience for it:
My personal strategy is to buy property, and never sell. The reason for this is the replacement cost of selling and then having to buy a similar or better property is very rarely achieved. You also have to factor in capital gains tax when you sell & if SARS decides you were speculating, you have to hand over 40% of what you made from the transaction. Building Materials & Labour also keep increasing, so an equivalent property will only get smaller, thereby decreasing the rental which in turn affects your bottom line.
4) Bargain, Bargain, Bargain – but do your homework:
Just because there are more people wanting to sell their properties, doesn’t mean that anything you buy now will net you millions. Markets are imperfect things & due to the flow of information, there is still a competitive advantage of one party over another. So just as word of warning, when supply far outweighs demand, remember to do the calculation ! Does the rent cover the mortgage? No. So move on to the next one.
5) In the long run, property will outperform all other assets:
59% of the world’s wealth is held in property. When Ray A Croc, the owner of McDonalds was asked what business he was in, he didn’t reply with the ‘burger business’. He just smiled and said the ‘property business’. So maybe (and I’m just throwing it out there J), if you stick to property it might not be as easy as selling shares, but at least you know that the chances of a receiving a steady stream of passive income, looks a whole lot better.
So in keeping in mind the points mentioned, remember the words of Warren Buffett, the most successful private investor in the World:
Put your eggs in one basket, watch that basket closely !!
Thursday, 30 July 2009
NEW PROPERTY LAUNCH: 'Kelvin Manor', Johannesburg, South Africa
Horizon Consultancy & IPS have joined forces to bring you the 'Kelvin Manor' in Sandton, Johannesburg, South Africa.
This is an up market development on the doorstep of Sandton with units at R699 900 for a 2 bedroom, 1 bathroom apartment. With rental yields above 9%, this is definintely something to consider.
There are 2 ways in which you can become involved:Watch a video for 'Kelvin Manor' This video sets out the development visually & will answer any initial questions you may have.
You can also register for this property launch online so that you may be helped from the comfort of your own home.This registration will allow investors to interact directly with the developers so that any queries are dealt with immediatley.
Points of Consideration for 'Kelvin Manor':
This is an up market development on the doorstep of Sandton with units at R699 900 for a 2 bedroom, 1 bathroom apartment. With rental yields above 9%, this is definintely something to consider.
There are 2 ways in which you can become involved:Watch a video for 'Kelvin Manor' This video sets out the development visually & will answer any initial questions you may have.
You can also register for this property launch online so that you may be helped from the comfort of your own home.This registration will allow investors to interact directly with the developers so that any queries are dealt with immediatley.
Points of Consideration for 'Kelvin Manor':
- 5.7km from Sandton.
- Very little affordable accommodation in Sandton, yet demand for 5000 units.
- Sandton is the Financial Capital of Africa.
- Lifestyle Estate with club house, gym, swimming pool, tennis court, laundry, crèche and within a gated community.
- Walking distance to the Gautrain Station.
- Situated in leafy and green residential neighborhood.
- 2 bedroom, 1 bathroom & 2 parking spaces - R699 900, including costs.
- 100% financing is available.
- R15000 deposit secures !!
If you are interested in buying any unit(s), I will assist you with the entire purchasing process, including the rental management of the unit if you so require.
Eric S Doms
Managing Director
E-mail: eric@horizon-consultancy.com
Mobile: +44 (0)79 0630 9038
Fax no: +27 (0) 86 5292 395
PS: Join us on Twitter or Facebook for the latest property news !!
Wednesday, 8 July 2009
Into the Light - The State of the South African Economy
After months of denials, clever word play & sidestepping the question, Trevor Manual & Tito Mboweni have finally relented that South Africa
So why the sudden change in mood? Whatever happened to ‘We will weather the storm’ or ‘South Africa US UK
The Economy – Who is steering the ship when there’s no rudder?
According the Cees Bruggemans, chief economist for FNB, the economy grew by 3% in 2008 and contracted by 1-2% in 2009. This was mainly due to the global banking and credit crisis and its impacts on SA’s mining and industrial exports. But a rebound of 2-4% should be seen by 2010.
Our inflation outlook remains positive with signs of further decline from a height of nearly 14% in 2008 to 8.5% in 2009. The expected average in 2009 is 7.5%% whilst 2010 will see it fall into the SARB’s target range of 5%. But a lot of assumptions are taken into consideration for this outlook !! Assumptions such as a global deflation during 2009, coupled with mild inflation in 2010 as well as the ‘small chance’ of oil price fluctuations. (In Summary: Let’s get out the dartboard & have a fat stab at what things might be like)
The Property Market – All pain, No gain?
The inescapable truth is that the worst and most widespread economic recession since the 1930s continues to batter the housing market not only in the
According to Knight Frank, a major player in the international property market, there are a combination of factors that have contributed to the current decline in house prices. These include affordability, an increase in unemployment which in turn affects consumer confidence. With the recent 3.5% reduction in interest rates since December 08, South African banks have still decided to tighten their lending criteria ,as their outlook has changed from a national level to one of global sentiment. (So they’re actually comparing apples with pears……I hope Tito gives them all a fat klap !!)
Even with the current market perfectly suited to bargain buyers flushed with cash, the sales remain inconsistent proving that even these buyers are playing a waiting game for a clearer sign that the market has reached ground zero. The biggest problem that still remains is that houses are still highly unaffordable due to previously rapid property growth, low interest rates & high disposable incomes. In light of all that, maybe it’s not a bad thing that the tables now have turned from the heady days of rapid property growth. Otherwise, things could’ve been a lot worse than they are now.
The Upturn – What is that?
But is the doom and gloom we’re currently experiencing the start of things to come, or will an improvement be seen any time soon? (I’m hesitant to use the word recovery)
For the
If you take the 6-8 months that SA lags behind, we could see an improvement by the World Cup in 2010. Coupled with the continued investment in our country’s infrastructure & the international exposure gained from hosting the biggest event on the planet (Don’t forget the projected R21 billion cash injection that will be generated by the event) I therefore think it safe to say that the economy will be due to jumpstart back into action, by middle to end 2010.
As for now, remember that any recession is part of a cycle. Even when things seem to be at its darkest possible point, the cycle will turn & take us back into the light.
Do not go gentle into that good night. Rage, rage against the dying of the light – Dylan Thomas
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