﻿<?xml version="1.0" encoding="utf-8"?><rss version="2.0" xmlns:blogChannel="http://backend.userland.com/blogChannelModule"><channel><title>SAHomes4Sale RSS Feeds</title><link>http://www.sahomes4sale.co.za/</link><description>South Africa Property Portal - Property Industry News</description><copyright>Copyright 2006-2007 DataTrac Software Solutions</copyright><generator>Property News RSS for SAHomes4Sale</generator><item><title>Use your Head and not your Heart</title><link>http://www.sahomes4sale.co.za/newsdetail.asp?newsid=691</link><description><![CDATA[Article By Lea Jacobs 25 Aug 2011

It is extremely unlikely that anyone would walk into an investment broker, hand over a million Rand and walk out again. Strangely enough very often this is exactly what happens when landlords decide to rent out property. Choosing a good rental agent who is going to protect your asset often doesn’t come into play and many give little regard to what a service like this should offer.


Logically, this is foolish. With new laws protecting the rights of tenants, it is more important than ever that the person you employ not only knows his/her job, but actually does it properly. This is particularly relevant, although not strictly reserved, for those who own property remotely from where they reside.


While the right choice of tenant is vital, so too is the ability of an agent to keep a firm eye on what is going on. Assumptions play no role in property investment and finding the right person to oversee this very expensive asset is a must. The easiest and perhaps the best way of finding a good rental agent is by asking around. Word of mouth will always be the best form of advertising and any agent that has earned a good reputation in a given area should be considered.


There are a number of questions that landlords should ask before utilising the services of an agent, including how the agency’s books are administered, what services they offer and what systems are in place if a tenant defaults on a rental payment. As with any business, a rental agent is often only as good as the team that runs it. Maintenance is of particular importance to absentee landlords; does the agency have the right maintenance people on board that can keep the property in ship-shape condition and deal with emergency repairs as required?


Another aspect which anyone should consider before handing over the reins is whether the agency concerned is registered with the correct authorities. Any person who deals in property must be registered with the Estate Agency Affairs Board whether or not they actively sell property. One of the most crucial parts of renting out a property is securing the rental every month. Find out how many late payers or rental defaulters are on the agency’s books. Getting a clear idea of how the agency deals with erring tenants is one of the most important aspects of the entire process. A written mandate covering all duties and obligations by the letting agent is obligatory.


For absentee landlords, having a reputable agent looking after the property is even more of a necessity. Coastal properties in particular generally need more maintenance than those in inland areas and having an agent that regularly checks on the home is a must. Holiday rentals are a completely different ball game and finding a trustworthy agent to oversee both the contents of the home as well as collecting the rentals is sure to keep holidaymakers coming back for more.


You get what you pay for and choosing to go with a rental agent purely because they are cheaper than the rest is not necessarily a good idea. A good agency is effectively worth its weight in gold and will probably end up saving you money at the end of the day. ]]></description><pubDate>2011/08/26 12:00:00 AM</pubDate></item><item><title>Rental leases: what you should know</title><link>http://www.sahomes4sale.co.za/newsdetail.asp?newsid=690</link><description><![CDATA[It is important for tenants to understand the information contained in rental leases as prescribed in the Consumer Protection Act.

Q: Have just signed a rental lease and paid the required deposit. Less than 48 hours later, I found out that my work load will be reduced, as a result, will not be able to pay the monthly rental as per the lease. Can we get our deposit back as we have not yet moved into the property?

A: Marlon Shevelew, partner at Marlon Shevelew & Associates says assuming the lease was signed post the Consumer Protection Act, meaning after 1 April 2011, the tenant can cancel the lease on a five business days’ notice, if they entered the lease as a result of direct marketing.

If the signing of the lease was not as a result of direct marketing, there is no right of cancellation on such short notice.

At best, the tenant would have a right to cancel on 20 business days’ notice and subject to a reasonable cancellation fee.  A deposit, says Shevelew, would be the minimal amount the landlord could retain as a penalty, if not more.

He adds that the rights of landlords and tenants are embodied in the Rental Housing Act and the Unfair Practise Regulations.

]]></description><pubDate>2011/08/25 12:00:00 AM</pubDate></item><item><title>Buying property for investment</title><link>http://www.sahomes4sale.co.za/newsdetail.asp?newsid=689</link><description><![CDATA[In recent years, South African property has been an excellent investment, particularly in the most sought-after coastal regions, where prices have risen fastest.

There are various kinds of property investment. Your home is an investment in that it provides you with rent-free accommodation. It may also yield a return in terms of increased value (a capital gain), although that gain may be difficult to realise unless you trade down or move to another region or country where property is cheaper.

Of course, if you buy property other than for your own regular use, e.g. a holiday home, you will be in a position to benefit from a more tangible return on your investment. There are four main categories of investment property:

- A holiday home, which can provide your family and friends with rent-free accommodation while (hopefully) maintaining or increasing its value; you may be able to let it to generate supplementary income.

- A home for your children or relatives, which may increase in value and could also be let when not in use to provide an income.

- A business property, which could be anything from a private home with bed and breakfast or guest accommodation to a shop or office.

- A property purchased purely for investment, which could be a capital investment or provide a regular income, or both. In recent years, many people have invested in property rather than shares or savings to provide an income on their retirement.

A property investment should be considered over the medium to long term, i.e. a minimum of five and preferably 10 to 15 years. Bear in mind that property isn’t always ‘as safe as houses’ and investments can be risky in the short to medium term. You must also take into account income tax, if a property is let, and property taxes. Capital gains tax is charged at normal income tax rates in South Africa, and you may be liable for tax on any profit made if the property isn’t your main residence. You also need to recoup purchase costs of 10 to 12 percent when you sell.

When buying to let, you must ensure that the rent will cover the mortgage (if applicable), running costs and void periods (when the property isn’t let). Bear in mind that rental rates and letting seasons vary with the region and town, and an area with high rents and occupancy rates today may not be so fruitful in the future. Gross rental yields (the annual rent as a percentage of a property’s value) are from around 5 to 10 percent per year in most areas (although gross yields of 15 percent or more are possible), and net yields (after expenses have been deducted) 2 to 3 percent lower. Yields vary considerably with the region or city and the type of property.

Before deciding to invest in a property, you should ask yourself the following questions:

- Can I afford to tie up capital in the medium to long term, i.e. at least five years?

- How likely is the value of the property to rise during this period and by how much?

- Can I rely on a regular income from my investment? If so, how easy will it be to generate that income, e.g. to find tenants? Will I be able to pay the mortgage if the property is empty and, if so, for how long?

- Am I aware of all the risks involved and how comfortable am I with taking those risks?

- Do I have enough information to make an objective decision?

Article courtesy of: Just Landed
]]></description><pubDate>2011/08/24 12:00:00 AM</pubDate></item><item><title>Real Estate Industry Defies -Shock- Bill</title><link>http://www.sahomes4sale.co.za/newsdetail.asp?newsid=688</link><description><![CDATA[Real estate industry representatives have officially lodged an objection to a piece of national legislation which could have disastrous consequences for South Africa's property market...

Dubbed the Property Rates Amendment Bill, the new legislation could effectively compel those who own more than one property to pay commercial rates for additional properties.

Bryan Biehler, MD of Huizemark property group and an instrumental driver behind the objection says the manner in which the Bill was introduced is reprehensible. "It appears to be a deliberate and pre-orchestrated attempt by government to try and pass a highly controversial piece of legislation unnoticed," Biehler alleges.

According to government, the Bill was apparently put forward for 'well publicised public hearings' in 2010 and was officially gazetted for comment on June 9th. However, the real estate industry at large claims to only have become aware of the proposed Bill in mid-July, shortly before the cut-off date for objection submissions on July 22nd 2011.

Adds Biehler: "There are in excess of over 1, 5 million properties currently being leased in South Africa. Should the Bill go ahead, these rental properties would, in all likelihood become unaffordable for people who cannot, or choose not to qualify for mortgages. Only the super wealthy would be able to afford second properties and the property market, which is already depressed, would go into a free-fall."

Following the initial outcry by various property entities, Deputy Minister Yunus Carrim issued a statement that the Bill had been misunderstood and that owners would not have to pay commercial rates on additional properties.

"The intention is to ensure that guest-houses, bed-and-breakfast establishments, small hotels and the like pay commercial rates. If necessary, we will amend the draft to make this clearer before submitting the Bill to parliament," stated Carrim.

His comments have not mollified the real estate industry. On July 20th, attorneys Cliffe Decker Hofmeyer formally submitted an objection to the Bill of behalf of the Institute of Estate Agents of South Africa (IEASA), the Estate Agents Holding Company Limited and the Estate Agents Joint Venture KZN.

In a nutshell the objection calls for transparency and a thorough overhaul of the Bill through "due process and not merely by a ministerial statement."

Concludes Biehler: "We are already fielding requests by investors to sell their rental property which is an indication of things to come should the Bill be passed. It's high time that Government acted responsibly and considered the economic and social ramifications of property legislation before ploughing ahead willy-nilly. Doing so threatens the interests of this vital sector which contributes about 8% to GDP and sends a very negative message to the rest of the world where property rights are sacrosanct."

Words Jackie Gray]]></description><pubDate>2011/08/23 12:00:00 AM</pubDate></item><item><title>Global house prices continue to fall</title><link>http://www.sahomes4sale.co.za/newsdetail.asp?newsid=687</link><description><![CDATA[Global house prices increased by only 1.8 percent in the year to March, the lowest annual rate of growth recorded since Q4 2009.

According to the Knight Frank Global House Price Index Q1 2011, in regional terms, Asia remains the top performing continent recording 8.4 percent growth over the last 12 months. This is down from 17.8 percent a year earlier.

Liam Bailey, head of residential research at Knight Frank told Property24 that overall, price growth for the countries tracked within the index has remained in positive territory since Q4 2009.

This he says has been largely as a result of the Asian housing market boom, which led in some cases to annual price inflation of between 30 and 40 percent in locations such as Hong Kong and Singapore.

“The anti-inflationary measures taken by Asian governments to cool their overheated housing markets in 2010 and 2011 have started to take effect and this has had a dampening effect on the index’s overall price growth,” says Bailey.

In Q1 2010, Singapore recorded annual price inflation of 24.1% and this fell to 10.5 percent in Q1 2011. House price growth in Hong Kong declined from 32.8 percent to 24.2 percent over the same period, he says. 

Other strong performing countries where governments are fighting to pull inflationary pressures under control were India (21.9 percent) and Taiwan (14.3 percent).

The weakest region was North America which saw a fall of 0.4 percent in values in the year to Q1 2011.

House prices in South Africa fell by 1.3 percent in the year to March 2011 as recorded in the index. In March 2010, the average house price was R1 051 997 but by March 2011, this figure had fallen to R1 038 322.  In the three months to March 2011, the average house price rose by 1.5 percent, explains Bailey.

Asked where the South African market is headed in the next few months to end of 2011, he says the market presents risks and opportunities.

Globally, sovereign debt concerns in US and Europe could weaken investor confidence. Secondly, interest rates in South Africa may have bottomed out and may start to rise in 2012.

“This could threaten first time buyer demand, which has been solid in recent months and an important driver of market activity.”

On opportunities, Bailey says there is growing evidence that an increasing number of homeowners are selling due to financial pressure and opting to rent. This move could boost supply and may attract more buy-to-let investors to the sales market.

“South Africa’s trade links with China (and other BRICs nations) have strengthened considerably in the past two years.”

According to the Department of Trade of Industry two-way trade between China and South Africa reached R119.7 billion in 2009. This means China surpassed the US as South Africa’s largest trading partner.

Bailey says the strongest performing housing markets have seen a convergence of factors such as high demand, constrained supply, significant wealth generation and benign economic conditions.

“Supply can be controlled but housing markets are also intrinsically linked to confidence.”

Government and monetary policy decisions such as maintaining interest rates at historical lows has helped to keep the momentum going in the western housing markets.

“We expect to see the current slowdown in global housing markets to continue, hitting a low point in Q4 2011 (assuming the Asian markets continue to cool and the government intervention is successful) but with a slow recovery in global house prices taking place in 2012,” adds Bailey.

Absa Home Loans property analyst, Jacques du Toit says the global housing market is very mixed. Some countries are showing growth while others are still under pressure.

“In South Africa, house price growth is very low at this stage largely as a result of the state of consumer finances,” says Du Toit.

He says household debt to disposable income is still relatively high at almost 77 percent. Many consumers are struggling with bad debt making it difficult for them to obtain credit.

Du Toit reckons the property market will continue to reflect economic and consumer finance conditions.

“I expect very low nominal price growth for 2011 with house prices expected to drop in real terms this year,” says Du Toit.

It appears that the global housing market continues to be somewhat in the doldrums and this seems likely to continue for the foreseeable future, says Dr Andrew Golding, chief executive officer of Pam Golding Properties.

“Our housing market started to turn down almost a year before the start of the global economic downturn and we have been in this down cycle for the best part of four years,” says Dr Golding.

He says the residential property market has held up relatively well from a pricing point of view with prices (generally) only between 10 and 20 percent down off the peak at the height of the cycle.

“The market remains subdued but resilient and this status quo is likely to remain for at least the rest of 2011 and possibly well into 2012.”

Dr Golding says they are seeing an increase in sales numbers and activity levels but the upward trend is slow rather than a rapid recovery.

He adds that key to the faster improvement in the residential market will be a relaxation of the current stringent bank lending criteria. – Denise Mhlanga ]]></description><pubDate>2011/08/23 12:00:00 AM</pubDate></item></channel></rss>
