Petrol breaks through R10

 

The retail price of petrol will increase by between 75 to 81c a litre next week, says the DME.

Petrol breaks through R10

Is it time to fix mortgage rates?

Is it time to fix mortgage rates?
2008/06/27

After ten consecutive interest rate hikes, homeowners are finding it difficult to meet their repayments. Many are considering fixing their rates to hedge against future hikes. Bond Finance expert Ian Wason says one should consider all the options before going out and looking for a fixed mortgage rate.
According to Wason, homeowners have two options: hang on, or get out of the property market altogether. If you have cut your budget again and again and can't seem to make ends meet you should consider selling some assets, as one thing is for sure, your situation will get worse as interest rates, oil and food prices continue to rise.
"Debt consolidation, remortgaging and reducing other monthly expenses should be looked at before people decide to fix their rates," says Wason. "We are seeing a lot of opinions as to where interest rates are going at the moment. These are just opinions, as nobody really knows. We are seeing a lot of 'false horizons' as to where of the top of the interest rate cycle is, purely because we have no idea where oil and food prices will go, and this is now what is causing the inflationary pressure, not the demand side driven by easy credit. "
"It was the combination of negative equity and a stalling economy that sent the UK property market down 35% in the early nineties. I believe the problems in SA at the moment are on a similar scale," he says.
Homeowners must not forget that the chances are they could rent the same property for less than half of what they are paying in mortgage repayments on a 100% mortgage.
Don't follow the trend if you can counter the knock
"While rates are rising at a speed that is crippling, it is important to remember that you don't have to stick with the rate that you got at the start of your current mortgage," says Wason. "So, after you have had your mortgage for a while you may be able to negotiate a better interest rate because you could be a far less risky client to the bank. If you fix your rate now, you may be negating the benefits that a variable rate would allow in the long term. It is important that you shop around for a better rate on your current mortgage before joining the wave of fixed rate enthusiasts."
In addition to this, he says the individual should also do a complete analysis of their expenses and try to reduce their insurance, bank and medical aid costs.
Remortgaging could be a better option, so shop around
Wason argues that while a fixed rate may be worth your while for the next 18 months, it is important to remember that your mortgage is going to last at least 20 years. In that time, you may well be able to negotiate a better rate on your bond as your salary increases or your reduced risk profile starts to take effect.
"South Africans need to get far more dedicated to shopping around for a better rate – they would be surprised what they could be saving themselves."
A Fixed rate could just cost you
He adds that going out and seeking a fixed rate mortgage can be costly because nobody knows how long the rates rise is going to continue. "While the mood at the moment seems to suggest that we should all go out and fix our mortgage rates, it is important to view this in light of your own situation."
"If you could be getting a better rate on a variable bond, you are better off trying to negotiate that. Don't simply call up and ask what fixed rate the bank could offer you."
Looking at the numbers
For a R500,001 mortgage, where your loan to value is less than 80%, you can currently fix your rate for the following rates:

For the same mortgage on a variable rate you should be getting a rate of Prime less 2% = 14% (with an interest rise of 1% scheduled in on Thursday) therefore your repayments are R6,217.63.
Another option would be SA Homeloans' interest only rate of 13.5%, giving you a repayment of R5,995. This is the lowest monthly commitment, but remember that you are not paying off any capital.
What should you do?
Wason says it is important to remember that everyone's situation is different. No option is best for everyone so you need to do your own budget, establish what your priorities are and take the mortgage that best suits your situation. Also remember that you can always change your mortgage product again, as you may decide to get an interest only mortgage, ride our these stormy times and switch back to a capital and repayment mortgage once interest rates start coming down or when you can afford to pay more in.
For more information contact ian@bondbusters.co.za. Click here to visit the website.

Is it time to fix mortgage rates?

Banks 'stand up' for borrowers

Banks 'stand up' for borrowers
2008/06/27

Banks have an important role to play not only in getting people into houses, but also in keeping them there, which is why they have been prepared to make some "tough calls" lately that could quite possibly lose them a substantial amount of new business.
Such calls include the controversial decision to re-introduce the deposit requirement for home loan borrowers.
Following on the heels of 10 consecutive interest rate rises and the introduction of the National Credit Act (NCA), the deposit requirement is likely to further reduce the number of potential buyers able to qualify for a home loan, "but is still considered necessary now to ensure that our customers are not exposed to over-indebtedness", he says.
Speaking at the Homenet real estate group's national conference recently, Luthando Vutula, the new head of home loans at Absa, said the bank believed that by doing this, it would assist customers to make better buying decisions because they would have to contribute financially themselves if they wished to go ahead with a purchase.
"And while we all breathed a sigh of relief earlier this month when the Reserve Bank confirmed a 50 basis points increase in the interest rate, we can't afford to assume this is the last increase we're going to see this year. As a responsible lender, we also need to ensure that customers buying homes today have enough room in their budgets to weather the storm of possible future interest rate hikes."
Looking ahead, he told conference delegates the next two to three years would see all players in the real estate industry having to innovate new ways of making money "while protecting our customers from short-term impacts that could derail their long-term investments".
Meanwhile, he said, now was the time for serious property investors to start shopping around. "The best time to buy will be in 2009," he predicted.
"Patient investors will then be spoiled for choice and will be able to build a portfolio that will yield good results in years to come."
In addition, he said that buying a home remained the single most important purchase any individual could make.
"While the dynamics of the real estate sector may have changed since the boom years, a home remains a good investment that sets the foundation for wealth generation. At the moment, buyers may just have to adjust their expectations and start with a smaller home to ensure future affordability. Then when the cycle turns they will be in a position to upgrade to something closer to their original aspirations."
For more information contact Martin Schultheiss on 031 266 9850 or click here to visit the website.

Banks 'stand up' for borrowers

Pitfalls that can delay transfer

Pitfalls that can delay transfer
2008/06/13

Sellers should be aware of pitfalls and hidden costs which can delay the registration of the transfer of a property.
Bev Nelson of Shepstone & Wylie Attorneys property department explains that if the property is sold with the assistance of an estate agent then the agent will usually provide a general sale agreement, which is required by law. "However, if there is no agent involved, or a specialized agreement is necessary, this will need to be drawn up by an attorney at a cost to the seller, unless the parties agree otherwise," she adds. Using an estate agent also carries estate agent's commission which is normally paid by the seller.
Sellers must be aware of their responsibilities once the agreement is signed and a conveyancer is appointed, advises Nelson. These include:
• The payment of all rates up to the date of transfer If the property is conventional,
• If the property is sectional title, all levies need to be paid up to the date of transfer.
• The cost of an electrical compliance certificate certifying that the property is reasonably safe, plus the cost of any repairs necessary in order for the certificate to be issued. This certificate is a legal requirement.
• The cost of an entomologist's certificate certifying that the property is free from wood-destroying insects (not white ants), plus the cost of any procedures (e.g. tents) necessary in order for the certificate to be issued. This is not a legal requirement however it is usually required by bondholders.
If the property is bonded at the time of selling then that mortgage bond will need to be cancelled simultaneously with the transfer of the property to the buyer. The bondholder will require a guarantee from the conveyancer that any balance owing on the bond will be satisfied on registration. "Therefore the balance owing on the bond will be settled out of the purchase price by the conveyancer before paying the balance of the purchase price to the seller. The seller is responsible for the costs of the cancellation of the bond," says Nelson.
If the property was not bonded then the seller should have the title deed. If the title deed has been lost or destroyed, application can be made to the deeds office for a certified copy. Once the Registrar is satisfied that the deed cannot be found he will issue a certified copy of the title deed which will, for all purposes, be treated as if it were the original. The seller is responsible for the cost of obtaining the copy.
Nelson warns that the seller should be careful to include an occupational rental clause in their sale agreement, as if the transfer is delayed and the buyer moves in, without this clause there will be no occupational rent payable. "Especially since most sale agreements include a clause that the agreement cannot be varied unless it is in writing and signed by both parties."
The seller should also note that the general position is that they will only be paid the purchase price and the risk of the property will only pass to the buyer, on registration of the transfer. However, this will be subject to the terms of the sale agreement, adds Nelson.

Pitfalls that can delay transfer

SA housing market still 10th best

SA housing market still 10th best
2008/06/11

Property markets in UK, Canada, New Zealand and Norway are struggling, with SA still the 10th best performing market globally.
South Africa is not the only country experiencing a rapid slowdown in house price growth. A report released last week on global housing markets by British based property group Knight Frank confirms that a number of other countries including the likes of the UK, Canada, New Zealand and Norway have also slipped from double digit to single digit growth territory over the past year.
The report ranks SA as the tenth best performing housing market among 34 countries in first quarter 2008 with growth of 8,8%. That's down from sixth position a year ago when SA house prices were still rising at 13,6%.
Overall global house price inflation came to an average 6,1% in first quarter 2008, down from 9,8% a year earlier. And although global house price inflation continues on its downward trend, there have been a few noticeable exceptions. Five out of 34 countries worldwide are still fetching house price growth of more than 20%, including Bulgaria (31,5%), Singapore (29,9%), Hong Kong (28,8%), Jersey (28%) and Russia (21,7%).
Seven countries have seen house prices dip into negative growth territory in first quarter 2008. These are Israel (-0,2%), Denmark (-0,7%), Japan (-0,7%), Germany (-5,2%), Ireland (-8,8%), Estonia (-10,7%) and Latvia (-20%).
Liam Bailey, head of residential research at Knight Frank, says there is no doubt that the number of markets where prices have fallen has increased. ``A year ago, 35% of the markets covered by Knight Frank's global house price index saw house price inflation in double figures. In first quarter 2008, this proportion had fallen to just 20%.'
Bailey notes that a number of markets have seen a sharp reversal of fortune since mid-2007 on the back of the sub-prime fall-out and the global credit crunch. The UK housing market has been particularly hard hit. In first quarter 2007, the UK was still the tenth best performing market in the world. It has since slipped to 24th position.
Bailey says the UK housing market is experiencing its most significant slowdown since the early 1990's. ``On almost every measure across the prime and mainstream markets and the new build sector, the market has shown worsening performance over the last six months.'
According to Bailey, the weak sentiment in the UK housing market is reflected across the wider economy, with consumer confidence, as measured by the NOP Index, at its lowest level since April 1994. With some regional and local market variations, house prices across the UK have been falling since September, with overall price growth of only 1,1% in first quarter 2008 (11% first quarter 2007). - Joan Muller

SA housing market still 10th best

Property owners: Watch the tax

Property owners: Watch the tax
2008/06/09

Property owners will need to keep their eye on tax changes that kick in at the start of 2009.
As of January 1, 2009 the definition of the dividend paid on property assets will change and this will make a significant difference to the way the secondary tax on companies (STC) will be handled.
Tax partner at Cameron & Prentice Chartered Accountants, David Warneke, illustrates the change by way of example.
"Say a close corporation purchased a building (as a capital asset) in 1990 for R2m. The value of the building on October 1, 2001 (the date on which capital gains tax became effective) was R5m and the value today is R12m.
"If the close corporation were to sell the building today for R12m, distribute the proceeds as a dividend to its members prior to January 1, 2009 and then deregister, the STC would be worked out on the post-2001 portion of the increase in value - that is, on R7m," he says.
Were the proceeds to be distributed after January 1, 2009, the STC would be calculated on the total gain - on R10m - resulting in additional STC of R272,727, assuming that there are no other reserves in the close corporation.
Many investors have utilised trust structures as a shelter against tax.
Warneke says that properties which are directly owned by a trust will not be subject to the same legislation. However, if the trust holds a controlling interest in a company or CC, which in turn owns a property, then this will be subject to the tax.
With this change in the way that gains will be treated, property owners will need to take a decision on which way the property market is headed.
Recently released poor figures relating to the residential property market and warnings from the head of a major real estate agency may encourage highly geared investors to consider exiting these positions.
Property investors should take into account the tax implications and make a call on their exposure to the market. - Marc Ashton, Fin24.com

Property owners: Watch the tax

Caution in market good for rentals

Caution in market good for rentals
2008/05/29

The effects that South Africa's rising cost of living and high interest rates is having on the property market's residential sales is no secret.
Sentiment has shifted from confidence to caution, however, the effects have been positive in the residential rental market.
"Potential home buyers are renting, placing their home-buying decisions on hold due to the diminished affordability of property. They want to observe what is happening with interest rates before they consider purchasing property. Therefore, the demand for rental properties has escalated dramatically," says Marsha Haupt, sales director at Betterbond.
Marsha notes that the first edition of the FNB Residential Property Barometer for the rental market in the first quarter of 2008 shows a positive picture of the rental market when compared with the main FNB Residential Property Barometer for the home buying market.
The FNB barometer also shows that on a scale of one to ten, the activity in the home buyers market is at a mediocre level of around 4,96, whereas the rental market's activity is above average at 8,4.
According to FNB Home Loans property strategist, John Loos, monthly rental repayments are considerably lower than 100% bond repayments, which make the rental option increasingly popular during these times of rising interest rates.
Investors are now "dipping their toes" back into the buy to let market. This is resulting in the recovery of the rental market.
People who have over-borrowed to purchase homes are experiencing cash flow problems. This has led to luxury or high bonded properties being placed on the market with urgency to sell. "For this reason we are seeing a stabilisation in the property market as properties are placed on sale at more realistic price levels.
"The gap between rental and bond repayment rates in metro areas is approximately 65% of bond repayments," says Haupt.
"Therefore on a bond of R500k, the repayment would be R6,585 whereas rental would be R4,300". In non-metro/coastal areas the gap is about 60%, with reference to the same example, the rent would be R3,900.
Developers are attracting investors with a buy-to-let promise. They assure investors of rental returns, however, it will not materialise if the investor is taking an 80% to 100% bond. This approach will make the developer rich but will most definitely place the inexperienced investor in financial hardship as the rental will not cover the bond repayment.
"In spite of the high interest rates, the slowing price growth is an opportunity for investors with money to buy. Properties are reaching more reasonable price levels and at some point interest rates will inevitably start to fall and prices will once again start to climb, providing good returns for investors," Haupt concludes.

Caution in market good for rentals

Major rate hike shock

Major rate hike shock

Economy

South Africans are in for the biggest interest rate jolt in a decade, as Reserve Bank governor Tito Mboweni considers a 200 basis point hike.

Finance24
Wednesday, 28 May 2008 23:45:00

Major rate hike shock

Residential building inflation up

Residential building inflation up
2008/05/23

South African residential building costs inflation measured 10,9% in the first quarter, up from a revised 6,8% in the previous quarter, the FNB Commercial Property Finance Residential Building Cost Index showed on Thursday.
The index reflects the average building cost per square metre, as charged by building contractors when winning tenders in the formal residential property sector. It excludes affordable and so-called "RDP" housing.
The average building cost per square metre was measured at R5,864 for the first quarter.
"However, this mild rise from the previous quarter comes at a time when residential market conditions are extremely weak, and contractor pricing power must be low, leading to the belief that input cost pressures are beginning to drive building cost inflation higher," said John Loos, FNB property strategist.
He added that if the uptick was the start of a longer trend, it would add to the woes of an industry already under pressure.
"Rising building cost inflation would probably slow the supply of new stock further," said Loos. - Tiisetso Motsoeneng, I-Net Bridge

Residential building inflation up

Land claims to miss target

Land claims to miss target
2008/05/23

The department of land affairs is going to miss its target of finalising all outstanding land claims by the end of this year.
Minister Lulama Xingwana admitted this in Parliament on Wednesday when she spoke in an extended committee of the National Assembly in the debate on her departmental budgets.
She said the commission for the restitution of land claims had settled more than 95% of total claims lodged, and was left with 4,998 very complex rural claims.
"A number of challenges are still confronting us in the finalisation of the outstanding land claims," she told MPs "As a result of these challenges, between 2% to 3% of these claims may not be finalised in this financial year."
The challenges she said included cases in the land claims court, and others disputed with landowners around land prices and the validity of the claims. There are other claims held up because of disputes around traditional leadership and boundaries, and because of community and family disputes.
The commission, she said remains committed to ensuring that all land claims are eventually settled, and to that end, a memorandum and an action plan for the finalisation of the outstanding claims had been submitted to Cabinet.
"The economic models for settling forestry claims and claims with mineral rights (for example Anglo American, Sappi, and Mondi) are in the final stages and should also assist in addressing some of the more challenging claims. We are working closely with the department of environmental affairs and tourism, SANParks and other agencies towards the finalisation of co-management agreements for the claims on protected areas." - Michael Hamlyn, I-Net Bridge

Land claims to miss target

Thabo Mbeki just loves the South Coast

The President of South Africa loves visiting the South Coast, even when he s got some serious work to do.
HANNES VAN SCHALKWYK REPORTS.
IF you were somebody important, say, perhaps the President of the Republic of South Africa, the last thing you'd want to do after two days of rigorous meet¬ings is to be questioned by a couple of news hungry, dispassionate journalists.
Especially not when all those meet¬ings were held on the sunny South Coast of Kwazulu- Natal and you didn't get the chance to take in the views, mingle with locals or play some golf on one of South Africa's most celebrated courses.
During the President's International Investment Council meeting held at the San Lameer Estate last Saturday and Sunday, journalists from as far afield as Johannesburg and Cape Town flocked to San Lameer, to try and obtain the latest scoop ..
After a brief report on the meeting, the president and members of the council were inundated with questions relating to serious political and financial issues.
These ranged from projected busi¬ness scenarios to the recent horrendous xenophobic attacks in Gauteng, and kept the president on his toes for about an hour.
The Herald, in a more light-hearted vein, then asked the president whether he had enjoyed his stay and what he thought about the South Coast, easing the tension at the briefing. He answered with a broad smile, "As you can see, members of the press came down to the South Coast quite willingly. The only problem, however, is that when you come down here for work you don't really have enough time to enjoy it. But maybe one day the South Coast Herald will invite me and I might come and visit."
After this the mood lightened and questions breezed by, until a rather cocky female journalist from a well known independent news broadcaster asked the President what he and Public Enterprises minister, Alec Erwin, "get up to" when the lights go out during load shedding.
After a brief stare-down and the cessation of giggles from fellow news hounds, the president calmly answered, "I go to bed."
She asked with some disbelief, "You go to bed?" He elaborated. "Yes. You can't read, you can't write. You can't even play golf on the carpet. So I go to bed. What do you do?"


Media gathering: President Thabo Mbeki and the Interactional investment Council are quizzed at the media briefing held at the San Lameer Estate last Sunday. P1130578


Quite Smile: President ;Thabo Mbeki answers questions during the in¬temational lnvestment Council media briefing held on the South Coast last Sunda . P1130592

March build plans passed drop 18,5%

March build plans passed drop 18,5%
2008/05/22

The value of South African recorded building plans passed at constant 2000 prices in March decreased by a telling 18,5% year-on-year (y/y) from a revised down 1% in February (previously down 11,1%), Statistics South Africa (Stats SA) data on Wednesday showed.
Residential building was the culprit as it recorded a 23% fall, while non-residential building was up 2,6%, but additions and alterations fell 20,7%.
That is the biggest fall in residential building since the –19,1% recorded in November 2007 and comes after an 8% increase noted in February.
The value of recorded building plans passed by larger municipalities at current prices during the first quarter of 2008 rose by 7,3% y/y compared with the first quarter of 2007. Two of the main categories of buildings contributed positively to this figure - non-residential buildings (18,7%) and additions and alterations (16,4%), Stats SA noted.
Building activity has come under a significant amount of pressure due to slowing housing demand and electricity shortages and delays in plans passed, and this is expected to continue. – I-Net Bridge
Readers' Comments
Have a comment or question about this article? Email us now..

March build plans passed drop 18,5%

1% June interest rate rise likely

 

1% Jun

1% June interest rate rise likely
2008/05/21

With April's rate of inflation having straddled the double digit barrier and apparently still unchecked in its upward trend, expectations of a 1% rate increase at the next Monetary Policy Committee (MPC) meeting on June 12 have firmed, according to a media release on property news website www.rodneyhayter.com.
Motivation behind such MPC boldness – it would be the first full percentage point increase since September 2002 – lies in the belief that the size of increase could deliver a knock out blow to less serious credit lending, according to Jeanne van Jaarsveldt, RE/MAX of SA finance and marketing director, who believes the MPC has little left in its armoury to rein inflation back into its target band of 4% to 6%.
Efficient Group chief economist Dawie Roodt also believes the MPC is now ready to try its hand with more psychological tactics when it reviews the increasingly bleak inflation situation in June.
Roodt points out that the Reserve Bank has a double role – "firstly to control inflation and secondly to curb inflation expectations", which he believes could prove effective with a 1% rise.
Bad news definitely for a property market already wilting from nine rate rises in the last 24 months and other extraneous, but equally sentiment damaging factors, but Roodt and Van Jaarsveldt believe an iron fist approach could serve a big enough market blow for the MPC to exclude further increases for the rest of the year.
According to van Jaarsveldt the size of such an increase would further dampen the property market, "but if it proved effective in arresting the need for further hikes then we could expect to see some restoration of market sentiment toward the end of the fourth quarter".
But Roodt only expects the gloom to lift early next year with conditions getting a little worse between now and then, pointing out the inevitable time lag between rates falling and a restoration of confidence in credit-driven home buyers.
Some cheer filtering through is the gathering attractiveness of investment activity, but the real opportunities, according to Roodt, are still a few months down the line when the market tightens further and especially if the MPC breaks the trend with a 1% hike, which John Loos, property economist at FNB, strongly discounts, given the MPC's stated reluctance to increase rates further.
"In fact, the MPC were even talking about the possibility of a quarter percent rise instead of a half percentage point at it's last meeting."
Loos strongly discounts the MPC resorting to any radical interest rate adjustments even if inflation data continues to deteriorate. Supporting Loos' view is the fact that the current key inflation drivers – oil and food prices – are essentially out of the MPC's sphere of direct influence.
John Roberts, managing director of mortgage originator Bond Approve, also discounts any drastic rate adjustments by the MPC. His view is based on the historical rate adjustments by the committee and the fact that inflationary drivers are largely out of the MPC's power.
However, he does see the probability of a further rise as does Absa's economics department who notes that March's jump in Private Sector Credit Extension (PCSE) to 26,6%, while not a deciding factor for the MPC, is a further disappointment following poor inflation numbers earlier in the month, believing it is unlikely that the slowdown in the real economy will allow the inflation-targeting SARB to leave rates on hold at the 12 June MPC meeting.

e interest rate rise likely

Show days 'dangerous' for agents

Show days 'dangerous' for agents
2008/05/17

Lately show houses have been an easy target for criminals, and with the glut of properties for sale now there's plenty to choose from. An agency group has published guidelines for its agents on how to protect themselves and the seller's property.
Lately show houses have been an easy target for criminals, and with the glut of properties for sale now there's plenty to choose from.
Johannesburg estate agents have for some time refrained from publicising the addresses of show houses until the last minute, often preferring to only give out the address to potential buyers after checking them out. An indication of how serious the situation has become was seen on Wednesday, when Rawson Properties announced the launch of a new dossier for its agents that includes information on how to protect themselves. In doing so, they also protect the seller's property, and help ensure the safety of potential buyers when visiting show houses.
While it is now a concern in the real estate marketing sector that open day show houses can be a security risk, it would be a great pity if they were dropped, says Tony Clarke, MD of Rawson Properties, because show days are still effective in selling property fast. The small firms with limited advertising budgets would be particularly hard hit, he says.
Clarke has drawn up three full pages of advice to Rawson agents on how to protect themselves and "keep ahead of the bad guys" in all situations, but especially at show houses.
Some of the key pointers mentioned in the document are:
• On entering a show house for the first time, Clarke advises, the agent should check all rooms and work out the most convenient escape routes, unlocking all deadbolt locks which might slow down an exit. Back doors, although often a handy for an escape, can lead into high walled yards, Clarke warns.
• When visitors arrive, agents are advised to note their car licence place numbers and when showing them the house the agent should walk behind, not lead.
• "Watch what prospects are doing at all times. Do not become preoccupied with viewing the home – and always expect the unexpected," says Clarke.
Clarke also advises agents to notify their office or a friend that they will call every hour – if they do not the colleague should contact the police at once.
"Neighbours should be asked to keep an eye on the property throughout the day. Above all, do not be in the house on your own – have a colleague or friend with you. If you become suspicious of a prospect, leave at once," writes Clarke.
In general, he says, agents should meet prospective buyers the first time in the company offices and then should insist on identification, giving the reason that "it is company policy". He advises them to find out as much as they can about the prospects, such as where they work, what they do, and how much they earn. "Ask many questions and be a good listener."
Clarke warns agents always to use their own car for viewings and to be familiar with the area in which the property is located.
Clarke's document for Rawson agents also includes advice on office safety and harassment, whether by telephone, stalking or direct approach.
"It is regrettable that we have to be aware of these matters," said Clarke, "but it is also true that crime can be prevented by adopting simple precautions. Our industry has an unusual number of women, whom criminals and psychopaths see as soft targets because in this job they have to work away from the security of their offices."
For more information contact Tony Clarke on 021 658 7100 or send an email to research@rawsonproperties.com.

Show days 'dangerous' for agents

Transfer Duty Act briefly explained

Transfer Duty Act briefly explained
2008/05/19

Transfer duty is a form of government tax that was introduced as long ago as the 17th century and is still relevant to most property transactions today.
Transfer duty, not to be confused with transfer fees or costs, is imposed in terms of the Transfer Duty Act ("the Act") and, generally speaking, it is payable when immovable property is acquired.
Transfer duty is payable by the purchaser to the South African Revenue Service (SARS) and is calculated as a percentage of the purchase price. The rates of transfer duty are specified in the Act. If no purchase price is payable or 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.
By way of example, using the current transfer duty rates, which have applied since 1 March 2006, transfer duty payable on a purchase price of R2m is calculated as follows:
- if the purchaser is a company, close corporation or trust, transfer duty is 8% of the purchase price = R160k
- if the purchaser is an individual, transfer duty is:
- 0% on the first R500k of the purchase price (R Nil);
- 5% on the amount from R500k to R1m (R25k); and
- 8% on the amount over R1m (R80k)
- Total transfer duty = R105k
Transfer duty is payable within six months from the date of acquisition. In most cases this will be six months from the date the sale agreement is signed. If the transfer duty is not paid within this time period, penalty interest will be charged by SARS.
In terms of the Act, the Deeds Office is not permitted to register a transfer unless there is proof that transfer duty has been paid or that no transfer duty is payable. This means that a purchaser is required to pay transfer duty prior to the transfer being lodged in the Deeds Office so that the conveyancer can obtain a transfer duty receipt or exemption certificate from SARS for submission to the Deeds Office.
A purchaser does not pay transfer duty in transactions where VAT is payable. This is where the seller is a VAT vendor and the sale of the property is in the course of the seller's business e.g. a property developer. In such instances, the purchaser will pay the purchase price and VAT to the seller who is then responsible for paying the VAT to SARS.
For more information contact 031 570 5300 or send an email.

Transfer Duty Act briefly explained

Middle segment price growth down

Middle segment price growth down
2008/05/09

According to the latest Absa house price index, released on Thursday, South African house prices in the middle segment of the market slowed to a nominal 6,8% year-on-year (y/y) in April from 7,8% y/y in March, taking growth to an eight-and-a-half year low.
This is also the fourth consecutive month of single-digit growth in nominal house prices since a growth rate of 11,2% was recorded in December last year.
The latest price is also the lowest since November 1999, when it was 6,5%, and brought the average price of a middle-segment house to about R974 in April this year.
In real terms, house prices in the middle segment of the market dropped by 2,5% y/y in March 2008, compared with a decline of 0,9% y/y recorded in February, based on headline CPI inflation.
"This was the biggest negative real year-on-year growth rate recorded in house prices since May 1997, when it was at a level of –3,4% y/y, based on nominal price growth of 5,7% y/y, and a headline CPI inflation rate of 9,5% at the time," noted the researchers.
On a month-on-month (m/m) basis, nominal house price growth was only 0,2% in April, unchanged from March. In real terms, house prices dropped by 1,3% in March from February. The real price of a middle-segment house has dropped by a total of R19,700, or 3%, from an all-time high of around R651,500 (at constant 2000 prices) in August last year to about R631,800 in March this year.
"Sharply rising CPIX inflation, currently at 10,1% y/y and mainly driven by international oil prices, rand exchange rate and food price trends, the 450 basis points worth of interest rate hikes since mid-2006 on the back of inflationary pressures, a significant slowdown in growth in real household disposable income in 2007 and the full implementation of the National Credit Act (NCA) in mid-2007, are factors having a negative effect on the affordability of housing," said the researchers.
They said these trends have caused the focus of homebuyers to have shifted from luxury, large and expensive properties to smaller and more affordable properties in recent times.
"As a result of these developments, the downward trend in year-on-year house price growth has accelerated since September last year. With inflation still under strong upward pressure, inflation expectations will remain high over the short term, which will have a significant influence on demands for higher wages this year," they say.
Against this background, the Reserve Bank's Monetary Policy Committee is expected to hike interest rates by another 50 basis points at the June meeting.
In view of these developments and expectations, house price growth is forecast to slow down even further in the rest of 2008 from current levels, says Absa.
Nominal price growth of well below 10% is projected for the full year, with real price growth expected to be in negative territory, which will be the first annual drop in real prices since 1999, when it was -0,3%. – I-Net Bridge

Middle segment price growth down

'No house price recession'

 

The residential property market faces a mild cyclical downturn, says Standard Bank. The market for cheaper properties has already picked up.

'No house price recession'

One stop shop for major motor dealer

One stop shop for major motor dealer
Hundreds of guests enjoyed the recent opening of Union Motors' new passenger and commercial vehicle service and parts premises in Shelly Beach.
DAVID RUSH REPORTS.
AFTER years of hard work, Un¬ion Motors officially opened its new passenger and commer¬cial vehicle service and parts premises in Shelly Beach last Saturday.
And, wow, it is certainly an impres¬sive set-up. Johann von Bargen, of East Coast Radio 'traffic guy' fame, summed it up well.
"You could build a motor vehicle with all the stuff found in this place," he quipped, while performing the role of emcee for the evening. And it is quite possible that it boasts Mercedes- Benz's only boardroom with a sea view.
The new premises will prove a major benefit for long haul¬ers, providing them with a one-stop drive through. The premises are situated close to the highway in Shelly Beach, not far from the Southcoast Mall.
What used to be a sugar cane field has now been transformed into magnifi¬cent premises.
Owner, Hugh o 'Mahoney, welcomed guests and reminded them that the premises in Shelly Beach, oppo¬site the Shelly Centre, were still very much in operation. The dealer principal is Malone Horn, a powerfully¬ built man, who has represented South Africa at strong man competi-tion on no fewer than 11 occasions.
Union Motors has been on the South Coast since 2002. It was first established in Springs in 1923 and has been a Mercedes-Benz dealer since 1961.
The latest invest¬ment in this region totals a staggering R70-million.
The South Coast branch covers the area from Scottburgh to the Eastern Cape.
The world-class global brands represented at this facility are Mer¬cedes-Benz, Chrysler, Jeep, Dodge, Mitsubi¬shi Motors, Mercedes¬Benz commercial vehi¬cles, Freightliner, Fuso and Western Star.
The facilities incor¬porate a 1000 square ¬metre vehicle workshop, with four drive-through bays, able to service trucks without having to unhitch their trailers.
In the passenger vehicle workshop, there are two active reception lanes and 12 bays all with lifts.
This facility will be manned by 33 top-flight technical staff, fully trained and managed by Paul Samuel, the fixed operations manager.
The nearby Sandy's Auto Fitment Centre is an 18 bay, fully equipped workshop which can fit all acces¬sories, bakkie liners, security film and more.
The parts de¬partment, managed by Sammy Maharaj, houses 16 000 lines of stock valued at more than RI6-million.
The commercial vehicle sales depart¬ment is managed by Tony Westoby, while Basil Naidoo heads up the administration department.

UGU is raring to GO

RUTH Bhengu, deputy mayor of the Ugu District Municipality, knows that 2010 is a marketing event of note for South Africa.
She says, "During the apartheid era, South Af¬rica was isolated from the global market. After 1994, we staged several international events, namely the Rugby World Cup, the Cricket World cup, the World Growth and Development Summit and the World Aids Conference. These were all to promote South Africa in the world market.”
Ruth feels that as a result of the popularity of soccer in South Africa, the country has been placed in a strategic position. The spin-offs for the country having won the rights to stage the 2010 FIFA World Cup, are enormous.
"The stadiums which have been built will benefit the country in the future. The stadium that has been built in Gamalakhe was delayed until we knew we had done it right. We wanted to ensure that, after the hype of the games had died down and life re¬turned to normal, the design was such that it would encourage growth.
"A sustainability plan was put together. Due to the amount of foreign investment in the building of the stadium, we ensured that those countries which had hosted similar events, and which had built simi¬lar stadiums, had input to the design and sustain¬ability of the stadium.
'We were determined that it was not going to end up as a 'white elephant after the 2010 Soccer World Cup:' Although Ugu was granted 'Camp Base' status, it was one of five KwaZulu-Natal municipalities which received this award.
These 'bases' are areas where soccer teams can practice, receive training and perhaps acclimatise before the big matches held in the larger centres.
"The fact that we will be hosting fringe matches is great. What is of paramount importance is the other key factor in this issue ... service.
"We have trained our staff, from hotel waiters to petrol attendants, regarding the importance of first ¬class service. I don't want our guests to experience the poor service I experienced before these games, way back in 2008.
"I was staying in a reputable five star hotel in KZN, and received the most atrocious service you could imagine. The housekeeping service was not available until 7.30am and maintenance was not available until 8am.
''This was not acceptable, and we knew our in¬ternational visitors would not accept service of this standard. The training we put in place ensured it never happened.
"It is all good and well to have been given the right to stage the World Cup, but if we cannot supply the serv¬ice to go with it, then we have lost out:”
Time was another of the factors which had to be taken into consideration.
'When we have teams that are staying in the Ugu district, in our wonderful hotels, they need to know that everything will work perfectly.
"If they are playing a match in Dur¬ban at 3pm, they need to know that the hotel will be able to cater for their needs, and ensure that they will be in Durban in time for the match.
"Transport, laundry, catering ... all have to be per¬fect to ensure timetables are met.
"I am confident that KwaZulu-Natal, and Ugu in particular, will meet the challenges which will face us when staging the 2010 soccer championships. We are all going to be proud of our efforts."





The Property Circle focuses on Property for Sale on The SOUTH COAST / HIBISCUS COAST Kwazulu-Natal South Africa. The Areas we cover are Shelly Beach, Uvongo, Margate, Ramsgate, Southbroom, Marina Beach, Trafalgar, Palm Beach, Munster, Glenmore, Leisure Bay and Port Edward. Our main focus is on Vacant Land for Sale along the SOUTH COAST, although we do deal with all types of Real Estate on The SOUTH COAST. Please take your time and enjoy our web site

SA property hit by emigration

Finance24
Monday, 21 April 2008 14:53:00

More SA homeowners are dumping their properties on the market for emigration purposes, with 12% of sellers planning to leave SA, says FNB.

SA property hit by emigration

Property mkt still 'depressed'

 

Eighty-three percent of sellers have been forced to accept a lower price, while the average time that a house is on the market has risen to 12 weeks, statistics show.

Property mkt still 'depressed'

Finance24
Monday, 21 April 2008 13:54:00

Keep the heat this winter

Keep the heat this winter
2008/04/21

Our home décor and DIY expert Janice Anderssen suggests an easy way to prevent your house or townhouse from feeling like an oven in summer and a fridge in the winter.
What is Aerolite?
Aerolite is manufactured locally according to technology from Owens Corning Toledo, USA. It is made from pure spun glass, bonded with an inert thermo-setting resin to form a strong, resilient, easy-to-handle blanket.
Aerolite forms a highly efficient thermal barrier which excludes solar heat gain in summer and retains heat generated within a building in winter. It reduces heat flow by up to 87% and can lower the temperature in summer by up to 5°C. What's more, Aerolite's insulation efficiency is unaffected by its orientation to, or the direction of, heat flow.
Aerolite is the only ceiling insulation in South Africa that does not burn - as it is made from fibreglass! This means it is the safest insulation you can buy.
Keeping cool indoors when it is hot outdoors is a problem. The sun beating down on our homes causes indoor temperatures to rise to uncomfortable levels. Insulated ceilings reduce the heat flow between the outside and the inside of your home, keeping it warmer in winter and cooler in summer.
In our hot summer months, up to 35% of the heat in your home enters through an uninsulated ceiling. If you have ever been up into your attic during the summer, you know yourself how hot it can be up there. Insulating the ceiling of your home should be a top priority.
Draught-proofing your home will also help keep the summer heat out. For example, seal windows and door bottoms with insulation strips.
Installing Aerolite
1. Measure the distance between the timber roof trusses.
2. Cut the insulation material - while it is still in the bag - to the correct width to fit snugly in the space between the roof trusses.
3. Roll out firmly between the roof trusses on top of the ceiling.
4. Wrap insulation around waterpipes so that they do not freeze in winter, and we recommend you also wrap the geyser for further savings on electricity bills.
Benefits at a glance:
- 30-year guarantee
- Saves money on electricity bills
- Does not provide sustenance for rats and mice
- Non-combustible
- Contains no asbestos or plastic fibres
- SABS tested and approved (SABS 1381 Part 1)
- Reduces condensation
- Mould-resistant
- Light weight
- Corrosion-resistant
- Maintenance-free
- Sound absorption
- Will add value to your home
- Available in mini rolls
For more information click here to visit the website.

Keep the heat this winter

Electricity now a global challenge

Electricity now a global challenge
2008/04/18

Global demand for electricity is increasing rapidly on the back of ongoing economic development and security requirements, according to various sources. What is being done about it?
Two years ago, before rolling black-outs became a dreaded feature of life in South Africa, energy expert Professor Anton Eberhard warned that the efficacy of electricity supply planning and investments needed to be improved.
Writing in the UCT News (30 May 2006), Professor Eberhard, who leads the Management Programme in Infrastructure Reform and Regulation at the UCT Graduate School of Business, also emphasized the importance of developing sustainable demand-side management programmes.
"And," he adds, "as a contributor to the Energy Policy White Paper published by the government in 1998, I also warned that generation capacity would run out in 2007 and that the next investment decision was needed by the end of 1999 at the latest!"
Fast forward to 2008 …
Today, the country is in the throes of an electricity supply crisis that, while difficult to measure accurately, has had a detrimental effect on business confidence, says Richard Downing, an economist at SAACI (the South African Chamber of Commerce and Industry - formerly SACOB).
(At this point, it is interesting to note that Nicola Brooks of Moneyweb interviewed Ian Mckechnie, president of the South African Institute of Electrical Engineers on 17 January 2008. He told her that Eskom and government have known since 1990 that South Africa would run out of generating capacity by 2007.)
Commenting on SAACI's Business Confidence Index (BCI) for January 2008, Downing says business confidence has declined to its lowest level since October 2003. "The electricity shortages are of such a severe, sensitive and strategic nature that the magnitude in terms of real physical economic performance and capacity constraints has not yet fully entered the information base that shapes the business opinion and mindset," he says ominously.
He adds: "It is apparent that the shortage of electricity poses a severe threat to the production capacity for goods and services, since critical production time is lost due to electricity power shortages during working hours. Even if the loss in output could be limited to between 5% and 10% of GDP, it will be difficult to attain any growth in the economy in 2008. The severity of the electricity crisis has shifted all the attention towards keeping the economy functioning 'normally' on the supply side. The weaker rand against important trade and investment-related currencies bears testimony to a troubled business mood…."
Global electricity challenge
Global demand for electricity is increasing rapidly on the back of ongoing economic development and security requirements, according to various sources.
Among those countries treating the world-wide energy challenge as a priority is the USA. An example of its commitment to energy conservation is in President Bush's December 2007 signing into law of the Energy Independence and Security Act (H.R.6). According to Bill Williams, IEEE-USA's legislative representative for technology policy activities, the Act directs the Department of Energy to adopt a new national technical standard for interconnecting distributed energy sources to the electric power grid.
The Act also contains measures that will see the phasing out of inefficient incandescent light bulbs, the improvement of appliance efficiency standards and the implementation of other conservation measures, he adds.
In Australia, the New South Wales Government is spending an extra $85 million upgrading the central coast's electricity network, according to ABC News ("Health concerns over NSW electricity upgrade", 1 March 2008).
Other countries
Perhaps of little comfort to South Africans right now (particularly when they're caught up in their thousands in traffic snarls caused by power outages which render traffic lights useless) is that other countries are also experiencing power problems.
These include China, which according to Jody Clark in MoneyWeek (19 April 2007), is experiencing rising demand for electricity to the tune of 13% a year. He says that China's power plants – 78% of which are run on coal – are working overtime as a result. "And when you factor in that coal production in the People's Republic is not increasing significantly, it's no surprise that China has just become a net importer of coal after years as an exporter."
Switzerland is also troubled. According to swissinfo.ch, as the number of Christmas lights increases every festive season, fears are mounting that the country could face a shortage of electricity by 2020. ("Christmas lights spark electricity concerns" - 20 December 2007.)
Solutions
So what's South Africa doing to resolve the problem?
According to Luyanda Makapela in BuaNews (6 February 2008), the government launched South Africa's National Energy Efficiency Campaign in February and is working on energy-savvy proposals to include in the Electricity Regulation Act. Makapela says these proposals include increased use of solar power lighting and heating, replacing incandescent lights with energy-efficient bulbs, and promoting the use of creative systems lighting (CSL).
Regulations will be supported by electricity rationing, continues Makapela, who wrote in BuaNews a week later (11 March 2008) that three electricity experts from France had arrived in South Africa "to help Eskom define the country's most pressing needs in terms of power generation, capacity and maintenance."
Alterative power
Wind-generated power, believed by Wikipedia to have been used for grinding grain in Persia since 200 B.C, is the world's fastest growing new source of electricity, according to America.gov (www.america.gov). "Turning sunlight into energy has been a dream of inventors at least since 1861, when the first sun-powered motor was patented in France. Today, innovation, investment and technology advances have produced solar technologies that generate power and reduce stress on a critical electricity infrastructure."
In his article "Global Wind Power Capacity Reaches 100,000 Megawatts" for the Earth Policy Institute (EPI - www.earth-policy.org – 4 March 2008), Jonathan G. Dorn says that global wind power capacity increased by a record-breaking 20 000 megawatts last year. This has brought the world total to 94,100 megawatts: "enough to satisfy the residential electricity needs of 150 million people".
In Europe, he notes that 2007 was the first year ever in which wind power additions exceeded the additions of any other power source, including natural gas. "Europe's installed capacity currently totals 57,100 megawatts, and its new installations in 2007 accounted for 43 percent of total global installations. Wind-generated electricity now meets nearly 4 percent of Europe's electricity demand, enough to supply electricity to 90 million residents."
Germany, the world's frontrunner in total installed wind power capacity, generates more than 7 percent of its electricity from the wind, says Dorn. Spain ranks third in total installed wind capacity, with wind energy supplying 10 percent of its electricity, second only to Denmark in terms of percentage of electricity generated this way.
"France also demonstrated impressive gains in 2007, increasing its total installed wind capacity by 57 percent to 2,450 megawatts," he says, adding that the French government's goal is to increase installed wind capacity to 25,000 megawatts by 2020.
According to Dorn, the USA is the world leader in new installations and has been for the last three years. On track to overtake Germany as the leader in installed wind power by the end of 2009, the USA boasts wind farms in 34 states, the electrical output from which equal to that "from 16 coal-fired power plants and enough to power 4.5 million U.S. homes".
SA and the generator generation
Here in South Africa, going to bed earlier at the suggestion of Minerals and Energy Minister Buyelwa Sonjica, is one way of cutting back on electricity usage.
This sage advice seems to have had little impact on South Africans, however, judging by unflagging demand for generators. Whether it's because South Africans as a nation don't like going to bed early, prefer hot coffee to iced tea or have an aversion to the food in their freezers defrosting and thereby making them vulnerable to food poisoning, they've become the generator generation.
Carpe diem, though: leading generator producer and supplier Jetman warns that these Eskom-panaceas can be lethal in the hands of novice users and get-rich-quick installers whose commitment to quality and expertise is negligible.
"There are several considerations to keep in mind when choosing which set to buy, and where and how to install it," says Jetman founder and CEO Wayne Soekoe. "The recent power failures have resulted in many businesses and home owners rushing out to buy generators. Remember, however, that a generator set ("genset") is in itself a supply authority, which makes the dangers and risk of electrocution exactly the same as Eskom or municipal supplies. The change-over requirements between the two power sources are crucial to the safety of the installation – incorrect connections are potentially fatal."
He continues: "There are many different generators on the market so get a qualified electrician to advise you on the best one for your needs. Heating appliances such as stoves, heaters, dishwashers, geysers, kettles, tumble dryers, toasters and hairdryers draw a lot of power while PCs and electronic equipment don't use much power but are voltage-sensitive. If the generator does not deliver a constant voltage and there are dips and spikes in the system, equipment is likely to suffer damage. It's therefore a good idea to initiate some internal load shedding when using a generator so switch off some lights when you want to boil the kettle."
"Single-phase generators work for most home-owners and motors of five horsepower or less. Industrial or commercial applications usually require three-phase power, which is also better for motor starting and running."
Finally, his advice for those faced with choosing gas or diesel-powered generators, is that diesel is the answer to longevity and lower operating costs. "Today's modern diesels are quiet and normally require much less maintenance than comparably-sized gas (natural gas or propane) generators," Soekoe explains, adding that fuel costs per kW produced with diesels are normally 30 to 50 percent less than gas units. – Ingrid Olivier
For more information contact SACCI at (011) 446 3829 or Wayne Soekoe of Jetman at (012) 252 0338, or send an email. Click here to visit the website.

Electricity now a global challenge

Medics cycle to the rescue

Medics cycle to the rescue
Netcare 911 and its partners have launched South Africa’s first 'Cycle Medics '. DANIEL LEMMER REPORTS.
When ahol¬idaymaker suffers a heart attack or drowns at the beach, onlookers wait for the howl of an ambulance. But from now on, they are more likely to see the quiet ap¬proach of a panting Net¬care 911 ' cycle medic'.
The new 'cycle medic' concept was presented by Netcare 911 at the Netcare Margate Hospital on Wednesday last week.
The event was at¬tended by hospital staff and the cycle medics, lifeguards and sponsors, among them Netcare 911, Winners Cycles, Ubuntu Life¬guards, Stat Tiakeni Medical, Union Mo¬tors and Auto Exec.
The six cycle med¬ics, trained paramedics and lifeguards on bicy¬cles, are the answer to rescue delays when holiday traffic con¬gests roads and slows ambulances down.
''An ambulance takes, on average, about 15 minutes to get to an emer¬gency. The cycle medics can do the trip in four to six minutes", said Chris Botha, in charge of media liaison for Netcare 911.
In the case of a heart attack or a drowning, a few min¬utes can save lives.
The project was the brainchild of Margate Netcare 911 staff, un¬der Craig Botha, the operations manager, and Ubuntu Lifeguards. Its aim is purely to benefit the community and is the only medical cycle project of its kind in the whole of South Africa.
The project, which operates only during the Easter and December holidays, has many other hidden advantages.
"We see things we wouldn't see from an ambulance. We've al¬ready helped a few peo¬ple and some ask for our medical advice," said Dustin Norris; one of the new cycle medics.
The cycle medics are divided into three teams of two, consisting of a trained paramedic and a lifeguard., The first team will cover the area from Shelly Beach to Uvongo, the second will cover the area from Luc¬ien Beach to Ramsgate. The third team will operate from TO Strand to Southbroom.
They have been on the road since Sunday last week.

Ramsgate offers many riches

The quaint village of Ramsgate is no longer just a quiet retirement area.
LONG regarded as one of the best holiday destination and there is a primary/high destinations on the lower South Coast, school in the area. Ramsgate has slowly evolved into a place where people prefer settling permanently.
"Because there are so many wonderful advantages to living in Ramsgate, people have started buying property here to settle permanently, as opposed to using them just as holiday homes,” says Natalie Herbert, director of the Brink Property Group.
"A happy result of more people settling permanently is that crime has significantly de¬creased, as there are a fewer number of homes standing empty,"
Security has further improved, with Ramsgate's own policing forum.
Having run the property business in Ramsgate for the last 10 years, Natalie has witnessed firsthand the positive growth and changes in the area. She herself moved to Ramsgate three years ago and says that she is much happier living there. '
"Ramsgate is still popular with tourists and we are proud of our beautiful beach. It is well looked after and there are full time lifesavers. There are also excellent restaurants in close proximity to holiday flats, so it's convenient for visitors.
"It also isn't just a place for retirement. We have a lot of first-time home buyers with young families moving in. The shopping centre is a convenient, one-stop shopping destination and there is a primary/high school in the area.
“The lovely bowling greens are enjoyed by all the residents, and we are proud to have a recovery centre in the area as well,” Natalie adds.
But what really makes Ramsgate standout is its lush, green I landscape, the charming and quaint little shops and restaurants that dot the area, and the friendly people who live there.
"Best of all, despite having all the amenities and conveniences found in bigger towns on the coast, our traffic volume isn't quite as high."

Heather 'Fergie' Clark is totally 'over the moon'

Port Shepstone's own Heather Clark has won the Masters' surfing title in Peru.
TEAM South Africa continued its reign as the indisputed champion of world masters' surfing by trumping the world's best 35-years and older surfers to win the overall team crown at the 2008 International Surfing Association World Surfing Championship in Peru.
Led by individual gold medalists Heather Clark (masters' women), Marc Wright (kahunas) and Chris Knutsen (grand kahunas), South Africa blew away the competition to take its second consecutive team World Championship.
Former world tour surfer Heather Clark (Port Shepstone) got the ball rolling for the South African team, blasting her way to victory over Peru's Rocio Larranaga, Sandra English (Australia) and Brigitte Mayer(Brazil) in the final of the Masters Women's (over 35 years) division.
South Africa's most decorated female surfer was in a league of her own, netting 15.83 points in the final to end the event with the four highest heat tallies and the five highest single ride scores in the women's event.
"I'm absolutely ecstatic," Heather said. "In 2003 I was in contention for the title on the World Tour, so it's always been my dream to win a world title. I'm over the moon."
South Africa finished on top with 10 500 points, 1100 ahead of Australia in second, with Brazil (9 041) finishing in third and hosts Peru rounding out the top four with 8766 points.
Said ISA president Fernando Aguerre, "The proverbial fountain of youth is closer than we might think: it is the waves of the world. We don't stop surfing because we get old, we get old because we stop surfing ... so don't stop!"
The location of the 2009 ISA World Masters' Surfing Championship has not yet been chosen but locations in South Africa and Brazil are in the running.

Odds in favour of rate hike

Finance24
Wednesday, 16 April 2008 22:50:00

There is a 70% chance of another 50 basis points interest rate hike and an even chance of two additional hikes before year-end, says an economist.

Odds in favour of rate hike

Mbeki 'not man for Zim job'

Apr 17 2008 12:07PM

The Zimbabwe Congress of Trade Unions says Thabo Mbeki is no longer a suitable person to mediate in the Zimbabwean crisis.

Mbeki 'not man for Zim job'

Huge potential in African property

Huge potential in African property
2008/04/17

In terms of property, Africa is the last true emerging market, outperforming the Pacific rim countries – but there are challenges.
According to Ian Fife, property editor of Financial Mail, Africa is the last true emerging market. "Asia is a technically emerging market but with property returns that are not worth writing home about. The same as Russia really. The one market that hasn't been covered is Africa. None of the major institutional investors are focused on Africa. That has to spell opportunity," he says. "Real estate opportunities are huge in Africa but they come with obstacles like a lack of infrastructure which is needed before investment can take place, but well worth the effort."
Mike Flax, founder and CEO of Spearhead concurs that, "There are a lot of opportunities in Africa but it is hamstrung because of land title issues and corruption etc. Therefore it is difficult to become a real player in Africa."
According to property economist Francois Viruly, Africa is the dark continent.
"In Africa, with the number of people and growth in population, the lights need to go on. Then the property market will get the infrastructure it needs," says Viruly. "Instead of one man one vote, economic development must get us to one man one volt.

 

 

 

 

 

 

 

"According to Gross Domestic Product, Holland looks very big while most of Africa disappears off the map.
"The moment that changes property opportunities start arising. Africa is not a continent where nothing is happening. There are a number of countries exploring it at the moment. It is a continent with commodities that China and India want. 20% of US oil comes from the African continent. That must offer opportunities."
Nick Tyrrell, head of Research and Strategy at JPMorgan's European Real Estate Group, says that from a European or US perspective there is a lot of opportunity for strong returns in African real estate. "But we also see risky, opaque and inaccessible markets with significant exchange rate risk that is near impossible to hedge and worry, maybe unfairly, about red tape, political risk, and corruption," he says.
"From my trip to Cape Town I learned that most of these things are not really true of South Africa. But South Africa on its own is just too small a market that is too far away from London or New York to be worth the cost of investing in by itself.
"I came away from Cape Town convinced that South African property specialists should be using their expertise not to take South African capital into Europe and the US, as seemed to be the theme of the recent IPD/SAPOA conference, but rather to attract European and US capital into Africa by exporting South African methods and know-how to the rest of the continent."
Hyprop Investments' CEO Pieter Prinsloo disagrees. "We need our methods and know-how locally – there's enough growth in South Africa to keep us occupied," he says. "In Africa there are constraints like a lack of infrastructure and a consumer base. Effectively one works from a low-income base."
Patrick Sumner, head of Property Equities at Henderson Global Investors, says his team is prepared to take on development market risk. "However, because the Real Estate Investment Trust (REIT) structure is not operational in South Africa and because local institutional funds are crowding out foreign investment, I don't feel there is currently opportunity in South Africa," he says. "On the positive side though there's information on South Africa's successes. IPD numbers need to be promulgated abroad and South Africa needs to continue to work hard on bringing REIT legislation in."
According to Colin Young, head of Institutional Asset Management at Old Mutual properties, "China is number one in attracting foreign investment, with Africa being fifth".
"Size does matter when it comes to attracting foreign capital," he says. "No one else is punting Africa or specifically South Africa - we need to do it!"
Lisa Forshey, a general manager of Absa Bank limited, concurs with Young that the focus has to be on size. "We have to focus on getting South Africa's stock level to a place where it can attract the money," she says.
The good news is that despite these constraints, Malcolm Frodsham, director of Research at IPD UK, says that property investors are searching for opportunities and that South Africa is well placed to be a growth hub. - By Kara Michaels

Huge potential in African property

KZN property feels rates pinch

 

KZN residential property values are feeling the corrosive effects of jumping interest rates and the National Credit Act.

KZN property feels rates pinch

Golfers know their business

SOUTH COAST HERALD 4 April 2008
The ever present Yzelle Greyling and her partners Angie Milroy, Debbi Stewart and Barbara Rousseau, won the Business Day at San Lameer last Friday.
The team scored 91 points to win by a margin of three from Leon Olivier, Marius Visser and Eddie and Edward Dreyer. They Counted out the visiting fourball of another father and son combination, Charles and Christiaan Rossouw, and Johan Rademeyer and Queenie Becker.
The short holes went to Hennie Oosthuizen on the 4th , Howard Frizelle on the 9th , Johan Coetzer on the 14th and Edward Dreyer on the 16th. Johan Coetzer also took the prize for the longest drive for men while Christa-Marie Opperman outdrove the other women. Nico Mantoan and Murray Ross’s fourballs won the jackpot.
San Lameer’s next Business Day is on April 25, with a shotgun start a noon. The club is being very well supported by members of neighbouring clubs as well as with sponsorships from Estuary Hotel and The Bistro.
The betterball competition last Wednesday was also a father and son combination, with Eddie and Edward Dreyer scoring 44 points to win. Second was Seis Prinsloo and Sollie Swanepoel on 42 points. They counted out Kevin Wood and Gert van der Westhuizen.
Saturday again saw the higher handicappers scoring the most points. Heather Wright scored 40 points off a 19 handicap, with the local ‘King of Stableford’ Nico Mantoan showing a welcome return to form by scoring 38 points. Colin Heath from Pretoria Country Club was third on 37 points.
The Women’s Day will be played on April 7. Players to note that it is still a shotgun start, but at noon.

Greenprint will make the coast better

The overwhelmingly positive response to a document that safeguards a town’s environmental integrity could set a green precedent.
JUDI DAVIS REPORTS. SOUTH COAST HERALD 4 April 2008
SOUTHBROOM residents have pledged the unanimous support for the adoption of a 'greenprint' for their town's future.
The 'greenprint' goes by the lengthy name, 'Towards the Implementation and Enforcement of the Mpenjati Southbroom Town Plan for Eco¬logically Sensitive and Sustainable Coastal De¬velopment'. It was commissioned by Southbroom Conservancy and Ratepayers' Association.
In a nutshell, it is a set of guidelines for main¬taining Southbroom's environmental integrity. It also sets out how residents could ensure that future development is sympathetic to their town's essential character.
A renowned environmental management specialist, Dr Jeff McCarthy, is the author of the 'greenprint'. He has drawn it up within the parameters of zoning and other town planning laws and bylaws and general environmental legislation.
As Southbroom is a seaside town, Dr Mc¬Carthy was mindful of the Integrated Coastal Management Plan White Paper. This is expected to become a bill and, as such, part of South Africa's legislation very soon.
Presenting his document at a well supported meeting in Southbroom last week, Dr McCarthy, said it was important for residents to recognise the uniqueness of their town. Also at the meet¬ing was Neil Fox, from the provincial planning department and representatives of Hibiscus Coast Municipality.
As Dr McCarthy pointed out, Southbroom has a peaceful, rural atmosphere, much privately owned land that is environmentally sound, three coastal estuaries and a number of small reserves and conserved areas.
Even its attractive golf course has envi¬ronmental value, particularly as it serves as a filter for surface water. The town was well protected by an inherently sound town plan¬ning system, which, however, did require some refinement, he said.
As short-term measures to protect the town from unsound development, the document suggests that residents monitor the estuaries carefully, reinforce the protection of conserved areas and ensure the strict enforcement of town planning legislation.
It also stresses the importance of working with local government and province to ensure “sympathetic development in sympathy with its surrounds".
However, for the 'greenprint' to carry weight, Dr McCarthy believed it would need the commitment, involvement and support of the people of Southbroom and the greater South Coast community.
The 'greenprint' has ramifications beyond the borders of Southbroom. Already, residents of other towns have expressed an interest in it. As supporters of the Southbroom initiative point out, if all SOUTH COAST towns drew up their own 'greenprint' documents and committed themselves to upholding them, the SOUTH COAST would be a better place for all its residents.

Take a walk on the wild side

The heritage beach walk is definitely worth the exercise.
SOUTH COAST HERALD 4 April 2008
THE Petrified Forest is along the stretch of beach between the WILD COAST SUN Hotel and the Mzamba River mouth. Sedimentary rockbeds along the seaside and cliffs on the landslide are rich in fossil deposits of a bygone age.
Large logs, turtle scutes, reptile remains, comminuted shell material, shark teeth and ammonites are com¬mon. During low tide, foreshore reefs are exposed for more than a kilometre along the beach. Silicified tree trunks orien¬tated in an east-north-east direction are noticeable. Some of these are enormous, reaching lengths of up to five metres, whereas others are hardly larger than a piece of braai wood.
On either side of the Mzamba River mouth is a range of low cliffs, up to. 20 me¬tres high. These cliffs contain hard layers of rock alternated with fine-grain silt horizons. Heavy surf action at the base of these cliffs has resulted in small caves in the silt.
The name 'forest' is a misnomer, as none of the logs are preserved in an up¬right position, but are embedded horizon¬tally in the rocky ledges.
The sensitive coastal dune forest oc¬cupies the narrow belt on the row of high dunes running down the coast. It includes flora on the beach and the mud flats of the estuaries, making it a particularly interesting ecological zone. Flora found along this stretch of the coastline in¬clude dune morning glories, dune aloes, strelitzias, crane flowers and flame lilies.
The Umtamvuna and Mzamba rivers carry a large silt load and are responsible for the murky brown colour of the warm Indian Ocean from time to time.
Stands of black mangroves, date palms and yellow coast hibiscus grow along the river banks.
Guided walks are available at 9am eve¬ryday at the WILD COAST SUN HOTEL AND CASINO RESORT'S public relations desk.

The Property Circle focuses on Property for Sale on The SOUTH COAST / HIBISCUS COAST Kwazulu-Natal South Africa. The Areas we cover are Shelly Beach, Uvongo, Margate, Ramsgate, Southbroom, Marina Beach, Trafalgar, Palm Beach, Munster, Glenmore, Leisure Bay and Port Edward. Our main focus is on Vacant Land for Sale along the SOUTH COAST, although we do deal with all types of Real Estate on The SOUTH COAST. Please take your time and enjoy our web site.

Turn back the hands of time…

Back in the land of the living
Lea Jacobs experiences the rustic life and discusses what was happening in 1991.
As far as I am concerned, deadlines should be banned. I recently returned to the Her¬ald offices after a wonderful three week break. I spent my time reading, watching a bit of telly and even managed to get up to False Bay in Northern KwaZulu-Natal for a couple of days.
The only deadline I had was at 6pm, when I was forced to open a bottle of wine in order to enjoy a sundowner.
Speaking of sundowners, we stayed in a rustic camp, which I thought meant the lodge we'd booked into didn't use fabric softener and the towels would be a bit scratchy.
Wrong ! It meant no lights, except for a paraffin lamp. It also meant that the shower was a bucket with a rope attached. The bucket was filled with cold water and then hoisted above your head. If one wanted hot water, one had the option of using what they termed a donkey. The instructions read as follows: 'Before lighting the fire under the ap¬paratus, ensure that the tap is open. Failure to do so could lead to the donkey exploding.' Needless to say, we showered in cold water.
I love the bushveld and wildlife in general, but as you know from previous columns, I do have a bit of a problem with buck. Luckily for me, only one brave fellow wandered into our camp. Person¬ally, I think that the bush telegraph had done its work and the buck in MARGATE had let their North Coast cousins know that I was coming.
I have to be honest at this stage, and admit that it was very nice to get home and soak away the grime (my personal record for showering in frigid water is now 5.4 seconds) in a long hot bath and enjoy the electric light once more.
It is for that very reason that I am taking a look at 1991, as living in the dark ages is, as far as I am concerned, for the birds and I feel more comfortable chatting about modern times.
I must be getting really old as I remember 1991 as if it were yesterday. I was, therefore, somewhat gobsmacked to read that back then a beef roast was priced at R8,98 a kilogram and lamb was available for a measly R 7,98 per kilo. Condensed milk was on the shelves for RI,99 and a bottle of cleaning fluid was R2,69.
The Faerie Glen Hotel was offering an eight course lunch for the grand sum of RI2,50. But the best news of all was that South Coasters could invest in the latest top of the range computer equipment. Yes, for the pricely sum of R6 995 computer whizzes of yesteryear co indulge in their computer fantasies.
The machine not only came with a 14-inch mono monitor, but unbelievably it came with a massive 12 megs of Ram!
On the property scene a villa in San Lameer was priced at R185 000 while a development comprising of six units on the beachfront in Glenmore Beach could have been yours for R450 000.
By 1991, the quality of television programmes had improved dramatically. 'Misdaad in Miami' had made Don Johnson a household name and changed the face of male fashion forever. 'LA Law' was a massive and led to an enormous number of students enrolling for a law degree, in the hope that one day their future boss would resemble Harry Hamlin.
On the downside, there was a programme, called ‘Super Sam Swats Safety'. I have absolutely no idea what this little gem was about but with a title like that it could only have been good.
Yes, indeed, we have come a long way sit 1991. One has to wonder just how far along we’ll be in another 17 years.

Pampered pigs rule the roost at Brightley .

TREVOR and An¬gela Dunstone from Brightley farm and Lake Eland don't have grandkids' yet, but their adopt¬ed pair of orphaned ‘grandpigs' is giving them a very good idea of what might lie ahead one day.
The two hairy and aerial-tailed sisters called Madam and Eve were brought to Brightley Farm to be spoiled and fattened up after being orphaned at LAKE ELAND during December last year.

Spending their days in a spacious 'pigpen', complete with mud bath, beach umbrellas and a chair on which Trevor sits to cuddle them, they have grown from scrawny, rough and hairy ba¬bies since their arrival three months ago into ‘spekvet', rough, hairy and adamantly demand¬ing miniature warthogs.
With their enclosure being just outside your scribe’s office, their presence is constantly heard especially when it's time for 'Grandma Angela' to bring their milk bottles. They have of late become so bois¬terous that, in order to preserve her pedicure, Angela has to swop her Jimmy Choo high heels for gumboots before bottling them.
In the late after¬noons with all the dogs locked away (for the dogs' safety!), the gate to their creche is opened and they teeter on their sharp little trotters, following Trevor and Angela to be tucked into bed in their warm and secure night quar¬ters. Their imminent release into a vast eco-¬enclosure at LAKE ELAND will leave a huge void at Brightley Farm.

A tale of the old man and the sea…

A fisherman’s catch has made history. The Lyle family has recaptured the result of an epic struggle, and framed it for the PORT SHEPSTONE MUSEUM.
Angela Kelly and Daniel Lemmer report. South Coast Herald 4 April 2008
It was an early morning in late June, 1946. Rupert Davids Lyle, like many other fishermen on the SOUTH COAST, cars bristling with fishing rods, drove out into the sunrise to head for the beach.
Rupert or ‘Pop’ as he was fondly known, was the magistrate at the PORT SHEPSTONE court. When the sardines made an appearance, all court proceedings were cancelled.
After weeks of preparation for the SARDINE RUN, armed with his rod and flax lines waxed by his own handiwork, Pop thought he was ready to reel in anything the sea had to offer.
The clear water, boiling with an enormous shoal of sardines, was outlined beyond the dirty Umzimkulu effluent, and Pop wasted no time in casting out his bait. Within minutes, some powerful force suddenly yanked on his line.
A still unsuspected Pop tried to reel in the line gently, but the hooked creature put up a tremendous fight. The flax line screamed through the agate eyes, as whatever was on the other end headed for deep water. About 200 metres of fishing line had already spun off the reel. Three hours later the unrelenting fisherman, who was almost 70 years of age at the time, was still struggling.
Rumours that he had hooked a whale spread among the onlookers.
With grim determination, the fisherman slowly reeled in his tiring opponent though the outgoing tide. Finally, spectators could see what Pop had caught. It was a huge shark.
When the exhausted shark felt the sand under its belly, it found renewed strength, and people standing knee deep in the waves fled the thrashing jaws and headed for higher ground.
Finally, a rope was tied around the shark’s tail and it was dragged onto the beach.
To make the catch official, certain procedures, including the weighing of the fish, had to be followed.
However, when Pop and his uncle went to search for the equipment necessary to weigh the shark, someone slit open its stomach and edibles and sardines removed.
Because of this, the catch was no longer eligible for registered as a record.
Nonetheless, the photograph of the catch has been donated to the Port Shepstone Museum by Mr Lyle’s grandson, Julian Lyle. Now, the memory of this spectacular catch can be admired by other fisherman.
Although not making it into the record books, the catch has now secured a small legacy of its own.