Property News
The demand for sectional title homes in the Cape Town area is increasing, with the CBD proving to be most popular among buyers due to the convenience and accessibility of location.
“Buying a property is a long-term investment, and the initial analysis into a property must be conducted before making a decision,” says Rebe.
This is according to David Rebe, CEO of Sandak-Lewin Property Trust, who says sectional title living has grown in popularity over the last decade for various reasons, including heightened security concerns, increasing maintenance costs of private homes and Capetonians opting to live in close proximity to their places of work.
Rebe shares the following tips with buyers looking for properties to buy:
- Get your home loan pre-approved
Meet with one or more banks or mortgage originators to obtain pre-approval on a bond before you begin the actual house hunting.
Rebe says before meeting with the banks, ensure that your record is in good condition and that any outstanding debt is accounted for. This will determine the value of the bond that you qualify for, which will give you an advantage over a potential buyer who does not yet have loan approval.
- Buy the smallest property on the best street in areas with high tenant demand
Buying the smallest home in a popular block in a good area, as opposed to the biggest on a less popular or favoured street will reap big rewards when you choose to sell the property.
This is due to the fact that often the smallest property in a good neighbourhood sells for a better price than a bigger property in a less popular area, as its value is brought up by the price of the neighbouring properties.
Buying in areas with a history of strong tenant demand is an indication that the area is in demand and that it shouldn’t be a struggle to rent it out or sell when the time comes.
- Request to see two years’ worth of financials
The buyer of a sectional title property is entitled to a copy of the scheme’s financial statements. It is crucial to ensure that the financials of the sectional title scheme are not showing signs of discrepancy or debt.
Analysing the financial statements of the body corporate will ensure that the building is well-managed and financially stable. This will reveal how healthy the savings balance is, the number of creditors looming and whether you are about to purchase a share of debt already incurred, says Rebe.
- Investigate whether the building is being run correctly
Rebe says the success or failure of sectional title schemes is dependent, to a large extent, on both the body corporate trustees and their managing agent.
It is therefore important to conduct research on the body corporate and managing agents to establish whether they are running the property properly.
Both the body corporate and managing agent are responsible for administrative and financial systems and are in charge of the physical management of the scheme.
The managing agent provides the body corporate with regular financial and management information, assists with decision making, payment of body corporate debt and managing maintenance and repair projects.
- Have a survey done on the property
Surveys assist buyers in discovering the physical condition of the building and if there are any structural problems which may cause trouble in the future.
Rebe says should problems with the property be discovered before the sale is finalised, the buyer will have a powerful reason for negotiating the seller’s price down or asking the seller to fix the problems.
If the problems are not identified before the property is sold, some of these problems, and essentially costs, can become the new owner’s problem, he says.
- Familiarise yourself with the body corporate conduct rules
Management rules will include information concerning how administration, accounting, insurance, election of trustees and levies systems are run.
Conduct rules pertain to the day-to-day conduct of owners and occupiers, such as the keeping of pets, the number of occupants per unit, parking, waste disposal, washing lines and appearance of building.
These rules include information around whether buyers and tenants are allowed to sublet for short-term periods.
“Buying a property is a long-term investment, and the initial analysis into a property must be conducted before making a decision, as it will ensure that the sectional title scheme that you are buying into will ultimately be a good investment in the long run,” he says.
Category : Blog &Property News
Johannesburg – It is important to note that credit amnesty will not free consumers of the obligation to pay their debt, according to Chantel Cronje, legal advisor at Legal & Tax. “The debt must still be settled if you are to keep your credit record clean in the future,” she warns. The South African government has implemented a credit information amnesty from April 1 this year. The amnesty will give all consumers a fresh start with a clean credit record. “This is great news if you are one of the many South Africans struggling to secure a job or a loan for a car or home as a result of a poor credit record, says Cronje. According to the Department of Trade & Industry, about half of South Africa’s 21 million credit active consumers are behind or struggling with their repayments. “Government is giving them a clean slate as it standardises and tightens lending requirements with new laws,” explains Cronje. “This is a welcome development for you if you can’t get a bond or loan, because you struggled to pay off a credit card three or four years ago.” The record goes, but the debt remains Cronje says the amnesty effectively instructs credit bureaus to remove adverse credit information about you from their files. It forbids them from sharing this information with credit providers such as banks and retailers as well as employers and employment agencies. Under the new amnesty: – Credit bureaus have until May 31 to remove from their files any adverse (or negative) information they keep on record about your debt payment history and steps debtors have taken against you; – Very importantly, the debt remains payable until you have settled it; – Credit bureaus have until May 31 to scrub your credit record clean of words such “delinquent”, “defaulter”, “absconded” or “slow paying” if you have paid your debts; – Such terms, going forward, must be removed from your profile once you have repaid a debt you defaulted on; – But bureaus can keep on record for five years factual and detailed information that reflects your debt repayment behaviour. You benefit automatically Cronje says this credit amnesty is unlike the one implemented in 2007, where consumers needed to follow a certain process to benefit. “This time, it is up to the credit bureaus to clear your credit record, along with everyone else’s,” she says. “Another major difference is that the new credit amnesty comes with tighter regulations governing how credit providers assess whether you can afford to take on more credit.” Educating consumers In addition, government is being more proactive in educating consumers that the amnesty does not mean their debt will be written off. New lending regulations “Even with a clean credit record, it may be more difficult to qualify for a loan with the new affordability assessments,” says Cronje. “But this also means that there should be less reckless lending in South Africa, to the benefit of consumers and lenders alike.” Cronje says these laws are meant to protect poorer consumers with low financial literacy from taking on debt they cannot afford to repay. After the previous amnesty, almost 50% of the consumers, who obtained new credit, defaulted within a year. The new credit regulations aim to prevent that from happening again. “If you have a poor credit record standing in the way of your life even after you’ve cleaned up your finances, you’ll benefit immediately from this amnesty,” says Cronje. “This is especially good news if there are judgments against you. Now, you won’t need to go through a complex process with the courts to get any judgments against you set aside. But it remains as important as ever to be a savvy, careful and responsible borrower.” She suggests that all new debts be settled to avoid a fresh blacklisting. “Remember to settle your debts from before the amnesty to avoid being blacklisted again. If you are struggling to repay your debts, then you should talk to the banks and retailers that lent you money to restructure your repayments,” she says. “And if you’re really concerned that you may default, it could be a good idea to go into debt counselling before it is too late,” Debt counselling is a legal process where you apply to have your debt restructured so that you can pay household expenses and still be able to pay off debt at a reduced instalment at the end of the month. Unwilling credit providers can be forced through the debt counselling process to accept restructured repayments.
Category : Property News
Cape Town is High On The International Agenda
Although Cape Town has long been a favourite with both local and international visitors, it has only recently really received the international acclaim it so richly deserves. Just this past week Cape Town was named the Number One Place to Visit in 2014 by The New York Times and British newspaper The Guardian. Cape Town secured the top spot ahead of Los Angeles, the Vatican and the Seychelles in the American newspaper’s list of 52 places to visit in 2014.
The New York Times attributed the city’s natural beauty, diversity of its people and the role it played in the victory of democracy to its selection as a preferred destination for people from around the world. The newspaper further described Cape Town as “a place to meditate on freedom and the creative life that followed”.
These accolades follow hot on the heels of earning a respectable third place on Lonely Planet’s 2014 Best in Travel list and being voted the world’s Favourite City in a survey held by another popular British newspaper, The Telegraph. The runners up in this survey were Vancouver and Venice.
Explaining the reason behind Cape Town’s win, The Telegraph said: “While all three cities nominated were seaside cities, there is only one in which you can surf the Atlantic, climb mountains, eat in Michelin-starred restaurants, stay in both historical and super-hip accommodation, indulge in wine tours and still find time to relax on the beach (with or without penguins).”
Of course Cape Town’s connection with Mandela and the fact that Cape Town is the 2014 World Design Capital have played no small part in its recent rise to prominence. The World Design Capital programme is an initiative of the International Council of Societies of Industrial Design, which aims to promote and celebrate cities that have used design as a tool to re-invent themselves and improve social, cultural and economic life. Cape Town has enjoyed success on all of these fronts, hence its selection. The council awarded Cape Town the title in October 2011 ahead of Dublin, Ireland and Bilbao, Spain.
The city will now proceed to host a year-long programme of design orientated events which will showcase the city’s artists, artisans and architects. According to the Western Cape government, previous World Design Capital titleholders boasted an uptick in visitor numbers in their title year. Coupled with its recent bevy of travel accolades Cape Town can, in all probability, look forward to a stellar year.
Some of the top attractions which have put Cape Town on the map include:
- Cape Point
- Boulders Beach penguin colony
- Kalk Bay harbour
- Chapmans Peak drive
- Fish Hoek beach
- Cage diving with Great White sharks
- Surfing at Muizenberg
- Table Mountain
- Countless gourmet restaurants
- Robben Island
- The District Six Museum
- The Old Biscuit Mill
- Long Street’s many bars
- Kirstenbosch Gardens
- Numerous upmarket spas
- The Cape winelands
- Mount Nelson Hotel
Category : Property News
Weekly Market Analysis by Currencies Direct
November 11th 2014
Welcome to the weekly market analysis – our digestible currency market update which gives you an expert insight to key movements, and what to expect in the coming week.
GB POUND
The pound notched up its biggest weekly advance against the euro in seven months. GBP gained over one per cent for the week, its largest rise since April. Sterling was also up by close to one per cent against the US dollar as signs of stable expansion in the UK economy emerged. UK services sector growth is at a 16-year high, while another report suggests economic growth of 1.3 per cent in the fourth quarter of 2013 – making the UK the fastest growing Western economy. Support for sterling also came as the Bank of England held interest rates at 0.5 per cent and maintained the size of its asset purchase programme. Looking forward, key CPI data and the Bank of England’s inflation report are likely to dominate this week.
EURO
The big story of the week was the euro’s cliff-dive after the European Central Bank (ECB) shocked markets by cutting interest rates by 25 basis points to 0.25 per cent. The euro tumbled by as much as 1.6 per cent against the dollar following Thursday’s announcement. Though losses were pared by the close of the week, the single currency still posted its biggest two-week decline in more than a year versus the greenback and hovered close to a seven-week low. Having gained over five per cent since April, there is now a strong chance it will hand back this advance by mid-2014, according to data from Bloomberg. By October 29th the currency had gained 7.2 per cent, which was slashed to 5.4 per cent following the ECB’s decision. Also piling pressure on the euro was Standard and Poor’s downgrading of France’s sovereign credit rating. A thin week for eurozone data will likely keep the ECB’s rate cut and France’s downgrade in focus for the next few days.
US DOLLAR
The dollar rose across the board as positive economic data fuelled speculation the Fed is ready to taper stimulus before the year-end. In particular, the greenback posted sizeable gains against emerging market currencies, including the Indian rupee and Indonesian rupiah, whilst also rising strongly against a weaker euro. However, USD slid a little against the yen and pound. Fed chairman Ben Bernanke is due to speak on Wednesday, with investors keen for more clues as to whether the bank will begin reducing the scale of its bond-buying programme this year. Thursday is set to see testimony from Janet Yellen, who takes over from Bernanke next year.
Category : Property News
SA’s global reputation improved
South Africa’s reputation has improved among the G8 countries since January, the Research Institute said on Thursday.
“We are perceived very favourable by outsiders, by the G8 countries,” country manager Trevor Ndlazi said at the Wits Business School in Johannesburg.
“Our reputation is fragile. The things that we do and the things that we say can damage our reputation quite significantly.”
According to the report, South Africa’s reputation dropped in January compared to the previous year, from 47.56 to 46.78 points, but increased to 51.24 in September – 100 points being the highest possible score.
In the same study, South Africans gave the county 33.69 points, 17.55 below the G8 countries. “We are perceived very negatively by ourselves,” he said. “This, I think, is a big cause of concern for our message that we are sending outside and how it is that we are talking to other people.”
He said reputation drove behaviour, and often what South Africans said about the country to people could affect their decision to visit or invest.
Ndlazi said an additional study of South Africa’s reputation was done in August and September to see if news events had affected how the country was seen.
He said events like Marikana and the arrest of Oscar Pistorius, negatively affected South Africa’s reputation and could have resulted in the drop in points.
The visit of important dignitaries like US president Barack Obama to South Africa and the improvement of the health of former president Nelson Mandela could have positively affected the reputation figures, said Ndlazi.
The Reputation Institute’s Country RepTrak is a global study of the reputations of 50 countries and is conducted annually in January among 27,000 consumers in the G8 countries.
Ndlazi said there were still areas in South Africa that needed work like safety, efficiency, effective government and how South Africa performs in the global economy.
Reputation drivers for G8 respondents are the characteristic of being “friendly and welcoming” followed by a “safe environment” and “contribution to the global economy”.
South African respondents scored the country as performing well on only two attributes, “a beautiful country” and “an enjoyable country”, but rated the country more poorly than the G8 countries did in the remaining 13 categories.
Ndlazi said that on the perception of “valuing education”, South Africans’ rating was 18.51 points compared to the 49.03 points by consumers in the G8.
He said the second study was done on a smaller group of people in the G8 countries.
Dominik Heil, from the Reputation Institute and Wits Business school, said the study should be seen as a reality check for South Africans.
The Reputation Institute is a reputation consulting firm with a presence in 30 countries.
SA – the Good News via SAPA
Category : Property News
Cape Town receives another major tourism accolade
The Mother City continues to rake in the awards, after just being named as the number three city in Lonely Planet’s Best in Travel 2014 Top Cities list.
Lonely Planet’s Best in Travel is produced annually as a guide to the top destinations, trends and experiences for the upcoming year.
The City’s place on Lonely Planet’s Best in Travel 2014 Top 10 Cities list is largely due to its status as World Design Capital 2014. The international travel guide writes: ‘Expect sculpture-lined green spaces, sustainable projects that are more than just a pretty face, and further regeneration of former industrial districts’.
Lonely Planet says that the reasons for selecting certain destinations vary. They continue to say that 2014 ‘marks the twentieth anniversary of South African democracy – honour it by exploring the city’s history’.
Cape Town has seen a flurry of accolades this October.
- The World Travel Awards placed Cape Town top of the log as Africa’s Leading Destination and also as Africa’s Leading Meetings and Conference Destination. The awards ceremony, which took place in Kenya earlier this month, is seen as the “Oscars of the travel industry”.
- At the same event, the Taj Hotel in the CBD took the award for Africa’s Leading Hotel Residence.
- In the Condé Nast Traveller Readers’ Choice Awards, Cape Town was first in the category Top 10 Cities in Africa and the Middle East and was ranked 11th in the Top 25 Cities in the World. Nearly 80,000 readers cast 1,3 million votes this year in the survey.
“These awards pay homage to the city’s natural beauty and the huge welcome it extends to international and local tourists. The city and its residents are reaping the benefits of the tourism industry. More visitors to our beautiful city means an increase in revenue and the creation of more job opportunities.
“The City is constantly building skills and improving opportunities in the tourism sector for up-and-coming entrepreneurs, which forms part of this administration’s vision to create an Opportunity City which will benefit all our people,” said the City’s Mayoral Committee Member for Tourism, Events and Marketing, Councillor Grant Pascoe.
SA – the Good News
Category : Property News
Silvertree Properties opens new office in Century City
Silvertree Properties are delighted to announce that their new office in Century City will be officially opened on Friday, July 12th.
The new office has been up and running since early June and Andrew Woods, Silvertree Director, says;
” We are delighted with the reaction to our new offices from both sellers and buyers. Being in the heart of Century City at the Island Club enables us to keep our finger on the pulse and places us at the forefront of Century City sales activity”
Oue new office is located in the Isalnd Club promenade by the canal opposite Canal Walk food court.
Fore more details or information, please contact;
Andrew Woods on 083 8942179
Category : Property News
Silvertree News – A Guide to Home Buying for the Self-Employed
If you run your own business, you may find it trickier, rather than easier, to buy a new home. Although your business savvy shows that you?re self-reliant and responsible, the lack of a guaranteed income from a single source can make banks anxious about financing a home for you.
?This is not to say that getting home finance will be impossible,? says Yvonne Viljoen, property finance consultant at ooba, South Africa?s biggest bond originator. ?But it does mean that you will have to deal with more paperwork than employed applicants, and you?ll probably come under closer scrutiny from your bank.?
Paperwork
Whether you are a freelancer, contract worker, sole proprietor or small business owner, Viljoen says you will need to present the following documents with your application:
Comparative financials covering a trading or working period of the latest two years,
Letter from your auditor confirming personal income,
If your financials are more than six months old, you will need up-to-date signed management accounts,
Cash flow forecast for the ensuing 12 months,
Personal statement of assets and liabilities,
Personal and business bank statements (Absa requires the latest 12 months, the other banks require six),
Latest IT34 , which is confirmation from SARS that your tax affairs are in order,
Company, CC or Trust statutory documents, and
ID documents for all the directors, members or trustees.
This is a long and daunting list, but your accountant or bookkeeper should be able to help you out with most of these forms. Depending on the complexity of your application, Viljoen says it may also be useful to provide a short CV, and it is imperative to have your tax affairs and finances in order and up to date. She also advises separating personal and business expenses.
?Using the services of an expert bond originator like ooba is extremely helpful, especially to self-employed buyers,? she says. ?A bond originator will apply to multiple banks on your behalf and present your application in the best possible light. This means that you only have to fill the paperwork out once, and if you are uncertain of anything, you can get advice from experts who know the system ? at no extra cost to you.?
Boost your chancesTo increase your chances of having your home loan approved, Viljoen advises that you do the same things that any prospective home buyer does to ensure their financial affairs are in order.
?The first thing that a bank will do is run a credit check, so you should do one yourself, before you are actually making an offer on a property and time is of the essence,? she says. ?All South Africans are entitled to run one free credit check a year.?
If there are any judgements against your name, it is possible in some cases to rehabilitate your record, so get expert advice on how to do this.
However, your credit record is only a small part of your general creditworthiness, so it?s a good idea to make sure you have a proven history of managing your finances responsibly. ?It?s a sad truth that you can?t get big credit until you?ve had small credit,? says Viljoen. ?So open a couple of accounts with stores and get a credit card, then make purchases and pay what you owe on time and in full every month.?
Obviously, your financial records will show whether you earn enough to afford the property that you want to buy, so it?s a good idea to manage your income and expenses carefully in the months or even years leading up to buying a home. ?Banks like to see regular, consistent income, and also look for sufficient disposable income or monthly savings to afford your property,? says Viljoen.
It?s also useful to get pre-qualified for a home loan ? which means that your income, expenditure and credit record has been checked in advance ? so that you can make an offer on a property with the confidence that it is within your price range, and that your credit record is clean. ooba can do this for you as well.
And finally, Viljoen adds that saving up for a deposit will provide an enormous boost to your bond approval chances, indicating that you are financially responsible, have the funds to put towards the house and making the home loan a less risky proposition for the bank.
?Buying a home and applying for a bond can be a stressful and confusing time,? says Viljoen. ?Take heart in the fact that with a clean credit record and the correct paperwork in place, there?s a good chance that the banks will look favourably on your application.?
Category : Property News
Silvertree News – Record returns for SA property market
South Africa’s property market showed its highest return in 2012 since the 2008-09 global financial crisis, according to the SAPOA/IPD South Africa Annual Property Index released in Johannesburg last week.
The index showed that the country’s property sector delivered a 15.2% total return last year, an increase on the 10.3% return in 2011.
“A real divergence in the market has occurred,” managing director of IPD South Africa, Stan Garrun, said in a statement.
“We have seen a good turnaround for retail and industrial properties, [but] concern remains over the health of the office sector, as evidenced by high vacancies particularly in the inner cities.
“Given the context of a moderate-to-soft economic outlook and relatively low levels of consumer and business confidence, South African property has managed to once again prove its resilience,” he said.
The SAPOA/IPD index looks at a sample of 1 669 properties worth R206.2-billion in capital value, representing about 60% of professionally managed investment property in the country.
SAPOA is the representative body of commercial and industrial property sector in South Africa. IPD offers real estate analysis to clients in over 30 countries worldwide and produces more than 120 indices on the property market annually.
“South Africa joins just a handful of countries globally experiencing even a mildly positive trend in returns,” the SAPOA/IPD South Africa Annual Property Index said.
“Once again, non-European markets are tending to outperform European countries.”
SA – the Good News via SouthAfrica.info
Category : Property News &Uncategorized
Silvetree Properties successfully launches VITA Student
Silvertree Properties are delighted to announce the successful launch of VITA Student, the UK’s premium Student Accommodation product offering high investor returns in the UK’s fastest growing sector.
” The reaction? was amazing and we have already received huge interest in the product. What appealed most to our investors was that it is a ‘no hassle, high yield’ investment in a quality product” says Silvertree Investment Director, Andrew Woods.
Silvertree Properties are also delighted to offer the best? prices and have secured preff
ered units on the penthouse floor of VITA Croshall and the 9th floor of VITA @ First Street
The? two projects that are currently on offer are:
VITA Croshall – Liverpool with units still available from ? 62,000 ( R 830,000)
VITA at First Street – Manchester from ? 78,000 ( R 1,050,000)
VITA Selling FAST!!!
In the past week, James Edwards, Sales Director, Select Property Group International reported that 48 VITA properties have sold in the last week, primarily to overseas clients in Asia and UAE and also stated:
- There are now only 67 units left in VITA Crosshall Liverpool, including those specially selected for Silvertree Properties for the SA launch
- 28 units have sold pre-launch( within 2 weeks), in VITA Manchester – First Street
- Of which 20 are on the top floor so as time passes, availability will move to lower and lower floors. Silvertree have been given specially selected units on the 9th Floor for the launch
- Demand from the Far East is so strong, it looks like First Street could be sold out within 3 months
?In short, VITA Crosshall Liverpool offers the last chance to secure a purchase with our in house, non status, developer finance and at this rate the development will sell out in full in the next month.
As each week passes the availability at First Street, Manchester will be on lower floors.
The next VITA projects, including London, ?will be higher in price to meet this demand over supply issue.
For more details on VITA, please contact Andrew at: 083 8942179 / [email protected]
Category : Property News
Silvertree News – New office opens at Superplants Centre
We are delighted to announce the opening of our new office at the Superplants Centre on the corner of Bosmansdam Road & Vryburger Avenue.
The office will directly service the areas of: EDGEMEAD / BOTHASIG / PLATEKLOOF / PANORMA and surrounds.
Silvertree Principal, Carl Witten says:
” We are very excited about the opening of our new office as it will allow us to further improve our Sales & Rental service to the area”
To celebrate the launch of our new office, we are offering assistance to ALL residents of the above areas with objections to their new MUNICIPAL RATES VALUATIONS which will be distributesd shortly.
So if you feel that your residential property has been OVERVALUED by the municiality; please contact us at:
[email protected] or call 021 5595231
Category : Property News
DONT MISS OUT……. on an excellent UK investment opportunity!
Premium student accomodation offering 9% minimum rental returns per annum!
Join us for the South African launch of Vita Student accommodation by
Andrew Woods, Chairman and Executive Director at Silvertree Properties
Units available in:………….LIVERPOOL / MANCHESTER / LONDON
Vita Student is a premium brand, the first of its kind, dedicated to designing, developing and delivering the finest student residences in the UK, complete with first class facilities, unlike anything that has gone before.
Featuring:
- 9% minimum annual NET rental return
- 7 Year fully managed scheme
- Hassle free investment
- 5 Year developer, non-status, finance available
For the investor, Vita Student offers a hassle free, fully managed property investment with guaranteed returns in the UK?s best student accommodation projects.
For more information and to book your place; contact Andrew at:
[email protected]… or… 0838942179?
Category : Property News
