11 October 2006
Arrears on mortgage repayments are likely to rise sharply over the next few months unless homeowners start curbing their borrowing and spending. This is the message from Standard Bank economist Elna Moolman who’s view echoes that of other market commentators who in recent weeks have warned that consumers could be heading for a credit crunch on the back of rising interest rates.
Technorati Tags: bad debt, homeowners, spending
2 October 2006
Homebuyers are often faced with the question of whether it makes more economic sense to buy a home and renovate or pay up for something that is in mint condition — so how should they decide?
Sharon Westcott of Lew Geffen Sotheby’s International Realty, Umhlanga says, “We recently sold an 86 square meter, 2 bedroomed, renovated apartment with very basic finishes, within walking distance of La Lucia mall for R859 000.
Technorati Tags: costs of renovation, renovating property, renovation
8 November 2006
A long overdue investigation into the laws governing the South African property industry is finally under way, on the instruction of the Department of Trade and Industry.
Various representative bodies have made submissions to the Department and Bill Rawson, Chairman of Rawson Properties, has joined them in sending through his proposals on improving the laws governing property transactions in the country.
Technorati Tags: property industry, property law, real esate law, south africa
15 November 2006
South Africa’s central bank will remain resolute to keep inflation under control, and not hesitate to change monetary policy before Christmas if necessary, Governor Tito Mboweni said on Tuesday, signalling another rate hike.
The Reserve Bank has already raised its repo rate by 150 basis points since June to curb inflationary pressures, and most analysts expect more increases ahead.
Technorati Tags: interest rate increase, november 2006, rate hike
28 November 2006 First National Bank’s (FNB) Home Loans Division has taken a giant step towards realising its four-year-old vision of increasing real estate professionalism with the launch of the FNB’s Real Estate Business School (REBS).
Technorati Tags: fnb business school, property news, real estate school
4 January 2007
Johannesburg’s city council has confirmed that residents could see significant property rates increases next year when the new rates scale – linked to property values – is implemented. The increases, which have not yet been quantified, were approved by the council last month and come in the wake of hotly contested changes to the national rating system.
Technorati Tags: gauteng, jhb, johannesburg, property rates, rates and taxes, south africa
11 January 2007
Property owners may have to wait until next year for the residential market to pick up again and deliver stronger growth, the latest Absa house price index released yesterday suggests.
The declining price growth trend, which has been the main feature of the market for the past year, will be further entrenched this year on the back of a tighter economy.
Technorati Tags: property price trends, property prices, property prices in 2007
The residential property sector has been affected by rising interest rates, but not nearly as much as expected.
The emerging black middle class, together with a strong economy, are some factors that play a role in the ongoing demand for property, even when interest rates are climbing the ladder everyday.
Technorati Tags: house price growth, interest rates, property demand
The number of people who cannot afford their monthly bond repayment is increasing in South Africa and causes concern in the industry.
The US home loan market experienced a crisis after 22 lenders in the US sub prime market has been declared bankrupt in the past two months. Household debt had risen sharply in the past few years but fortunately in South Africa; banks are more conservative than those in the US. Banks are not locked into a rate at which the loans become unprofitable.
Technorati Tags: home loans, interest rates, National Credit Act
Construction and engineering sectors are hitting an ultimate high due to preparation for the 2010 Fifa World Cup and the building of the Gautrain high-speed rail link.
An analyst at Old Mutual Investment Group, Feroz Basa, agrees that spending was likely to continue for a while as demand outstripped supply in these industries. Other sectors such as retail, telecommunications, media and transport will also benefit indirectly.
Technorati Tags: AltX, construction, infrastructure sector, JSE
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