SA Property slowdown: why some suburbs buck the trend
While the national residential property market may be experiencing a slowdown, it is definitely "not out”.
This is the word from Dr Andrew Golding, CE of the Pam Golding Property group, commenting on The Study, the group’s quarterly research report which incorporates the Pam Golding Residential Property Index. “It is important to remember that the performance of the national housing market disguises a diverse range of trends at a regional, metro and suburban level.”
Within The Study report, Dr Golding notes that the performance of the national housing market is largely a reflection of the trends in the housing markets of the three major regions, Gauteng, KZN and the Western Cape. In these markets, the performance of the regional economy, coupled with local demographic trends, ultimately determines both the level of activity and the rate of house price inflation.
Government will continue to house the needy
Human Settlements Minister Lindiwe Sisulu says government will continue to provide housing for all needy South Africans.
She was responding to media reports, which suggested that government was no longer going to provide Breaking New Ground (BNG) - also known as RDP - houses to needy South Africans. The department said the media reports distorted remarks made by Minister Sisulu at a press conference during the Habitat III Thematic Meeting on Informal Settlements in Tshwane, last week.
Green Building Convention comes to Johannesburg in 2016
Green Building Council South Africa (GBCSA) has announced that its ninth Green Building Convention will also be its first to take place in Johannesburg.
South Africa’s flagship green building and sustainability event is set for 26-29 July 2016 at Sandton Convention Centre, in the heart of the country’s highest concentration of green building developments.
Commenting on the convention’s new Sandton Central setting, Brian Wilkinson, CEO of GBCSA, says: “We’re expecting bumper delegate numbers. Global research shows South Africa has the largest percentage of green building projects under way in the world, and most of these are in Gauteng. Naturally, industry demand has driven our decision to bring the Green Building Convention to Joburg.”
How to set your investment property's rental price
Buyers looking to purchase an investment property to rent out often have difficulty determining the accurate rental price according to Richard Gray, Harcourts Africa Chief Executive Officer, who says there are many factors to consider, and if you don’t assess your property value correctly you could end up over- or under-charging - neither is a situation you want to be in.
Gray says the accepted calculation standard for a long time has been to charge up to 1.1% of the property’s value in relative terms. Take note that as the property’s value increases the percentage of rental yield decreases because of the low demand for rental in high value properties. In some cases rental price go as low as the .7% mark.
What are the risks of signing as surety?
Just because you’re in the fortunate financial position of being able to sign surety for someone doesn’t mean you should necessarily do so according to Shaun Rademeyer, CEO of BetterLife Home Loans, SA’s largest bond originator, who says you could be asked to stand surety for a friend, a relative or an adult child to help them buy their first home, and you may feel that it would be a kind thing to do, but you should be very cautious.
“Signing surety basically means that you are using your good credit rating for someone else’s benefit - and undertaking to extend your credit on their behalf too, if necessary,” says Rademeyer.
“If they default on their debt, the lender will be looking to you for all the missing funds, so you are in effect signing a deal that says you are a co-borrower.”
Does your insurance cover your outbuildings?
Making sure that everything forming part of your property is insured is essential.
This is according to Bertus Visser, Chief Executive of Distribution at PSG Insure, who says you must also double-check that any outbuildings you have on your property are included in your cover, as well as the contents stored within these outbuildings.
Outbuildings may not automatically be covered
Visser says outbuildings such as Wendy houses or sheds and freestanding garages are often packed with expensive tools - perhaps your bicycle or other sporting equipment, or sentimental items that you are holding on to.