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Consumers and homeowners cock a snoot at Tito
Moneyweb.co.za - South Africa
South Africans continue to borrow at breakneck speed, in spite of the first salvo of interest rate hikes. The numbers may spur the Reserve Bank to keep its finger on the trigger.

Credit granted to the private sector grew by a firm 24,68% (year-on-year) in July, up from the already-rapid pace of 23,85% set in June; the market expectation had been that credit growth would slow in July.

Mortgage advances, which make up nearly half of the R36bn in total new credit provided, swelled by a staggering 30,2% in July (29,8% in June), indicating that the June rate rise had had little effect on house buyers' willingness to finance their purchases.

Although the top end of the housing market may have lost some steam, it seems interest is shifting to the lower echelons, which is keeping the home loans momentum going.

State to sell properties to private sector
Eprop.co.za - South Africa
Opportunities for property developers will arise from the state's disposal process, Public Enterprises Minister Alec Erwin said.

Speaking at a Property Investors Conference in Port Elizabeth (PE), the minister said that state owned enterprises (SOEs) were divesting themselves of assets and enterprises "that are no longer integral to their business operations, as their activities become more focused."

"My department, the Department of Public Enterprises, has established a Joint Projects Facility to identify optimal ways to dispose of non-core property and to manage the disposal process."

Rental Agreement Offers Protection
Property24.co.za - South Africa
Entering a property rental agreement means both the landlord and tenant have responsibilities that require clear guidelines before the lease is signed.

Trafalgar Chairman Neville Schaefer said protection from both unscrupulous tenants and landlords was a two-way street secured before the tenant moved into the property. In this context both parties knew their responsibilities and understood the lease agreement.

Traditionally tenants were responsible for internal maintenance, thus placing the onus on them to wholly inspect the property before signing the legally-binding lease. Landlords would be expected to cover "fair wear and tear" within a property, an example of which may be marks on the carpet or scuffing on the walls.

However, Schaefer said internal maintenance discounted electrical and plumbing issues, meaning that should the geyser explode or the wiring fuse, the onus was on the owner to repair and replace.

Liquid market coming
Financial Mail - South Africa
The world is in the early stages of the greatest financial liquidity in history, and it is already bringing about a global revolution in property investment. SA must quickly become part of it.

That's the message Sam Zell gave to SA's big property owners, who held a conference in Johannesburg last week to explore how to make the JSE-listed property sector more attractive to international investors.

Zell heads the biggest real estate investment trusts (Reits) in the USA. He says that much of the capital flow will come from the baby boomers - 85m Americans and a similar number of Europeans heading into their 60s - who have wealth, a long life ahead of them and a great need for income-producing investments.
Financial Mail

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