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FNB May House Price Index
FNB - South Africa
The economic data released in March was, on balance, positive for residential property, with an improved economic growth situation and little in the way of inflation and interest rate hiking concerns. However, the housing CPI reminds us of various constraining factors on the housing market, including high utilities cost increases related to housing, and weak rental inflation supporting our view that the residential market should not expect too much support from the buy-to-let component.

Unchanged interest rate decision in May means a lack of further stimulus for the residential market
May also brought an unchanged interest rate decision from the SARB, leaving prime rate at 10% since the last rate cut in March. The March reduction was the sole cut since the end of the 2008/09 series, which started in December 2008 and continued uninterrupted to August 2009, totaling 5 percentage points all in all (with the March cut bringing the total in the cycle to 5.5 percentage points). It is now over 17 months since the first in the series of rate cuts. One view held is that it takes approximately 18 months to 2 years for the full effect of interest rate cuts to filter into the economy. With residential property demand being a leading part of the economy, one would expect much of the positive impact of the interest rate stimulus to have possibly been completed in a shorter time than this "rule of thumb". We believe, therefore, that at around mid-year we should start to see the first signs of declining growth, first in residential demand for existing homes, and then shortly afterward in house price inflation (this does not apply to the new development sector which lags considerably).
FNB May House Price Index

Deeds Office World Cup arrangements
Cape Town Deeds Office - South Africa
The Deeds Office Cape Town will adjust its operating times on the days on which Bafana Bafana plays its matches as set out above.

It appears that road closures in and around Cape Town on days that matches will be played in Cape Town do not affect streets in the immediate vicinity of the Deeds Office. No special arrangements will thus be made for these days.
Deeds Office World Cup Arrangements

Brokers deserve fees from conveyancers
Mortgage Strategy - UK
The payment of referral fees by conveyancers has no adverse impact on consumers, concludes a study recently published by the Legal Services Board.

The study goes a step further and confirms that conveyancers that pay fees tend to invest more in technology and training, provide a higher quality service and charge clients lower fees.

This is excellent news, as it acknowledges that the business model adopted by large and well resourced conveyancing firms results in a better deal for clients.
Mortgage Strategy

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