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FNB Property Barometer Quarterly Review February 2011
FNB - South Africa
OUTLOOK
As a result of the weak demand level relative to supply, the market is believed to have been in a 2nd round of average price decline during the 2nd half of 2010 and early-2011, after the 1st average price decline of the current cycle took place in 2008/9.

This is not yet visible in the year-on-year price growth rate (which still showed a small +1.4% in January 2011), but is possibly visible in the month-on-month growth rate. We say possibly, because the index is not seasonally-adjusted, so part of a dip can often be attributed to seasonal factors. However, the month-on-month declines were frequent since June 2010, and we believe it to be more than seasonal.

It is believed to be the result of a lack of further interest rate reduction since August 2009, where-after the SARB started to move far slower on rate cuts, accompanied by high levels of household sector indebtedness and financial pressure, and of course what we believe to be a market unbalanced in favour of supply.

The Firstrand expectation is for no further interest rate cutting in 2011, while the SARB Leading Indicator points to a very flat start to 2011 for at least the credit-driven part of the residential market. The expected lack of stimulus, along with our indications that the market remains oversupplied, lead to the expectation of some mild average price decline in 2011, and we pencil in an average price level for 2011 that is approximately -1% lower than the average for 2010.
FNB Quarterly Residential Property Review

Home owners urged to avoid tax penalty
Business Day - South Africa
THE South African Institute of Chartered Accountants (Saica) has urged taxpayers to take advantage of new tax laws to transfer property out of companies and trusts into their own names to avoid hefty tax charges.

Taxpayers who failed to take advantage of the laws before the end of December next year could face adverse tax consequences, Saica's project director for tax, Muneer Hassan, warned earlier this week. "If you don't transfer your primary residence into your name before the cut-off date you'll expose yourself or your beneficiaries of your estate."

Mr Hassan said failure to take advantage of the tax concessions could expose owners, when they eventually transferred residences to their own names, to a combination of capital gains tax, transfer duties, secondary tax on companies or the new dividends tax if the disposal occurred after the dividends tax came into effect. He said that by missing this opportunity, taxpayers could pay hundreds of thousands of rand in capital gains tax alone.
BusinessDay

Drafting of wills - 2 Day Workshop
L.E.A.D - South Africa
Purpose

• To understand the importance of a properly drafted will.
  
• To be able to draft a proper and valid will.
  
• To appreciate the ramifications of a poor or defective will.

• Formalities of a valid will.
  
• Non-compliance with formalities.
  
• Freedom of testation.
  
• Information and instructions of client.
  
• Drafting skills - style and technique.
  
• Avoidance of problems.
  
• Case law