Property Barometer - Emigration and foreign buying
FNB - South Africa
In short, therefore, with regard to emigration selling of local property we do not appear to be seeing any negative impact (increase) from recently heightened domestic tensions. But we should not “rest on our laurels”, and think that our “brain drain” problem has permanently subsided. It is possible that in different (better) global economic times, the negative impact may have been different, and better global economic times will one day return.
According to the estate agent sample, however, one group which doesn’t appear to be affected by recent tensions is foreign buyers from African countries. Expressed as a percentage of total foreign buyers, the African contingent has increased further to 21% for the 2 quarters to the 3rd quarter of 2012. This continues an upward trend in this percentage from a low of 8.5% back in the 3rd quarter of 2010. Looking longer term, I believe that South Africa is likely to see further increase in the African foreign buyer percentage, as Africa’s economic fortunes continue to improve and its household wealth grows too.
Property Barometer Emigration and Foreign Buying Oct 2012
R500m for Durban's property billing system
iol - South Africa
In 2004, the approved development cost for the eThekwini municipality's onerous billing system was between R90 million and R150m.
Fast forward to February 2010, a go-live date for the system was projected for June 30 last year, but another R77m was needed.
This pushed the cost of developing and implementing the system to R474m.
Yesterday, it was decided that the city's ratepayers would have to fork out another R140m for the controversial revenue management system, bringing the total cost of developing it to more than half a billion rand.
The latest request for more funding came after the municipality recently paid an IT expert R1m to review the system and help it decide whether to cut its losses or invest in the RMS.
iolproperty.co.za
Your bond is your best investment
Moneyweb - South Africa
Avoid paying interest that equals or exceeds the original cost of your house.
You’re comfortably making your bond payments at the end of every month and are looking for a sensible way to invest your surplus capital. What is the next step in making your hard-earned money work best for you?
Financial advisers will likely run you through a range of investment options with varying levels of risk and yield, some of which might have the potential to reap significant benefits down the line.
Yet, why look to diversify your investment portfolio when the best possible investment you could make is, in fact, in your existing bond? It is often tempting to invest an unforeseen windfall or additional monthly income into an investment class that might seem more exciting than a bond. The amount you’ll save by investing any excess capital into your bond will, in the long term, far outweigh the rate of return you could hope to achieve by investing elsewhere.
moneyweb.co.za
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