FILTERS:

Web Bytes 474

3 April 2014

Turnaround times
Cape Town Master's Office
Turn around times at the Cape Town Master's Office for the issuing of LE/LAs in deceased estates and LA/MCs in trusts; issuing of S 42(2) certificates; payments to beneficiaries in the Guardian Fund; the issuing of appointments in insolvent estates and the examination of deceased estate accounts.
Cape Town Master's Office Notice

Interest rates move the correct one
Rawson - South Africa
MPC's decision to hold interest rates at current levels absolutely right

The South African business community – and the property marketing and development sector in particular - breathed a collective sigh of relief when the South African Reserve Bank Monetary Policy Committee announced that it will be holding the interest rate at its current level.

“However,” said Bill Rawson, Chairman of the Bill Rawson Property Group, “we have to accept that there is, as yet, no guarantee that this hold-back stance will be continued for the remainder of the year.”

“The recent decision to increase the rates was, in my view (and that of eminent economists such as Professor Brian Kantor and Annabel Bishop), probably not necessary but was possibly justifiable in the economic situation in which South Africa found itself – but I joined these high profile spokespeople in believing that South Africa’s entire welfare depends on promoting growth by maintaining the interest rate at its present low level for as long as possible - certainly for most of this year.”

As he reads the current data line-up, there are many ancillary reasons for adopting this view.
Rawson Interest Rates

Transfer duty and personal tax revenue
FNB - South Africa
February transfer duty revenue growth slows markedly, but data volatility means that it is too early to tell whether this reflects the start of a slowing property transaction and price growth trend
February SARS (South African Revenue Services) revenue data showed markedly slower growth in transfer duty revenue in February. There was a slowing in the monthly year-on-year growth rate of transfer duty revenue from 49.4% year-on-year in January to 19.8%. It is possible that this is a sign that the growth in property transaction volumes and values is slowing, but the monthly figures are known to be volatile, so it is too early to tell. Rather, we like to smooth out the number with a 3- month moving average, and for the 3-months to February we still saw massive growth of 35% yearon- year, painting a very strong picture.

Weak economic fundamentals in the form of a slow growth economy last year, and a multi-year slowing trend in household disposable income growth (important given that residential property transactions are a big part of the market), suggest that we should see some slowing growth in residential volumes and values soon, not to mention that interest rates have started to rise.
February Transfer Duty Revenue

New Joburg property rates and tariffs announced
IolProperty - South Africa
The proposed 2014/15 City of Joburg property rates and tariffs bring mainly good news this year. However, a shock revelation in the proposed tariff increases is that prepaid electricity is now more expensive than conventional electricity.

Although prepaid users do not pay the monthly service levy, thereby making it slightly cheaper, in the long run if they use a lot and are moved to a higher usage scale, the cost will overtake conventional electricity.

In the new proposed tariffs, the City of Joburg is clamping down harshly on people using large quantities of water and electricity, with costs rising by more than 10 percent at the upper ends of usage. Good news for businesses is that their rates have been reduced from three times higher than domestic rate to -0.2 percent.
IolProperty

Submit your comment:
 
Name
EMail
Comments
Security Picture (click to change)
Word shown in picture: