Web Bytes 164

Rental market set to fly as home buying slumps - FNB
Business Report
Home buying demand is at its lowest ebb this decade, which could translate into a significant recovery in the housing rental market.

However, this did not yet imply strengthening of the somewhat weak buy-to-let market, First National Bank property strategist John Loos said in a new report.

Loos said home buying was adversely affected by the environment of rising interest rates and household debt, slower economic growth, absence of relief on transfer duty and tax, and the implementation of the National Credit Act.

"From a home buying demand point of view, things have probably not looked this bad at any stage of the cycle that has spanned [this] decade."
Business Report

Don't delay your property plans in a softer market
RodneyHayter.com - South Africa
The property market is still on track for a recovery possibly as early as the third quarter in 2008, notwithstanding the latest interest rate increase.

That's the view of Gerhard Kotzé, CEO of the ERA South Africa property group, after canvassing analysts and commentators in the industry.

"The general consensus is that the market will move sideways for about 12 months but, thereafter, it should start to recover and gradually build up a head of steam going into 2009," he says.

"Interest rates will have been lowered slightly by then, pent-up demand will need to be satisfied and salaries and wages will have caught up with home prices to some extent, making property more affordable. Also the final run-up to the World Cup will be in full swing, resulting in injections of money into the economy that will translate into further demand for property."
RodneyHayter.com

Rudco fails to repay lenders before NCR deadline
Personal Finance - South Africa
Rudco, the company that has been attracting a lot of interest by advertising home loans with an interest rate of six percent fixed for 20 years, this week failed to repay money it collected from would-be lenders in contravention of the National Credit Act (NCA) and the Usury Act, as it was instructed to do by the National Credit Regulator (NCR).

The NCR had already referred the matter to both the National Prosecuting Authority (the Scorpions) and the National Consumer Tribunal, the body set up to adjudicate in cases where credit providers contravene the law. This week, at a pre-trial conference at the tribunal, a new repayment deadline of 22 November was set, the NCR's Advocate Jan Augustyn says.

Rudco is obliged to give the NCR a report on its progress towards repaying some 1,800 people who applied for its debt consolidation loans by 13 November. The tribunal will reconvene on 23 November.
Personal Finance