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Credit and mortgage advances
Absa - South Africa
Household credit and mortgage balances growth remains low

The total value of outstanding credit balances in the South African household sector increased by 3,7% year-on-year (y/y) to R1 395,3 billion at the end of September 2014. This was R3,7 billion up on the value of outstanding balances at end-August, when year-on-year growth was 3,6%. Growth in household secured credit balances slowed down further on the back of lower growth in mortgage balances, whereas growth in household unsecured credit balances improved from its recent low at the end of August. Household secured credit balances (unchanged at R1 063,1 billion from end-August and 76,2% of total household credit balances) recorded growth of 3% y/y at the end of September, down from 3,4% y/y at end-August and at a level last seen in February 2012. Secured credit includes instalment sales, leasing finance and mortgage loans to households.

Growth in household unsecured credit balances (amounting to R332,2 billion and 23,8% of total household credit balances) increased to 6,2% y/y at the end of September from 4,5% y/y at the end of August. The largest component of unsecured credit balances with a share of 61%, i.e. general loans and advances (largely personal loans and micro finance), posted growth of 4% y/y at end-September this year, up from 1,2% y/y at the end of August. Unsecured credit consists of general loans and advances, credit card debt and overdrafts.
Credit and mortgage advances

Important guidelines when selecting a managing agent
Milward and King - South Africa
With the demand for sectional title properties increasing drastically, this has highlighted the need for effective and appropriately registered sectional title property management companies. Milward and King, established in 1899, have been involved with the management of sectional title Schemes since the inception of the concept in South Africa and have positioned themselves as specialist in this field of property management.

Research your Managing Agent
Sean McGuinness, a principal at Milward and King, explains that it is crucially important to do the necessary research into the prospective management company who will manage the Body Corporate affairs. If the Body Corporate is run professionally and efficiently, this will have a positive influence on the market value of individual section/s within the Scheme. “It is imperative that the company has a traceable track record and subscribes to the various bodies governing the industry as well as ensuring that they provide comprehensive service so that the Scheme can run efficiently” These are a number of the important requirement of a competent management company:-
Guidelines when selecting a managing agent

What's involved in lease renewal
IolProperty - South Africa
A lease clause states that notice of the intention to renew the lease must be given in writing by the tenant, not later than three months before the expiry of the initial period, failing which the renewal option would lapse.

The option to renew is set out in the following terms in the lease:

The tenant shall furthermore have the right to renew this agreement of lease for a further period of, for example, four years. The escalation for the renewal period of four years shall be negotiated by the parties and failing agreement, at an escalation determined by a third party jointly agreed by the tenant and landlord, provided that the escalation for the renewal period shall not be less than 10 percent.

What are the implications of a renewal clause?

Checklist for choosing student accommodation
Trafalgar - South Africa
With matric exams now under way, the next major step for many learners will be leaving home to attend college or university – and finding somewhere to live while they complete their studies.

“And for the majority, this will probably not be a room on campus in an official residence, as SA tertiary institutions are woefully short of accommodation, says Andrew Schaefer, MD of leading national property management company Trafalgar.

Indeed, the latest available statistics from the Department of Higher Education and Training (DHT) show that there is only enough on-campus accommodation for one out of every five tertiary students, he says, and in spite of sizeable private sector investment in off-campus student accommodation in the past few years, the actual backlog of student beds at universities around the country is estimated at well over 500 000.
Checklist for student accommodation

Make sure you’re financially fit for your first home
Betterbond - South Africa
The decision to buy your first home is exciting and exhilarating, but before you set out to start climbing the property ladder, you need to set a realistic budget so that your dream doesn’t turn into a financial nightmare.

“It’s important to understand that buying your first home is not just about the mortgage,” says Shaun Rademeyer, CEO of BetterBond Home Loans, SA’s leading mortgage origination group. “There are also transaction costs to pay such as transfer duty and bond registration and legal fees, as well as the cost of moving and municipal connection deposits, for example.

“You need to have sufficient cash saved to meet these costs in addition to the amount you have available to put down a deposit, and then when you are working out your new monthly budget, you may need to add the premiums for new life and short-term insurance, for example, or a monthly levy if you are living in a gated complex, and higher utility bills.”
Financially fit

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