How sub-investment status may impact property market
ReMax - South Africa
Moody's Investors Service rating agency recently affirmed the country's status at two notches above sub-investment or junk status, but gave the country a negative outlook. While it is good news that the rating was not downgraded, we are not out of the woods just yet.
Moody's is only one of three rating agencies that will be reviewing the country's credit status to determine whether the rating will be downgraded to junk status, with Standard and Poor and Fitch still to conduct their reviews. The decision will largely be determined by the policymakers' ability to implement a strong medium-term strategy that will rein in the government's debt growth.
Goslett says that if the country is downgraded to junk status it would have a negative impact on consumers and the property market as a whole.
Housing Review - 2nd Quarter 2016
Absa - South Africa
Nominal year-on-year house price growth remained relatively low in the first quarter of 2016, after a sustained declining trend throughout 2015. Some real price deflation occurred in all segments of the market as a result of rising consumer price inflation. These trends in house price growth came on the back of a range of macroeconomic developments and factors affecting consumers financially and eventually the various categories of housing.
Against the background of trends in and the outlook for the economy, household finances and consumer confidence, nominal house price growth is forecast to slow down from 6,2% in 2015 to 4,7% this year and 4,3% next year, with the risk for price growth to the downside. Based on the forecasts for nominal house price growth and the headline consumer price inflation rate, real price deflation of 1,9% and 1,7% is projected for 2016 and 2017 respectively.
Housing Review 2016 Q2
Make extra insurance plans for show houses and letting
IolProperty - South Africa
Property owners will likely at some stage sell their house, consider renting it out either privately or through popular accommodation sites like Airbnb, or may even use it as a base for a business.
All and any of these events will result in foot traffic at your home, with different people coming onto your premises. This requires adequate insurance, says Bertus Visser, chief executive of distribution at PSG Insure.
"You should make sure your insurance is updated to include sufficient cover," he says.
You may find contents insurance is the perfect solution as this usually includes third party liability, as well as personal accident cover. If a guest or your tenant should get injured on your property, they may try to claim against you for any medical costs.
Estate Living on the rise in South Africa
Lightstone Property - South Africa
The property market in general has seen some interesting trends over the past few months, which we have explored and shared with you in our monthly newsletter - this one is no different.
Paul-Roux de Kock, Analytics Director at Lightstone, recently presented at a conference where he showcased noteworthy figures relating to the estate property market, which is of immense value, not only to property professionals, but to consumers as well.
When looking at the 6.2 million residential properties within South Africa, which totals R4.3 trillion in value, estate property makes up 5.1% of that total volume and accounts for approximately 15.1% of the overall property market value. This is a noteworthy figure, especially when considering the increasing market activity for the estate property market over the past few years which shows strong growth in both the volume and value of estate sales.