 |
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| The
total impact on home loan repayments, since the start
of rate hikes in 2006, is now more than significant. |
|
| There
is simply nothing like The Chicago Spire anywhere in
the world. This is your chance to own a piece of iconic
history. |
|
You
should also familiarise
yourself with some common
commercial property terms. |
|
| Investments
valued at a R1.2billion have been pumped into Durban's
inner city Urban Development Zone (UDZ). Get in on the
action. |
|
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RESIDENTIAL SALES DOWN, RENTALS UP...
|
|
| IN
THIS MAY 2008 NEWSLETTER WE LOOK AT:
1.
LATEST PROPERTY OUTLOOK – researched
and written by Stuart Murray
Stuart Murray brings
you the latest in residential property
trends. This research culminates in interesting
reading and is a must-read for all property
owners and investors.
2.
RESIDENTIAL SALES DOWN, RENTALS UP
3. RENTAL YIELDS AND COMPARATIVES
| -------------------------------------------------------------------------------------------------------- |
|
| -------------------------------------------------------------------------------------------------------- |
|
 |
LATEST
PROPERTY OUTLOOK
– 6 MAY 2008:
Read
it Here
Dear
Reader,
Should
you be a homeowner
or property investor,
then reading the
latest Property
Outlook will keep
you informed of
all financial issues
that affect you
and your property
values. Stuart Murray
is the editor of
IP (Intellectual
Property) magazine.
Click
Here to find more
IP articles by Stuart
Murray |
Volumes
in the residential
property market
have fallen
by as much
as 30% since
the beginning
of the year
as house price
growth has
stagnated.
It is now
difficult
to agree which
of a number
of adverse
conditions
has had the
greatest negative
impact, but
rising interest
rates is probably
at the top
of the ladder.
April’s
50 points
increase by
the Reserve
Bank was considered
by many analysts
to be the
final straw
in breaking
the housing
market’s
back. In nominal
terms, house
prices still
showed 8,7%
year-on-year
growth in
March, according
to Absa’s
House Price
Index.
But with inflation
at 9,4% this
relates to
-0,7% in real
terms.
This is the
first time
since June
1999 that
real year-on-year
house price
growth was
negative.
Read
more here… |
|
|
|
|
| RESIDENTIAL
SALES DOWN, RENTALS UP |
|
1.
Residential Sales Down
2. Rentals Up
3. Rental Areas Comparatives |
|
|
| -------------------------------------------------------------------------------------------------------- |
|
RESIDENTIAL
SALES DOWN
It is being widely reported
that the First National Bank's
(FNB) residential property barometer
has dropped to the lowest level
recorded for any quarter since
its inception in 2003. The barometer,
which measures commercial activity
in South Africa's major urban
centres, dropped to 4.96, on
a scale of one to 10, in the
first quarter of 2008, from
5.09 in 2007.
TOUGH
SALE
FNB reports that the average
time a house sits on the market
is now 12 weeks and four days,
with up to 83% of people selling
their houses at a much lower
rate than the asking price.
The total impact on
home loan repayments, since
the start of rate hikes in
2006, is now becoming more
than significant.
On
a R1million house -
the cumulative impact
of 450 basis points
(bps) worth of hikes
(9 x .50bps) is an increase
in the monthly repayment
value by R3,184 |
|
 |
CHANGE TO
20-YEAR BOND REPAYMENTS FOLLOWING
9 x 50 BP INTEREST RATE HIKES Pre-June
2006 to mid 2008
|
RENTALS
UP
When comparing the rental market
with the home buying market,
it truly seems to be chalk and
cheese. However, although the
two market’s cycles thrive
on different economic forces,
the rental market often benefiting
from more unfavourable conditions,
they are very much interlinked,
with the rental market being
a prerequisite for the home
buying market’s well-being.
With the National Credit Act
and the recent rate increases
(and possibly more on the way),
there are more people struggling
to get onto the property ladder,
which in turn encourages rental
markets to go up. This is good
news for buy-to-let investors.
Pam Golding Properties' rentals
director for the Western Cape,
Dexter Leite comments that growing
demand for rental accommodation
has already seen rentals rise
by an average of 8% over the
past 12 months.
| -------------------------------------------------------------------------------------------------------- |
THE
FOLLOWING SHOW AREA
RENTAL YIELDS AND COMPARATIVES
|
| -------------------------------------------------------------------------------------------------------- |
•
Gross income yields per
property value band (annual
operating income as a
percentage of
•
property value)
•
Time rental properties
stay vacant
•
Top 10 highest areas per
m²: South Africa
- Rand per m²
|
GROSS
INCOME YIELDS PER PROPERTY VALUE
BAND
 |
|
*
Insufficient respondents in this price category
| Source: realestaeweb.co.za
TIME
RENTAL PROPERTIES STAY VACANT
Source: realestaeweb.co.za
TOP
10 HIGHEST AREAS PER M²: SOUTH AFRICA
RAND PER M²
Source:
Rent Property
RESIDENTIAL
LIFESTYLE PROPERTIES FOR SALE IN SOUTH
AFRICA:
The Properties
For Sale in South Africa: |
| Click
through to the below areas to view
some fabulous opportunities on offer. |
|
|
|
|
|
INVESTORS
NOTICE BOARD
MAY '08 |
|
|
| PINETOWN
WEATHERS INTEREST
RATE STORM BETTER
THAN MOST |
|
 |
|
| Historically
an area, which has
always weathered
the interest rate
storm well, Pinetown,
situated just 10-12
minutes west or
inland of Durban
en route to Pietermaritzburg,
remains popular
among homebuyers
due to its value... |
| ...Read
On |
|
|
|
| R21
BILLION IN ANNUAL SALES
FOR THE PAM GOLDING PROPERTY
GROUP |
|
 |
|
| During
the financial year ended
February 2008 the Pam
Golding Property (PGP)
group achieved record
sales turnover of R21
billion... |
| ...Read
On |
|
|
| 'THE
EQUINOX' – NEW LANDMARK
SET TO FURTHER BOOST SEA
POINT'S REJUVENATION |
|
 |
|
| The
rejuvenation and revitalisation
of Sea Point in Cape Town
has been given further
impetus with the development
of The Equinox, the area's
first AAA grade commercial
development which is situated... |
| ...Read
On |
|
|
| SOUTHERN
DRAKENSBERG AREA LURES CITY-WEARY
PROPERTY BUYERS |
|
 |
|
| Despite
the current flattening of the
property market buyers are still
showing a great deal of interest
in the Southern Drakensberg
areas of Underberg and Himeville
as well as the surrounding countryside
– all of which... |
| ...Read
On |
|
|
| HIGH
END PROPERTY MARKET REMAINS
ACTIVE |
|
 |
|
| Grand
home on the market in Mooikloof
Equestrian Estate - The very
top end of the residential property
market continues to show considerable
activity, being relatively unaffected
by higher interest rates, says
Tara Whiting... |
| ...Read
On |
|
| RENTALS
SURGE ON BACK OF NCA AND INTEREST
RATES |
|
 |
|
| High
interest rates and the implementation
of the National Credit Act (NCA)
may have caused a slowdown in
residential property sales –
but they’ve also created
a surge in demand for rentals. |
| ...Read
More |
|
|
|
|
| NEW
KZN AIRPORT/TRADEPORT A MAJOR
BOOST FOR PROPERTY MARKET |
|
 |
|
| Currently
under construction, the King
Shaka International Airport
and Dube TradePort at La Mercy
are already beginning to have
a major positive impact on the
property market in the area,
with a high demand... |
| ...Read
On |
|
|
| PRIME
POSITIONED CHINTSA BAY DEVELOPMENT
ATTRACTS ROYAL SPANISH BUYER |
|
 |
|
| Interest
is already running high in the
new Chintsa Bay Beach Club -
an exclusive development comprising
42 houses and 55 apartments
located on approximately 18
hectares of prime positioned
beachfront... |
| ...Read
On |
|
|
| NEW
LUXURY DEVELOPMENT FOR TAMBOERSKLOOF |
|
 |
|
| An
exclusive new small apartment
complex is to be built in Quarry
Hill Road, Tamboerskloof, providing
just six opportunities for buyers
to own a modern retreat in one
of Cape Town’s most sought-after
areas... |
| ...Read
On |
|
|
| MONTCLAIR/WOODLANDS
AREA HIGHLY SOUGHT AFTER AMONG
BLACK BUYERS |
|
 |
|
| Situated
within easy reach of Durban's
city centre as well as suburbs
such as Umlazi, Isipingo and
Clairwood, the areas of Montclair
and Woodlands in the southern
part of Durban are experiencing
a strong demand... |
| ...Read
On |
|
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| |
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|
 |
Our
unique showday mapping facility is now
available to assist you in preparation
for your weekend showhouse quest. |
|
|
|
Pam
Golding Properties Office Network:
Contact a Pam Golding Properties Agent in your
area.
...Click
here |
|
|
|
|
| Pam
Golding Properties Head Office: Monterey, 12-14 Klaassens
Road, Bishopscourt, Cape Town, 7708. www.pamgolding.co.za |
 |
|
|
