Time to Invest in South African Property

Expert Says Invest in Property

An article published on the Bizcommunity website reports on a recent visit by Dolf de Roos to South Africa. De Roos is an international speaker, educator, investor and author of eight best-selling books on property, including the New York Times bestseller, Real Estate Riches. He has run property investment seminars for over 20 years and is “passionate about the psychology of wealth”.

During a recent presentation made to 800 guests hosted by the Private Property Group at Montecasino, de Roos put across a strong message that “there is ample opportunity to generate wealth through property, especially in our current economic climate”. Private Property sponsored the expert’s trip and hosted this particular event for valued clients and business partners.

Justin Clarke, chairman of Private Property Holdings, says, “Dolf reminded us that we should not get stuck in the moment. If we look at how property prices grew during the up-cycle, most of us have done pretty well, even with a small decline in the market”.

Clarke adds the he was “fortunate enough to spend a fair amount of time with [de Roos] and was impressed that [he] took the time to understand the SA market. He was able to apply his international experience to developing a real opinion on what’s happening here”.

When asked by someone at the event if de Roos would risk investment in South Africa, his reply was simply, “What do you think I’m doing here?” The expert’s seminars aimed at teaching people how the world is dealing with the property market downturn and what South Africans could do to capitalize on the situation.

According to Clarke, “My lasting impression is of a powerful, immensely wealthy man who was content to fly Kulula and mucked in to unpack boxes when necessary. He showed a better depth of knowledge of the subject matter than any other property guru I have met to date”.

He adds that, “Private Property Holdings is extremely confident in the property market, which is why we were delighted to sponsor the events and share Dolf’s positive outlook with guests and delegates”.

The information in this article is courtesy of Private Property (“Invest in property,” says international expert”, Bizcommunity, 3 June 2008).

If you would like to buy or sell property in Cape Town's False Bay area, please visit www.coastalrealestate.co.za or www.falsebayproperty.co.za.

Coastal Property Shows More Strength than Other Sectors

Coastal Property Prices Somewhat Resilient

An article published in Business Report draws attention to growing concern over the ever-lengthening list of negative factors burdening property prices in South Africa. Reserve Bank governor, Tito Mboweni has made hawkish statements to the effect that the market should expect a repo rate hike of 100 basis points this month, which takes the prime interest rate to 16% and there is chance of a yet another hike of 50 basis points in August.

According to First National Bank (FNB), this would push monthly repayments on a R250 000 home loan over 20 years to R3 478 at 16%, from R2 496 in June 2006, when prime was just 10.5%. Property strategist for FNB, John Loos acknowledges that times in the residential property market are “tough”. The list of negative influences continues to expand, including high interest rates, rising inflation, a slowing economy, the National Credit Act, post-Polokwane unease, the Eskom crisis, Zimbabwe’s political dramas, xenophobic violence and low income yields.

Loos said that, “The list has become significantly longer than previously anticipated and especially interest rate hiking has gone further than we had forecast. As a result, a 21% decline in the value of new mortgage loans and re-advances is projected in 2008 and a period of national house price deflation is now forecast”.

Lightstone Risk Management’s national house price index reflects an annual property inflation drop to 7.8% in April, which is half a percentage point lower than in March and significantly lower than the rate of 14% in April 2007. Lightstone reported that higher value areas seem to be performing the worst and may have moved closer to zero or even negative nominal growth. Furthermore, house price inflation appears to be declining the fastest in smaller provincial markets.

According to the index, “Although nominal house price inflation is still positive, one major difference from last year is the decline in real house price inflation (adjusting for consumer price inflation). Currently, real house price inflation is around –3%, which is significantly down from last year when real house price inflation was 7%”.

Based on external economic forecasts involving factors such as domestic product growth, consumer inflation, disposable income growth and debt service ratios, Lightstone expected the downward trend in national house price inflation to continue and bottom out towards the middle of 2009. There is still a good chance that the low point for national nominal house price inflation will remain positive, although in some segments house prices are likely to decline even more.

In the analysis for January, Lightstone’s indication of national inflation came in at 9.2%. The high value segment, which includes properties priced between R1.5m and R750 000, continued its steep decline, dropping to 6.4%, while the more affordable sector (less than R250 000) continued to outdo the other segments and reached inflation of 24.3%.

As far as freehold property price inflation was concerned, it continued to outperform sectional titles by 3 percentage points. In January, a drop to 10.8% inflation was reported for freehold against 8% for sectional titles. Provincial growth performance in Gauteng for January reached 8.5%, which is lower than any of the other major provinces. The Eastern Cape performed best, with prices increasing by 9.7%.

The growth in coastal property prices, Lightstone found had shown surprising strength until the end of last year, but took a sharp downturn in January, dipping 2.7 percentage points to 8.5%. Growth fell back below non-coastal inflation, which came in at 9.4%,

The information in this article is courtesy of Wiseman Khuzwayo (“Growing list of negative factors burdens property prices”, Business Report, 1 June 2008).

If you are interested in buying or selling property in Cape Town's False Bay area, please visit www.falsebayproperty.co.za or www.coastalrealestate.co.za.

Is it only me, or does Tito need a new calculator?

Is it only me, or does Tito need a new calculator?

Is it only me, or does everyone else get the idea that Reserve Bank governor Tito Mboweni is adding up the right numbers but getting the wrong answer?

Every time the inflation rate rises, he sticks it to the consumer, blaming our spending habits for putting a strain on the economy. His reasoning, that there is too much money available to fund consumer credit, and that the money supply needs to be stunted through higher interest rates, sounds like dealing with one problem through a solution that is intended for something else completely. It’s like trying to run a Mac program on a Windows computer: it can be done, but that’s not the way it was intended to be used.

This is the way my mind sees it, and maybe it’s only me, but I suspect others think the same way. The interest rate itself, and especially regular increases in the interest rate, increases the cost of credit to manufacturers, distributors, transport operators, retailers, and everyone else involved in the supply chain. These costs are instantly passed on to the consumer, increasing their cost of living in a way that is completely out of their control.

So what does Tito do? Blames the consumer! Hikes the interest rate again! Starts the cycle again! And then blames the consumer again!

This is my plea to Tito: stop running Mac programs on your PC. It’s not good for you, it’s not good for consumers, and it’s not good for the economy. And get another calculator. Your existing one clearly is not adding up the right numbers.

Arthur Goldstruck blog in Thought Leader

Bullseye Arthur I concur 100%.Tito and his panel of experts put up the interest rates and the petrol prices which will obviously spike the cost of living statistics.

They then conclude that the man in the street is spending and needs to be punished and and ditto they do this again and again.

These same fat cats that get paid these lavish pay packets and bonuses from the fiscus coffers have the gall to tell the poverty stricken masses who comprise the majority of the population to tighten their belts.Most of these affected people cant afford belts and the few that just managed to access the formal sector find themselves floundering and slipping back into poverty.This is a dangerous consequence for South Africa both politically and socially.Our circumstances can not be compared to developed countries where all its citizens are middle class and have all the basics.They can survive a recession without dire starvation and homelesness

A developing country where most of the population are still confronting a third world reality need to spend and try and get the basics to survive in an rapidly expanding urban environment.Our ever growing miles of informal settlements confirm this.
Some form of low pegged interest rates for the lower end of the market is urgently needed.A South American country achieved fantastic growth in their standard of living and productivity in an inflationary environment.They then humanely introduced measures to remedy this gradually while retaining the benefits of this growth for all its citizens.Why do our politicians blindly follow the Western countries down the slippery slopes to oblivion?

This government has demonstrated that it is incapable of solving the housing crisis alone.The private sector who were the only hope of making a dent on this huge backlog have now shelved all affordable housing projects.In fact in South Africa the word “affordable housing” is an oxymoron.The new credit act was the final nail in the coffin of the masses ability to ever access credit for housing and self developement.

In conclusion its amazing to see all the analysts
giving credibility to the the same guys that embarked on the foolhardy crippling arms deal,the Eskom debacle and their inept management of law and order in all facets of “The New South Africa “.
A contracting economy fuels the brain drain,crime, fledgling business failures ,unemployment and poverty.Yes Tito your calculator as well as your compass is definitely broken.
Baffled Businessman?

Harold Kolnik on May 9th, 2008 at 1:21 am

If you are interested in buying or selling property in Cape Town's False Bay region, please visit www.falsebayproperty.co.za or www.coastalrealestate.co.za.

Gautengers Migrate to the Cape

Gautengers head for CT suburbs

Tuesday, 25 March 2008

Reports have been confirmed that there is now a steady migration of homeowners from Gauteng to Cape Town suburbs such as Scarborough, Kommetjie Simonstown and Noordhoek. The phenomenon has been christened 'semigration'. Jawitz Properties franchisee Harold Kolnik says that Joburg families, particularly with young children, are moving to the southern peninsula primarily to escape the high incidences of crime but also to pursue a better quality of life. "Many are loath to actually leave the country given of the disadvantage of the weak rand against currencies in the United Kingdom, the States and Australia, not to mention the trauma of actual relocation. The Cape is a more comfortable option," he says. However, he cautions, the equivalent of a R2m house in Joburg would fetch R5m in the Cape. Buyers have to be prepared to downscale and adjust to the local market. First-time buyers are finding it more difficult to enter the market due to the deterioration in affordability. Lower income groups are experiencing more strain than those in the higher income brackets due to rampant price inflation and the effects of interest rates. "Nevertheless, there's still good entry level value in areas such as Fish Hoek and Milkwood Park and Capri in Noordhoek – all of which are situated in a natural environment and close to the beach. A two-bedroom unit in a development in Fish Hoek would cost from R750k upwards and the average price of a stand-alone house starts at R950k, depending on the area," he says. In the higher priced bracket, suburbs such as Simonstown, Scarborough and Misty Cliffs offer a fantastic lifestyle with good security. Certain properties in these areas are 15% to 20% down on what they were two and half years ago, so now is the time for a buyer to lock into a good bargain. Kolnik says that there is no shortage of stock at present; but homes that are priced above R3m are taking up to five months to sell as opposed to two years ago when a property in this price bracket would sell within two months. The new municipal rates have made many holiday homes, that are marginally used, financially unviable. A number of these are now coming on to the market, many of which are priced at R3m and above. Likewise, rental stock is being sold off as the interest rate bites and landlords find they can no longer subsidise the bond. So, for the first time in a while, rentals are harder to find and those that are available are snapped up. Tighter security is being introduced in many of the newer developments such as De Goede Hoop and Klein Slangkop in Kommetjie. "These areas are still poplar with overseas buyers, but we are noticing a definite slackening off of interest since the Polokwane convention in November. Whereas, a couple of years ago, 40% of properties bought would be from foreign buyers or expatiates returning. "This has now dropped to about 20%. Foreigners are nervous about the political situation, the precarious power supply and the lack of infrastructure maintenance and are looking elsewhere to invest their money," he says. Article courtesy http://www.property24.com If you would like to buy or sell property in Cape Town's False Bay area, please visit www.falsebayproperty.co.za or www.coastalrealestate.co.za.

Black Buyers Heading South

Black buyers heading south

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PROSPECTIVE black buyers now make up a significant portion of Gauteng residents looking to relocate to Cape Town because of rising crime and violence.

Ian Slot, MD of Seeff Properties for Cape Town’s Atlantic seaboard, central business district and city bowl, says in general there is huge interest in Cape Town property from Gauteng residents.

Two weeks ago, when the group was marketing a residential property for sale in Clifton, it received 30 calls in one morning from Gauteng . Slot says 25% of the calls were from black buyers.

He says it is an interesting new trend because he has been regularly told by black buyers and representatives of black buyers that there is a “hesitancy on the part of black buyers to buy in the Cape”.

“The reason for the hesitancy, we are told, is a perception on the part of black buyers that full integration has not taken place in Cape Town, like it has in the rest of the country.

“The perception of Cape Town is changing and this is demonstrated by the fact that we are getting more black buyers wanting to buy in Cape Town or relocate there. People are wanting to leave Gauteng because of the perception of increasing crime and violence, and this cuts across the colour line.”

He says the number of interested black buyers has started increasing only in recent months.

Last month, auction Alliance Group auctioneers told Business Day there had been a spike in the number of Gauteng residents looking to “semigrate” to coastal areas, in particular Cape Town.

Rael Levitt, CEO of Alliance Group, said at the time that the electricity woes, traffic and a “wave of shocking crimes” were among the factors influencing this trend.

Levitt said there was an impression, right or wrong , among Gauteng residents that Cape Town was safer than Johannesburg and less prone to power cuts and traffic jams.

Slot says the “wave of semigration” is economically defined and not racially or ethnically defined.

“There are significant numbers of black people in the upper middle class, and the black buyers are interested in the same areas as middle-class white buyers.”

He says areas such as Sea Point, where properties are priced from R2,5m to R3m, are popular and that others are also looking at more expensive areas such as Bantry Bay, Clifton and Fresnaye.

“I wouldn’t say the percentage of black buyers among current buyers is as high yet as the percentage of inquiries,” says Slot.

Meanwhile, Jawitz Properties in the Cape’s southern peninsula confirms there has been a steady migration of home owners from Gauteng to suburbs such as Scarborough, Kommetjie, Simon’s Town, and Noordhoek because of crime in Johannesburg.

Harold Kolnik, franchisee for Jawitz Properties in the southern peninsula , says he has seen only a small percentage of interested black buyers.

“Most of what I’m seeing in my neck of the woods is people who have been coming to the area on holiday for a number of years,” Kolnik says.

He says the southern peninsula is one of the Cape’s “best-kept secrets” with “fantastic prices” relative to expensive areas such as Clifton and Camps Bay.

He says black buyers in Gauteng are not aware of the southern peninsula and the value it offers compared with places such as Clifton and Camps Bay, which are far better known.

“Black buyers would find price advantages of 30% to 40% in buying in the southern peninsula, compared with Atlantic seaboard prices,” Kolnik says. - Nick Wilson

If you would like to buy or sell property in Cape Town's False Bay area, please visit www.falsebayproperty.co.za or www.coastalrealestate.co.za.

Dispassionate and harsh economic measures are dispossessing the people of hope and their birthright

“Dispassionate and harsh economic measures are dispossessing the people of hope and their birthright”
2:13AM, Saturday, 12 Apr, 2008
South Africa is already experiencing social unrest due to the acute housing shortage and overcrowded living conditions being experienced by the poorer majority. State housing schemes have all failed to deliver and funds have been misused due to flawed tendering processes, corruption and inept management. Present fiscal policy is hurting and slowing the key sectors that could remedy and stabilize the entire economy. Three budgets ago the government reduced transfer duty in line with its stated policy of assisting the entry level buyer to acquire a home; this has now effectively been negated. Now these buyers are the most vulnerable and most likely to lose their assets. How unfair and crazy is this? The man in the street did not cause the spike in the inflation statistics through reckless spending. The raising of interest rates and the fuel price are to blame. The sectors that should be leading the way are the banking and property Industries It is a known fact that developing nations such as South Africa require high growth in order to close the wide chasm between rich and poor The following Afro-centric remedies need to be implemented almost immediately; Interest rates on all mortgages of one million rand and less should be lowered to a pegged interest rate of not more than eight percent and lowered as things improve. This would be subsidized by the higher end loan sector whom are not in danger of losing their homes in a high interest rate environment. The onerous and unwieldy process should be made more user friendly for the less sophisticated and more informal prospective home owners. Innovative people friendly homes already exist in other parts of Africa that are safer, healthier, enviro-friendly and economically built because its materials are readily available Mozambique villages are charming examples of low cost thermally efficient and flame proof homes that are mostly built with bamboo, latte, mud or gravel that is plastered and very weatherproof. These measures would kick start the property market with the new buyers coming in at the bottom end. Developers could now focus on this sector of the market with its resultant job creation. Energy saving features should be introduced and subsidized by Government & Eskom. It is mystifying why our economists follow the West whom are unable to keep their own economies afloat and are blind to our own unique realities. The west are presently dropping the already low rates to avoid their economies going into recession, but our “experts “have chosen to raise them further. The logic of this is mystifying and most baffling. These public servants are getting paid generous wages from the state coffers so are immune from the hardship of belt tightening. This nation is capable and has achieved great and miraculous things in the past as well as producing some of the finest human beings and leaders on the planet. We are a special people with our own unique destiny and deserve that caliber of leadership to liberate us all. Best of all might we might yet see the end of the Pseudo-Tuscan eyesores that litter our country and rediscover our own African architectural style. Harold Kolnik Principal: Jawitz False Bay Property If you would like to buy or sell property in Cape Town's False Bay area, please don't hesitate to visit www.falsebayproperty.co.za or www.coastalrealestate.co.za.

Noordhoek Area Information

The Noordhoek Valley is without a doubt one of Cape Town’s most treasured locations and is found in the False Bay area on the Cape’s Southern Peninsula. With a famous beach and vast wetlands, the area has the added charm of a rural atmosphere and rustic surroundings. Those who buy property here are bound to take advantage of the sun-kissed beaches, quaint fishing harbours, penguin sanctuaries and dream diving opportunities on offer in and around the area.


The tranquil village is found at the end of the famous Chapman’s Peak Drive, which begins in Hout Bay and winds its way all the way down to Noordhoek. The area’s main attraction is the pristine sandy beach, which runs for several kilometres across the bay to Kommetjie and offers some of the most beautiful sea views and plenty of watersport activities. Many of the properties for sale in this part of Cape Town are located on or just back from the beachfront, taking full advantage of the panoramic ocean views.


Being a somewhat rural area, Noordhoek is also home to a number of commercial farms and smallholdings, with many local residents breeding and stabling horses. The spectacular sunsets can be enjoyed on horseback and many of the farms offer horse riding for adults and children alike. Very few suburbs on the South Peninsula have such a vibrant rural and artistic feel and Cape Town is a mere 25 minutes drive away.


Today, the area has expanded up the mountain to Ou Kaapse Weg and south towards Kommetjie, with some of its more well-known housing estates and residential suburbs being De Goede Hoop, Belvedere, San Michelle, Stonehaven, Cape Village, Milkwood Park, Sun Valley, Brookwood Estates, Noordsig and the Lakes, to name but a few. The Noordhoek Farm Village has a wonderful selection of farm stall restaurants and pubs, coffee shops and unusual eclectic shops that have become a magnet for both locals and tourists.

The Red Herring Trading Yard situated in the beach area heralded the start of a lovely Cape vernacular housing style, which has since set the benchmark for the tasteful development in the area. Monkey Valley is located on a hilltop and surrounded by milkwood forests, offering upmarket accommodation and magnificent ocean views. The properties for sale in Noordhoek range from residential homes and apartments, to holiday houses and flats, with smallholdings and farms, as well as stands and vacant land available.

We list the attractions in the vicinity below:

Victoria and Alfred Waterfront Development Cavendish Square Fashion Mecca Long Beach Mall Misty Cliffs beaches Scarborough beaches Witsands windsurfing and surfing Mecca Simon’s Town Cape Point Boulder’s Beach Boulder’s Beach Penguin Reserve Kalk Bay Fish Harbour Simonstown Yacht Club Chapman’s Peak HoutBay St James Glencairn Beach Whale watching along both coastlines False Bay with all its beaches Bird watchers haven Hiking trails on Slangkop mountain

• If you would like to buy or sell property in Noordhoek Cape Town, please visit www.noordhoekproperties.co.za ; www.coastalrealestate.co.za or www.falsebayproperty.co.za.