Property News - January 2008

Welcome to our property investment newsletter, the aim of which is to keep you up to date and informed as to the most recent property trends.

This month our development focus is on the newly renovated Berea Loft Apartments, in Durban, where one can still secure a fully managed investment property for under R300k. These units are an absolute give away.

In our featured property slot we have a United Kingdom buy-to-let property investment package with units costing between 100 000 & 130 000 GBP. With rents of 450 -550 GBP these deals will be cash positive from day one!

Both these developments are great investment opportunities and we encourage our readers to take the time to have a look at them. Full investment reports can be provided on request.

Articles

Property Finance – Registering a maximum bond makes long-term cents!

One of the simplest and most cost-effective forms of borrowing on the market today, and it’s a rainy day option that should be seriously considered by prospective buyers, says Mark Beckett, CEO of leading mortgage originator Bond Choice Home Loans.

Entrepreneurial Advice – Advantages of property finance

Arguably the most rewarding experience for an entrepreneur growing his or her business is the opportunity to exercise exclusive ownership over their own business property. Owning real-estate in this form is more than merely iconic and unveils further opportunities for the entrepreneur to capitalise on.

Knight Frank Global House Price Index Q3 2007

The latest Knight Frank Global Price Index reveals that growth in residential property prices around the world is slowing. On an unweighted basis prices globally rose by 8.2% per annum to Q3 2007 compared to 9.6% 12 months earlier. Rising interest rates have been a major factor in slowing house price growth, together with the tightening of lending criteria seen in many European countries.

Legal Talk – Leases of Commercial Property from a Tenant’s Perspective

By far the greater number of businesses are operated from rented (as opposed to owned) premises. In every case there is a lease between a landlord and a tenant. Such leases need not necessarily be in writing, but may be constituted by way of an oral agreement or even by conduct. From an evidential point of view it is desirable that leases should be reduced to writing and signed by the parties.

The SA residential property sector – market reflections and forecasts

After a massive house price boom during the first half of the new millennium, one could be forgiven for believing that it was a ‘once in a lifetime phenomenon’ never to be repeated in our lifetime. And, yes, realistically, the pace of house price inflation that was achieved over those years will be difficult to repeat any time soon. Using the Absa House Price Index, from the end of 1999 until the end of 2005, cumulative house price inflation was 208.5%. By 2006, it appeared to have been generally accepted that the house price boom was over. But was it?

SA Property Trends - Higher interest rates set to slow housing market further

The Reserve Bank’s Monetary Policy Committee (MPC) hiked the repo rate by a further 50 basis points to 11%, prompting banks to raise their prime and mortgage rates to 14,5%. Interest rates have been hiked by a total of 400 basis points since mid-2006.