Tuesday, 13 May 2014

Investors and The Elections - What next?

I do think that investors need to be aware that there are some other issues that are playing out that will give us some direction in the future. Thanks to David te Brake from Pioneer for the input.

The Platinum belt strike is becoming a very meaningful stand-off between the Unions and Business.

The Rand / Dollar exchange rate is being affected by some of SA’s weak economic data. Some of the key issues are the current account deficit, the budget deficit, possible lower tax collections, the financing of both these deficits, high unemployment, low job creation, inflation, rising interest rate and the lack of priority for infrastructure spending, as opposed to wage and grant increases. These issues play a much greater role in your investments than the noise around the election.
The markets have continued to perform reasonably well this year; and people keep questioning this. The sad reality is that the rand looks to be on a declining trajectory, and this weaknesses has continued to help push our markets up. This is because a lot of local businesses in South Africa have got operations outside of South Africa and those profits help the markets a lot.

The three year decline of the Rand against major currencies is a serious concern; however there is nothing meaningful that is being done to stop further declines.
The only thing that may reverse this trend in the short term is a massive increase in resource prices (gold & platinum) and to be effective, that increase would have occur and be in conjunction with a speedy resolution of the mining sector strikes. It is no good if the prices rise and our mines are all closed.

We seem to be hoping for larger and larger miracles without addressing core economic issues, and sadly none of the political parties that I have observed have really come forward with proper plans to reverse this trend. They are all shouting out the same cliches in their promises – they’ll all create jobs, they all promise to stop corruption, they all promise to improve infrastructure, etc.

I think it is prudent for investors to possibly be looking to increase their offshore exposure in the future to hedge against this currency decline so getting the best out of money transfers from South Africa is key.

Tuesday, 15 April 2014



Your Chance To Become a Home Owner!
New development Loerie Park in Anzac ext 2 Brakpan. Loerie Park is situated on Loerie Road. Close to Anzac Primary school. 500 meters. Across from  the Golf course, and close to shopping centres, and all main roads.

The complex will have 50 apartments when completed:
* 6 Apartments with 2 bedrooms, 2 bathrooms, open plan living area, modern kitchen and stove, large balcony with sliding door and private stoep. Priced at R478 000. 62sqm.
* 44 Apartments with 2 bedrooms, 1 bathroom, open plan living area with modern kitchen and stove. 52 sqm. Priced at R378 000. first floor. R398 000 ground floor.
* All apartments are fully tiled, with modern finishes and built in BIC. Spacious!
* All apartments have pre-paid electricity meters.

* No Transfer duty.
* Investors welcome! Rental income of R4000.

Lizette Vilonel lizette@goldenhomes.co.za
071 455 3674

Wednesday, 26 February 2014

10 Reasons why budget speech will matter in 2014

Forget about staying in bed, Pravin Gordhans’ 2014 budget speech today is
Min Pravin Gordhan
bound to get your blood up one way or the other.  I feel it is all about managing the budget deficit and spending on social needs and ensuring standard economic growth.

Why does the budget speech for 2014 matter?

1.       We need to make sure we balance social spending versus making sure we grow economically. A big balancing act from Pravin Gordhan.

2.       It is the 5th democratic election year since 1994. Listen to the 2014 budget speech and then also listen for budget allocations and any changes on taxes.

3.       Listen if the budget speech will contain steps to cut state spending and lower taxes.  A high hope.

4.       Will this force Unions to stage more protests for job creation – will the growth be part of the speech?

5.       Will the budget speech support job creation as a whole and stimulate economy.

6.       Can we expect sin taxes to go up on tobacco and alcohol?
7.       If the budget is not managed expect a broader tax creep such as addition tax types.

8.       There is almost certainly going to be an increase in the fuel levy tax – this is keeping fingers crossed time.

9.       Being an election – someone is going to get a windfall to boost election votes- watch this space.  I will apologize if wrong!

10.   2013 has been financially tough on all South Africans – will there be good news in the wings!
We will publish the full budget speech 2014 by Minister 

Monday, 2 December 2013

Are you a South African Living overseas and you want a home loan in South Africa?

The first thing you must know is that depending on the bank your home loan will be between 50% and 70%
and under the right circumstances you could get up to a 100%, but the truth is the chances are very small of this happening.

You will need to get a copy of your work contract, work permit and make sure the contract is signed.

You will need up to six (6) Months payslips and make sure you fill in an income and expenses form in both the currency you earn in and in SA Rands and sign both.

Make sure you have copies of your passport and SA ID and if married send a marriage certificate.  Internet bank statements will work and ideally you should be sending some money home to a bank in South Africa, this would be the same bank account that will service your home loan.

What would go against your application - not meaning that you will not get the loan, but it will make it more difficult.

1. Self employed
2. Pure commission earners
3. Lack of documents
4. Contract worker
5. Over exposure

But it is all possible and I recommend sue your mortgage originator to all the ground work for you.