Monday, 20 December 2010

Top real estate property investments in South Africa

Gaining Ground? Rights and Property in South African Land ReformNotwithstanding the present economic condition throughout the world, South Africa stands firm in its real estate investment area and according to the study made by the investment experts, the prime real estate property still remains undervalued. With the positive result of the recent elections and the hosting of the 2010 FIFA World Cup, South Africa has always presented a stable economic condition especially the real estate market. When you buy an investment property in South Africa, you first need to consider ‘how much house can I afford” before investing your money. Though the South Africa real estate market seems to have consistent graph, yet there may be risks about the best investment property in South Africa. With the present real estate conditions, experts are of the opinion that there is likely to be rise in the real estate property prices.

Black Property Owners in the South, 1790-1915 (Blacks in the New World)

Why is there an anticipated rise in the property prices?

As the experts are of the opinion that there will be expected rise in the property prices in South Africa, this has prompted more and more international investors to invest in the South African real estate properties. There are some particular properties that are expected to appreciate in due course of time. These places have invited most investors throughout the globe. Some such places include the Western Cape which is a place that attracts the highest number of tourists in a year and stretches from St. Helena to Durban. The coast line of this place has always been a favorite spot for foreign investors as the atmosphere is serene. The price of this property is low and therefore it attracts real estate investors from all places across the world.

The prime property places are at hand for the investors to invest during the perfect opportunity. With the wine and olive guest farms that are full of dams and spring water from the mountains are the reasons that attract so many real estate investors to the southern tip of Africa.

Potential of the real estate investments to earn income

It is not that the real estate investments in the South Africa do not have the potential to generate enough revenue. Each and every hotspot of the foreign investors has the ability to generate enough amount of revenue, thereby decreasing the economic load on the buyer of the property. The Cape wine exports have been affected suddenly with the economic meltdown increasing the global trend that has resulted from the weakness of the African currency.

Therefore, with such positive reports of the South African real estate market, it is imperative that investors will hover around for investing in this market. It is important for them to consider ‘How much house can I afford” so that they do not invest in something that they cannot bear financially.

Tuesday, 7 December 2010

Home Starter Pack - What a Great Product 100% Plus costs Yes

SO you need up to R 120,000.00 extra to cover your deposit or attorney transfer or bond registration costs:

A Great Home Loan Product! - email now

Who said you cannot get 100% LTV plus costs.

Thursday, 18 November 2010

Interest Rates DROP again...

Well good news for those of you that own property in South Africa.
Interest rate cuts have been issued again, with the government and reserve bank trying to decrease the stregnth of the RAND against the DOLLAR.

Rate cut 0.5% = Current Interest Rate = 9%.


Monday, 8 November 2010

Property Forecast Hangover already started

So my property forecast is simply that it will be 2015 before the World property markets returns to where it was at the peak of the boom in 2007 early 2008. What a hangover!!!

Looking at all the property folks analysis of the US, UK, UAE, Eurozone and Africa markets, well results are fairly sound but when it comes to the hot prediction of the exciting crazy days and world property boom, 2015 may be overly optimistic.

So, even if we are correct and prices recover to their 2007 levels by 2015, there is no guarantee that all the factors, the hype, the buzz and all the sexy property ingredients that led to the amazing level of overseas property transactions in the run up to 2008 will have returned.

So what were the key drivers of the boom:  And will we get rid of the hangover

1. Releasing money from your property, driven by domestic property boom s

2. A liberal mortgage and home loans market and cheap credit - 108% Loan to value...scary

3. Strong currencies relative to currencies in seller destinations i.e Pound versus Rand

4. Fear of loss. Prices were going up so fast, buyers felt that doing nothing was losing them money which further re-inforced the cycle.   Remember the buying of whole floors in apartment blocks in Dubai. Cash was also King, But credit was certainly the Queen.

So the big question is: Will any of these conditions have returned by 2015? Any domestic property boom is unlikely given the upcoming spending cuts, tax rises and inflationary pressures which are bound to push up interest rates in the medium term, strengthen or weaken currencies, US pumping money into the economy, this huge dearth of empty properties, even on the west coast of Namibia - time will tell.

Credit should be easier to come by as the banks balance sheets improve and we see banks scrambling to cut costs at all cost, even to the detriment of their allies the mortgage originators (Look at ABSA) but new regulations from the FSA in UK, The FED in the STATES,  SARB Exchange regulations plus more, look certain to restrict loan-to-value rates and clamp down on these weird toxic home loans (Be careful of the 6% loan in SA) mortgages which will probably negate any improvements in the banking system.

Unfortunately, I believe the banks don't have the balls or the willingness to kick start this side of the business...... they are after all people like you and I who also want to live a normal life...ha!!

The best hope for the worlds property market is a collapse in the value of the euro, exchange control removal in South Africa, the FED to stop pumping newly printed money into an economy that must take a bath, firing of all these bankers and instead of bonus's they should get jail terms but by itself this is unlikely to be sufficient to persuade the worlds masses to start buying anywhere again in the kind of volumes we saw in 2007.

So whats the good news - surely its not all doom and gloom- even Julius has a decent side to him for heavens sake!!!

The good news is that the long-term attractiveness of property is rising due to soaring inflation, man's need for ownership, properties in possession making it feel like a good deal.

Transaction volumes may not return to 2007 levels for a generation but there is an increasing market for scarce property and also toxic for some, but cheap for others properties.

Income streams and big cash owners are still there and the other markets are very scary, try the stock market if you dare..

It is good news for agents and developers promoting almost perfect developments but over the next ten years the world market will be no place to offload huge resorts in slightly out of the way locations.  Look at the death of Golf resorts etc

Lower income spenders are buying cheaper property products and once in the market they will move upwards.

Africa and Brazil are hotter than before as far as business is, China is feeling the pinch and 2011 is just around the corner.

And the best news its almost Christmas.

Thursday, 4 November 2010

To All Homeowners out there - Take Heart

After climbing a great hill, one only finds that there are many more hills to climb!"

These are words from Madiba, former President Nelson Mandela.

I find these words so true when I look at the property market over the few years. Although there are globally tentative signs for recovery it is still a path full of hills.

As home owners we can just continue our climb.

be strong, be very strong life is good eeeeeiiiiish!

Tuesday, 2 November 2010

ABSA - wherefore art thou goest!!!!

So, it is quite interesting, first they offer only 85% home loans, then they decline left right and centre for new applications including half their own clients, now: Absa informs all the mortgage home loan origination companies, that, with effect from 1st December 2010, all originators will only be allowed to originate home loans to Absa that have a loan to value (“LTV”) of 40% or less.

That equates to about 2 clients out of 200,000.

we all know that most new home loans businesshas a loan to value amount (LTV) of between 75% and 100%, this announcement will have a huge impact on the options available to the homebuyers for the future and of course it will effect the originators and the estate agencies that they originate for.

I am sure that Standard Bank, Nedbank and FNB cannot wait as now they will certainly get the cream of the crop clients from now onwards.

So who dies in the melee, you would ask.  Well for one, we heard clearly that Bond Choice will cease to operate as an independent originator and its processing and servicing capacity (rebranded as “Findex”) will be used as part of an Absa “direct to real estate” strategy, in conjunction with Absa’s internal sales force.

So the news vine says that Absa will not accept any home loan business post 1 December 2010, for LTV’s in excess of 40%, from any originators or aggregators other than from estate agencies that sign a direct contract with Absa and that are willing to have the homebuyer’s application processed by “Findex”.

Once again, we see the true colours of a very powerful bank as they step forward to control the market.  I wonder how much they paid Nedbank for their share of Bondchoice ooops Findex!!

Watch the switching of homeloans go bezerk as people freak out about the control that ABSA puts on them.

So because they are not making the profits they should, defaults are at a high, PIP's are just too much, well why not get rid of the force that does all your screening, work and provides you with the best cleint base - hell lets get rid of them and own the balance.

The freedom of choice by using your financial consultant is being whipped away and now you have no choice but to use a prescribed force...I think someone has made a big mistake here!

Lets see...eeeeeish!

Monday, 1 November 2010


VERY Interesting - after such a long layoff on loans TAMWEEL takes a step in the right direction and being an Islamic home finance provider in the UAE, specifically DUBAI, announcing the relaunch of its core activities, after a very long layoff, this is indeed great stuff.

Following the recent announcement on a significant increase in the equity stake in the company by Dubai Islamic Bank, Tamweel is now well positioned to support the country's real estate sector once again.

Beginning of the month of the scorpion, precisely on November 1, 2010, Tamweel will offer up to 80% financing of the current value of ready residential properties in Dubai and Abu Dhabi. Finance is available for salaried and self-employed residents only who meet the required eligibility criteria. So still nothing for non-residents, but a step in the right direction.

"Tamweel is back in business," said Varun Sood, Chief Executive Officer, Home Finance Division. "While the past two years have been extremely challenging for the company - during a period of unprecedented turmoil in the global real estate and financial services sectors - we have persevered. All of us at Tamweel are grateful for the support of our stakeholders over that period.

"With a renewed focus on prudence and conservatism, we are focused on booking a high-quality portfolio of select customers and properties," he said. "Today, our mission is to contribute to the stability and growth of the UAE real estate market, and to ensure that individuals can avail of the same high standard of products and services that made Tamweel a benchmark for the home finance industry."

so great news from Sheik MO and the boys who facilitated the return of Tamweel to the market....... heita!!!!


Wednesday, 27 October 2010


 Well those that know have compiled some interesting analysis on 20 housing markets across the globe.  So who is taking the risk!!!

The data not only looks at house price trends but also compares current prices to their “fair value” which is calculated by looking at the historical average ratio of house prices to rents.

Europe’s most over-valued housing market is Spain (+47.6), followed by France (+42.5%), Sweden (+41.5%) and the UK (+32%).  Germany and Switzerland are the cheapest markets on -12.9% and -6.4% respectively.

Globally, the most expensive market is Hong Kong (+58%), followed by Australia (+63%).

Interestingly the US is around “fair value” at -2.1% or so they say.

And South Africa - that's a good question.  Prices In Cape Town are ridiculously high, JHB and Pretoria and Durban all seem kind of normal...but watch this space!!!

The figures suggest that painful housing market corrections will eventually surface in many markets across the globe.

However, there is quite a bit of evidence to suggest that housing is different to other asset markets because is it more correlated with affordability (a function of real incomes and home loan rates) rather than rents.

Unfortunately this argument still suggests that painful corrections may be on the horizon.

The UK and US seem intent on printing money to “support” their housing markets which will surely cause inflation and therefore interest rates to rise which will undermine affordability.

For countries like Spain within the Euro area, printing money is not an option. If you believe the data, (which comes from asking prices rather than sale prices) house prices still have a long way to fall.

South Africa, seems hell bent on controlling interest rates, inflation and exchange control, against a wall of protest and sensibility.

In the medium term, the only options would seem to be significant nominal falls in house prices or a currency devaluation (euro crisis).

Optimists will argue that housing markets will not correct because “it is different this time” as long term interest rates are permanently lower and the dynamics of supply and demand have changed (rising population etc).

Nobody can predict the future but almost everyone who has ever argued "it is different this time" when defending an asset price bubble has turned out to be wrong.

Expect a rocky road ahead.  Look what Standard Bank has just done, staff wise!! Whose next!!!!

Thursday, 21 October 2010

Who has your interest at heart?

Whose Your MOMMY?????? The best real estate agent in the world!!!

REAL ESTATE AGENT of 2010 and ahead!!!!

Well if you are looking for a bushveld property in Limpopo region of South Africa, there is only one person to speak to and this is a testimony from all of those who own properties in Raptors View, Hoedspruit Wildlife Estate, Balule, Blyde Wildlife Estate, Canyon, Moditlo, Hoedspruit Wildlife Escapes for some super deals and anywhere in the region.

Call Miss Magic - Barbara or better still email her

Get yourself into the bush my friend! Barbara did! and so did I!

Tuesday, 5 October 2010

Home Loans Interest rate WARS or WHO..S! - Pimping the ride.

So from 9/11 to 9/10 – one day that made a huge change for you and I, the South African consumer, not as dramatic but significant.

The lowest interest rate in more than 30 years and since August 1979 the same interest rate of 9.5%.

What does this mean for you, the man in the street, where is your benefit and what do you care? The question that is on most people’s minds is can I still get a home loan at -2% below prime? What about comparing interest rates before I buy, as I did before. What about my friend got a great rate from his bank, so why can’t I? Huh!

So what is in it for me? – Will I get a great rate? I think the most important thing to realize is that the prime lending rate is 9.5% - that is low and awesome and possibly near or at the bottom of its cycle.

When rates are low, you pay less for a home loan or any loan BUT you also get less interest when you save.

The definition of interest rates says it all and it’s good to know that even banks lend from each other. Interest rate is the rate at which interest is paid by a borrower for the use of money that they borrow from a lender and banks lend and borrow from and to each other using the IBOR rate or Inter-bank lending rate) – So that’s enough technical jargon for today.

When you apply for a loan, the best person to assist you in getting the VERY BEST RATE is your mortgage or bond originator. Why? You may ask.

Well simply, because they can apply for the loan, discuss your application and its chances of success and good rates with internal bank consultants, and do the online sums based on facts and add in their years of professional experience and knowledge – to give you the most accurate and up to date rate probability from ALL the lenders in one go.

This is probably the biggest, time (which IS MONEY) saver for you and secondly give you a fair and decent choice from which to choose the home loan you want.

SO, What About a Great Rate?

Firstly 9.5% is a great rate on its own. If you were investing in to a money saver type plan, would you get 9.5%, not that easily? Most of us only save a few R 100 per month at the most in any case. Speak to your bond originator re access bond management and then you will see the advantage of this rate.

So, ignore the above comment and let’s talk dirty!!

The average good rate today amongst banks varies very little. Today Standard Banks rates are not great, but FNB has better rates. Tomorrow, ABSA will beat Nedbank and Integer and SA Homeloans will offer better deals, BUT, and I mean a BIG BUT, this too shall change.

If you get a rate of 0.25% below prime – that’s great – take it. You might get 0.3% below from the next bank, but then you must check out your initial mortgage setup fee, which varies from bank to bank and also is often added into your home loan over the period of 20 years or so. Then you also have a monthly administration fee which varies and lastly a monthly insurance fee which could also be added into your home loan. Interest on insurance premiums eeeeish!!!

So, forget about great rates today. Win the war, not the battle! Remember, it is difficult to negotiate with those who do not share the same frame of reference.

Work on improving your rate after you have your home loan. It is so much easier and simpler.

There is no interest rate war at the moment, but there are certainly those that are selling you a great rate; “pimping the ride with the Interest rate who..s”


This is by no means the only list, but a few tips and pointers:

1. Equity or Loan to Value – A loan of 70% of the property value is a 70% LTV loan will assist you in getting a better rate than a 100% LTV loan – carry some of the risk yourself, the lenders love this.

2. You bank score – each bank rates you as a risk factor, good, medium, bad – do the math! Improve your bank score by being a good banker.

3. Let your mortgage originator do the work. Remember they only get paid on success!

4. Avoid falling for teaser rates! – It’s like looking at a centerfold spread in Playboy, kind of intangible!

5. Build your credit history – get a credit report today and do so annually!

6. Watch variable and fixed rates. If you are comfortable that rates will stay as they are for a while then remain variable. Else consider a fixed rate if you feel movement going up.

7. Save for a deposit.


Sorry, we are not magicians! Soothsayers or spiritualists – We can only tell the truth. Maybe, you should lend from your friend!

It is very simple. Every person is rated by a lender based on, Age, work, education, contribution, risk elements, banking practice, depth of voice resonance and ability to whistle whilst eating an apple! Forget about the rates for now. Get the deal first, do the rates later and most importantly, enjoy your home and count yourself blessed!

Tuesday, 14 September 2010

Dubai gets out of debt and restructuring accepted.

Dubai Worls has received formal agreement from over 99 per cent by value and approximately 99 per cent by number of its creditor banks to its restructuring proposal. “This formal agreement also marks the support of the creditors to the separation of Nakheel from Dubai World. The Government of Dubai continues to focus on Nakheel and is pleased with the significant progress achieved by the company to date in discussions with its creditors,”  so it is said.

Well the recovery continues.  this is indeed good news.

Friday, 10 September 2010


What an amazing day and date - the same interest rate as the 20th August 1979 - Gill Marcus you beauty. 
Marcus revealed the following before announcing her decision:

• Domestic inflation has moderated;
• Growth expected to remain low;
• Inflation to average 4.8% in 2012;
• Food prices remain benign;
• Inflation expected to be at 3.7% Q3 2010;
• CPI to average 5.1% in final quarter of 2012;
• Fears of reverse recession have diminished but risks still remain;
• Bank does not target exchange rates;
• Policy rates to remain low in developed economies;
• Rand main downside risk to inflation;
• Inflation moderated more than expected;
• Bond flows show fundamental shift;
• Growth to moderate further in H2;
• Domestic economic growth declined in Q2 in 2010, due to contraction in mining sector; growth in second half to be moderate;
• Consumers still constrained by debt;
• Household consumption may moderate; will be constrained by increased unemployment;
• Banks forecast of GDP growth has declined moderately to 2.8% in 2010;
• Impact of World Cup expenditure unclear at the moment;
• Underlying credit extension remains weak;
• Wage settlements main inflation risk and may affect employment;
• Growth to reach 3.2% in 2011;
• Low interest rate and inflation to support consumer;
• Increase productivity is needed;
• Administered prices place upside pressures on inflation outlook;
• Rand is stronger than anticipated.

So this is what it looks like thanks to Globalfundi our mortgage originators.

Thursday, 26 August 2010

STRIKE or NO STRIKE - what does it do to the Mortgage Market

Deeds office closed till further notice....eeeeeeish something the seller who needs his money, or the attorney who needs to transfer the home loan deal or the agent who needs commission or the mortgage originator who needs commission or the bank who want their fees or the buyer who needs a house to live in without paying occupational rent DOES NOT WANT TO HEAR!

Amazing, the very same people who strike for a better wage are not being paid by their bosses the government, but actually by you and I, their real bosses the tax payers.  The government just has an inability to negotiate with their employees as it is easier to spend the allocated budgets on absolute essentials such as top end Mercedes Benz and lease new police headquarters at prices that are more suited to 2025, never mind 2010.  But that's not the only issue.

The choice for civil servants to strike or not - is the true question and like all such situations the impact has an enormous effect on the property industry as whole.  Mortgage transfers aside, bankers, estate agents, financial folk are being impacted by their children being unable to go to school forcing work absenteeism as a starter. Insurance companies are having to brace themselves for high impact claims which overshadow the role they play in property insurance, development registrations, trustee and custodian assignments are being delayed and so these subtle impacts just role on and on....

then comes the prophet of doom talk of the police and the army going on strike and on and on

I gnome not what to say anymore......keep the financial faith the banks are lending fine right now......keep it up guys

Thursday, 19 August 2010

A bank versus an Agent versus commissions versus Sales SCARY

If you think the South African property market you’re working in is tough, spare a thought for the hard working estate agents on Spain’s Costa Del Sol.  eeeish!!!

Without doubt there are less agents in the market and those who have survived the onslaught are OK up there...but.....Agents selling overseas property in Spain have no such luxury. No Buyers and the competition for business has actually increased, forcing even some of the best run agencies to close their doors.  Seen that here in SA as well.

Now we know that the relationship between Banks and Agencies has always been kind off solid and a happy partnership -  SO WHATS THE SCOOP

Imagine this : You work hard “closing” a deal. Your buyer agrees and approaches the bank for a home loan. However the bank deliberately offers tough terms (40%+ deposits) but offers your client 100% finance on another similar property and is also prepared to discount heavily to get the property it owns off its books.- Sounds like a PIP scenario.  lets keep our eyes open.

This is exactly what’s happening in Spain and it is not only putting agents out of business, it’s disrupting the whole middle market as agents who want to make a living only have two choices:

1. Target cash buyers who are in a minority but at least can be closed

2. Sell high-end properties where the competition from banks is less (the majority of bank stock is low to
mid end apartments in sub prime locations)

The result of this situation is that there are far fewer agents than there should be, given the level of demand, selling mid-market property.

An overseas buyer looking in Spain does not just face mis-information from unrealistic property valuations, the people that can really help them and know the market have little incentive to do so.

It is a tragedy for the buyer and for the industry as a whole.

So Are they really - Tight-fisted bankers?

The obvious solution is of course for an agent is to work with the banks but the banks seem unwilling to allow agents to make even a meager living from the process.

Desperate and reactive

Although the situation is clearly terrible, it would be wrong to accuse the banks of cutting agents out through a cynical and well-thought out sales and marketing strategy.

According to what we have heard, banking staff have been told to get properties off their books and in many cases seem willing to accept almost any price.
The banking industry needs to act to prevent this from happening here in South Africa, and judging from what we see and hear they are remaining one step ahead of their European counterparts and working closely with Agents, online sales forces and mortgage brokers...well done Standard bank, ABSA, Nedbank and FNB - LeadSA.

The Spanish economy depends disproportionately on construction. The property sector and wider economy will not recover until the real estate market fully corrects and that correction could be dramatic (if banks start dumping properties onto the market because of a rise in reservation ratios for example) or it could be slower and less painful. A slower correction is better for everyone and for this to happen, banks and agents must work together. Banks cannot sell properties alone, they don’t have the time or expertise; and their unilateral reactive approach is not in their interests, or the interest of the wider economy.

LEAD SA - A Proud South African Initiative

Monday, 16 August 2010

Should I buy, fix, sell and get RICH!!!!!!

Yesterday, I bought a PIP (Yup! a property in possession). 
Thank heavens some other sucker could not afford to pay his homeloan.
I scored, I really, really scored as I could raise some money
from my other homeloan for this house. Oh, what a bargain!

Now, I am going to do quick, fixit, with my gardner and a couple of guys off the street who walk around carrying paintbrushes and ladders with card board adverts.  They are really so cheap and desperate for work that a few more bucks will sort that out.

Then i'll sell it on Private property so that i do not need an agent and I'll save myself a fortune.

Speculation, the mothers of invention. (Sic)

So whats the reality in property!!! Or does reality exist in properties in possession!

Owning property is no doubt great.  Owing the bank money for the property is not so hot, but the truth is not all of us have hard earned cash!!

Second mortgages, even third and fourth ones to cover that little speculative property, can be great when things are good and you have rental income, but not so great when the burning hole in your pocket hurts like crazy.

A quick fixit, can also be a quick drain on cash, especially with no recourse and no guarantees.  so be careful.

Choosing the right place and area.  That is tough to answer.  Position, position, position means cost, cost, cost - You pay big time, for the big view.  So keep these thoughts close and keep your head at all times.

The key thoughts are, are there people with money.  Parents with student kinders.  Older folks needing places without stairs.???

Real estate agents actively active in the area.  Do properties move in the area.  Do the banks finance in the area.  That information is always available for you. get a great real estate agent or mortgage originator to assist you.  they will, they want your business.

Oh, yes, please do not forget, selling means you need buyers.
Selling means you need a nice place for someone who wants it with things that work.

so, let us hope that your painter with the ladder is not the owner of the PIP!!!!  mmmmmmmmmmm

be cool, be cool!!! Its still a good deal, just make sure you prepare yourself well -- ask the debt doctor he can tell you everything

Monday, 2 August 2010

CIPRO - Keep your CC or Company Alive!!!!!


TransUnion would urgently like to alert our clients to the latest deregistration of business entities in South Africa by the Company and Intellectual Properties Registration Office (CIPRO). The deregistrations are due to a failure to lodge annual returns. Our clients would have received business alerts from our monitoring service informing them of business status changes on many of their debtors as a result of CIPRO providing us with a file that contained over 750 000 deregistered entities.

CIPRO uses annual returns to confirm whether a company or close corporation is still doing business, as well as to update their records with the latest information. Businesses must lodge their annual returns within their anniversary month of their incorporation up until the end of the month thereafter. Failure to submit within this specified two-month period will result in incurring a penalty fee of R150. Omitting to lodge an annual return within six months from the anniversary date of your company will result in the entity being deregistered on the CIPRO database.

A business entity will still have the opportunity to lodge its annual returns electronically via the CIPRO website while in deregistration, this will automatically change the business status back into “In business”. However if the entity has been placed into final deregistration a different process must be adhered to. We have provided this process below for your information.


If the deregistration process has been completed (finally deregistered) due to the failure of a business to lodge and pay annual returns, a written application may be made to the registrar who may restore the entity. An application for restoration for a close corporation must be made by the lodgement of a duly completed CK3 form which carries a statutory fee of R150. It is imperative that businesses pay this fee into their CIPRO bank account prior to lodging the CK3 or the application will be denied. Applications can be e-mailed to , and a response on your application should be received between 1 – 3 days.

The CK3 must indicate to the Registrar

• Reason as to why it must be restored

• Intention to lodge all outstanding annual returns and other statutory returns in order to update the information of the entity once restored.

• Letter from the National Treasury and Public Works indicating that they do not object to the restoration of the entity (if immovable property involved)

• Proof of payment of the prescribed restoration fee of R150


For the restoration of a company who has been deregistered due to failure to lodge and pay annual, a written application on a letterhead may be made to the Registrar who may restore the entity.

This application letter must indicate:

• Why annual returns were not lodged

• Reason as to why it must be restored

• Intention to lodge all outstanding annual returns and other statutory returns in order to update the information of the entity once restored.

• Letter from the National Treasury and Public Works indicating that they do not object to the restoration of the entity (if immovable property involved)

• Proof of payment of the prescribed restoration fee of R150

If the business entities application is successful the business status will be amended to reflect Deregistration in Process. It is in this status that a business must then submit the annual returns in order to become compliant.

so do not be shnoop - pay your bucks and protect your assets.

Wednesday, 23 June 2010

Cover your ASSet my freud!

Well if you die!!!!! Then who the hell (pardon the pun) will pay off your home loan and your... and your...
Thats its mate! You are either life insurance covered or you are totally Zuped - not only cause you are dead, but more importantly because all those crying because of you will end up crying because of you!!!

So- do yourself (actually all the others) a favour - CYA today Cover your ASSet now.

A little birdie told me:

The bank who lend you money will insist on you taking life insurance on your life to cover the bond.  Thats not ONLY because they want to make money - which they do, and should, but its really because they know, people like you and I, actually do die!!! MMMMM!

They also know that the life insurance taken - can come from many sources, but without it - we are all ffffffffffffreakin in badland!

So bottomline - buy a home from a great estate agent - then cover your ASSet with Life insurance - its actually about the others - not us!!

Kind of OK  - guys and girls!

PS What about this goal fest and vibe mmmmmmm! Kenako!

New Cape based 6% Home loans - keep your eyes open.

On Tuesday 10th July 2007, we reported:  "Apparently you can get your home loan now @ 6% interest. Be careful people, when a company (Rudco) claims to have financing from a external source and they're not backed by the banks or registered as a registered financial institution, those blinkers should start flapping."

Now their fearless leader Rudi Visage is languishing in jail and what do we see.....

A new Cape-based scheme is requesting that its clients can really score and we will see a new financial miracles by offering them home loans fixed at 6% for the life of the home loan......well!!!

A report in Real estate web today warns everyone to beware and we agree 100% - keep those eyes open as ther is no such thing as a quick buck!

stick to the tried and tested and do your homeloan through a great mortgage orginator

Monday, 14 June 2010

Bless you - Bafana! Property Booms On your back!!

So the excitement and the near win by Bafana -  hoping this frenzy steps into the property market Bless You Carlos Parreira

Knowing that Standard bank, FNB, ABSA and Nedbank all had half days on Friday for this 2010 opening clash, we see a hive of activity today.

More Offers on land - keeping in mind that locals can get 70% loan to value  and foreign non residents can only get a 50% loan. However we want them here and we have a wonderful TRANSFER FREE product for bringing the deposit and monthly mortgage payment into SA from anywhere in the world.  Secondly the forex rates are ALWAYS better than any high street bank offer.

Those buying holiday homes, buy to lets, apartments and homes have exactly the same deal. 50% loan if Non SA citizen and a 100% loan if an SA citizen.

So looking forward to Wednesday when Bafana take on Uruguay and as they say Bien Vienuto! 

Friday, 11 June 2010


Sorry shops closed till tomorrow!!!!


Thursday, 10 June 2010

FNB Bank closes early for world cup opening

Well well well... Why the hell not!!! Get out YOUR VUVUZELA'S! Fnb is.

Early Closure for World Cup Opening 11th June 2010 and 22nd June 2010

FNB Home Loans will be closing at 12h30 on Friday 11th June 2010 in the spirit of the Soccer World Cup. The opening ceremony commences at 13h20 hence the above-mentioned decision. Furthermore, on June 22nd when SA plays France, we will be showcasing our patriotism by closing shop at 14h00.

Please note that the OSCAR service desk, the Contact Centre, and all staff at FNB home Loans will not be available during this period. We trust that you and your staff will enjoy this historic occasion and thank you for your understanding.

Feel it, it is here…
FNB is the Official South African Bank of the 2010 FIFA World Cup™

Tuesday, 8 June 2010

Free Transfer of Money to SA - 2010 is here


So what do people say about our forex and transfer service:

Mr. Cox (GLOBAL) has provided this service to Steiner from his UK office since 1998 with incredible reliability and accuracy while at the same time bringing savings to this company. He is very reliable, well respected in his field and easy to contact. Steiner executes the purchases of millions of pounds through him on an annual basis as he provides visibility to what should be paid for currency and is able to consistently beat the traditional bank rates which have brought positive savings to this company.

I can only say that Mr. Cox and his company are true professionals and I would have no hesitation in recommending his professional services.”

Carl St. Philip
Vice President
Security Alliance.

So for forex transfers, free from transfer fees, excellent rates and the best money transfer service around.
Contact us your forex fundi a global service.  THIS RELATIONSHIP WILL LAST FOREVER!!

2010 is upon us - get you forex service today

Friday, 4 June 2010


Send your money with no transfer to SA and spend this on the 2010 World Cup


Tuesday, 1 June 2010

Debt Counselling the Biggest Challenge!

The NCR report: Request this from us now.

1. Media reports on the world credit industry
2. Effect of the NCA

Where to from here for credit industry.

report by Adv. Jan Augustyn manager Investigations and Enforcement

Sunday, 30 May 2010

Costa Del Sol Property

Costa del Sol Property Market.

My name is Nick Stuart Managing Director of Spanish Hot Properties. With a lot of South African citizens currently looking to buy property in Spain, I have been asked to give an overview of the current market in Southern Spain and especially the area I know most about ie Costa del Sol & Marbella

Costa del Sol property has had its challenges in the last two years and it has been interesting to say the least. Well it sure is a strange world out there with some buyers still living in dream world or reading too much into property portals messages as a catch to get a potential buyer to register but unfortunately the reality out there is the best deals were bought in 2009 and all the remaining best deals will be gone in 2010. More worrying for me is what happens in 2011 when buyers can’t buy for what they could have bought for in 2010.

I have been out with quite a mixture of clients in May and some very good ones in that they knew what they wanted and it was a case of buying the value for money apartment or the perfect apartment that was maybe 10% to 15% which is quite hard to do is this market. Then we have had clients who just have a totally false idea of what they can get for there money with a €1M MarbellaVilla for €450,000 not being good enough for them and the best value out there at present is in Marbella Villas.The reality is that there are deals out there to be done if buyers are realistic about getting good value for money. Interestingly we have closed more deals in Mallorca this year because those particular clients then to know the real value of property in Mallorca.

The best way I can describe the property market in Costa del Sol is a couple of examples. The first being a French gentleman who bought a Nueva Andaluc√≠a Townhouse for €250,000 that had a valuation of over €500,000 but if he arrived today the best I could do would be around €375,000. The other example was a client who could have bought a 3 Bed apartment in Los Naranjos de Marbella and was told on Friday to put his deposit down for which his wife begged him to do so and on Monday he finally got the courage to say yes and put down his deposit. Sadly for him and his relationship with his wife he was two hours late.

So my view about property in Costa del Sol is if you want to take advantage of the market please do it in 2010 but also please be realistic about what your money can buy.

One other major point is if you’re a buyer of International real estate compared to local real estate it is very important that you find an agent you can trust because you need to feel fully protected and most importantly that the agent you trust will find you the best properties at the best price. This differs from the local market where you can spend up to 6 weekends viewing but much more difficult considering the distances between Malaga and Capetown.

If you want to know more about Costa del Sol property contact me at Spanish Hot Properties.

Tuesday, 25 May 2010

Handy Tips for Mortgage Originator Offices

Difference between a building loan and additions/alterations to an existing property.

a. Building Loan
A building loan is a home loan used to finance the construction of a dwelling on vacant land, i.e.

1. The client is purchasing the vacant land and wishes to building a dwelling
2. The client owns the vacant land and wishes to build a dwelling
3. The client wishes to switch vacant land and then apply to build a dwelling

The following additional documents will be required:

- Contract
- Approved plans
- Schedule of finishes
- NHBRC certificates

B. Additions/Alterations to an existing property
This is treated as an ordinary loan and could occur in the following instances:

1. The client is purchasing an existing dwelling but wants to also apply for further funds to undertake additions or alterations. As this would then be more than 100% of the purchase price these application must be capture as a further building loan. There must please be a note confirming that this is a further building loan for building alterations / additions

2. The client is undertaking additions/alterations on his existing property that is bonded to Nedbank. This is treated as a normal further loan with our without registration.

The following additional documents will be required:

- Quotes or the contract
- Approved plans if structural changes
- NHBRC certificates
- Schedule of finishes

If the application is approved these funds will be held on retention and the funds paid out as work progresses after registration of the bond.

Friday, 14 May 2010

SARB no surprise – policy rate unchanged

The Reserve Bank’s decision to keep the repo rate at 6.5%, reflects the view that GDP growth will remain relatively subdued and does not pose an upside risk to the inflation outlook.

Other potential drivers of inflation are also anticipated to remain relatively muted over the medium term (with risks mainly emanating from the global environment), hence for inflation to remain comfortably within the target range in the rest of 2010, 2011 and 2012.

The SARB will continue to assess developments and will adjust the monetary policy stance when necessary.

So FOR now, for all us English speaking citizens of South Africa, the cost of your home loan will remain the same!

WizardMan OUT!

Wednesday, 12 May 2010

Fnb Bank cuts costs and then raises costs

Firstly let me say I think it's the first time I've added an image the right hand side of a BLOG post. Well done WizardMan, I believe that means that I am able to adapt and change unlike the my grade 1 teacher always used to tell me.

Secondly, happy Wednesday to all of you, and thank you for being continued supporters and readers of the SA Property BLOG. We will be undergoing some changes in the weeks to come, upgrade, new templates, so please bare with me if the site looks out of shape every now and then.

What caught my eye this morning was the article on the Business Day, talking about FNB raising it's banking charges by 6%.

This comes as no surprise to me, funny enough although FNB claim to have the lowest banking charges of all banks, they are closing offices around the countries and obviously need to make this money back by increasing the charges of their loyal supports and people who actually bring them business and help them grow. Fnb bank have come under alot of scrutiny in the last couple of weeks, but as a BUSINESS banking client and PERSONAL banking client of FNB for almost 15 years now, I find that having to increase our costs to help support the loss they're going to make by closing all their smaller branches PATHETIC to say the least.

I've been considering moving from FNB for some time now, as soon as the WORLD CUP (which I have 3 tickets for, grim and weep boys), is over, I'll consider a change.

If you want to compare bank accounts - check out

WizardMan OUT!

Tuesday, 4 May 2010

100% bonds for Absa clients

Absa 100% bonds!
Ladies and gentlemen...
Absa home loans are back and they're bad! 100% Bonds!

Absa have officially announced the reintroduction of their 100% home loan offering.

There is a slight catch here. It's only applicable to ABSA cheque and transaction account holders. This means that non ABSA clients will still only have access to 70% LTV loans from ABSA, but it's a move in the right direction.

This move is obviously as a direct result of Standard Banks 100% home loan offering. With Standard Banks home loan offering of 100% for people who went directly to the banks really has given the home loan and bond origination industry a little knock, BUT ABSA have announced that this channel of 100% home loans is open to bond originators as well.

Well, does this mean we'll be seeing ABSA follow Standard Banks suit? OR will Standard Bank bow down to the might of the bond originators in South Africa?

Either which way, well done ABSA and well done to all the bond originators out there who have made this possible...

Looking for a home loan?
Looking for a insurance quote?
Looking for a credit check?

Thursday, 22 April 2010

Happy Earthday!

Only hard work will help us save the planet!
Thanks to the banks, Standard, ABSA, FNB and Nedbank - especially greenbank - Nedbank keep up your involvement.

Wednesday, 21 April 2010

A Tough Market - So how do I raise Private Equity funds????

So I am sure you agree that without doubt, 2009 was the worst year to raise a private equity fund.

Everyone could see that PE fund-raising suffered a significant drop in 2009 in most emerging markets in general.  this was particularly in Middle East and North Africa. In this reagion, MENA, only four funds were successfully closed in 2009, compared to 13 funds in 2008, less than 50%.

Whats important to know is that there are very few Pan african funds and many of the African funds are actually Gulf or Middle east funds that only overlap in Egypt.

So with this in mind and the turbulent financial market and stagnant PE industry, there are key guidelines that a PE fund should follow in order to overcome the tough fundraising environment. . These guidelines represent the ingredients for successful fund-raising, in our opinion:

Outstanding relationship with historical LPs

It is vital for a fund to manage the expectations of its LPs and try to go beyond the already-set objectives. Maintaining excellent relationships with LPs and winning them over have proven to be of utmost importance, especially in unfavorable market conditions. This relationship comprises good quality and regular reporting, regular visits and communication, a continuous and full respect of the funds' guidelines as well as offering them co-investment opportunities. The derived result of this is securing recurrent investment by these LPs.

Good track record in a turbulent market, both in terms of the performance of the existing portfolio companies andexiting from companies

In times of crisis, the ability of the fund management team to monitor the performances of its portfolio companies and assist their top management to adapt to exceptional market conditions is of major importance. This will result in portfolio companies developing greater resistance to the market downturn in turbulent times and improvement in portfolio valuation.

Ensuring seed financing from trusted institutional investors

Ensuring solid seed financing early on in the fundraising process can give a great boost. In difficult times, having international institutions with abundant capital (but strict conditions) aimed at emerging markets early on in the process is crucial. This requires a very strong relations and trust between the two parties built over time. In 2009, almost all of the funds raised in MENA had one or more international institutions.

These institutions provide great added-value in terms of the development of the portfolio companies (such as SME businesses in the region) as well as additional credibility vis-à-vis other LPs. Procuring funds from these institutions is not easy; they require strict adherence to their internal regulations, strong governance schemes and high accountability.

Good relations with shareholders and managers of existing portfolio companies they are the best marketing agents for the fund

Good relationships with shareholders and managers of portfolio companies is essential. They provide good referral base about the fund management team and they could well be potential investors in the fund in addition to being the best marketing agents for the fund management team.

A strong relationship between the GP and the Fund Management Team

A strong relation between the GP and the Fund Management team, along with a complete alignment of interests is essential and gives great comfort for LPs. Clearly, fundraising in difficult times is very tough, thus increased co-ordination between the two parties is crucial.

A strong and serious pipeline of potential deals

Transactions are usually on hold during crisis. It is as difficult to exit in good conditions as it is to invest in good conditions. Thus, having a serious pipeline of potential deals is key to attracting interest and funding from LPs, whose focus on this issue is much more than in normal times.

A strong and dynamic Fund Management Team

Finally, money is worthless with no human capital supporting it. Funds should be handled by a strong, dynamic, motivated team that has shown its ability to deal with changing environments and cope with different situation, as well as entertaining good relationships with the LPs, the fund advisors, and portfolio company managers, etc...

We believe the prospects for 2010 are positive for private equity in Africa and MENA as the markets are showing signs of recovery and higher potential for investing in good opportunities at reasonable valuations.

Fund-raising though, could still be shy in 2010 as there is significant dry powder for investment before the managers return for additional fundraising.

thanks to Euromena Funds for this insight....

Tuesday, 20 April 2010

Cityscape in Abu Dhabi - So is the property bounce back happening

I love keeping abreast of whats happening in the world and especially in the UAE since everyone PANICKED!!

So heres the scoop! From me the desert camels lips...
Thanks to Chris Speller - Group Director for the insight

Cityscape Abu Dhabi has proved its continuing success despite market conditions and the volcanic ash disruption. Today has seen a strong turn out of industry professionals taking the opportunity to discuss project delivery and investment opportunities in the GCC market and abroad with exhibiting firms.

The conference agenda identified residential rental property and retail sectors as having the greatest investment potential. John Bullough, CEO of Aldar Properties indentified future demand coming from a wide spectrum of the Abu Dhabi real estate market and singled out the retail sector as the "unsung opportunity" in the UAE capital.

We are delighted to have welcomed General H.H. Sheikh Mohammed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces to Cityscape Abu Dhabi. In a statement made during an inspection visit he underlined the huge potential Abu Dhabi enjoys, as a result of its growing population, infrastructure development and strategic location. He also expressed satisfaction over the growth of this year's Cityscape Abu Dhabi, with the increase in attendance of international specialists, investors, designers, developers and decision makers being a testimony to the success of the event.

We hope you are able to join your colleagues at Cityscape Abu Dhabi until 21st April. Please note that a dedicated time on the 21st April from 3pm - 8pm will be made EXCLUSIVELY FOR LADIES.

Cityscape is an awesome event and having attended many worldwide it remains a difinitive source of whats happening in the property world - on a grand scale

Friday, 16 April 2010

Retirement Cape Town

Retire In Cape Town - South Africa
Retire in Cape Town. Cape Town is the ideal place to retire to:

Blue oceans, majestic mountains, and mile upon mile of unspoilt beaches, this is what retiring to Cape Town would mean for those thinking of making this their retirement destination.

We work so hard to maintain a fast-paced, frenetic lifestyle, and retiring to the coast seems a far-off dream for so many of us city dwellers, but why should this be the case?

Why not make Cape Town retirement a dream that can come true for either you or you and your partner. Well you may wonder why my little "BLURB" and punt for this majestic "last Bastian of colonialism" on the planet ;-)... Well, I visited a retirement resort in Cape Town that was not only beautiful but so something that looks like it came out of Dubai.

So for more information on this place, make sure that you check out Cape Town's TOP retirement resort - Oasis Retirement Resort!

Friday, 2 April 2010

Happy Easter 2010 / Good Passover 2010

Wishing everyone an enjoyable Easter. Home Owners will be rejoicing and spending a little more this Easter as a result of the rate cut, this is truly welcoming and why should it not be…..the year of miracles……

Property is still an amazing investment and if the Banks could approve a few more bonds then more people could start becoming proud owners of their “biggest” investment. Twenty Ten is surely the year of opportunity in South Africa and property will definitely continue to be a solid performing asset.
Happy Easter!!


Thursday, 1 April 2010


So a Happy Easter everyone

savings from the banks on your home loans comes in different forms!

But I suggest you rely on yourself if you want it to work.  Waiting for Standard bank, ABSA, FNB or Nedbank w'ont work even though they are all offering 10% as prime now.  Sure you will save a few rand this way, but better ways are:

Pay a second bond payment every second month of R 100.00, after your debit order goes off.
  • You will always be paying a R 100.00 plus compounded interest against your home loan for the next 20 years or so.
  • Your score will improve at the bank
  • You can apply at a branch for a better rate - because you are an early payer
If you are Paying a mortgage overseas or from overseas the you must use this forex  service
as you pay NO TRANSFER Fees!!!!!!

Negotiate with your lawyers for a discount on conveyancing fees.

So be your own Easter Bunny!!!  You little devil you!!!

Friday, 26 March 2010

10% rate So whats my savings!

 For every R 100,000.00 home loan you save a minimum of R 33.36 per month or R 8,006.40 over 20 years

If you have a R 500,000.00 mortgage you save a minimum of R 168.79 per month and thats a whopping R 40,509.60 over the 20 years - the price of a second hand car.

Thank you Gill you are on the Marc(us)

Market Update - GBP / ZAR - what do the UK Forex boys say!!!

The South African Reserve Bank cut interest rates yesterday in a move designed to slow down the rapid appreciation of the Rand. Moving rates down to 6.5% the bank expressed concerns that the currency's strength may hinder exports and derail the fragile economic recovery. At 6.5% the Rand remains one of the highest yielding currencies, and has benefitted from strong investor risk appetite and low yields elsewhere (just 0.5% in the UK for example).

Now what do you say!!

Thursday, 25 March 2010

Prime Rate DROPS! Awesome Times!

The South African Reserve Bank this afternoon announced a reduction of 0.50% in the repo rate, which will result in the banks’ prime lending rate reducing to 10.00%.

All the necessary changes to our systems will be effected this evening to ensure that our affordability calculators for home loan applications and pre-qualification applications will reflect the new base rate of 10.00%.

This is GREAT NEWS!!!

Monday, 15 March 2010

FNB Housing Finance (Lower Income)

FNB Housing Finance - Rules for Developments – Pre-Valuation Qualification.

To simplify the process for both developers and bond originators, we’ve changed some of the rules that govern the Pre-Valuation of our housing developments for end-user finance:
  • FNB Home Loans and FNB Housing Finance will consider providing end user finance (top-structure or building loans) for developments with unit prices <= R500 000

  • We will bond a minimum number of 30 units. Developments with less than 30 units will be regarded as retail business and retail rules will apply.
  • Income rule for developments where approval has been granted, will be as follows:

70% of customer deals may not exceed the income rule of R15 000 joint or individual.
30% of customer deals may exceed the income rule of R15 000 joint or individual.

Please note that FNB Housing Finance does NOT entertain investors or legal entities.

Thursday, 11 March 2010

NEDBANK - A GREAT Balancing Act - to get a Home Loan!!!!

Well I am impressed when I hear a  credit manager tell me what is needed to get a home loan - open policy - nice to see Nedbank .

Three pillars of strength needed folks - thats all so YOU WANT A HOME LOAN then -

RISK - You need to make the bank feel that all the risk is not only on their shoulders but also on yours.  So what do you need for this - A deposit reduces the banks risk and adds yours into the pot, so start saving.  Be a smart finance manager, so manage your accounts and VERY VERY important PAY YOUR ACCOUNTS ON TIME or in ADVANCE.  Never pay late.  Nedbank, like most banks have an internally risk rating of you as a client, so contact your Mortgage Broker and get your risk rating in advance, THEN apply for a mortgage only.

SECURITY - Well no one wants to be left hanging and neither do the banks and this is not particular for Nedbank only.  So make sure what you buy is acceptable for the banks to finance.  If a sectional title flat or apartment get the body corporate financials and make sure the body corporate is in the black (positive cash flow), not to many arrears and outstanding levies, and up to date paid insurance.  Then the bank will feel comfortable as well.  If you have just started a job, make sure you supply your job contract together with a payslip.  Its all about feeling secure. 

Ask your broker.

AFFORDABILITY  - If you want to be declined then dont justify what you can afford.  Remember 30% of your income is the MAXIMUM that the banks will allow you to spend on your home loan.  THATS IT!

DO NOT INFLATE YOUR SALARY AND INCOME! OR DEFLATE YOUR EXPENSES! If it is unrealistic the banks will automatically add an additional 25% to your expenses and once declined on affordability it is very difficult to convince credit managers otherwise.  IT IS TO PROTECT YOU afterall!!!!!!  Ask your mortgage advisor to assist you before you have a bash yourself.

Lovely, easy and A GREAT BALANCING ACT!