2012 What is in store for you! The True story!

It's December and every analyst and economist and financial man dreads the predictions of what is in store for your for 2012.  The stars and astrologists and gurus etc are in a quandary because they need to re-invent new strategies as we move into a super brand new age!  Watch this space!!

Some may love this opportunity to look into their crystal ball and cast their eye forward to the year ahead. However, most financial whizz kids do not want to look silly when unpredictable world events and occurrences take us off in a completely unexpected direction.  Expect the unexpected.

So,  best way to predict the future was to invent it. Predictions in calm markets are pretty useless, let alone in the kind of markets that we are seeing at the moment. Nevertheless, it is now time for all economists to prostrate ourselves and have people throw rotten fruit and the occasional curse word at them , toy toy in the crowds as we proceed to predict what the next 12 months might have in store for us.

So we base this on a huge assumption - the Eurozone does not fall apart. If it does then all bets are off and you better get used to growing your own veggies. Here goes..

Chinese Investment in SA quadruples

China is the biggest investor in Africa. All across Africa, new tracks are being laid, highways built,ports deepened, commercial contracts signed—all on an unprecedented scale, and led by China, whose appetite for commodities seems insatiable. Do China’s grand designs promise the transformation,at last, of a star-crossed continent? Or merely its exploitation?  SA backs down in all aspects for the big buck and watch them own all the land soon.  Look at Centurion in Gauteng almost completely owned by MNT developments.  Guess who?

The UK economy will not enter a double dip recession

The UK economy, as is the same in most developed nations, is struggling along at the moment with little optimism in the short term. We expect that the two toughest quarters for the economy will be Q4 this year and Q1 2012 as consumer spending slows, business investment remains weak and government spending cuts continue.   It’s year end, so maybe forgive me for coming across as overly negative, but everyone must realise that the next couple of years regardless of whether you live in Kensington, Kuruman, Kuwait City or Kenton-onSea are going to be tough. You don’t get over 10 years of excess without a significant hangover.

EU leaders will sort themselves out in 2012

A great point of debate.  The danger of implosion is high  and being an optimist (sometimes blindingly so) but I think that the great and the good of the European political system will come to their senses in 2012 and a lasting resolution to the continent’s debt problems or the start thereof. So lets dream forward - This will come from a new “fiscal compact” – a centralised government and the eventual transition to a United States of Europe. They will not do this as a result of anything other than another brush with the apocalypse. I’m not sure what the trigger will be (3 bad business confidence numbers from the Germans, France’s credit rating being cut, social unrest in Italy or the fall of another government) but something large will happen that will eventually shake the political class from this malaise. and the Greeks will still avoid taxes.

House and Homes around the World

Less people will be able to afford houses anywhere and the rich will still buy obscure investment properties.  A new term the FAMILY HOME will start, we already see signs of it.  This is where the family from Grandparents to Grandkids will start sharing commune based homes, double stories, one land one family (Large) approach and all will contribute towards it.

Banks and Mortgages

New home loan products will hit the market being structured finance packages that include all aspects of financing, short, medium and long term structures and used as savings vehicles.  A one account for all your, your children, larger family needs - just to restrict the banks risk.  Normal lending will resume from 2013 only, forget about 2012.  Repossessions will increase at least by 10 times.

The Green Effect

If you ever thought COP17 was going to do anything else but give people a great paid for holiday, stimulate the KZN economy and make all the scientist feel important forget it.  They could never and never will stop what they have started - because they do not really care. A sad day for all but the good news is that people like you and I will make huge efforts because we want to.  There is a superhero in each of us.

And for fun, just for you…

The ANC will be rocked by a strategic partnership split.

The Duke and Duchess of Cornwall will announce a royal pregnancy

Petrol Prices will rise to unprecedented heights

Sales of scooters will exceed expectations by far

A new leader emerges in SA.

I would like to wish you all the best for the festive season, and a Happy New Year and c'mon 2012!!

Dubai repossessed auctions

The Dubai Land Department has sold eight foreclosed properties at auction in the first bulk sale of repossessed homes in the emirate.

Location, location, location:

The sale may clear the way for lenders to offload millions of dirhams in repossessed property.

The homes sold between Dh740,000 (US$201,450) and Dh6 million, well above the minimum prices.

"It was good news to see the [foreclosure] process start to work like other jurisdictions," said Jody Glenn Waugh, a partner with Al Tamimi, a law firm.

Hundreds of properties are in the foreclosure process in Dubai but they have been slow to come up for auction, where sales are controlled by the Land Department. In May the department auctioned a repossessed villa in The Springs for Dh1.22m, the first and only sale of a foreclosed home under provisions of a mortgage law approved in 2008.

The sale came more than a year after the British bank Barclays won a court order to repossess the property. "Judgements have been flowing for some time now, but there have been delays getting the property to auction," Mr Waugh said.

Dubai's 2008 Mortgage Law No 14, was designed to speed up the foreclosure process, giving lenders a chance to recoup their losses on defaulted property.

Instead of going through civil court, under the new law lenders could execute a foreclosure through a simple hearing before a judge, after giving the client proper notification.

After the judge's order is issued, the property would be auctioned by the Land Department.

But the system has been slow to develop, industry executives say. In addition to the process for obtaining judgements, there were issues establishing values for property.

Some officials were concerned about flooding the market with low-priced homes at a time when prices are already 50 per cent below peak levels in some places, industry experts say.

The Land Department had previously tried to auction a handful of other properties, but they did not sell.
"Initially reserve prices were just too high and now they are far more realistic and as a result they are attracting buyers," said Richard Paul, the head of valuations for Cluttons.

International mortgages were raised for some of the properties.

The auction may prompt lenders to start more foreclosure proceedings. Banks and mortgage companies have been focusing more on renegotiating deals and using foreclosure as a last resort, industry analysts say.
"Ultimately [the auction] provides banks with more confidence that if the buyer defaults, they can go through the process," Mr Paul said.



Long-term, the auction process may also prod mortgage providers to provide more home loans in Dubai, where lenders are still wary.

"As the [foreclosure] system becomes more streamlined it will give lenders greater comfort to be more aggressive in lending," said Jean-Luc Desbois, the managing director of Home Matters Mortgage Consultants.

The Land Department staged three auctions last week with 19 properties for sale, including homes in non-freehold areas. The bulk of the eight repossessed properties sold were villas in the Al Thnnyah and Wadi Al Safa areas, plus two apartments in Dubai Marina, according to a sale brochure.
All the properties sold for more than the reserve price, with bidding brisk, said people who attended the auction. A villa in the Al Thnnyah neighbourhood listed at Dh3.5m sold for Dh5.6m.

"It was well attended," Mr Desbois said. "The place was full." But auctions are still rare in the UAE, he noted."Investors and buyers are becoming more aware of the ability to purchase property under auction," Mr Desbois said.

"It is a very new concept for the UAE."

The Worlds 10 best Property Investments and Homeloans

Everyone wants to know the top 10 places to buy your proeprty in and with all of these there is a one stop shop to obtain free money transfers and international mortgages.  They are easy and cheap to produce and you rarely have to reveal your methodology.

Property Journalist Graham Norwood has put together an interesting list of the "safest" global property destinations for UK newspaper, the Daily Telegraph.   The criteria used is extensibly the “lowest risk” locations but lifestyle arguments are used to justify many of the selections.

I've added my thoughts.  I'd be interested to hear your views.

1. Canada

Picked for its relatively strong mortgage market, solid legal system and stunning ski resorts.  Difficult to argue with Norwood’s selection especially as Canada has managed to avoid the worst excesses of the neighbouring US.

2. Hong Kong

Chosen due to limited supply and plenty of demand from the Chinese mainland.  

Hong Kong has experienced some of the steepest rises in property prices with values almost doubling since 2005. However, “experts” insist the boom is sustainable.  

There are now over 30,000 real estate agents working on the island, more than three times the number in the whole of the UK.  The experts predicting sustability are agents with a vested interest.  I’m not convinced.

3. Switzerland

Favourable tax treatment, a stable market and great skiing make Switzerland a great bet according to Norwood.

 

Buying a property is also a huge bet on the Swiss Franc which is hugely overvalued according to most measures.

4. Mauritius

Outstanding natural beauty, a strong political situation and a new scheme to encourage foreign investment make Mauritius a good tip.

5. Gibraltar

Spain without the problems is the basic message.

A strong economy in financial services, telecoms and internet gaming combined with very low taxes make Gibraltar an excellent bet.

6. South Africa

Low volatility in the property market, outstanding beauty and cheap prices are the key arguments in favour of South Africa.

7. Barbados 

Chosen for its international prestige, accessibility and a strong legal system.

8 St Lucia

Barbados with lower prices.

9. Kenya

Chosen for its “consistent growth”.  Not sure it meets the strict “low risk” criteria though.

10 The Cayman Islands

A reputation for international finance, limited supply and fantastic lifestyle make the Caymen Islands a solid choice.

Comment

It is very difficult to produce a list like this on a global scale.  All markets are local.  Buying property in established prime locations is the key to preserving capital and minimizing risk.  The key is finding clients with a lot of liquid capital and long time horizons.

The Good News Please The Good News

Well today Dec 1, 2011 is world AIDS day and to mark this occasion it is great to know that the clinics are having great success with reducing HIV positive status for young babies born from HIV positive mothers.  How wonderful.

On this same day, we see stock markets rise on the back of European banks raising their funds and backup funding for bailouts, albeit they may need to raise this from the IMF.  But that's OK.  In fact if you want to see who owes what to whom in the Eurozone click here.

On the SA home loan and mortgage front, we have seen a very slow rise in lending, but there is some very good news.  ABSA, Standard Bank, FNB and Nedbank have all changed their lending criteria for the better.  Well done guys, so if you are risk averse and ready for the plunge get your homeloan today from these guys and make sure you sue a great mortgage originator who will not only get you the best deal but also discounts on attorney fees etc.

So great news in the money transfer arena.  Globalfundi a SA based transfer company has announced the best rates and no administration fees for moving money out of SA and they assist in all the Reserve Bank and exchange control requirements.  Save a whack when you send or receive money to and from SA.  That's great news.

In this last month of the year you may need to raise funds quickly so look at getting some cash in the pocket and then pay it off with your bonus asap.  personal loans are very popular and the bank lend fairly easily as long as your credit report and record stays clean.

For those wanting to get to the top of google use a great SEO company today, there are many.  we see savings made of up to $120,000 a year from the case studies. 

The best news of all - its Christmas time, give something to those in need and we wish everyone we know and do not know a great recharge for 2012.

Signor Budget balance baby in a Nutshell!

So the announcement from Finance Minister Pravin Gordhan hasreleased our new 3 year budget plan and this is what he said in a nutshell

GROWTH - A cut to 3.1% in the economic growth forecast for 2011, rising to 3.4% in 2012, 4.1% in 2013 and 4.3% in 2014.

INFLATION - The headline consumer price index (CPI) is expected to average 5% in 2011 and remain below 6% over the next three years, within government’s 3% to 6% target range.

CURRENT ACCOUNT - The current account deficit is seen widening over the next three years from 3.4% of gross domestic product (GDP) in 2011 to 3.8% next year and 4.2% in 2014 as import growth outpaces export growth.

BUDGET DEFICIT - The treasury plans to trim the budget deficit to 3.3% in the 2014/15 financial year from 5.5% in 2011/12.

DEBT - National government net loan debt is projected to rise from just over R1 trillion at the end of 2011/12 to more than R1.5 trillion by 2014/15.

TAXES - Total government revenue, as a percentage of GDP, is seen falling slightly from an estimated 27.3% in 2011/12 to 27.0% in 2012/13 before reaching 27.7% in 2014/15.

SPENDING - All government expenditure as a percentage of GDP is seen declining gradually over three years, from an estimated 32.9% in 2011/12 to 32.2% in 2012/13 and 31.0% in 2014/15. The budget framework provides for a 5% annual cost of living adjustment for public sector employees.

REVENUE - tax revenue projection for 2011/12 is cut by R13bn to R728bn from R741bn - mainly on VAT receipt revisions - before recovering to R812bn in 2012/13.

TAX - The government says it will consider policy measures to raise tax revenue if the economy fails to recover as predicted.

JOB CREATION - Government will provide R25bn over next six years to boost industrial development zones, assist job creation and support transition to a green economy.

HEALTH - Treasury backs 10 pilots of the proposed national health insurance scheme, with further funding details expected in February 2012.

CLIMATE - South Africa is to strengthen climate change policies and seek global and private sector funding for green interventions over the next three years.

So put your money into property.

My best is the Government spending go guys!

Get a Home loan from??? BMW!!!!!

. buy your first home

. refinance your existing home

 switch

So now with the banks all in their own space then and now so...For many years, BMW Financial Services are a leader in vehicle finance, applying the same thoughts and smartness that goes into the production of every uber BMW to its financial solutions. This extensive experience in vehicle finance has smoothed the road to offering homeloans.

BMW Home Loan offers a range of decent and flexible, competitive options to suit different needs.

They also offer access facilities, further loans, repayment breaks, home owner's insurance and debt consolidation.

• So whats what here!
• Purchasing a new or existing property.
• Switching current Home Loan facility from another institution.
  Registration costs and valuation fees may be covered
• Switching current Home Loan facility from another institution and at the same time registering a higher loan amount.
• Building a new property.
• Purchasing a property off-plan from a developer.
• Additions and improvements to current property.

Just contact your financial man or women and they will assist.

All kinds of finance magic is available for you!

What are the banks offering foreigners and non-residents today!

If you are a non - resident and looking for finance, mortgage or home-loan and buying a property or investing in South Africa, whats sort of financial resources is available to you today! So do you feel like a foreigner?

You will always need to transfer some money from your country to South Africa, either as  deposit or for your monthly mortgage payments, however that can be done free of transfer fees and need not be an expensive project.

So what do the lenders offer and this includes, ABSA, Nedbank, FNB and Standard Bank and even SA Homeloans.

So firstly non-resident clients living and working abroad.  50% maximum and then only from ABSA, Standard Bank and FNB.

Non-resident Clients with SA Work Permits

FNB - 50% loan Max
ABSA - 70% loan Max
Nedbank - 80% loan Max if you are a Nedbank client
Standard Bank - 90% if not a client and 100% if you are a client

However, you will need

1. To have a clear credit record and if you do not know what your status is please get a copy of your credit report today.  This will save you hours of heartbreak.

Ensure your required documents are up to date - so bank statements are less than a week old, clear to read - otherwise the banks will reject them and if you are self employed have at least 2 to 3 years audited and signed financials available.

Of course , use a bond or mortgage originator always - they know who offers what and remain objective.

Home loans with bad debt

Buying a home should be something exciting and something that you look forward to, because of the future memories you are going to create in it. Many people however do not feel this way because of financial problems they might face such as declined loans, bad debts, bankruptcy and so on.

Banks always look deeper into your finances before giving you a loan, reason being they want to make sure that their investment in you and your future is safe. If you are perhaps blacklisted and have bad debt the less likely it is that they will approve your loan, however it isn’t impossible to secure a home loan. Make sure you working on clearing your name from negative reports.

Here’s what you could do, contact a debt councilor they might just actually be able to clear your name. There are a lot of financial institutes that focus on organizing home loans and finance for black listed clients. In my opinion these companies are much more helpful then bank, however there is a catch, the interest rates are offered by these companies are very high you might have to take out extra insurance to cover the bond.

Bad debts remain on your credit report for a long while, we talking 7 years! Which sounds horrible, however I would highly recommend that you get yourself a copy of your credit report. Look at all negative entries that have been there for the past 7 years or more. Contact the bureaus and report this to them.

Write a short but brief letter to the credit report agency and verify any incorrect information about your credit payments. If they approve, entries can be removed, however this might take up to 30-45 days. Be patient though, because those few days are way better than having to wait for 7 or so years

Can I get a Mortgage out of SA?

Very often getting a home loan depends on having a bank account, living in a country or having cash?

Not true.  We spoke with various Mortgage Providers worldwide and in this series of intervieiws learnt some interesting finance truths, broke some myths and have now setup a first of a kind network of friends for you the world wide investor.

Any questions just ask us.

Todays question:

Joseph.."I have a job offer in the UAE but will only start in 2012.  in the meantime If have found an apartment with an option of rent to buy.

What sort of rate can I expect and are there deals available"

Answer from Gulf Lenders Networks to us:

"yes there are always deals available.  We have just announce that you can currently get Fixed Rates from 3.99% for 1 year, now applicable to 80% finance on Villas/ Apartments, but of course terms and conditions apply"  "give us some more detail and we will answer all your questions"

This kind of question opens the doors for all of us to understand what is available and to be able to talk to those that know.

Karma & Dalai Lama - Part 2

Blackberry Network dies in South Africa...

Karma? Or the Dalai Lama?

Karma & The Dalai Lama

Are you a believer in Karma? If so then this weekend just proves that we should not mess with "life".
Let's follow the chain of events here:

1. Dalai Lama's visa get's disapproved by the South African government
2. Bafana Bafana looses the soccer (very clever coaches that we have)
3. Springboks get kicked out of the rugby world cup 2011

What's next?

1. Collapse of the ANC?
2. China doesn't become the force the world they would become

Anyway's just a thought. Use it don't use it :)
Still love South Africa!

Revival of Exciting Boksburg Affordable Housing Project

So finally Windmill Park Estate has been revived.

This awesome development backed by FNB is seeing a new lease on life and we wish them great success.

Already the first phase homes are developed and this Secure Estate has revised pricing with cheaper prices and 100% homeloans available

Well done Boutique Homes and FNB

Also remember you can get finance from ABSA, Standard Bank and Nedbank so if you live in Boksburg or want to move there this is certainly for you on the corner of Barry Marais and Rondebult roads.

East Rand rocks!

30% return on Investments mmmm!!!!

Interested in earning a proven 30% fixed return within 12 months whilst also helping climate change
We can help you send up to SAR 4 million across for an investment - sending money from SA

Emerald Knight is proud to offer investors an exclusive opportunity to purchase carbon credits direct from a prestigious project in the Amazon that will be sold to the offset market during a 12-month period to generate investors a fixed 30% return on investment.

Let me send you a brochure - I think it is worthwhile looking at this company and their offerings - the Mage! Investment highlights Min investment of £4,500 Fixed return of 30% Short-term investment - ROI in         just 12 months Help mitigate climate change Carbon offsetting is a rapidly growing market Voluntary emission reduction project (VER)

W

Credit Decision for Self Employed People

So what do banks look at when offering a home loan - firstly it is your repayment ability especially the financial position and strength of balance sheet, asset base of the business and the individual and of course the equity.

The there are the actual needs or amount required and providing the bank with the purpose of funds for a home, Holiday house etc.

Credit managers want to know everything about the business income focus being on how income is generated by client and the source of the income and sustainability thereof.

Minimum documents needed are - The latest 2 year signed comparative financial statements. - Signed and dated statement of personal assets and liabilities - Latest 3 months personal & business bank statements. - Where latest financial statements are not available, the latest set of management accounts required. - Kredit inform and ITC or Experien credit checks will be done on company and individuals and the business documents are required to confirm all principles & interest holding.

This is the same for all banks with slight variations whether you go to ABSA, Std Bank, FNB or Nedbank.

Somtimes a little Bush Home Gets you the rest your deserve!

Having a real love for the Kruger National park and the bush, I have always invested in Hoedpruit and the Limpopo surroundings - which are close to Orpen gate and Phalaborwa gate - close to my favourite camp Letaba.

So when I hear of investments and deals happening in the area I always believe that these places are meant for someone like me and so here is the latest.

The place - Raptors View Wildlife Estate outside the town of Hoedspruit.  For family people its an awesome place to live because of the fabulous Southern Cross School.  For thos who just want a place in the bush on a wildlife estate and close to the Kruger Park, Raptors View and Raptors Wildlife Escapes are just two of the superb places to invest into.

So for R 1,7 million or nearest offer (Offers are always negotiable) there is a lovely 2 bedroomed 2 bathroomed thatched piece of heaven on 10,000 square metres and traversing of the estate with Giraffe etc available from Remax Wildlife Properties amongst their collection of bush properties.

I would go up there for a weekend a check the place out.  Then you can decide.

September Madness for you International Mortgages

September Madness for you International Mortgages - 10/09/2011
		Country	Initial Rate	Term Of Rate	Type	Loan to value	Typical APR
		France	2.29%	Loan Term	Variable	70%	2.74%
		France	3.80%	10 Years	Fixed	80%	4.23%
		Spain	3.29%	Loan Term	Variable	50%	3.46%
		Spain	3.50%	1 Year	Fixed	70%	3.92%
		Portugal	3.22%	2 Year	Fixed	60%	3.49%
		Portugal	3.85%	Loan Term	Variable	80%	4.16%
		Turkey	4.45%	Loan Term	Variable	70%	4.74%
		Turkey	7.20%	10 Year	Fixed	50%	7.52%
		USA	3.89%	Loan Term	Variable	60%	4.21%
		USA	4.50%	5 Years	Fixed	75%	5.11%