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.

MARKUS MAKES MORTGAGE MAGIC! PRIME RATE DROPS.

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.

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

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

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