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| BRICS Brings Huge Opportunities |
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It happened without anybody noticing because the world was watching China then India, grow in leaps and bounds. Along came BRIC (Brazil, Russia, India and China), now South Africa has joined BRIC, turning it into BRICS.
Now South Africa has joined BRIC, turning it into BRICS, adding enormous opportunities for intra-BRICS and Africa trade and investment. Africa’s growth is now getting its due — as it should — as the continent’s GDP has doubled in a decade. Proof of this growth is the fact that trade between Africa and BRIC, which has been double the global average, is on the increase and all pundits predict an even greater growth trajectory. South Africa is by far the biggest economy on the continent with sophisticated financial markets, a soundly-regulated and well-regarded banking system, clear intellectual property adherence rules, a stable and democratic government — and above all, is the biggest investor on the continent. South Africa recognises that its destiny is inextricably linked to that of the continent and that regional growth is fundamental to the continent’s massive potential.
At the same time, South Africa is at the forefront of Africa’s regional integration efforts by initiating, for example, continental north-south rail and road links, championing infrastructure investment, skills development and a single free-trade zone.
| International Marketing Council of South Africa, 30-04-2011 |
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| Eastern Cape Property Market Improves |
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The Eastern Cape residential property market appears to have battled its way back from a severe slump that coincided with the severe economic recession, according to the latest FNB property barometer.
The year-on-year rate of increase in the average house price was 8.6% in the first quarter of 2011, which was a further increase on the 7.1% of the previous quarter, and this represented the fourth consecutive quarter of positive year-on-year growth in the index.
"Our FNB valuers' panel still, however, suggests that there is some work to be done in restoring the market balance to a healthy level - rating demand is still weak relative to the way it rates supply.
"In effect, the results of our FNB estate agent survey for the Nelson Mandela Bay Metro support this view. The agents surveyed still suggest a somewhat unrealistically priced market in the province's largest city region, with 87% of sellers still having to drop their asking price in order to sell, as at the first quarter of 2011 - using a two-quarter moving average - while the average time of a home on the market was 12.1 weeks, where an average of nearer to two months would arguably suggest a healthy market," said FNB property strategist John Loos.
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| Fewer Apartments Stand Empty |
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Buy-to-let property investors finally have something to cheer about, with latest data pointing to an improved outlook for residential rental growth.
The average flat/apartment vacancy rate across South Africahas dropped from a peak of around 6% in fourth quarter 2009 to the current 4%.
Figures from property economists Rode & Associates show that the number of empty rental units has shrunk noticeably in recent months. The average flat vacancy rate across South Africa has dropped from a peak of around 6% in fourth quarter 2009 to the current 4%.
John Lottering, editor of the quarterly Rode Report, says it appears that the increased take-up of rental properties in 2010 is already placing upward pressure on rentals. What’s more, says Lottering, in some regions year-on-year growth in fourth quarter 2010 has accelerated to rates that are at least on a par with consumer inflation of 3% to 4%. From mid-2009 to mid-2010 most regions delivered zero growth in rentals.
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| South African Property Industry Hails Inclusive 2011 Budget |
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Members of the property industry have given the national Budget announced this week an overall thumb's up, although there were a few items of concern.
Speaking in response to the Finance Minister's Budget speech on Wednesday, Young Carr, CEO of Aida National Franchises, said: "From a macro-economic perspective the Budget was very encouraging, and underlined again how well SA has done in comparison to many other, more developed counties in dealing with the fallout from the global economic crash.
"With the definict down and overall tax revenue up, the Finance Minister seems to have found at least some funds for just about everyone - including the often forgotten pensioners who have been struggling as a result of the lower interest rates that are regarded as a positive by just about everyone else.
"Looking at the specifics, we were especially pleased with the R122bn allocation for the provision and improvement of housing, water and community amenities this year, and the annoucement that government is to spend more than R21bn over the nest three years upgrading no less than 400,000 homes in informal settlements.
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| Growthpoint, PIC Buy Victoria and Alfred Waterfront for R10 Billion |
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Despite initially denying it, Cape Town's Victoria and Alfred Waterfront has been sold to a consortium of investors for R10bn.
Investec Bank Limited ("Investec") is authorised to announce that on 10
February 2011, Growthpoint together with the Public Investment Corporation
Limited ("PIC") representing the Government Employees Pension Fund
(collectively the "Purchasers") entered into an agreement with inter alia,
Strawinsky Properties BV and Istithmar South Africa FZE ("Sellers") to
acquire, in equal proportions, 100% of the Sellers` interests in Lexshell
44 General Trading (Proprietary) Limited ("Lexshell"), which is inter alia
the owner of the V&A Waterfront, with provision for the acquisition of the
remaining ordinary shares held by Lexshell`s empowerment shareholders (BEE
shareholders) (the "Transaction"). On successful completion of the
Transaction, the Purchasers intend to own 100% of Lexshell.
| Growthpoint Properties Limited, 14-02-2011 |
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| State of the Nation Address By His Excellency Jacob Zuma |
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Though the topic of job creation took up a large proportion of speech, the president also highlighted education, crime, tourism, energy and service delivery.
This is in keeping with earlier calls by Zuma to implement the New Growth Path as presented by economic development minister Ebrahim Patel in November 2010.
Critics of the plan have been vocal in pointing out the lack of detail in terms of how these ambitious targets are to be met, though business associations have publically applauded the plan, it is apparent that questions remain around implementation.
Analysts will be keeping an eye out for these details which Zuma indicated would be announced in the respective departments’ budget vote speeches.
Though the topic of job creation took up a large proportion of speech, the president also highlighted education, crime, tourism, energy and service delivery.
Western Cape Social Development MEC Patricia de Lille described the speech as a “review”, arguing that it “was the old wish list”. “How are we going to implement all of these things that [Zuma] would so much like to see done?” she asked.
DA Leader Helen Zille agreed that the question of implementation remained unanswered. Pieter Mulder of the Freedom Front Plus complained about the mixed messages presented in prioritizing employment and simultaneously promising to review labour relation laws, as well as the lack of incentives for the private sector and agriculture to create jobs.
| South African Government Press Release, 12-02-2011 |
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| Pezula Estate Ranked in World’s Top 20 Best Golf Resorts |
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Pezula Estate has been ranked No. 7 among the world’s top 20 best golf resorts by the British website Primelocation, the only golf resort in Africa to be nominated.
To decide which are “the best golf resorts in the world both for location, quality of property and brilliant but challenging golf,” Primelocation asked veteran UK golfer, writer and TV producer Peter Swain, who has played at many of the best golf resorts, to judge, collate and reveal the best. This is what Swain had to say about Pezula: “Covering 254 hectares on the Knysna cliff-tops in the Western Cape, this 6,992-yard Championship course looks out over both the Knysna Lagoon and the Indian Ocean. Pezula Championship Golf Course, designed by Ronald Fream, is a regular Sunshine Tour venue on which the new Open champion, Louis Oostuizen, who hails from just down the road at Mossel Bay, honed his game.
| Pezula Resort Hotel and Spa Press Release, 31-01-2011 |
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| 2010 Property Market as a Whole Better Than 2009 |
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Seasonal factors are believed to have played a significant role in this, but there also exists the possibility that renewed interest rate reduction in September had a slight positive impact.
The agents surveyed continue to point to apparent unrealistic pricing in the market. Estimated average time of properties on the market was still a lengthy 15 weeks and 6 days in the 4th quarter, which was slightly worse than the previous quarter's 15 weeks and 4 days. While this is well-lower than a stage of 2008 where the estimate neared 22 weeks, it would still appear far too long for an average, given that in the healthier market days of 2005/6 the average time was generally below 2 months. Furthermore, the percentage of sellers having to drop their asking price remained almost unchanged from the previous quarter's 81%, declining slightly to 80%, and the average price drop for that majority having to drop their prices was estimated at -11%.
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| Buying To Let - Property As An Investment |
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Buying a property as an investment asset currently offers one of the best possible returns on investment. Economists also predict that this sector will continue top grow for the rest of the year at an average rate of 20-25 percent.
1. Assess the market
Determine what rental you can expect by speaking to a professional letting agent in the area in which you want to buy. Look at newspaper and property magazines to compare rental prices for similar houses.
2. Location, Location, Location
Buy in a popular area with good access to main roads, shopping centres, schools and medical facilities. Buying near a university will allow you to easily target students while buying near a leading school will generate interest from families.
3. Financing
The advantage of investing in property is that you can often raise a bond without having to invest your own capital, although the banks might ask for some sort of deposit from you. The expected rental income can be included in your income for the loan calculation.
The rental received from your tenants should be adequate to cover your monthly bond. While the rental income will be liable for income tax, any loan interest may be offset against rental income for tax purposes. Expenses related to the property may also be tax deductible.
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| Combining Unique Wildlife Estate with Jeffreys Bay |
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This dream was born on Friday, 12 September 2008, at a “Bosberaad” which was led by Jane Stevenson. At this bosberaad a very important new concept surfaced, namely that the buyer of today have modern residential needs.
These needs are: Security, freedom and openness, but in a combination with all the amenities such as medical facilities, shopping centers, recreation facilities, etc.
By combining this unique wildlife estate with Jeffreys Bay’s facilities and a world famous beaches, Savuti Estate has brought together the best of two worlds and succeeded in providing in all of these needs.
Where does the name “Savuti” originate? We were looking for a name like Serengeti which catches the imagination, which awakens that dream in you, which is easy on the tongue and says it all. Savuti is a river in northern Botswana and the Savuti lions are well known and documented.
| Savuti Estate Press Release, 16-11-2010 |
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