South Africa’s house market is 10th best in the world

It has been reported that South Africa is still the 10^th best performing property market in the world. Last year, when South Africa was the sixth biggest property rising market in the world, it was at a rise of 13,6%. This year, we are placed, number 10 in the world with a property market rise of 8,8%.

However, South Africa’s is not the only country which has shown a decrease in inflation rising. Apparently some of the countries also mentioned here include the likes of the UK, Canada, New Zealand, and Norway.

Global house price inflation came to an average 6,1% in first quarter 2008, down from 9,8% last year.

Fractional Ownership - A Rapidly Growing Industry In South Africa

Fractional Ownership - currently the hottest buzz word on everyone’s lips. This new asset sharing concept has recently caught the attention of a great amount of affluent holiday makers in South Africa. Holiday makers who have always wanted to invest in leisure property now have the perfect opportunity, not only is it a smart financial move but the management and maintenance is no longer a hassle.

The overall growth in leisure property has been so substantial over the past 5 years that it has virtually made it impossible for the average household to own property on a holiday resort. Fractional Ownership enables the average household to own a share of their dream holiday home at a fraction of the price. Everyone wants to enjoy the benefit of property ownership,especially in this favourable period of capital growth in the property market. Since June 2007 over 40 intermediaries have applied for membership with SAAFI (The South African Association of Fractional Ownership), a regulatory body that was established with the objective to protect the interests of the general public. This is not supprising when taking into account that a foreign family can now enjoy property ownership in South Africa and utilise their investment 4 weeks per year, who knows how many foreigners will find this joint ownership model attractive upon their visit to South Africa during the 2010 FIFA World Cup Tournament. Fractional Ownership is currently the world’s fastest growing property sector and has grown by more than 150%,year on year for the last 3 years in the U.S.A alone

The website http://www.fractionalownership.co.za reports that it has experienced an increase of 200% in traffic on the portal since last year. We are looking forward to see this new real estate ownership structure establish itself on the shores of South Africa.

Article Source: http://EzineArticles.com/?expert=Werner_Geyser

How to get into the property market?

You want to invest in property and also be able to say that you own your own house. But lately this is looking very difficult (almost impossible), specially for the younger generation. So how can we get into the property market with interest rates as high as it is now?

The best way to go at the moment is to take a look at the houses that has been in the market for a few weeks. Usually after about 5 weeks, these home owners starts dropping their price, just to get it sold. It is human to get impatient and make irrational decisions, so keep an eye out for these specials!

Black residential buying power up

The growing buying power of South Africa’s black middle class is having a dramatic effect on the shaping of South Africa’s economy and society.

This effect is not just being felt in the retail sector, vehicle sales and financial services, but especially in the property sector, where statistics from the FNB Property Barometer show that in some markets 49% of buyers of residential property are non-white. [read the whole story]

SA to get first ‘land bank’

A local bank have backed a property dealmaker by taking a stake in what is likely to become South Africa’s first “land bank”.

Its aim is to maintain a reliable supply pipeline of land for around R10bn in property developments.

Land Equity Investments Ltd will probably list once its land assets reach R1bn. This implies an initial development pipeline of about R8bn. The company will also do an empowerment deal at that stage with a strategic partner. Read the full story at Property24

2008 Budget speech - more money for land reforming

Yesterday 20 February, Finance minister, Trevor Manual, gave his budget speech on South Africa. In the review, it stated that human and financial resources are now being shifted to speed up the pace of land distribution.

The review states that R2,6 billion over and above last year’s Medium Term Expenditure framework, is to be spending on reform and agriculture support programs. Outstanding land restitution claims will get an additional R1bn over the three-year medium term expenditure period. Agriculture extension services receive an additional R500 million over the medium term, through the provinces, and 5 000 new extension officers are to be recruited to provide agriculture advice and production assistance. [Read full story...]

How will the public invest when property prices keep rising?

Over the last 10 years South Africa has certainly achieved a lot like democracy and political freedom but it seems like we are facing big problems at the same time.

Things like load shedding and the interest rates that rises to astronomical heights are one of them at it looks like things are only getting worse. Now, the senior officer at ABSA has announced that house prices will rise to 60% in the next five years and the time for investing is now. Read the whole story here

Now, thinking in terms of investing in property and the problem surrounding it. In the last two years we have had the National Credit Act (NCA), and the ABSA basis points that have risen with 5 whole points. This almost makes it impossible to get a home loan not even to mention the new comers and the younger generation.

The government should step up and come up with a solution to our ever growing real estate prices.