October 6th, 2024 | Business, Economics, Practice

Gentle Reader

SWMBO and I had embarked on a short tour of Portugal. Our food tour revealed that, what we locally regard as Portuguese food, is mainly Mozambican inspired.

Portugal will give you residential rights and citizenship if you invest in property in that country, which may be had at some €53000. The owner of a vacation site in the Algarve, offered me his vacation rental establishment, which is really well appointed, for only €1,950,000. If your pocket is heavy and you want to move, certainly a snip, as it generates a healthy cash flow! Ask me for details – and no, I’m not an estate agent!

In this edition of Snippets, I abandoned economic news other than such as would directly affect property practice. When I started these newsletters some 25 years ago, the understanding of economic news by legal practitioners was thin, probably owing to such news not being readily available. The Internet has changed all that.

Regards

Daan

 

Practice

News

Hard News

 

Conveyancing

 

Property

                Trends

  • Our GNU has targeted a growth rate of 3.3% by the end of next year. This is substantially more than the rate most economists and, the IMF, predicts but, bluntly, it is the first time in many years that there seems to be some application by government towards economic growth.
  • Residential property prices are rebounding, having reached a national average of 4.7% in July, up from 2.4% a year ago. Despite this, it is still a buyers’ market in the sense that house prices become steadily cheaper at below-inflation price rises.
  • The office property market is improving, partly owing to a shortage of stock. Redefine says that the office vacancy rate has decreased steadily.
  • The retail property market has seen an increase in positive sentiment, compared to the second quarter of this year.
  • Residential rentals are up slightly, according to TPN, but that entity says that vacancy rates have increased across all provinces and rental bands. Having said that, the first of this year reflected a below average (since 2016) annual national residential vacancy rate, coming in at 5.57%, down from 17.21% in the previous year.
  • Investors in shopping centres should consider looking at the CLUR Shopping Centre Index which gives interesting graphs on trading densities and headline performances of shopping centres.
  • The intended release by Transnet of non-core properties, might well impact on our property market. Apparently, this includes some 5300 houses and about 3000 other properties!
  • Finally, real estate stocks were up some 24%, on the beginning of the year figures, last month. With the expected interest rate cuts expectations further growth is probable.

 

News

  • The new SAPOA head says that his mission, before his term expires, is to promote South Africa as a property investment destination. Let’s hope this materialises.
  • A Moneyweb note in September, held that the PPRA has quietly ditched its plan requiring BEE for fidelity fund certificates. Great!
  • Beware of fraudsters presenting themselves as legitimate estate agents, in order to secure deposits for on -line rental properties. Apparently, such contacts are primarily by way of email and messaging.
  • The Ekurhuleni water crisis sparked my interest in services and the maintenance of infrastructure by municipal authorities.
    • Our Minister had said that our municipalities lose 40 % and 80% of water supplied, owing to the non-maintenance of infrastructure. Interestingly, prior to cadre deployment, losses were about half this.
    • Simultaneously, reports hold that some 40% of electricity meters, in major centres, malfunction.

The result of all this is that municipal services are not what they used to be, and a very real possibility exists of our running out of, especially, water. We have yet to see the promise of heads rolling, for non-performance by any municipality, of its duty to maintain infrastructure.

 

 Legal stuff

 

Lighten up

Q: How many estate agents does it take to change a lightbulb?

A: None! “The lightbulb is in excellent working order and comprised of a beautiful retro teardrop illuminator, offering original glass and metal features and located very centrally in the middle of the room. Local amenities abound and the property is serviced by a newly refurbished power cord connecting it to the ceiling. Nearby is a tasteful power switch to enable the purchaser to switch it on and off. Leasehold with share of power supply with lovingly improved wattage by the current owners. Would suit a professional couple or family looking for more light.”

 

I’m getting married to a top-producing estate agent tomorrow. He’s so dreamy. Check out the diamond engagement ring he sold me.”

 

Two friends were walking through a cemetery when they came across a headstone that read:

this “Here lies Walter Smith, an estate agent and an honest man”

“Blimey,” said one friend to the other: “They buried two people in here,”

 

 

 

Written by: Daan Steenkamp
https://www.daansteenkampattorneys.co.za/ 


Still looking for your dream home, or wanting to sell? Feel free to give one of our developers a call today.

Tom Eastwick – The Gates, Hilton and Garlington, Hilton | 072 297 2699 | tom@devdirect.co.za
Janet Channing – Waterford Residential Estate, Howick | 082 570 5834 | janet@devdirect.co.za

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