FNB - year-on-year price change edges towards deflation
RodneyHayter.com - South Africa
The September FNB House Price Index released today showed only slight year-on-year house price inflation to the value of 1,8%, compared to a revised 2.9% in the previous month, edging closer to the seemingly inevitable spectre of deflation.
On a month-on-month basis, price deflation has been a reality since early in the year, and a further -0,1% (-1,14% annualised) was recorded in September.
In real terms, the recently low house price inflation rate, and contrasting high consumer price inflation rate, translates into a year-on-year real house price deflation rate of -9.5%.
However, John Loos, property strategist at FNB , says this does not yet imply that there is a conclusive improvement in affordability for everyone.
Fiddling with figures: CGT and properties held in a trust
Realestateweb.co.za - South Africa
Beware of buying properties for less than their market value. Here's the financial fall-out if Sars catches you - expert
Question: "We are in the process of buying a family property out of a trust. I would like to know if the South African Revenue Service can claim donations tax from us if the family agreed that we can buy the property for less than the actual worth of the property. We got consent from all family members to buy the property for R300 000. The estate agent valued the property at between R400 000 and R700 000"
Wouter Scholtz, director of audit and advisory firm Mazars Moores Rowland, responds:
Long-term outlook positive for property
Business Report - South Africa
Johannesburg - The residential property market is expected to improve once disposable income and interest rates improve in the country, Standard Bank said on Thursday.
Releasing its residential property gauge, Standard Bank said its median house price index recorded a rise of 3.6 percent in September following a 1.8 percent decline in August.