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12 August 2010

FNB Semi-gration patterns
FNB - South Africa
In Conclusion
The Western Cape appears to lead in terms of having the best net inward semi-gration rate. This bodes well for the province's future long term economic growth rate, because we are probably dealing largely with skilled migrants in these figures, which are focused on repeat buyers in the formal residential property market.

While much is often made of peoples' seeking of lifestyle changes as a key driver of semi-gration, the overwhelming driver must surely still be economic opportunities. The Western Cape arguably has a good balance of both, possessing the 2nd largest major metro economy in the country, the fastest economic growth region over the past decade, according to Globalinsight estimates, and with the Cape Metro possessing about as good a lifestyle as a major South African city could provide.

In turn, the Western Cape's seemingly superior ability to attract skilled SA migrants may support its ability to grow its economy at superior rates in future.
FNB Semi-gration patterns

Absa House Price Indices - July 2010
Absa - South Africa
Outlook
With consumer price inflation set to bottom in the near term, interest rates are forecast to remain at current levels towards the end of the year and into the first half of 2011, providing no further stimulus to the residential property market. However, inflation trends and related factors, as well as developments in and prospects for the global and local economy are expected to be thoroughly analysed and debated by the South African Reserve Bank's Monetary Policy Committee when meeting again in September and November to decide on the way forward for domestic interest rates.

Year-on-year house price growth is forecast to slow down further in the months towards year-end, largely driven by the base effect of a recovery in property prices in the second half of 2009. Real house price growth in the rest of the year will be determined by nominal price trends as well as the course of consumer price inflation.
Absa House Price Indices - July 2010

The pitfalls of renting
RealEstate Web - South Africa

A national survey shows that 27% of top end tenants pay late and 9% not at all.

Property managing agents are these days increasingly asked about the prospects in the buy-to-rent residential property market but before taking any step of this kind the property investor should take notice of the possible pitfalls.

Right now sectional title is the fastest growing sector in South African property - with most of the expansion focused on the lower end of the property market. The cost and time of commuting coupled to the densification of land use policies of most of the big metro councils will increase the demand for strategically sited sectional title units reasonably close to work areas - and all the indications are that the demand at the lower end of the market is and will continue to be the strongest.

In addition, the prudent restrictions of the National Credit Act will ensure that for the foreseeable future more people will be renting than buying, thereby again strengthening the landlord's position in the rental market.
RealEstate Web

Your land can land in the wrong hands
The Star - Malaysia
Crime syndicates are able to cheat people of their land through fraud and forgery because of weaknesses in the conveyancing process. It's time to clean it up.

LANDOWNERS beware - especially those whose lands are vacant and idle, who are based overseas or are elderly.

Your title to that property can easily be stolen because any one of the key players in the conveyancing process - the Land Office, legal profession or the lending bank - may lack integrity or don't observe the proper verification procedures.

According to police statistics on fraud and forgery cases involving land since 2005, there were 34 cases in 2005, 66 in 2006, 74 in 2007, 113 in 2008, 111 in 2009 and 37 in the first quarter of this year alone.
The Star

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