Latest South African consumer credit data indicate that the home ownership situation could improve
Rawson - South Africa
Estate agency principals, says Bill Rawson, Chairman of the Rawson Property Group, tend to consult different authorities when looking ahead and mapping out the future of their organisations. Most, however, agree that among the more important data they consult will always be the South African consumers’ credit status.
In recent years Rawson has been one of those who has regularly called for South African consumers to adopt more responsible, less instant gratification spending habits. Now, he says, the latest July FNB Consumer Banking Barometer has come up with evidence that the South African consumer is adopting a less impetuous, more long term and considered approach to his finances – and this , says Rawson, augers well for the South African housing sector.
The FNB report, says Rawson, shows that South African household debt in relation to income (which many analysts think is the most significant of all consumer data regarding housing) has improved by some 10% recently. Having peaked at 88,8% in early 2008 (an all time high), it is now down to 78,4%.
No notice required at end of fixed lease
IolProperty - South Africa
What notice period is required to end a fixed period lease?
A lease for two years that starts on the first day of January terminates on December 31 in the second year. Unless there is a provision in the lease for a notice of termination, the lease automatically comes to an end on the last day of December.
The landlord is not obliged to give a notice to remind the tenant or a notice to end the lease.
What would be the situation if the landlord did issue a notice, informing the tenant that the lease ends on the last day of December but the tenant can move out by the 5th of January? This notice is dated December 5, the month the lease expires.
Does it mean that the notice is an unfair practice because the landlord failed to give a calendar month's notice? Bear in mind that we are referring to a fixed lease that does not require a notice of termination.
FNB - South Africa
Some buying considerations in tough times
In tougher economic times, aspirant home buyers need to consider the future costs that will come with the type of home they buy, as well as the implication surrounding the fact that home values can decline.
Economic cycles are a fact of life, and households needs to adapt as these cycles unfold.
One of the big myths surrounding the residential property market is that house prices always go up. This is absolutely not true. Granted, in a country such as South Africa, which has a significant general inflation rate with regard to consumer prices and wages, house prices over time should go up more than they go down.
Indeed, if one views the Absa National House Price Index for its almost 50-year history, there has only been an annual average nominal house price decline in 3 of the last 48 years.
National “corrections” in real terms, where prices still inflate but at a lower rate than consumer price inflation, are more common occurrences.