Web Bytes - 602

Residential Yields review
TPN-FNB - South Africa
Is it time to move towards a more attractive buy-to-let opportunity as yields start to rise?
In the 2nd Quarter of 2016, the TPN-FNB National Average Gross Residential Yield rose slightly for the 1st time since the 1st quarter of 2014. The national average yield rose slightly to 8.62% in the 2nd quarter of 2016, from a revised 1st quarter level of 8.59%.

Although it is early days, a rise in Residential Yields, after a prior few quarters of slowing rate of decline, appears to be reflective of a slowing Home Buying Market, which has translated into slowing house price growth. At the same time, Stats SA estimates of rental inflation show some recent mild acceleration. The combination should be expected to translate at some stage into rising yields, and it is possible that such a trend is in its early stages.
TPN-FNB Residential Yields

Tips for first time home buyers
Jawitz - South Africa
Buying your first home is exciting, but there are a few things you should know says Anton Scheepers, franchise principal for Jawitz Properties Silver Lakes:

1. Do your homework before you start house-hunting! Decide where you want to live and whether the area suits your budget. Think about security, the proximity to shopping centres, public transport, work and schools. Feel free to ask the owner and the estate agent about the property and the suburb as they should be able to help you with all your area specific questions.
2. Make sure your savings cover the deposit as well as the transfer and bond registration costs of the property, including all fees charged by the conveyancer and attorneys. If in doubt, ask the home loan consultant at the bank or a bond originator to calculate how much you will be granted, to ascertain whether you can afford the monthly installments.

Tips for first time home buyers

Sectional title levies will rise
Trafalgar - South Africa
Most owners in Sectional Title schemes can expect their levy payments to increase now that the Sectional Titles Schemes Management (STSM) Act has come into operation.

The reason, says Andrew Schaefer of Trafalgar, is that the new legislation introduces a compulsory requirement for all schemes to establish and/ or maintain a substantial reserve fund to cover the future cost of any major maintenance projects or emergency repairs to common property.

"The aim of this provision is to eliminate the need in due course for schemes to introduce onerous special levies to cover unexpected expenses, but in the short term it is likely to place an additional burden on most sectional title owners."
Sectional title levies will rise

Print this article