Invest in property and build a portfolio

The residential property market is currently in an upward cycle and we are seeing a strong resurgence of investors entering the market.Looking at medium to longer term investment options, there are essentially three key factors to bear in mind: risk, return and growth.
Property has always been perceived as a relatively stable and safe investment class and indeed when one considers the market cycles, it is interesting to note that many nodes in South Africa have achieved the same sales value this year as was the case in peak of the market in 2007.
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Interest rate stays unchanged

Consumers are able to enjoy the current interest rate for a while longer, as Reserve Bank Governor, Gill Marcus, announced today at the third Monetary Policy Committee meeting of the year that the prime interest rate would remain at its current 9 percent says Adrian Goslett, chief executive officer of RE/MAX of Southern Africa. Read more on this post

5 Reasons to buy property now

 

Several current indicators are providing sensible reasons to buy property on the Cape Peninsula right now, says Mike Greeff, chief executive officer of Greeff Properties, an exclusive Affiliate of Christie’s International Real Estate.
Greeff points to five reasons why buying now makes sense: Read more on this post....

 

Now is the time to buy property

According to Tony Clarke, managing director of the Rawson Property Group, the best time to buy property was 20 years ago and now.

Thirdly, he says demand in many house price categories now exceeds supply, ensuring that year-on-year house price growth remains not far below 10 percent and this will also ensure that rentals continue to rise at around 7.5 percent per annum (above the inflation rate).

Clarke points to several reasons such as the fact that the US economy is steadily recovering slowly and this bodes well for South Africa because, like that of almost all other countries in the world, South Africa’s economy is heavily influenced by the US’s economic performance.

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RE/MAX, Dream with Your Eyes Open

2014 Gauteng Homemakers Expo

The 2014 Gauteng Homemakers Expo is presenting bold, bright and individual ideas and products covering all the latest trends on the home front.

Visitors can also expect the Repurpose recycling feature, which will be showcasing an incredible new take on repurposing and up-cycled items.

From 27 February to 2 March 2014, the Coca Cola Dome in Northriding will be a showground of local talent, inspiration from across the globe and practical know-how demonstrations from the experts.

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Interest rates hike and your money

In an unexpected move last week, the Reserve Bank of South Africa (SARB) hiked interest ratesby 50 basis points to 5.5 percent per annum from 5.0 percent as of 30 January, as a result, commercial banks raised their prime lending and variable mortgage rates to 9 percent per annum from the same date.

Lezanne Human, chief executive officer of FNB Savings and Investments, says this increase brings with it an increase in the cost of servicing debt, which means that manySouth Africans will have less disposable income than before.

According to Peter Attard Montalto, Nomura research analyst, they see this hike as the beginning of a 200 to 250 basis points hiking cycle that should be completed by the middle of 2015, in fact, he says we can expect another two hikes this year and most likely in the second half.

The key motivating factor behind the decision to raise the repo rate was the deterioration in the SARB’s assessment of the inflation outlook, explains Investec’s Annabel Bishop.

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