Property News - May 2009
Welcome to our property investment newsletter, the aim of which is to keep you up to date and informed as to the most recent property trends.
In line with last months predictions, the South African Reserve Bank has now slashed the prime lending rate by an additional 100 basis points, down to 12%, giving much needed support to struggling bond holders.
With the elections now over and Jacob Zuma as president of the ANC, it is widely expected that the South African property market should see increased activity as focus shifts to the countries next major event – the 2010 FIFA Soccer World Cup
It might be an old chestnut but it unfortunately remains true -don't read too much into one month's figures. Nevertheless house price growth of 0.4% in central London's exclusive postcodes reflects a growing trend towards stronger market conditions which has been developing since the turn of the year.
The regulations call for every user or lessor (owner) of an electrical installation to have a valid certificate of compliance for such an installation. Furthermore, if alterations or additions are made to an installation, a compliance certificate must be obtained for the whole installation.
The Reserve Bank’s Monetary Policy Committee (MPC) cut the key monetary policy interest rate – the repo rate – by a further 100 basis points to 8,5%, effective from 4 May 2009. In reaction to this, commercial banks will be lowering their lending rates to the public.
The sad truth for the government is that there are very few significant policy leavers open to influence the housing market. The only one of note - interest rate policy - is now exhausted as a means of kick starting activity.
We asked a number of experts and strategists what their prediction is for investor sentiment following this year’s elections. On how the election results will affect local investor sentiment, John Loos (Property Strategist for FNB) felt that …