Property News - March 2011
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.
As our featured property we have included a bargain investment buy in Upper Glenwood. This property is also suitable for any prospective first time home buyer. We have also included a brand new office block development in prime Riverhorse Valley at rental prices well below current market value.
Please also take note of our article from Anthony Whatmore and Associates on the budget speech and the good news concerning changes to the transfer duty rates.
The South African Revenue Service (SARS) has recently released for public comment, a draft interpretation note on rules for the translation of amounts denominated in foreign currencies.
The 2011 Budget was delivered by the Minister of Finance, Pravin Gordhan in Parliament on 23 February 2011. As one of the tax proposals announced by the Minister, transfer duty on property was lowered. This was the first time since the 2006 Budget that the rates at which transfer duty on property will be payable, was adjusted.
We speak to Ben Kodisang, the managing director of Old Mutual Investment Group Property Investments (OMIGPI). I think south Africa has done better than other economies. I’ll say this year is better than last year; the deterioration has stopped, things are stable, and we are starting to see an improvement.
There are certain checks which can indicate whether the seller and his agent are going for a kill or pricing at market-related values. The first should always be the prices recently achieved on similar homes in the area: a reputable agent, with links to good property statistical services, should be able to produce these on demand.
The December 2010 FNB House Price Index completes the picture for last year, a year which proved to be hard work for those in the property industry, although it was significantly better than 2009.
Finance Minister Pravin Gordham announced during the 2011 Budget Speech that it will now be possible to buy a property up to R600 000,00 without paying transfer duties.