What's on in Jo'burg

The school holidays start this week and because of the difficult economic environment many people are going to stay in Jo'burg. There are so many things happening around us so even though you can't afford to go away you can still have a lot of fun without spending a fortune.

Art Exhibition and Sale

Presented by The Visible Edge Art Co & RE/MAX 2000. Everyone welcome! Art of all kinds will be sold in all price range. Friday 5 December from 6pm to 8pm. Art will stay on display daily from 11am to 3pm until Sunday 7 December.

When: 5 December
Where: 9 Bantjes Avenue, Discovery, Roodepoort
Contact info 082 785 3305 caroline.dewet@gmail.com

Walter Sisulu Botanical Garden

Bird Identification Walk - 6 December

By Ella Janse Van Vuuren. Over 200 bird species have been recorded at the Walter Sisulu National Botanical Garden. Bring binoculars.
Booking essential as numbers are limited.
Meet at the entrance of the main entrance of the Walter Sisulu National Botanical Garden at 06h00.

Christmas Carols by Candlelight

Sat & Sun 6 &7 Dec 2008
17h00 Light entertainment associated with the festive season
18h00 The Duo: Riaan Swanepoel and Sylvia Blangwe. With Children's Choir to lead young members of the audience into songs for Christmas
19h00 Arrival of Santa Claus. Distribution of sweets throughout the audience, especially for the children
19h30 Welsh Male Voice Choir of SA. Carols by Candlelight and popular Choral music from around the world
Admission fees :Adult R35, Senior Citizens R25
Students R20, Scholars R10, Under Six – Free
(No booking required – pay at the entrance)
For more information contact 011 958 1750 or email sisulugarden@sanbi.org

Open Day At Roodepoort Museum

Come see a new temporary exhibtion: "Kappies 1780-1938" The kappie is the trademark of traditional Afrikaner costume, but where did it all begin? This exhibition consists of fine examples, dating as far back as 1780, of kappies made using a needlework technique commonly known as whitework. The exhibition investigates the origin of this needlework technique as well as the social context in which it was produced. The cultural significance and symbolism that are assigned to kappies are also explored.

When: 21 September 2008 - 31 January 2009
Where: Roodepoort Museum, Civic Centre, Christiaan de Wet road, Florida Park
Contact info 011 761 0228 carolinag@joburg.org.za
The Museum is open by appointment only - I'm not sure what this means but will go to see them this week

Thami Mnyele And Medu Art Ensemble Retrospective Exhibition

The exhibition honours the memory of the late Thami Mnyele, a South African resistance artist who died at the hands of apartheid security forces in the 1980s. A talented artist from Alexandra, he was committed to bringing about social change in South Africa through art. This led him to exile in Botswana, where he became a cultural worker with the Medu Art Ensemble, co-founded by his friend Mongane Wally Serote. Medu had units dedicated to the anti-apartheid struggle, dealing with music, theatre, visual arts, graphics and cinema, and counted among its ranks Deputy President Baleka Mbete as well as musicians Hugh Masekela and Jonas Gwangwa.

Where: Johannesburg Art Gallery, Klein Street, Joubert
Date: 30 November 2008 – 30 March 2009
Time: 10am – 5pm
Booking fees: Free
Contact Info: 011725 3130/ KhweziG@joburg.org.za

When Life Happens: Art Exhibition At Museum Africa

The When Life Happens festival aims to raise awareness about HIV and Aids through different programmes including visual art, performance poetry, music, literature and contemporary dance. The festival kicks off at Museum Africa with an art exhibition, which features specially commissioned works by a group of emerging artists. Participating artists include Phumzile Buthelezi, Happy Dlame, Michel Mhlungu, Yvonne Harvey, Vusi Mfupi, Themba Mofekeng, and Mandla Manana.

• The opening is on Wednesday 3 December and kicks off with the When Life Happens poster competition.
• From 3 to 14 December is the visual arts exhibition with artists like Dinkies Sithole, Happy Dlame and Mandla Manana.
• 3 to 7 December - A public art installation on Mary Fitzgerald Square.
• 4 to 14 December - The creation of a new public art wall mural on Miriam Makeba Street.
• 4 December – Performance poetry and music event at the Bassline, featuring DJ Kenzhero, Fifi and many others.
• 5 and 6 December – The Dance Factory presents works, collaborations and performances by Tracey Human, Greg Maqoma and others.
• 6 December – Xarra Books presents an open forum discussion lead by Dr Gareth Edwards.

Where: Museum Africa, 121 Bree Street, Newtown
Date: 3 – 14 December 2008
Time: 10am – 5pm
Booking fees: Free but advance booking is essential

Contact Info: 011 833 5624 / http://www.newtown.co.za

Business Opportunity

Being your own boss is a fantastic incentive to work hard, but you need pointers on making a success of your business. Business Opportunity could be the answer. The course looks at starting a business marketing herbal products; it includes recruiting others to join your business.

Where: 778 Richard's Drive, Halfway House, Midrand
Time: 9am
Booking fee: Free
Contact Info: 0824784842 / Thembekile@housing.gov.za

The Von Memertys - A Celebration

This acclaimed dance is a must-see for the whole family this holiday season. It features one of South Africa’s best-loved entertainers, Ian von Memerty, and his wife Viv, a former ballroom and Latin dance champion, and their children. As the title suggests, the show is a celebration of life, love, happiness and relationships.

Where: Arts Centre, University of Johannesburg, corner University and Kingsway streets, Auckland Park

Date: 2 – 14 December 2008
Time: 7.30pm
Booking fees: Tickets are from R100pp to R110pp at Computicket
Contact Info: 011 559 3058 / artscentre@uj.ac.za

Rod Steward In Jo'burg

He’s been around for a long time, and now blond-haired, gruff-voiced Rod Steward is finally coming to Joburg. Expect him to sing some of his old tunes, along with some of the newer stuff.

Where: Coca-Cola Dome, Corner Olieventhout and Northumberland roads, Northriding.

Date: 6 December 2008
Time: 8pm
Booking fees: Tickets are from R371pp – R1031pp at Computicket
Contact Info: 011 794 5800 / http://www.computicket.com

You are invited!

Zimbabwe - who will come to their rescue?

I am not a politician and think that a lot of politics is often about people's own egos and very little to do about what is good or right! So keeping this in mind I still would like to add my two cents worth to this over-debated problem.

There are two reasons why I am interested in Zimbabwe, firstly it is totally personal and emotional. Being an African and in particular a South African who came through Apartheid on the privileged, white side and seeing how a country's situation can change from "Threat of Civil War" to "The Hope & Example of the African Continent". My heart goes out to the millions of poor, starving and dying Zimbabweans.

I have been to Zimbabwe and what stayed with me was the absolute friendliness and kindness I was treated with on my visits. These visits were during the Apartheid regime in South Africa and so the Zimbabweans could have treated us with disrespect and blamed it on our politics. But never during our stay did any of them refer to politics.

I am really depressed about the current situation - people dying from Cholera by the thousands and once again nobody seems to be able to do anything to help them! This weekend three members of the Elders, Jimmy Carter, Kofi Annan and Graca Machel, tried to go to Zimbabwe on a fact finding mission, but were refused visas by the Foreign Ministry. If people of this calibre can't help them who will come to their rescue?

"US President George W. Bush meanwhile blasted Mugabe's "illegitimate regime" and called for a new order." Please let us all work very hard to keep George Bush and his army out of Zimbabwe!!

I prefer the Elders mission statement "Out of deep concern for the challenges currently facing all of the people of our world, Nelson Mandela, Graça Machel and Desmond Tutu have convened a group of leaders to contribute their wisdom, independent leadership and integrity to tackling some of the world's toughest problems."

Secondly, the Monopoly player/Estate Agent in me is fascinated to see what is happening with the property market in Zimbabwe. I do believe that once Zimbabwe has rid itself of the current mess it is in it will become one of the Jewels of Africa.

In the news this week I was surprised to read: "Despite the global economic crisis, Zimbabwe has yet to experience depreciation in house prices and the property market remains relatively unscathed." This really goes against what we are taught in Real Estate 101!

I would have thought that because of the (1) Land Grabbing, (2) Economic Crisis and (3) Political Instability you would be able to pick up stunning properties for a prices below R500,000. I was really surprised to read that the prices mentioned are in excess of R2 million!

I will be following the trend in the property market in Zimbabwe, but please let's all give a thought and send up a prayer for peace and normality to return to our beautiful neighbour and her gentle people!

Imagine no possessions
I wonder if you can
No need for greed or hunger
A brotherhood of man
Imagine all the people
Sharing all the world

Homeloans as an investment

(Residential) CAPE TOWN (November 05) - People wondering what do with their money as the world’s financial markets suffer wild swings should look to the certain returns to be had in their home loans advises bond originator, ooba.

Jenny Rushin, provincial sales manager at ooba, says that an investment into a bond gives a certain rate of return equal to your home loan rate.

“People are full of fear right now and wondering what they should do with their money - but one of the best options is right under our noses.

“If for example you have a R1m home loan at a rate of 14% (one and half percent below prime), on each extra rand you put into that bond you are effectively earning 14% on that money.

“And earning a certain 14% on your money is an excellent return and of course putting that bit extra into the bond brings you closer to becoming bond free. Numerous studies have shown that putting extra cash into your bond is consistently one of the best performing investments.”

Rushin points out the high interest rates in Souht Africa, while uncomfortable for home owners, does underscore the investment case for investing in a home loan given the massive interest savings benefits.

“Taking the example above, a home owner would have to pay R12 440 on a R1m bond at the moment had he borrowed at 14%. Putting R1 000 extra into his bond each month means an interest saving of R635 750,14 and drops the repayment period to 14,58 years assuming it was a standard 20 year home loan to start with.”

To illustrate just how much of an interest savings that can be achieved in a high interest rate environment, compare that to borrowing R1m at 10%. In this lower interest rate scenario, the monthly repayments are R9 650 a month on a 20 year loan.

“Let’s say a home owner decides to put R1 000 a month extra into his, or her, home loan in this environment; the interest saving is now R359 494,09 or R277 256,05 less than the high rate environment. The extra investment reduced the time taken to pay off the home loan to 15,33 years.”

Rushin also says that even in these tough times, each little bit extra invested into a home loan is worthwhile.

“Just skipping a few pricey coffees here and there means you could invest an extra R100 a month into a bond. On a R1m bond financed at 14% over 20 years, that means a saving of R99 536,43.

Real Estate Investment is not for sissies!

After a difficult week, I now need to write a blog which I promised will always be positive. I have decided to list all the difficult things that happened and turn them into a positive.

This week I started the process of selling a property which cost me dearly, fortunately I learnt a number of lessons in this process. Firstly, I bought an investment property for an emotional and not a business reason. Secondly, I went into a partnership trusting someones word and not doing it legally.

Two years ago a partner and I bought a beautiful old Victorian style house which had been badly neglected, the idea being to turn it into a guest house which would hopefully pay it's own bond and other costs and after a year or two start making a small profit. The agreement was that I would invest a substantial amount to bankroll the renovations and my partner would extend the bond on one of his other properties to pay his half of the renovations. Well I should have insisted that we open an account in which we both deposit our share of the renovation up front, but I trusted him to live up to his word. Renovations started by breaking the house and making it totally inhabitable, soon after this was accomplished my cash ran out and everything stopped, I was asked to bankroll the renovations further because of his current (over)exposure the bank was not prepared to loan him anything else. Well, fortunately I started to see the writing on the wall and was not prepared to spend anymore. He has now finally offered to "buy" me out, which really means he commits to pay the bond and will pay me about 25% of my initial investment back in 12 months time. The biggest positive outcome from this mess was that I decided to move to RE/MAX in the middle of this mess!

Many other people burn their fingers while investing in property and I found this story fascinating Real Estate Investing Is Easy Right?? In short this guy buys a property as an investment that he renovates and then tries borrow against the new value only to then find out that a portion of his dwelling in on his neighbour's property.

Yet another sale of mine was rejected by the banks this week. I felt so sorry for the buyers, they are so keen to get away from their current living conditions. They are living in a hostel and although they have a large living area they are surrounded by many other people. They have sent their daughter away to live with her grandmother in fear that she might be raped in these overcrowded conditions. They were going to buy the property in partnership with another couple and this way they qualified but the other couple had some bad payments. Looking at the big picture this was probably better in the long run, if the partner was a bad payer he could have gotten them in deep financial trouble in future.

Sad new was the death of Mama Africa - Miriam Makeba. She was another example of the miracle of South Africa. She was treated very badly by the previous government, but when democracy came to South Africa she came home with happiness and not bitterness and hate.

Well at least I ended the week on a good note - I was invited to go and see Beauty and the Beast and really enjoyed it.

The seven do’s of healthy lawns…

• Mowing
  at least once a week is essential for a beautiful lawn, and if possible twice weekly during summer. Judge the necessary cutting height according to how fast the next mowing is needed, but don’t end up cutting into brown stems due to too short settings. The clippings can be used to sprinkle over the lawn, and so feeding it. (Grass clippings make are also good for mulching elsewhere in your garden).

• Watering
  is of course vital and should be done at least once two-weekly. This will not only keep you grass green, but also repel insects like crickets and ants, for they prefer drier environments.

• Aerating
  for better water drainage and enabling oxygen to reach the roots. Lawn aeration involves the removal of small soil plugs or cores out of the lawn. Although hand aerators are available, most aeration is done mechanically with a machine having hollow tines or spoons mounted on a disk or drum. Known as a core aerator, it extracts 1.5 to 2 cm diameter cores of soil and deposits them on your lawn. Aeration holes are typically 3-15 cm deep and 5-15 cm apart. Other types of aerators push solid spikes or tines into the soil without removing a plug (spiking). These are not as effective because they can contribute to compaction. Core aeration is a recommended lawn care practice on compacted, heavily used turf and to control thatch buildup.

• Fertilising
  betters your chance of a weed- and disease free lawn, but note that grass treated with compost is quite prone to fungal diseases. It is therefor important to only use chemical fertilisers, like L:A:N for green leaf growth and 2:3:2 for lawn matting. Tip: to rid your lawn of moles, use Ammonium Sulphate in the place of L:A:N, making it too acidic for the earthworms that moles area after. The worms will move and the moles will follow!

• Thatch removal
  entails the cutting of your lawn so short that no green growth, but only brown areas are visible. After mowing, rake the clippings up rough enough for stolons to loosen and snap. Follow immediately with top dressing.

• Top dressing
  is an effort well worth doing. Start off in spring by sprinkle 60g of both Superphosphate and 2:3:2 p/m² over the entire lawn. Spread clean, weed-free sand over and level by dragging a bar across. Repeat until grass is showing only just through the sand. Sprinkle 60g of 2:3:2 p/m² again over entire lawn, followed by a thorough watering. Water once weekly.

• Edging
  every six weeks with a spade, shears or tool of your choice for a neatly edged lawn.

Source: Gardening Eden

What's on at the Botanical Garden

Malcolm Road, Poortview, Roodepoort

PO Box 2194, Wilropark, 1731
Email: SisuluGarden@sanbi.org
Tel: +27 11 958 1750
Fax: +27 11 958 1752

Fun Frog Walk - 22 November

By Ella Janse van Vuuren (FGASA)

Popular family outing. Children welcome.

Few spaces left. Booking essential as numbers are limited

Please meet at the Main entrance to the Walter Sisulu National Botanical Garden at 17h45.

Tswaing Meteorite Impact Crater - 29 November

Prof Nick Grobbler – Geology of the area
Prof George Bredenkamp – ecology
Mart Kotze – Birds

A 3 in 1 outing. You will not only learn about the crater and the geology, but will also learn about the trees and the birds. Bring binoculars.

Booking essential as numbers are limited.
R50 – members, R65 non members, Children under 12 half price.
Meet at the Crater at 08h30.

ART IN THE GARDEN - 30 November

Come along and browse a wide range of artwork available for sale in a stunning outdoor setting. A percentage of sales go to the Botanical Society's Garden Development Fund. Art in the Garden takes place on the last Sunday of each month and on selected concert dates.

Bird Identification Walk - 6 December
By Ella Janse Van Vuuren

Over 200 bird species have been recorded at the Walter Sisulu National Botanical Garden. Bring binoculars.

Booking essential as numbers are limited.
Meet at the entrance of the main entrance of the Walter Sisulu National Botanical Garden at 06h00.

Pick n Pay presents
Christmas Carols by Candlelight

Sat & Sun 6 &7 Dec 2008

17h00
Light entertainment associated with the festive season

18h00
The Duo: Riaan Swanepoel and Sylvia Blangwe
With Children's Choir to lead young members of the audience into songs for Christmas

19h00
Arrival of Santa Claus
Distribution of sweets throughout the audience, especially for the children

19h30
Welsh Male Voice Choir of SA
Carols by Candlelight and popular Choral music from around the world

Admission fees :Adult R35, Senior Citizens R25
Students R20, Scholars R10, Under Six – Free

(No booking required – pay at the entrance)
For more information contact 011 958 1750 or sisulugarden@sanbi.org

---

All bookings and enquiries for Botanical Society events should be directed to Karen: 011-958 0529 between 8 am and 1 pm.
botsoc@sisulugarden.co.za

Mortgage Originators - My Opinion

In an industry where there are so many accusations, dishonesty, lies and bad press, I decided that I would never get dragged down into the dark depths of unethical practices.

I had worked in the financial sector for most of my life and during this time I was involved in the IT sector for at least ten years. One of the biggest No No's of this industry is Kickbacks. It happens every once in a while that an IT infrastructure decision is based on the overseas trip "earned" by the IT specialist from the supplier. I personally was propositioned directly once in my IT career and was truly shocked that these people even mentioned something like this.

So when I announced to my then colleagues that I had decided to leave the "safe" world of corporate life to go into Real Estate into a very small agency, one of them asked his mom (a mortgage originator) to call me. Well, I was freaked out and insulted by her call because she congratulated me on my decision and then went ahead to promise me a Kickback on every buyer I sent her way. I then decided that I would never ask my clients to use a mortgage originator and would only offer it to them if they seemed to be at a loss. This was one of the worst decisions I have made to date!

What I have learnt since that very naive day is that the mortgage originator plays a crucial role in this process. The mortgage originator is a specialist who consults with and helps the buyer to get their financing. Remember the estate agent is usually committed to the seller and not the buyer as the seller pays my commission.

In my opinion if the buyer reveals his financial position to me I feel that the relationship between us then becomes much more intimate and my loyalties start being split. I prefer to refer buyers to an originator whom I trust fully and then I liaise between them to see that the process is moving towards a conclusion.

By not doing this I have no real idea of where the process is and if there are any stumbling blocks which are not being communicated properly between the buyer and the bank. What often happens is that the relationship between the agent and the buyer can become strained because the buyer does not like the agent asking personal questions and the banks are not allowed to discuss their clients with the agent.

As a forward thinking agent I know that the buyer is crucial to my business because I want to become their preferred agent in the future.

As for the banks I do believe that they feel the same, if this was not so mortgage originators would have been sidelined and would have disappeared in the last couple of months with the current financial crises. We know that the mortgage divisions in the banks are really struggling to meet their targets and they would prefer to save the commission they pay the originators but they must realise that these originators do have a very important role in this process.

So next time you hear or see an advert telling you that your agent does not deserve to get the kickback from the mortgage originator, ask yourself how well you understand the process and pitfalls of going to all the major bank to negotiate the best possible mortgage while running your life, job and family as usual.

Caroline

Buying Real Estate in South Africa for Non-residents

1. The contract
Contracts must be in writing, and signed by both parties. Estate Agents draw up an Offer to Purchase. Once signed this constitutes a valid & legally binding contract from which neither party can withdraw without incurring legal consequences.

2. Mortgages for Non-residents
Non-resident may only borrow up to a maximum of the amount he invests into the purchase of the property, which translates into a 50% loan.

3. Transferring the property
It is customary for the Seller to appoint the conveyancer
and the Purchaser to pay the costs. The conveyancer prepares the transfer documentation which, after signature by the Purchaser and Seller, is lodged together with the cancellation of any existing mortgage bonds and new mortgage bonds to be registered in a regionally located Deeds Registry. The Purchaser is recorded as the new owner of the property and the purchase price is paid to the Seller

4. Transfer Duty
The Purchaser is responsible for the payment of these fees unless purchasing new property directly from a developer whereby by developer is VAT registered. Transfer Duty
is payable to the Receiver of Revenue.

5. Commission
Commission is payable. The Seller is responsible for this fee.

6. Exchange Control
All funds introduced from outside SA to acquire fixed property within SA may be repatriated together with any profit on resale of the property, provided the title deed of the property has been endorsed "non-resident". The profit on resale may also be repatriated, provided, the relevant securities have been endorsed "non-resident".

7. Capital Gains Tax
Non-residents are only liable to pay CGT on the disposal of the following: Immovable property situated in SA, incl. any right or interest in immovable property.
- Individuals; 25% of the Gain is taxable.
- Juristic persons (Companies, Closed Corporations); 50% of the Gain is taxable. Companies are taxed at 30%.
- Trusts, 50% of the Gain is taxable. Trusts are taxed at 40%.

This is embarrassing!

Today is the 9th of November, my last post was four months ago! This is certainly NOT the way to go. What has happened in these last four months?

1. The property market has gotten even worse internationally.
2. Stock markets the world over are bleeding, I personally must have lost about 20% of my estate - fortunately it is only paper losses at the moment.
3. The Rand has also taken a hammering and lost quite some value - making my next overseas trip so much more expensive!

On a personal level, from the eternal optimist:

1. I've had at least one sale per month since I started with RE/MAX, of which only two have not qualified for finance.
2. I seem to be working even harder but it's starting to get a bit smarter too.
3. I went to Vietnam in September, my first overseas trip in more than ten years! This is only the first of many!

Although I have not been writing in this blog I have thought about it constantly (guilt) and I think writing a travel blog while in Vietnam is forcing me to get to this one. I have been struggling with the format I would like this blog to take, I would like to keep it focused on real estate but I would also like to give you a glimpse into my life, so you can get to know me a little better. So the idea will be to use the titles of my blogs cleverly so you would be able to distinguish business from pleasure.

I hope you enjoy reading the ravings of a realtor who really believes that she has found the best job in the world and that you will write back sometimes.

Caroline