Caroline at Home

Property Clock

2010-11-07T16:37:00.204+02:00

The property clock is often used to follow the property cycle, which circulates over a seven to ten year period, and is based on the relationship between interest rates, supply and demand, affordability/finance availability, and the cost of renting. It is seen as a useful tool by the experienced investors to aid them in determining the best time to strategically enter and exit the property market.

A property Boom, indicative of peak prices, is shown at the top of the clock at 12 o'clock, while a property Bust, is indicative of when property is at its lowest price, at 6 o'clock. The best time to invest in property, just after 6 o'clock, is during a rising market where it can dramatically lower the risk of investment.

An important point to remember is that the "time span" between a boom and bust market is on average three to four years.

The four quadrants of the clock can be better explain by looking at who buys & sells and what makes the clock tick (market move).

Boom Market (12 o'clock to 3 o'clock)

Who sells and why?

* Smart investors - Off-loading and shifting into an asset class with more growth potential

* Fortunate investors - Those "lucky investors" who were at the right place and the right time!

Who buys and why?

* Inexperienced investors - Jumping in just as the band stops playing

* First time buyers - Interest rates are low and entrance to the credit market is relatively easy

What moves the clock?

* High economic growth rate

* Very low inflation

* Sustained low interest rates

* Healthy foreign exchange rate and foreign reserves

* Stock shortage causes increasing property prices

* Increasing demand for property and high prices = sellers' market

Slump (3 o'clock to 6 o'clock)

Who sells and why?

* Landlords - Rentals far below mortgage payments

* Frightened Investors - Desperate to "get out before the bottom drops out of the market"

Who buys and why?

* Novice investors - Believe the good times and rising prices will never end

* "Must-buy" buyers - Relocating because of other circumstances

* Cash flush investors - Can afford a large deposit which makes mortgage affordable

What moves the clock?

* Slowing economy and anti-inflationary measures introduced

* Rising inflation and interest rates

* Credit not so readily available anymore

* Property takes longer to sell

* Lower sales volumes

* Lower house prices and negative equity

* Repossession of properties start increasing

Recession (6 o'clock to 9 o'clock)

Who sells and why?

* Indebted owners - Trying to avoid repossession

* Mortgage holders (banks) - Selling off repossessed properties

* "Must-sell" owners - Relocating locally or emigrating

Who buys and why?

* Cash buyers - Prices are low and no mortgage

* Professional investors - Bargain prices and repossessed properties

What moves the clock?

* Low business confidence

* High exchange rate

* Unemployment increases

* Reduced disposable income

* Reduced personal debt to income ratio

* Credit crunch and banks squeeze mortgagors (borrowers)

* Stringent inflation checks and rising interest rates

* High interest rates drive house prices down

* Minimal new construction

* Property oversupply = buyers' market

Recovery (9 o'clock to 12 o'clock)

Who sells and why?

* Rental property owners - Landlords getting dividends

* Investors - miscalculating market peak

Who buys and why?

* Experienced investors - Still predicting rising prices

* General public - Increasing credit availability

* Tenants - Afraid price increases will make later purchases impossible

What moves the clock?

* Renewed business confidence

* Market stabilizes

* Employment increases

* Interest rates and inflation declining

* Increased disposable income

* Improving personal debt to income ratio

* Property becomes an attractive investment

* House prices still low

* Increasing construction

* Increasing demand for property

Although this is a very simplistic analytical tool it is widely used by many investors. It is important to remember that it is not always the same "time" in every market and it is always advisable to gather the facts of the market you are considering and determining what "time" it is in that market.

The recent global slump we experienced and are still experiencing in many markets was unusually deep and long. The property cycle came to a complete halt; it was literally like taking the remote and clicking the pause button on the property market. We saw factors like global economic markets, business and investor confidence and finance availability inhibit the cycle’s movement.

In the market I work (middle class neighbourhood in the West Rand, Johannesburg, SA) we estimate it to be at around 8 o'clock, which signals the recovery will probably start in early 2011.

What you should do now:

Buy

* If you need or want to upgrade

* If you have extra cash to invest, buy a small second property (even if you can afford to use up your equity in your primary residence)

Sell

* If you need or want to upgrade (even if you sell your current home at a lower price)

* If you are drowning in your debt

Don't Buy

* If you can't afford at least a 1% increase in your mortgage repayment

Don't Sell

* If you are considering down-scaling

* If you have investment properties which seem to be sluggish

Remember the market will move on and if you are careful you will have many more opportunities to invest and make money in the property market.

Sources used: The Mortgage Magazine, and South African Real Estate Investor

Caroline's Properties
Inner City investment property
Good buy for a 1st time buyer
Excellent investment property
Modern living
Well priced with loads of potential
Distressed property - must sell before end of November
Stunning!
Extremely neat
Fixer upper
3 bedrooms and 2 bathrooms for under R600k!
Stunning view

Property - “VOETSTOOTS” ? Does Silence Constitute Fraud?

2010-08-08T14:57:00.001+02:00

THE VOETSTOOTS CLAUSE = “As is” / “As it stands”
To protect the SELLER from any action by the Buyer, on discovering any defects he was not aware of when purchasing the property, from doing anything to jeopardize the actual sale contract.

TYPES OF DEFECTS:
PATENT: A defect that is, or should reasonably be, easily identifiable upon inspection of the property.

Patent defects are described as flaws that will be clearly visible on a normal inspection of a property. They include wall cracks, sagging gutters, broken windows, missing tiles, etc. It is a Buyer’s duty to acquaint himself with the general condition of a property on purchasing it and he cannot later claim he did not see such defects. The test is an objective one, namely what could have been seen on the original inspection of the property.

LATENT: A defect that is not apparent after ordinary inspection by a 'reasonable man'.

Latent defects are defects which only an expert could discover or defects which cannot be discovered by an ordinary person during a reasonably thorough inspection, for example, rising damp in a house, faulty pool pumps and geysers, rusted internal pipes, leaking roofs (except where strain marks make the leak obvious) and defects that have been concealed such as dampness behind a cabinet. The test is what could not normally be seen on inspection.

Important: Defects can be TANGIBLE (E.g. crack in wall, hole in the roof) or INTANGIBLE (E.g. bad tenant or soon to be raised special levy)

The Seller’s Responsibility
In terms of numerous South African court cases a Seller is only excused from liability for latent defects where he himself was not aware of the problem at the time of the sale. If a Seller knowingly conceals a latent defect he will be liable to the Buyer for the cost of its repair.

A Seller will thus be liable for all cracks or dampness and other similar faults deliberately hidden from view. He is also responsible for latent defects which he is presumed to have been aware of, such as any appliance, which is not functioning properly. Examples are geysers delivering only lukewarm water, defective electrical points, etc\

The Buyer’s Recourse
It is very important for a Buyer to know what his rights are in such cases. By law he cannot do any of the following:

He cannot obtain a quotation and deduct the cost of repairs from the purchase price and tender a lesser amount (or reduce his deposit);
He cannot refuse to pay occupational rental or any portion thereof unless the defective article seriously restricts occupation of the property;
He cannot repudiate or cancel the sale contract.

It is he, and not the Seller, who will be in breach of contract if he takes any of these actions. By law his proper recourse is to institute an action for damages and sue the Seller. This will obviously not appeal to the Buyer and the best way to resolve the problem is to ask the Conveyancer doing the transfer to settle the matter amicably with the Seller. Ideally he should arrange a refund of the costs of repair to the Buyer on registration of transfer. It is in the best interests of both parties to agree to this.

Late Discovery of Defects
There are two issues here. Firstly the discovery of defects that only appear later. For example, a Buyer may only experience a major roof leak when the first summer rains appear long after registration. If it can be shown that the Seller knew or must have known about the leak and consciously failed to disclose it, the Buyer can sue him for his repair costs.

The second issue concerns a delayed discovery of defects by the Buyer. For example he may only first complain about a wall crack six months after taking occupation. It will be very hard to prove that the Seller knew about a defect which the Buyer himself took so long to discover or that the defect existed at the time of the sale. In such cases the Buyer will have no recourse against the Seller.

The Estate Agent’s Responsibility
An Estate Agent is only obliged to inspect the property for obvious patent defects, to inquire from a Seller as to what known latent defects exist and to then disclose them before signature to the Buyer. Once having done this the Buyer’s recourse is against the Seller alone. A Buyer’s recourse will inevitably rest against the Seller alone and not the Estate Agent.

SOLUTION
“Prevention is better than cure”
When taking the mandate, the Estate Agent should advise the Seller to disclose ALL defects, and disclose same in the Offer To Purchase.

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Caroline's Properties
Under R700,000

Just Listed - R399,000
3 Bedroom house - R485,000
Perfect Townhouse - R510,000
Really cute! - R689,000

Under R1 million

Reduced! - R800,000
Very Urgent! - R850,000
House & Flat - R899,000
Beautiful Home - R920,000

Over R1 million

 What a view! - R1,09 million
Pub & Take Away - R1,25 million
STUNNING - R1,35 million
Northcliffe - R2,5 million

My Dad - Goodbye

2010-05-09T19:23:00.000+02:00

Sad news, my dad passed away just before 5pm Saturday afternoon. He has been aging quite fast the last year or so and had been ill for a bit more than a month. He eventually died of pneumonia but it was very peaceful and as far as we could see quite painless. We decided to not take him back to hospital when he came home after Easter so he spent the last while in the frail care unit at Elm Park Village, where they cared for him with such tenderness and love. It has been a difficult period for us second guessing our decisions and sitting around watching him deteriorating on a daily basis. I believe we are all relieved its over but he was such a big part of all our lives and will leave a very large gap.

I am particularly glad that he was around for so long and that he shared so much with Charles and I. He was much more than a grandfather to Charles and they had such a strong bond. He was always there for me and bullied me into buying my first property in 1983 - which I still own! I think he transfered his love of the property market onto me and got so much pleasure out of the fact that I had the courage to leave the safety of a big corporation and follow my heart. He could never get enough of my stories about my clients and deals and particularly loved to hear about the bodies corporate on which I serve as trustee.

Good Night Mr Calabash wherever you are!

Do we care enough? Have we given up?

2010-05-01T15:45:00.006+02:00

I promised myself I would write a positive blog and not go down into the downwards spiral of complaining which is often seen in my industry, but I would like to ask a couple of questions.

The Jo'burg city council decided to upgrade their West Rand systems to SAP in October 2009. It has been a total disaster for all involved except it seems the people who are responsible. According to Kerry Taylor Director of Rates On Line, "On the 11 January 2010 (2 months later) the first applications were accepted for the issuing of clearance figures on the new SAP system. One person in the clearance department had received training and could capture the applications. As of the 18th January 2010 the next two staff members in the clearance department received training and began allocating figures to the staff who would be issuing the figures ultimately. There still poses a problem though. Up until today only a few of the staff have received training."

We have experienced a total bottle neck in property registrations since October 2009 - there are millions tied up in this mess and it seems nobody is prepared to do anything about it! Have we given up and will we just except this total incompetence?

What amazes me is that there was no class action against the Jo'burg council, if you look at people affected.

Firstly, we have the financial sector who have granted mortgage bonds worth millions on these new properties. These funds have been allocated to these mortgage bonds and are not earning any return while it is in the process. Why is there no pressure from the banks?

Secondly, we have the legal professionals - the slump in the property market since 2008 has had a significant influence on their bottom line if you just look at the way they cut back on their staff numbers. The market has started recovering and they now also have fees locked up in this mess. Why is the legal fraternity so helpless in this situation?

Thirdly, we have the estate agents - the few of us that survived the disaster of 2009 are now sitting with our commissions frozen. Why do the Estate Agents Affairs Board and the Association of Estate Agents not act - is this proof that they really as toothless as we thought? Also what about the large Agencies like RE/MAX, Pam Golding, Chas Everit, etc? Are they too busy fighting about turf that they can't stand together to fight this incompetence?

Fourthly is the normal citizens of which you and I are members - are we just going to accept what is being done to us? We go through the trauma of selling our homes and finally everything falls in place for us to move to our new homes with all the stress that is involved with that only to realize that we will now have to pay occupational rent until the staff at the council decide they feel like working? We are also forced to live in our new homes without doing any of the renovations we planned because we will stay tenants until the council staff decide to issue a clearance certificate for us.

You have to ask what has been done to resolve this?

As to my knowledge the banks have done nothing to date.

The Property Law Committee of the Johannesburg Attorney Association have drawn up a list of complaints and had talks with the council, twice as far as I know - with no effect that I have seen.

To my knowledge, the estate agencies have done nothing as a collective, neither have the Estate Agents Affairs Board nor the Association of Estate Agents.

I took photographs of one of my client's meters, she went to the police station and did an affidavit that she had done her own meter readings and that the documents attached were a true reflection of the meters. She took these to the council and was assured that her information was captured - nothing. She went to ask her local councilor for assistance - nothing.

The DA had a meeting with residents with no results - I doubt if they have even bothered to contact the people who attended the meeting. To me it seemed like the ideal situation for them to baffle the meeting with political propaganda - they need to be re-elected soon!

The DA staged a protest against Nedbank last week in protest of the bank declining to grant a commercial bond to finance the resale of an office block. The message I take from this is that the councilors know that it will have no effect to address their colleagues in the council and thus don't even bother!

What do we need to do to rectify this?

Is the council waiting for someone in the private sector like FNB to volunteer to send FNB staff to do their work while they sit and eat KFC like what happened when Outsurance started doing the Traffic Police's work and now KFC is fixing the potholes. Where will this end?

Is this the definition of nationalisation the young politicians are asking for?

My Dad - Education, graduation and childhood

2010-04-25T22:53:00.003+02:00

Charles, including all his brothers, received their primary/secondary schooling at the Louw Geldenhuys School in Linden Johannesburg. This School was named in honour of Lourens Geldenhuys who was born on the farm Eikenhof in the District of Heidelburg, Transvaal in 1864. He bought the farm Emmarentia on the 13 October 1909 and was also one of the owners of the farm Braamfontein.

Lourens (Louw) Geldenhuys was a member of the Second Volksraad of the Transvaal (1896/1899); the Legislative Assembly of the Union of South Africa, and the Johannesburg Municipal Council. In the ‘June 1929’ elections for the Legislative Assembly, Lourens Geldenhuys achieved the very rare (if not unique) distinction in South African political history, by defeating his opposing candidate for the Johannesburg North constituency by a margin of only one vote. He was also a very active supporter of the missionary work carried out amongst the black mineworkers who were housed in the compounds established by the mining house companies in Johannesburg. Louw was against the continuance of the guerrilla warfare during the Anglo-Boer War and was a member of the South African Party (later - United Party) and represented the Johannesburg North Constituency until his death in 1939.

The Louw Geldenhuys school in Linden (established in 1902) was what was then known as a ‘double-medium school’ i.e. it catered for instruction in the home language of children from both English and Afrikaans family.

The De Wet children’s mother had decided that her children were to be brought up in an institution that was more tolerant of her circumstances at that time. As a consequence she chose the Salvation Army whose senior officials at that time were mainly drawn from Europe -more particularly from England where it had been founded in 1878. These officials had not yet managed to master the Afrikaans language in South Africa and as a natural result, English was the language in which that organisation’s affairs were conducted at their children’s homes. The language generally spoken at the Boys’ Home in Linden was English. The reason for this language-medium was two-fold. Firstly, at that time, most of the children taken up in these ‘homes’ were from English-speaking families and secondly, Afrikaners in South Africa were also in general not attracted to the Salvation Army’s style of religious worship. Consequently, all the De Wet boys had also received their tuition (1922/38), in the English medium.

Charles however, when entering into the first grade at school, was placed in the Afrikaans-language stream, through the intervention of his eldest brother Jacobus (Jack). Jack had had misgivings in regard to the person who was responsible for the teaching of the little children through the medium of English in their second Grade of the English-language stream. It was Jack’s perception that this particular teacher had taken a dislike to the succession of De Wet boys that passed through her hands and (although, personally, being of a tough and dauntless disposition) he was not anxious to see his youngest sibling (a very small baby when they had earlier been separated) also being exposed to this particular teacher when only entering his second year at school.

When he reached the higher Grades/Standards at the school, Charles was ‘uncomfortable’ in the Afrikaans-stream because the thoughts and the reasoning of his mind were predominantly in English. He believed that he had been particularly disadvantaged by the decision taken on his behalf when he had barely reached the age of six. It was his considered opinion that he would have done a great deal better at school had he received his instruction in the English language.

At the cessation of the 1939/1945 World war and on his return to civilian life, Charles took a serious interest in the public debates that were taking place at that time in the ‘Mother-tongue/Home language’ medium of education. Regrettably, in his view, these debates were mainly attended and dominated by prejudiced persons (which included learned educationalists) with a distinct ‘nationalist Afrikaner’ political agenda – at the ‘expense’ of the genuine interests of the South African youth.

In a less serious vein; another reason of personal regret for Charles was that, in the Afrikaans stream, he had been denied the important primary (Grade 1) learning, in the class of the very popular and intensely devoted Miss Honey; a person with an abundance of empathy for the very young children placed under her care, and more particularly, the children from the Salvation Army Home. Ironically, when the time came for Charles to be moved to Grade 2, the English and Afrikaans teachers in that grade were interchanged; resulting in Charles ending up under the very teacher that his brother Jack had wanted him to avoid.

In 1938 Charles was elected the captain of his schools', very successful, first rugby team. The attached team-photo reflects the absense of two members from the team - one of them of note being their quality wing-three-quarter (Andrew ‘Tony’ Harris); and the inclusion of their two sportsmasters, viz. A P Minnaar and D J (Mannetjies) Viljoen. Sorry, I need to look for this Photo

Charles always held his schoolteachers in very high esteem. He had however a particularly high regard for Mr Viljoen and is on record for having said that he believed that Mr Viljoen played a very significant part in his upbringing and that he also believed Mr Vijoen to have been one of the most important role-models in his life.

Charles remembered Mr Viljoen once telling his class (which comprised ‘home-boys’ as well as a majority of ‘outside’ children) that, if he ever were to decide to open a business of his own, he would recruit home-boys because these boys had been brought up to do work - regardless of whether or not the ‘jobs’ were in the normal course considered to be ‘dirty’ work.

By way of examples, it must be mentioned that:

In the time prior to the introduction of water-borne sewerage disposal, teams of ‘big boys’ were required to empty and wash out the lavatory buckets at the end of each week. The contents of the buckets were collected into other larger buckets and thereafter disposed of into shallow pits that had been dug out in the large fruit orchard.

The waste water from the communal shower and wash rooms which had accumulated in the large cement ‘sump’ during each week, were emptied over the weekends by teams of boys working in pairs, carrying the water in four-gallon tins and emptying it onto the fruit trees in the orchard. Some water would inevitably splash onto the hands and feet of the boys. In the winter months this invariably resulted in painful ‘chapped’ skin which had to be treated by the application of a home-remedy mixture of candle wax and paraffin.

The washing and ironing of the school and play clothes was done by the boys at some of their development and stay at the home.

Incidental ‘jobs’ Charles remembered having done were:

Intermittently, looking after the cows. This job involved being released from school for a day and an opportunity to look for snakes and lizards - he could not remember ever having milked the cows or cleaning the fresh manure from the cowsheds;
Cooking in the big copper pot – Breakfast porridge and lunch stew;
Sweeping the ungrassed areas of the yard;
Polishing the stoep areas;
Sweeping, dusting and tidying the dormitory areas;
Making up the beds of the ‘small’ children;
Sickle the long grass;
Hoeing the weeds from between the fruit trees;
Making Apricot and Plum jam from the abundant harvest of fruit from the orchard, from which other homes and institutions of the Salvation Army were sometimes supplied;
Doing the duties of the ‘big boys’ e.g. checking, among other things, that the smaller boys’ hands, necks, elbows, ears, feet and legs had been properly washed, including the inspection for slow-healing sores or boils needing the attention of the Matron;
Etc…. Etc….

Another not to be forgotten incident relating to this particular teacher was when Charles had been chosen as scrumhalf for the trials of the Johannesburg school team to play in schools’ rugby match against their counterparts from Pretoria.

Mr Viljoen had arranged to take the pupil in his car to the venue at which the trials were to be held. Unfortunately, at the pre-arranged time Charles was still searching for his ‘illusive’ togs while keeping his teacher waiting in the car. In order to teach his pupil a lesson in courtesy and punctuality, Charles found that the car and its driver had left without him. At school on the following school day the lesson was resumed with a ‘jolly good talking to’. Charles subsequently sensed the disappointment felt by Mr Viljoen, as the Johannesburg teams’ ‘second-choice’ scrumhalf had a very bad game on the day of the match. However, in the following year, the previously ‘disgraced’ Charles was to redeem himself when the Johannesburg schools turned the tables on their Pretoria opponents in the return match. Mr Viljoen was all the more pleased that it was the turn of the opposing scrumhalf (the same person who had played against Johannesburg in the previous year) to experience an ‘off day’.

It was also during the English-period literature-lessons given by Mr Viljoen to the Afrikaans-stream scholars in the advanced Grades, when Charles was introduced to:

The romantic story by Richard Doddridge Blackmore of ‘Lorna Doone’ which was set in the wild country of Devon in England –a place that Charles had the privilege to visit during one of his overseas business trips;
The humanity found in the stories of the ‘The Adventures of Tom Sawyer’ by Mark Twain; and ;
The thrilling adventures of Jim Hawkins in ‘Treasure Island’ by Robert Louis Stevenson;

In addition, the following unforgettable English poems:
The Donkey by Gilbert Keith Chesterton
The Burial of Sir John Moore by Charles Wolfe
The Cloud by Percy Bysshe Shelley
The Charge of the Light Brigade by Alfred (Lord) Tennyson

The brass band of the Linden Boys Home
Charles’ first introduction into the brass band was as a very young child, in the percussion section. Charles has a grandson who today is a an accomplished jazz drummer.

His instrument was the triangle that consisted of a steel rod bent into a triangular form open at the one corner. The two ends at the open corner, each bent outwards into a small semi-circle to enable the player to thread a cord by which the instrument is held. It is ‘played’ by striking the triangle with a small straight steel rod. Although Charles’ place in the band was more that of a ‘band mascot’, he was nevertheless able to correctly strike the triangle to whichever ‘beat’ of the music was being played; - whether it be two beats in a bar; three beats in a bar; or, four beats in a bar. From the triangle, he was eventually promoted to a cornet player in the band.

All the De Wet boys were taught to play an instrument in the brass band at different stages of their life at the Linden Boys’ Home:

The eldest boy Jacobus (Jack), played the Euphonium;

The next eldest Johannes (Johnnie) played the Trombone, then;

The next brother, Benjamin (Ben) played the Tenor Horn, and;

The youngest brother, but one, Walter, played the Bass.

With Charles on the cornet, it could be said that the ‘De Wet boys were able to set up their own brass band.

My Dad's history

2010-04-25T19:11:00.009+02:00

I have decided to finally publish my Dad's memoirs, I do regret that I didn't get him to type more while he still could! Please add to these if you know him at all!

Charles Andrew de Wet

Very shortly after his birth on 31 December 1920 (or possibly even during his mothers’ pregnancy) Charles’ parents marriage broke up. Charles was christened ‘Charles Andrew’ by Ds. L E Brandt in the school hall of May Consolidated Mines Germiston. -P.N. Janse van Rensburg and Aletta Wentzel officiated as witnesses at the ceremony.

In view of the breakdown of her marriage, Charles’ mother, Hester Catherina de Wet, was forced (after a vain struggle of about 18 months) to safeguard her children by placing all of them into childrens’ homes that were run by an organisation which was acceptable to her.

It should be noted that in those times divorce was severely frowned upon and that women who were caught up in these circumstances, were considered a disgrace to their family and, at most times by others, even as ‘shameful and wicked’. The worshipers in her church were particularly staunch in their views in this regard; and, in truth, it may be said that it is more than likely that she may even have shared these views had she herself not been an unhappy ’victim’ of these circumstances.

The organisation approved by the childrens’ mother was the Salvation Army ‘a world-wide Christian evangelical, social-service, and social-reform organisation, originating in 1865 in London (England). It has military titles for its officials; is renowned for its brass bands; and, at that time, for its weekly journal, the ‘War Cry’. The Salvation Army was (and still is) particularly qualified at caring for children whose parents had fallen on hard times and who were thus unable to provide their offspring with the essential quality fosterage.

Except for Charles and his third eldest sister Judith, the Salvation Army were able to accommodate all six other children: - the two oldest sisters; in their Driehoek home for girls, and the four remaining boys –at their ‘Driefontein Social Farm’. In 1923 these boys were transferred to ‘Firlands’, the Salvation Army’s newly built Boys’ Home in Linden.

Charles, who had barely been weaned from his mother, was placed in the Louis Botha home for children, in Pretoria until approximately 1926, when he was considered old enough to join his brothers in the Salvation Army home for boys in Linden - his mother having graciously turned down an offer submitted by an influential Pretoria family to adopt her child a year earlier.

Some interesting historic notes on the name of CHARLES:
The name of seven Holy Roman Emperors.

Charles I Charlemagne -Charles the Great; (c742 - 814), king of the Francs, founder of the Holy Roman Empire and, in legend, hero of the Chansons de Gest. In 771, on the death of his co- ruler, his brother Carleman, Charlemagne became the sole ruler of the Francs and began to extend the kingdom. In response to an appeal by Pope Adrian I, he waged a successful campaign against Lombardy in 773 - 74. Bavaria was annexed in 788, and the Saxons and Avars (on the Danube) were subjugated and Christianised after some 30 years of war. In 800 Charlemagne was crowned emperor by Pope Leo III. From his court at Aachen he not only controlled an efficient administrative system, but also fostered the Carolingian cultural renaissance, which spread through much of present- day France, Germany, Austria, Switzerland, Holland and Belgium.
Charles II Charles the Bald (823 – 877) reigned as the king of the Francs from 843 and as Holy Roman Emperor from 875. Numerous revolts and invasions troubled his reign. It was the last great reign of his dynasty and culturally the last flowering of the Carolingian renaissance.
Charles III the Simple ( 879 – 929), grandson of Charles II.
Charles IV the Fair (1294 – 1328), king of France, reigned from 1322.
Charles V the Wise (1337 – 1380), king of France, reigned as regent 1356 – 64 and as king from 1364 –1380. Frail and poor in health, he nevertheless put down th Jacquerie uprising and various plots by his nobles. He regularized taxation and the increased revenue to build up his armies. He declared war upon England in 1369 and before his death his armies, under the great commander du Guesclin,had regained most French territory occupied by the English.
Charles VI the Mad (1368 – 1442), reigned as king of France from 1380 to 1422. He began a disastrous reign at the age of 12. Subject to frequent and severe fits of madness, he allowed corrupt advisers to reign in his stead. England overran most of the north of France once more and Charles was forced to name Henry V of England as his heir (1420).
Charles VII (1403 – 1461), reigned as king of France from 1422 to 1461. The early part of his reign was marked by his unwillingness to challenge the English occupation of France, even to the extent of allowing Joan of Arc to be burned as an heretic. With the influence of new advisers and the end of Burgundian alliance with England, Charles introduced tax reforms, rebuilt his army and regained all occupied territory – except Calais.
Charles VIII (1470 - 1498), reigned as king of France from 1483 to 1498.
Charles IX (1550 – 1574), who reigned as king of France 1560 – 74 was dominated by his mother Catherine de Medicis, who instigated the St. Bartholomew’s Day massacre*.
*The killing of French Hugenots which began in Paris on 24^th August, 1572. Jealous of the influence of the Hugenot de Coligny on her son king Charles IX, Catherine de Medicis plotted to assassinate him. When this failed Catherine, fearing Hugenot reaction, persuaded Charles to order the deaths of all leading Hugenots. On the morning St Bartholomew’s Day thousands were slaughtered. Despite Government orders to stop, the murders continued in the provinces until October.
Charles X (1757 – 1836), reigned 1824-30. He returned to France from exile after the restoration of the monarchy, becoming king on the death of his brother Louis XVIII. He was exiled again after the 1830 revolution, largely provoked by his autocratic rule.

The name of an Italian ruler.

Charles I (1227 – 1285), king of Naples and Sicily from 1266, first of the Angevin dynasty. His last years were marked by a struggle to retain Sicily. As count of Anjou and brother of the French king, his reign laid the basis for future French claims to Italy.

The names of the Stuart kings of Scotland, England and Ireland.

Charles I (1660 - 1649), came to the throne in 1625. His absolutist beliefs and Roman Catholic sympathies alienated the Puritan dominated parliaments. Forced to dissolve parliament in 1625, 1626 and 1629, he ruled without one until 1640, when increasing fiscal problems made him call the long parliament, which sought to curtail his powers. This precipitated the Civil War in 1647. Charles was defeated and captured in 1647. His continual duplicity in dealing with his captors led to his trial and execution.
Charles II (1630 – 1685), returned from exile to succeed his father in 1660 after the death of Cromwell. His pro–Roman Catholic foreign policy, reflecting his own sympathies, made him distrusted, but he was more tolerant in religeous matters than his parliaments. A shrewder man than Charles I, his political expertise and cynicism kept him much of his power. In the end he retained the Country’s affection, if only for his flamboyant private life.

The names of four kings of Spain .

Charles I ( see Charles V, of the Holy Roman Empire)
Charles II (1661 – 1700), last of the Spanish Hepsburgs, reigned from 1665. Feeble and degenerate, he could not produce an heir, and named Philip of Anjou, grandson of Louis XII, his successor, causing the war of the Spanish Succession.
Charles III (1716 – 1788), reigned from 1759. A strongly abolitionist monarch, his attempts to expand Spanish interests in South America met with defeat at British hands. His enlightened domestic policy reducing the power of the Church and Inquisition and the introduction of administrative reforms, was considerably more successful.
Charles IV (1748 – 1808), during his reign between the years 1788 – 1808 , Spain was largely ruled by his wife, Marie Luisa of Parma and her lover, Chief Minister Manuel de Godoy. Defeated by France in 1795, Charles allowed Spain to become a satellite of Napoleonic France, and was forced to abdicate in 1808.

The names of fifteen kings of Sweden.

Charles I to Charles VIII (see kings of the Holy Roman Empire).
Charles IX (1550 – 1611), reigned from 1607.
Charles X Gustavus, (1622 – 1660 ), reigned from 1654. He campaigned in Poland and Denmark, winning Sweden’s provinces from the Danes.
Charles XI (1655 – 1697), king from 1660; established an absolute monarchy and rebuilt Sweden’s military and economic power.
Charles XII (1682 – 1718), king from 1697, routed Russian invaders at Navra in 1700 and embarked on a series of expansionist campaigns. His death during a siege ended his autocratic monarchy and Sweden’s hopes of empire.
Charles XIII (1748 – 1818), reigned from 1809.
Charles XVI (1818 – 1844), ruled Sweden and Norway under this title. His birth name was Jean Baptiste Jules Bernadotte.
Charles XV (1826 – 1844), reigned from 1859

NEXT CHAPTER - My Dad - Education, graduation and childhood

I'm still here!

2010-04-24T22:33:00.002+02:00

Hi there! I'm still out here plodding along trying to blow some life into the Real Estate market!

I can't believe I have not written in 6 months - time really flies when you turn your back or maybe it is just when you get older and appreciate time.

Well the good news is that things are truly getting better in the market and I have sold a couple of properties since I last wrote on this blog. Unfortunately I have not really earned much money because the fabulous striking municipal workers are not doing their work (since November) and our properties are not being registered.

Fortunately my investment are also starting to look better and I am still surviving out here. For those of you waiting for the conclusion of No good deed will go unpunished, I am waiting for the results of an audit before I write the conclusion. I should have it in about a month's time. Thanks for reading it and the feedback!

On a personal level, my dad has entered a new phase of his life and it has been quite traumatic to witness! My dad will turn 90 on 31 December 2010 and has started aging fast. He has been getting slower and slower over the last couple of years. He became ill in early April and we were quick enough to get him to hospital before it became too serious but he did eventually get pneumonia - luckily in the hospital where they pumped him full of antibiotics and he could recover. He has subsequently come home but was moved to frail care after 1 day at home and has been there since, I don't think he will get strong enough to go home again. He is quite happy being there and he is being treated well by the staff.

Charles is still in South Korea and will come home in October, he says only to renew his visa and work permit to go back again - I really miss him but am very proud at how well he is coping on his own.

No good deed will go unpunished! (part 2)

2009-10-17T06:36:00.000+02:00

During this time we chatted about what we had done during the 10 years of not seeing each other and I told her about my investment properties in Hillbrow and the CBD, this peaked her interest and she told me that she has been toying with the idea of becoming a Managing Agent. Subsequent to this discussion she offered to "help" me manage my units and I thought it would be a good idea because she was an accountant, she worked for Joburg water and had good inner city connections and knowledge and she could be trusted. Good deed number two!

The next thing she got suspended from work because she had unraveled irregularities and had become a threat to her boss and colleagues. I then introduced her to Dave, my principal (at that stage) who is also a city councilor and he was very keen to help her expose the irregularities - she never allowed him near her evidence.

Now I suddenly became her best friend, I think it was more like her only friend! She now insisted on visiting all my flats and meeting with my tenants, I did not think anything about this and was comfortable doing this. I don't know why she did this but I have always been on very good terms with my tenants and I don't think it would have been easy to interfere in these relationships.

Meanwhile she approached both Dave and I about her managing agent idea and we decided that it would be a very good mix of talents, her accounting and workings of the utilities knowledge, my connections, experience and knowledge of property in the inner city and Dave's property and council knowledge. Dave was at this stage managing a couple of buildings and was struggling to implement a good system. At the same time I had realized that one of my investments was being extremely badly managed and as chairman of the Body Corporate was thinking of replacing him. So, Dave and her went into a partnership and I got the managing agent fired and got her in as the new managing agent. Good deed number three!

This was sort of a good thing because the previous managing agent was killed a couple of months later in a car accident and the story was that he was forced off the road by his Nigerian drug supplier and that a lot of money in his trust fund had disappeared. Fortunately I had saved my building from this but I had now put it on a course for another disaster!

Things went really well for a couple of months. I was working very hard trying to learn my new career and money was very tight on my side. She, however, was still suspended on full pay (this long vacation lasted nearly a year if I remember correctly!) and she worked on the three buildings. She seemed to be knocking on my door everyday to pop in for coffee and a chat, I was quite stressed about making money and I was still very uncomfortable about the drama in America. She arrived one morning just after breakfast, I had an appointment and told her she could come in but I didn't have time for coffee. I asked her to please stop arriving unannounced and to please just check with me that it was convenient and to please understand that although I was at home I was working and could not afford to be interrupted all the time. This was the trigger!

Charles - how will I miss you?

2009-10-16T07:07:00.003+02:00

For those of you who don't know yet, my only child, Charles, is going to teach in Korea for a year. He will be leaving Monday 19 October. This is the feared "Leaving the Nest" time for me and I thought I would share some of the emotions with you and hopefully make it easier for some of you when your turn comes.

Dear Charles, our lives will have been wrapped around each other for the last 23 years, 9 months and 4 days on the day you leave and I can't imagine how it will be to wait for so long to have you home again.

What I will miss:
Being your GPS - You phoning me on the way to a strange place asking me the way and then arguing with me about my directions! Why do you phone me if you know where to go??

Being your deadline - How do you always manage to push your deadline to the last second and not only that, you push it onto me and then start nagging and threatening me that I'm not going to make it. Remember paying for your flight to Korea??

Drinking your tea - I need to ask you to make me tea a hundred times before you do, then you make it and leave it to draw while you sit outside smoking and reading a book. By the time I start freaking out about my tea you discover that the drawing tea is now ice cold and beyond strong then all you do is nuke it in the mike and tell me it was made with love!

Smoking - I am happy that you respect the no smoking inside the house rule, but why can't you put your stompies in the ashtrays provided at the front door and at the back door? The dogs will be happy to have ash-free water and it will probably take a year to get rid of all stompies in my garden!

Shoes - I don't know where you got the habit of taking off your shoes when you come into the house at night, I learnt very quickly to expect your shoes anywhere and always managed to avoid falling over them when walking in the dark house at night.

Sleeping - I am so used to waking up at 4am when you come home from playing computer games with Charl. Hopefully my sleeping pattern will eventually go back to normal!

Chatting - I often wonder what it must be like having a daughter to chat to. All I can say is chatting to you is never boring, your theories and opinions are a mixture of naivety, entertainment, frustration and amazement. You've got IT - don't waste IT!!

All I can say is it's been a pleasure raising you and I hope you have an amazing adventure forwards, you are well prepared and will be able to handle anything that crosses your path. Dink voor jy doen!

Remember your fanclub at home loves you very much
Woof - Ugly, Lucy, Roxy and Wit Hond
Bye, Bye King - Bongi
Bye Fat - Johanna
Bye my Liefie - Ouma
Bye my boy - Oupa
Bye Asshole - Mom

Property - The beauty contest has started!

2009-10-12T07:01:00.000+02:00

Property Trends
There has now been a definite shift in the market in my area! The latest homes that has come to market are really stunning compared to stock on the market three months ago, check my links at the end of this post. The agents, the few that are left, have now also come out of hibernation and are very active again. Three months ago the MLS open hours were attended by 3 to 6 agents, this past week we had an average of 9 agents per viewing and in some cases 20 agents attending. This means the buyers are now serious and the agents' phones have started ringing again.

If you have been thinking of investing in a second property or upgrading - now is the time!

Some tips when buying in a buyers' market

The timing in and out of the market is crucial for the investor. The homeowner who lives in the home for about 7 years will benefit from his/her patience but a buyers' market creates a golden opportunity to upgrade . If you are down-scaling you have to try and sell at the peak of a sellers' market.
The best homes are withdrawn in a buyers' market and re-appear when the market starts picking up again, I believe we are now entering this phase.
Location drives value. Buying a rundown property in the best location means that you will benefit from the surrounding area. It is a known fact that suburbs can demand a premium. A good example of is this over capitalised house in the list below, in a better area this house could fetch R890,000. The best example of this in my stock is this Florida home.
The market is ruled by what we term "imperfect communication". Buyers and sellers only see asking prices which are extensively marketed, but seldom see what is really negotiated. Ask your agent to show a CMA (Comparative Market Analysis) for the property you are interested in buying. This will give you a good feel for the "real prices" in the area.

New Stock on the Market
Under R700,000
An investment property - R360,000
For the first time buyer - R485,000
URGENT SALE - R499,000
Entry level home - R 540,000
An excellent investment both for R1,1m or R590,000 each
Upgrade from a flat to this beauty - R595,000
A fixer upper - R699,000

Under R1 million
A real beauty - R750,000
Stunning! Over-capitalised - R780,000
URGENT SALE - R820,000
Townhouse with private pool - R850,000
Well maintained home in cul de sac - R850,000

Over R1 million
A large home - R1,09 million
My favourite!! - R1,15 million
A large family home - R1,48 million
Large house and 2 bedroom flat - R1,8 million

No good deed will go unpunished! (part 1)

2009-10-10T05:28:00.002+02:00

I have had a terrible fortnight! A "friend" from my past is haunting me and for two years I have tried to put the ugly mess behind me but I have now decided that it will not go away unless I do something about it!

What is friendship? Someone who was at school with you then went to the same Varisty and studied the same course and hung out together and became friends. We then lost touch, can't remember why, but she got married and I didn't. Couple of years later we realised we both had babies three months apart, she still married and me still not, skande! We then rekindled the friendship around the struggles of patenting. I actually can't remember if we kept in touch all the time or not but she got divorced along the way and of course I am still single. When the kids were about 9 we decided to take them to Disney World. It was a well planned trip and affordable because we were sharing everything.

Forcing two only children to share was a bit of a challenge and I ended up packing my bags and knocking on my long lost cousin's door in Houston. This was a blessing, they welcomed us with open arms and we had such a good time that we went back a couple of years later and she constantly nags me to come visit again.

Well I don't take kindly to being kicked out in a strange country and the friendship ended here, or so I thought! I sometimes wondered how she was doing because I can't imagine life could be easy if you are aggressive and constantly fighting, but she was involved in an affair with her boss and I imagined that she was happy. And my life was full with a son that was growing up fast and all the challenges of being a single parent, building a career in a very competitive environment and I have a family who are very involved with each other. So life went on.

I have another friend, Mr Cupboard, who was also at school with me and we have a very special friendship, we call each other every now and then meet up for a drink or a meal and generally have a good time in each other's company. For any of you thinking of making a match - he is married to a girl who also went to school with us and she also has a good time with us! Anyway he started nagging me to do a class reunion in 2006, which we did and he invited Angry Friend and I decided to be civil towards her.

At the reunion we were civil towards each other and after a lot of wine flowed she came to chat with me and asked about everyone in my family - it ended up being a one way discussion because by now she had fought with everyone in her family and alienated them all - I kid you not! She only had her daughter, then studying at the same Varsity as my son, Charles. I felt sorry for her, and had consumed way too much wine and so I decided that bygones were bygones and to get over myself.

Shame, after-all she had no one and I had a big family and lots of friends, surely I could open my heart and forget about the past - Good deed Number One.

How innocently we set ourselves up for disaster!

Property Scam - Please be careful

2009-09-30T06:59:00.000+02:00

There is currently a group of people "buying" property who are running a scam, we are not sure what the final result of the scam is because we have been fortunate to smell a rat before they could complete the con.

The people we have dealt with are all foreign males but I'm sure that they come in all shapes and sizes. They approach us with a cash offer on a house, they seem to be very keen buyers not bothering to negotiate. They then insist on getting a copy of the offer to purchase but are not prepared to hand over their FICA documents or they supply forged letters.

Please be very careful, we are not sure why they are doing this! It seems the big thing is getting the offer.

Property Market Trends - Mortgage Bonds

2009-09-26T13:14:00.002+02:00

There are signs of life returning to the property market, or green shoots (the new media buzz word). With the falling interest rates and the easier entry into the market (lowering of deposit requirements) there has been renewed interest and we are starting to see an increase in sales.

The banks had taken the opportunity of a quiet market to renegotiate their contracts with the bond originators and it seems there has been a power shift from originators (squeezing the bank's rates to as low as 4% under prime) to the banks dictating rates of up to 4% above prime.

Since 2005 the banks have steadily lost business to the originators, as the chart below shows the banks hardly granted any bonds (directly to customers) by end of 2008. This gave the originators the upper hand and they also squeezed the banks for commissions of up to 2.5%, which resulted in the banks paying the originators billions per year! These billions ultimately came from customers in fees and charges.

The banks have now renegotiated the originator's commission down to around 1.5% and are aggressively encouraging clients to approach them directly for bond finance at a rate lower than the originators can negotiate.

I hope that once the banks start feeling the benefits of the increase in revenues from interest rates above prime and lower commissions to originators they will give some back to their clients in the form of lower bank fees and also in lower bond rates!

Remember all these costs were shifted on to us as consumers in the form of admin fees and bank charges!

Source: Financial Mail

Property: House up for grabs in Sudoku competition

2009-09-26T11:44:00.005+02:00

Struggling to sell your house?
I found this article on the Internet and I do believe it is true and I also think it is legitimate, I am just not sure what the legal requirements are for foreigners to buy property in the UK and would advise any foreigners to first inquire before spending the £50.

A 49 year old finance broker, Dave Mackie from Hambleton near Blackpool, is looking to raise £700,000 by getting 14,000 people to enter the Sudoku raffle for £50 each. The money collected in entry fees would subsequently cover the value of the three-bedroom property, which stands at £675,000, plus £25,000 worth of advertising and legal costs. The winner, who will be picked from the entrants who complete the online Sudoku puzzle, will be announced in February 2010, or when 14,000 people have entered the competition.

He/she will then be awarded the prize of the detached red-brick property, which is situated in large grounds on the Lancashire coast. The home, located on the banks of the River Wyre, boasts landscaped gardens to the front and rear, two balconies, three bedrooms, four bathrooms, a sauna and a steam room. The lucky winner will also be able to rent a river mooring if they wish to do so.

Mr. Mackie said: "There's no catch. I'm looking to retire abroad and the time has come to move on. I thought this was a fun way to get rid of the old house and beat the credit crunch." Mr. Mackie admitted that he is a puzzle fanatic himself, before going on to explain that because he will be 50 later this year, he felt it was time to review his life. "I have properties in Egypt and have considered living there for some time," he said. "I don't believe anyone has ever set up a Sudoku competition to sell their home. This way everyone's a winner. The lucky person gets the house free from any mortgage and I get its market value."

Mr. Mackie bought the house back in the mid 1970s. In 2008, he installed new windows and built two balconies, a sauna and a steam room, at a cost of £200,000. Anyone looking to enter the competition for a chance to win the property needs to visit http://www.win-free-home.com, solve the Sudoku puzzle, and pay the £50 entry fee. Entrants will then receive a unique entry number.

All entrance fees are being held in a bank account which has been opened specifically for the competition, and will be independently audited. If 14,000 people have not entered the raffle by February next year, one of the entrants will be awarded the competition fund as a cash prize.

This is the most imaginative way of selling your house I have come across! I am hooked on Sudoku and must say I am very tempted!

Please leave a comment if you decide to enter this competition.

Source: PropertyIndex.com

Jo'burg is pregnant!

2009-09-20T15:07:00.005+02:00

If every I have seen a pregnant city it must be Jo'burg! You can't travel 2 km without running into roadworks of some kind.

It started with the Neotel cables which were installed in all the main roads late last year. Sold to us as "Best thing that is about to happen to us - reliable and fast Internet from June 2009 and apparently it will be much cheaper." I can't say that I have really noticed a huge difference, it certainly has not become cheaper yet - I live in hope!!

I have just been away for a week's leave to Badplaas (sign of the economic times - a year ago I went to Vietnam for 2 weeks!) and driving back into Jo'burg last week just highlighted it again. I wonder about the planning around this upgrade of the infrastructure, having been a project manager in my previous life (Rand Merchant Bank IT division), we were taught to plan maximum utilization of resources with minimum disruption of current operation. What they seemed to have done is decide which roads need to be worked on and sent a crew to each road, which has now resulted and massive road works all over the city and major traffic jams and at times gridlocked intersections! I wonder if we will just wake up one day to find that all the construction has been completed and all the crews and their machines have disappeared together???

Meanwhile during this time please follow these tips:

Observe warning and caution signs before entering a construction zone and until you see the one that says you've left the work zone.
Turn on your lights to make your vehicle more visible.
Expecting the unexpected is a golden rule when traveling through construction zones.
Avoid abrupt driving manoeuvres.
Always be aware that vehicles ahead of you may stop unexpectedly and maintain a safe following distance. Rear-end collisions are one of the most common types of construction zone accidents.
Drivers should slow to the posted speed and move to the proper lane as instructed.
Keep -up with the traffic flow. Motorists can help maintain traffic flow and posted speeds by merging smoothly and not slowing to "gawk" at road work and equipment and crews.
Obey road crew flaggers! The flagger knows what is best for moving traffic safely in the work zone. A flagger has the same authority as a regulatory sign, so you can be cited for disobeying his or her direction.
Don't wait until the last minute to merge to the correct lane and use correct merging techniques when changing lanes – use your indicators. Narrow lanes and restricted shoulders make construction zones a common place for lane-change accidents.
Stay alert for aggressive drivers. If another motorist is aggressively jockeying for position, drivers should let them move on. Challenging another driver encourages road rage and endangers the safety of other motorists and workers in the area.
Avoid distracting activities. Remaining alert for unexpected hazards is critical when traveling through construction zones. Talking on a cell phone, tuning the radio, eating, reading, or other similarly distracting activities can quickly lead to an accident.
Watch for construction equipment and workers. Construction equipment entering and exiting a work zone without warning, equipment extending into traffic, and construction crews and flaggers working dangerously close to moving traffic are a few of the hazards to expect.
Stay alert for obstacles and debris. Construction equipment, signs, and barriers may be located close to the edge of the roadway. Debris from work projects, especially dust, dirt, and gravel, may cause added disruption.
Be patient, cautious, and courteous. Remember, the work zone crew members are working to improve the road and make your future drive better.

Ask any pregnant mom how difficult pregnancy is and she can write a book about nausea, swollen feet, not being able to sleep, being uncomfortable, being emotional and irrational, etc. Then ask the mom of a one year old about being pregnant and she will tell you what wonderful and special time it was in preparation for the joy of having this cute child and that it went by in a blink.

I do believe that we will be very thankful when this is over and that we will soon forget the frustrations of this time. I sincerely hope that new improved roads will be worth the wait and frustration during this time!

I'm Back!

2009-09-20T14:26:00.007+02:00

I am very embarrassed about my absence from my blog!

I have been studying for my NQF4 - Real Estate and trying to make money in a very depressed market. After I got the fabulous news that I passed my NQF4 I took time off to relax, but now I am back again, hopefully in a better market!

For those of you who don't know what NQF4 - Real Estate is, let me explain:
I completed my POE (Portfolio of Evidence) for my RPL (Recognition of Prior Learning) for my NQF 4 - Real Estate (Don't know what NQF stands for but NQF4 is equal to matric). New legislation is forcing all current estate agents to qualify before 2011, I got a bursary (it costs R9000, not sure why it is so expensive - all you get is a file with all the questions and assignments and a two day lecture of how to put it all together - no answers!) and if I didn't meet the deadline I would have to pay back the R9000 and then pay another R9000 or more when I do it later.

I think it is a good thing to raise the bar for this industry (hopefully we'll improve our reputations) but I think someone has started another gravy train, the assessors get R300 per portfolio they mark so the average cost of the whole thing is about R1000 per person, how do they calculate R9,000 per agent?

Please don't get me wrong I am very happy about this, because it does mean that it will now be recognized as a profession and not something bored housewives do when they need a bit extra cash to pay for the next trip to Disney World. The current entrance requirements are NOTHING, you can walk into an agency, register as a candidate agent and start selling houses - the only restriction is that you are not allowed to sign a contract (so you don't even have to be literate!), you must have a full agent with you when signing an offer or mandate, but 12 months after you registered you automatically become a full agent and can even open your own agency!

No wonder people don't trust estate agents! I am amazed at how many of my colleagues don't have matric, this has now come to light because you have to either submit your certificate or do an extra 2 modules. If I had completed my B.com degree, it would have only cost me R750 to get exemption. I am intrigued about all this money, how are "they" calculating it and who and where are "they" and can't I sell "them" some property to invest the R400m "they" are making out of this! Remember there are currently about 40,000 registered agents in SA.

It seems the hard times in the property market are over and things are finally starting to improve! I am currently working on 7 transactions which are in different stages of the process, two are past delivery of guarantees which is close to conclusion, two waiting for bond grant and two very good prospects but low offers waiting to be accepted.

The last one I literally hatched, I have been working on it since November - sold it to 4 different buyers and twice to the current buyer! I'm amazed at the willingness of SA Homeloans to take a bath on this one instead of granting a 100% bond to a guy who has an excellent credit rating etc. They are now taking a R110,000 loss up front instead of R50,000 and the extra interest they could earn over 20 years. But I have always said these guys are given a "recipe" of how to grant a bond and are not taught to think out the box and do the calculations a little bit differently. But I am not complaining because at least they are starting to grant bonds again!

It seems the properties that have been on the market forever are now disappearing but at bargain prices - so if you are considering buying an investment property - now is the time and if you have been trying to sell be prepared to get an offer lower than your lowest threshold!

The impact of lowering interest rates

2009-05-29T00:13:00.001+02:00

I have noticed a drop in "new" homes coming on the market, or in our technical terms new listings, over the last month or two.

My conclusion from this observation is that because the interest rates have dropped significantly it means that people are getting back to a point where they can start covering their bond repayments again and are thus not being forced to sell their homes. Some analysts argue that it could be the influence of the change in seasons, but I don't believe that the winter could have such a profound change in a market so deep in recession. There is still a huge oversupply of homes for sale on the market and thus many bargains still remain unsold, but I believe that the supply will now start shrinking slowly as the bargains start disappearing off the market.

As for the demand for houses, I do think that the demand is slowly starting to rise as a result of the drop in interest rates which makes the bond repayments more affordable plus the fact that the house prices have dropped by between 10% and 20% over the last couple of months. There is still the serious problem of not qualifying for bonds or not having enough cash for the deposit which keeps the demand very low. However, I have met with quite a few clients over the last couple of months who have decided to first get their financial matters sorted out before venturing into the property market. Most of these people sorting out their financial will be ready to start buying by around October 2009, which will hopefully indicate the turning point in the market. We can only determine a turning point in a market months after it occurs and we have collected the statistics and done the analysis.

So in conclusion, if you are looking to buy a bargain property it is now time to focus and to start making a short list of the properties you like and to start applying for your mortgage bond. Or if you are thinking of selling your home - please postpone this until 2010 if at all possible, because by then the supply of homes will have shrunk and the demand would hopefully have caught up to the supply again.

Thank Goodness for another cut in interest rates this week!

Free will?

2009-05-28T07:15:00.002+02:00

Over the last couple of month I have seen a number of TV ads offering a variety of "free" financial and legal services. Included in some of these is a Free Will.

I have learnt over the years that you rarely get anything for free especially from the financial sector. A free will can sometimes be a very expensive purchase! As far as I understand the financial institution writes up your last will and testament for you for free but you are then forced to make them executors of your will and this allows them to claim their fees against your estate. These fees are a usually 3.99% of the GROSS assets in your estate, now this amount does not sound too much but the problem is that it is calculated on the gross assets and not nett assets.

You thus end up in a situation where you buy a house for R1,000,000 and then die within the first year of buying the house, which means you owe R1,000,000 and thus the nett value of this asset is R0 but your executor still has a claim of R39,000 from your estate for executors fees. Far from free in my book! You should then also receive the life insurance payout of R1,000,000 to pay off your bond - does the executor claim another R39,000 from this amount as well? Probably.

Please ask about any "free" service offered to you by a financial institution and read the fine print carefully. It is your right to ask questions if you don't understand and please don't sign until you understand what you are committing yourself or your estate to.

You can appoint anyone to act as executor of your estate and it is a good idea to find the most competent person you know to do this, please also consider your attorney or accountant when making this decision. People typically do not negotiate executors’ fees upfront, but rather leave surviving family members to deal with this issue after death – if at all. Most executors will only consider a reduced fee if requested by the beneficiaries, who are at that stage going through a difficult time. It is better to negotiate this upfront and the negotiated fee should then written into the Will which binds the executor.

The real cost of buying a house

2009-05-22T10:56:00.006+02:00

Buying a house is probably the most important investment you will ever make. Apart from the purchase price of the house, there are several other linked, once-off costs which, if you have not budgeted for them, can come as a nasty surprise, it is always wise to work it into your overall financial plan before taking the plunge. This way you’ll also know first-hand what it is that you can afford, keeping in mind that the banks no longer grant 100% mortgages, so buyers need to have a deposit of up to 20% of the purchase price and the buyer also has to pay the costs of registration.

Below please find an example of the costs involved in buying a house for R1 million and the a house for R500,000 - please note that these are only approximate costs.

Example 1: Purchase Price of R 1,000,000
20% Deposit R 200,000

Transfer Costs
1. Transfer Duty to SARS R 25,000
2. Conveyancer Fees R 10,000
3. Postages & Petties R 425
4. Deeds Office Transfer Levy R 500
5. Electronic Document Generation Fee R 111
6. Deeds Office Search Fee R 91
7. Local Council Rate Clearance R 150
8. FICA R 400
9. VAT R 1,500
= Total Transfer Costs (approx) R 238,177

Bank & Bond Cost on a R 800,000 bond
1. Deeds Office Levy Fee R 500
2. FICA R 300
3. Attorney Bond Registration Cost R 5,800
4. Postages & Petties R 325
5. Electronic Generation Fee R 111
6. VAT R 900
= Bond Registration Costs (approx) R7,936

Total costs (approx) R 246,113

Example 2: Purchase Price of R 500,000
10% Deposit R 50,000

Transfer Costs
1. Transfer Duty to SARS R 0
2. Conveyancer Fees R 6,000
3. Postages & Petties R 425
4. Deeds Office Transfer Levy R 400
5. Electronic Document Generation Fee R 111
6. Deeds Office Search Fee R 91
7. Local Council Rate Clearance R 150
8. FICA R 400
9. VAT R 900
= Total Transfer Costs (approx) R 8,477

Bank & Bond Cost on a R 400,000 bond
1. Deeds Office Levy Fee R 340
2. FICA R 300
3. Attorney Bond Registration Cost R 3,400
4. Postages & Petties R 325
5. Electronic Generation Fee R 111
6. VAT R 580
= Bond Registration Costs (approx) R1,656

Total costs (approx) R 60,133

Other Costs
Next you need to budget for the physical move, on average the cost of moving your furniture within a 100km radius will amount to around R10,000. Another small cost to bear in mind is an electricity connection/registration fee.

Monthly expenses that need to be budgeted for include:
1. Monthly repayments on the bond: At the current interest rate of 12%, the monthly repayment on a bond of R800,000 will be around R8,800 pm or on a bond of R400,000 will be around R5,000 pm.
2. Bond Monthly Admin Service Fee: R30.
3. Home-owner’s insurance: Banks normally add this to the mortgage amount to protect themselves against claims for flood, fire and hail damage.
4. Insurance on the owner’s life: This is to cover the cost of the house in case of death. The policy will not only cover the outstanding loan amount to the bank, but will also ensure that at the time of death the home-owner’s dependants have a roof over their heads. Life cover insurance may vary from service provider to service provider.
5. Rates and taxes: Due to the municipality for rubbish removal and the maintenance of your area.
6. Electricity and water: Due to the municipality for your monthly consumption of electricity and water.
7. Monthly Levy: In the case of a sectional title, fractional title, share block or life rights scheme.

Properties in Possession (Repossessed homes not sold on auction)

2009-04-05T21:18:00.003+02:00

Definition
A bank repossessed property is a canceled home loan agreement as a result of the borrower defaulting on agreed installments. Legal action is instituted by the bank's attorneys and a judgment is obtained against the defaulter from the High Court. The property is then attached and the Sheriff then sells the property at a sale in execution. If the bank’s reserve price is not achieved at the auction, the property is bought into possession. (If you want to learn more about this also Google REO - Real Estate Owned, which is the American term for this property class.)

It is an ideal time for those looking for a home to investigate this source of properties for sale. There is an oversupply of houses for sale in South Africa and it is a very good idea to if properties in your area of choice is on the banks' PIP lists. The media can sometimes be a bit misleading with reports of 500 homes on a bank's PIP list, this means there are 500 properties in the whole of South Africa, which often means not one in your area of choice.

Advantages of buying a bank repossessed home
1. No transfer duty is payable by the purchaser, if you are a non-VAT vendor. The purchaser does have to pay the transfer costs also known as conveyancing fees and the bond registration costs.
2. Property rates and taxes (including all arrear amounts in this regard) will be paid by the bank in question until the date of registration. (Properties bought on Auction - purchaser "buys" all arrear levies, rates & taxes).

Disadvantages of buying a bank repossessed home
1. All properties are sold "voetstoots” and the banks will not undertake any repairs.
2. The Electrical Compliance Certificate (ECC) is to be obtained by the purchaser and costs of repairs will be at the purchasers expense.
3. The banks do not guarantee vacant occupation of the properties being sold, and purchasers will have to obtain vacant occupation at their own cost. In my opinion, walk away if the property is occupied, in South Africa we have something called the PIE Act (PREVENTION OF ILLEGAL EVICTION FROM AND UNLAWFUL OCCUPATION OF LAND ACT) which has cost many property investors dearly - please consult your estate agent and/or attorney before taking this type of risk.

The procedure is quite simple
1. Complete the specific bank's offer to purchase (available from their websites).
2. Attach all the relevant information to the offer, copies of ID, payslips, bank statements and proof of residence.
3. If your offer is not a cash offer you will be able to apply for a bond from the relevant bank. Remember you still have to have the 10% to 15% deposit and you will have to be able to cover all legal costs and the bank will expect you to produce proof of these funds.

FNB and Alliance Auction Group have started a clever initiative called Quicksell Properties where FNB is still prepared to give the purchaser 100% loans for a list of properties on their PIP list. But terms and conditions apply, I can't find any reference of these terms and conditions on either website and so I would advise you to ask for a copy of these terms and conditions before committing to anything.

Warning
You are advised to consult the relevant Deeds Registry Office for accurate information pertaining to a particular property, such as size, endorsements, servitude etc. The Bank will not be liable for any losses of whatsoever nature incurred, as a direct or indirect result of the use of the information on this list.

All users of these list do so at their own risk!

Please take heed of this warning and ask your estate agent and/or attorney to help you before taking the risks involved in buying this kind of property.

I do have copies of the latest PIP Lists for the banks and will be happy to send them to you, just let me know.

Some of my Internet Favourites

2008-12-16T09:44:00.008+02:00

Garden Care - People who have the privilege of owning and tending a piece of land or garden earn with that privilege a significant responsibility. They are, after all, custodians of the environment not only for themselves and their families and friends to enjoy, but also for the generations of people, animals and organisms that follow. This website is there to provide the necessary information for you to make the right choices in caring for your garden with no or minimum adverse effects to your health and the environment.

Divine Caroline - Life in your words. Many of the stories on this site are written by members like you. Serious. Funny. And everything in between. Just like life.

Spiders in your garden and Pesticides

2008-12-01T05:27:00.003+02:00

Spiders prey on many insects, including various moths, gnats, flies, mosquitoes and ants. Popular plants for attracting spiders in the garden are dill, cosmos, daisies, marigold, spearmint and caraway. I have found that plectranthus planted as a groundcover and agapanthus as fillers below and around trees are a popular choice for spiders, especially the nursery web spider, looking for a home. Plectranthus and agapanthus hardly ever shows evidence of destructive insects and therefore needs no spraying. Snails and slugs sheltering underneath can be controlled by hand or with baits. Once plectranthus and agapanthus have covered a planted area, you will hardly ever need to walk there and the spiders can be left undisturbed to silently prey on insects. Unfortunately, however, those insects are not always unwanted insect pests, but also beneficial insects.

There are quite a few poisonous spider species in South Africa but they all play an important role, especially in the garden and natural habitats. Spiders are generally excellent predators of various insects. Some might wait patiently on flowers for their prey, others chase after their prey and many build special webs that do the catching for them. Crab spiders, jumping spiders, nursery web and fishing spiders, funnel weavers and grass spiders, orb-weaver and cobweb spiders and wolf spiders are some of the species to look out for, and protect, in your garden.

When the lawn is covered in early-morning dew, I often find lace-like networks of spider webbing reflecting in the sun. What would happen to these spiders if the lawn was sprayed with a broad-spectrum insecticide to kill off lawn caterpillar? Without doubt, both the lawn caterpillar and the spider populations would be destroyed. Biological insecticides containing the bacterium Bacillus thuringiensis var. kurstaki can be used to control young active feeding larvae of lawn caterpillar with no harm to spiders, birdlife or any other beneficial organisms.

Avoid the use of most chemical insecticides containing active ingredients such as chlorpyrifos, mercapthothion, fenitrothion, carbaryl, deltamethrin, cypermethrin, bifenthrin, permethrin, d-phenothrin, tetramethrin, gamma-BHC, diazinon, alpha cypermethrin, cyfluthrin, propoxur, to name a few. Organic insecticides containing natural pyrethrins, nicotine, potassium salts of fatty acids and canola oil should be avoided where direct contact of spiders is possible. Canola oil and fatty acids will only harm very small-bodied spider species on contact. Spider species are unlikely to be repelled by insect repellents such as garlic juice extract formulations used to dissuade unwanted insects from landing on plants under protection in the flower, herb or vegetable garden. Biological control formulations containing Bacillus thuringiensis var. kurstaki and B. thuringiensis subsp. israelensis are completely harmless to spiders. Chemical insecticides containing pyriproxyfen should also not harm spiders. Most chemical and organic fungicides available in the home garden will not adversely affect spiders unless the label indicates toxicity. This includes fungicides containing mancozeb, chlorothalonil, copper ammonium acetate, plant organic acids and procymidone microbial formulations containing Trichoderma.

Commercially available insecticides authorised for use in organic farming and which are unlikely to cause harm to spiders include Margaret Roberts Biological Caterpillar Insecticide, Margaret Roberts Biological Mosquito Insecticide, Dipel DF and Vectobac WG. Insecticides which should have minimal or no effect on large spider species, at recommended dosage rates for small-bodied insects such as aphids, include Vegol, Margaret Roberts Organic Insecticide, Neudosan and ECO Insect Control. Fungicides include Margaret Roberts Organic Fungicide, Copper Soap and other approved copper and microbial formulations.

To learn more about spiders we start by having a closer look at crab spiders, a very important group of spiders found in the home garden environment which should be protected.

CRAB SPIDERS: The crab spider's first two pairs of legs are very long compared to its back two pairs. Crab spiders are flat-bodied compared to other spiders and get their name from their habit of holding up their front legs to resemble a crab with claws. They vary in colour from very bright yellow, orange or green to darker colours with grey and brown patterns. Most crab spiders do not live for more than a year. Hundreds of eggs are laid by the female in autumn and the offspring hatch in spring.

Most crab spiders ambush their prey after sitting patiently and motionless on flowers, leaves, fruit or other spots frequently visited by flying insects such as flies and bees. Many are well-camouflaged and blend in with their surroundings. Crab spiders can walk in all directions with ease!

Even though crab spiders prey on beneficial insects such as bees, they also feed on various fly species, adult mosquitoes, moths and many other insect pests. Even though research has found that the venom of crab spiders is more potent than many other spiders due to its ability to paralyse insects very quickly, they are not considered to be dangerous to humans. However, some larger species can bite humans and it is therefore best to leave them undisturbed and rather allow them to carry on hunting for their next meal. The most common crab spiders found in the garden are the flower spider (Thomisus sp.), common green flower crab spider, two-spotted crab spider, and the 'bont' flower crab spider (Thomisus citrinellis).

Enjoy the hot summer months and remember this is the time to safeguard our many biodiversities found in gardens. Information taken from "The Garden Guardians's guide to environmentally-responsible garden care".

Source: Gardening Eden

What's on in Jo'burg

2008-11-30T12:30:00.021+02:00

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!

2008-11-23T12:56:00.005+02:00

Zimbabwe - who will come to their rescue?

2008-11-23T11:18:00.005+02:00

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

2008-11-17T04:34:00.001+02:00

(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!

2008-11-16T12:24:00.014+02:00

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…

2008-11-16T08:58:00.006+02:00

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

2008-11-16T08:40:00.010+02:00

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

2008-11-09T19:59:00.004+02:00

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

2008-11-09T17:21:00.003+02:00

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!

2008-11-09T16:50:00.005+02:00

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?

The property market has gotten even worse internationally.
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.
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:

I've had at least one sale per month since I started with RE/MAX, of which only two have not qualified for finance.
I seem to be working even harder but it's starting to get a bit smarter too.
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

It's July!

2008-06-29T11:35:00.003+02:00

Wow, the first half of 2008 is over!

What happened?

Did I blink?

What year it has been so far. Like a roller coaster, very much like the property market. I don't know why but working for yourself as opposed to receiving a monthly salary makes the time fly by faster. I think because you are so busy trying to fill gaps that you don't have as much time as you do when your budget actually balances when the bills come in.

Why am I doing this?

2008-06-27T00:33:00.003+02:00

I have been toying with the idea of writing a blog for a couple of months now and the scary thing about a blog is the commitment a person must have to keep it current, interesting and up to date.

The thing that pushed me over the edge was all the bad news that we are being bombarded with lately. I honestly don't believe that things are as bad as people are telling each other and I plan to find positive subjects to write about.

I think my motivation is the fact the I left the safety of working for a big investment bank to start a career in real estate against many people's advice. I have now been doing this for 2 and a half years and although I have earned substantially less than I would have had I stayed in banking!

I absolutely love my new career and feel that for the first time in my life I have control and am free to do what I want to do.

My new motto, which I am borrowing from Cheryl Richardson is:

"Work Hard,
Have Fun,
No Drama!"

Caroline at Home

Property Clock

Property - “VOETSTOOTS” ? Does Silence Constitute Fraud?

My Dad - Goodbye

Do we care enough? Have we given up?

My Dad - Education, graduation and childhood

My Dad's history

I'm still here!

No good deed will go unpunished! (part 2)

Charles - how will I miss you?

Property - The beauty contest has started!

No good deed will go unpunished! (part 1)

Property Scam - Please be careful

Property Market Trends - Mortgage Bonds

Property: House up for grabs in Sudoku competition

Jo'burg is pregnant!

I'm Back!

The impact of lowering interest rates

Free will?

The real cost of buying a house

Properties in Possession (Repossessed homes not sold on auction)

Some of my Internet Favourites

Spiders in your garden and Pesticides

What's on in Jo'burg

Art Exhibition and Sale

Walter Sisulu Botanical Garden

Open Day At Roodepoort Museum

Thami Mnyele And Medu Art Ensemble Retrospective Exhibition

When Life Happens: Art Exhibition At Museum Africa

Business Opportunity

The Von Memertys - A Celebration

Rod Steward In Jo'burg

You are invited!

Zimbabwe - who will come to their rescue?

Homeloans as an investment

Real Estate Investment is not for sissies!

The seven do’s of healthy lawns…

What's on at the Botanical Garden

Pick n Pay presents Christmas Carols by Candlelight

Mortgage Originators - My Opinion

Buying Real Estate in South Africa for Non-residents

This is embarrassing!

It's July!

Why am I doing this?

Pick n Pay presents
Christmas Carols by Candlelight