JOHNSEN REAL ESTATE
FARMS, SMALLHOLDINGS, DEVELOPMENT LAND, HOUSES ,BUILDING
IN THE WESTERN CAPE PROVINCE, SOUTH AFRICA
NOMINATION OF THIRD PARTY
The old law of 1948 is now back in force where a
buyer must nominate a nominee buyer within 24 hrs of securing a property.
This is apparently to stop re sale at a
higher price without declaring
the second sale, thus avoiding transfer duty on the higher price. If you
intend to buy a property in an entity other than your own personal name
after signing the deed of sale then it is suggested you contact your
advisor who can give you the proper wording on the contract.
Transfer duty for change of interest in close
Buyers please note that if there is a change of
interest in a Close corporation of a business then there is no transfer
duty if the business interest is sold a s going concern in which all
parties are VAT registered. If however the interest of a private
property such a s a dwelling which is registered in the name of a Close
Corporation the the transfer of interest is subject to the normal
The sign of the times "
028 2549400 / 082 8944072
IS THERE A BOOM
OR A BURST BUBBLE?
IS YOUR PROPERTY
Are you shooting
yourself in the foot by pricing yourself out of the market?
The reality is
that money lenders are becoming stricter and interest rates may
increase. The Rand remains fairly strong and it is unlikely to drop
again to the 2000 2001 level which caused a flush of foreign investors
to off load foreign currency into property transactions in South Africa.
There are other
indicators like the economy in the USA which is not so "Rosie" and this
affects the South African property market indirectly. Consumables are on
the ever increase and there is less money to spend on housing and
(no cause for concern, says
There has been recent exposure on the
proposed amendments to the Restitution of Land Rights Act and the Communal
Land Rights Bill. This has given rise to speculation on the possibility of
land grabs in South Africa and the abuse of power in land expropriation.
With a nervous eye on land invasions in Zimbabwe, some South African
farmers have geared themselves for a legal battle, but legal experts say
that the Land Rights Amendment Bill posed little reason for concern. In
fact any measure to expedite land reform was exactly the right way of
avoiding a Zimbabwe situation.
"In Zimbabwe, that government abuses the law, courts are corrupt and
there is a collapse of democracy . The South African Government has gone
out of its way to follow an orderly and legal process." says Edward
Lahiff of the University of the Western Cape. UNISA's Law Professor,
Jeanie van Wyk believes that South African property landowners are
adequately protected by the constitution. The government is legally bound
to fair administration and property owners had recourse to the courts.
amendment clearly requires that the minister may only expropriate land for
the purposes of awarding the land to claimant who is entitled to the
restitution of the right in land. More than that, it requires that the
expropriation must be in terms of the section which requires that the administrative
action of the minister be procedurally fair and parties must receive
adequate notice and be able to make representation in regard to that
action. Should the minister act outside of the objectives and constraints
of the legislation, any such action may be subject to judicial review.
COUNTRY PROPERTIES AND
REAL ESTATE PRICING
There is a huge demand for country properties in
South Africa at present. What is driving the market? . Our market is stabilized by our Governments
approach to Land Reform and an orderly transfer of land by private treaty
acquisition between a willing buyer and willing seller. The methods used
are by joint venture, public private partnerships, mentor supervision and
private investors investing in our country to stabilize the situation.
South Africa is not at war with any other country and is therefore
perceived to be a safe destination by private investors, and tourists.
sales have slowed down in the first quarter of 2005 compared to 2004 when
sellers experienced a rush on property in general. This rush caused yet
another "yo-yo" effect encouraging sellers to increase their listing
prices to an all time high and resulting in unrealistic expectations,
with the result that properties listed too high have now been forced to
drop if the sellers are serious sellers, SOMETIMES RESULTING IN A DROP
SO LOW THAT IT IS BELOW REALISTIC MARKET VALUE.
Some sellers have
EVEN resorted to a
so called "QUOTE" system whereby various agents are requested to give
the sellers a "quote" on their selling price. Usually the agent with the
highest " Quote" gets the sole selling mandate but sadly this does not always work out
for the seller because he might be pricing himself/herself out of the
JOHNSEN REAL ESTATE does not condone or partake in the
"Quote system ", but we rather give a fair market valuation based on
LINKS TO OTHER WEBSITE
an excellent interpretation of this new property laws go to
for market trends in the South
African Property Market
Supply ,demand and
The current situation is that there are more
buyers than realistically priced sellers in the country districts.
Buyers with money are opting for a quieter lifestyle in the country,
whether it be a farm, smallholding, seaside cottage, house in a country
town or a smallholding at the riverside. Despite the demand for rural
property, sales are slow because the sellers are usually too high in
price and the buyers cannot afford such high prices high
Real Estate 2003 ©
Website and Photography: Anthony Meldal-Johnsen ©