perty

JOHNSEN  REAL ESTATE


FOR FARMS, SMALLHOLDINGS, DEVELOPMENT LAND, HOUSES ,BUILDING PLOTS
IN THE WESTERN CAPE PROVINCE, SOUTH AFRICA
ESTABLISHED 1983

 

PROPERTY NEWS
 

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NOMINATION OF THIRD PARTY BUYER

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 corporation

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 transfer duty

 

 

" The sign of the times "

028 2549400 / 082 8944072

PROPERTY BOOM!?

IS THERE A BOOM OR A BURST BUBBLE?

IS YOUR PROPERTY VALUED CORRECTLY?

Are you shooting yourself in the foot by pricing yourself out of the market?

Are prices outstripping afforability?

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 property investments.

 

LAND EXPROPRIATION
(no cause for concern, says experts)

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.
The 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. HOWEVER.....

The 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 market.

 JOHNSEN REAL ESTATE does not condone or partake in the  "Quote system ", but we rather give a fair market valuation based on realism.
 

 

 

LINKS TO OTHER WEBSITE

For an excellent interpretation of this new  property laws go to
http://www.deneysreitz.co.za

and

www.rode.co.za

for market trends in the South African Property Market

OTHER LINKS

Supply ,demand and affordability

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 prices.

 


      Johnsen Real Estate 2003             Website and Photography:   Anthony Meldal-Johnsen