Weird and worrying rate increase proposal

According to News24, a proposed amendment to the Municipal Property Rates Act will see rates on rental properties levied at business rates rather than residential rates. I don’t have all the figures, but from the examples given this could be a tripling of rates in some cases, taking rates from less than half percentage yield […]

Interactive house price data (including South Africa)

The Economist has a brilliant interactive chart showing nominal house price growth across a range of countries, including South Africa. It’s clear, as we already know, that South African house price increases have been dramatic. Somehow though, seeing it on a graph with a range of other countries brings it into sharper focus. Our property […]

Risk, liquidity and the triumph of economics over alchemy

Sharemax appears to be spiralling to its doom. Multiple stories today report that they are late on dividend payments to investors and may not be able to pay dividends in the forseeable future. Cash has run out. The overvalued, over-geared properties cannot support the income stream that was demanded from them. No surprises here then. […]

Property investment – the value of data over opinions

Lightstone have a trick up their sleeves. Their raison d’ĂȘtre is collecting, analysing, understanding and packaging data for themselves and others to use to understand past, current and future property valuations. Their housing price index is more robust (and more independent) than those of the banks based off their own data and target markets. Rather […]

Is South Africa sheltered or delayed?

The South African Reserve Bank today lowered the REPO rate by a further 50 basis points, down to the level last seen in 2005 and the lowest the REPO and BA Rate have been in nearly 3 decades. Surveys leading up to the announcement and analysis of market interest rates suggests that the expectation was […]

Rudie still trucking and ducking?

photo credit: johnnyalive A reader has some news, potentially about Rudie Visagie and another Rudco-style plan. Neither I nor the reader are sure about the details yet, but the story sounds all-too-familar. I read your article on the web when i googled Rudy Visagie. How very interesting to note all concerns people are having about […]