Just negotiated my new lease with my landlord: a 5% increase. I know we’re going into deflationary territory (maybe), but given that I had no increase last year I don’t feel too ripped off giving the poor guy a little lift now. 2.5% a year for two years ain’t bad for a 100m2 art deco pad in Tamboerskloof, 5 minutes from Camps Bay and the World Cup stadium. So much for the much-vaunted City Bowl shortage...
I had a good laugh reading the previous thread,the thought of all those people thinking they are coming to 'Africa' where of course the sun shines every day, having lived in Cape Town for many years I well remember the ferocity of the June and July storms.They will never have experienced wind speeds like a full blown Cape winter storm !
Just negotiated my new lease with tenants in my Claremont flat: a 12% increase on top of last year's 9%. I also think that I am not too ripped off. Problem is, thats just me (and Beancounter) - our individual experiences say nothing about Cape Town’s property market as a whole and certainly cannot be used to gauge the market. It is clear from economic indicators and property stats of the last four months that the credit crunch definitely did not affect it as much as it did the UK and USA. Also, there are areas that has in fact not had ANY real property price decreases and indeed nominal increases throughout all of the credit scare, new credit act and interest rate hikes.
I agree - its going to be fun when Cape Town's winter storms hit the crowds. But it makes sense for the other parts of the country to have it at that time of the year.
Amazing how the global warming/human effect hoax came out barely a month or so after we discussed it here. I must say, when I wrote that it is such garbage, I could not have ever thought that there were so much deceit and lies behind all of it. Talk about Copenhagen (Hopenhagen?) Long live the greenies! Be it without proper info...
Beany- I'm happy for you really. Tamboerskloof is a great area to live, especially if you work in the CBD. But my experience of flat hunting in the Bowl was the complete opposite of yours. I got fucked. Peter is having a great time squeezing his tennants for all they are worth. Who's experience is the closest to the average? I just don't know anymore.
Well Peter it just brings to mind the fact that perception and knowledge is everything...thats a vast difference in increases between you and BC, definitely no market related guidelines exist anymore. Kinda reminds me of the difference between Standard Bank and Absas figures.
Dont know if you have read this article about the source code and comments in the code from the CRU ...visit the article for an explanation of the code if not familiar with the language.
This is an actual snippet of code from the CRU contained in the source file: briffa_Sep98_d.pro
2 ; Apply a VERY ARTIFICAL correction for decline!! 3 ; 4 yrloc=[1400,findgen(19)*5.+1904] 5 valadj=[0.,0.,0.,0.,0.,-0.1,-0.25,-0.3,0.,-0.1,0.3,0.8,1.2,1.7,2.5,2.6,2.6,2.6,2.6,2.6]*0.75 ; fudge factor 6 if n_elements(yrloc) ne n_elements(valadj) then message,'Oooops!' 7 8 yearlyadj=interpol(valadj,yrloc,timey)
I keep on thinking that since climate change is actually upon us why there are no agricultural solutions and food security issues even beginning to be discussed...things which are important? Dont worry, a global tax will sort it all out....lets all jet off to Copenhagen and discuss it on taxpayer money.
Pete, you're definitely not being ripped off: that honour goes to your poor tenants. 21% in two years!? Sounds like you've found the buy-to-let Holy Grail: a trust-fund baby with an IQ of 40.
Benny, I hope I'm not average! That would take all the pleasure out of my little victory over my landlord! I suspect I'm at the bottom end, and Thumbscrew Pete is near the top end. Average somewhere around 6%? Tracking inflation?
All I know is you'd have to pay me - with a 12% annual increase - to live in Claremont. One day South Africans will discover that there's more to life than living in a fortress-dormitory next to a mall. Maybe.
I don't know what is happening with property any more? Many people say its bottomed and its time to buy. I'm taking the gamble for now and holding back.
Regarding rental, I recently advertised my 2 bedroomed semi in Goodwood for R3500. Got more that 40 responses. Most of them wanting to take the place.
I'm just glad that after 4 years my entire bond repayment is being covered by my tennant.
There wasn't THAT much of a bubble in Cape Town. There was a semi bubble, and fear of the bubble in the west, bank failures and overall economic panic. There is no impending black hole like many posters here would like to have everyone believe. There was a lot of cash and assets hanging around in 'post apartheid' SA that caused the housing gold rush leading to a justifiable spike in sales. Don't get me wrong, there was a semi-bubble, but one that will be ridden out successfully with the modified fiscal policy, stabilization in the west, and yes...the world cup.
"You cannot legislate the poor into freedom by legislating the wealthy out of freedom. What one person receives without working for, another person must work for without receiving. The government cannot give to anybody anything that the government does not first take from somebody else. When half of the people get the idea that they do not have to work because the other half is going to take care of them, and when the other half gets the idea that it does no good to work because somebody else is going to get what they work for,that my dear friend, is about the end of any nation. You cannot multiply wealth by dividing it."
A SOMERSET West property scheme that allegedly duped the four major banks into overexposing thousands of investors to about R5 billion rand in bonds, has come under the spotlight in a sequestration inquiry in Cape Town.
That's funny. A property speculator moaning about people not doing any work and supposedly living off the sweat of other's labour. Hilarious. Got any other pearls of wisdom for us Peter?
You really believe everybody should subscribe to your communist ideologies, lazy boy? Sitting around waiting for better days will not resolve your poverty - monetary or otherwise.
Anyway, your blind and biased aversion for property as part of a solid investment portfolio negates any possibility for you to see its value. Your opinion that owning investment property is speculation shows how utterly far off you are. So be it.
Its just a shame that you sit in a place like Cape Town and not be able to see the fantastic value of property at the moment. Great opportunity is passing you by ...
I have done quite a bit of research on banks' property stats and its absolutely grotesque the way in which they are allowed to tweak (read fudge) the data. I am sure that its possible to show some trends, but its clear that these trends are merely in transactional value and has nothing to do with the value of property.
I just cannot understand why the banks continue to use these figures and why so many people attach so much value to these data. Goodness, even the most basic principle of business integrity is violated by them not producing independently audited results - its all done in-house!
Did you know that some banks decide, just based on a trend of a set of data, whether certain values are outliers and then merrily disregard these from their calcs! Unreal ...
Chill out Peter. Never said I was a communist, I merely observed that one of Karl Marx's predictions was coming true. (The poor are indeed getting poorer and the rich are getting richer. I'll send you some credible links if u really give a shit)
What's the dif between buying "investment property" and "speculating"? Please explain.
I'm speculating too at the moment - with precious metals - But I don't have the nerve to pretend I'm doing humanity a great service by making a buck off the dips and rises of a market graph. When the time is right, I'll buy property one day but not now, not in Cape Town.
16 comments:
Just negotiated my new lease with my landlord: a 5% increase. I know we’re going into deflationary territory (maybe), but given that I had no increase last year I don’t feel too ripped off giving the poor guy a little lift now. 2.5% a year for two years ain’t bad for a 100m2 art deco pad in Tamboerskloof, 5 minutes from Camps Bay and the World Cup stadium. So much for the much-vaunted City Bowl shortage...
I had a good laugh reading the previous thread,the thought of all those people thinking they are coming to 'Africa' where of course the sun shines every day, having lived in Cape Town for many years I well remember the ferocity of the June and July storms.They will never have experienced wind speeds like a full blown Cape winter storm !
Just negotiated my new lease with tenants in my Claremont flat: a 12% increase on top of last year's 9%. I also think that I am not too ripped off. Problem is, thats just me (and Beancounter) - our individual experiences say nothing about Cape Town’s property market as a whole and certainly cannot be used to gauge the market. It is clear from economic indicators and property stats of the last four months that the credit crunch definitely did not affect it as much as it did the UK and USA.
Also, there are areas that has in fact not had ANY real property price decreases and indeed nominal increases throughout all of the credit scare, new credit act and interest rate hikes.
I agree - its going to be fun when Cape Town's winter storms hit the crowds. But it makes sense for the other parts of the country to have it at that time of the year.
Amazing how the global warming/human effect hoax came out barely a month or so after we discussed it here. I must say, when I wrote that it is such garbage, I could not have ever thought that there were so much deceit and lies behind all of it. Talk about Copenhagen (Hopenhagen?) Long live the greenies! Be it without proper info...
Beany- I'm happy for you really. Tamboerskloof is a great area to live, especially if you work in the CBD. But my experience of flat hunting in the Bowl was the complete opposite of yours. I got fucked.
Peter is having a great time squeezing his tennants for all they are worth.
Who's experience is the closest to the average?
I just don't know anymore.
Well Peter it just brings to mind the fact that perception and knowledge is everything...thats a vast difference in increases between you and BC, definitely no market related guidelines exist anymore. Kinda reminds me of the difference between Standard Bank and Absas figures.
Dont know if you have read this article about the source code and comments in the code from the CRU
...visit the article for an explanation of the code if not familiar with the language.
This is an actual snippet of code from the CRU contained in the source file: briffa_Sep98_d.pro
2 ; Apply a VERY ARTIFICAL correction for decline!!
3 ;
4 yrloc=[1400,findgen(19)*5.+1904]
5 valadj=[0.,0.,0.,0.,0.,-0.1,-0.25,-0.3,0.,-0.1,0.3,0.8,1.2,1.7,2.5,2.6,2.6,2.6,2.6,2.6]*0.75 ; fudge factor
6 if n_elements(yrloc) ne n_elements(valadj) then message,'Oooops!'
7
8 yearlyadj=interpol(valadj,yrloc,timey)
http://wattsupwiththat.com/2009/12/04/climategate-the-smoking-code/
I keep on thinking that since climate change is actually upon us why there are no agricultural solutions and food security issues even beginning to be discussed...things which are important? Dont worry, a global tax will sort it all out....lets all jet off to Copenhagen and discuss it on taxpayer money.
Pete, you're definitely not being ripped off: that honour goes to your poor tenants. 21% in two years!? Sounds like you've found the buy-to-let Holy Grail: a trust-fund baby with an IQ of 40.
Benny, I hope I'm not average! That would take all the pleasure out of my little victory over my landlord! I suspect I'm at the bottom end, and Thumbscrew Pete is near the top end. Average somewhere around 6%? Tracking inflation?
All I know is you'd have to pay me - with a 12% annual increase - to live in Claremont. One day South Africans will discover that there's more to life than living in a fortress-dormitory next to a mall. Maybe.
I don't know what is happening with property any more? Many people say its bottomed and its time to buy. I'm taking the gamble for now and holding back.
Regarding rental, I recently advertised my 2 bedroomed semi in Goodwood for R3500. Got more that 40 responses. Most of them wanting to take the place.
I'm just glad that after 4 years my entire bond repayment is being covered by my tennant.
Fireman
There wasn't THAT much of a bubble in Cape Town. There was a semi bubble, and fear of the bubble in the west, bank failures and overall economic panic. There is no impending black hole like many posters here would like to have everyone believe. There was a lot of cash and assets hanging around in 'post apartheid' SA that caused the housing gold rush leading to a justifiable spike in sales. Don't get me wrong, there was a semi-bubble, but one that will be ridden out successfully with the modified fiscal policy, stabilization in the west, and yes...the world cup.
This blog is no longer needed. Die blog, die.
@ Anon
Don't write the blog off yet bra. 2010 is going to be VERY interesting times indeed.
"You cannot legislate the poor into freedom by legislating the wealthy out of freedom. What one person receives without working for, another person must work for without receiving. The government cannot give to anybody anything that the government does not first take from somebody else. When half of the people get the idea that they do not have to work because the other half is going to take care of them, and when the other half gets the idea that it does no good to work because somebody else is going to get what they work for,that my dear friend, is about the end of any nation. You cannot multiply wealth by dividing it."
~~~~ Dr. Adrian Rogers, 1931
This Saturday's topic:
A SOMERSET West property scheme that allegedly duped the four major banks into overexposing thousands of investors to about R5 billion rand in bonds, has come under the spotlight in a sequestration inquiry in Cape Town.
@ Peter
That's funny. A property speculator moaning about people not doing any work and supposedly living off the sweat of other's labour.
Hilarious. Got any other pearls of wisdom for us Peter?
@ Benny,
You really believe everybody should subscribe to your communist ideologies, lazy boy? Sitting around waiting for better days will not resolve your poverty - monetary or otherwise.
Anyway, your blind and biased aversion for property as part of a solid investment portfolio negates any possibility for you to see its value. Your opinion that owning investment property is speculation shows how utterly far off you are. So be it.
Its just a shame that you sit in a place like Cape Town and not be able to see the fantastic value of property at the moment. Great opportunity is passing you by ...
@ Ad,
I have done quite a bit of research on banks' property stats and its absolutely grotesque the way in which they are allowed to tweak (read fudge) the data. I am sure that its possible to show some trends, but its clear that these trends are merely in transactional value and has nothing to do with the value of property.
I just cannot understand why the banks continue to use these figures and why so many people attach so much value to these data. Goodness, even the most basic principle of business integrity is violated by them not producing independently audited results - its all done in-house!
Did you know that some banks decide, just based on a trend of a set of data, whether certain values are outliers and then merrily disregard these from their calcs! Unreal ...
Chill out Peter.
Never said I was a communist, I merely observed that one of Karl Marx's predictions was coming true. (The poor are indeed getting poorer and the rich are getting richer. I'll send you some credible links if u really give a shit)
What's the dif between buying "investment property" and "speculating"? Please explain.
I'm speculating too at the moment - with precious metals - But I don't have the nerve to pretend I'm doing humanity a great service by making a buck off the dips and rises of a market graph. When the time is right, I'll buy property one day but not now, not in Cape Town.
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