October 2010

YDL can buy properties for you at discounts of 20% to 40%. Join us at a free information evening on Wednesday, 17 November 2010 at 18:00 (FNB Conference Centre, Grayston Drive, Sandton) when we will explain how we can help you through our Property Partner Programme. Book now

Do you:

• Want to take advantage of current market conditions by buying properties at substantial discounts?
• Want to buy properties at yields of 10% in prime areas, when normal yields are 4% to 5%?
• Want to buy properties that are cash flow positive from Day 1 (or close thereto)?
• Want a trusted partner to take care of it all?

If so, join us at a free information evening, where we will cover the following”

• How does the YDL Property Partner Programme work and how can it help me build my wealth?
• Examples of actual deals done for investors.
• What are the risks?
• How do I sign up?

Date: Wednesday, 17 November 2010
Time: 17:30 for 18h00 (until 19:30)
Venue: FNB Conference Centre, Sandton
The presentation will be done by Anton de Leeuw and Deon van Druten.

Click here to register, or call 011 4657356, or SMS 083 389 0321

Please note that entrance to the information evening is free. However seats are limited and are available on a first-come-first-served basis. Book now to avoid disappointment.

See “Speculation vs Investing” below where the issue of how long the market will last, is briefly addressed. YDL offers a service whereby the angst and work attached to researching, buying, renovating, management and on-selling is taken care of for the investor. See below for a few examples of such deals recently concluded by YDL.

Should you be interested in booking a consultation, where we’ll show you actual examples of projects we have recently undertaken for our investors, why not give us a call on 011 465 7356, or click here to book your free consultation. Please find below some examples of recent Property Partner Programme deals.

Click the image below to view video:

Click the image below to view video:

Click here to view on the FM website

Click here to download the PDF

According to the FNB House Price Index, year-on-year price increase is slowing again, after a brief respite earlier in 2010. In the 3rd quarter, the average house price increased by 7% on a year-on-year basis, down from 11.3% in the previous quarter. The picture was slightly better than the national average in the Full Title Market, with the Full Title Index recording 3rd quarter year-on-year increase of 8.7%, but the overall index was dragged down somewhat by the Sectional Title Market, with the Sectional Title Index increasing by a slower 3.9%.

On a quarter-on-quarter basis, the overall average house price index declined by -1.5%. The FNB House Price Index is not seasonally adjusted, so one must be cautious with month-on-month interpretations, but other statistics suggest that there is reason to believe that this price slowdown is more than just seasonal.

The FNB Valuers’ Market Strength Index has remained negative all through the mini-recovery of 2009/early-2010, which suggests weak demand relative to supply. Recently, this index has started to deteriorate further, with the valuers rating supply stronger in recent times while also perceiving demand to be weakening. In the 3rd quarter of 2010, the Market Strength Index recorded a level of -0.171, which is a slight weakening on the previous quarter’s 0.167.

The sample of estate agents surveyed in the FNB Estate Agent Survey effectively also point to an unbalanced market, or otherwise put an unrealistically priced market, with the average time that a property is on the market prior to sale being estimated at a lengthy 15 weeks and 4 days. This would appear too long for the market to be deemed as a strong one, suggesting that asking prices are still too high given the weak level of residential demand. In the healthier times of 2005 and 2006, the average time on the market was generally below 2 months.

Considering the above factors, along with a host of economic factors, we retain the expectation of average price decline for 2011 as a whole, after an expected 6.4% increase in the 2010 average price over 2009’s average price.

When the market is unbalanced in favour of supply, either demand has to catch up, supply has to drop, or prices have to fall. Indications are that supply of existing property is strong, with high levels of financial stress-related selling. Indications are also that residential demand is currently weakening. That leaves a price decline as seemingly the logical outcome.

Click here to download the full report.

• Real growth in the South African economy slowed down to a seasonally adjusted annualised rate of 3,2% in the second quarter of 2010, from 4,6% in the first quarter. Real economic growth is forecast at 3% this year.
• Household finances continued to improve further in the second quarter. Debt levels, however, remain high, while real income and consumption growth slowed down up to mid-2010. Household mortgage advances growth picked up further in the third quarter after bottoming in late 2009.
• After rising markedly in the first half of the year, nominal and real house price growth slowed down in the third quarter of the year, driven by base effects as well as recent economic developments.
• The average price of a house in the affordable category increased by a nominal 3,2% year-on-year (y/y) to a level of R301 500 in the third quarter of 2010, with prices declining by 0,3% y/y in real terms.
• In the middle segment, house price growth averaged a nominal 5,4% y/y in the third quarter of 2010, bringing the average price to a level of R1 021 500 in the quarter. Real price growth of 1,8% y/y was recorded in the third quarter. On a quarter-on-quarter basis, price deflation occurred in the third quarter.
• The average price of homes in the luxury segment was up by a nominal 3,1% y/y in the third quarter to a reach level of about R4,5 million. After adjustment for inflation, the average real value of luxury houses was down by 0,5% y/y in the third quarter of the year.
• At geographical level house prices increased further on a year-on-year basis in the third quarter of 2010, but were down on a quarter-on-quarter basis in both nominal and real terms in most regions.
• The affordability of housing improved in the first half of 2010 as a result of developments with regard to interest rates, household income and house prices during this period. This is according to the latest trends in the ratios of house prices and mortgage repayments to household disposable income.
• After middle-segment house price growth of a nominal 11% y/y was recorded in the first half of 2010, it started to slow down from the middle of the year and was significantly lower at 5,4% y/y in the third quarter. The slowdown house price growth in the middle segment was related to the base effect of a recovery in price growth from mid-2009 as well as recent developments on the economic front.
• Nominal house price growth of about 7% is expected for the full year, with 2011 price growth to remain low. Real house price growth in the rest of 2010 and in 2011 will depend on nominal price trends as well as consumer price inflation.

Click here to download the full report.

Click here to view the full article.

Click here to download the article.

Click here to view the full article.