With high house prices, increased interest rates and now The National Credit Act (NCA) – Can you still get onto the property ladder?

The effect of the NCA on the property market over the last 2 months has been getting a lot of bad press – but is it all doom and gloom?
‘No - Banks have never lent recklessly in the past when it came to home loans and net disposable income was always scrutinised by the banks’ says John Smyth CEO of Multinet Mortgages.  ‘The act will have a positive effect on debt levels in our country – household debt as a percentage of disposable income has risen to about 75%. Highly indebted homeowners will have to take a hard look at their spending habits.’

The NCA allows the consumer to make an informed decision before purchasing on credit – a factor which was not very clear prior to 1 June. Credit providers will have to give a written pre-agreement (a quote) of exact charges and repayment figures. Most South Africans are unaware of how much something ends up costing when purchasing on credit. The Act will also increase availability of finance at a reasonable cost.

According to Smyth - ‘The banks have only 3% of non performing loans against their total loans book – this just proves the above statement that home loans not been handed out to every Tom, Dick or Harry.’  Under the NCA property owners will have a measure of protection which will in turn avoid unnecessary foreclosures. ‘Nobody wants to be in a position of having their home repossessed, this leads to a host of negative financial and social consequences.  I believe the Act will sort out the genuine buyers from the speculator hoping to make a quick buck. There will be teething problems as there is with any new system but I see this more from a time issue than anything else.’

Another key feature of the NCA is the regulation of credit bureaux and consumer credit information, providing for free access to this information, kept by the credit bureaux, and for a process by which any errors on credit records can be corrected.

If you do have your home loan or any other credit application declined you may request the reason for this in writing from the credit provider. Enabling the consumer to sort out any debt issues that perhaps they were unaware of.

Multinet Mortgages has seen a slight decline in bond approvals since the introduction of the NCA around 10-15%. As far as home loan applications are concerned, consumer’s reactions have been positive and the only problems that have arisen are with the interpretation of the Act by certain banks.

Buying a home and getting your foot on the property ladder should still be on the top of your list – ensuring financial and emotional security for life. Contact Multinet Mortgages today to find out how.  www.multinetgroup.co.za

The rise in South African residential rents is picking up steadily, driven particularly by the powering ahead of Johannesburg and East London, according to the latest Trafalgar property index.

A situation, that Andrew Schaefer, MD of national residential letting agents Trafalgar, highlights in a company media release, “is just the start of substantial rises over the next decade and more.”

Rents, he notes, rose year on year by 6,43% from June 2005 to June 2006, 6,88% from December 2005 to December 2006 and have risen 8,26% between June 2006 and June 2007. “That doesn't seem dramatic but the index has grown from 100 in 2003 to 129,3 in 2007, so the average tenant is paying nearly 30% more than he did three and a half years ago.”

East London tenants are paying 51% more and Johannesburg and Kwazulu Natal 33% more. Schaefer sees constant rent rises as “inevitable.” "Firstly, household formation or demand for rental accommodation appears to be far outstripping the creation of new stock or supply. Exact data is not readily available.

"Secondly, its not just population growth that is driving demand, although we get the feeling that the number of foreign Africans coming into SA is greater than statistics indicate. It's mainly being driven by the rapid reduction in household sizes. According to the University of South Africa, household sizes have dropped from 4,48 in 1996 to 3,69 in 2005 and the number of households grew from 9 million to nearly 13 million in the same time.

Based on this data we estimate that about 450 000 households are forming each year of which at least 100 000 will be tenants. Other factors affect rental demand as well. For instance, the number of single households that make a large proportion of tenants is now about 25% of all households, up from 12,5 in 1995.

"Third is the growing demand from young people wanting more mobility than in the past and finding a choice of good homes for indefinite periods from the growing ranks of buy to let investors.

"Fourthly, rising house prices tied to increasing interest rates is pushing more first time home buyers off the property ladder. "And fifthly is the slowing development of new apartments and other rental stock by developers faced with rising interest rates, building and land costs and slowing price increases."

Pretoria remains the laggard of South African cities with its index at 115 and its rents actually dropping by 0,62% from June to June. Cape Town's rents have improved by 6,8% but at 126 continues to lag the national index of 129. Johannesburg (up 11,88%) and Kwazulu Natal (7,82%) - mainly greater Durban -- are around 133. East London's increase is ahead of the pack at 13,7%.  

Article courtesy www.rodneyhayter.com

First make sure the surface you have chosen to paint is primed and ready for the job. Rule no. 1. Don’t paint acrylic directly over enamel! Merit Universal Undercoat UC1 is an excellent general-purpose primer for surfaces both inside and outside. Merit Plaster Primer UC 56 is used for newly plastered walls, concrete, gypsum plaster, unglazed bricks and fibre cement. For excessively plastered walls it is recommended that one uses Bonding Liquid before priming. If you’ve decided to repaint your bathroom or kitchen, an excellent ceramic tile primer is available – Ceramic Tile Primer CTP 1. For wooden panels and other surfaces, Wood Primer UC 2 is an oil-based medium used to seal the wood. For those types of wood that bleed resin, Woodcare Knotting PK 2 is recommended to prevent the resin damaging any paintwork. Plascon Melamine Primer is great for cupboards and other melamine surfaces.

Paint can either be oil-based or water-based. Both oil and water based paints can have matt or gloss finishes. It is also important to take into consideration the effect the finish will have on the chosen colour. High gloss paints always seem to make a colour darker. This is because the paint reflects light off the surface away from the colour.

Oil based paints have a very smooth finish and are durable. They are more difficult to use than water-based paints because the cleaning process afterwards can be quite laborious. One should wash used brushes and rollers in turpentine to prevent them from being damaged. Oil-based paints have a much longer drying time than water-based paints and also have a strong odour. It is recommended that the room be left to air before any further activity goes on. However, it is much easier to strip oil-based paints of wooden surfaces than water-based paints. In fact, oil-based paints seem to preserve wood better than water-based paints!

Water-based or acrylic paints are far easier to use than oil-based paints. Not only is the cleaning up painless but the application is also far less complicated than oil-based paints. Water-based paints are virtually odourless and so ventilation is not a problem. Make sure to wash out any spills on clothes and carpets immediately! Water-based paints are quick-drying and their durability has been proven time and time again. They have also been manufactured for use in specific areas of the house, which is a helpful guideline in choosing which paints go where. Just to add further confusion to paint categories: acrylic paint is also known as emulsion paint.

Once you’ve understood the differences between water-based and oil-based paints it is also helpful to know about particular brands of paint and how they work in your home. For instance, it wouldn’t be the wisest idea to use a water-based paint in your bathroom. There is generally a lot of moisture in the bathroom area and using a water-based paint may result in damp and mould. Knowing what types of paints are out there not only equips you to make successful decisions, but it can be quite an empowering experience to be able to walk into a hardware store and know exactly what it is you’re looking for!

• Plascon’s Double Velvet paint is an acrylic emulsion. It is easily washable and stain resistant. It is for interior use on new cement plaster walls, ceiling board, gypsum plaster, fibreboard, metal and wood. Double Velvet is said to be most useful in areas of high activity in the home, such as the passage way or children’s rooms, because it is easily washable. It is odourless and as a result painting is far less hassle! Plascon has brought out the Disney range of paints, which makes repainting your child’s room much more fun! With paints ranging from Pooh Bear Yellow DWP 7 and Glow in the Dark DGD 1 to Sparkle DGP 1 (sparkling, glitter paint), you can let your creativity run wild.
  
  
• Exterior paintwork is most successful when using Plascon’s Wall & All paint. This paint is specifically made for exterior work and so is extremely durable and washable. It is also emulsion paint and has a sheen finish. Wall & All can be used on previously painted and new plaster, wood, concrete, primed steel, galvanized steel, various building boards, gypsum plaster and PVC piping and guttering.
  
  
• Plascon’s Super Acrylic Polvin is an acrylic emulsion used for interior and exterior on various types of building boards, cement plaster, concrete and porous brickwork.
  
  
• Super Washable Sheen paint is a washable emulsion paint. It can be used for both interior and exterior surfaces and is of superior quality.
  
  
• Plascon’s Velvaglo paint is an oil-based paint. It has either a semi or high gloss finish and can be used for interior and exterior surfaces on primed wood, plaster or metal. Velvaglo is a non-absorbent paint and is moisture and peel-resistant. As a result, this is the perfect paint to use in areas of high moisture concentration such as the bathroom or the kitchen.
  
  
• Super Universal Enamel is another oil-based, high-gloss enamel for interior and exterior use.
  
  
• For an elegant ultra-matt finish in the lounge, dining room or even bedroom, Plascon’s Cashmere does the job. Plascon’s Suede paint also adds an elegant touch to a room by imitating the look of brushed suede on a wall. Suede is a water-based, textured interior paint.
  
  
• For the DIY painter, Plascon’s One Coat Ceiling Paint is the answer to many problematic ceiling paint jobs! This is a white, matt finish paint that provides low roller splatter. It dries quickly and is mould resistant.

Ornamental grasses are becoming increasingly popular in urban landscapes.  Considering their versatility and their unique, eye-catching beauty, this is not really surprising. They add a certain softness and sense of movement to the garden that is often lacking in the more traditional perennials and shrubs that generally form the backbone and structure of most gardens.

The size and style of the landscape will determine whether you can use the clumps of grass-like plants individually or in bold groupings. Varieties that maintain good looks all year round can make for interesting pot or container specimens.

As the air cools and autumn creeps in, many ornamental grass plants come into their prime and add a uniquely charming character to the garden. As with all garden plants, seasonality plays a big role and autumn is certainly the best time for grasses. This certainty comes to life when you look at the natural grasslands that cascade through vast areas of our country, as the seeds mature, transforming the green carpet of summer into the golden hues of autumn. The beauty and ornamental value of grassy plants in the landscape inevitably complement the natural changes occurring in garden.

Fortunately, the new fashion in many modern landscape designs is grasses and grass-like plants. Some grasses die in the winter months and by pruning, new growth can be stimulated for new growth in spring.

The popularity of these plants is rapidly increasing, because of their wide range, hardiness, ease of cultivation and their ability to adapt to a vast range of climatic conditions. Keep your garden with the times by bringing the planned addition of these easily grown and richly rewarding ornamental grass plants.

To ensure success, as with any perennial, preparing the soil correctly and good drainage is essential. Ideally you should prepare your planting areas in the autumn months, starting with deep tilling of the soil. This will facilitate the soil’s workability and tilth. If this is not possible, spring tillage is also acceptable. Include a generous dose of organic matter during this process. Ornamental grasses require only a small amount of a general fertilizer, which can be applied just as growth resumes in the spring.

Whilst ornamental grasses can be planted all year round, spring planting has the advantage of giving them ample time to produce a healthy root system before winter.
Early or severe winters are the potential downside to planting in autumn which would require additional precautions to ensure a more reliable show. By April/May your autumn planting should be complete, and for best results a light cover of mulch should be provided during the first winter. Previous growing depths will depict how deep they should be planted. Please note that if they are planted too deep they will be susceptible to root disease or could just rot in the ground. Water well after planting, and maintaining constant moisture around the plant will aid in speeding up the growth process.

Fertilizer
Ornamental grasses require relatively low levels of fertility. By keeping the level of nitrogen low, lodging or flopping over can be kept to a minimum. Leaf colour and vigour are good guides to nitrogen requirements. Apply fertilizer just as growth resumes in the spring. An application of a slow release fertilizer in the spring is enough to take care of the plant’s needs throughout the summer. Fertilizer should be watered in thoroughly.