A report from News24 as follows:
Johannesburg - South Africa's central bank monetary policy committee
(MPC) could meet again on interest rates before its scheduled April meeting, depending on economic growth and other data, Governor Tito Mboweni said on Friday.
"There is going to be data coming out towards the end of February and also mid-April, and if that data indicates that the MPC must meet, we might actually meet before the next scheduled meeting," he said in an interview with CNBC Africa, referring to GDP data on February 24.
Mboweni also said the MPC decision to cut the repo rate by 100 basis points to 10.5% announced on Thursday was unanimous, and that he personally believes that interest rates were too high in the country.
CONTENTS
1. New release developments
2. New release property
3. Choo-Tjoe: Partners are being sought
4. Radar at George Airport
5. Register your team now
6. SARB takes chunk out of rates
7. Repay your bond above rate if you can
8. Stable prime in 2009
NEW RELEASE DEVELOPMENTS
KNYSNA - BRENTON ON SEA
BRENTON BAY LUXURY HOTEL APARTMENTS
Rental pool options to generate income on your investment. The location couldn’t be more spectacular, Brenton-on-sea, Knysna, The Garden Route, South Africa. Need we say more? The old Brenton-on-Sea Hotel has made way for this spectacular sectional title hotel that offers investors the opportunity of owning their own hotel suite, one, two or three bedroom unit, fully furnished in an upper class setting and environment. The units have spectacular views of the ocean below and direct access to the beach. The development will include a cocktail bar, restaurant and modern SPA..... more
From R1 995 000
ID3924
MOSSEL BAY - THE POINT
THE POINT VILLAGE LUXURY BEACH APARTMENTS
Point Village luxury apartments is situated in the Mossel Bay Point area, on the beach. Project is due to be completed by the end of 2009. The first floor will consist of 16 hotel room units and the second floor will consist of 7 luxury apartments.
From R1 300 000
ID3923
NEW RELEASE PROPERTY
MOSSEL BAY - TERGNIET
1 Bedroom beach home, within walking distance to the beach, with ocean views and secure.
R495 000
ID3908
GEORGE - HEATHER PARK
Situated in the popular Golf Park 2 development. Quality craftmanship by top developer EARP Properties. Sunny low maintenance home, 3 living areas, BBQ room, patio, pool area, pantry, kitchen, laundry, 2 carports, 3 bedrooms and 2 garages.
R1 799 000
ID3909
GEORGE - ROOI RIVER RIFF
Tuscan designed home with water-features, large garden and mountain views. Spacious interior with designer finishes, 3 bedroom, 3 bathrooms, 3 living areas, BBQ area, patio, kitchen, laundry, dressing room and 2 garages.
R2 470 000
ID3910
GEORGE - EAST
Cottage style home close to shopping centres. 3 Bedrooms, 2 living areas, kitchen, laundry, sun room, tool room and garage.
R920 000
ID3920
GEORGE - BO DORP
A home with feel and comfort. Living areas, leading to patio, BBQ and outdoor pool area. 3 Bedrooms, 2 bathrooms, kitchen, laundry, study and play room.
R1 785 000
ID3921
CHOO-TJOE: PARTNERS ARE BEING SOUGHT
In examining the future possibilities of the Outeniqua Choo-Tjoe, the Department of Economic Development and Tourism is considering the formation of a private public partnership specifically on the George to Knysna service.
But on the George to Mossel Bay route a private operator is being sought.
“Whoever operates this train service will have to lease the railway-line from Transnet.”
So said Chief Director of Tourism, Labeeqah Schuurman on Monday.
She said a communiqué would be forthcoming from Chief Director Garth Strachan at the end of the week.
At the steering Committee held on 30 January 2009 the options detailed in the business cases for both the George to Knysna service and the one to Mossel Bay was being studied. A financial business plan will be presented on 10 March. On that date both business cases will be scrutinized.
During the floods of 2006 and 2007 various sections of the railway-line suffered damages which ran into millions of rands.
RADAR AT GEORGE AIRPORT
SAFETY AND CAPACITY ENHANCED
The new secondary radar which is being built at the George airport is set to enhance safety and capacity to the level of that of Cape Town International Airport.
In order to ensure increased safety and capacity in the George Terminal Are (TMA), the installation of the secondary radar was jointly identified as a requirement by ATNS and the airlines. George Airport previously been equipped with radar and the benefits of the secondary radar will be increased safety and capacity.
This will lead to more aircraft being able to land and depart during a specific time. The implementation of the radar will also safely enhance the capacity during the FIFA World Cup 2010.
REGISTER YOUR TEAM NOW
LIFE CHANGING EXPERIENCE
The CANSA George Relay For Life is only six weeks away. Register your team now to ensure a campsite by calling CANSA on 044 874 4824. Thiscelebration of life brings the Southern Cape community together in a unified effort to fight cancer.
Former and current cancer patients, those who have lost a loved one to cancer, businesses, families, civic organizations, and the public are invited to take part in this exciting team event, Relay for Life takes place from 17:00 on Saturday, 14 March until 07:00 on Sunday, 15 March 2009 at the Outeniqua High School Grounds.
CANSA Relay for Life is a family-oriented event where the participants enjoy the camaraderie of participating in a team, whilst raising funds to help eliminate cancer.
SARB TAKES CHUNK OUT OF RATES
The South African Reserve Bank's monetary policy committee has cut the key repo rate for the second consecutive meeting.
Cape Town - The South African Reserve Bank's monetary policy committee (MPC) has cut the key repo rate by 100 basis points, bringing it down to 10.5%, with the prime lending rate dropping to 14%.
The repo rate is the rate at which the central bank lends to other banks, and the prime lending rate is the benchmark rate at which banks lend to customers.
This is the second successive reduction in the repo rate. The committee's 50 basis-point cut in December marked the end of a 500 basis-point tightening in rates since June 2006, which resulted in a rise in the cost of debt servicing for South African consumers.
According to a Reuters poll, 16 economists were in favour of a 100 basis-point cut, while 11 forecast a 50 basis-point reduction. Economists forecasting the 100 basis point cut pointed to the slowdown in the South African economy, rate cuts by other central banks around the world, and the bleak outlook for growth in 2009 as reasons to support their forecasts.
In a research note on Thursday, Absa Capital also forecast a 100 basis-point cut. It said that base effects stemming from past high fuel and food prices should see inflation continue to fall sharply in 2009. The positive inflation outlook, it said, together with prospects of markedly slower economic growth augured well for a 100 basis-point cut.
The 100 basis-point cut marks a break in the bank's recent tradition - over the last five years, it had kept to changes of 50 basis-point increments.
REPAY YOUR BOND ABOVE RATE IF YOU CAN
With interest rates likely to drop by 2,5% over the coming year, homeowners should seriously consider "biting the bullet" and continuing to pay their bonds at the existing rate.
Build your equity on your main asset, your home.
Many bondholders still do not appreciate just how much money they can save and how many months they can cut off their bond repayment period if they pay above the stipulated rate.
Supposing we are fortunate enough to see the 2,5% interest rate drop predicted for this year actually come about, a bondholder with a R900k bond (the average size for a middle class bond in SA today) could, if he continues to pay at current levels, save eight years of payments and some R730k in all. This is a significant sum and surely one worth going for even it does mean being 'short' financially for a few years.
Even if, as seems unlikely, properties continue to lose value for a few more months this year – or at some other time in the future – the bondholder who has paid off a substantial sum, is in a far better position than the one moving into "negative equity", i.e. owing more on his property than he can recoup by selling it.
This, as we have seen in the UK and the US, can be a disastrous situation and should be avoided at all costs.
STABLE PRIME IN 2009
The prime lending rate is expected to end 2009 at 11 percent, Nedbank Group's economic unit said on Friday.
The prime rate presently stands at 15 percent.
Nedbank said credit figures released earlier on Friday — along with economic data released earlier this week — had boosted the case for a more aggressive interest rate cut at next week's Monetary Policy Committee meeting.
"Recent releases seem to confirm that the manufacturing, mining and retail sectors are all in recession, while inflationary pressures at both the producer and consumer level are receding fast," it said.
Furthermore, the global economy's woes had intensified, which would add to deflationary pressures and the possibility of a more protracted slowdown in South Africa.
"Given the lag between loosening monetary policy and the impact on the real economy, the SA Reserve Bank will probably opt to act more aggressively in the early part of the year, cutting rates by 100-basis-points in both February and April before reverting to 50-basis-point cuts in later meetings," Nedbank said.
Earlier the SA Reserve Bank released data showing that private sector credit extension — or credit growth — eased for a second consecutive month to 14.04 percent annually in December from 15.30 percent the previous month — an indication that the general level of credit extended to the private sector was responding to the elevated interest rate environment.
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