Property for sale - Sedgefield

One of my friends/clients would like to sell his property in Sedgefield, Western Cape Garden Route.

Please contact me for more info - vania@bondapply.com

From Tourism Sedgefield: "Sedgefield is situated midway between George and Knysna, in the Cape Garden Route. Set on the coastline, Sedgefield is fast shedding its former sleepy town status and turning into a buzzing and lively hot spot. "If it´s outdoor, its out here!" is the towns motto and with its surrounding legendary lakes and five splendid beaches, it is no wonder. Parents can attempt to relax whilst the kids splash around in the shallow waters of the lagoon.

For the less sedentry, why not do try some yachting or windsurfing at Swartvlei. This lake is an ideal venue for water sports enthusiasts, with good offshore winds, a wide expanse of water and limited interference from motor boats. Take to the Beach; Sedgefield boasts five absolutely stunning beaches. From our river mouth beach to Myoli and Cola (increasingly popular swimming beaches for the holiday makers), Buffalo Bay (a twenty minute drive but well worth it!!), Platbank (borders on a nature reserve) and Swartvlei Beach alongside the majestic Gericke´s Point.

If getting wet is not your thing, there is still much to do for the family.

Other outdoor activities include bowls (for the grandparents, perhaps), tennis, squash, canoeing, horse riding and golf. One can also go paragliding, experience our new and exciting nature´s trail through the garden route and of course enjoy great fishing opportunities (surf, rock and lake fishing). Be sure to get your fishing license at the local post office or Sedgefield Sports and Hobbies and set out for Groenvlei to hook some Bass.

Sedgefield boasts a few marine protected areas and nature reserves and is a hotspot for bird lovers. Spot the secretive Starred Robin and the Blue Mantle Flycatcher in the surrounding forests. You could also spot the difficult-to-see Victorian Warbler amidst the fynbos and the much sought after (within the birding circles) African Finfoot. At certain times of the year, a section of the Swartvlei is coloured pink with flamingos that feed off the riches. "

Economic Landscape

Although we expect that 2008 will most probably be the lower turning point in the property cycle, the forecast is for nominal house price growth to average between 10% and 12% per annum in the period 2008 – 2012. This implies that house prices will by 2012 be approximately 60 -70% higher than today, even after strong price growth in the past few years.

This year is therefore the year to buy, before price growth starts to accelerate again in 2009 on the back of expected better economic conditions and lower interest rates.

When looking further a field, the recent turn in the United States housing and financial sector is of some concern, but we do not expect there to be any direct impact on South Africa. South Africa and the local banking sector are not directly exposed to the sub-prime market, as our offering is based on sound lending practices.

In an attempt to avoid a recession, the US has cut interest rates aggressively. This may influence world growth and also South Africa’s export performance. Should a recession transpire, we could potentially see an indirect impact on our macroeconomic environment, which in turn could affect the ability of households to purchase properties.

When it comes to investment, property has always been a sound choice – especially over the medium to long term. Since 2000, real house price growth (that is excluding the effect of inflation) was in the order of 13,5% per annum. Very few other investments would have performed better, taking into account that property is a low-risk investment. When looking at economics, interest rate sensitive sectors, such as the property market, are important to the household and banking sectors. As one of the most sensitive sectors in the economy, the housing market is often referred to as the emotional sector because of its volatility as well as its value to the consumer.

A bank’s most significant relationship with a consumer/household centres around the mortgage loan. A house is generally the most expensive item a household will ever buy, but it is also one of the single biggest assets they will ever own. It is important because as an asset, it is a fundamental contributor to wealth creation for most families.

The potential contribution a home can make to a family’s financial wellbeing is proven when one reflects on the past few years. Since 2000, property prices have increased by about 20% per annum. Individuals who have not been in the property market during this period have lost out on one of the biggest creators of wealth in our country in a long time.

So what does this all mean today for our customers out there?
We know affordability will remain a big issue this year. House price growth is the lowest it’s been in seven years – it’s expected to dip below 10% in 2008.

This, coupled with the now tighter controls on credit provision, is likely to result in increased pressure on the applications acceptance rate. Buying patterns will change as customers opt for smaller, more affordable homes versus the bigger, more luxurious dwellings they have come to expect to buy with their rand. Bad debts are likely to increase, which means profitability and overall financial performance will need to be carefully managed.

Crisis in US Sub-Prime market

INDUSTRY COMMENT by Theuns Hanekom

We keep hearing about how the sub-prime crisis in the US housing market has caused great anxiety in the world economy. What is it and how will economies manage the crisis?
Remember 2001 in the USA - 9/11, huge corporate scandals (Worldcom and Enron)? Remember a fear in the US of recession? The US Federal Reserve cut interest rates to an all time low of 1% to stimulate their economy. Of course, lower interest rates made houses more affordable and house prices soared as demand for properties increased.

The prime rate of interest is the rate at which banks loan money to their low risk or best risk clients. With this demand for borrowing for housing purchases, US mortgage lenders saw the potential of granting high interest home loans to previously high-risk clients who might not have qualified for a mortgage loan under normal circumstances. So the birth of the sub-prime lending market. Sub-prime lending gave rise to a whole range of new mortgage products, which effectively did away with the usual strict credit criteria. “Liar loans” (allowed applicants to claim higher income) and “Ninja loans” (no income, no job or asset loans) were products offerings. Lenders argued that they could charge higher rates to compensate for the increased risk of their new clients and relied on a booming property market to protect them in the event of default and the need to repossess. Also important is that sub-prime lenders largely made use of securitization to raise funding.

By December 2004, however, US interest rates were increasing causing bond repayments to rise and the growth in property values to decline. The high-risk sub-prime market was the first to feel the pinch of higher interest rates and subsequently defaults on mortgage repayments started to soar. Sub-prime lenders struggled to sell repossessed properties at a high enough price to cover the outstanding debt. This resulted in huge losses in the sub-prime market. It was recorded during February 2007 that sub-prime mortgage defaulted at a rate of 12.5% as opposed to 1.5% of traditional prime mortgages.

As mentioned earlier, the decision to enter into the sub-prime market, was fuelled by investors and the highly lucrative securitization model. As the sub-prime market started to default, investors in mortgages started to panic and withdrew their investments in mortgages. This caused a liquidity squeeze, as many of the sub-prime lenders were forced to liquidate their sub-prime mortgages in order to pay their investors. This forced further losses in the sub-prime market. During April of 2007, New Century, the largest independent sub-prime lender filed for bankruptcy.

How does this affect the South African market? Fortunately our major financial institutions have not yet entered the sub-prime market. It is unlikely that South Africa will be directly exposed to a sub-prime crisis. This is due to disciplined banking practice and more recently introduction of the National Credit Act. However as members of the global economic community we cannot escape the effects of the crisis in the largest economy in the world.

However, as a result of the US sub-prime crises, certain recommendations are being investigated in order to prevent this from happening again in the future. One recommendation, which may be investigated by our local financial institutions, is separation between the origination of the credit (mortgage originator) and the ownership and management of the associated credit risk. There is a growing concern that the mortgage originator is not motivated or involved in limiting the risk associated with the mortgage loan.

With the rise in interest rates over the past 19 months and banks recording a sharp increase in repossessed properties, the banks may very well investigate ways of sharing that risk with the mortgage originators in the future, such as the introduction of trailer commission which is currently being used in the Australian mortgage origination market. This, however, reiterates our role as mortgage originators – we have an obligation towards the banks to ensure that we submit good quality applications in order to ensure the sustainability of our wonderful industry.

Shark Dive

Two Oceans Aquarium

Predator Tank

14 February 2008

Finding and keeping a life partner

Golden rules for finding your life partner by Dov Heller, M.A

When it comes to making the decision about choosing a life partner, no one wants to make a mistake. Yet, with a divorce rate of close to 50%, it appears that many are making serious mistakes in their approach to finding Mr. /Miss. Right! If you ask most couples who are engaged why they're getting married, they'll say: "We're in love". I believe this is the #1 mistake people make when they date.

Choosing a life partner should never be based on love. Though this may sound "not politically correct", there's a profound truth here. Love is not the basis for getting married. Rather, love is the result of a good marriage. When the other ingredients are right, then the love will come. Let me say it again: "You can't build a lifetime relationship on love alone". You need a lot more!!!

Here are five questions you must ask yourself if you're serious about finding and keeping a life partner.

QUESTION 1: Do we share a common life purpose? Why is this so important? Let me put it this way: If you're married for 20 or 30 years, that's a long time to live with someone. What do you plan to do with each other all that time? Travel, eat and jog together? You need to share something deeper and more meaningful. You need a common life purpose. Two things can happen in a marriage: (1) You can grow together, or (2) You can grow apart. 50% of the people out there are growing apart. To make a marriage work, you need to know what you want out of life! Bottom line; and marry someone who wants the same thing.

QUESTION 2: Do I feel safe expressing my feelings and thoughts with this person? This question goes to the core of the quality of your relationship.Feeling safe means you can communicate openly with this person. The basis of having good communication is trust - i.e. trust that I won't get "punished"; or hurt for expressing my honest thoughts and feelings. A colleague of mine defines an abusive person as someone with whom you feel afraid to express your thoughts and feelings. Be honest with yourself on this one. Make sure you feel emotionally safe with the person you plan to marry.

QUESTION 3: Is he/she a mensch? A mensch is someone who is a refined and sensitive person. How can you test? Here are some suggestions. Do they work on personal growth on a regular basis? Are they serious about improving themselves? A teacher of mine defines a good person as "someone who is always striving to be good and do the right ".So ask your significant other what do they do with their time? Is this person materialistic? Usually a materialistic person is not someone whose top priority is character refinement. There are essentially two types of people in the world: (1) People who are dedicated to personal growth, and (2) People who are dedicated to seeking comfort. Someone whose goal in life is to be comfortable will put personal comfort ahead of doing the right thing. You need to know that before walking down the aisle.

QUESTION 4: How does he/she treat other people? The one most important thing that makes any relationship work is the ability to give. By giving, we mean the ability to give another person pleasure. Ask: Is this someone who enjoys giving pleasure to others or are they wrapped up in themselves and self-absorbed? To measure this, think about the following: How do they treat people whom they do not have to be nice to, such as waiters, bus boys, taxi drivers, etc. How do they treat their parents and siblings? Do they have gratitude and appreciation? If they don't have gratitude for the people who have given them everything; can you do nearly as much for them? You can be sure that someone who treats others poorly will eventually treat you poorly as well.

QUESTION 5: Is there anything I'm hoping to change about this person after we're married? Too many people make the mistake of marrying someone with the intention of trying to "improve" them after they're married. As a colleague of mine puts it, "You can probably expect someone to change after marriage for the worse". If you cannot fully accept this person the way they are now, then you are not ready to marry them. In conclusion, dating doesn't have to be difficult and treacherous. The key is to try leading a little more with your head and less with your heart. It pays to be as objective as possible when you are dating; so be sure to ask questions that will help you get to the key issues. Falling in love is a great feeling, but when you wake up with a ring on your finger, you don't want to find yourself in trouble because you didn't do your homework. Another perspective.... There are some people in your life that need to be loved from a distance.... It's amazing what you can accomplish when you let go of or at least minimize your time with draining, negative, incompatible, not-going anywhere relationships. Observe the relationships around you. Pay attention....Which ones lift and which ones lean? Which ones encourage and which ones discourage? Which ones are on a path of growth uphill and which ones are going downhill? When you leave certain people do you feel better or feel worse? Which ones always have drama or don't really understand, know, or appreciate you? The more you seek quality, respect, growth, peace of mind, love and truth around you...the easier it will become for you to decide who gets to sit in the front row and who should be moved to the balcony of your life.

An African proverb states, "Before you get married, keep both eyes open, and after you marry, close one eye". Before you get involved and make a commitment to someone, don't let lust, pity, desperation, immaturity, ignorance, pressure from others or a low self-esteem make you blind to warning signs. Keep your eyes open, and don't fool yourself that you can change someone or that what you see as faults aren't really that important. Do you bring out the best in each other? Do you compliment and compromise with each other, or do you compete, compare and control? What do you bring to the relationship? Do you bring past relationships, past hurt, past mistrust, past pain? You can't take someone to the altar to alter them. You can't make someone love you or make someone stay. If you develop self-esteem, spiritual discernment, and "a life"; you won't find yourself making someone else responsible for your happiness or responsible for your pain. Seeking status, sex, and security are the wrong reasons to be in a relationship.

WHAT KEEPS A RELATIONSHIP STRONG ARE:

1. TRUST

2. COMMUNICATION

3. INTIMACY

4. A SENSE OF HUMOR

5. SHARING TASKS

6. SOME GETAWAY TIME WITHOUT BUSINESS OR CHILDREN

7. DAILY EXCHANGES (meal, shared activity, hug, call, touch, notes)

8. SHARING COMMON GOALS AND INTERESTS

9. GIVING EACH OTHER SPACE TO GROW WITHOUT FEELING INSECURE

10. GIVING EACH OTHER A SENSE OF BELONGING AND ASSURANCES OF COMMITMENT

If these qualities are missing, the relationship will erode as resentment withdrawal, abuse, neglect, and dishonesty; and pain will replace it.

Happiness keeps You Sweet,
Trials keep You Strong, Sorrows keep You Human,
Failures keep You Humble,
Success keeps You Glowing, but..........
Only faith keeps You Going!

Home is where the loan is

By Desné Masie

Integer is a new player in the mortgage space dominated by the commercial banks and SA Home Loans.Its main feature is the way it combines transactional features with home loans.

CEO Simon Stockley says: "The product starts its life as a mortgage account. We are encouraging people with mortgages to switch to this product." If the bond is in your name, there are no registration fees and Integer's attorneys will negotiate a 50% discount on bond fees for you. There is an initiation fee of R2 950.

The Integer model enables a salary to be paid into a bond account. What does this mean and how does it work out?Savings can be significant over time. Most SA consumers are paying off a loan at the prime rate of 14,5%.

According to Integer, assuming a R500 000 bond payable over 20 years, and a monthly salary of R14 750, as much as R55 829 can be saved over 13 months.Homeowners can borrow up to 85% of the value of their homes. Integer has found people are borrowing about 70%. Like similar models, it can be seen as a line of revolving credit for your home.

Stockley is aware that the concept of a single banking account is not new. FNB offers the One Account, which allows consumers to consolidate their homes as a cheque account, overdraft, personal loan and home loan.

The difference, claims Stockley, is flexibility: "We have taken the general principles of a mortgage and tweaked them a bit. With the One Account, you have to put your whole salary into it. Here you can split your salary between your cheque accounts and Integer."

Some debts can come off Integer and others off a cheque account. This is because "people would rather have a small positive balance on their transactional accounts. It is quite scary to see a negative balance of R900 000 on your account."

One of Integer's features allows an additional credit loading of 1% of the value of a home onto a debit card, in addition to the maximum loan of 85%. This can be paid back at a lower rate than an overdraft, because payments would be made at the same rate as the Integer home loan.The concept has apparently worked in developed markets.

In SA it has been offered in the private banking space, but, says Stockley, "not really in the mass-banked sector. I suppose it is not offered for good reason. Banks make money from the inefficiencies of their products."

Is it a good time to launch yet another mortgage product, when the global housing market is becoming depressed?Absolute house prices have also come down in SA and made it a buyer's market.Says Stockley: "It's a good time for a new product. But we can't compete on product alone, so we will have to compete with our service and fees, especially on the rate we lend to customers.

Banks advertise the worst possible rate to consumers." Most people don't realise you can negotiate your lending rate down from prime.A lot of South Africans started to think about unlocking the equity in their homes during the property price hike by increasing the size of their mortgages.

How is an independent player like Integer funding this business? Unlike banks, Integer does not take deposits. Banks use retail deposits to fund their loans and mortgages.Stockley responds that "we are funded by securitisation in the capital market. This is a mechanism I pioneered at SA Home Loans. We are looking to securitise towards the end of this year, as we are still in the ramping-up stage and building up our loan portfolio."

Is this not a business risk, with the global market tightening as a result of the subprime meltdown? Stockley believes the SA capital market is still sound and interested in this product: "But there is still a risk that when we need to securitise, we might not be able to."He says Integer will have to look to alternative sources of funding should it not be in a position to securitise. "We could (potentially) access Investec's balance sheet on a short-term basis to ride out any disruptions to the capital markets," he says, and cites the example of Northern Rock. "If you look at the real casualties of the subprime, it is those specialist lenders without bank shareholders that have been worst hit."

Integer funds its loan portfolio through securitisation, but the venture capital for the loan portfolio has been provided by Investec and Purple Capital.Stockley says: "Since we launched in October, we have had applications in the sum of about R775m, but about 40% of the projected gross applications will be registered, which is about R300m."But this is a patient sort of business and definitely a long-term investment for Investec and Purple. It's going to take about three to five years for this business to become profitable."The actual mortgage switches can take anything from four to six months.

This means consumers also have to exercise patience before deriving benefit. For example, commercial banks will make clients wait for up to three months or pay three months' instalments, before they effect a switch.

Mark Barnes, CE of Purple Capital, is also chairman of Integer: "The reason we are also on the board is that our cost of capital is higher than other financial institutions, so we want to be involved. This is a good entrepreneurial venture with good professional skills. We expect a good return."

Financial Mail
Friday, February 08, 2008 10:16:00 AM

Property market favours savoir-faire buyers

CAPE TOWN (January 25) –

Be-devilled by eight interest rate rises and the uncertainty shrouding a further hike at next Friday’s Monetary Policy Committee meeting has prompted a warning from industry pundits for a cautious approach to the market. Main concern centres around purchasers locking themselves into long-term debt with little room for financially maneuvering around further rate increases, which is a possibility as the Reserve Bank struggles to rein in an already well above target current rate of inflation.

However, while there is a need for caution the current well-stocked market could favour focused on good value, particularly if they utilise the services of leading real estate professionals.

According to Jeanne van Jaarsveldt, Marketing and Finance Director of RE/MAX of Southern Africa, “speculations of a global economic slow-down, even the possibility of a recession, has driven consumer confidence to a state of caution and a ‘wait-and-see’ approach to the property market”.This month, the median house price index issued by a leading South African bank, showed that price growth in residential property had come to a grinding halt at the end of 2007.Additionally, Eskom’s power supply woes will lead to a decline in new property developments. While this may lead to developers seeking eco-friendly ways to build homes, says Van Jaarsveldt, it will not underpin consumer confidence levels.

He adds that this factor, plus dollar-rand exchange rate pressure and the substantial trade deficit in the South African economy, will likely prevent Reserve Bank governor Tito Mboweni from issuing another interest rate hike at the upcoming Monetary Policy Meeting.Van Jaarsveldt continues: “This year will become an even stronger buyers’ market than we anticipated in 2007, and crucially we will continue to see property prices sell between 10 percent and 15 % below the original asking price for properties listed towards the end of 2007.

“Consumers in a rush to sell should list at 10% below of what they hoped to achieve in December last year. “The good news is that it is a great time for first time home-buyers to enter the market, with the unique balance of affordability and strong value making this foray into real estate a brilliant proposition.”

Inspiration

"You don't have to be great to start, but you have to start to be great." Zig Ziglar

Coco Chanel grew up in an orphanage, and her humble beginnings gave her the determination to succeed.

At the orphanage she learnt the importance of immaculate sewing and later made a fortune selling her simple, classic, easy-to-wear designs.

A top designer for over 50 years, even after her death her success continues through the House of Chanel.

The start of 2008 can also be the start of your new life.

What are you waiting for? Go out and grab it!

"There is no time for cut-and-dried monotony. There is time for work. And time for love. That leaves no other time." Coco Chanel

Debt Counselling Information

Debt Counselling info:

NCR Website http://www.ncr.org.za

Tel 0860 627 627

External bond consultants / lead generators needed - no experience required

Commission only

Any area in SA

Stable company

All documents and training provided

Marketing support provided

Please send your CV to vania@bondapply.com.

Credit chickens coming home to roost

2008 is going to be a busy year for the credit regulator.Geoff Candy14 Jan 2008 11:26

The cumulative four percentage point increase in interest rates since June 2006, seems hefty when one considers that South Africans, as a nation, owe R834bn to a variety of credit providers.

And, 2008 could well be the year when the credit extension chickens come home to roost.
According to Gabriel Davel, the National Credit Regulator, there will definitely be some fall out from the recent interest rate hikes as there is no doubt that people have overextended themselves.

"But," he adds, "It will not be like the crisis we saw during the early parts of the decade with Saambou and Unifer, people are much more cautious now."
Davel says most of the debt South Africans have accumulated is in the form of home loans and vehicle finance arrangements and these will generally be ok; rather it is in the area of credit cards and store cards that the big fallout will occur.

"There will probably be a number of retailers that will burn their fingers.
And, part of the role the National Credit Regulator plans to play in the coming year is to ensure that the amount of credit offered by retailers decreases.
"There is still too much hard selling in the market and that is one of our priorities for 2008," he says.

One of the other focus areas for 2008 and is the establishment of the debt counseling structures.
Since the Act came into effect in June 2007, 173 debt counselors have been approved and certified, while a further 70 have been approved and are awaiting certification.
Since June, 2 876 cases have been put under debt counseling, while 140 have been rejected - the primary reason being that the clients are not actually overindebted.

What has surprised the NCR is the sort of people that are applying for debt counseling. "There are a large number of people whose debts are R1m and up and who are now in a desperate position. Typically they are people already with a mortgage that have bought two cars, two credit cards and 5 or 6 high value store accounts."

According to Davel, there are surprisingly few people from the low income group that have so far applied for debt counseling, but this could also be because so far the debt counseling roll out has been primarily in urban areas.

Davel says, the current number of people under debt counseling is tiny compared to the 16m person credit market, but he adds that this number will continue to rise in 2008.Asked what to expect in 2008, Davel says, "On the first day of January, we had 200 calls and more than 80% needed debt counseling, it's going to be a busy year."

Our deepest fear - Nelson Mandela

"Our deepest fear is not that we are inadequate.

Our deepest fear is that we are powerful beyond measure.

It is our light, not our darkness, that most frightens us. We ask ourselves, who am I to be brilliant, gorgeous, talented, and fabulous?

Actually, who are you not to be? You are a child of God.

Your playing small doesn't serve the world.

There's nothing enlightened about shrinking so that other people won't feel insecure around you. We are all meant to shine, as children do.

We are born to make manifest the glory of God that is within us.

It's not just in some of us, it's in everyone.

And as we let our own light shine, we unconsciously give other people permission to do the same.

As we are liberated from our own fear, our presence automatically liberates others."

The above quote by Nelson Mandela was originally written by Marianne Williamson who is the author of other similar material.

Man in the Arena - Theodore Roosevelt

"It is not the critic who counts:
not the man who points out how the strong man stumbles or where the doer of deeds could have done better.
The credit belongs to the man who is actually in the arena, whose face is marred by dust and sweat and blood, who strives valiantly,
who errs and comes up short again and again, because there is no effort without error or shortcoming,
but who knows the great enthusiasms, the great devotions,
who spends himself for a worthy cause;
who, at the best, knows, in the end, the triumph of high achievement, and who, at the worst, if he fails, at least he fails while daring greatly,
so that his place shall never be with those cold and timid souls who knew neither victory nor defeat."

"Citizenship in a Republic,"Speech at the Sorbonne, Paris, April 23, 1910

ABSA Home Loan Policy - Foreigners

Temporary Residents with Work Permits:

Now up to 100% for salaried people and maximum of 80% for self employed people.
Based on supporting documents to assess the financial stability, creditworthiness and repayment ability of the applicant.
Fully completed application form/Electronic application form
Copy of passport
Offer to purchase / sale agreement
Proof of income

SALARIED EMPLOYEES
Work permit
Employment contract dedicating employer name, income, contract term, and conditions.
Pay slip or 3 months bank statements reflecting the net salary deposits.

SELF EMPLOYED APPLICANTS
* Lending to self-employed individuals will be limited to a maximum of 80% loan to value (LTV) and lower, depending on the quality of the financial
statements (e.g. audited / not audited / only financial records etc.
* Work permit / business permit
Financial statements of the entity; and
Management accounts if latest financial statements are older than 6 months; and
3 months bank statements of both the applicant’s business and personal bank account to verify the declared turnover and salary and
Proof of registration with their local SARS branch office in order to obtain an
Income tax reference number

If property to be leased
Copy of lease agreement
In the absence of a lease agreement, affordability and repayment ability will be calculated on the income of the applicant and the potential rental income will not be taken into account.

WORK PERMIT REQUIREMENTS

The employer stipulated in the work permit must correspond with the current employer as per the employment contract.

All contract workers temporarily residing in the Republic will be required to sign the declaration regarding foreign assets in terms of Exchange Control Ruling Section B(8)(E) as well as the following acknowledgement:
\
Exchange Control Policy stipulate unconditionally, that the loan amount of your home loan MUST be reduced to an amount equal to the funds invested in the property in South Africa before permanently departing South Africa.

This means that, before departing, you are required to:
reduce the outstanding amount owing on your Home Loan to an amount
not exceeding 50% of the original purchase price as well as 50% of any additional advances granted; or
Consider selling the property if you are unable to comply with Exchange Control Rulings and Regulations.
You are required to sign the attached declaration and undertaking as confirmation that you understand the above terms and conditions and that you will comply with these prior to permanently departing South Africa.

S.A. RESIDENTS TEMPORARILY ABROAD
Up to 110% (with certain criteria )
Supporting documents required to assess the financial stability, creditworthiness and repayment ability of the applicant:
Fully completed Application form / Electronic application form
Copy of Identity Document
Offer to purchase / sale agreement
Proof of income
* Salaried applicants
* Employment contract indicating employer name, income, contract
term and conditions; and
* Pay slip; or 3 months bank statements reflecting the net salary
deposits.

Self employed applicants:
* Financial statements of the entity (International GAAP standards
acceptable); and
* Management accounts if latest financial statements are older than
6 months; and
* 3 months bank statement of both the applicant’s business and
personal bank account to verify the declared turnover and the salary;
and,
* Proof of registration with their local SARS branch office in order to
obtain an income tax reference number.

If property to be leased
Copy of lease agreement.
In the absence of a lease agreement affordability and repayment ability will be
Placed on the applicant.

Loan to Value

Normal lending criteria apply and loans up to 110% loan to value may
Be approved.
Salaried applicants: If unable to provide employee contract – lending will be limited to 90% loan to value.
Self employed applicants: If unable to provide all documents as stipulated above, lending will be limited to 90% loan to value.

Repayment to income and affordability:
The maximum monthly repayment ability of the applicant will be tested by the following:

Repayment to income;
The applicants’ gross income in foreign currency, prior to any deductions, must be converted to Rand.
The maximum repayment amount may not exceed the net disposable amount.
Affordability:
When analysing the applicants monthly income and expenses, the applicants’ foreign cost of living as well as the local expenses (if any) must be taken into account. Affordability will be the overriding factor in determining the maximum allow able monthly repayment amount.

The mortgage lending limit determined by application scoring.

Consideration will be given to the following:

Employment sector
Term of contract
Expected timeframe abroad
Intention of the applicant to return to the Republic
Property type and demand.

IMMIGRANTS (PERMANENT RESIDENTS)
Up to 110%(subject to conditions)

Once permanent residence status has been obtained, the immigrant has all the rights, responsibilities and obligations of a South African citizen.

The Permanent Residence / Immigration Certificate must first be obtained.

Supporting documents required to assess the financial stability, creditworthiness and repayment ability of the applicant:
Fully completed Application form ? Electronic application form
Copy of Identity Document and Permanent Residence / Immigration Certificate; or
Copy of Passport, endorsed with Permanent Residence Status and the Permanent Residence / Immigration Certificate.
Offer to purchase / sale agreement
Proof of income (as required for South African Residents)

In order to comply with Regulation C 2(F) of the Exchange Control Rulings and Regulations, all Immigrant applicants are to complete and sign a Declaration regarding their foreign assets at their bank or Authorised dealer. A certified copy of this declaration must be submitted prior to registration of the Mortgage Bond.

NON-RESIDENTS
Maximum of 50% of the purchase price, on new or existing unbonded properties and any improvements / or on switches.

Definition: A non-resident is a person (i.e. a natural person or legal entity) whose normal place of residence; domicile or registration is outside the Common Monetary Area.

Section F(C)(iii): The facilities accorded will not cause the borrower to exceed 100 per cent of the Rand value of funds introduced from abroad and invested locally.

BUY A PROPERTY:
The loan amount may not exceed 50% of the purchase price of the property. The borrower must pay the balance of the purchase price with funds introduced from abroad.

Notwithstanding that the transaction falls within the constraints of the Exchange Control Rulings, approval for the transaction must be obtained.

RAISE FUNDS AGAINST AN UNB0NDED PROPERTY ALREADY REGISTERED IN HIS/HER NAME
The loan amount may not exceed 50% of the purchase price of the property, irrespective when the property was purchased.

What's he like?

"As I left her office I began to mull over our conversation. I started calculating when the last time was that I had a real love interest in my life. To my amazement, I realized it had been about seven years! Why, I hadn't even noticed the time racing by. Much had happened since that last failed romance. I had turned my attentions toward another Man. This man is truly a Renaissance Man. He does something of everything and does it all well. His speciality is law, but he also has a miraculous touch in the field of medicine. He is quite an artist, creating colours and sounds that cannot be duplicated. He is also an incredible therapist. After a session with him, the broken hearted are made whole, and the bound are set free.

What's he like? Well, he comes from a good family - royalty, in fact. He is so handsome, he's the fairest of ten thousand. Faithful? He has promised to never leave me nor forsake me. He's always available, no matter what time of day or night I call. I'm always his first priority. Romantic? He has written me the longest love letter in history - hundreds of pages. And the man has deep pockets, okay? The cattle on a thousand hills belong to him and he is willing to share all that he has with me. He promises to supply all of my needs according to the abundance of his riches.

I am so proud to belong to this Man because of his reputation. If I stood in the middle of any crowd and said his first name, every one would know who he was. And he's not afraid of commitment. He's gone to prepare a place for me and make ready a banquet where he will introduce me to his father, who is a very important man. And yet with all of this going on, he is a perfect gentleman: he stands at the door and knocks. He never forces entry into my home. He patiently waits to be invited in. But the thing I love about him most is his generosity. He is so generous, he even gave his life for me.

What is his name? Wonderful, Counselor, Mighty God, Everlasting Father, the Prince of Peace, Jehovah Jireh, Jehovah Shalom, Jehovah Nissi, Jehovah Rapha, El Shaddai .. oh, so many names. According to my heart and my need, I call him, but most of the time I simply call him Jesus. He is my everything, and I am totally his.

And so it is with a full heart that I expect to be found by a natural man, because to be caught up in a love affair with Jesus is to have nothing lacking in my world. For years I cringed when people told me that Jesus would be my husband. I wanted a physical touch. Little did I know that his touch went so much deeper. Truly he is able to satisfy completely and profoundly."

From "If men are like buses" by MM Hammond.

Market abuzz with Woolies-ABSA talk

MARKET speculation has it that Absa is in talks with retailer Woolworths with a view to buying up its financial services division.

But Absa said yesterday that though it had been in talks with many retailers in the past year, it had not concluded any deals.

The food and clothing retailer said on Friday it was in negotiations that could affect its share price, an announcement that sent its stock up to close almost 9% higher. Talk has been that Woolworths is either being bought out, or is selling off its financial services business.
Absa was believed to have lodged an application with the Reserve Bank to purchase a debtors’ book from one of the retailers, but this could not be confirmed.

Syd Vianello, an analyst with Nedcor Securities, said Woolworths could be looking into a joint venture with one of the big four banks, but it was “too early to say”.
He said Absa was the most likely contender as it was keen to get into consumer finance, which the bank saw as a big growth area.

Vianello said the bank had previously tried to enter this sector, but 14 months of talks with JD Group had not resulted in a deal.

Patrick Wadula, Absa’s head of media relations, said the company had been in talks with a number of retailers over the past year to seek synergies in the retail environment. He said nothing had been concluded and the bank was “still shopping around”.
Woolworths said it had “nothing further to add” to Friday’s cautionary.

In August, Woolworths said it had experienced a “tougher collections environment” in the year to June. Financial director Norman Thomson said profitability in the financial services division had “gone backwards”.

Warwick Lucas, an analyst with Imara SP Reid, said Woolworths was a cheap share and presented a good opportunity at an attractive price as the sector continued to weaken.
He said it seemed that the market had discounted Woolworths stock because of the perceived cyclical risk in its clothing division.

Chris Gilmour, an analyst with Absa Asset Management Private Clients, said it was possible that a private equity company was looking at Woolworths as interest rates were expected to start coming off in the near future.

In addition, Woolworths was among the cheapest shares in its sector if one compared its price:earnings ratio to its peers such as Pick n Pay.

Vianello said it was unlikely that a private equity firm was looking at Woolworths as there was not as much liquidity in the market as previously.

Gilmour said another contender could be the UK retailer Marks and Spencer, which had had a relationship with Woolworths for more than 50 years.
Posted to the web on: 19 December 2007
Market abuzz with Woolies-Absa talk
Nicola Mawson

Dollar - 6. 91
Pound - 13.94
Euro - 9.96
Brent Crude - 94.84
Repo Rate - 11.0
Prime Rate - 14.5

Banks beg Mboweni to go easy on rate hikes

ON THE eve of another expected hike in interest rates today, financial heavyweights yesterday urged the Reserve Bank to make monetary policy less reactive, saying rising credit costs have spurred the pace of company failures and may lead to job cuts.

At the same time, a key business confidence index (BCI) fell to a three-and-a-half-year low last month, suggesting growth in the economy was slowing as price pressures, fanned mainly by rising global costs for food and fuel, continue to build.

The South African Chamber of Commerce and Industry (SACCI) said its BCI dropped to 95,8 last month from 96,9 in October — its lowest level since February 2004 — with eight of its 13 components having a negative effect.

“SACCI is worried that higher real financing costs are particularly detrimental to small and medium-size business, especially in a slowing economy,” it said.

Investec Securities — the stock-broking arm of SA’s fifth- biggest bank — added its voice yesterday to the chorus of concern over the effect of higher interest rates, which have climbed by 3,5 percentage points since June last year.

“We expect the MPC (monetary policy committee) to raise rates by a further 50 basis points,” Investec Securities strategist Brian Kantor said.
“What we would hope for is a full recognition of the risks to growth as part of a farsighted, rather than a reactive, monetary policy,” he said.

Changes in interest rates take one to two years to make themselves fully felt and many analysts fear that further increases in lending rates could hurt the economy without having much effect on inflation — which has breached its 3%-6% target range for seven consecutive months.
“Monetary policy is pushing on a string,” said Standard Bank group economist Goolam Ballim.
“Its contribution to containing inflation expectations will be proportionally shallower than its tax on prospective economic growth,” he said.

Figures last week showed that economic growth actually quickened to 4,7% in the third quarter of this year from 4,5% in the previous quarter , but a substantial slowdown is anticipated next year in response to subsiding consumer demand, which accounts for about 60% of the economy.
In a separate statement, Credit Guarantee Insurance Corporation warned that financial stress had boosted the pace of business failures to 12,4% so far this year and the rate was likely to double next year, leading to job cuts.

“Liquidations statistics … confirm that financial stress is seriously affecting business entities, and little respite is expected in the short term,” said the group’s chief economist, Luke Doig.
“Invariably, ailing companies are likely to start with retrenchments as a short-term solution, but as financial distress deepens, they will be forced into liquidation.
“As such, we foresee that business failures could rise 25% next year, with a real impact on the livelihoods of thousands.”

Official data show that SA’s employment rate stuck at about 25,5% in the year to March, despite faster growth in the economy.
In October, the government said it would consider a proposal by labour to make monetary policy focus on unemployment as well as inflation targeting.
But both the treasury, which sets the country’s inflation target, and the Reserve Bank, which enforces it, have since said that inflation targeting is here to stay — ruling out any near-term changes to the framework.

“SA may well have reached the point where a combination of higher prices and higher interest rates means that the economy performs below its potential,” Kantor said.
“We see no good reason for exposing the economy to such risks.”
Inflation measured by CPIX rose 7,3% in the year to October — a 4½-year peak — and is widely expected to peak above 8% in the first quarter of next year. This means the Bank may raise interest rates again at its first policy meeting next year.

SACCI said that despite tougher conditions, business had proved resilient in the past. “When sound and consistent economic policy decisions lead the way, business confidence will follow,” it said.

Business Day - 6 December 2007

Happy 2008!

Vandag ploeg Struwwelpeter met ‘n ander ou se kalwers; Hier het ‘n anonieme stukkie Internet filosofie aangekom, wat so lekker lees dat hy dat graag wil deel:

2007.
As dit van my afgehang het, het ‘n jaar vir ewig aangehou. Sonder oujaarspartytjies en nuwejaaroggends-kopseer Sonder oujaar bestekopnemes en nuwejaarsvoornemens. Jy neuk net aan.

Vat nou maar vir Januarie.’n Maand sonder identiteit. Party hou vakansie en die res sukkel om hulle werk gedoen te kry, want die spul wat tjeks moet teken lê op die strand. En dan jaag almal huistoe, terwyl pa sit en mor oor sy overdraft en ma die nuwe rolle om haar middellyf blou knyp. Die res van die maand eet almal viennas en droë krismiskoek, want die kinders se skoolklere kos ‘n plaas se geld.

Februarie. Arme, stomme Februarie , nie eens genoeg dae om ‘n ware maand te wees nie, en kry toe maar Valentynsdag by om te troos. Intussen gooi almal hulle goeie nuwejaarsvoornemens oorboord, begin weer drink,/rook/vreet en verval in diepe depressie.want die hond is weer pregnant en vrou kla sy’s moeg om almal se slaaf te wees.

Maart. Ag, foei tog. Nog vis, nog vlees. Te koud vir somersklere en te warm vir wintersklere. Jy kry ‘n vieslike verkoue en vergeet jou selfoon op die apteek se toonbank. Die rentekoers gaan op en Breggie dreig om universiteit op te skop en haarself te gaan soek on ‘n pelgrimsreis deur Indië . Graeme Smith bedank as Protea kaptein omdat hy meer tyd saam met Herschelle Gibbs wil deurbring.

Dan is dit April. Immers ‘n paar vakansiedae wat die gemoedere opkikker. Maar die Kaap is te duur, en Durban te warm. Dan maar Oudshoorn toe vir die KKNK waar jy jou beursie in die biertuin, jou geduld by die kaartjieskantoor, en jou balans by die brandewynsatalletjie verloor.

Mei. Ons spanne sit op die onderste vyf plekke in die Super 14 punteleer, en die Minister van sport sê dis goed. Die Creepy Crawly verstik aan herfsblare.

Junie is nes Julie, jy spel hom net anders. Die verwarmer brand uit, maar dit maak nie saak nie, want Eskom sny weer krag. Robert Mugabe koop die duurste huis in Clifton en George Bush verklaar oorlog teen Switserland.

Julie het nog nie die son gesien nie. Hy dra ‘n grys mus, langonderbroek en stewels wat sy voete laat stink. Dis nat in Gauteng en droog in die Kaap. Benoni se hoofstraat word herdoop Charlize Theron Boulevard , en daarin open ‘n Charlize Theron droogskoonmaker, ‘n Charlize Theron skoonheidssalon en ‘n Charlize Theron drankwinkel.

Eintlik wou Augustus nog September gewees het. Nou steel hy maar ‘n paar bloeisels en ‘n bietjie son om sy vaal gesig te kleur. Almal karring maar aan, behalwe die adjunk-president die wêreld rondrits in haar jet. Sy ontken dat sy dit as ‘n special by Shaik broers gekoop het.

September is ‘n ander woord vir sinus. Mense snuif, stik en stotter die maand deur. Patricia Lewis en Amor Vittone skryf saam ‘n boek: “Skoonheid vergaan maar silikoon bly staan.” Pa val van die leer af terwyl hy geute skoon maak en Ma sluit by Weight Watchers aan.

Oktober is miskien die mooiste, mooiste maand, maat terwyl die lente sy kleure en geure in ‘n weerbarstige streep oor die landskap trek, klim die herinnering van verspeelde dae onder jou gewete in. Die jaar is amper verby en jy’t nog boggeroll gedoen. Instede is jy luier, dikker en dommer as ‘n jaar gelede.

November begroet jou met ‘n kakofonie van voortydige krismisklanke. Na drie doppe by die office party beledig jy jou baas, lê aan by die ontvangsdame en brand ‘n gat in die duur, gehuurde tafeldoek. Op Guy Fawkes raak die hond, die huishulp en die tuinslang weg. Sussie word naar op haar matriekafskeidrok en boetie kleur sy hare pers.

Desember is die begin van die einde. Steve Hofmeyer en Jacob Zuma stig hulle eie kerk, f*k*f polisiekar stel hulle gospel CD vry en Leon Schuster se nuwe fliek “Daar’s ‘n Xhosa in my kooi” is ‘n weghol sukses. Op oukersaand gee Pappa vir Mamma ‘n bottle “you’re the fire” en mamma maak vir pappa so warm dat hy Kersdag nog vonke doodslaan.

Voorspoedige 2008. Ek kan nie wag nie!

Struwwelpeter 20 Des ’07

A Dog's Purpose (according to a 6-year old)

Hi Bloggers - enjoy this one!

Being a veterinarian, I had been called to examine a ten-year-old Irish Wolfhound named Belker. The dog's owners, Ron, his wife, Lisa, and their little boy, Shane, were all very attached to Belker, and they were hoping for a miracle.

I examined Belker and found he was dying of cancer. I told the family we couldn't do anything for Belker, and offered to perform the euthanasia procedure for the old dog in their home. As we made arrangements, Ron and Lisa told me they thought it would be good for six-year-old Shane to observe the procedure. They felt as though Shane might learn something from the experience.

The next day, I felt the familiar catch in my throat as Belker's family surrounded him. Shane seemed so calm, petting the old dog for the last time, that I wondered if he understood what was going on. Within a few minutes, Belker slipped peacefully away. The little boy seemed to accept Belker's transition without any difficulty or confusion. We sat together for a while after Belker's death, wondering aloud about the sad fact that animal lives are shorter than human lives.

Shane, who had been listening quietly, piped up, "I know why." Startled, we all turned to him. What came out of his mouth next stunned me. I'd never heard a more comforting explanation. He said, "People are born so that they can learn how to live a good life --like loving everybody all the time and being nice, right?" The six-year-old continued, "Well, dogs already know how to do that, so they don't have to stay as long."

Live simply. Love generously. Care deeply. Speak kindly.

Remember, if a dog was the teacher you would learn things like:

When loved ones come home, always run to greet them.

Never pass up the opportunity to go for a joyride.

Allow the experience of fresh air and the wind in your face to be pure ecstasy.

Take naps.

Stretch before rising.

Run and play daily.

Thrive on attention and let people touch you.

Avoid biting when a simple growl will do.

On warm days, stop to lie on your back on the grass.

On hot days, drink lots of water and lie under a shady tree.

Delight in the simple joy of a long walk.

Eat with gusto and enthusiasm. Stop when you have had enough.

Be loyal.

Never pretend to be something you're not.

When someone is having a bad day, be silent, and sit close by.

Be always grateful for each new day.

Shop for sale - rural Eastern Cape

1. Extent of Shop, Bottle Store and Store Rooms 592sqm.
(a) 2006 Mahindra 1 ton Bukkie (July 2006)
(b) 2006 Tata 407 Truck
(c) 2004 Toyota 3.0D Raised Body
(d) 2003 Toyota 2.7l Petrol
(e) 1998 Ford 1800 LWB with Canopy
(f) 1998 4Ton Dyna Truck with drop sides.
(g) 7ft closed Trailer
(h) 1 Ton Trailer with Sides
(i) 3 x 3 Walk-in Cool Room (serviced by MH Refrigeration)
(j) 3 x 2 Walk-in Deepfreeze Cold Room, fully serviced.
(k) 4 x Electronic Tills linked to POS
(l) 2 x Computerized Tills liked to POS
(m) 4 x Fridges, Various
(n) 1 x SAB Fridge
(o) 1x Coca-Cola Fridge
(p) 12 x Bullets Surveillance Camera System
(q) 1 x Infrared Surveillance Camera with Complete Back-up (1 x Computer and Printer runs this System)
(r) 1 x Computer, 2 x Printers 4 x UPS, Runs POS and Book keeping Systems.
(s) 1 x Built-in Wall Safe
(t) 1 x 1m x 1.7m Bicshoff Safe
(u) 1 x 1m x 1.5m Gun Safe (Built-in)
(v) 1 x Double Deep Fryer, Brand New
(w) 1 x Pie Walmer, Brand New
(x) 1 x Generator, Runs whole Shop & Tavern system when Escom is down and is used when we need to fix tyres in the Transkei and 1 x Pump for Pumping out Parafin
(y) 1 x Compressor with all fittings 1 x Pallet Jack and 1 x Platform Scale with a spare scale for spares
(z) 2 x M6 Block making machines
(aa) 1 x Homemade Tyre Changing Tool
1 x water cooler
1 x 500l milk cooler/stainless steel bulk tank
2. M6 Brick making Business, Produces 5000 blocks per month, could do more; I use my own staff, when we are not too busy.
3. Fully Licensed Tavern with an extent of 389sqm
(a) Fully equipped also includes the following: 2 x Electronic Tills, 2 x Built in Wall Safes, (1 under the floor),
72cm TV, Juke Box, Pool Table, Soccer Machine and DSTV, 1 x SAB Fridge and a Double Door Fridge (new compressor)
3 x 8-Seater Picnic Tabels

4. 4 x Bedroom Home, 2 x Bathrooms, 3 x Lounges, Full Kitchen with Built-in Oven and Cupboards. In extent of 550sqm, in a very good condition.

5. 2 x car Garage, 4 Flatletts, in extent of 450sqm

6. Additional Store Rooms (can be converted into 3 more Flatletts, in extent of 300sqm.

7. Additional Store rooms in extent of 300sqm.

8. Piggery, enough for 10 Pigs

9. Milking Parlor, needs attention

10. Chicken Run.

11. Fruit Orchards with Good Baring Orange Trees.

The Business is currently running as follows:

1. Trading Hours are from 8.00am – 1.00pm 2.00pm – 5.00pm
Monday to Friday
Saturdays are from 7.30am – 12.00pm

2. The Tavern Opens at 9.00am and Closes at 8.30pm week days and closes at 12.00am on weekends, Public Holidays and Pension times are longer hours, December and Easter have extended hours, open almost 24hrs a day.

3. FNB ATM in the Shop, The Pensioners draw their pensions on the 3rd of the month, the average is R680000.00. The average that goes through the ATM per month is: R160000.00

4. Escom Vending Machine for Pre-Paid Electricity, the commission from this is about R1200.00 per month.

5. 2 x 1 ton Bukkies go through to the Transkei every day with an average turnover if R4500.00 each per day, every 2-3rd day, the Dyna or Tata go through with a load of food and hardware. On Pension day the Dyna brings in between R15000.00 and R20000.00 and the Tata does between R8000.00 and R10000.00. This could be increased by sending in the Tata everyday.

6. Most of the stock is bought in from Big Daddy’s, Weirs, Paramount and SAB.

7. We sell on average 1000l of milk a week.

8. I have two other shops, one in Mgwali that turns over R30000.00 per month and is open from 7.00am – 7.00pm 7 days a week and 1 in Kuze in the Transkei, that also turns over R30000.00 per month.

9. December turnover in 2005 R871250.00 and in 2006 was R1200000.00, the average monthly turnover is R610000.00 with a GPO of 23% R137180.00. Nett is R78180.00.

10. We sell livestock over Easter June-July and December. This is not reflected in the books, as it’s hard cash.

11. Stock in Trade fluctuates between R450000.00 and R250000.00 on a normal month and in December increases to accommodate the extra volumes.

12. We have just started a Take-Away inside the Shop and done extensive Refurbishing of the entire premises. The Take-Away has turned over 22000.00 in its first month, and growing.

This covers most f the Business, you need to see the set-up

The Financials are available if required. vania@bondapply.com