DON'T FALL VICTIM OF TENANT SCAMS

Cape Town - For many consumers, rent is their biggest monthly expense. So it's hardly surprising that scam artists are out to target landlords through identity theft in an effort to avoid paying their dues.
This particular type of fraud is quite common – and what is most concerning is how easy it is to become a victim.
“We’ve seen a definite rise in tenants using identity theft to scam their landlords,” says Michelle Dickens, managing director of registered credit bureau TPN.
She explains that this is most often accomplished either through the manipulation of ID documentation or through the theft of a family member’s identity.
“One of the recent incidents we encountered involved a tenant who signed a lease with the landlord and proceeded to hand over a false proof of payment. Not knowing that the payment was false, the landlord handed over the keys.
"It was several days before they realised they had not actually been paid and issued a letter of demand. Initially, the letter of demand could not be processed because they had been given the wrong ID number. The landlord, with the help of TPN, tracked down the correct ID number and issued the letter of demand,” Dickens relates.
By the time the landlords managed to evict the tenant, they had sustained the loss of eight months’ rent as well as an outstanding electricity bill. Not to mention the fact that the tenant was vindictive, vandalising property on departure.
Dickens urges landlords to protect themselves from this type of rent scam by being thorough in their administrative processes.
“Never accept a photocopy of an identity document as valid ID, make sure that you see a copy of the original and that the person in front of you is the same person photographed in the document. Also remain strict about running credit checks on potential tenants,” she advises.
In cases where landlords perceive red flags, credit bureaus such as TPN are able to assist with further background research.
Other fraud tactics that landlords should be aware of include tenants conning other individuals without negative credit histories into co-signing a lease agreement with them so that their own credit history will be overlooked, as well as tenants stealing the identities of family members or altering a number on their ID document.
“The alteration of isolated numbers such as date of birth should be relatively easy to spot, as naturally the ID number will no longer match. In cases such as these, typing the ID number into the credit bureau will quickly provide evidence that something is amiss,” informs Dickens.
With incidents of fraud and identity theft on the increase, landlords simply cannot afford to be caught unawares.
Maintaining vigilance during tenant screening and the signing of lease agreements is vital if they are to avoid falling victim to rent scams.

Law to bar foreign ownership of SA farms

 

Feb 12 2013 22:29 Sapa

 

"All people who are foreign nationals will not own land, but will lease land on a long-term basis," said Land Reform Minister Gugile Nkwinti. (Picture: Beeld)

Paarl - Foreign nationals will no longer be able to own land in South Africa once government’s land policy is finalised and passed into law, Land Reform Minister Gugile Nkwinti said on Tuesday.

"All people who are foreign nationals will not own land, but will lease land on a long-term basis," he said.

Nkwinti was responding to a question during a "dialogue" with farm workers in Paarl.

The question had to do with foreign ownership of farms.

The minister said government had completed an audit of state-owned land, but was still busy with its audit of public and private land.

"Privately-owned land includes land which is owned by foreigners. We are busy auditing all of that land," he said.

When the audits are complete and government's policy is promulgated into law then "people who are foreign nationals will not own land, but will lease land on a long-term basis", said Nkwinti.

Nkwinti said the matter was being attended to by government.

Speaking earlier, Trade and Industry Minister Rob Davies said the recently-announced R105 a day wage for farm workers was a minimum wage, and did not mean farmers could not pay more.

He said some farms involved in export production could afford to pay more than this.

Davies described agricultural labour as "an unorganised sector". "You are not organised in unions," he told around 200 farm workers who gathered at the venue for the event.

"If you get a sufficient number of people enrolled in a trade union, you have the right to invoke provisions of the Labour Relations Act," he said.

Davies noted that many of the people he was addressing wore red Fawu or white Bawusa T-shirts. He added: "Now go and negotiate, and get yourself a better wage!"

He said at some rural Western Cape clinics the biggest illness being treated was not HIV/Aids, but malnutrition.

Agriculture Minister Tina Joemat-Pettersson said cheap labour was now a thing of the past.

"Cheap labour is no longer going to be tolerated," she said.

Earlier on Tuesday, a similar dialogue was held with farmers and commercial farming organisations.

House price growth still low - Absa

Jul 28 2011 08:29

I-Net Bridge

Johannesburg - Growth in nominal house prices remained low, or was in negative territory in some segments of the market in the second quarter of 2011, according to Absa's calculations.
In some instances prices were rising steadily on a quarterly and annual basis, the bank said in its latest housing review.
"With consumer price inflation picking up during the second quarter, some real house price declines occurred on a quarterly as well as a year-on-year basis in the past quarter.
"House price trends varied at a geographical level in the country's provinces, metropolitan areas and major coastal regions. Price growth was evident on an annual as well as a quarterly basis in some regions in the second quarter of 2011.
"However, nominal price declines were recorded in a number of regions, while rising inflation caused prices to remain under pressure in real terms in the second quarter," Absa said.
It noted that the affordability of housing had improved further in the first quarter of 2011, impacted by low house price growth, slightly lower interest rates and rising household disposable income in the quarter. This is according to the latest trends in the ratios of house prices and mortgage repayments to household disposable income, it pointed out.
"Based on house price trends in the first half of 2011, and prospects for the economy and household finances, nominal house price growth of between 1% and 2% is forecast for 2011, rising to about 4% in 2012," the bank forecast.
"In consideration of the outlook for nominal price growth and the projection of consumer price inflation averaging 5% this year and 6% next year, house prices are set to decline in real terms in both 2011 and 2012," it added.

Banks' Hesitancy Pulling Down House Prices

*This article was first published by Rode & Associates Property Consultants

After peaking in the first half of 2010, the yearly growth in the value of new mortgage loans granted for residential property has been heading strikingly south. In fact, the deceleration in growth has been so sharp that in March 2011 the value of new loans granted was actually lower than what it was a year earlier. Naturally, contractions in mortgage loans granted, act as a restraining factor on price movements. This is illustrated by the graph, which depicts a robust correlation between the growth in house prices and the growth in the value of new mortgage loans granted.

The residential mortgage and house markets can at least take heart from the solid growth (+8%) in nominal household disposable income recorded in 2011q1. What’s more, the trend for hikes in wages and salaries to exceed inflation by a wide margin seems to be neverending — never mind the eventual value-destroying consequences. For now, however, financiers will continue to be constrained by the still frustratingly high ratios of debt to disposable income, which have not come down by much since the peak of the boom. Naturally, this forms an important brake on the granting of mortgage bonds. In addition, the looming interest rate hikes in the wake of rising inflation are not going to improve affordability. Add to this the litany of sharp increases in utility charges, toll roads, rates and taxes on property, and the introduction of National Health Insurance.

And then we haven’t even considered the problems that the fiscus will face in years to come.

Thus, we stick to our forecast that real house prices will keep declining for another few years.

LOCATION AND PRICE MOST IMPORTANT TO SA HOME BUYERS

04 May 2010

PropertyGenie poll reveals.

Nearly 80% of respondents to a new PropertyGenie poll hosted on behalf of ooba - South Africa's leading bond originator - cited location and price as the most important factors to them when buying a home.
44% of respondents put location of the property at the top of their list of deciding factors, while 34% chose price. Views were most important to 10% of respondents, while proximity to work / school received 7% of the votes. Parking received 3%, while 2% said the fact that a property was newly refurbished was the key factor in their purchasing decision.
According to Craig Deats at ooba, the old adage of location, location, location still rings true for many South African homebuyers.
"While it is no secret that location plays a crucial role in determining the value of a property, many people still choose to ignore this fact, which can be extremely costly when buying primarily for investment purposes."
He adds that it is also important to get some idea of what the area you are looking to buy in will look like 10 years down the line. "The demographics of an area can change relatively quickly. What could be classed as a vibey student area today could be on its way to becoming either a chic and trendy neighourhood or an urban slum. Doing some research into the recent and planned infrastructure and building projects in the area as well as the general upkeep on the existing houses may help you in this regard."
Deats says that not too much emphasis should be placed on the fact that only 34% of respondents ranked price as the most important factor. "Price is almost always a crucial element in any purchasing decision, especially in big ticket items such as property. In addition, most of the respondents who chose location as the most important factor have already factored in the price ranges of property in the various areas they are considering living in.
"Buying a home is a long term investment and is often likely to be one of the biggest purchases that most people make in their life, so it is important that buyers look at all the factors involved when making this decision," says Deats.

GOOGLE TO HELP SA HOUSE HUNTERS

Apr 16 2010 16:38
Leani Wessels
Johannesburg - House hunters tired of spending Sundays in the car will soon be able to view homes, and their surrounds, from the comfort of the couch.
Google Street View, which will be available in South Africa before the World Cup kick-off, will offer users a 360 degree street level view of all major cities in the country.
"Real estate agencies in Australia are using the technology successfully to enhance their clients' house-hunting experiences," said Re/Max CEO Adrian Goslett.
"Each year an increased number of South Africans are searching online for property, so this is a natural progression."
According to Goslett, Street View will allow potential buyers to check out amenities such as open spaces, shopping areas and parking near or in the suburbs they are interested in.
Street View cars were seen since September last year, collecting data that will be used to compile a three-dimensional map of the country's streets.
Johannesburg, Pretoria, Durban, Port Elizabeth and Cape Town have been mapped since last year using millions of photographs, but the going has been slow with limited information available on street addresses and business locations.
"[Street View] will provide clients with the opportunity to narrow down the selection of homes to the point where the few that we show will actually be bought," said Herschel Jawitz, CEO of Jawitz Properties.
"It will be good for the client in reducing search time and irritation and good for the agent from a cost and efficiency point of view," said Jawitz.
According to Jawitz and Goslett, each year an increasing number of South Africans search online for property. "So this is a natural progression," said Goslett.
- Fin24.com

HOME PRICES SURPRISE EXPERTS

Jan 18 2010 12:15Joan Muller
Johannesburg - It appears that property economists have underestimated the strength of the housing recovery, with the home price dip experienced in 2009 turning out to be milder than anticipated.
Figures released on Monday by Absa Bank, South Africa's biggest mortgage lender, showed house prices fell by an average -0.2% in 2009 (+4.1% in 2008). In September 2009, Absa property analyst Jacques du Toit still expected a 3% drop in average house prices for 2009.
FNB's housing index also ended 2009 on a better-than-expected note. House prices for the year dropped -3.9% for the year overall as recorded by FNB's mortgage book, but had already returned to positive growth territory in November. FNB property strategist John Loos said he had not expected house prices to start rising again before early 2010.
FNB recorded a year-on-year price rise of 2.7% in December. Said Loos: "While [this is] nothing to be over-excited about yet, the trend points towards a significantly better 2010 for those of us involved in the residential property market."
Meanwhile, mortgage originator Ooba's house price index, also released on Monday, reflected few signs of last year's housing recession. It recorded an overall price rise of 1.8% for 2009.
Ooba bases its housing data on successful home loan applications. It therefore tends to react more speedily to market changes than banks, which capture data only once a housing sale has been registered in the deeds office.
Analysts more upbeat on growth
Ooba CEO Saul Geffen said the steady improvement in house prices in 2009 came on the back of lower interest rates filtering through to consumers, and banks relaxing their lending criteria.
The fact that the housing market appeared to be recovering at a quicker pace than previously anticipated prompted both FNB's Loos and Absa's Du Toit to upward adjustment of their house price growth forecasts for 2010.
Loos has changed his initial 5% growth forecast upwards to 8% while Du Toit now expects growth of 6% to 7% for 2010, up from 3% to 4% previously.
However, industry players cautioned that the housing recovery may well start to loose steam by year-end. Du Toit said the Reserve Bank is likely to start hiking interest rates again late in 2010 in an attempt to keep inflation under control, which will dampen housing demand.
Loos had a similar view, citing persistently high debt levels as another key reason why the housing recovery could be relatively short-lived. He said the double-digit house price growth experienced during the boom years of 2004 to 2006 is still a long way off.
"High debt levels will restrict the rate at which households can increase their borrowings for the time being," Loos said. "In fact, it could be a few years before we reach the kind of low household debt-to-income levels needed to fuel a more impressive property boom."
- Fin24.com