PROPERTY OUTLOOK FOR 2017

PROPERTY OUTLOOK FOR 2017

upheaval across the globe including Brexit, a refugee crisis and a controversial American president elect. We’ve also lost a number of famous faces - the iconic David Bowie, Prince, our very own, Sfiso Ncwane and Thandi Klassen spring to mind. Things haven’t been that rosy in South Africa either with corruption taking centre stage alongside growing political dissatisfaction. There have however been many positives. The rand has strengthened after its dramatic drop in December last year. Key political figures, including our president, have been found wanting by the courts and forced to uphold the constitution and although the nation’s rugby team has seemingly lost its way, the national cricket side is making us all proud. Much has been written about the country’s property market and yes, while there has been a general slowdown in the market, prices are, for the best part, holding their own. The banks are still granting bonds and people are still investing in property on a grand scale. While political and economic uncertainty is likely to continue across the globe next year, it is hoped that local economic growth will be modestly stronger, which will be more supportive for the South African housing market. All eyes will be on the rating agencies and whether the country’s credit status is downgraded to junk status. Earlier this year Moody’s Investors Service rating agency affirmed the country’s status at two notches above sub-investment or junk status but gave the country a negative outlook. If the country is downgraded to junk status during the course of next year, access to finance will become more expensive and interest rates will soar. A downgrade will have a negative impact on consumers and the property market as a whole. Essentially the country’s rating impacts the cost of credit. A junk status will mean that it will cost more for the government to borrow money, which in turn will have a knock-on effect on the consumer. Financial institutions will need to hold more money in reserve, which will make it more difficult to obtain credit, and the credit that is granted will come at a higher cost. Saving will become tougher but will also become more critical in respect of deposit requirements and the ability to negotiate better rates based on less exposure for the bank. Against this backdrop, a recurring theme internationally both currently and historically is that global uncertainty makes property an attractive investment, with potentially good returns and the opportunity for

capital preservation. The bottom line is 2017 is going to be a tight year. Sellers need to align their expectations to the prevailing market conditions and buyers need to ensure that their credit records remain spotless if they intend to apply for finance.

Submitted by Graham Todd

Minutes from 26 January: Compiled by Keela van Niekerk Attendance Visitors

12 members present Phil Peckett, Janell (From New York)

Birthdays: Lina (26), Candice and Ruth (27), Biffy (28) Fellowship Announcements Alan welcomed everyone to the meeting From the President

Both DG Ian and AG Paul will be attending the meeting on 2 February. Rotary fellowship exchanges – Karen will assist with event planning Next Week the DG visits – kindly all wear name badges Tickets for Proms go on sale from 10 March (Proms: 22 and 23 April) Justin: Thank you to all those who helped with book sorting. Reminder of the hand over on 4 Feb at St Stephens Primary.

Slots

Guest Speaker

David: Potential weekend away in May to a farm house in Robertson. If you are interested kindly contact David for more information.

Justin presented Ted Talks to the club with a video from Sir Ken Robinson; https://www.ted.com/talks/ken_robinson_says_schools_kill_creativity

Swindle

Only Pam could have forgotten to write her name on the slip, as a blank piece of paper was drawn she realised how “dilly” she can be. Attendance prize of R15 went to David.

President’s Song

“Last Christmas” by George Michael

Duty Roster February 2

9

16

23

Sergeant

Van Eeden

Barnard

Cleveland

Hovstad

Wynpress Editorial

van Niekerk (K)

Van Niekerk(S)

Bayes

Barnard

Wynpress Minutes

Howard

Cleveland

Van Niekerk

Howard

Door Duty

Danckwerts

Cleveland

Dessington

Dietrich

Grace

Smith

Todd

Van Niekerk

Bayes

Loyal Toast

Gowdy

Hovstad

Howard

Lidgley

International Toast

Barnard

Bird

Danckwerts

Cleveland

Speaker Intro

Jackson

Howard

Lidgley

Murphy

Speaker Thanks

N/A

Dessington

Dietrich

Gowdy

Who, Hugh is travelling? Entering the Panama Canal from the Atlantic side there are 10 kilometres of jungle before arriving at the first of three locks which lift the ships 26 metres to an artificial lake, Gatun, which is 62 km long. There is then another lock which drops down to another 5 km lake at the end of which there are 2 further locks down to the Pacific Ocean. The canal locks operate by gravity flow of water from the lakes which, in turn, are fed by rivers. Locks are built in pairs to permit the simultaneous transit of vessels in either direction. As a safety measure, there are 2 sets of lock gates at each lock. This ensures that if there was an accident (e.g. a ship powered forward), and the first set was breached, there would be no risk of flooding lower locks. Each lock holds 52 million gallons and a sudden release would destroy all below it. It is very hot here and the water temperature is 28 C. Good for a bath if it was not for the crocs. All the best, Hugh

Dates To Diarise 2 Feb

‘Official’ visit to our club by DG Ian Pursch and also AG Paul Stohrer

3 Feb

Black Tie event for Melkbos Rotary Club, at the Italian Club

4 Feb

Library Corners at St Stephens Primay (Justin and Ruth)

9 Feb

TBA

11 Feb

Hands on Project: Childline Wynberg (Pam and Jackie)

16 Feb

TBA

23 Feb

Visit by reps from Oddemarka school and principals from Grassy Park schools Our visitors from Oddemarka will talk to us about their school, their ideals and their ongoing fundraising efforts. Principals from our Grassy Park schools will also be visiting us. In addition, expect a very special visitor to join us at this meeting.

Wynberg Rotary meet every Thursday, 6 for 6.30pm, The Palms House. For more information about our club, like us on Facebook or visit our website; Wynbergrotary.org.za